Placing to Raise £4.7 million

African Consolidated Resources plc / Ticker: AFCR / Index: AIM / Sector: Mining
                                  21 June 2011
          African Consolidated Resources plc ('ACR' or the 'Company')
         Placing to Raise £4.7 million to Advance Gadzema Gold Project

African  Consolidated  Resources  plc,  the  AIM-listed southern African focused
resource  development  company,  is  pleased  to  announce  that  it  has placed
78,334,000 shares  at a  price of  6 pence per  share (the  'Placing Shares') to
raise gross proceeds of £4.7 million.

The  Company will make an  announcement of the issue  of the Placing Shares once
the  placing is completed save only for admission.  The Placing Shares will rank
pari passu in all respects with the Company's existing ordinary shares in issue.

Following admission of the Placing Shares to trading on AIM, the Company's total
issued  share capital will  be 453,336,451 ordinary shares.   The Placing Shares
will  represent approximately  17% of the  enlarged issued  share capital of the
Company.

Background to and Reasons for the Placing

ACR  has  over  12 key  projects  covering  gold,  nickel,  platinum, copper and
phosphate  and is focussed on developing  these assets up the development curve.
 The Company's key projects include:

Gadzema Gold Project
The  Gadzema Gold Project ('Gadzema') is  located on a 30km Greenstone Belt with
900 registered  historical workings, and has a current JORC resource of 912,000
troy  ounces of gold ('troz  Au').  ACR controls the  greater part of a total of
10km of   this   Greenstone   Belt   of   which   some   8km exhibits  extensive
mineralisation.   ACR's Gadzema project area also includes the Giant Mine, which
has  had past production of 560,000troz Au at  grades of in excess of 8g/t until
the mine's collapse and closure in 1967.

The Company has completed some 25,000 metres of drilling since May 2010.  A JORC
resource upgrade was published in June 2011 and a further upgrade is expected in
July  2011, which is  expected to  take Gadzema's  JORC resource  to a  level in
excess of 1 million troz Au.  The Company has a longer term target of defining a
JORC resource in excess of 2 million troz Au by December 2012.

Pickstone-Peerless Gold Project
The  Pickstone-Peerless Gold Project ('Pickstone-Peerless') is a brownfield site
with  past  production  in  excess  of  400,000troz Au, which has a current JORC
compliant  resource of 513,000troz Au, including  63,000troz Au of tailings.  An
internal  feasibility study  has demonstrated  the potential  for near-term cash
flow  from 28,000troz of  sulphide high  grade tailings,  and the metallurgy and
design  is now  complete.  The  site also  benefits from a partially constructed
plant  and the infrastructure is near  completion.  In addition further elements
of  the plant  have been  constructed by  the TWP  Investment Ltd  Group ('TWP')
pursuant  to a tolling agreement with the Company which was aborted as explained
in  an announcement  of 9 June  2010, and discussions  are in  process about the
possible  purchase of this plant  from TWP.  The study  results showed that $7.5
million  and a  six month  development schedule  would be  required to bring the
sulphide  tailings dump  into production  and a  projected EBITDA of $18 million
over a 13 month project life was estimated.  The internal feasibility study also
covered  Phase 1 of developing the main mining operation towards production, and
demonstrated  that the capital  injection of $7.5  million for the sulphide dump
would  also  leave  the  main  mining  project  largely funded.  The Company are
currently  in discussions with several  parties regarding a strategic investment
into  the Pickstone-Peerless  project, and  it is  hoped that indigenous capital
would be utilised.

Additional Projects

The Company's other key projects include:

  * Perseverance  Nickel  Sulphide  Project:  a  sulphide-rich body with a 30km
    strike - down-hole EM commenced
  * Chishanya   Rock  Phosphate  Project:  first  phase  drilling  completed  on
    carbonatite complex and flotation analysis pending
  * Great  Dyke PGM  Project: exploration  drilling to  define resource drilling
    targets to commence once EIA is completed
  * Zambian  Rare  Earth  Elements  ('REE')  and  Iron-Ore-Copper-Gold  ('IOCG')
    Projects:  joint venture agreement  signed on REE  project and core and rock
    chip   analysis  results  showed  4% to  22% TREO.   IOCG  target  currently
    undergoing geophysics and exploration holes being drilled
  * The Chakari Gold Project & additional Greenfield and brownfield sites


Zimbabwe

The  Company, or  its predecessor,  has operated  in Zimbabwe since 2003 and the
Company  has  built  strong  local  relationships  and  a first-mover advantage.
 However operating in Zimbabwe does pose unique challenges due to the improving,
yet  still uncertain,  political stability  of the  country.  The  use of the US
dollar  and ability to sell gold at the international spot price prices continue
to  improve the working and economic environment in Zimbabwe.  However a lack of
clarity  regarding  the  indigenisation  legislation  as promulgated on 25 March
2011 has  proved problematic for all  mining and development companies operating
in  the country.  In the case of ACR it has been advised that the 25 March 2011
Regulation  does not  affect the  Company at  present as  all of  its Zimbabwean
subsidiaries  companies  are  in  exploration  phase  financed by loans from the
parent  company and so individually all have a  net asset value of less than one
dollar.   As developments regarding this legislation are released, ACR will keep
shareholders abreast of any material disclosures which may affect the Company.

