Corrected Update September 2014 Quarter

This version replaces the version released at 07.00 this morning 20 October, 2014 Mwana Africa PLC ("Mwana", the "Group" or the "Company") Quarterly Operations and Exploration Update - September 2014 Quarter Mwana Africa is pleased to provide an update on operations and explorationactivity for the second quarter ending 30 September, 2014 (Q2 2015). Operational HIGHLIGHTS GolD - Freda Rebecca (Zimbabwe) * Gold production rose by 23% to 16,555oz, against 13,503oz in the previous quarter as a result of improvements in feed grade, recovery and milled tonnes * Tonnes milled rose by 21.3% to 319,768t (Q1 2015 263,531t) and the average feed grade was 9% higher at 2.25g/t (2.07 g/t in Q1 2015) * Feed grade improved as the main production stopes were fully available and intersected expected grades * Gold recovery for the quarter was 4.2% higher at 80% compared to 76.8% in Q1 2015 * Cash costs for the quarter under review fell 18% to US$880/oz from US$1,078 /oz in Q1 2015, whilst all-in sustaining costs decreased by 17% from US$1,283/oz in Q1 2015 to US$1,061/oz in Q2 2015 demonstrating the mines capability to remain profitable in a lower gold price environment * The average gold price received during the period was 2% lower at $1,272/ oz, (Q1 2015 $1,296/oz) NICKEL - TROJAN NICKEL MINE (ZIMBABWE) * Nickel in concentrate production 5% higher at 1,989t (Q1 2015 1,902t) due to a 3% increase in the tonnes mined to 160,741 tonnes from 155,610 tonnes from the previous quarter as the refurbishment of equipment programmes was completed * Head grade 2% lower at 1.496% (Q1 2015 1.519%) due to the temporary mining of lower grade massive ores in accordance with BNC's mine plan * Recoveries down 2% to 82.5% (Q1 2015 84.1%) * Nickel sales 7% higher at 2,008t (Q1 2015 1,871t) * Cash costs increased by 1% to US$13,900/t (Q1 2015 US$13,750/t) and all-in sustaining costs decreased by 1% to US$14,566/t (Q1 2015 US$14,776/t) * The operation's return to profitability has allowed us to reverse previous provisions for deferred tax of $4 million for the 6 months to September, carried in the accounts as an asset. The reversal is an accounting adjustment with no cash flow impact. * 5% increase in average nickel price received to US$18,592/t (Q1 2015 US$17,745/t) NICKEL - BINDURA SMELTER AND REFINERY(ZIMBABWE) * Post the approval to restart the smelter, preparatory work is progressing well with the core project team in place * Key equipment orders and contracts have been made including for the control and instrumentation, the furnace off gas system, converters, the precipitator overhaul, furnace and converter bricks, transformer inspection, cleaning and testing, cooling system coolers, engineering design and project support and converter repairs * The submission to the Environmental management authority EMA will be made during October 2014 * Financing discussions are advancing in relation to the smelter. Diamonds - Klipspringer (South Africa) * Retreatment of the Marsfontein fine residue tailings (slimes) at the Klipspringer Mine has produced 32,850 carats (Q1 2015 23,750 carats) during the quarter, an increase of 38% on the previous quarter * An average price of $21 per carat was achieved during the quarter * Latest diamond sale covers 70% of mine care and maintenance costs * Steady-state production continues and efforts to increase the DMS feed rate are being investigated EXPLORATION highlights GOLD - Zani-Kodo (dEMOCRATIC REPUBLIC OF CONGO - drc) * Kodo footwall resource conversion drilling programme completed and 26koz of near surface, open-pittable mineralisation converted to indicated status Copper/cobalt - SEMHKAT/Hailiang JV (dEMOCRATIC REPUBLIC OF CONGO - drc) * The 2014 exploration programme is underway, with eight drill rigs operating on several targets * On the Kawesitu licence visible mineralisation was intercepted over considerable widths, and at Niton, measurements have confirmed the presence of copper * Detailed results will be reported as soon as assay results have been received and processed Kalaa Mpinga, CEO of Mwana, commented: "We have continued to invest in making our operations more stable and are nowdemonstrating the positive impact of that investment. Arguably, the mostimportant decision has been to begin the process of restarting the Bindurasmelter at a cost of $26.5 million. The smelter is set to be restarted in H12015 and will produce nickel leach alloy. At Trojan we continue to ramp up to steady state production, the tonnage minedincreased as a result of the refurbishment programme which which is expected tobe completed in December 2015. At the Freda Rebecca gold mine, gold production increased quarter on quarterwith higher grades of ore drawn from underground and the mill throughput beingaugmented by the processing of surface material. The modifications implementedin the previous quarters appear to be bearing fruit and we look forward tomaintaining a more consistent operating performance in the coming quarters. Recovery of diamonds from tailings continues to generate cash flows thatsignificantly contribute to the Klipspringer