Declaration of 1.02 million ounce Ore Reserve E...

African Consolidated Resources plc / Ticker: AFCR / Index: AIM / Sector: Mining
4 March 2014

African Consolidated Resources plc ("AFCR" or "the Company")

Declaration of a 1.02 million ounce Ore Reserve Estimate

and

Updated Mineral Resource Estimate

and

Clarification of previous information

and

Corporate Update

African Consolidated Resources PLC, the AIM listed resources and development company, is pleased to announce the confirmation of an Ore Reserve Estimate in accordance with the Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves, 2012 Edition ("the 2012 JORC Code") of 16.6Mt grading at 1.9g/t for 1.02Moz of contained metal at its flagship Pickstone Peerless Gold Project in Zimbabwe ("Pickstone-Peerless"). Minxcon was retained as the Competent Person under the 2012 JORC Code to compile an estimate for the Ore Reserve.

The Company also announces an updated Mineral Resource Estimate on Pickstone-Peerless in accordance with the 2012 JORC Code supporting the Ore Reserve Estimate.  This is in line with company policy to report the Reserve estimate as a subset of the Mineral Resource.  The declared Resource is 62.0Mt at 1.8g/t containing 3.56 Moz at a cut-off grade of 0.3g/t down to 250 metres below surface (open pit) and at 1.5g/t for the remaining resource below 250 metres below surface. ExplorMine was retained as the appointed Competent Person under the 2012 JORC code to compile and estimate the Company's resources.

These upgraded Reserves and Resources have been developed from the Pre-Feasibility Study ("PFS") carried out by AFCR and as announced on 4 December 2013.    

In addition, the Company wishes to clarify certain information previously given for the benefit of investors and shareholders and provide a general corporate update.

Pickstone-Peerless Ore Reserve Estimate:

Key Highlights:

• A total Ore Reserve Estimate of 1.02 million ounces @ 1.9 g/t based on a gold price of USD 1,300/oz and a cut-off grade of 0.4g/t 

• The Ore Reserve Estimate is based on designed open pits down to a depth of approximately 220 metres for the Peerless open pit and 250 metres for the Pickstone open pit 

• 2012 JORC Ore Reserve Statement compiled by independent consultants Minxcon Pty (Ltd); this follows the PFS developed by AFCR and the provisional Reserve declaration by AFCR of 1 million ounces, both as released on 4 December 2013. 

PICKSTONE / PEERLESS TOTAL ORE RESERVES @ December 2013
PICKSTONE ORE RESERVES  December 2013	Reef Type	Cut-off Grade	Tonnes	Grade	Ounces Au
		g/t	Mt	g/t	Koz
Pickstone	Oxide
Proved	Oxide	0.4 g/t	0.46	1.4	21
Probable	Oxide		5.37	1.4	248
Total (Proven & Probable)	Oxide		5.84	1.4	269
Pickstone	Sulphide
Proved	Sulphide	0.4 g/t	0.04	4.0	5
Probable	Sulphide		5.96	2.7	526
Total (Proven & Probable)	Sulphide		5.99	2.8	531
Pickstone	All
Proved	All	0.4 g/t	0.50	1.6	26
Probable	All		11.33	2.1	774
Total (Proven & Probable)	All		11.83	2.1	800

PEERLESS ORE RESERVES  December 2013	Reef Type	Cut-off Grade	Tonnes	Grade	Ounces Au
		g/t	Mt	g/t	Koz
Peerless	Oxide
Proved	Oxide	0.4 g/t	0.45	0.9	13
Probable	Oxide		1.27	1.0	39
Total (Proven & Probable)	Oxide		1.72	1.0	53
Peerless	Sulphide
Proved	Sulphide	0.4 g/t	0.75	1.5	35
Probable	Sulphide		2.34	1.7	131
Total (Proven & Probable)	Sulphide		3.09	1.7	166
Peerless	All
Proved	All	0.4 g/t	1.20	1.2	48
Probable	All		3.61	1.5	170
Total (Proven & Probable)	All		4.81	1.4	218

TOTAL ORE RESERVES  December 2013	Reef Type	Cut-off Grade	Tonnes	Grade	Ounces Au
		g/t	Mt	g/t	Koz
Pickstone	All
Proved	All	0.4 g/t	0.50	1.6	26
Probable	All		11.33	2.1	774
Total (Proven & Probable)	All		11.83	2.1	800
Peerless	All
Proved	All	0.4 g/t	1.20	1.2	48
Probable	All		3.61	1.5	170
Total (Proven & Probable)	All		4.81	1.4	218
Total Mineral Reserve	All
Proved	All	0.4 g/t	1.70	1.3	74
Probable	All		14.94	2.0	944
Total (Proven & Probable)	All		16.64	1.9	1,018

Notes:

1. Tonnages refer to tonnes delivered to the metallurgical plant 

2. All tonnes are metric tonnes 

3. Dilution factors applied: Dilution=7%, Ore Loss=3%, Geological Loss=2%, MCF=100% 

4. Cut-off grade of 0.4g/t applied to pit optimisation 

5. Metal price of USD$1,300 per ounce 

6. Conversion factor 1kg = 32.15076 ounce 

7. Rounding may cause minor computational discrepancies 

The Ore Reserves have been estimated and compiled under the direction of Mr. Daniel van Heerden who is a Fellow of the South African Institute of Mining and Metallurgy ("FSAIMM") and a member of various professional organisations as publicised in a list by the Australian Securities Exchange ("ASX"). Mr. van Heerden has sufficient experience relevant to the style of mineralisation, type of deposit under consideration and for the activity being undertaken to qualify as a Competent Person as defined by the 2012 edition of the 'Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves'. Mr. van Heerden consents to the inclusion in the report of the matters based on their information in the form and context in which it appears.

AFCR wishes to clarify that the reserves table previously published on the Company's website erroneously omitted that it was a provisional reserve estimate, pursuant to the announcement of 4 December 2013.  

The full Ore Reserve Report prepared by Minxcon with an effective date of 1 November 2013 shall today be published on the Company's website. In addition, the Executive Summary of the report has been extracted into Appendix 1 to this announcement.  It should be noted that the Financial Valuation at paragraph 1.5 of Appendix 1 is the valuation of the base line case as referred to in the PFS Executive Summary announced on 4 December 2013.  AFCR's preferred option (Option 12) in the PFS Executive Summary gives a higher valuation.  

Updated Pickstone-Peerless JORC Resource estimate:

The ExplorMine Competent Persons Report ("CPR") detailing the June 2013 Mineral Resource Estimate for the Pickstone-Peerless Gold Project has been updated by ExplorMine Consultants with an effective date of December 2013 in accordance with the 2012 JORC Code.  A 'soft boundary' between the higher grade 'inner zone' and the lower grade 'outer zone' at Pickstone has been utilised and has resulted in a 2.2% increase in total Mineral Resources when compared on the same cut-off grades as the June 2013 CPR.

In addition, economic findings detailed in the PFS Report and the JORC Ore Reserve Estimate, in which the Ore Reserve Estimate for the open pit has been calculated at a cut-off grade of 0.4g/t, has resulted in the Resource Estimate being updated by ExplorMine to reflect the Mineral Resource Estimate at a cut-off grade 0.3g/t for both the Peerless and Pickstone open pits.  The change of cut-off grade is due to more precise technical and economic conclusions derived from the PFS.  The underground cut-off grade has been maintained at 1.5g/t for both the Peerless and Pickstone Mineral Resources.  

