98.2% Purity Achieved from Bulk Test Work at Ma...

98.2% Purity Achieved from Bulk Test Work at Mahenge Liandu

Armadale Capital Plc

Armadale Capital Plc / Index: AIM / Epic: ACP / Sector: Investment Company

2 January 2018

Armadale Capital Plc (‘Armadale’ or ‘the Company’)

98.2% Purity Achieved from Bulk Test Work at Mahenge Liandu

Armadale, the AIM quoted investment company focused on natural resource projects in Africa, is pleased to announce positive results from test work completed on a bulk sample from the Mahenge Liandu Graphite Project in Tanzania (‘Mahenge Liandu’).

Overview

• ~5.5kg of high purity graphite concentrate produced from a 30kg bulk sample which was representative of a larger 187.7kg sample from Mahenge Liandu
• Excellent flake distributions confirmed with 48.2% in the high value Large, Jumbo and Super Jumbo categories
• Very high purity achieved averaging 98.2% Total Graphitic Content (‘TGC’)
• Concentrate will be used for further downstream test work and for samples to be sent to prospective off-take partners
• JORC Resource modelling is ongoing and expected to be completed in January 2018
• Drilling and Resource modelling is focused on upgrading the current Resource Category from Inferred to Indicated to support feasibility studies
• An RC drilling programme aimed at significantly increasing the size of the deposit is planned for Q2 2018
• Feasibility study to commence in 2018, directly following completion of the scoping study in early 2018, with the objective of reaching a decision to mine in the near term

Nick Johansen, Director of Armadale said: “ Our work programme to deliver a commercially attractive and economically robust graphite project continues to go from strength to strength. The high purity concentrates achieved from this bulk sample certainly highlight the attractive metallurgy of this sizeable project, and coupled with the near surface mineralisation, which is contained within one contiguous ore body, I am confident that the results of the upcoming scoping study will provide investors with a tangible insight into the commercial and strategic value of our project. I look forward to providing updates in the coming weeks regarding the scoping study and feasibility study, which is fully funded thanks to the financing agreement secured in Q4 2017.

“2018 is set to be a transformative year for Armadale as we set our sights on fast tracking Mahenge Liandu towards a decision to mine.”

Bulk Sample Test Work Programme Completed

Bulk sample test work programme has now been completed with approximately 5.5kg of graphite concentrates produced. The results confirm that high quality graphite concentrates can be produced using a conventional flotation circuit. Previous test work has confirmed that the concentrates from the project are readily upgraded to suit the rapidly expanding lithium-ion and expandable graphite markets. Now that larger quantities of concentrates are available Armadale will progress further downstream test work and provide samples to potential off-take partners.

Table 1 Bulk sample concentrate flake size distribution and purity

Flake size	Â	Distribution %	Â	Purity % TGC
500	Â	3.8	Â	98.2
300	Â	20.9	Â	98.2
180	Â	23.5	Â	98.2
150	Â	18.3	Â	98.5
106	Â	13.0	Â	98.7
75	Â	8.5	Â	98.6
25	Â	8.0	Â	98.1
-25	Â	3.9	Â	95.7

The information communicated in this announcement contains inside information for the purposes of Article 7 of the Market Abuse Regulation (EU) No. 596/2014.

**ENDS**

Enquiries:	Â	Â	Â
Armadale Capital Plc Tim Jones, Company Secretary				[phone]
Nomad and broker: finnCap Ltd Christopher Raggett / Simon Hicks				[phone]
Joint Broker: Beaufort Securities Limited Jon Belliss				[phone]
Press Relations: St Brides Partners Ltd Susie Geliher / Charlotte Page				[phone]

Notes

Armadale Capital Plc is focused on investing in and developing a portfolio of investments, targeting the natural resources and/or infrastructure sectors in Africa. The Company, led by a team with operational experience and a strong track record in Africa, has a strategy of identifying high growth businesses where it can take an active role in their advancement.

The Company owns the Mahenge Liandu graphite project in south-east Tanzania, which is now its main focus. The Project is located in a highly prospective region with a high-grade JORC compliant inferred mineral resource estimate of 40.9Mt @ 9.41% TGC. At least 32Mt of this resource has an average grade of 10.47% TGC, one of the largest high-grade resources in Tanzania, and work to date has demonstrated Mahenge Liandu’s potential as a commercially viable deposit with significant tonnage, high-grade coarse flake and near surface mineralisation (implying a low strip ratio) contained within one contiguous ore body.

Other assets Armadale has an interest in include the Mpokoto Gold project in the Democratic Republic of Congo and a portfolio of quoted investments.

More information can be found on the website www.armadalecapitalplc.com

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