Financial Overview

Year End 31 March 2011 - Summary:
+----------------------------------------------------------------+----------+
|Exploration costs                                               |$5,507,338|
+----------------------------------------------------------------+----------+
|Administrative costs (includes $232,185 of share option expense)|$3,844,408|
+----------------------------------------------------------------+----------+
|Loss for the period                                             |$3,803,177|
+----------------------------------------------------------------+----------+
|Cash at year end                                                |$4,913,173|
+----------------------------------------------------------------+----------+

Notes:
The  above numbers are provisional and subject to confirmation in the release of
final results for the year ended 31 March 2011.
There  are 1 million outstanding options remaining for gold acquisition, with an
exercise price of 7 pence.
28 million  options  with  exercise  prices  between  12 pence and 18 pence will
expire in June; no further Board options outstanding thereafter.
An  issue of 25 million options with an  exercise price of 10 pence is dependent
on a successful resolution of issues relating to the Marange diamond asset.

Cash Position & Use of Proceeds

Cash reserves:

+------------------------------------------------------------------+----------+
|Projected Cash Balance as at 1 August 2011 (before Placing funds) |$2,240,000|
+------------------------------------------------------------------+----------+
|Gross Proceeds of Placing                                         |$7,500,000|
+------------------------------------------------------------------+----------+
|Cost of Placing                                                   |  $320,000|
+------------------------------------------------------------------+----------+
|                                                                  |          |
+------------------------------------------------------------------+----------+
|NET AVAILABLE FUNDS AUGUST 2011 (post Placing and cost of Placing)|$9,420,000|
+------------------------------------------------------------------+----------+

The  majority  of  the  proceeds  will  be  used  to fund the Company's on-going
exploration  programme with  the greater  part of  that being  used to  fund the
Gadzema Gold Project drilling programme and ground consolidation.

Use of funds through to July 2012:
+-------------------------------------------------------------------+----------+
|Gadzema drilling and assay                                         |$3,560,000|
+-------------------------------------------------------------------+----------+
|Ground consolidation - acquisition costs in Gadzema Gold Belt      | $400,000 |
+-------------------------------------------------------------------+----------+
|Perseverance Nickel Sulphides - limited drilling and detailed      | $300,000 |
|geophysics                                                         |          |
+-------------------------------------------------------------------+----------+
|Zambian Iron Oxide Copper Gold - geophysics, exploratory drilling, | $300,000 |
|ground consolidation                                               |          |
+-------------------------------------------------------------------+----------+
|PGM projects - drilling and geophysics                             | $350,000 |
+-------------------------------------------------------------------+----------+
|Other commitments including phosphate metallurgy and tenure        | $940,000 |
|protection                                                         |          |
+-------------------------------------------------------------------+----------+
|Working capital; overhead; Pickstone mine-build project management |$3,570,000|
|/ cash reserve                                                     |          |
+-------------------------------------------------------------------+----------+
|Total                                                              |$9,420,000|
+-------------------------------------------------------------------+----------+
Note EXCLUDES projected cash flow from 2012 gold production

Issue of Warrants

13,125,000 of  the Placing  Shares were  placed with  investors in  Canada ('the
Canadian Placing Shares'). The arrangement of this tranche of the Placing Shares
was  co-ordinated  by  PowerOne  Capital  Markets  Limited ('PowerOne'), who, on
admission, will receive in return:
  * 6% of the gross proceeds raised from Canadian subscribers in cash and
  * warrants  over  787,500 shares  in  the  Company  (being  equal to 6% of the
    Canadian Placing Shares) ('the Warrants').

Each Warrant shall entitle PowerOne to acquire one ordinary share of the Company
at  an  exercise  price  of  6 pence  per  share  for a period of two years from
admission.

Director Participation

  * Stuart Bottomley, Director of the Company, purchased 750,000 Placing Shares
  * Julian Emery, Director of the Company, purchased 166,700 Placing Shares


The  Directors'  resultant  holdings  following  the  above  transactions are as
follows:

+------------------+-----------------+------+---------------------+------+
| Director         | Ordinary Shares |    % | Outstanding Options |    % |
+------------------+-----------------+------+---------------------+------+
| Stuart Bottomley |       4,876,000 | 1.08 |           2,650,000 | 8.3% |
+------------------+-----------------+------+---------------------+------+
| Julian Emery     |         166,700 | 0.04 |                   - |    - |
+------------------+-----------------+------+---------------------+------+

The  holdings shown in the table above do not include interests over Shares held
through contracts with the Company's Employee Benefit Trust.

Roy  Tucker, Chairman of ACR, said, "We are pleased to announce the £4.7 million
Placing  that will allow the Company to  strengthen its working capital and cash
positions  and  to  continue  developing  the  highly  promising Gadzema site in
accordance  with  our  long  term  strategy.   We are delighted to have received
significant  demand for the Placing Shares  both from our existing investor base
and from new shareholders in the UK and in Canada."

Expected timetable of principal events

Applications  will be made for  the Placing Shares to  be admitted to trading on
the  Alternative  Investments  Market  of  the  London Stock Exchange (together,
'Admission').  It is expected that Admission will take place at 8.00 a.m. on 27
June 2011.

                                    **ENDS**

For further information visit www.acrplc.com or please contact:
 Roy Tucker          African Consolidated Resources plc   [phone]

 Andrew Cranswick    African Consolidated Resources plc   [phone]

 Andrew Godber       Panmure Gordon (UK) Limited          [phone]

 Callum Stewart      Panmure Gordon (UK) Limited          [phone]

 Abhishek Majumdar   Panmure Gordon (UK) Limited          [phone]

 Susie Geliher       St Brides Media & Finance Ltd        [phone]








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Source: African Consolidated Resources Plc via Thomson Reuters ONE

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