As a result of this, the Mineral Resources have increased in all resource categories and from a total of 39.96 Mt at 2.5 g/t for 3.21 Moz at a cut-off grade of 0.5g/t (Pickstone) and 0.6g/t (Peerless) as at June 2013, to now 62.0Mt at 1.8 g/t for a content of 3.56 Moz at a cut-off grade of 0.3g/t down to 250 metres below surface (open pit) and at 1.5g/t for the remaining resource below 250 metres below surface.

Total Opencast Mineral Resources	Pickstone and Peerless Opencast Mineral Resource Tabulation at a cut-off of 0.3 g/t
	Mineral Resource Category	Reef Type	Tonnes (million)	Grade Au (g/t)	Au (kg)	Au (oz)
	Measured	Oxide	1.22	1.17	1,428	45,911
	Indicated	Oxide	10.08	1.06	10,725	344,817
	Total Meas & Ind	Oxide	11.30	1.08	12,153	390,728
	Inferred	Oxide	0.76	0.89	679	21,830
	Total Resources	Oxide	12.06	1.06	12,832	412,558
	Mineral Resource Category	Reef Type	Tonnes (million)	Grade Au (g/t)	Au (kg)	Au (oz)
	Measured	Fresh	1.89	1.55	2,930	94,202
	Indicated	Fresh	16.92	1.63	27,599	887,328
	Total Meas & Ind	Fresh	18.81	1.62	30,529	981,530
	Inferred	Fresh	24.57	1.55	37,982	1,221,150
	Total Resources	Fresh	43.38	1.58	68,511	2,202,680
	Mineral Resource Category	Reef Type	Tonnes (million)	Grade Au (g/t)	Au (kg)	Au (oz)
	Measured	All	3.11	1.40	4,358	140,113
	Indicated	All	27.00	1.42	38,324	1,232,145
	Total Meas & Ind	All	30.11	1.42	42,682	1,372,258
	Inferred	All	25.33	1.53	38,661	1,242,980
	Total Resources	All	55.44	1.47	81,343	2,615,238
Total Underground Mineral Resources	Pickstone and Peerless Underground Mineral Resource Tabulation at a cut-off of 1.5 g/t
	Mineral Resource Category	Reef Type	Tonnes (million)	Grade Au (g/t)	Au (kg)	Au (oz)
	Measured	Oxide	-	-	-	-
	Indicated	Oxide	-	-	-	-
	Total Meas & Ind	Oxide	-	-	-	-
	Inferred	Oxide	-	-	-	-
	Total Resources	Oxide	-	-	-	-
	Mineral Resource Category	Reef Type	Tonnes (million)	Grade Au (g/t)	Au (kg)	Au (oz)
	Measured	Fresh	-	-	-	-
	Indicated	Fresh	1.72	4.81	8,278	266,146
	Total Meas & Ind	Fresh	1.72	4.81	8,278	266,146
	Inferred	Fresh	4.80	4.40	21,105	678,527
	Total Resources	Fresh	6.52	4.51	29,383	944,673
	Mineral Resource Category	Reef Type	Tonnes (million)	Grade Au (g/t)	Au (kg)	Au (oz)
	Measured	All	-	-	-	-
	Indicated	All	1.72	4.81	8,278	266,146
	Total Meas & Ind	All	1.72	4.81	8,278	266,146
	Inferred	All	4.80	4.40	21,105	678,527
	Total Resources	All	6.52	4.51	29,383	944,673
Total Mineral Resources	Pickstone and Peerless Mineral Resource Tabulation at a cut-off of 1.5 g/t for UG and 0.3 g/t for opencast
	Mineral Resource Category	Reef Type	Tonnes (million)	Grade Au (g/t)	Au (kg)	Au (oz)
	Measured	Oxide	1.22	1.17	1,428	45,911
	Indicated	Oxide	10.08	1.06	10,725	344,817
	Total Meas & Ind	Oxide	11.30	1.08	12,153	390,728
	Inferred	Oxide	0.76	0.89	679	21,830
	Total Resources	Oxide	12.06	1.06	12,832	412,558
	Mineral Resource Category	Reef Type	Tonnes (million)	Grade Au (g/t)	Au (kg)	Au (oz)
	Measured	Fresh	1.89	1.55	2,930	94,202
	Indicated	Fresh	18.64	1.92	35,877	1,153,474
	Total Meas & Ind	Fresh	20.53	1.89	38,807	1,247,676
	Inferred	Fresh	29.37	2.01	59,087	1,899,677
	Total Resources	Fresh	49.90	1.96	97,894	3,147,353
	Mineral Resource Category	Reef Type	Tonnes (million)	Grade Au (g/t)	Au (kg)	Au (oz)
	Measured	All	3.11	1.40	4,358	140,113
	Indicated	All	28.72	1.62	46,602	1,498,291
	Total Meas & Ind	All	31.83	1.60	50,960	1,638,404
	Inferred	All	30.13	1.98	59,766	1,921,507
	Total Resources	All	61.96	1.79	110,726	3,559,911

Notes:

1. Mineral Resources are reported as inclusive of Ore Reserves.  

2. Cut-off Grades Pickstone: Open Pit (above 250m below surface) 0.30g/t; Underground (below250m from surface) 1.5 g/t 

3. Cut-off Grades Peerless: Open Pit (above 250m below surface) 0.30g/t; Underground (below 250m from surface) 1.5 g/t 

4. Rounding may cause minor computational discrepancies 

For comparative purposes, a tabulation for both the surface Resources and underground Resources at Pickstone Peerless are provided below to illustrate the impact of reducing the cut-off grade.

PEERLESS SURFACE RESOURCES
Cut-Off Grade (g/t)	Tonnes (Mt)	Grade above cut-off (g/t)	Au (Koz)	Au (kg's)
-	33.70	1.1	1,227	38,161
0.3 *	25.57	1.4	1,173	36,485
0.6 **	16.08	2.0	1,042	32,406
1.0	10.85	2.6	914	28,419
1.5	7.82	3.2	793	24,677
2.0	5.48	3.8	663	20,621
3.0	2.93	5.0	469	14,597
4.0	1.97	5.7	362	11,265
5.0	1.08	6.8	234	7,281

Notes:
* Represents the cut-off grade used for the surface Mineral Resources as currently reported (December 2013)
** Represents the cut-off grade used for the surface Mineral Resources as previously reported (June 2013)
Open Pit Mineral Resources are defined as above 250m below surface

PICKSTONE SURFACE RESOURCES
Cut-Off Grade (g/t)	Tonnes (Mt)	Grade above cut-off (g/t)	Au (Koz)	Au (kg's)
-	80.68	0.7	1690	52,565
0.3 *	29.86	1.5	1442	44,859
0.5 **	17.15	2.2	1,240	38,566
1	9.98	3.5	1118	34,765
1.5	7.14	4.4	1007	31,312
2	5.47	5.2	913	28,396
3	3.7	6.5	776	24,136
4	2.71	7.6	665	20,697
5	2.04	8.7	570	17,721

Notes:
* Represents the cut-off grade used for the surface Mineral Resources as currently reported (December 2013)
** Represents the cut-off grade used for the surface Mineral Resources as previously reported (June 2013)
Open Pit Mineral Resources are defined as above 250m below surface

PEERLESS UNDERGROUND RESOURCES
Cut-Off Grade (g/t)	Tonnes (Mt)	Grade above cut-off (g/t)	Au (Koz)	Au (kg's)
-	3.38	1.7	181	5,620
0.3	2.98	1.9	178	5,539
0.5	1.94	2.6	164	5,113
1.0	1.50	3.2	155	4,808
1.5 *	1.17	3.8	141	4,393
2.0	0.95	4.2	130	4,030
3.0	0.62	5.2	103	3,204
4.0	0.51	5.6	92	2,862
5.0	0.19	7.4	46	1,428

