iron ore to supply local steel industry

Alliance with AICO Ado Ibrahim & Co Ltd
In addition to the proposed acquisition, Black Fire Energy has also secured an alliance
with AICO Ado Ibrahim & Co Ltd, whereby Black Fire Energy has first rights of refusal
over additional resource opportunities within Kogi State, until 30 June 2010, renewable
for an additional 3 years.
Black Fire Energy considers this alliance will provide considerable opportunities to the
Company as Nigeria opens its vast mineral potential to foreign investment.
In addition to Ajaokuta, Kogi State is also the location of the Itakpe iron ore processing
facility near Okene. This facility was originally designed and constructed with the
capacity to beneficiate up to 3Mtpa into concentrate for supply to Ajaokuta as 10% of its
feedstock, using the existing rail facility.
Similar to Ajaokuta, Itakpe is also under the direct control of the Nigerian Federal
Government as part of the above strategy to seek alternatives to fast track production.
This plant is currently on care and maintenance but it is understood that production
capacity of up to 1Mtpa was being achieved at Itakpe by its previous operators, Global
Steel Holdings Ltd.

The Ajaokuta Steel Company went from zero production when the Mittal group first became involved four years ago to producing one million tons of steel per year now.
Mittal claims the plant was due to be upgraded to produce five million tons a year.