Exploration Update

AIM: KEFI

                                                            14 January 2013

                              KEFI Minerals Plc

                          ("KEFI" or the "Company")

                              EXPLORATION UPDATE

           CONTINUED EXPANSION OF MINERALISED ZONE AT JIBAL QUTMAN
                AND PRELIMINARY METALLURGICAL TESTWORK RESULTS

KEFI Minerals, the AIM-quoted gold and copper exploration company
with projects in the Kingdom of Saudi Arabia and Ethiopia, is pleased to
announce an exploration update from its Jibal Qutman Licence. This includes
additional reverse circulation drilling results from the continuing
exploration and infill drilling programme, and results from metallurgical
testwork. KEFI Minerals is the operator for the project under the Company's
40%-owned Gold & Minerals Joint Venture ("G&M").

HIGHLIGHTS

- On-going drill and trench results continue to expand the zone of
mineralisation on all four drilled deposits at Jibal Qutman with best RC drill
results of 17m at 2.91g/t Au (including 7m at 6.00g/t Au), 3m at 5.86g/t Au,
5m at 4.86g/t Au and 5m at 9.25g/t Au;

- Results from ongoing Metallurgical Testwork for the
Pre-Feasibility Study to test leaching characteristics of the typical higher
grade mineralisation present in the shallow zones have been received.

- Bottle roll tests conducted on the three composites samples
returned gold extractions of 94.8%, 95.6% and 96.5% at a grind of 80% passing
75 micron. Coarse bottle roll tests conducted at 12.5mm and 6.3mm returned
recoveries ranging from 71.9% to 85.2% over a five day period.

- A second batch of assays on metallurgy core samples returned 8m at 2.00g/t Au, 
4m at 1.41g/t Au, 4m at 1.16g/t Au.

Jeff Rayner, Managing Director of KEFI Minerals, commented:

"We are delighted with the continued expansion of mineralisation at
the Jibal Qutman prospect. We are working hard as we progress towards our
first mining lease application. We very much look forward to providing further
development updates from our projects in both Saudi Arabia and Ethiopia and
are excited about the year ahead."


JIBAL QUTMAN PROJECT

Exploration and Infill Drilling

Please refer to a Map of Jibal Qutman Licence http://www.kefi-minerals.com/jibal_a.html

Positive results have been returned from the ongoing exploration
and infill RC drilling campaign at Jibal Qutman, which is supporting the
current interpretation and expanding the mineralisation in the six drilled
zones: Main, South, West, 3K Hill, 4K Hill and the East zone (see Table below).

 Hole    From  To   Interval   Grades                              Zone
          m     m       m
 
JQRC182   44   53     9 m   @  2.68 g/t                            South
          79   96    17 m   @  2.91 g/t including 7m @  6.0 g/t    South
JQRC183   39   49    10 m   @  0.78 g/t                            South
          75   76     1 m   @  1.55 g/t                            South
JQRC184   9    12     3 m   @  5.86 g/t                           4KHill
JQRC185   9    14     5 m   @  1.13 g/t                            South
          78   79     1 m   @  1.58 g/t                            South
JQRC186   21   27     6 m   @  1.64 g/t                           4KHill
JQRC191   14   17     3 m   @  1.66 g/t                           4KHill
JQRC192   74   81     7 m   @  0.93 g/t                            East
JQRC194   12   15     3 m   @  3.12 g/t                            East
JQRC195   11   16     5 m   @  4.86 g/t including 3m @ 7.92 g/t    Main
JQRC198   13   18     5 m   @  9.25 g/t                            Main
JQRC199   5    11     6 m   @  2.25 g/t including 2m @ 5.65 g/t    Main
JQRC197   12   19     7 m   @  4.84 g/t                         Main infill
JQRC201   4    11     7 m   @  9.31 g/t                         Main infill
JQRC202   4    10     6 m   @  1.07 g/t                            East
JQRC205   6    12     6 m   @  0.97 g/t                         Main infill
JQRC209   8    18    10 m   @  1.30 g/t                            East
JQRC216   7    20    13 m   @  1.84 g/t                            South

Drilling in South Zone continue to provide positive results,
extending the known mineralised body 150m to the south-east, with hole JQRC182
returning 9m at 2.68g/t Au, and 17m at 2.91g/t Au (including 7m at 6.00g/t
Au), hole JQRC185 returning 5m at 1.13g/t Au and hole JQRC216 returning 13m at
1.84g/t Au at shallow depth. The mineralisation is still open to the south.

First pass drilling was completed at 4K Hill prospect to test
beneath the trench results previously announced. Drilling allow to define a
set of mineralised east dipping quartz veins, with hole JQRC191 returning 3m
at 1.7g/t Au, hole JQRC184 returning 3m at 5.86g/t Au, hole JQRC186 returning
6m at 1.64g/t Au, all of them at shallow depths. Drilling follow up continue
in the area.

