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MANDARIN MINING PLC (MANP)

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Monday 17 October, 2011

MANDARIN MINING PLC

Option & Loan Agreement



MANDARIN MINING PLC
OPTION AND LOAN AGREEMENT

Mandarin  Mining Plc ("the Company") is pleased to announce that it has been granted, for consideration  of
USD  1, an option (the "Option") to acquire 66.66% of the entire share capital of Cairo Investments Limited
("Cairo"), a BVI company.

The  Directors understand that Cairo has entered into a conditional subscription agreement to subscribe for
30%  of  the  enlarged capital of Rusinko Pte Ltd ("Rusinko"), a company incorporated  in  Singapore.   The
subscription agreement is subject to satisfactory due diligence by Cairo.

The Option, which expires on 31 December 2012, gives the Company the right to purchase 66.66% of the entire
share capital of Cairo, for GBP 180,000.

Rusinko,  which was established in 2010, has filed a patent for a technology which, through  thermal  pulse
treatment,  may  increase  the  productivity of low producing oil wells by, according  to  claims  made  by
Rusinko's  management,  up to two times. It is in the form of a device that utilizes  a  high  energy  non-
detonating  composite mixture, in order to produce an implosion that generates very high heat,  but  for  a
very short period of time. Your board has been advised that the treatment may last up to 2 years and can be
deployed with standard drilling equipment without the use of chemicals.

A  condition of the option agreement is that the Company provide Cairo with a loan of GBP 52,000 which will
be  used by Cairo to carry out due diligence on Rusinko and if appropriate, to subscribe for shares in  the
capital  of  Rusinko. The loan has a term until 31 December 2012 and carries interest at 5% per annum.  The
loan is secured upon the shares of Cairo.

Until  the  results of the due diligence exercise are considered the Company is unable to  provide  further
information at this stage regarding the potential of this opportunity. As developments occur we will update
the market accordingly.

The Directors of the Company accept responsibility for this announcement.

FOR FURTHER INFORMATION PLEASE CONTACT:

Fook Meng Chan
Mandarin Mining plc
Tel:  00 65 6236 2985

Nick Michaels
Alfred Henry Corporate Finance Limited
www.alfredhenry.com
Tel: +44 (0) 20 7251 3762

17 October 2011

MANDARIN MINING PLC

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