Notes:
* Represents the cut-off grade used for the underground Mineral Resources both as currently reported (December 2013) and as previously reported (June 2013 CPR)
Underground Mineral Resources are defined as below 250m below surface

PICKSTONE UNDERGROUND RESOURCES
Cut-Off Grade (g/t)	Tonnes (Mt)	Grade above cut-off (g/t)	Au (Koz)	Au (kg's)
-	6.29	4.1	825	25,670
0.3	6.13	4.2	824	25,640
0.5	5.97	4.3	822	25,575
1	6.60	4.5	814	25,314
1.5 *	5.35	4.7	803	24,990
2	4.80	5.0	772	24,012
3	3.76	5.7	691	21,478
4	3.00	6.3	606	18,844
5	2.23	6.9	494	15,375

Notes:
* Represents the cut-off grade used for the underground Mineral Resources both as currently reported (December 2013) and as previously reported (June 2013 CPR)
 Underground Mineral Resources are defined as below 250m below surface

The full ExplorMine Competent Persons Report, which incorporates the above Mineral Resource Statement shall today be published on the Company's website. In addition, an extract from the CPR of the full summary estimation of the Mineral Resources (section 1.4) and the summary Conclusions and Recommendations (sections 1.5 and 1.6) is detailed in Appendix 2 to this announcement.

Clarification of previous information:

Due to the number of different reports that have been issued since November 2012 as the understanding of the Pickstone Peerless ore body has grown, the Company believes it appropriate and helpful to make clear where the Company has taken responsibility itself, through its team of employed Competent Persons (in accordance with the JORC Code) and other qualified employees, and where the Company has retained and relied on third party experts.

The table below shows the various responsibilities, the announcement date and location of relevant reports for the Preliminary Economic Assessment (14.11.12); JORC CPR (15.07.13); DFS (15.07.13); JORC Ore Reserve (15.07.13); audit by SRK/Camisani of Resources (30.09.13); outcome of PFS and Executive Summary (04.12.13); and Ore Reserve (today).

Information Available for Pickstone Peerless Reserves/Resources and Mining Studies

Report/announcement date/location	Purpose	Author
PEA: Preliminary Economic Assessment Announced 14 November 2012 and 4 December 2012 AFCR Website	Scoping study to assess viability of Phase 1 and 2 open pits on Pickstone trend, prior to commissioning DFS on Phase 1 oxide pit	Minxcon, AFCR
JORC  CPR   Announced: 15 July 2013 Location: AFCR Website	Upgraded Resource estimate to support DFS. Hard Boundary at Pickstone.	ExplorMine
Definitive Feasibility Study Announced: 15 July 2013, Supported by: DFS Executive Summary June 2013 Location: AFCR Website	DFS for development of a Stage 1, 20,000 tonne- per- month plant, mining shallow oxide ore. Facilitates fast development of a relatively low-capex, high-recovery gold plant.	AFCR: overall responsibility of study, including compilation, finalisation and conclusions Assisted by Independent Experts: Minxcon: Mine design, Financial valuation,  JORC Ore Reserves ExplorMine: CPR JORC Resources Others covering metallurgy, tailings, environmental impact assessment, geotechnical design, plant design and layout and geohydrology
JORC  Ore Reserves Estimate to support DFS Announced: 15 July 2013 Location: To be made available on AFCR Website on 4 March 2014	Maiden Ore Reserve Statement of 136,000 Oz as a result of the DFS study	Minxcon
Audit  of July 2013 Resources, Announced: 30 September 2013 Location: To be made available on AFCR Website on 4 March 2014	Confirmation of the July 2013 Resource estimate	Dr Ferdi Camisani SRK Consulting
PFS: Outcome of Prefeasibility Study statement Announced 4 December 2013: AFCR Website Supported by: PFS Executive summary Location: AFCR Website	Study for Phase 2 pit, mining oxide and sulphide ore to 250m depth. Provisional declaration of a 1Moz Ore Reserve as a consequence - JORC report to follow. This study enabled a term sheet for $70m debt funding from a major African bank.	AFCR: overall responsibility and drafting of study Minxcon: supporting financial valuation Senet; metallurgical review, plant design & layout, Capex and Opex estimate
JORC Ore Reserve and Resource Declaration Announced 4 March 2014 Location: To be made available on AFCR Website on 4 March 2014	Confirmation of Ore Reserve of 1.02Moz as foreshadowed in PFS, plus upgrade of JORC Resources which were re-calculated at new cut-off grades according to the financial conclusions of the PFS.	Reserves: Minxcon Resources: ExplorMine Reviewed by AFCR
JORC CPR - Resource Estimate December 2013 Announced 4 March 2014 Location: To be made available on AFCR Website on 4 March 2014	Details the Resource statements in the PFS and is in line with company policy to report Reserves as subsets of Resources. Soft Boundary at Pickstone.	ExplorMine
JORC Ore Reserve Estimate December 2013 Announced 4 March 2014 Location: To be made available on AFCR Website on 4 March 2014	JORC estimate of 1.02Moz Reserve as subset of JORC Resource above	Minxcon

Pursuant to the announcement of the DFS of 15 July 2013 (the "DFS Announcement"), Basil Read Matomo ("BRM") had been appointed lead contractor for the DFS and had been intended to remain as such for the PFS.  However, following a dispute between the Company and BRM, which was not connected in any way with the results of the DFS, the relationship with BRM was terminated in August 2013.  The Company wishes to clarify that whilst BRM contributed to plant design and construction pursuant to its contract, the Company is responsible for the authoring of the DFS and also sought third party assurances on work undertaken by BRM from Minxcon and others; that Minxcon was the Competent Person for the Ore Reserve; and that ExplorMine was the Competent Person for the Ore Resource. In authoring the DFS, the Company's team of employed Competent Persons (in accordance with the JORC Code) and other qualified employees worked closely and directly with Minxcon.  Minxcon reviewed the DFS and has confirmed that the study is of adequate quality and level of detail to be used to conduct a 2012 JORC-compliant Ore Reserve estimation.  

Similarly, in authoring the subsequent PFS, the Company's team of employed Competent Persons (in accordance with the JORC Code) and other qualified employees worked closely with Minxcon.  Minxcon also reviewed the PFS and has confirmed that the study is of adequate quality and level of detail to be used to conduct a 2012 JORC-compliant Ore Reserve estimation.

The DFS and PFS used the terms "Mineral Inventory", "Mining Inventory" and "Diluted ounces" which are not defined by the JORC Code but are deemed by the Company to be industry accepted terms. However, the announcements of the DFS and PFS did not incorporate the following definitions for such terms, which are detailed below:

Mineral Inventory	The total mineral Resources (Measured, Indicated and Inferred) contained within a defined mining unit on an in-situ (undiluted) basis
Mining Inventory	The total mineral Resources (Measured, Indicated and Inferred) contained within a defined mining unit on a diluted basis based on 'modifying factors' as per the JORC code
Diluted ounces	Gold ounces contained within in-situ ore the quantum of which have been diluted by application of the 'modifying factors' as per the JORC reporting code

Corporate Update:

Nkombwa Hill (Zambia)

Galileo Resources Plc ("Galileo"), which is financing AFCR's Joint Venture ("JV") on the Nkombwa Hills Rare-Earth ("REE") and Phosphate project in NE Zambia, has advised AFCR that it will be relinquishing its interest in all greenfield projects, including Nkombwa Hill.

