Corporate Update

Alecto Minerals plc / EPIC: ALO / Market: AIM / Sector: Exploration & Development

18 September 2012

Alecto Minerals plc ('Alecto' or 'the Company')

Corporate Update

Alecto Minerals plc, the AIM listed multi-commodity exploration and development company with projects in Ethiopia and Mauritania, announces that the Board has let its current exclusive option in respect to the 711 sq km bauxite licence 223 ('Licence 223') in south west Guinea to lapse. The Board continues to believe that Licence 223 is prospective and with this in mind, discussions between the Company and the Vendors are on-going to ensure that the terms of any potential transaction would represent value for all stakeholders. 

In particular, the Board believes that in order to progress, it needs further clarity on the licence duration and commitments with regards to development spend, especially when considering the on-going nature of the Guinean Ministry of Mine's independent audit of all mining licences. The Board also recognises the time being spent on the negotiations, which is increasingly important when considering the progress and developments being made on its existing portfolio of highly prospective assets in Mauritania and Ethiopia. With regards to these, exploration work at the Wayu Boda Gold Project in Ethiopia is on-going and trenching samples are being transported to Jeddah, Saudi Arabia for assaying. Additionally, further exploration work is due to commence at the Mauritanian iron-oxide-copper-gold licences ('IOCG') shortly. The Company will update shareholders with regards to developments across its portfolio in the near term. 

Executive Director Damian Conboy said "Whilst the Board recognises the potential of Licence 223 in Guinea, given the on-going government audit and other uncertainties relating to the acquisition, the Board is not prepared to enter into an arrangement without certainty, although we will continue to endeavour with on-going discussions. Importantly, we are focussed on maximising value for shareholders, and with our exploration programmes in Mauritania and Ethiopia now entering key phases, we will need to dedicate an increasing amount of time to advance these prospective assets."

**ENDS**

For further information, please visit www.alectominerals.com or contact:

Notes:

Alecto Minerals plc is an AIM listed exploration company focussed on Africa with a diverse portfolio of exploration assets in Mauritania and Ethiopia.

In Mauritania, it has three gold and base metal development licences totalling 1,902 sq km and two uranium licences totalling 1,592 sq km in the highly prospective Mauritanide mobile belt. It also holds the 1,953 sq km gold exploration licence in the highly prospective Aysid-Metekel region of north western Ethiopia and the 945 sq km Wayu Boda gold licence in the mineral-rich central-southern Adola greenstone belt in southern Ethiopia. 

The Company is committed to conducting exploratory work across its portfolio, designed to strengthen its knowledge of the assets and delineate targets for further exploration. In tandem, the Board continues to evaluate a number of synergistic assets to build shareholder value.