3rd Quarter Operations and Exploration Update

16 February 2015 Mwana Africa PLC ("Mwana", the "Group" or the "Company") Operations and Exploration Update Mwana Africa is pleased to provide an update on its operations and explorationactivity for the third quarter ending 31 December, 2014 (Q3 2015). OPERATIONAL HIGHLIGHTS GOLD - FREDA REBECCA (ZIMBABWE) Gold production decreased by 14% to 14,298 ounces from 16,555 ounces (Q2 2015)despite greater mill throughput Tonnes milled rose by 0.8% to 322,216t (Q2 2015: 319,767t) against the backdropof a 1.8% increase in mill throughput made possible by the partial pre-crushingof feed material Tonnes mined were reduced as production was focused on accumulated orestockpiles from the two previous quarters The average feed grade was 16% below the feed grade for Q2 2015 as the mainproduction stopes posted lower than expected grades Gold recovery rate fell to 78% (Q2 2015: 80%) as the plant had to cope with alow-quality replacement carbon batch which resulted in gold being lost throughfine carbon and being passed to tailings. The defective carbon batch hassubsequently been replaced Cash costs for the quarter under review increased by 27% to US$1,118/oz fromthe September quarter's US$880/oz as a result of the 14% decrease in goldproduction and a 10% increase in operating costs All-in sustaining costs rose by 23% to US$1,304/oz quarter-on-quarter fromUS$1,061/oz in September. Royalties for the quarter decreased by 37% due tolower gold production and to lower royalty rates introduced in October.However, the benefit was countered by an increase in operating costs mainly dueto mill shell realignments and clutch replacement costs being realised NICKEL - TROJAN NICKEL MINE (ZIMBABWE) Nickel in concentrate production was 30% lower at 1,383t in the Decemberquarter (Q2 2015: 1,989t), as a result of fewer tonnes of ore milled, a lowerhead grade and reduced recoveries. The reduced production is partlyattributable to the ongoing refurbishment programme referred to below Equipment taken out for the refurbishment exercise alongside ongoingmaintenance reduced resources available for mining development which in turnrestricted access to massives. This resulted in a 23% drop in mill head grade.Recoveries were 2% lower than in the September quarter as a result of the lowernickel head grade Magnesium oxide concentrate content was reduced and was within thespecifications of the Glencore off take agreement Nickel sales were 31% lower quarter-on-quarter from 2,008 tonnes to 1,395tonnes as a result of lower production volumes Cash costs and all-in sustaining costs both increased by 17% on a per tonnebasis quarter-on-quarter as a result of the reduced nickel production. Therefurbishment programme on the mobile equipment continued in the quarter.However, these costs should start reducing in Q4 2015 as the programme reachesits conclusion New mobile plant equipment has been purchased and this, together with theequipment that has been refurbished, will enable mining to start ramping up tosteady state monthly targets during Q4 2015 NICKEL - BINDURA SMELTER AND REFINERY (ZIMBABWE) Work has continued on the smelter re-start with the delivery of the furnacebricks expected during Q4 2015 Manufacturing of key components for the Electrostatic Precipitator is atvarious stages. The ductings from converters to the ESP mixing chamber will bedelivered this month. The ESP inlet and outlet transition pieces will bedelivered at the same time The main component of the cooling system (Evapco cooling tower) has beenmanufactured and is ready for shipping to site Hardware for the control and instrumentation system is on order. Softwareprogramming for the Hatch furnace controller will commence during Q4 2015 The removal of the old feed system has been completed as well as the oldconverter to ESP ductings. The furnace to ESP ducting has also been removed inpreparation for installing new units Rewinding of two of the four furnace transformers is underway and completion isexpected in April 2015 Most key members of the project team are now in place Bindura Nickel Corporation commenced marketing of a US$20 million bond inDecember 2014. The bond has a 5-year term with a 10% semi-annual coupon rate The closure date for the bond has been extended at the request of prospectivebond holders to 27 February 2015 DIAMONDS - KLIPSPRINGER (SOUTH AFRICA) Throughput of Marsfontein fine residue tailings increased toalmost 50,000tonnes during the quarter, an increase of 13% on the previous quarter Head grade was lower due to planned mining through a low-grade area in October2014 Diamond sales were up quarter-on-quarter from 23,150 to 44,200 carats withthree sales taking place during the period. The sales increase was largely dueto disposals from stocks accumulated at end-September Prices per carat of US$19.31, were lower due