Q1 Operational Update

AIM: KEFI

1 April 2014

                               KEFI Minerals Plc                               

                           ("KEFI" or the "Company")                           

                         Quarterly Operational UPDATE                          

KEFI Minerals, the AIM-quoted gold and copper exploration and development
company is pleased to release its first Quarterly Operational Update.

The Company is now in a period of transition as it changes its focus from
exploration to development and production as a result of the recently acquired
interest in the Tulu Kapi project which complements our existing successful
venture in Saudi Arabia.

This Operational Update covers the period from 1 January 2014 to 31 March 2014
and encompasses the activities of two joint venture companies managed by KEFI
Minerals, 75%-owned KEFI Minerals (Ethiopia) Limited (KME) (formerly called
Nyota Minerals (Ethiopia) Limited) and 40%-owned Gold & Minerals Llc Limited (G
&M).

HIGHLIGHTS

The Democratic Republic Of Ethiopia

Tulu Kapi gold project, Western Ethiopia - KME

  * Following the acquisition of 75% of KME on December 29, 2013, the project
    camp was immediately re-opened and personnel mobilised to start community
    engagement and refinement of site development planning.
   
  * Trenching commenced in February to aid geological structural
    interpretation.
   
  * Refinement of the Definitive Feasibility Study (DFS) to reactivate the
    Mining Licence Application (MLA) has begun. The application process had
    been suspended by former management and the authorities would like to see
    the application reactivated as soon as possible.
   
  * In March, the JORC-compliant Mineral Resource estimate was updated, which
    increased the Indicated category resource by 65% to 1.88Moz Au, for a total
    resource of 2.05Moz Au.
   
  * A two month drilling programme is now underway and KME formally engaged
    independent consultants for Stage 1 of modifying the DFS to suit the
    anticipated 1.2Mtpa production rate at higher grades than historically
    planned.
   
The Kingdom of Saudi Arabia

Jibal Qutman Project, Saudi Arabia - G&M

  * Drilling continued throughout the quarter and mineralisation remains open
    in three of the five adjacent open pits included in the mineral resource.
    (Please refer to a map on the Company's website at www.kefi-minerals.com/
    projects/saudi-arabia/jibal-qutman).
   
  * In February, G&M updated JORC-compliant Mineral Resources to 495Koz Au.
   
  * In March, completed the Preliminary Feasibility Study (PFS) and draft MLA
    for review by G&M before submittal to the authorities.
   
Corporate

  * Directors approved the Business Plan targeting earliest development of
    profitable production from Tulu Kapi and Jibal Qutman, combined with an
    ambitious exploration programme focused within the Arabian Nubian Shield
    (ANS).
   
  * Development Finance scenarios outlined to potential project financiers in a
    process which will intensify in Q3-2014 targeting non-binding detailed
    terms sheets by year-end 2014.
   
  * VAT liability settled with Ethiopian Government with an agreed 3-year
    payment schedule.
   
  * Incentive Options Plan updated and allocations made aggregating 5.4% of
    issued shares.
   
Jeff Rayner, Managing Director of KEFI Minerals, commented:

"We are pleased to be advancing development planning within the highly
prospective Arabian Nubian Shield.

We have a number of milestones ahead for the year, targeting the re-activation
of Tulu Kapi's MLA in 2014 and the start of construction in 2015. In Saudi
Arabia, Jibal Qutman project is equally important although its timeline is less
clear pending refinement of technical studies after regulatory reviews.

We appreciate the support of premier investment institutions Odey Investments
and Standard Life in such a challenging time in capital markets. It is clear
that our increased focus on development and production, made possible with the
acquisition of Tulu Kapi, has the potential to provide worthwhile returns to
shareholders and benefit all stakeholders."

HISTORY

KEFI Minerals was admitted to AIM in December 2006 and has, since then,
examined many acquisition opportunities and exploration targets in various
countries around the Mediterranean, Middle East and Africa. Its focus has
settled on the Arabian Nubian Shield and, more particularly on its development
projects in Ethiopia and Saudi Arabia together with the surrounding exploration
portfolio.

