Equatorial Resources Limited

Equatorial Resources Limited (ASX:EQX) is pleased to advise that it has settled the acquisition of 19.9% of African Iron Limited (ASX:AKI) through the purchase of 95.4 million ordinary shares in African Iron.

Equatorial Resources Limited (ASX:EQX) is pleased to announce that Wallis Drilling Pty Ltd have commenced drilling at the Makengui Prospect within the Mayoko-Moussondji Iron Project.

Equatorial Resources Limited (ASX:EQX) is pleased to advise that it has acquired 19.9% of the ordinary share capital of African Iron Limited (ASX:AKI) through the purchase of 95.4 million ordinary AKI shares.

Equatorial Resources Limited (ASX:EQX) is pleased to advise that it has signed a drilling contract with Wallis Drilling Pty Ltd for a minimum of 28,000m of reverse circulation and diamond core drilling at the Company's 100%-owned Mayoko-Moussondji Iron Project in the Republic of Congo. The contract with Wallis Drilling will run in parallel to the existing drilling program already underway with Partners Drilling International and is intended to rapidly advance the company's exploration activities.

Equatorial Resources Limited (ASX:EQX) is pleased to advise that drilling has commenced at the Company's 100% owned Mayoko-Moussondji Iron Project in the Republic of Congo. The Company has contracted Partners Drilling International from South Africa to perform shallow Reverse Circulation and Diamond drilling to focus on weathered itabirite zones with the potential to host "hematite cap" mineralisation that is expected to overlay a large magnetite rich itabirite ore body.

Equatorial Resources Limited (ASX:EQX) is pleased to announce that 3D and 2D modelling of the detailed high resolution aeromagnetic data collected over the Company's 100% owned Badondo Iron Project ("Badondo") completed by independent consultants Resource Potentials Pty Ltd has estimated a global exploration target of between 1.3 and 2.2 billion tonnes of iron mineralisation. Of this, 200 to 300 million tonnes represents potentially enriched hematite cap mineralisation at an estimated grade of 40% to 65% Fe and 1.1 to 1.8 billion tonnes represents primary itabirite mineralisation at an expected grade of 30% to 45% Fe.

Equatorial Resources Limited (ASX:EQX) advise it has signed a Memorandum of Understanding ("Protocole d'Accord") with the Port Authority of Pointe-Noire ("PAPN") in which Equatorial and the PAPN have undertaken to cooperate in investigating and implementing the infrastructure required to export iron ore from the Company's 100% owned Mayoko-Moussondji Iron Project.

Equatorial Resources Limited (ASX:EQX) advise that preliminary interpretation of data from the airborne geophysical survey completed during December 2010 at its Badondo Iron Project has identified magnetic anomalies with a combined strike length in excess of 22km. The identified anomalies have the potential to host significant quantities of hematite and itabirite hosted iron mineralisation.

Equatorial Resources Limited (ASX:EQX) is pleased to advise that a comprehensive airborne magnetic and radiometric survey has commenced over the Company's Badondo Iron Project located in the north of the Republic of Congo.

Equatorial Resources Limited (ASX:EQX) are pleased to advise that the Company will make a placement to institutional investors of up to 14.2 million shares at $1.80 each to raise A$25.6 million before costs.