to a greater proportion of smallergems in the product mix Difficult marketing conditions are expected for the first half of 2015 The application for the renewal of mining rights continues EXPLORATION HIGHLIGHTS GOLD - ZANI-KODO (DEMOCRATIC REPUBLIC OF CONGO - DRC) District scale exploration has continued but no drilling was carried out Our resource estimates remain unchanged COPPER/COBALT - SEMHKAT/HAILIANG JV (DRC) Drilling of five priority targets was completed in November and cores deliveredto the laboratory for assay Once the results have been received the next drilling phase will be planned Kalaa Mpinga, CEO of Mwana, commented: "The third quarter of the 2015 financial year, the three months that ended inDecember, was a particularly challenging period. "The nickel price decreased by 15% during the December quarter to US$15,867/t(Q2 2015; US$18,592/t). Although gold's price fell to an average of US$1,195/ozin the December quarter, the gold price has somewhat recovered in the firstmonth of calendar 2015 and I remain confident in both metals' longer-termfuture. "At Trojan, the refurbishment programme continued. This, in turn, led to slowerdevelopment rates than earlier envisaged, affecting access to the massives andtheir higher grades. With most of the equipment now onsite, the availabilityissue will be addressed in the next quarter whilst also having a positiveimpact on costs. BNC launched a bond to restart the smelter and I am pleased with the progresson the restart project. "Despite this challenging period, we remain confident of Mwana's growthprospects. The Group's cash balance as of 31 December 2014 was US$5.5 million." Mwana contact details For further information contact: Mwana Africa PLCKalaa Mpinga, CEO Tel: + 44 (0) 203 696 5470Caroline Mathonsi, Investor RelationsNominated Adviser and BrokerPeel Hunt LLPMatthew Armitt / Ross Allister Tel: +44 (0) 20 7418 8900Public RelationsRussell and AssociatesJim Jones/Leigh King Tel: +27 (0) 11 880 3924 OPERATIONS GOLD - FREDA REBECCA GOLD MINE (ZIMBABWE) Quarter ending FREDA REBECCA Jan-15 Dec - 14 Sept - 14 Jun-14 Mar-14 Tonnes mined (t) 62,393 269,085 290,771 370,755 282,078 Tonnes milled (t) 93,415 322,216 319,767 263,531 279,879 Head grade (g/t) 1.66 1.89 2.25 2.07 1.91 Recovery (%) 79.8 77.5 80.0 76.8 83.0 Gold produced (oz) 4,002 14,298 16,555 13,503 13,380 Average gold price (US$/oz) 1,304 1,195 1,272 1,296 1,303received Cash Cost (US$/oz) 1,254 1,118 880 1,078 1,060 All-in sustaining cost (US$/oz) 1,481 1,304 1,062 1,283 1,331 Figures shown are unaudited and may vary upon final audit. Gold ounces producedincorporate gold released from or caught in 'lock-up' for each period. Cash cost per ounce sold includes costs for mining, processing, administration,accounting movements for stockpiles and gold-in-circuit, and, net proceeds fromby-product credits. It excludes capital costs for exploration, mine developmentor processing mill capital works, and, the cost of royalties. All-in sustaining cost reflects cash costs per ounce sold plus depreciation andamortisation, thus incorporating the capital cost of production, plus interest,other indirect costs and royalties. All-in sustaining cost represents all costsattributable to gold production over the period. COMMENTARY The mill running hours remained stable even though the heavy rains resulted in211 hours downtime due to power issues. The stability is as a result ofimproved maintenance and the continuous improvements to the mill realignment asreported last quarter. The introduction of pre-crushed feed material has seenan increase in mill throughput. Mining and milling grades were affected by the need to mine through a zone oflower grade ore in the new main stope as per the mine plan. The major stopereported last quarter had a zone which intersected low grades requiring to beworked through the production sequence. The lower grade was compensated for toan extent by increasing mining in minor higher-grade stopes. The situationshould end once the lower-grade ore has been worked through and operations canbe resumed according to the mining plan during Q4 2015. Mill recoveries were briefly affected by poor quality carbon being deliveredfor the leach process. The problem was rectified as soon as it was noticed, butthe result was that some gold passed through the leach process to the slimesdam. These challenges resulted in lower gold production quarter-on-quarter and this,in turn, contributed to higher unit costs per ounce of gold. Modifications to the tailings retreatment plant to treat the run of mine oreremain under consideration. Gold production for January 2015 was 4,002 ounces and tonnes milled were 93,415tonnes. Production was affected by lower running hours and mill throughput asthe alignment work continued on Mill 2. The average feed grade was lower at1.66g/t as a result of the major stope