Galileo was earning an interest by funding exploration expenditure on the JV between AFCR and Australian-based Rare Earth International ("REI").  The REI/Galileo group is committed to spend US$1.35 million by Q4 2014 in order to define a JORC-Indicated REE Resource.  Communication concerning termination of the JV is ongoing.

AFCR is highly encouraged by the extent and grades of the REE surface sampling in 2013, and the JV has already established a water bore and a track to the mountain summit, in order to commence drilling in the onset of the Zambian dry season.

With the departure of Galileo, AFCR is actively seeking new partners to progress the REE and Phosphate exploration on this major mineralised carbonatite complex.

Kalengwa (Zambia)

There was a hearing in the Supreme Court of Zambia on 26 February 2014 against the occupier of the site and officials for Contempt of the Supreme Court judgement of 2011 and the Company awaits the judgement.  As announced in the Interim Results on 19 December 2013, this was originally set down for hearing on 14 January 2014 but the defendants succeeded in gaining an adjournment.  Further detail on the legal issues surrounding this key project was provided in the Chairman's Report in the 2012 Annual Report.

Pickstone Peerless

The Company is pleased to inform shareholders that it is currently undertaking a due diligence exercise with a major African bank with which a term sheet was signed in 2013.  The term sheet provides for a debt facility to fully finance the expansion of the mine to 50,000 tonnes per month, subject to customary due diligence, credit committee approval and also to AFCR securing equity for the initial plant construction.

The Company is now engaging with a number of interested parties to raise USD 30 million for Phase 1 construction as required by the term sheet as a pre-condition to debt-financing the project.  The Company is therefore also facilitating due diligence exercises with parties who have expressed bona fide interest in this respect.

A detailed indigenization plan has been drafted and its submission to the relevant Zimbabwean authority is imminent.  By regulation, the indigenization authority has 45 days to approve or reject the submission from the date of submission.

Funding

The cash balance at 31 January 2014 was $1.85 million (unaudited) and as reported in the Interim Results further funding will be required in Q2 2014 in order for AFCR to both continue operating as a going concern and develop its Pickstone-Peerless Gold Project together with its portfolio of high impact assets.  Discussions are in progress in relation to additional equity funding.

**ENDS**

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

Roy Tucker	African Consolidated Resources plc	[phone] [phone]
Craig Hutton	African Consolidated Resources plc	[phone]
Andrew Godber	Panmure Gordon (UK) Limited	[phone]
Adam James	Panmure Gordon (UK) Limited	[phone]
Susie Geliher	St Brides Media & Finance Ltd	[phone]

Minxcon has read and approved the disclosure of the technical information relating to the Ore Reserve Estimate contained in this announcement.

ExplorMine has read and approved the disclosure of the technical information relating to the Mineral Resource Estimate and the Competent Persons Report contained in this announcement.

This announcement has been reviewed by Mike Kellow BSc, a member of the Australian Institute of Geologists and Technical Director of AFCR.  Mr Kellow meets the definition of a "qualified person" as defined in the AIM Note for Mining, Oil and Gas Companies.

Glossary of key technical terms

Term	Explanation
Au	chemical symbol for gold
Core	Cylindrical sample of rock as cut by a diamond drill
CPR	Competent Persons Report
Cut-off grade	The minimum grade at which a unit of ore will be mined to achieve the desired economic outcome.
DFS	Definitive Feasibility Study
diamond drilling	Drilling method using a diamond-impregnated cutting bit to obtain a core sample of rock
diluted	in-situ material which has been diluted by application of the 'modifying factors' as per the JORC reporting code
greenstone belt	belts of metamorphosed sedimentary and igneous rocks of Archean age
Indicated mineral resource	An 'indicated mineral resource' is that part of a mineral resource for which tonnage, densities, shape, physical characteristics, grade and mineral content can be estimated with a reasonable level of confidence. It is based on exploration, sampling and testing information gathered through appropriate techniques from locations such as outcrops, trenches, pits, workings and drill holes. The locations are too widely or inappropriately spaced to confirm geological and/or grade continuity but are spaced closely enough for continuity to be assumed.
Inferred mineral resource	An 'inferred mineral resource' is that part of a mineral resource for which tonnage, grade resource and mineral content can be estimated with a low level of confidence. It is inferred from geological evidence and assumed but not verified geological and/or grade continuity. It is based on information gathered through appropriate techniques from locations such as outcrops, trenches, pits, workings and drill holes which may be limited or of uncertain quality and reliability.
in-situ	material in the ground which has not been diluted or had losses applied to it
JORC	Joint Ore Reserves Committee of the Australasian Institute of Mining and Metallurgy
Lodes	Higher grade portion of mineralised zones, usually with specific orientation
MCF	Mine Call Factor
Measured mineral resource	A 'measured mineral resource' is that part of a mineral resource for which tonnage, densities, shape, physical characteristics, grade and mineral content can be estimated with a high level of confidence. It is based on detailed and reliable exploration, sampling and testing information gathered through appropriate techniques from locations such as outcrops, trenches, pits, workings and drill holes. The locations are spaced closely enough to confirm geological and grade continuity.
Metallurgical plant	A processing plant erected to treat ore and extract gold.
Mine call factor	The ratio, expressed as a percentage, of the total quantity of recovered and unrecovered mineral product after processing with the amount estimated in the ore based on sampling. It is expressed as the Gold Called For ("GCF") versus the Gold Accounted For ("GAF")
mineralised zones	hydrothermally altered structural features containing potentially valuable minerals
Modifying factors (JORC code)	Mining factors applied to in-situ, undiluted Resources that then become diluted material for a plant feed and represent a Reserve as defined by the JORC code.  Modifying factors include waste dilution, ore losses, geological losses and mine call factor.
orebody	economically viable portion of a mineralised zone
oxide	mineral compounds containing oxygen with minimal or no sulphur compounds
PFS	Pre-Feasibility Study
Probable mineral reserve	A 'probable mineral reserve' is the economically mineable part of an indicated, and in some circumstances, a measured mineral resource. It includes diluting materials and allowances for losses which may occur when the material is mined. Appropriate assessments and studies have been carried out, and include consideration of and modification by realistically assumed mining, metallurgical, economic, marketing, legal, environmental, social and governmental factors. These assessments demonstrate at the time of reporting that extraction could reasonably be justified
Proved reserve	A 'proved mineral reserve' is the economically mineable part of a measured mineral resource. It includes diluting materials and allowances for losses which may occur when the material is mined. Appropriate assessments and studies have been carried out, and include consideration of and modification by realistically assumed mining, metallurgical, economic, marketing, legal, environmental, social and governmental factors. These assessments demonstrate at the time of reporting that extraction could reasonably be justified
Reserve	Ore Reserve as defined by the JORC Code 2012
Resource	mineral resource as defined by the JORC Code 2012
reverse circulation drilling	rotary percussion drilling whereby the sample is returned from the cutting head inside the rod string to surface thereby avoiding contamination from the walls of the hole
sulphide	sulphur bearing metallic mineral
tenement	an area encompassing a number of blocks of claims
undiluted	in-situ material which has not been diluted by application of the 'modifying factors' as per the JORC reporting code.
UNITS
cm.g/t	centimetre grams per tonne - metal content expressed as grade times thickness
g	gramme
g/t	grammes per metric tonne - metal concentration
Ha	hectare
Kg	kilogramme, a thousand grammes
Km	kilometre
Koz	thousand ounces
Kt	thousand metric tonnes
Kv	thousand volt
Kva	thousand volt amperes
M	metre
mm	millimetre
µm	micron, or millionth of a metre
Mt	million metric tonnes
Moz	million ounces
oz	fine troy ounce equaling 31.1048 grammes - normal unit used in selling gold
ppb	parts per billion
ppm	parts per million, equivalent to g/t
t	metric tonne
t/m3	density measured as metric tonnes per cubic metre

Appendix 1 -Ore Reserve Report Minxcon Summary extract

1 EXECUTIVE SUMMARY

Minxcon (Pty) Ltd ("Minxcon") was commissioned by African Consolidated Resources ("AFCR" or "the Client") to complete an Ore Reserve report on the Pickstone-Peerless Gold Project ("the Project") in Zimbabwe, in compliance with the requirements of the 2012 edition of the Australasian Code for the Reporting of Exploration Results, Mineral Resources and Ore Reserves ("the JORC Code").