mine's continuing care andmaintenance programme. In the DRC gold resources have been reclassified atZani-Kodo while copper/cobalt exploration is gaining momentum at the Semhka/Hailiang joint venture. Overall the Company remains cashflow positive and continues to make encouragingprogress and we look forward to building on this momentum in the thirdquarter." For further information please visit www.mwanaafrica.com or contact: Mwana Africa PLC Tel: +44 (0) 20 7654 5580Kalaa Mpinga, CEOCaroline Mathonsi, Investor Relations Nominated Adviser and Broker Tel: +44 (0) 20 7418 8900Peel Hunt LLPMatthew Armitt / Ross Allister Public Relations Tel: +27 (0) 11 880 3924Russell and AssociatesJames Duncan OPERATIONS GOLD: Freda rebecca gold mine (Zimbabwe) Quarter ending FREDA REBECCA Sep-14 Jun -14 Mar-14 Dec-13 Tonnes mined (t) 290,771 370,755 282,078 217,287 Tonnes milled (t) 319,767 263,531 279,879 258,184 Head grade (g/t) 2.25 2.07 1.91 1.89 Recovery (%) 80.0 76.8 83.0 84.9 Gold produced (oz) 16,555 13,503 13,380 13,072 Average gold price ($/oz) 1,272 1,296 1,303 1,255received Cash cost ($/oz) 880 1,078 1,060 1,066 All-in-sustaining cost ($/oz) 1,061 1,283 1,331 1,291 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 Gold production rose by 23% to 16,555oz, against 13,503oz in the previousquarter. Tonnes milled rose by 21.3% to 319,767t in Q2 2015 (Q1 2015: 263,531t)due to a 14.4% increase in mill running hours and a 2.3% increase in thethroughput rate. The increase in running hours resulted from improvedmaintenance and the benefits of full shell relining completed on mill 2 in theprevious quarter. The average feed grade was 9% higher at 2.25g/t (2.07 g/t in Q1 2015). Q2 2015feed grade improved as the main production stopes were fully available andposted expected grades. During the current (third) quarter a greater focus onthe main producing stopes is expected to restore underground ore production tothe levels prevailing before the past quarter's decline. Gold recovery for the quarter under review was 3.2% higher at 80% compared to76.8% in Q1 2015. However the plant recovery was below its planned 83% for mostof the quarter as tank 0, the pre-aeration tank was not available. The tankbreak-down has been addressed with the necessary repairs carried out and theproblem should not be experienced in the current quarter. Cash costs for the quarter under review decreased to US$880/oz from US$1,078/ozin Q1 2015 as a result of the 23% increase in gold production. This increasedgold output meant that fixed cost overheads could be spread over a greaternumber of ounces. Consequently, all-in sustaining costs decreased by 17% fromUS$1,282/oz in Q1 2015 to US$1,061/oz in Q2 2015. NICKEL: TROJAN NICKEL MINE (zimbabwe) Tonnes mined (t) 160 741 155 610 161 964 159 600 Tonnes milled (t) 161 107 148 882 153 451 133 221 Head grade (%) 1.496 1.519 1.621 1.730 Recovery (%) 82.5 84.1 88.8 87.5 Ni in cons (t) 1 989 1 902 2 207 2 016 Nickel sales (t) 2 008 1 871 2 250 2 651 Average nickel price ($/t) 18 592 17 745 14 075 13 870 Cash cost ($/t) 13 900 13 750 11 333 11 181 All in sustaining cost ($/t) 14 566 14 776 12 220 11 819 Quarter ending TROJAN MINE Sep-14 Jun -2014 Mar-14 Dec-13 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. 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. The all in sustaining cost for Q1 of $ 15,750 was overstated by $974 per tonneas taxation was erroneously included, the restated cost is $ 14,776 COMMENTARY Production of nickel in concentrate rose by 5% to 1,989t due to an increase intonnes mined and milled. Tonnes mined were 3% higher at 160,741t, whilst tonnesmilled were 8% higher at 161,107t. The difference in tonnes mined versus tonnesmilled is due to drawings from the ore stockpile created in prior quarters andthe return to production of some of the underground mobile equipment that hadbeen taken out of commission for refurbishing. Trojan has completed some 60% ofthe refurbishment programme and expects full completion during Q3 2015. There was a 2% decline in head grade during the quarter to 1.496% due to mininglower-grade areas in accordance with the mine plan. This is still above theCompany's estimated long term average grade of 1.05% after recoveries. Recoveries were 2% down at 82.5%, as a result both of the lower head grade andthe need to suppress higher MgO content in the ore mined. This is within thecontractual limits of the off-take agreement and Trojan is testing the benefitsof reducing the mass pull in the concentration process by using a combinationof depressants and reagents to improve the ability to reduce the content ofdeleterious material such as MgO in concentrates. This will have a positiveimpact in terms of a cleaner concentrate overflow however it has the potentialto negatively impact recoveries. Nickel sales were 7% higher at 2,008t due to the quarter's higher currentproduction and sales from stock carried forward from the previous quarter. Theaverage nickel price achieved for the quarter was 5% higher quarter on quarterat US$18,592/t. Cash costs rose by 1% to US$13,900t due to the continuation of the mobile plantrefurbishment