ETHIOPIA

Tulu Kapi project

We now have 47 personnel in Ethiopia, almost all based at Tulu Kapi camp site.
Consultations with regulatory authorities have been both efficient and
constructive. Milestones for 2014 are expected to include:

  * Q2-14:
   
 
      + TK field results, re trenching and drilling
       
      + Initial Reserve Update after preliminary production plan revision
       
      + DFS scope settled: DFS final contracts awarded under refined production
        plan
       
  * Q3-14:
   
  
      + Resources & Reserves completion after KEFI trenching and drilling
       
      + DFS progress reports
       
      + Project Finance non-binding detailed terms sheets
       
  * Q4-14:
   
  
      + DFS signed-off and MLA re-activated
       
SAUDI ARABIA

Jibal Qutman

The recently completed PFS identified the preferred option for project
development, including mine access, mining method, processing method and
infrastructure requirements. The preliminary starter-plan studies have, for the
time being, focused on minimum production of circa 32,000oz pa Au from mining
and processing 1Mtpa for 9 years grading 1.1g/t Au, based on:

  * Geological review and a JORC standard mineral resource estimate,
   
  * Metallurgical testing,
   
  * Process design and preliminary engineering details suitable for cost
    estimation of the project to within +/- 25% accuracy,
   
  * Detailing of all labour requirements and mine and plant consumables, in
    order to confirm the estimated operating costs,
   
  * Preliminary reviews by independent specialist consultants.
   
PFS financial modelling demonstrates a profitable operation with Opex under
$700/oz Au and total costs (including Capex and closure) under $1,000/oz Au.
This would improve if ongoing drilling continues to expand mineral resources
and, in due course, establishes the requisite ore reserves.

Milestones for 2014 are expected to include:

  * Q2-14:
   
  
      + MLA submitted after review and refinement with authorities
       
      + Drilling results
       
  * Q3-14:
   
   
      + Project Finance non-binding indicative terms sheets
       
      + Drilling results
       
  * Q3/4-14:
   
  
      + DFS triggered
       
      + Drilling results
       
Other Licences

In Ethiopia, there are 5 licences adjacent to Tulu Kapi, some with encouraging
historical results. Fieldwork has commenced under KME and some inherited
licence renewal issues need resolution with the authorities where appropriate
to protect tenure.

In Saudi Arabia there are 3 granted licences other than Jibal Qutman and 23
exploration licence applications have been made on behalf of G&M by local
lead-partner ARTAR. The granting of exploration licences in Saudi Arabia
involves extensive community and regulatory consultation with a view to making
for a smoother process during the potential development phase. G&M is one of
the few private sector minerals parties to have been granted exploration
licences in the past two years. Some of our applications are at advanced stages
and we are also discussing with the authorities the appropriateness of
prioritising applications in the vicinity of Jibal Qutman.

Milestones for 2014 are expected to include results from fieldwork on licences
in both Ethiopia and Saudi Arabia. As a result of KEFI Minerals' recently
enlarged portfolio, the Company is reviewing its exploration priorities in
consultation with the respective regulatory authorities to best serve the two
development projects and the policy priorities of the jurisdictions we operate
in. Shareholders will be advised of these priorities in due course.

Enquiries

                                                                               

KEFI MineralsPlc

Jeffrey Rayner [phone]

Fox-Davies Capital

Simon Leathers [phone]

Bishopsgate Communications

Nick Rome/Anna Michniewicz [phone]

References in this announcement to exploration results and mineral
resourceshave been approved for release by Mr. Jeffrey Rayner. Mr Rayner is a
geologist and has more than 25 years' relevant experience in the field of
activity concerned. He is a Member of the Australasian Institute of Mining and
Metallurgy (AusIMM) and has consented to the inclusion of the material in the
form and context in which it appears.

Further information on KEFI is available at www.kefi-minerals.com

KEFI operates in Ethiopiaand Saudi Arabia

In December 2013, KEFI Minerals acquired 75% of Tulu Kapi licence in western
Ethiopia and intends to refine the development plan for the project, aimed at
reducing the previously planned capital and operating expenditure.

KEFI is now positioned as an operator of two advanced gold development projects
within the highly prospective Arabian-Nubian Shield, with an attributable
1.73Moz of JORC-compliant mineral resource plus significant resource growth
potential. By 2017, the aggregate estimated production at these projects
attributable to KEFI could exceed 80,000oz pa Au, generating cash flows for
further exploration and expansion as warranted, recoupment of development costs
and, when appropriate, dividends to shareholders.

In 2009, KEFI formed the Gold and Minerals Joint Venture ("G&M") in Saudi
Arabia with local Saudi partner Abdul Rahman Saad Al-Rashid & Sons Company
Limited ("ARTAR"), to explore for gold and associated metals in the Arabian
Shield. To date, the G&M has lodged 23 Exploration Licence Applications, of
which four have been granted. KEFI is advancing its Jibal Qutman project
through Pre-Feasibility Study with a view of applying for its first mining
licence.

The Kingdom of Saudi Arabia has instituted policies to encourage minerals
exploration and development and KEFI Minerals supports this priority by serving
as the technical partner within G&M. ARTAR also serves this Government policy
as the major partner in G&M, which is one of the early movers in the modern
resurgence of the Kingdom's minerals sector.

                                    -Ends-