SOURCE: Simba Mines Inc.

February 13, 2007 08:30 ET

Simba Mines Announces Iron Ore Acquisition

BAY CITY, MI -- (MARKET WIRE) -- February 13, 2007 -- Simba Mines Inc (PINKSHEETS: SBAM) announces that is has acquired an option over 29.9% of Standard Link Limited which owns the Hwedza Mountains iron ore deposits in Zimbabwe. The Hwedza Mountains were for a long time the centre of an iron smelting industry carried on by the Njanja and Mbire tribes. The barrier to development in the past has been the lack of coherent ownership of the claims. This problem has been overcome by the present incumbents and title to the whole area is now held by Standard Link Limited.

Past sampling and beneficiation by Heavy Medium Separation (HMS) has yielded the following analyses:

Sample number        JCI HMS Analysis
Degrees       Fe%     SiO2%   Al2O3%  P%
53122         68.7    0.98    0.75    0.040
53123         63.7    1.85    1.07    0.040
53124         64.4    6.37    0.15    0.020
53262         62.4    4.60    0.30    0.045
53263         63.6    4.10    0.10    0.048
53264         69.1    0.50    0.10    0.047
53265         66.4    4.00    0.20    0.042
53266         65.9    2.00    0.30    0.045
53267         62.4    4.50    0.10    0.055
The results indicate that this ore has the potential to be of very high quality requiring minimum processing.

The iron ore deposits are located approximately 140 kilometres south east of the capital city Harare and are about 75 kilometres by sealed road from the Harare-Mutare railway line, which runs along the Harare-Mutare road. The general area is underlain by older mafic and leucocratic gneisses containing "islands" of greenstone, and capped by eroded remnants of granite. The main greenstone "islands" are the Hwedze, Mount St Mary's and Makanda greenstone belts, of which the Hwedza greenstone belt is by far the largest.

The Hwedza Mountains form the south-western half of the Hwedza greenstone belt that extends 21 kilometres along a north-easterly strike parallel to the regional foliation of the surrounding granite rocks and attains a maximum width of 5 kilometres. The ironstones range in width from 5 to 350 metres, with most that are more than 60 metres wide having been tectonically thickened.

The term of the option granted to Simba is one year and the consideration for the option grant is 170 million shares of restricted Simba common stock. The deemed value of this consideration for the purpose of the option is $6,800,000 to be offset against the acquisition price which will be established by independent valuation. If Simba decides not to exercise its option, it will still be entitled to an interest in Standard Link Limited equal to the percentage that $6,800,000 represents to the independent valuation, up to a maximum of 29.9%. On February 4, 2007 shareholders of Simba representing more than 53% of the issued capital of Simba have given their written consent to the transaction.

In addition to its iron ore interests, Simba still retains its copper interests. Under the agreement with Australian Forest Industries (AUFI) (which is soon to be renamed Zebra Copper Inc), Simba will receive on closing (i) a convertible promissory note of AUFI in favour of Simba in the amount of US$41,547,00 and (ii) the taking over of the outstanding loan balance between Simba and its subsidiary totaling approximately US$1,400,000. The promissory note is convertible at the option of Simba into 5,193,375 share of common stock of AUFI post-consolidation, resulting in Simba becoming the largest shareholder of AUFI. Following closing AUFI will own three projects in Angola:

(i)   80% of Cachoeiras de Binga licence area
(ii)  70% of Benguela licence area
(iii) 70% of Zenza/Dondo licence area.
Forward-Looking Statements

This new release includes comments that may be deemed forward-looking within the meaning of the safe harbor provision of the U.S. Federal Securities Laws. These include, among other things, statements about expectations of future transactions or events, revenues, sales of products and performance. Forward-looking statements are subject to risk and uncertainties that may cause the company's results to differ materially from expectations. These risks include the company's ability to complete the transactions, which remains subject to a due diligence review by both parties, obtaining any regulatory approvals, having necessary financing in time to meet contractual obligations, developing appropriate strategic alliances, raising working capital, building a functional infrastructure, and other such risks as the company may identify and discuss from time to time. Accordingly, there is no certainty that the company's plans will be achieved.

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