DRILLING UPDATE

Nyota Minerals Limited ('Nyota' or the 'Company')

Drilling Update

Nyota announces further significant drill results as part of an update on the Company's Tulu Kapi Project in Ethiopia.

High-Grade Gold Feeder Zone Style Mineralization Discovery

Nyota is pleased to announce the discovery of feeder zone style mineralization characterised by abundant visible gold ("Au") and associated high Au grades.

This is a significant discovery as it is a strong indication that the Tulu Kapi Deposit is part of a large magmatic Au bearing system and therefore offers potential for further discoveries and expansion.

Diamond drill ("DD") hole TKBH-074 (Table 1 and Map 1), that intersected this new style of mineralization, is characterized by pressure dissolution styolite and fracture veins with biotite and magnetite alteration, and sulphides consisting of pyrrhotite, pyrite and abundant visible Au. This style mineralisation is a clear indication that this could be one of the original sources of gold bearing fluids and as a result improving the understanding of the ore genesis process. The combination of mineralogy and geophysical signature specific to this mineralisation style has been noted elsewhere within the Tulu Kapi area by Nyota implying the possible presence of multiple high-grade feeder zones with the current Au resource largely reflecting distal mineralisation.

The full extent of this high-grade mineralisation remains to be determined but it is noteworthy that DD has intersected visually similar mineralization in three additional holes for which assays are outstanding.

Table 1:

Lode 3 Extension

Follow-up drilling of Lode 3 in TKBH-038 (news release dated June 17, 2010) has been very successful with two DD holes making further intersections of the same Lode 3 Zone. These added intersections (Table 2) indicate Lode 3 is of significant size and could potentially add Au ounces to the Tulu Kapi Deposit.

 Table 2:

North Tulu Kapi Deposit Extension

Reverse circulation ("RC") holes TKRC-111 and TKRC-108 both intersected Au mineralization to the north along grid line L320N (Table 3). These two RC drill holes are a step out of 80m to the NW of current drilling and reconfirm the Company's previous statements that Au mineralization continues along strike to the N of the existing resource. Nyota intends to continue following-up on these very encouraging results with further drilling to target an extension to the known Au resource northwards.

Table 3:

Drill results in this release are derived from 10 RC and 15 DD holes for a total of 5,752.51m comprising 1,980m of RC and 3,772.51m of DD. These are the results that have been received since the last release dated October 18, 2010.

These assays will be included in the PEA resource update and have provided valuable additional information on mine design.

In addition a detailed structural mapping programme has been completed and five geotechnical holes have been drilled and logged as part of an ongoing study to provide detailed geotechnical engineering data to determine optimum pit slope angles for mine design.

Preliminary Economic Assessment Feasibility Study ("PEA")

The PEA being undertaken by SRK required infill drilling of the Tulu Kapi Deposit. This programme, while now complete, requires receipt of the balance of assays from ALS Chemex and their inclusion in the geological and resource model. These results will be included into the final PEA study along with recently completed independent structural geological mapping and geotechnical - engineering studies. The Nyota Board has elected to wait to finalise and issue the PEA in Q1 2011 once this additional important information has been included.

Terry Tucker CEO commented "The discovery of high-grade gold feeder zone style mineralization, the extension of the Tulu Kapi Deposit to the north and the thick Lode 3 intersections beneath the existing gold resource is a clear indication that the project continues to have excellent potential to increase in size. Given the importance of this information, the current work with SRK on the Preliminary Economic Assessment Feasibility Study will be completed in Q1 2011 so this new information can be included. It will also incorporate the recently completed and ongoing detailed structural and geotechnical programmes which are an important component of gold resource modelling and mine design."

TO VIEW A MAP SHOWING THE TULU KAPI DRILLING, PLEASE CLICK ON THE FOLLOWING WEB LINK:

http://www.rns-pdf.londonstockexchange.com/rns/6553X_-2010-12-9.pdf 

For further information please contact:

Terry Tucker

Nyota Minerals Limited

+44 (0) 20 7379 5012

[email protected]

NOMAD

Richard Brown

Ambrian Partners Limited

+44 (0)20 7634 4709

BROKER

Guy Wilkes / Will Slack

Ocean Equities Limited

(+44) (0) 20 7786 4370

BROKER

Rory Scott

Mirabaud Securities LLP

(+44) (0)20 7878 3360

Or visit Nyota's website nyotaminerals.com

The technical exploration and mining information contained in this Announcement has been reviewed and approved by Mr Terry Tucker (P.Geo). Mr Tucker has sufficient experience which is relevant to the style of mineralisation and type of deposit under consideration and to the activity to which he is undertaking to qualify as a Competent Person as defined in the 2004 Edition of the 'Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves and as a qualified person under the AIM Guidance Note for Mining, Oil and Gas Companies. Mr Tucker is a registered Professional Geoscientist with the Association of Professional Engineers and Geoscientists of British Columbia, Canada.

Mr Tucker consents to the inclusion in this Announcement of such information in the form and context in which it appears.