Developed Process Route for Gold Recovery follo...

Developed Process Route for Gold Recovery following Metallurgical Testwork

Armadale Capital Plc

3 August 2015

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

Developed Process Route for Gold Recovery following Metallurgical Testwork

Armadale, the AIM quoted investment company focused on natural resource projects in Africa, is pleased to announce that a review of metallurgical testwork has supported the development of a planned process route for gold recovery at the 678,000oz Mpokoto Gold Project in the Katanga Province of the Democratic Republic of the Congo (“Mpokoto” or the “Project”). A production rate of approximately 25,000oz Au per annum over an initial nine year life of mine is targeted to commence at the Project in H1 2016, with an average projected operating cost of US$647/oz.

As part of the Definitive Feasibility Study (‘DFS’) for Mpokoto, the Company has completed a review of all previous metallurgical testwork. The evaluation encompasses all historic testwork going back to 2005, through to the most recent gravity and leaching testwork produced by Peacock and Simpson in 2015. Based on the review and recent results Armadale has selected a process route for the first phase of the Project:

• Phase 1, when the majority of the ore feed is weathered and deeply oxidised: the plant will consist of scrubbing, milling, a batch Knelson concentrator to recover the free gold, and flotation of the Knelson tailings. The flotation concentrate will be intensively cyanided.
• Phase 2, as the amount of weathered ore decreases and the proportion of transitional and fresh ore increases: a regrind ball mill will be added to grind the flotation concentrate and a Carbon-In-Leach (‘CIL’) circuit will be added to leach the flotation tailings.

Recoveries of between 88% and 90% are expected on the weathered ore and 84% on the transitional and fresh ore, prior to the CIL circuit being added. During the DFS further testwork will be completed to determine the effect of adding the CIL circuit to the treatment of transitional and fresh ores.

Dr Andrew Tunks, the newly appointed Director of Armadale, said, “Settling on a final process route for the Mpokoto gold project is another significant step forward in the development path of our low CAPEX, low OPEX operation. With drilling on track to commence imminently to add additional tonnages to the current Project resource of 678,000oz and an agreement in place with Africa Mining Contracting Services (‘A-MCS’) to fund develop, construct and operate Mpokoto, the Project is rapidly progressing towards first gold production in 2016. We look forward to providing further updates on these developments in due course.”

**ENDS**

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

Company

Justin Lewis, Director [phone]

Charles Zorab, Investor Relations

Nomad and broker: finnCap Limited

Christopher Raggett/Simon Hicks [phone]

Joint Broker: Beaufort Securities Ltd

Jon Bellis [phone]

Press relations: St Brides Partners Ltd

Hugo de Salis/Charlotte Heap [phone]

Notes

Armadale Capital Plc is focused on investing in and developing a portfolio of investments, targeting the natural resources sector 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. Armadale’s primary project is the development of the Mpokoto Gold project in the Democratic Republic of the Congo, in which it owns an 80% interest. Mpokoto has a current Total Mineral Resource of 678,000 oz Au from 14.58 Mt @ 1.45g/t Au at a cut-off grade of 0.5g/t. An Expanded Scoping Study for Mpokoto demonstrated a post-tax net present value of US$55.3m based upon a discount rate of 8% and a gold price of US$1,250/oz. The Project is subject to four Mining Licences which are valid for an initial term of 30 years from 30 September 2014. Armadale also currently holds approximately a 30% interest in Mine Restoration Investments Ltd, a South African listed company, focused on the briquetting and sale of coal fines in KwaZulu Natal, as well as a number of other quoted investments.

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