Simba Mines, Inc. Announces Proposed Merger

Simba Mines, Inc. (PINKSHEETS: SBAM) is pleased to announce that on August 25, 2006 it entered into a Letter of Intent with Australian Forest Industries Inc. (AUFI) listed on the OTCBB under trading symbol (OTCBB: AUFI).

Under the Letter of Intent AUFI proposes to acquire from Simba all the issued share capital of Simbajamba Mines Ltd, Simba's wholly owned subsidiary ("Simbajamba") for US$41,547,000.

Also under the Letter of Intent AUFI proposes to acquire from Bongani International Group ("BIG") all the issued capital of Rockbury Properties Limited.

Upon conclusion of these two acquisitions AUFI will control 80% of the Cachoeiras de Binga and 70% of each of the Benguela and Zenza copper concessions in Angola.

Drilling at Cachoeiras has outlined a measured resource of 7.3 million tonnes of copper ore at 2.25% cu and a 51 million tones inferred resource at a similar grade. An 80% interest in 7.3 million tonnes of copper ore at 2.25% equates to 289.7 million lbs of copper.

AUFI is also negotiating to acquire from BIG two valuable copper/cobalt concessions in the DRC. AUFI will be disposing of its timber interests and will focus on bringing its copper projects into production.

Upon closing of the proposed transaction between AUFI and Simba, AUFI proposes to allot to Simba 5,193,375 consolidated common shares of AUFI with a book value of US$8 per share.

Forward-Looking Statements

This news 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.

Contact: SIMBA MINES INC. Clinton Joseph 613 226 5211 http://www.simbamining.com