Company Information for Mwana Africa plc

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Company Statement

Mwana Africa PLC is a pan-African resources company established in October 2005. It is the first African-owned, African-managed business in this sector to be listed on the London Stock Exchange’s Alternative Investments Market (AIM).

The company was formed through a reverse takeover of African Gold plc, the AIM-listed African gold exploration and mining company, by a privately held mining company, Mwana Africa Holdings (Pty) Limited.

With operations and exploration activities in Zimbabwe, and a broad range of exploration and development projects in the Democratic Republic of Congo (DRC) and Ghana, the asset base is diverse — gold, nickel, copper, zinc, cobalt and, more recently, diamonds and oil and gas. The company intends to pursue further mining opportunities across the African continent, both independently and, where appropriate, in partnership with other stakeholders.

Current Operations

DRC
Mwana's Democratic Republic of Congo exploration licenses cover approximately 13,000 km2 and contain copper, zinc, cobalt and gold.

Zani–Kodo Joint Venture
Once a camp had been established and basic field equipment brought on site, the first phase of the exploration programme got under way in September 2006 with a ground geological assessment.

A full interpretation of Landsat Satellite imagery of the entire license area identified a series of prominent structures and a first–pass target generation followed.

After a second phase of geological mapping around the Kodo Mine, an initial drilling programme was designed to test the mineralisation in the vicinity of this historical mine. Diamond core drilling started at the beginning of April 2007.
During the same month, an airborne geophysical survey of the entire license area began and was completed in May 2007. A detailed geological interpretation of the data was carried out and a series of target areas identified.

Katanga Concessions
At Kibolwe a significant secondary enriched sediment-hosted stratiform copper deposit has been identified. Mineralisation is hosted within steeply dipping Roan and Mines Sub–group rocks. The dominant copper oxide mineral is malachite with minor amounts of cuprite and tenorite which occur within argillaceous carbonate and shale units. Reverse circulation drilling programmes have outlined a number of mineralised zones. The Main Zone, which is up to 40 metres wide in places, can be traced over a strike of 1000 metres and is open–ended to the west.

Gravity Diamonds Limited
The 2007 field season aims to better constrain these high interest areas and delineate targets for drilling. Work will consist of detailed follow-up and in-fill sampling from stream sediments that drain these anomalous areas, as well as airborne geophysical surveys to acquire magnetic data that will identify possible kimberlite intrusions. Depending on the turnaround times, drilling is expected to commence in late 2007 or early 2008.

Gravity’s strong land position in the prolific Kasai Craton will supplement the attributable production from MIBA, and Gravity’s field exploration team reinforces Mwana’s expertise in project development and construction.

MIBA
In May 2006 Mwana Africa acquired Umicore’s subsidiary, Sibeka, the major asset of which was a 20% interest in MIBA, the leading diamond producer in the DRC, based in Mbuji Mayi. MIBA’s other shareholder is the government of the DRC. Mwana intends to hold negotiations with the government of the DRC, which holds 80%, to return production to optimal capacity. The technical due diligence was completed in mid 2007, and priorities for production increase identified. Funding for the project is awaited.

Kimberlite exploration
Alluvial exploration
The Badibanga Project is SouthernEra’s second alluvial project and is located some 60 km to the northwest of Mbuji-Mayi. The project is 100% owned by SouthernEra and historical information reported by Forminiere, reports on 3.49 million carats delineated within the alluvial flat system known as the "Lubi-Lukula Triangle". The deposits were never mined by Forminiere. The historical Forminiere map indicates that the average diamond grades in the alluvial flats approximate 1 ct/m3 with average grades of individual flats on the Lubi River as high as 1.7 ct/m3. The highest individual sample pit was historically documented at 10.6 ct/m3.

Ghana
Mwana has four gold properties in Ghana and a significant 250 km2 Ashanti gold belt.

Konongo
A recently completed resource evaluation for the Obenemase Sulphide deposit has outlined a JORC compliant resource of 243 000 ounces of gold in the Indicated and Inferred categories. A re-evaluation of all exploration data for the mining- and exploration areas (i.e. including the adjacent 67 sq km Kurofa concession) has identified several conceptual structural targets for small satellite deposits.

Ahanta
At Ahanta, Mwana is completing a reassessment of the new RC drilling within the context of all of the available historical data.

Zimbabwe
Mwana's exploration and production properties in Zimbabwe include high quality nickel and gold interests.

