Exploration Update

AIM: KEFI 14 January 2013 KEFI Minerals Plc ("KEFI" or the "Company") EXPLORATION UPDATE CONTINUED EXPANSION OF MINERALISED ZONE AT JIBAL QUTMAN AND PRELIMINARY METALLURGICAL TESTWORK RESULTS KEFI Minerals, the AIM-quoted gold and copper exploration companywith projects in the Kingdom of Saudi Arabia and Ethiopia, is pleased toannounce an exploration update from its Jibal Qutman Licence. This includesadditional reverse circulation drilling results from the continuingexploration and infill drilling programme, and results from metallurgicaltestwork. KEFI Minerals is the operator for the project under the Company's40%-owned Gold & Minerals Joint Venture ("G&M"). HIGHLIGHTS - On-going drill and trench results continue to expand the zone ofmineralisation on all four drilled deposits at Jibal Qutman with best RC drillresults of 17m at 2.91g/t Au (including 7m at 6.00g/t Au), 3m at 5.86g/t Au,5m at 4.86g/t Au and 5m at 9.25g/t Au; - Results from ongoing Metallurgical Testwork for thePre-Feasibility Study to test leaching characteristics of the typical highergrade mineralisation present in the shallow zones have been received. - Bottle roll tests conducted on the three composites samplesreturned gold extractions of 94.8%, 95.6% and 96.5% at a grind of 80% passing75 micron. Coarse bottle roll tests conducted at 12.5mm and 6.3mm returnedrecoveries ranging from 71.9% to 85.2% over a five day period. - A second batch of assays on metallurgy core samples returned 8m at 2.00g/t Au,4m at 1.41g/t Au, 4m at 1.16g/t Au. Jeff Rayner, Managing Director of KEFI Minerals, commented: "We are delighted with the continued expansion of mineralisation atthe Jibal Qutman prospect. We are working hard as we progress towards ourfirst mining lease application. We very much look forward to providing furtherdevelopment updates from our projects in both Saudi Arabia and Ethiopia andare excited about the year ahead." JIBAL QUTMAN PROJECT Exploration and Infill Drilling Please refer to a Map of Jibal Qutman Licence http://www.kefi-minerals.com/jibal_a.html Positive results have been returned from the ongoing explorationand infill RC drilling campaign at Jibal Qutman, which is supporting thecurrent interpretation and expanding the mineralisation in the six drilledzones: Main, South, West, 3K Hill, 4K Hill and the East zone (see Table below). Hole From To Interval Grades Zone m m m JQRC182 44 53 9 m @ 2.68 g/t South 79 96 17 m @ 2.91 g/t including 7m @ 6.0 g/t SouthJQRC183 39 49 10 m @ 0.78 g/t South 75 76 1 m @ 1.55 g/t SouthJQRC184 9 12 3 m @ 5.86 g/t 4KHillJQRC185 9 14 5 m @ 1.13 g/t South 78 79 1 m @ 1.58 g/t SouthJQRC186 21 27 6 m @ 1.64 g/t 4KHillJQRC191 14 17 3 m @ 1.66 g/t 4KHillJQRC192 74 81 7 m @ 0.93 g/t EastJQRC194 12 15 3 m @ 3.12 g/t EastJQRC195 11 16 5 m @ 4.86 g/t including 3m @ 7.92 g/t MainJQRC198 13 18 5 m @ 9.25 g/t MainJQRC199 5 11 6 m @ 2.25 g/t including 2m @ 5.65 g/t MainJQRC197 12 19 7 m @ 4.84 g/t Main infillJQRC201 4 11 7 m @ 9.31 g/t Main infillJQRC202 4 10 6 m @ 1.07 g/t EastJQRC205 6 12 6 m @ 0.97 g/t Main infillJQRC209 8 18 10 m @ 1.30 g/t EastJQRC216 7 20 13 m @ 1.84 g/t South Drilling in South Zone continue to provide positive results,extending the known mineralised body 150m to the south-east, with hole JQRC182returning 9m at 2.68g/t Au, and 17m at 2.91g/t Au (including 7m at 6.00g/tAu), hole JQRC185 returning 5m at 1.13g/t Au and hole JQRC216 returning 13m at1.84g/t Au at shallow depth. The mineralisation is still open to the south. First pass drilling was completed at 4K Hill prospect to testbeneath the trench results previously announced. Drilling allow to define aset of mineralised east dipping quartz veins, with hole JQRC191 returning 3mat 1.7g/t Au, hole JQRC184 