BNC Rights Issue Update

3 September 2012

Mwana Africa PLC

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

BNC Rights Issue Update

The Board of Mwana is pleased to announce that Mwana will proceed with the underwriting of Bindura Nickel Corporation's ("BNC") rights issue. This follows a satisfactory resolution being reached by BNC, on settlement with its creditors and staff and on a retrenchment package for those staff not required for the restart. Mwana will invest US$21m into BNC through the BNC rights issue. 

On 7 June 2012, BNC, Mwana's 52.9% owned subsidiary, announced its intention to carry out a rights issue, the proceeds of which will be used to fund the restart of BNC's Trojan Nickel Mine in Zimbabwe.

BNC shareholders approved the rights issue at an EGM held in Harare on 29 June 2012. The proceeds are sufficient to restart the Trojan Mine, although further funding will be required by BNC in approximately one year's time to provide sufficient working capital to take Trojan through to being cash flow positive.

The BNC rights issue and a separate BNC creditors and staff placing will now be closed over the next few weeks and the Company will update the market on this process as appropriate.

Kalaa Mpinga, Chief Executive Officer of Mwana, commented today:

"I cannot overstate the significance of this step for Mwana, for BNC and for Zimbabwe. Agreeing terms with creditors and staff means that the rights issue can proceed and operations can restart at BNC following a long period on care and maintenance. I thank creditors, staff and BNC's management for the hard work and commitment throughout the negotiations. I would also like to thank the Zimbabwe government for its assistance and support throughout the BNC restructuring process. I now look forward to working together with all stakeholders on the restart of BNC's Trojan nickel mine."

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.