Fortbridge Media Release

Baobab Resources [AIM:BAO] - FIRST DRILL RESULTS FROM TENGE

Baobab Resources Plc (�Baobab� or the �Company�) is an iron ore, base and precious metals explorer with a portfolio of exploration projects in Mozambique. The Company is pleased to present an update of activities at the Massamba Group iron / vanadium / titanium project. IFC hold a 15% participatory interest in the project with Baobab owning the remaining 85%. A recent scoping level viability analysis of the project assessed a vertically integrated mining, beneficiation and pig iron smelting operation and reported before tax net present value at a 10% discount (NPV10) and internal rate of return (IRR) figures of US$1.4 billion and 34% respectively (as announced in the RNS dated 29 November 2011).

HIGHLIGHTS


- Resource drilling has defined broad packages of mineralisation at Tenge. Analytical results from the first 3 drill holes have been returned with a further 23 drill holes currently undergoing analysis.

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Significant drill intercepts include 115m at a head grade of 36% Fe and a DTR concentrate grade of 63% Fe, 0.9% V2O5 and 6.6% TiO2 at a mass recovery of 37% from 19.5m in TGDH0002A.

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Coffey Mining is on schedule to complete the Tenge resource estimate by March 2012 which has the potential to add substantially to the current 324Mt global inventory.

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Pre-Feasibility Study (PFS) management team finalised; contracts signed with international consulting groups Coffey Mining and SNCLavalin as well as respected industry specialist Dr. John Clout.

Commenting today, Ben James, Baobab�s Managing Director, said:

�The first round of drill results from Tenge are encouraging and show a strong
correlation with the grade characteristics of the Ruoni North and Ruoni South resource blocks. The Tenge resource, due out in March, is expected to push the global resource base well beyond Baobab�s targeted 300Mt which will allow scope for ramping up production.

�The Company has also drawn together an excellent team of industry specialists to complete the PFS in good order and looks forward to regularly updating investors on progress.�

Please see attached for details.

For further Information, please contact:

Ben James
Managing Director, Baobab Resources
Tel: +61 8 9430 7151

Jeremy Dowler
Chairman, Baobab Resources
Tel: +44 1372 450529

Media/investors:

Fortbridge
Matt Beale
Tel: +44 7966 389 196