Excellent Test Results for Mahenge Liandu Graph...

Excellent Test Results for Mahenge Liandu Graphite Concentrate

Armadale Capital Plc

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

21 April 2017

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

Excellent Test Results for Mahenge Liandu Graphite Concentrate

Armadale, the AIM quoted investment company focused on natural resource projects in Africa, is pleased to announce that test work results received from graphite concentrate samples underpin the commercial viability of graphite mineralisation at the Mahenge Liandu Project in Tanzania (‘the Project’). The results of the test work confirm the expandability of the graphite mineralisation at the Project, which increases the range of potential commercial applications, including the highly prospective battery market. The Project has a high-grade JORC compliant inferred mineral resource estimate of 40.9Mt @ 9.41% Total Graphitic Content (‘TGC’), of which at least 32Mt has an average grade of 10.47% TGC.

Highlights:

• Test work conducted in Germany has returned encouraging results with expansion up to 480 cm³/g
• All size fractions above 75 µm showing expandability over 170 cm³/g
• Results underpin the Project’s ability to produce high quality, commercial graphite concentrates which should be suitable for a number of applications
• Ongoing test work to upgrade the purity of the graphite is underway
• Preparations for a 2,500m diamond and Reverse Circulation drill programme are well advanced with drilling expected to commence in early May 2017 – the drilling programme is intended to expand the size of the resource and enhance the category to Indicated

Nick Johansen, Director of Armadale said, “We continue to make excellent progress in proving up the commercial viability of Mahenge Liandu and this test work marks another step in the right direction. With expansion of up to 480 cm³/g achieved, we are pleased to confirm that our graphite concentrate is suitable for use in the expandable graphite market for all size fractions above 75 µm which is a significant achievement given that a recent 10kg sample contained over 92% of graphite 75 µm and above in size. Our focus is now on proving up the purity of the concentrate and building upon the resource size and quality. With this in mind we look forward to updating the market on our upcoming drill programme in due course.”

Further Information

Initial expandability test work was conducted on a 150g sample of graphite concentrates from the Mahenge Liandu Project. The results show encouraging expandability, especially in the larger size fractions including 480 cm³/g > 500 µm, 420 cm³/g for > 500 µm and 380 cm³/g> 180 µm. The results for all size fractions are shown in Table 1 below at two different temperatures that were used.

Table 1 Results of expandability test work at 800 °C and 1000 °C

Flake Size (µm)	Â	Expansion Volume at 800 °C	Â	Expansion Volume at 1000 °C
> 500 µm		440 cm³/g		480 cm³/g
> 300 µm		370 cm³/g		420 cm³/g
> 180 µm		300 cm³/g		380 cm³/g
> 106 µm		210 cm³/g		230 cm³/g
> 75 µm		165 cm³/g		170 cm³/g
< 75 mesh		Â		115 cm³/g

Expandable Graphite

Expandable graphite is made by heating graphite concentrates to cause the graphite crystals to split into graphene layers into an expanded or “fluffy” form. The expanded graphite is then rolled into continuous sheets which have excellent conductivity and thermal dissipation properties.

Expandable graphite is essential in the manufacture of:

• Graphite foils used in electronics products for heat dissipation
• Graphite foil used in high-temperature applications such as gaskets and thermal barriers
• Thermal insulation with flame retardant properties
• Fire retardant paints

The graphite concentrate used to produce the expandable graphite was primarily medium to large flake with 85.2 % in the >106 µm. The flake size distribution is shown in Table 2 below;

Table 2 Flake size distribution of graphite concentrate used in the test work

Size fraction (µm)	Â	Size fraction %
> 500		9.80%
> 300		15.50%
> 180		35.10%
> 106		24.80%
> 75		6.40%
< 75		8.40%

Conclusion

Initial test work continues to indicate the Mahenge Liandu Project is capable of producing high quality graphite concentrates. A more detailed metallurgical test work programme will be conducted as part of the upcoming exploration programme.

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**

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

Enquiries:	Â
Armadale Capital Plc Nick Johansen		[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.

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