1.1 MINERAL RESOURCES

The Mineral Resource estimation and Resource block model that was used for the Mineral Resource to Ore Reserve conversion was conducted by ExplorMine Consultants in June 2013, Bill Northrop, Andre Deiss and Garth Mitchell signed off the Mineral Resource estimation and block model as the Qualified Person ("QP").

Mineral Resource Estimation for the Pickstone-Peerless Project - Effective June 2013, ExplorMine Consultants

Reef Type	Mineral Resource Category	Tonnes (million)	Grade g/t	Au Oz
Oxides	Measured	0.70	1.48	33,166
	Indicated	5.23	1.58	265,739
	Total Meas & Ind	5.93	1.57	298,905
	Inferred	0.53	1.41	24,010
	Total Resource	6.45	1.56	322,925
Sulphides	Measured	1.21	2.15	83,919
	Indicated	11.97	2.69	1,034,118
	Total Meas & Ind	13.18	2.64	1,118,037
	Inferred	20.33	2.71	1,771,649
	Total Resource	33.51	2.68	2,889,686
All	Measured	1.91	1.91	117,086
	Indicated	17.20	2.35	1,299,857
	Total Meas & Ind	19.11	2.31	1,416,942
	Inferred	20.86	2.68	1,795,669
	Total Resource	39.96	2.50	3,212,611

1.2 LIFE OF MINE PLAN

The diluted LoM plan is illustrated in the following figure. It must be noted that the production profile represented in this document is the Base Case option of the Pre-Feasibility Study ('PFS').

[Diluted LoM Profile graph - see full document on AFCR website]

The LoM production summary is detailed in the following table.

Description	Unit	Peerless	Pickstone	Project Total
Total tonnes mined	t	57,107,361	177,493,455	234,600,817
Total Oxides - tonnes Mined	t	1,675,561	5,938,739	7,614,300
Total Sulphides - Tonnes Mined	t	4,244,062	7,275,739	11,519,801
Total Waste - Tonnes Mined	t	51,187,739	164,278.977	215,466,716
In Situ Grade (Oxides)	g/t	1.04	1.55	1.44
In Situ Grade (Sulphides)	g/t	2.01	3.15	2.73
In Situ Grade (Oxides and Sulphides)	g/t	1.73	2.43	2.22
Content Au (Oxides)	kg	1,736	9,226	10,962
Content Au (Sulphides)	kg	8,531	22,948	31,480
Content Au (Oxides and Sulphides)	kg	10,267	32,174	42,441
Content Au (Oxides)	ounces	55,800	296,606	352,406
Content Au (Sulphides)	ounces	274,278	737,776	1,012,054
Content Au (Oxides and Sulphides)	ounces	330,078	1,034,382	1,364,460
Stripping Ratio		8.65	12.43	11.26

1.3 PROVED AND PROBABLE ORE RESERVES

The Ore Reserve estimation conducted by Minxcon is detailed in the following table. These reserves stated are based on an option from the PFS completed by Minxcon.

Ore Reserves as at 6 December 2013

Pickstone Ore Reserve Category	Tonnes	Au Content Koz	Grade g/t
Proved Oxides	464,534	20.6	1.38
Probable Oxides	5,373,059	248.3	1.44
Total Proved & Probable Oxides	5,837,594	268.9	1.43
Proved Sulphides	38,361	4.9	3.94
Probable Sulphides	5,956,614	525.8	2.75
Total Proved & Probable Sulphides	5,994,975	530.6	2.75
Total Pickstone (Oxides and Sulphides)	11,832,569	799.6	2.10

Peerless Ore Reserve Category	Tonnes	Au Content Koz	Grade g/t
Proved Oxides	450,886	13.1	0.90
Probable Oxides	1,265,997	39.4	0.97
Total Proved & Probable Oxides	1,716,882	52.5	0.95
Proved Sulphides	746,603	35.0	1.46
Probable Sulphides	2,341,859	130.5	1.73
Total Proved & Probable Sulphides	3,088,462	165.5	1.67
Total Peerless (Oxides and Sulphides)	4,805,344	218.0	1.41

Total Ore Reserve Category	Tonnes	Au Content Koz	Grade g/t
Proved Oxides	915,420	33.8	1.15
Probable Oxides	6,639,056	287.7	1.35
Total Proved & Probable Oxides	7,554,476	321.5	1.32
Proved Sulphides	784,964	39.9	1.58
Probable Sulphides	8,298,473	656.3	2.46
Total Proved & Probable Sulphides	9,083,438	696.2	2.38
Total All (Oxides and Sulphides)	16,637,914	1,017.6	1.90

Notes:
1. Tonnages refer to tonnes delivered to the metallurgical plant.
2. Dilution factors applied: Dilution = 7%, Ore Loss = 3%, Geo loss = 2% and MCF = 100%.
3. Cut-off was 0.4 g/t, a pit optimization was also done. The subsequent ultimate pit was used as a cut-off parameter.
4. Metal prices used were: Gold = USD1300/oz.
5. Conversion: 1 kg = 32.15076 oz.

1.4 OPERATING COST

The operating cost breakdown for all the different mining phases is detailed in the following table.

Operating Cost Breakdown

Production Variable Cost	Unit	Phase 1	Phase 2
Ore tonnes produced	USD/Ore Tonne	3.34	2.00
Waste Tonnes produced	USD/Waste tonne	2.95	1.57
Production Fixed Cost
Fixed Cost	USD/month	166,562.68	166,562.68

The 20 ktpm oxides and 50 ktpm sulphides plant operating cost is detailed in the following tables.

Operating Cost - 20 ktpm Oxides Plant

20 ktpm Oxides Plant	Units	Value
Fixed Cost Per Month
Power	USD/t ore milled	0.14
Water	USD/t ore milled	0.003
Labour	USD/t ore milled	6.35
Sewerage Works	USD/t ore milled	0.001
Security- Final product handling and dispatch	USD/t ore milled	1.03
Maintenance	USD/t ore milled	0.72
Total Fixed Costs	USD/t ore milled	8.25
Variable Costs
Consumables	USD/t ore milled	5.31
Reagents	USD/t ore milled	4.50
Water	USD/t ore milled	0.03
Power	USD/t ore milled	4.49
TSF	USD/t ore milled	0.03
Diesel	USD/t ore milled	0.49
Laboratory- reagents and consumables	USD/t ore milled	0.75
Transport	USD/t ore milled	0.71
Total Variable Costs	USD/t ore milled	16.32
OPEX Contingency	USD/t ore milled	0.00
Total OPEX Cost	USD/t ore milled	24.56