Bindura Nickel Corporation
A new concentrator designed to improve nickel recovery and reduce the talk content of the concentrate, is currently under construction. This will replace the Trojan mine concentrator which was built in the early 1970s (excessive talc has a deleterious effect on the smelter operation).

The lives of Shangani and Trojan are estimated to be around 2 and 7 years respectively. The Trojan shaft is being deepened by some 480m to access new reserves and this could extend the life-of-mine to 2018. Development of a conveyor decline has commenced at Shangani to access deeper ore on the far west ore body. This will extend the life-of-mine to 2012. Opportunities are being investigated to expand nickel refinery capacity and to re-establish the copper recovery circuit.

Hunter’s Road
An indicated resource of 33 million tonnes has been defined at an average grade of 0.5% nickel. This resource contains 165,000 tonnes of nickel and can be mined by open pit. In the first phase, a concentrator will be constructed on site to treat 60,000 tonnes of ore per month (tpm) to produce a concentrate of nickel sulphide. The concentrate will be treated at the Bindura smelter and refinery to produce slightly more than 2,000 tonnes of nickel cathode annually. Construction is scheduled start in the last quarter of 2007 with commissioning scheduled for the end of 2008.

Freda Rebecca Mine
Progress on the mine's expansion has been slower than expected largely because of the bureaucracy of the Zimbabwe investment approval system, difficulties in sourcing materials and spares, and the shortage of workers with construction skills.

The fixed gold price and currency exchange conditions since July 2006 have placed severe financial constraints on the operation and a decision to place the mine on care and maintenance has been taken. This will continue until realistic revenues are received.

Commissioning of the new and refurbished tankage should start late in the second quarter of 2007 with ramp up to 60,000 tonnes of ore per month and 4,000oz of gold per month. Should the current economic conditions persist it will be necessary to adjust the reserves statement.

Cluff Mining (Zimbabwe) Holdings Limited
Mwana Africa will assess the potential for growth in developing the near-mine resources as it also holds 100% of Cluff Mining exploration titles in the surrounding area, with significant untested targets within a 10km radius of Maligreen mine. Exploration options are under review and the objective is to start on early drilling programmes. Under the economic conditions prevailing in Zimbabwe, no investment will be made to bring the mine back into production.

Makaha Deposit
The work programme is under review. Metallurgical test work will precede a pre-feasibility study but no work was planned for 2007. With Maligreen, under the economic conditions prevailing in Zimbabwe, no investment will be made to bring the mine back into production. 

South Africa
Clifton
Mwana Africa has between 49% and 65% interest in properties within the Clifton projects. The properties are in joint venture with two Black Empowerment Consortia. A further 5% is held in trust for the relevant local community. This interest was previously held by SouthernEra.

In South Africa’s Limpopo Province, the Clifton project is located along the same structural lineament that controlled the emplacement of SouthernEra’s well known Klipspringer and Marsfontein diamond mine kimberlite cluster.

The project area consists of two Prospecting Permits measuring 1295Ha and 3586Ha which were awarded in May 2006. Reconnaissance stream sampling has thus far resulted in the discovery of probe confirmed high-interest kimberlitic indicator mineral anomalies. A helicopter-borne magnetic survey was completed in 2007 over these areas and the results are currently being evaluated. The 2008 programme will concentrate on follow-up sampling, ground-based geophysics and the drilling of selected anomalies.

Klipspringer Diamond Mine
Mwana holds 61% of the project. The interest was previously held by SouthernEra.

The Klipspringer Diamond Mine in South Africa is located 250 km north of Johannesburg and 35 km south of Polokwane, the provincial capital of the Limpopo Province. The mine is a joint venture between Mwana (61%) and Naka Diamond Mining (Pty) Ltd (“Naka”) (39%), a Black Economic Empowerment company.

At full production the mine plans to produce approximately 90 000 carats per annum and there will be a gradual increase in production during 2008 through to March 2009 when steady state production levels are envisaged. At these production rates the mine will have a life of approximately 5 years to a depth of 160m below surface (7 Level). The inferred resource below 7 Level to a depth of 500m below surface (15 Level) will provide for an additional 20 years of life. A number of alternatives to access the orebody between 7 and 15 level are currently being reviewed. The resource is open to depth below 15 level and strategy to define additional resources will be investigated in due course.

Angola
Camafuca Project
Mwana Africa holds an 18% free-carried interest in the project. This interest was previously held by SouthernEra.

