AFARAK BOARD RESOLUTION ON DIRECTED SHARE ISSUE

13:05 London, 15:05 Helsinki, 18 December 2013 - Afarak Group Plc, Stock Exchange Release

AFARAK BOARD RESOLUTION ON DIRECTED SHARE ISSUE

Further to the announcements of 8 November 2013 and 10 July 2013 and in accordance with Finnish Regulations, the Board of Afarak Group Plc ("Afarak" or the "Company") (LSE: AFRK, OMX: AFAGR) has, on 18 December 2013 resolved to offer five million (5,000,000) new ordinary shares in the Company ("New Shares") to Sail Resources Pte at a subscription price of EUR 0.45 per share, (approximately 0.38 pence per share), a 20,16 per cent. premium to the three month volume weighted average price as at 18 December 2013. The New Shares represent approximately 2.01 per cent of the current issued share capital and approximately 2.05 per cent of the total voting rights of the Company prior to the share issue. The Board of Directors of the Company has received a subscription commitment pursuant to which Sail Resources Pte will subscribe for all offered Shares.

Under the terms of the directed share issue scheme, the New Shares are offered in derogation of the pre-emptive subscription right of shareholders and Board approval of the share issue is pursuant to the authorisation granted by the Annual General Meeting to the Board of Directors 8 May 2013.

The subscription period for the New Shares commences on immediately and continues until 18 January 2014. The subscription price shall be paid by 31 January 2014 at the latest. Subject to the receipt of funds the New Shares are expected to be registered with the Finnish Trade Register in February 2014. The subscription price will be recognized under the invested unrestricted equity fund. Application for the listing of the New Shares will also be made to all the relevant authorities in February 2014. The Company will announce the exact dates in due course. The New Shares carry shareholder rights as of the registration date with the Finnish Trade Register and will rank pari passu with the Company's existing issued ordinary shares.

Following completion of the directed share issue, the total amount of shares in issue will be increased by 5,000,000 from 248,432,000 to 253,432,000 shares, 4,244,717 ordinary shares are held in treasury.

AFARAK GROUP PLC
BOARD OF DIRECTORS

For additional information, please contact:

Afarak Group Plc
Danko Koncar, CEO, [phone],  [e-mail]

Investec Bank Plc
Jeremy Wrathall, [phone]

Afarak Group is a chrome mining and minerals producer focused on delivering sustainable growth with a speciality alloys business in southern Europe and a ferro alloys business in southern Africa. The Company is listed on NASDAQ OMX Helsinki (AFAGR) and the Main Market of the London Stock Exchange (AFRK).
www.afarakgroup.com

Distribution:
NASDAQ OMX Helsinki
London Stock Exchange
main media
www.afarakgroup.com

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Source: Afarak Group via Globenewswire

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