BNC Rights Issue and Placing Concludes

21 September 2012

Mwana Africa PLC

("Mwana", "Mwana Africa", the "Group" or the "Company")

BNC Rights Issue and Placing Concludes

Mwana Africa is pleased to announce that its Zimbabwean subsidiary Bindura Nickel Corporation ("BNC") has now completed the rights issue and placing required to recapitalise BNC and to recommence operations. BNC has agreed satisfactory terms for the settlement of creditors and of liabilities relating to the retrenchment of some employees. The recapitalisation and restructuring of BNC was completed in two steps: the rights issue closed first and was then followed by a placing, whereby certain creditors and staff accepted BNC shares in lieu of the balances owed to them by BNC. 

BNC shareholders approved the rights issue at an EGM held in Harare on 29 June 2012. New funds invested into BNC by way of the rights issue totalled US$23m, including US$21m from Mwana Africa. Liabilities of approximately US11.5m were converted into BNC shares by way of the placing. Following the rights issue and placing, Mwana now holds 926,359,603 ordinary shares in BNC.

The proceeds are sufficient to restart the Trojan Mine, although further funding will be required by BNC within approximately twelve months to provide sufficient working capital to take BNC through to being cash flow positive. Sale of first nickel concentrate is expected in approximately seven months, and BNC already has an offtake agreement in place with Glencore International for the sale of nickel concentrate from Trojan. 

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

Mwana Africa PLC Tel: +44 (0)20 7654 5580

Donald McAlister / Lorenz Werndle

Nominated Adviser and Broker

Liberum Capital Limited Tel: +44 (0)20 3100 2000

Michael Rawlinson / Tom Fyson / Christopher Kololian

Public & Investor Relations

Tavistock Communications Tel: +44 (0)20 7920 3150

Ed Portman / Simon Hudson / Mike Bartlett

About Mwana Africa PLC

Mwana Africa PLC is a pan-African, multi-commodity resources company. Mwana's principal operations and exploration activities cover gold, nickel and other base metals, and diamonds in Zimbabwe, the DRC and South Africa. Mwana was the first African owned and managed mining business to be listed on London's AIM market.

Mwana's Freda Rebecca gold mine in Zimbabwe restarted operations in 2009 and achieved its target production rate of 50,000 ounces gold per annum in 2011.

In February 2012, Mwana announced a gold mineral resource of 2.01 million ounces at its Zani Kodo project in Democratic Republic of Congo. 

In August 2012, Mwana announced it had entered into a Cooperation and Development Agreement with Zhejiang Hailiang Company Limited to jointly explore it copper license areas in the Katanga Province of the DRC.

Further information on the Company can be found at www.mwanaafrica.com.