Letter to shareholders

                               Wednesday, 5th September 2007
Dear shareholder
You will undoubtedly be aware of perplexing and frustrating
developments  in Africo�s various and strenuous  efforts  to
affirm  its  ownership of the Kalukundi Property (Kalukundi)
in the Democratic Republic of the Congo (DRC).
These efforts have been both legal and diplomatic in nature,
and generally complex to say the least.
Our  Board,  which  consists of Chris Theodoropoulos,  David
Adamson,  Tinus Maree and John Dixon, and I have thus  taken
the  view that it is the right time to provide you, and  the
media,  with a clear summary of the facts that we intend  to
publicize  as  widely as possible in order both  to  improve
understanding of and support for Africo�s position.
Allow  me, therefore, to provide this background information
and update on the situation as follows:
  -  Until   April  of  this  year,  Africo  Resources   Ltd.
     (Africo)  had no reason whatsoever to believe  that  it
     did not hold a 75% controlling interest in Kalukundi in
     the DRC through a subsidiary H&J Swanepoel Family Trust
     s.p.r.l.,   in  partnership  with  State-owned   mining
     company   La  Generale  des  Carrieres  et  des   Mines
     (Gecamines), who hold the remaining 25%.
  
  -  Africo�s  intention was to totally fund  and  fast-track
     the  high  grade copper/cobalt Kalukundi  deposit  into
     production by 2008/2009, with initial targets of 16 400
     tonnes  copper and 3 800 tonnes cobalt a year,  off  an
     initial reserve base of 7.8 million tonnes.
  
  -  Africo  raised  C$20 million in a private  placement  in
     December  2006 just prior to its successful listing  on
     the  Toronto  Stock Exchange and steps were immediately
     taken  to  raise  the  balance of the  total  estimated
     capital  cost  of  C$210 million  to  build  the  mine.
     Anticipated profit margins and near-term cashflow  held
     out the prospect of payback within four years based  on
     long-term   metal  prices  of  US$1.25/lb  copper   and
     US$12/lb  cobalt.  It was expected that  the  new  mine
     would create more than 500 jobs (more than 80% of these
     to  be  filled by Congolese citizens), with substantial
     resources earmarked for infrastructural development and
     community investment, notably in the areas of  housing,
     health and education.
  
  -  In  April  2007,  Africo became aware  of  a  Lubumbashi
     court  decision  accepting a claim by a company  called
     Akam Mining s.p.r.l. (Akam) that it had acquired a  75%
     interest in Swanmines s.p.r.l. (Swanmines), the  entity
     that  owns  Kalukundi  for US$600  000  at  a  sale  in
     execution, of which Africo had received no notice.  The
     sale in execution followed a Lubumbashi court judgement
     obtained  against  Africo  by  a  former  employee,  Mr
     Alejandro  Berardone,  for the payment  of  damages  of
     US$3,000,400  relating to Africo�s non-renewal  of  his
     employment contract, a judgement Africo was already  in
     the  process of appealing.  Africo was given  no  prior
     notice  of  the  hearings and has in its  possession  a
     Termination of Employment Contract dated 19 July  2005,
     pursuant to which Mr Beradone agreed to accept  certain
     payments   and  other  benefits  in  full   and   final
     settlement of his contract with Africo.  A copy of this
     contract   is   available   on   the   Africo   website
     (www.africoresources.com).
  -  The  negative  effect of the Akam decision  on  Africo�s
     capital   raising  initiatives  was  felt  immediately.
     Shortly  before  the  27  April  news  release,  Africo
     announced  that  it had entered into  a  C$130  million
     financing  arrangement  with an underwriting  syndicate
     consisting of Paradigm Capital and GMP Securities.   As
     a  result, it was obliged to announce that the  parties
     to the financing arrangement had agreed to withdraw.
     While  Africo had initiated legal action  to  have  the
     Berardone  judgement set aside at the  time,  the  Akam
     decision  prompted  further  legal  steps  as  well  as
     diplomatic   initiatives.  The  former   included   the
     bringing of a motion of judicial misconduct in  respect
     of the Berardone judgement and the Akam decision in the
     Supreme  Court  in  Kinshasa. The  latter  included  an
     appeal to the Government of the DRC, through a range of
     diplomatic and ministerial offices, for assurances that
     Africo�s  concerns  would be dealt with  in  accordance
     with applicable laws.
  