Source:  Senet  

Operating Cost - 50 ktpm Sulphides Plant

50 ktpm Sulphide Plant	Units	Value
Fixed Cost Per Month
Power	USD/t ore milled	0.06
Water	USD/t ore milled	0.00
Labour	USD/t ore milled	3.83
Sewerage Works	USD/t ore milled	0.00
Security- Final product handling and dispatch	USD/t ore milled	0.41
Maintenance	USD/t ore milled	0.53
Flotation	USD/t ore milled	1.00
Total Fixed Costs	USD/t ore milled	5.83
Consumables	USD/t ore milled	3.99
Reagents	USD/t ore milled	6.72
Water	USD/t ore milled	0.03
Power	USD/t ore milled	4.10
TSF	USD/t ore milled	0.03
Diesel	USD/t ore milled	0.20
Laboratory- reagents and consumables	USD/t ore milled	0.79
Transport	USD/t ore milled	0.71
Total Variable Costs	USD/t ore milled	16.56
OPEX Contingency	USD/t ore milled	0.00
Total OPEX Cost	USD/t ore milled	22.39
Float, UFG + Intensive Leach-Reduction		5.14
Total OPEX Cost		27.53

Source:  Senet

1.5 FINANCIAL VALUATION

Minxcon's in-house Discounted Cash Flow ("DCF") model was used to illustrate the net present value ("NPV") for the operation in real terms. The NPV is derived from post royalties and tax, pre-debt real cash flows, using the techno-economic parameters, commodity price and macro-economic projections. The project valuation summary is described in the following table.

Project Valuation

Real Discount Rate	Unit	Project
NPV @ 0.00%	USDm	279
NPV @ 5.00%	USDm	176
NPV @ 10.00%	USDm	112
NPV @ 15.00%	USDm	71
NPV @ 20.00%	USDm	45
IRR	USDm	41%

For the purpose of the DCF, the company has taken into consideration the full mineable resource life. The Project has a mining LoM of 12 years and a plant treatment life of 26 years. The first financial year is from January 2014 to December 2014.

In order to maximise the grade feed to the plant, the Company decided to decouple the pit from the plant. In order to do so, stockpiles with different grades were modelled which will be fed into the plant to achieve a desirable grade. This was done to generate positive profit:cash margins as soon as possible and to reduce the payback period of the initial capital. As a result of the strategy explained above the cash flows from 2031 are displayed as marginal and is a function of the grade of the stockpiles left behind that will be fed into the plant.

Average payback was calculated from start of first capital expenditure in January 2014 and was calculated at 5.4 years (concluding in May 2019). Peak cash flow is seen during 2026.

[Annual and cumulative Cash Flow graph - see full document on AFCR website]

Based on the real cash flow calculated in the financial model, Minxcon performed single-parameter sensitivity analyses to ascertain the impact on the NPV. For the DCF the gold prices, grade and recoveries have the biggest impact on the sensitivity of the project. Although a large amount of capital is required upfront, the impact on the NPV over the LoM is minimal.

[Sensitivity Analysis graph - see full document on AFCR website]

Appendix 2 - Mineral Resource Estimation - ExplorMine CPR extract

1.4 Mineral Resources
A complete estimation of the Mineral Resources has been performed based on a database that has been completely checked and corrected for entry errors. It is intended to perform an evaluation that will give a spatial expression of value distribution, so that the extraction of the primary gold Mineral Resources can be planned efficiently. Hangingwall and footwall mineralisation was also estimated so as to aid Feasibility Study options. Ordinary kriging, for all Mineral Resource categories, was carried out into three-dimensional geological block models for each modelled mineralised zone, which produced a three-dimensional spatial distribution of gold grade in inclined reef structural blocks.

Total Opencast Mineral Resources	Peerless Opencast Mineral Resource Tabulation at a cut-off of 0.3 g/t
	Mineral Resource Category	Reef Type	Tonnes (million)	Grade Au (g/t)	Au (kg)	Au (oz)
	Measured	Oxide	0.73	0.89	648	20,834
	Indicated	Oxide	1.40	0.95	1,334	42,889
	Total Meas & Ind	Oxide	21.3	0.93	1,982	63,723
	Inferred	Oxide	0.12	0.74	89	2,861
	Total Resources	Oxide	0.25	0.92	2,071	66,584
	Mineral Resource Category	Reef Type	Tonnes (million)	Grade Au (g/t)	Au (kg)	Au (oz)
	Measured	Fresh	1.76	1.17	2,060	66,231
	Indicated	Fresh	5.04	1.36	6,860	220,554
	Total Meas & Ind	Fresh	6.80	1.31	8.920	286,785
	Inferred	Fresh	16.53	1.54	25,493	819,619
	Total Resources	Fresh	23.33	1.43	36,484	1,172.988
	Mineral Resource Category	Reef Type	Tonnes (million)	Grade Au (g/t)	Au (kg)	Au (oz)
	Measured	All	2.49	1.09	2,708	87,064
	Indicated	All	6.44	1.27	8,194	263,443
	Total Meas & Ind	All	8.93	1.22	10,902	350,507
	Inferred	All	16.65	1.54	25,582	822,480
	Total Resources	All	25.58	1.43	36,484	1,172,988
Total Underground Mineral Resources	Peerless Underground Mineral Resource Tabulation at a cut-off of 1.5 g/t
	Mineral Resource Category	Reef Type	Tonnes (million)	Grade Au (g/t)	Au (kg)	Au (oz)
	Measured	Oxide	-	-	-	-
	Indicated	Oxide	-	-	-	-
	Total Meas & Ind	Oxide	-	-	-	-
	Inferred	Oxide	-	-	-	-
	Total Resources	Oxide	-	-	-	-
	Mineral Resource Category	Reef Type	Tonnes (million)	Grade Au (g/t)	Au (kg)	Au (oz)
	Measured	Fresh
	Indicated	Fresh	0.02	1.68	35	1.127
	Total Meas & Ind	Fresh	0.02	1.68	35	1,127
	Inferred	Fresh	1.15	3.80	4,358	140,099
	Total Resources	Fresh	1.17	3,77	4,393	141,226
	Mineral Resource Category	Reef Type	Tonnes (million)	Grade Au (g/t)	Au (kg)	Au (oz)
	Measured	All
	Indicated	All	0.02	0.89	648	20,834
	Total Meas & Ind	All	0.02	0.95	1,334	42,889
	Inferred	All	1.15	0.93	1,982	63,723
	Total Resources	All	1.17	3.77	4,393	141,226
Total Mineral Resources	Peerless Mineral Resource Tabulation at a cut-off of 1.5 g/t for UG and 0.3 g/t for opencast
	Mineral Resource Category	Reef Type	Tonnes (million)	Grade Au (g/t)	Au (kg)	Au (oz)
	Measured	Oxide	0.73	0.89	648	20,834
	Indicated	Oxide	1.40	0.95	1,334	42,889
	Total Meas & Ind	Oxide	2.13	0.93	1.982	63,723
	Inferred	Oxide	0.12	0.74	89	2,861
	Total Resources	Oxide	2.25	0.92	2,071	66,584
	Mineral Resource Category	Reef Type	Tonnes (million)	Grade Au (g/t)	Au (kg)	Au (oz)
	Measured	Fresh	1.75	1.17	2.060	66,231
	Indicated	Fresh	5.06	1.36	6,895	221,681
	Total Meas & Ind	Fresh	6.82	1.31	8,955	287,912
	Inferred	Fresh	17.68	1.69	29,851	959,718
	Total Resources	Fresh	24.50	1.58	38,806	1,247,630
	Mineral Resource Category	Reef Type	Tonnes (million)	Grade Au (g/t)	Au (kg)	Au (oz)
	Measured	All	2.49	1.09	2,708	87,064
	Indicated	All	6.46	1.27	8,229	264,570
	Total Meas & Ind	All	8.95	1.22	10,937	351,635
	Inferred	All	17.80	1.68	29,940	962,579
	Total Resources	All	26.75	1.53	40,877	1,314,214

Table II: Mineral Resource estimate for the Peerless mineralised trend. A 0.3 Au g/t cut-off has been applied for near surface less than 250 m below surface) material and a 1.5 g/t cut-off has been applied for material deeper than 250 m below surface (tonnes and element kg's have been rounded-off to the appropriate level of accuracy).