intersecting a low grade zone. Cash andall-in sustaining costs for the month were US$1,254/oz and US$1,481/oz due tothe lower production. All-in sustaining costs were US$1,481/oz. The focus remains on grade control, mill throughput and alignment improvementsarising from the introduction of partial secondary crushing and gold delivery.Management expect to start seeing a positive response to the grade by the endof February by introducing identified higher grade and remain confident in thegrade recovery.. Management forecast production of approximately 14, 000 oz for Q4 with goldproduction for FY15 in line with production recorded for FY14. Cost control at Freda Rebecca remains a management priority. The Company has ashort term overdraft facility of $4 million to cover short term working capitalrequirements. NICKEL: TROJAN NICKEL MINE (ZIMBABWE) Quarter ending TROJAN MINE Jan - 15 Dec-14 Sep-14 Jun-14 Mar-14 Tonnes mined (t) 43,447 155,129 160,741 155,610 161,964 Tonnes milled (t) 39,904 148,712 161,107 148,882 153,451 Head grade (% Ni) 1.250 1.156 1.496 1.519 1.621 Recovery (%) 81.7 80.5 82.5 84.1 88.8 Nickel in concentrate (t) 407.6 1,383 1,989 1,902 2,207 Nickel sales (t) 426.9 1,395 2,008 1,871 2,250 Average nickel price (US$/t) 14,875 15,867 18,592 17,745 14,075 Off take opportunity cost included Cash cost (US$/t) 16,617 16,214 13,900 13,750 11,333 All-in sustaining cost (US$/t) 17,456 17,039 14,566 14,776 12,220 Off take opportunity costs excluded @ 65% payability Cash cost (US$/t) 11,410 10,666 7,392 7,454 8,498 All-in sustaining cost (US$/t) 12,147 11,491 8,059 8,480 9,329 Figures shown are unaudited and may vary upon final audit. Average nickel price represents the average LME nickel price utilised under theterms of the Glencore off-take contract. Under the terms of the offtakeagreement, BNC is entitled to a defined percentage of the value of nickelcontained in concentrate. Therefore, as the nickel price rises, both revenueand costs attributable to the agreement increase. Cash cost per tonne includes costs for mining, processing, administration,off-take costs and penalties, transport costs, accounting movements forstockpiles, and net proceeds from by-product credits. It excludes capital costsfor exploration, mine development or processing mill capital works, and, thecost of royalties. All-in sustaining cost reflects cash cost per tonne plus depreciation andamortisation, thus incorporating the capital cost of production, plus interest,other indirect costs and royalties. All-in sustaining cost represents all costsattributable to nickel production over the period. COMMENTARY At Trojan, the refurbishment programme had not been completed by the quarterclose as a result of lower than anticipated dump truck availability for bothmassives transportation (production/grade) and waste movement (development).New dump trucks have been delivered to the mine along with a support,production and face rig with an LHD and an additional production rigoutstanding. The major reason for the lower recovery and the decrease in head gradequarter-on-quarter was attributable to the challenges experienced with miningequipment - a combination of rigs, LHDs and dump trucks - resulting in limitedmassives extraction. Management expects Trojan's production rate to steadily increase to its optimalsustainable level in February and March as the injection of new and refurbishedequipment takes effect. Forecast annual nickel sales for the financial year 2015 are expected to endthe year in line with the prior year During January, the mine milled 39,904 tonnes of ore to produce 427 tonnes ofnickel in concentrate. Recoveries and grade showed an improvement in January of8.1% and 1.5% respectively, compared to the December quarter. Cash costs were US$16,617 per tonne (inclusive of the off take opportunitycost) during the first two months whilst all-in sustaining costs have averagedUS$17,456 per tonne over the same period. Costs exclusive of the off take costswere US$11,410 and US$12,147. BNC has secured a short-term overdraft facilityof US$7 million with a local financial institution which is being utilised forbridging finance for the long lead equipment orders required for the smelterproject and short-term working capital. Management anticipates that all-insustaining costs will recover in Q4, providing the nickel price remains atapproximately US$15,000 per tonne. Diamonds - Klipspringer (South Africa) Quarter ending KLIPSPRINGER MINE Jan 2015 Dec-14 Sep-14 Jun-14 Mar-14 Tonnes treated (t) 11,022 49,939 44,200 40,350 16,000 ROM diamonds produced (carats) 7 120 31,850 32,425 23,710 14,150 Head grade (cpht) 64.6 63.8 73.3 58.8 88.4 Recovery (%) 99.7% 99.7% 98.4% 99.6% 99.8% Diamond sales (carats) Nil 44,200 23,150 15,960 12,860 Average diamond price (US$/ct) US$19.50 US$19.31 US$20.93 US$20.00 US$21.03 commentary The KSR Project