Graphite Concentrate Upgraded to Purity of up t...

Graphite Concentrate Upgraded to Purity of up to 99.99% Graphitic Carbon

Armadale Capital Plc

Armadale Capital Plc (‘Armadale’ or ‘the Company’)

Graphite Concentrate Upgraded to Purity of up to 99.99% Graphitic Carbon

Armadale Capital Plc / Index: AIM / Epic: ACP / Sector: Investment Company

Armadale, the AIM quoted investment company focused on natural resource projects in Africa, is pleased to announce that test work results show that purity of up to 99.99% graphitic carbon can be achieved from graphite concentrates produced from the Mahenge Liandu Project in Tanzania (‘the Project’).

Highlights:

• Test work conducted in Germany has returned excellent results of up to 99.99% graphitic carbon for flake size between from 300µm to 500µm
• Purity above 99.95% can be achieved for size fractions between 106 µm and 500µm, which are typically used for the production of spherical graphite
• Results underpin the Project’s ability to produce high quality graphite concentrates, which should be suitable for a number of commercial applications
• Upcoming 2,500m drilling programme due to commence imminently to advance a substantial portion of the 40.9Mt at 9.41% Total Graphitic Content (‘TGC’) resource to the Indicated category in preparation for undertaking a Prefeasibility Study at Mahenge Liandu later in 2017
• Further metallurgical test work planned, including the production of bulk samples to be used for marketing the graphite concentrates to potential offtake partners

Nick Johansen, Director of Armadale said, “With purity results of up to 99.99% graphitic carbon achieved, together with the recently announced expandability results, test work continues to strengthen our belief that we are able to produce commercially valuable spherical graphite at Mahenge Liandu. Our focus is now on increasing our resource confidence, with drilling due to commence imminently. We believe the results from this drill programme will not only upgrade a significant portion of our resource classification but also support marketing efforts as we look to identify potential offtake partners. We look forward to keeping shareholders updated with these exciting developments.”

Further Information

Initial test work using chemical treatment conducted on a 10g sample of graphite concentrates of each of the size fractions from the Mahenge Liandu Project. The results show excellent purity, especially in the medium size fractions typically used in the production of spherical graphite, which are used in the production of lithium-Ion batteries. The results for all size fractions are shown in Table 1 below for each size fraction.

Table 1 Results of Chemical Purification of Graphite Concentrates

Flake Size (µm)	Â	Purity
> 500 µm		99.93
> 300 µm		99.99
> 180 µm		99.98
> 106 µm		99.96
> 75 µm		99.94
< 75 µm		99.65

Conclusion

The ongoing test work continues to indicate that the Mahenge Liandu Project is capable of producing high quality graphite concentrates suitable for a range of commercial applications. Further metallurgical test work is planned as part of the upcoming drilling programme, including the production of bulk samples to be used for marketing of the graphite concentrates to potential offtake partners.

The information communicated in this announcement contains inside information for the purposes of Article 7 of the Market Abuse Regulation (EU) No. 596/2014.

**ENDS**

For further information please visit www.armadalecapitalplc.com or contact:

Enquiries:	Â
Armadale Capital Plc Nick Johansen		[phone]
Nomad and broker: finnCap Ltd Christopher Raggett / Simon Hicks		[phone]
Joint Broker: Beaufort Securities Limited Jon Belliss		[phone]
Press Relations: St Brides Partners Ltd Susie Geliher / Charlotte Page		[phone]

Notes

Armadale Capital Plc is focused on investing in and developing a portfolio of investments, targeting the natural resources and/or infrastructure sectors in Africa. The Company, led by a team with operational experience and a strong track record in Africa, has a strategy of identifying high growth businesses where it can take an active role in their advancement.

The Company owns the Mahenge Liandu graphite project in south-east Tanzania, which is now its main focus. The Project is located in a highly prospective region with a high-grade JORC compliant inferred mineral resource estimate of 40.9Mt @ 9.41% TGC. At least 32Mt of this resource has an average grade of 10.47% TGC, one of the largest high-grade resources in Tanzania, and work to date has demonstrated Mahenge Liandu’s potential as a commercially viable deposit with significant tonnage, high-grade coarse flake and near surface mineralisation (implying a low strip ratio) contained within one contiguous ore body.

Other assets Armadale has an interest in include the Mpokoto Gold project in the Democratic Republic of Congo and a portfolio of quoted investments.

View source version on businesswire.com: http://www.businesswire.com/news/home/20170502005960/en/