Camafuca is one of the largest known undeveloped diamond-bearing kimberlite complexes worldwide and is located in the Lunda Norte Province in north - eastern Angola, 20 km southeast of the town of Lucapa. The project area covers the outcropping primary kimberlite deposits associated with the five Camafuca-Camazambo kimberlite pipes which have a combined surface area of 160 hectares.

In mid-2005, SouthernEra obtained final approval and ratification for the formation of the operating company “Camafuca - Sociedade Mineira Lda” (CSM), which has been issued the mining license for the Camafuca Project, allowing construction of the project to commence. Mining will commence once funding has been secured. The highly weathered and decomposed nature of the kimberlite will allow a low cost dredge mining operation to be employed.

Botswana
BK16
In March 2007, SouthernEra acquired a 55% interest in the BK16 kimberlite pipe located within the Orapa Kimberlite Field in Botswana. Under the agreement, SouthernEra has the right to earn up to a 70% interest in the project by funding exploration to the completion of a definitive feasibility study. This interest is currently held by Mwana Africa.

BK16 is known to be diamondiferous and was originally modeled to be 3.5Ha in size. Recently completed ground magnetometer and gravity surveys as well as drilling over BK16 suggest a larger orebody and this is being remodelled. SouthernEra completed an evaluation programme in 2007 which consisted of 19 diamond core and percussion holes totaling 2278m to establish the size of the pipe as well as the character of the kimberlite. This was followed by large diameter drilling that recovered a representative bulk sample (12.38 tons) to establish the grade and average diamond value. The results of this programme are being reviewed.

Geographical Spread

DRC, Ghana, and Zimbabwe

Board of Directors and Key Management

Oliver Baring	Executive Chairman
Kalaa Mpinga	Chief Executive Officer
Peter Sydney-Smith	Finance Director
Ken Owen	Technical Director
Stuart Morris	Non-executive Director
John Anderson	Non-executive Director
Etienne Denis	Non-executive Director

Company Address Devon House 12-15 Dartmouth Street London, United Kingdom SW1H 9BL Telephone: + 44 (0) 207 654 5580 Facsimile: + 44 (0) 207 654 5581 Website: http://www.mwanaafrica.com

Additional Address/Key Contact Johannesburg P.O. Box 2950 Parklands, 2121 11 Alice Lane Standard Bank building 3rd Floor, East Wing Sandton Johannesburg Tel: +27 11 883 9550/1 Fax: +27 11 883 9511

Capital Ordinary shares in issue; 400,433,819

Year End 31 March

Nominated Brokers Canaccord Adams Limited 7th Floor, Cardinal Place 80 Victoria Street London EC2R 6DA J P Morgan Cazenove Limited 20 Moorgate London EC2R 6DA

Nominated Advisors Canaccord Adams Limited 7th Floor, Cardinal Place 80 Victoria Street London EC2R 6DA

Major Shareholders

Midland Bank (Finch Lane) Nominees Limited	33,955,274	8.5%
Vidacos Nominees Limited	33,345,511	8.3%
Credit Suisse Securities (Europe) Limited	24,302,949	6.1%
HSBC Global Custody Nominee (UK) Limited	24,110,558	6.0%
Kalaa Katema Mukubayi Trust	19,981,415	5.0%
Mr D G K Fish	19,393,726	4.8%
State Street Nominees Limited	15,967,593	4.0%
African Mining Company Limited	13,712,736	3.4%
Nutraco Nominees Limited	12,466,431	3.1%

Related News

30/03/09 - As Zimbabawe Picks Itself Up, Mwana Africa Will Reopen Freda Rebecca And Move Rapidly To Production Of 90,000 Ounces Of Gold Per Year
23/10/08 - Mwana Africa Battens Down The Hatches And Cuts Spending, But Remains A Company With Plenty Of Value Inside It
29/07/08 - Mwana’s Directors Intervene To Support Their Share Price, But Market Regulations Don’t Make It Easy
26/06/08 - Zimbabwe’s Problems Bite Hard At Bindura, And The Worst Of All Is The Exodus Of Skills
25/04/08 - Kalaa Mpinga Talks Congo And Zimbabwe As Mwana Africa Makes Steady Progress

Most Recent Statement

13/05/09 - Sale of gold exploration assets in Ghana
25/03/09 - Intention to restart gold production at the Freda Rebecca mine in Zimbabwe
24/12/08 - Purchase of shares by Director
23/12/08 - Second Price Monitoring Extn
23/12/08 - Price Monitoring Extension
10/12/08 - Unaudited results for the six months to 30th September 2008