produced steadily during the onset of the rainy season. Monthlyproduction increased from 14,700 tpm during the second quarter to 16,600 tpmfor the current reporting period. Diamond production fell slightly below second quarter production. This was dueto mining a lower grade area in October. Mining this area was necessary tocater to final rehabilitation plans and to ensure that the higher grade areascloser to the dam wall could be mined safely due to the wet weather conditions. The rough diamond market prices softened during the quarter by between 7.5% to10% globally. The main reasons for this are: liquidity constraints in the market global demand weakening relative oversupply of diamonds throughout the distribution chain Three diamond sales took place during the quarter. One parcel was sold locallywhilst the other two were exported to Antwerp for sale. The average sellingprice for the three parcels was US$19.31 per carat, down just over 7% from thesecond quarter prices. The KJV share of the revenue for the quarter was US$56,500. A bulk sample of the lower slimes dams was completed during December. The fineresidue tailings contained in these dams originate from the Leopard fissure.Results from the bulk sample will be available in the next quarter and willinform a decision on whether it is economically feasible to mine them in asimilar manner to the existing operation. It is planned to take a representative bulk sample of the Klipspringer coarsetailings dump during the next quarter. The bulk sample will be treated andevaluated during Q4 2015. Production throughput of Marsfontein fine residue tailings (slimes) at theKlipspringer Mine was sluggish due to the shutdown over the December holidays Head grade was 65 carats per hundred tons (cpht), in line with results achievedin the previous quarter No diamond sales took place during the month. An offer to purchase the currentstock at US$19.50 was accepted Tough marketing are conditions expected to endure for the first half of 2015.The price received for fine diamonds produced by the mine during the quarterfell by 7% Water which caused the shaft bottom to flood on 26 December has been cleared In January, diamond production was in line with the previous quarter's results.At the end of January a serious incident involving an armed attack on ourdiamond export resulted in the loss of 655 carats. The diamond market is cautious as trading has stalled on the back of lowerlevels of consumer demand. Dealers are reluctant to buy if they can't sell andIndia has cut production by approximately 30%. Under existing market conditionsreceiving an offer of US$19.50 per carat for our current stock is pleasing. Dewatering operations have cleared the shaft bottom of excess water. Earlyindications are that the water did substantial damage to stopes on 5 and 6level and this will impact on the mine restart operations. Treatment of the bulk sample from the lower slimes dams has been delayed due tothe security incident reported earlier. This step was necessary whilst theCompany reviews procedures and investigates the incident. Bulk sampling of the Klipspringer coarse tailings dump has been deferred to the2016 financial year. Work on this project is expected to start in April 2015. EXPLORATION GOLD - Zani-Kodo (dEMOCRATIC REPUBLIC OF CONGO - drc) District-scale exploration is continuing. This has produced some interestingmineralisation indications, in particular in the Godawizi area, where broadzones of sulphide-bearing silicification and quartz veining with a NW-SEorientation similar to known mineralised structures have been identified. No exploration drilling was carried out during H1 FY2015 and consequently therehave been no additions to the existing 2.975Moz gold resource estimate. Subarea Cut off (g/t) Category Tonnes (t) Grade (g/t) Au (oz) Kodo Main 0.5 Indicated 4,799,487 3.63 560,075 0.5 Inferred 10,330,969 3.52 1,169,000 Lelumodi 0.5 Indicated 1,118,644 2.06 74,260 0.5 Inferred 8,154,092 1.81 475,072 Lelumodi North 0.5 Inferred 1,150,062 2.34 86,589 Badolite 0.5 Inferred 2,806,940 2.34 211,010 Zani Central 0.5 Inferred 9,683,455 1.28 398,894 TOTAL 38,043,649 2.43 2,974,900 COPPER - HAILIANG JV, KATANGA 2014 drilling programmes on 5 Priority 1 targets were completed at the end ofNovember A total of 7,044.92 meters core drilling was done ALS South Africa confirmed the reception of all samples, and assay results arepending A focus of the quarter was on data compilation of 2014 exploration results,preparatory for work proposals for 2015 ABOUT MWANA AFRICA Mwana Africa PLC is a pan-African, multi-commodity mining and developmentcompany. Mwana's principal operations and exploration activities cover gold,nickel, copper and diamonds in Zimbabwe, the Democratic Republic of Congo (DRC)and South Africa. Includes 4,673 carats of unsold diamonds (stock)

Adjusted for acid loss