Shareholder Agreement - RHA Tungsten Project, Z...

Premier African Minerals Limited / Ticker: PREM / Index: AIM / Sector: Mining 

30 September 2013

         Premier African Minerals Limited (`Premier' or `the Company')         

  Shareholder Agreement signed with NIEEF for RHA Tungsten Project, Zimbabwe   

Premier African Minerals Limited, an AIM quoted multi-commodity natural
resource company with mineral projects located in Western and Southern Africa,
is pleased to announce that RHA Tungsten Private Limited (`RHA') has
simultaneously concluded a shareholder agreement and a management agreement
with the National Indigenisation and Economic Empowerment Fund (`NIEEF'),
representing and acting for and on behalf of the Government of Zimbabwe (`the
Agreements'). RHA owns Premier's RHA Tungsten Project in north-west Zimbabwe
(`the Project'). In accordance with Indigenisation policy, NIEEF will hold 51%
of the issued share capital of RHA. Significantly, Premier's wholly owned
subsidiary, ZimDiv Holdings Limited, which in turn controls the remaining
equity in RHA, is appointed as the Manager of the Project for an initial 5 year
term.

Principal terms of the Agreements include:

  * Total expenditure incurred by RHA prior to 1 September 2013 will accrue as
    an interest bearing loan due to Premier.
   
  * From 1 September 2013, RHA became responsible for its own funding and
    neither Premier nor NIEEF shall be under any obligation to contribute to
    its exploration and development costs. Premier will provide interim
    assistance for on-going operations until alternative finance is in place.
   
  * Once RHA has obtained sufficient committed finance to enable it to develop
    and construct the mine and the Project has achieved commercial production,
    Premier will issue to NIEEF such number of new ordinary shares of nil par
    value in the capital of Premier as are equal in value, on the basis of a 20
    day volume weighted average price prior to such issue, to US$750,000.
   
  * An Entrenched dividend policy that proportions profit distribution to meet
    agreed debt repayment terms firstly, and thereafter equally to future
    development and dividend payment.
   
Premier's CEO George Roach commented, "RHA has been an indigenised Zimbabwean
company since Premier first entered into a letter of intent described in our
Admission Document, and the early completion of the Agreements is indicative of
the excellent relationship and mutual understanding that we have enjoyed with
NIEEF for some time now. In particular, that RHA is responsible for its own
development costs both eases the burden on Premier and broadens the sources
from which finance will be available to develop the Project into a low-capex
tungsten mine in the near-term.

"We are in advanced negotiations on an off-take and project finance and we have
committed to the additional confirmatory work suggested in the recently
published Mining Study and Preliminary Economic Assessment that highlighted the
robust economics of the Project with an undiscounted NPV of US$120 million and
IRR before tax of 378% projected."

                                   **ENDS**                                    

For further information please visit www.premierafricanminerals.com or contact
the following:

Pamela Hueston    Premier African Minerals Limited            Tel: [phone]                  
                                                                               
Tony Rawlinson    Cairn Financial Advisers LLP (Nomad)        Tel: [phone]                  
                                                                               
Jerry Keen        Shore Capital Stockbrokers Limited (Broker) Tel: [phone]                  
                                                                               
Edward Mansfield  Shore Capital Stockbrokers Limited (Broker) Tel: [phone]                  
                                                                               
Felicity Edwards  St Brides Media & Finance Ltd (PR)          Tel: [phone]                  
                                                                               
Charlotte Heap    St Brides Media & Finance Ltd (PR)          Tel: [phone]