Total Opencast Mineral Resources	Pickstone Opencast Mineral Resource Tabulation at a cut-off of 0.3 g/t
	Mineral Resource Category	Reef Type	Tonnes (million)	Grade Au (g/t)	Au (kg)	Au (oz)
	Measured	Oxide	0.49	1.59	780	25,078
	Indicated	Oxide	8.68	1.08	9,391	301,928
	Total Meas & Ind	Oxide	9.17	1.11	10,171	327,005
	Inferred	Oxide	0.64	0.92	590	18,969
	Total Resources	Oxide	9.81	1.10	10,761	345,974
	Mineral Resource Category	Reef Type	Tonnes (million)	Grade Au (g/t)	Au (kg)	Au (oz)
	Measured	Fresh	0.13	6.69	870	27,971
	Indicated	Fresh	11.88	1.75	20,739	666,774
	Total Meas & Ind	Fresh	12.01	1.80	21,609	694,745
	Inferred	Fresh	8.04	1.55	12,489	401,531
	Total Resources	Fresh	20.05	1.70	34,098	1,096,276
	Mineral Resource Category	Reef Type	Tonnes (million)	Grade Au (g/t)	Au (kg)	Au (oz)
	Measured	All	0.62	2.66	1,650	53,049
	Indicated	All	20.56	1.47	30,130	968,702
	Total Meas & Ind	All	21.18	1.50	31,780	1,021,751
	Inferred	All	8.68	1.51	13,079	420,500
	Total Resources	All	29.86	1.50	44,859	1,442,250
Total Underground Mineral Resources	Pickstone Underground Mineral Resource Tabulation at a cut-off of 1.5 g/t
	Mineral Resource Category	Reef Type	Tonnes (million)	Grade Au (g/t)	Au (kg)	Au (oz)
	Measured	Oxide	-	-	-	-
	Indicated	Oxide	-	-	-	-
	Total Meas & Ind	Oxide	-	-	-	-
	Inferred	Oxide	-	-	-	-
	Total Resources	Oxide	-	-	-	-
	Mineral Resource Category	Reef Type	Tonnes (million)	Grade Au (g/t)	Au (kg)	Au (oz)
	Measured	Fresh	-	-	-	-
	Indicated	Fresh	1.70	4.85	8,243	265,019
	Total Meas & Ind	Fresh	1.70	4.85	8,243	265,019
	Inferred	Fresh	3.65	4.59	16,747	538,429
	Total Resources	Fresh	5.35	4.67	24,990	803,447
	Mineral Resource Category	Reef Type	Tonnes (million)	Grade Au (g/t)	Au (kg)	Au (oz)
	Measured	All	-	-	-	-
	Indicated	All	1.70	4.85	8,243	265,019
	Total Meas & Ind	All	1.70	4.85	8,243	265,019
	Inferred	All	3.65	4.59	16,747	538,429
	Total Resources	All	5.35	4.67	24,990	803,447
Total Mineral Resources	Pickstone Mineral Resource Tabulation at a cut-off of 1.5 g/t for UG and 0.3 g/t for opencast
	Mineral Resource Category	Reef Type	Tonnes (million)	Grade Au (g/t)	Au (kg)	Au (oz)
	Measured	Oxide	0.49	1.59	780	25,078
	Indicated	Oxide	8.68	1.08	9,391	301,928
	Total Meas & Ind	Oxide	9.17	1.11	10,171	327,005
	Inferred	Oxide	0.64	0.92	590	18,969
	Total Resources	Oxide	9.81	1.10	10,761	345,974
	Mineral Resource Category	Reef Type	Tonnes (million)	Grade Au (g/t)	Au (kg)	Au (oz)
	Measured	Fresh	0.13	6.69	870	27,971
	Indicated	Fresh	13.58	2.13	28,982	931,793
	Total Meas & Ind	Fresh	13.71	2.18	29,852	959,764
	Inferred	Fresh	11.69	2.50	29,236	939,959
	Total Resources	Fresh	25.40	2.33	59,088	1,899,723
	Mineral Resource Category	Reef Type	Tonnes (million)	Grade Au (g/t)	Au (kg)	Au (oz)
	Measured	All	0.62	2.66	1,650	53,049
	Indicated	All	22.26	1.72	38,373	1,233,721
	Total Meas & Ind	All	22.88	1.75	40,023	1,286,769
	Inferred	All	12.33	2.42	29,826	958,928
	Total Resources	All	35.21	1.98	69,849	2,245,698

Table III: Mineral Resource estimate for the Pickstone mineralised trend. A 0.3 Au g/t cut-off has been applied for near surface (less than 250 m below surface) material and a 1.5 g/t cut-off has been applied for material deeper than 250 m below surface (tonnes and element kg's have been rounded-off to the appropriate level of accuracy).

Total Opencast Mineral Resources	Pickstone and Peerless Opencast Mineral Resource Tabulation at a cut-off of 0.3 g/t
	Mineral Resource Category	Reef Type	Tonnes (million)	Grade Au (g/t)	Au (kg)	Au (oz)
	Measured	Oxide	1.22	1.17	1,428	45,911
	Indicated	Oxide	10.08	1.06	10,725	344,817
	Total Meas & Ind	Oxide	11.30	1.08	12,153	390,728
	Inferred	Oxide	0.76	0.89	679	21,830
	Total Resources	Oxide	12.06	1.06	12,832	412,558
	Mineral Resource Category	Reef Type	Tonnes (million)	Grade Au (g/t)	Au (kg)	Au (oz)
	Measured	Fresh	1.89	1.55	2 930	94,202
	Indicated	Fresh	16.92	1.63	27 599	887,328
	Total Meas & Ind	Fresh	18.81	1.62	30 529	981,530
	Inferred	Fresh	24.57	1.55	37 982	1,221,150
	Total Resources	Fresh	43.38	1.58	68 511	2,202,680
	Mineral Resource Category	Reef Type	Tonnes (million)	Grade Au (g/t)	Au (kg)	Au (oz)
	Measured	All	3.11	1.40	4,358	140,113
	Indicated	All	27.00	1.42	38,324	1,232,145
	Total Meas & Ind	All	30.11	1.42	42,682	1,372,258
	Inferred	All	25.33	1.53	38,661	1,242,980
	Total Resources	All	55.44	1.47	81,343	2,615,238
Total Underground Mineral Resources	Pickstone and Peerless Underground Mineral Resource Tabulation at a cut-off of 1.5 g/t
	Mineral Resource Category	Reef Type	Tonnes (million)	Grade Au (g/t)	Au (kg)	Au (oz)
	Measured	Oxide	-	-	-	-
	Indicated	Oxide	-	-	-	-
	Total Meas & Ind	Oxide	-	-	-	-
	Inferred	Oxide	-	-	-	-
	Total Resources	Oxide	-	-	-	-
	Mineral Resource Category	Reef Type	Tonnes (million)	Grade Au (g/t)	Au (kg)	Au (oz)
	Measured	Fresh	-	-	-	-
	Indicated	Fresh	1.72	4.81	8,278	266,146
	Total Meas & Ind	Fresh	1.72	4.81	8,278	266,146
	Inferred	Fresh	4.80	4.40	21,105	678,527
	Total Resources	Fresh	6.52	4.51	29,383	944,673
	Mineral Resource Category	Reef Type	Tonnes (million)	Grade Au (g/t)	Au (kg)	Au (oz)
	Measured	All	-	-	-	-
	Indicated	All	1.72	4.81	8,278	266,146
	Total Meas & Ind	All	1.72	4.81	8,278	266,146
	Inferred	All	4.80	4.40	21,105	678,527
	Total Resources	All	6.52	4.51	29,383	944,673
Total Mineral Resources	Pickstone and Peerless Mineral Resource Tabulation at a cut-off of 1.5 g/t for UG and 0.3 g/t for opencast
	Mineral Resource Category	Reef Type	Tonnes (million)	Grade Au (g/t)	Au (kg)	Au (oz)
	Measured	Oxide	1.22	1.17	1,428	45,911
	Indicated	Oxide	10.08	1.06	10,725	344,817
	Total Meas & Ind	Oxide	11.30	1.08	12,153	390,728
	Inferred	Oxide	0.76	0.89	679	21,830
	Total Resources	Oxide	12.06	1.06	12,832	412,558
	Mineral Resource Category	Reef Type	Tonnes (million)	Grade Au (g/t)	Au (kg)	Au (oz)
	Measured	Fresh	1.89	1.55	2,930	94,202
	Indicated	Fresh	18.64	1.92	35,877	1,153,474
	Total Meas & Ind	Fresh	20.53	1.89	38,807	1,247,676
	Inferred	Fresh	29.37	2.01	59,087	1,899,677
	Total Resources	Fresh	49.90	1.96	97,894	3,147,353
	Mineral Resource Category	Reef Type	Tonnes (million)	Grade Au (g/t)	Au (kg)	Au (oz)
	Measured	All	3.11	1.40	4,358	140,113
	Indicated	All	28.72	1.62	46,602	1,498,291
	Total Meas & Ind	All	31.83	1.60	50,960	1,638,404
	Inferred	All	30.13	1.98	59,766	1,921,507
	Total Resources	All	61.96	1.79	110,726	3,559,911

