MOU for the Development of Pickstone Peerless G...

African Consolidated Resources plc / Ticker: AFCR / Index: AIM / Sector: Mining
14 July 2010
          African Consolidated Resources plc ('ACR' or 'the Company')
            MOU for the Development of Pickstone Peerless Gold Mine

African  Consolidated Resources plc, the AIM listed resource development company
focussed  in  Zimbabwe  is  pleased  to  announce  that  it  has  entered into a
memorandum  of understanding ('MOU'), subject to  due diligence, with a group of
individuals known as the SSSB Group, for the development of its gold property at
the Pickstone Peerless mine ('the Mine').

The SSSB Group comprises a number of highly experienced mining experts with many
years  of  international  experience  in  senior  executive positions with major
international  mining companies.  In particular, the  SSSB Group has a wealth of
operational  experience  in  Africa,  including  Zimbabwe,  where they have been
instrumental  in the  success of  a variety  of gold,  nickel, copper, platinum,
chrome and coal operations.

The  MOU at  this stage  concerns the  intended development  of open  pit mining
operations  at Pickstone Peerless and excludes the sulphide dump resource, where
the  possibility exists to establish  a tailings retreatment operation.  Further
to  ACR's announcement of  9 June 2010 regarding delays  in the establishment of
such  an operation under  an agreement with  TWP Investments (PTY),  ACR and the
SSSB Group will evaluate potentially mutually beneficial arrangement that can be
made  for the SSSB Group's involvement in the exploitation of the sulphide dumps
resource.

Subject  to the completion  of due diligence,  ACR and the  SSSB Group intend to
enter  into a legally binding project agreement  containing the key terms as set
out in the MOU as soon as possible ('the Project Agreement').  The main terms of
the MOU applicable, after normal suspensive conditions relating to due diligence
have been fulfilled, are:

·                     The whole of the Mine apart from the Sulphide Dump will be
transferred  to a jointly owned structure ('JOS')  under which ACR will own 40%
and the SSSB Group 60%

·                     The SSSB Group will at  its cost prepare a Pre Feasibility
Study ('PFS') on the Mine

·                     Should the PFS indicate an internal rate of return ('IRR')
for  the  SSSB  Group  of  at  least  30% then  the  SSSB Group will undertake a
Definitive Feasibility Study ('DFS') at its cost

·                    If the DFS indicates an IRR for the SSSB Group of less than
30% then  the SSSB Group has the option not  to proceed in which case the entire
shareholding of the SSSB Group in the JOS falls back to ACR without cost to ACR

·                     If the DFS indicates an IRR for the SSSB Group of at least
30%, the  SSSB Group will arrange funding for  the project of up to $50 million,
without  dilution to ACR's interest in the JOS, of which up to 65% may be raised
by  interest bearing project finance or shareholder loans with the balance being
in equity

·                     If funding is required in  excess of $50 million then 90%
will  be raised  by the  SSSB Group  and 10% by  ACR, if  ACR is to maintain its
equity interest in the JOS.  If ACR elects not to do this its equity in JOS will
be reduced to 30%

·                     If at any stage  after the DFS has  indicated an IRR of at
least  30% and in the SSSB Group's opinion  the project is not feasible then the
SSSB  Group's  funding  may  cease  and  ACR  will  have an option for 90days to
purchase  the  SSSB  Group's  equity  in  the  JOS at the SSSB Group's cost plus
interest

·                     When there  is positive  cash flow,  50% of available cash
flow  before servicing or repaying any external  debt will in the first instance
be allocated to repay the accumulated spend to date by ACR and spend by the SSSB
Group pursuant to the MOU on a pro rata basis

·                     In order to align objectives the SSSB Group will be issued
share options in ACR, which will be defined in a more detailed project agreement
('Project Agreement') which is to be prepared as soon as possible

·                    The SSSB Group will have a pre-emptive right with regard to
any  future ACR gold project along the Gadzema Belt (located approximately 30km
north  of the Pickstone Peerless mine) on the same terms as contained in the MOU
or as superseded by the Project Agreement

Andrew  Cranswick, CEO  of African  Consolidated Resources  plc said, "I am very
bullish  about the  upside for  gold prices  internationally, and  thanks to the
Zimbabwe  Government's forward-thinking  rationalisation of  the gold sector, we
can  help the country build  a world-class industry around  this metal.  The MOU
signed  last week takes another  step along the road  in building that dream and
what's  more, it is an  important milestone in the  road to extracting value for
our shareholders.  The model is in line with our long-term mining strategy and I
believe  that this particular partnership could prove a long and rewarding one.
We  have a high degree of  confidence in the skill sets  that have come on board
and  I expect  to bring  more good  news to  the market  in this regard over the
coming years."

                                    **ENDS**

For  further information visit www.acrplc.com <

http://www.acrplc.com/> or please
contact:
Andrew Cranswick                    African    Consolidated [phone]
                                    Resources plc

Roy Tucker                          African    Consolidated [phone]
                                    Resources plc           [phone]

Richard Greenfield                  Ambrian        Partners [phone]
                                    Limited

Hugo de Salis                       St   Brides   Media   & [phone]
                                    Finance Ltd

Susie Callear                       St   Brides   Media   & [phone]
                                    Finance Ltd







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