Definitive Agreement Signed for Sale of Mali Subsidiary

PREMIER AFRICAN MINERALS LTD - Definitive Agreement Signed for Sale of Mali Subsidiary

PR Newswire

London, April 22

Premier African Minerals Limited / Ticker: PREM / Index: AIM / Sector: Mining

22 April 2013

Premier African Minerals Limited (`Premier' or `the Company')

Premier African Minerals Limited, the AIM quoted multi-commodity naturalresource company with mineral projects located in Western and Southern Africa,is pleased to announce that further to entering into a Memorandum ofUnderstanding (`MOU') (see press release 30 January 2013), it has signed adefinitive agreement (`the Definitive Agreement') with Ethiopian Potash Corp.(`EPC') (TSX Venture: `FED'), an Ethiopian focussed potash company, for thesale of the Company's Mali subsidiary, G and B African Resources Mali SARL(`Mali Sub'). The Mali sub holds rights to acquire two explorationauthorisations, namely the Taoudenni and Oglat Projects as described in theCompany admission document.

The sale, subject to finalisation, will be satisfied by the issue of 20,000,000new shares in EPC that will result in Premier holding approximately 11% of theEPC shares in issue when all the transactions contemplated below, close.Premier thus retains exposure to the Mali Sub property and gains exposure tothe prospective Danakil Property in Ethiopia in which EPC will hold a 30%interest when all the transactions close.

Conditions precedent to closing include but are not limited to, TSX VentureExchange and EPC shareholders consent. There can be no certainty that thecontemplated transactions will close. The Definitive Agreements that containall Conditions Precedent are described in EPC's press release of the 22 April2013 and are available at www.ethiopianpotash.com.

George Roach, Premier CEO comments that, "The signing of Definitive Agreementsin regard to this disposition underlines our ability to realise value from ourdiverse property portfolio and has the potential to add to our availablefinancial resources. The transaction offers interesting alternatives thatinclude ongoing exposure to the development of Agricultural minerals.

For further information and full details of the Definitive Agreement, pleasevisit www.premierafricanminerals.com or contact the following:

Premier African Minerals Limited is a multi-commodity exploration anddevelopment company focussed in Southern and West Africa. The Company has adiverse portfolio of multi-commodity projects which includes tungsten,phosphate, rare earth elements (`REE'), gold, lithium, tantalum, uranium andclays, in Zimbabwe and Togo, at various stages of development. Premier plans toutilise the strengths of its proven Board and management team, which is highlyexperienced in developing resource projects in Africa, to fulfil its strategyof developing and targeting projects which offer near term value uplift eitherthrough exploration, strategic alliances or commercial opportunities.

The Company has two flagship projects in NW Zimbabwe (tungsten and REE) whichoffer near-term resource and future production potential. The RHA TungstenProject is located in the multi-commodity Kamativi Tin Belt and has theexploration potential to host either a commercial scale open pit or high-gradeunderground tungsten mine. A SAMREC resource is targeted for H1 2013 and amining study is underway. Premier's second priority project in Zimbabwe is theKatete REE project, which again has the potential to be developed as an openpit mine. The project, which spans 3,750 ha, has returned a peak result fromtrenching of 14.6% TREO. Premier is targeting to delineate a Code-compliantresource statement in H2 2013.

In Togo, the Company has prioritised a further two projects for exploration:the Southern Togo Phosphate Project and the Dapaong Gold project. The SouthernTogo project, which has excellent infrastructure being only 35km from the Portof Lome, has a conceptual exploration target of 75Mt at 32% P₂O₅. Additionally,it recently secured the exploration permits for its Dapaong gold project innorthern Togo where there has been significant artisanal activity illustratingthe prospectivity of the unexplored area.

Premier also has a pipeline portfolio of projects which further de-risks theCompany's exposure and it is assessing new opportunities that complement itsinvestment criteria to drive the Company forward and build a leadingmulti-commodity exploration and development company in Africa.