Metallurgical Testwork

The trench samples sent to ALS Perth, Australia were selected to be
representative of the various grades and rock types of near surface
mineralisation for the West, Main and South Zones. Tests for the heap leach
amenability testwork included head analyses, coarse bottle leach and
preliminary percolation tests.

Highlights of the testwork include:

- Bottle roll tests conducted on the three composites tested returned gold
extractions of 94.8%, 95.6% and 96.5% at a grind of 80% passing 75 micron.

- Coarse bottle roll tests conducted at 12.5mm and 6.3mm returned recoveries
ranging from 71.9% to 85.2% over a five day period.

- Recovery trajectories indicate gold would most likely be extracted in all
composites after the five day period.

- Preliminary percolation test results indicate that no agglomeration would be
required for the upper zone mineralisation.

- The coarse bottle roll tests conducted at 12.5mm and 6.3mm returned cyanide
consumption ranging from 0.22kg/t to 0.30kg/t and lime consumption ranging
from 0.23kg/t to 0.24kg/t over the five day period in which the coarse bottle
roll tests were conducted.

A column test was initiated in the middle of December 2013 on one
of the three composites tested as part of the heap leach amenability testwork
programme.

As part of the metallurgical testwork, metallurgical diamond
drilling was completed at Jibal Qutman. A total of 17 inclined holes (all of
them dipping -60° and Azimuth N270°), were drilled for a total of 1,771m
drilled at 3K Hill, West, Main and South Zones. Full core samples were sent to
ALS Lab, Perth, Australia. A variability testwork programme to test leaching
recoveries of the different mineralisation present in the upper and lower
zones was initiated in January 2014.

             Hole   From To  Interval    Grade    Zone
                     m   m       m
 
            JQD 55   50  57  7   m   @  0.99 g/t 3KHill
                     61  67  6   m   @  0.93 g/t 3KHill
            JQD 56   48  51  3   m   @  1.27 g/t 3KHill
                     71  75  4   m   @  1.16 g/t 3KHill
            JQD 57   37  41  4   m   @  1.41 g/t  West
            JQD 60   15  23  8   m   @  2.00 g/t  West
                     43  49  6   m   @  0.91 g/t  West


Enquiries

KEFI Minerals Plc
Jeffrey Rayner                                             [phone]

Fox-Davies Capital
Simon Leathers                                             [phone]

Bishopsgate Communications
Nick Rome/Anna Michniewicz                                 [phone]



References in this announcement to exploration results and mineral
resources have been approved for release by Mr. Jeffrey Rayner. Mr Rayner is a
geologist and has more than 25 years' relevant experience in the field of
activity concerned. He is a Member of the Australasian Institute of Mining and
Metallurgy (AusIMM) and has consented to the inclusion of the material in the
form and context in which it appears.

Further information on KEFI is available at www.kefi-minerals.com

KEFI Minerals in the Kingdom of Saudi Arabia

In 2009, KEFI formed the Gold and Minerals Joint Venture ("G&M")
in Saudi Arabia with local Saudi partner Abdul Rahman Saad Al-Rashid & Sons
Company Limited ("ARTAR"), to explore for gold and associated metals in the
Arabian Shield. To date, the G&M has conducted preliminary regional
reconnaissance and lodged 23 Exploration Licence Applications (ELAs), of which
4 have been granted.

The ELAs were initially applied for and granted to ARTAR.
Incorporation of G&M has been completed and any granted Licences will be
transferred into G&M in due course.

The Kingdom of Saudi Arabia has instituted policies to encourage
minerals exploration and development and KEFI Minerals supports this priority
by serving as the technical partner within G&M. ARTAR also serves this
Government policy as the major partner in G&M, which is one of the early
movers in the modern resurgence of the Kingdom's minerals sector.

KEFI in Ethiopia

KEFI Minerals has acquired 75% of Tulu Kapi licence in western
Ethiopia and intends to refine the development plan for the project, aimed at
reducing the previously planned capital and operating expenditure. Early
studies have yielded encouraging results and was summarised in recent
announcements in respect of the Tulu Kapi acquisition transaction.

The Company is now positioned as an operator of two advanced gold
development projects within the highly prospective Arabian-Nubian Shield, with
an attributable 1.6Moz of JORC-compliant mineral resource plus significant
resource growth potential. By 2017, the aggregate estimated production at
these projects attributable to KEFI Minerals could exceed 80,000oz pa Au,
generating cashflows for further exploration and expansion as warranted,
recoupment of development costs and, when appropriate, dividends to
shareholders.

                                    -Ends-