Table IV: Combined Mineral Resource estimate for the Pickstone-Peerless mineralised trends. A 0.3 Au g/t cut-off has been applied for near surface (less than 250 m below surface) material respectively and a 1.5 g/t cut-off has been applied for material deeper than 250 m below surface respectively (tonnes and element kg's have been rounded-off to the appropriate level of accuracy).

Delineation of Mineral Resource category was carried out in the first instance by recording the search volume number utilised in each block on a special run done for the purposes of categorising Mineral Resources. The first search volume demarcated a potential Measured Mineral Resource model. A search volume of 1.5 demarcated a potential Indicated Mineral Resource model and search volume greater than 1.5 demarcated potential Inferred Mineral Resources. The search volumes are based on the relevant Au (g/t) variogram model for the relevant mineralised zone or corresponding "waste" zone. The number of samples for each search volume was determined through kriging neighbourhood studies. Final classification of Mineral Resources was based on a matrix of number of samples, search volume and kriging efficiency. The cut-off's selected to declare the Mineral Resource estimates are 0.3 g/t for the Pickstone and Peerless open pitable Mineral Resources (to a depth of 250 m) and 1.5 g/t for underground Mineral resources at both the Pickstone and Peerless prospects. The cut-off's are based on a combination of economic and technical assumptions from AFCR and values that are well within accepted industry norms for narrow tabular strata-bound or shear hosted gold deposits. Tonnage has been estimated on a dry basis and been adjusted for mining voiding and geological losses. Relative density calculated from drilling and dump sampling tests has been applied in the calculation of tonnage. The Mineral Resource estimates reported in this section are based on validated data sets supplied by AFCR. The Competent Persons have verified the final composite data accepted for the estimate. All of the geological data used in the estimation process including data which determines the extent, continuity and disturbance of the mineralised horizons has been collected and collated by qualified and suitably experienced geologists, surveyors and other mineral resource practitioners employed currently and historically at the Pickstone-Peerless Project.

ExplorMine Consultants is of the opinion that the Pickstone-Peerless Project are a Mineral Resource estimate meets the requirement of "reasonable prospects for eventual economic extraction" and in ExplorMine Consultants opinion is representative of the gold mineralisation.

1.5 Conclusions and Recommendations
This CPR is intended to fulfil two basic objectives:

• To compile a JORC compliant Mineral Resource estimate for the Pickstone-Peerless Project area.  

• To guide management in the identification of potential mining and exploration target areas by providing an estimated three dimensional spatial expression to the estimated mineral resource.  

This CPR and the technical work on which it is based provide a compliant Mineral Resource estimate. An estimated three-dimensional block model has been constructed and can be used as a tool to guide future exploration and mine planning and decision making. The status of Pickstone-Peerless Project is currently an advanced exploration property and AFCR completed a Mineral Reserve estimate in December 2013 based on the ExplorMine 30 June 2013 Mineral Resource estimate. ExplorMine Consultants and AFCR geologists collectively have extensive experience in the geology of the Pickstone-Peerless Project area and Greenstone gold style of mineralisation and the estimation thereof. The estimation was based on all available exploration and mining data. A combination of recent and historic desurveyed surface drillhole intercepts, historic underground drilling and channel sampling, digitised mine development and stoping, geological mapping, trenching and detailed topography, were used in a complete first principles structural interpretation. The Mineral Resource estimate presented in this Report for the various mineralised zones for the Pickstone and Peerless trends is based on the first principles structural model and surface drillholes, underground drilling and sampling represented by electronic databases. The data was collected over a period of an extended period of time from the 1960's to present. ExplorMine Consultants has performed its own assessment and validations on primary data, and considers the validity and quality of the data to be reasonable. The data complies with acceptable standards and norms and is considered of sufficient quality for use in Mineral Resource estimates. ExplorMine Consultants has in preparation of this Report on the Mineral Resource estimate collated and compiled a single comprehensive composite database comprising all relevant data. Composite data has not been corrected for dip and therefore represents true intercept lengths. Geological modelling recognises distinct geological zones in the both the Pickstone and Peerless mineralised trends. These zones have been used as a basis for geostatistical modelling. A block modelling process was undertaken to allow estimation of the reefs and intervening stratigraphic units in CAE StudioTM. The resultant block models are designed to facilitate the use of mineral optimisation software for further Feasibility Studies. Kriging was carried out into a geological block model, which produced a spatial distribution of low and high grade in three-dimensional mineralised structural envelopes, which enables the design of open cast or underground mining. Ordinary kriging was applied to Measured, Indicated and Inferred Mineral Resource categories.

1.6 Recommendations
As a result of the block modelling and resultant Mineral Resource estimate, additional exploration targets have been recognised for both the Pickstone and Peerless trends. In terms of the Peerless mineralised trend significant potential to upgrade the Mineral resource exists at depths greater than 100 m.

The Pickstone mineralised trend has significant potential Resources greater than Level 4 below surface, in the immediately adjacent hangingwall and footwall (widths of 15 m or more) of the higher grade mineralised zone already extensively mined. Although it is known that this halo of mineralisation exists, there is little data currently defining the grade and extent (volume) of this mineralisation. The current estimate for the underground Pickstone Mineral Resource mainly defines a central core of mineralisation. ExplorMine are of the opinion that the results of the Mineral Resource estimate presented in this Report are suitable for inclusion in a Feasibility Study for the Pickstone-Peerless Project area. AFCR have plans to continue exploration on the property once funding or revenue from mining operations. Effort is being currently directed at completing Feasibility Studies on the Project.

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Source: African Consolidated Resources Plc via Globenewswire

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