programme and an increase in the nickel price (as revenueincreases, costs attributed to the off-take agreement also rise) while all-insustaining costs were 8% lower at US$14,566/t. As the Company returned toprofit it has been possible to reverse a deferred tax provision originallycharged against the all-in sustaining cost reported in the Q1 accounts. As aresult the reported Q1 2015 all-in sustaining cost of $15,750 per tonne shouldbe reduced by $974 a tonne to $14,776 for comparative purposes. The reversal of the provision is essentially an accounting entry with no effecton cash flow; deferred taxation was raised as an asset against the tax loss ofthe company at the time. This value of the asset is reversed out of theaccounts as and when the Company makes profit, though this was overlooked inthe year's first quarter even though operations were profitable. Reversal ofthe remaining amount shown as a deferred tax asset will continue on a monthlybasis depending on the level of capital expenditure reported each month. DIAMONDS: KLIPSPRINGER (South Africa) Quarter ending KLIPSPRINGER MINE Sep 2014 Jun 2014 Mar 2014 Dec 2013 Tonnes treated (t) 44 200 40 350 16 000 7 000 Diamonds produced (carats) 32 850 23 750 14 150 6 110 Head grade (cpht) 74.32 58.9 88.4 87.3 Recovery (%) 99.7% 99.7% 99.8% 98.3% Diamond sales (carats) 15 500 20 410 12 383 2 950 Average diamond ($/ct) $20.93 $20.00 $21.03 $21.85price COMMENTARY The Klipspringer Slimes Retreatment Project continued to make steady progressduring the quarter under review. The DMS feed rate is restricting the projectfrom producing more than 15,000tpm at present. Greenhurst Mining & Exploration,the operators of the plant, are busy with modifications to increase DMSthroughput. A minor environmental incident involving an internal wall of the slimes damresulted in production being stopped for 5 days in August 2014. The productionstoppage was necessary to ensure the continued safe operation of the disposalfacility. Two diamond sales took place during the quarter. The parcels were exported toNew York and to Antwerp and an average selling price of $21/ct was achieved. The second sale alone covered 70% of the mine's care and maintenance costs. Management continues to evaluate and review options to re-open the undergroundoperations along the Leopard Fissure. The desktop study to evaluate the option of re-treating the existing coarsetailings dump at Klipspringer has been completed. The next phase will be totake a representative bulk sample of the tailings and evaluate the results. Exploration Gold: Zani-Kodo (Drc) The Kodo Footwall resource conversion drilling programme was completed duringthe quarter and 26,000oz of near-surface mineralisation that can be mined byopen-pit methods have been converted to indicated status. District scale exploration is on-going, with promising mineralised zonesidentified at the Shaba and Djalasega East areas Copper/Cobalt: SEMHKAT/HAILIANG JV (drc) The 2014 exploration programme is underway, with eight drill rigs operating onseveral targets. On the Kawesitu licence visible mineralization was interceptedover significant widths, and at the Niton licence, measurements have confirmedthe presence of copper. Detailed results will be reported as soon as assayresults have been received and processed. About Mwana Africa PLC Mwana Africa PLC is a pan-African, multi-commodity resources company focused onthe production, development and exploration of gold, nickel, copper anddiamonds. In Zimbabwe, Mwana Africa's interests are the Trojan and Shangani nickel mines,and the Freda Rebecca gold mine. Mwana's nickel projects include Hunter's Roadwhile Maligreen is a dormant gold property and the Makaha deposit a goldexploration prospect. The Freda Rebecca gold mine in Zimbabwe restarted operations in 2009 and in the12 months ending March 2014, produced 58,704oz of gold. The Trojan nickel mine is owned by Mwana's Zimbabwe subsidiary, Bindura NickelCorporation (BNC). After a four year period of being under care andmaintenance, in 2012 BNC carried out a US$23m restructuring andrecapitalisation programme which allowed it to restart the Trojan mine. Thefirst sale of concentrate to Glencore took place in April 2013. In the DRC, Mwana Africa has exploration programmes in Zani-Kodo (gold),Katanga (copper) and a 20% stake in Société Minière de Bakwanga (MIBA) -(diamonds). Copper in the Katanga Province - Mwana has a Joint Venture Agreement withZhejiang Hailiang Company Limited to jointly explore some of these licencedareas. The Katanga concessions are otherwise known as SEMHKAT (Sociétéd'exploration Minière du Haut Katanga). The joint venture Zani-Kodo project has a gold mineral resource of 2.97moz. Klipspringer diamond mine is Mwana's South African interest. Mwana holds a69.77% interest in Klipspringer, which is currently on care and maintenance butinvolved in a tailings retreatment project and investigating the viability ofunderground mining Ratio of Run of Mine (ROM) diamonds delivered to diamonds in stock (DIS) aftersieving, cleaning & sorting. A further 17,700 carats is in stock, awaiting regulatory approval, beforeselling.