AGM Statement

AGM Statement

Armadale Capital Plc

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

22 June 2015

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

AGM Statement

Armadale, the AIM quoted investment company focused on natural resource projects in Africa, will hold its Annual General Meeting (‘AGM’) today at 11am at 55 Gower Street, London WC1E 6HQ. At the AGM, the Company will make the following statement, highlights of which are below:

Highlights:

• Mpokoto is a low capex, low opex commercial gold mining project; established a resource of 678,000 oz Au from 14.58 million tonnes ore at 1.45 g/t Au
• Mpokoto boasts a NPV of US$55.3m based upon on a forecast gold price of US$1,250/oz and a discount rate of 8%
• Heads of Terms Agreement with the Africa Mining Contracting Services group (‘A-MCS’) to fund, develop, construct and operate Mpokoto
• US$20 million of proposed financing to advance Mpokoto into production to commence in H1 2016

AGM Statement

“2014 has been a transformational year where we have focussed on advancing our flagship Mpokoto Gold Project in the Katanga Province of the Democratic Republic of Congo (‘Mpokoto’ of the ‘Project’) into production, which is now scheduled for H1 2016.

“Mpokoto has always demonstrated its significant intrinsic value as a low capex, low opex commercial gold mining project; we have already established a resource of 678,000 oz Au from 14.58 million tonnes ore at 1.45 g/t Au and on a forecast gold price of US$1,250/oz the Project boasts a NPV of US$55.3m based upon a discount rate of 8%. Indeed, even at US$1,100/oz, the NPV of the Project is attractive at US$32.3m, which set against our current market cap of US$5.16m the Directors believe highlights how undervalued our Company currently is.

“In order to realise this value, a key requirement was to secure a development partner and finance, and so we were delighted to sign Heads of Terms Agreement with the Africa Mining Contracting Services group (‘A-MCS’) to fund, develop, construct and operate Mpokoto. Under the terms of this landmark agreement, A-MCS agreed in principle not only to build the mine but also introduce at least US$20 million of financing to advance Mpokoto into production which, as mentioned, is targeted to commence in H1 2016.

“Mpokoto is expected to produce approximately 25,000 oz per annum over a nine year life of mine based on the current resource and at a cash cost of US$647/oz. Importantly there is also significant further upside; Mpokoto has an exploration target of 2.4-3.0 million tonnes grading 1.25-1.5 g/t Au, which should yield an additional 120,000-150,000 oz Au, and the Project is part of a substantial 800,000 hectares area yet to be explored.

“Having acquired the Project in November 2013, Armadale has rapidly advanced Mpokoto. With significant progress toward financing, four Mining Licences valid for an initial term of 30 years (from 30 September 2014), and an established team in place, Armadale has a clear line of sight to commercial production. With this in mind, the next 6-12 months are expected to be extremely active in developments and newsflow, and we remain committed to keeping our shareholders updated with this progress.

“Finally, we would like to take this opportunity to thank our team for all their hard work, and shareholders for their continued support, as we work towards realising our first commercial production in H1 2016 for the benefit of all.”

**ENDS**

Enquiries:	Â	Â
				Â
Armadale Capital
Charles Zorab, Company Secretary			[phone]
Nomad and broker: finnCap Limited
Stuart Andrews			[phone]
Christopher Raggett
				Â
Joint broker: VSA Capital Limited
Bhavesh Patel/Richard Buckle			[phone]
				Â
Press relations: St Brides Media & Finance Ltd.
Susie Geliher			[phone]
Charlotte Heap

Notes

Armadale Capital Plc is focussed 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 is focused on 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 gold (‘Au’) from 14.58 million tonnes (‘Mt’) @ 1.45g/t Au at a cut-off grade of 0.5g/t. The Company has recently announced the results of an Expanded Scoping Study for Mpokoto which 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, which aims to develop profitable operations in South Africa through the briquetting and sale of coal fines in KwaZulu Natal, as well as a number of other quoted investments.

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

View source version on businesswire.com: http://www.businesswire.com/news/home/20150621005009/en/