STATEMENT BY AFARAK GROUP

15:00 London, 17:00 Helsinki, 10 November 2017 - Afarak Group Plc ("Afarak" or "the Company") (LSE: AFRK, NASDAQ: AFAGR)

STATEMENT BY AFARAK GROUP

The Company is making the following statement in response to various media reports in Finland.

CRIMINAL INVESTIGATIONS

• As far as the Company is aware, Afarak Group is not under any criminal investigation. The Police have earlier confirmed this and have not subsequently informed the company otherwise;
• The Company has given its full support and delivered documents for shareholder-related investigations as requested by the police;
• According to media sources there is still an investigation ongoing in relation to one of its shareholders. If requested by the authorities, the Company will give its full support, as it has always done. 

PETITIONS TO THE FINANCIAL SUPERVISORY AUTHORITY

• The Company was informed on September 19, 2017 about a petition to the FSA by a group of shareholders. The Company is not aware of the progress of this matter. If requested by the authorities, the Company will give its full support to the FSA.
• In the media, allegations have been made about another request to the FSA concerning a related party transaction. The Company has not been made aware of such a petition, so the Company is not in a position to confirm this. Again, if requested by the authorities, the Company will give its full support and cooperation.

LL RESOURCES

• There have been allegations in the media that the Company has not respected its disclosure obligations in respect of a related party transaction. In May 2017, a subsidiary of the Company bought a 15 % minority shareholding in a Company called LL Resources. The seller was the company's CEO, Guy Konsbruck, and the total purchase price was just over EUR 227,000.00. The reason for this transaction was that LL Resources is a business partner of Afarak and the share ownership of the newly elected CEO could have created a conflict of interest. Afarak has an option to sell back the said shares at the same price if and when the term of current CEO ends. The transaction was considered to be insignificant to the parties involved, as described in the Rules of Helsinki Stock Exchange, section 2.3.3.6. As required, the details of this transaction (as well as all other related party transactions) will be published in the Group Financial Statements for the year 2017.

If the Company receives information and /or makes any formal decisions on the matters above that, according to all relevant rules and regulations, need to be published, the Company will act accordingly. In relation to investigations and allegations relating to shareholders, the Company reiterates that it will not give any comments to the media or markets. It will cooperate fully with the authorities, if so requested.

EXTRAORDINARY SHAREHOLDERS MEETING

• As disclosed on 9^th November 2017, a group of shareholders have requested an extraordinary shareholders' meeting to be convened. The meeting will be convened in accordance with the Finnish Companies act.

The Board of Directors
Afarak Group

For additional information, please contact:

Afarak Group Plc

Guy Konsbruck, CEO, [phone], [e-mail]
Jean Paul Fabri, PR Manager, [phone], [e-mail]

Financial reports and other investor information are available on the Company's
website: www.afarak.com.

Afarak Group is a specialist alloy producer focused on delivering sustainable growth with a Speciality Alloys business in southern Europe and a FerroAlloys business in South Africa. The Company is listed on NASDAQ Helsinki (AFAGR) and the Main Market of the London Stock Exchange (AFRK).

Distribution:
NASDAQ Helsinki
London Stock Exchange
Main media

www.afarak.com

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Source: Afarak Group via Globenewswire