  -   From  May  2007  progress was made  in  respect  of  the
     motion of judicial misconduct and Africo had some cause
     to  believe that its efforts to have both the Berardone
     judgement  and  Akam  decision  set  aside   would   be
     successful. The Supreme Court had ruled that there  was
     a  case  to answer on 20th June and heard the  case  on
     27th July. The 3 Lubumbashi judges were represented  on
     27th  July,  by  lawyers Herve Ngoy-Kalumba  Banza  and
     Roger  Masamba,  the same lawyers who have  represented
     both Berardone and Akam Mining in the Lubumbashi Court.
  
  -  On  24  July, Africo announced that it had agreed  to  a
     financing  proposal  from  the  International   Finance
     Corporation (IFC), the financing arm of the World  Bank
     in  terms of which the IFC would take a US$7.6  million
     equity position in Africo and provide debt financing of
     approximately US$40 million. In light of our situation,
     we  are currently renegotiating this financing and  the
     IFC  has agreed to extend the closing for a further  45
     days from September 5th.
  -  On  10  August,  the Supreme Court in Kinsasha,  on  the
     matter of the motion of judicial misconduct, determined
     that  it  could not examine the actions of  the  judges
     responsible  for the Berardone judgement and  the  Akam
     decision  as  these had taken the form of �orders�  and
     not �judgements�. The legality of this outcome needs to
     be  determined, as our DRC counsel indicated it was not
     congruent with the decisions made by the same Court  on
     20th June and 27th July.
     In  addition, Africo has appeals pending on the initial
     judgment  in  favour  of  Mr.  Berardone  and  on   the
     purported  share sale of the shares in Swanmines  sprl,
     which  are  scheduled for appearance in  late  October,
     2007.  Furthermore,  Africo�s counsel  in  the  DRC  is
     considering other potential legal recourses.
  
  
  Further,  Africo  intends  to substantially  increase  the
  level  of  its lobbying for understanding and  support  of
  its  position  amongst stakeholders both in  the  DRC  and
  internationally.
  
  Africo  is  motivated in pursing these courses  of  action
  by:
  
     - a  profound sense of grievance at what is clearly  an
       attempted  theft  of  its  asset  by  third   parties
       through   the  systematic  misuse  of  the   judicial
       system; and
     
     - a  determination to finish what it set out  to  do  �
       that  is,  ensure  the development of  the  Kalukundi
       deposit   becomes  a  reality  for  the  benefit   of
       shareholders,  the DRC Government and the  people  of
       the DRC.
     
     I  look  forward to reporting to you on behalf  of  the
     Board  on more positive developments soon, and I  thank
     you for your continued support.
     
     Yours truly,
     
     Dr Antony Harwood
     President and Chief Executive Officer
          
     
     For  further information, please visit our  website  at
     www.africoresources.com, or contact:
     
 Dr  Tony  Harwood, President and CEO, on tel: 27(11)463 0081
 Bill Cavalluzzo (Investor Relations) on tel: 1(416)265-8049
 Charmane Russell (Investor Relations) on tel: 27(11)880 3924
  
Forward-looking statements:
This news release contains certain statements that may be
deemed "forward-looking statements". All statements in this
release, other than statements of historical fact, that
address events or developments that Africo expects to occur,
are forward looking statements.
Forward looking statements are statements that are not
historical facts and are generally, but not always,
identified by the words "expects", "plans", "anticipates",
Sbelieves", "intends", "estimates", "projects", "potential"
and similar expressions, or that events or conditions
"will", "would", "may", "could" or "should" occur.  Although
Africo believes the expectations expressed in such forward-
looking statements are based on reasonable assumptions, such
statements are not guarantees of future performance and
actual results may differ materially from those in forward
looking statements. Factors that could cause the actual
results to differ materially from those in forward-looking
statements include market prices, exploitation and
exploration success, continued availability of capital and
financing and general economic, market or business
conditions. Investors are cautioned that any such statements
are not guarantees of future performance and actual results
or developments may differ materially from those projected
in the forward-looking statements. Forward looking
statements are based on the beliefs, estimates and opinions
of Africo�s management on the date the statements are made.
Africo undertakes no obligation to update these forward-
looking statements in the event that management�s beliefs,
estimates or opinions, or other factors, should change.
The Toronto Stock Exchange has not reviewed and does not
accept responsibility for the adequacy or accuracy of this
release.