returning 3m at 5.86g/t Au, hole JQRC186 returning6m at 1.64g/t Au, all of them at shallow depths. Drilling follow up continuein the area. Metallurgical Testwork The trench samples sent to ALS Perth, Australia were selected to berepresentative of the various grades and rock types of near surfacemineralisation for the West, Main and South Zones. Tests for the heap leachamenability testwork included head analyses, coarse bottle leach andpreliminary percolation tests. Highlights of the testwork include: - Bottle roll tests conducted on the three composites tested returned goldextractions of 94.8%, 95.6% and 96.5% at a grind of 80% passing 75 micron. - Coarse bottle roll tests conducted at 12.5mm and 6.3mm returned recoveriesranging from 71.9% to 85.2% over a five day period. - Recovery trajectories indicate gold would most likely be extracted in allcomposites after the five day period. - Preliminary percolation test results indicate that no agglomeration would berequired for the upper zone mineralisation. - The coarse bottle roll tests conducted at 12.5mm and 6.3mm returned cyanideconsumption ranging from 0.22kg/t to 0.30kg/t and lime consumption rangingfrom 0.23kg/t to 0.24kg/t over the five day period in which the coarse bottleroll tests were conducted. A column test was initiated in the middle of December 2013 on oneof the three composites tested as part of the heap leach amenability testworkprogramme. As part of the metallurgical testwork, metallurgical diamonddrilling was completed at Jibal Qutman. A total of 17 inclined holes (all ofthem dipping -60° and Azimuth N270°), were drilled for a total of 1,771mdrilled at 3K Hill, West, Main and South Zones. Full core samples were sent toALS Lab, Perth, Australia. A variability testwork programme to test leachingrecoveries of the different mineralisation present in the upper and lowerzones was initiated in January 2014. Hole From To Interval Grade Zone m m m JQD 55 50 57 7 m @ 0.99 g/t 3KHill 61 67 6 m @ 0.93 g/t 3KHill JQD 56 48 51 3 m @ 1.27 g/t 3KHill 71 75 4 m @ 1.16 g/t 3KHill JQD 57 37 41 4 m @ 1.41 g/t West JQD 60 15 23 8 m @ 2.00 g/t West 43 49 6 m @ 0.91 g/t West Enquiries KEFI Minerals PlcJeffrey Rayner +90 533 928 1913 Fox-Davies CapitalSimon Leathers +44 203 463 5022 Bishopsgate CommunicationsNick Rome/Anna Michniewicz +44 207 107 1890 References in this announcement to exploration results and mineralresources have been approved for release by Mr. Jeffrey Rayner. Mr Rayner is ageologist and has more than 25 years' relevant experience in the field ofactivity concerned. He is a Member of the Australasian Institute of Mining andMetallurgy (AusIMM) and has consented to the inclusion of the material in theform and context in which it appears. Further information on KEFI is available at www.kefi-minerals.com KEFI Minerals in the Kingdom of Saudi Arabia In 2009, KEFI formed the Gold and Minerals Joint Venture ("G&M")in Saudi Arabia with local Saudi partner Abdul Rahman Saad Al-Rashid & SonsCompany Limited ("ARTAR"), to explore for gold and associated metals in theArabian Shield. To date, the G&M has conducted preliminary regionalreconnaissance and lodged 23 Exploration Licence Applications (ELAs), of which4 have been granted. The ELAs were initially applied for and granted to ARTAR.Incorporation of G&M has been completed and any granted Licences will betransferred into G&M in due course. The Kingdom of Saudi Arabia has instituted policies to encourageminerals exploration and development and KEFI Minerals supports this priorityby serving as the technical partner within G&M. ARTAR also serves thisGovernment policy as the major partner in G&M, which is one of the earlymovers in the modern resurgence of the Kingdom's minerals sector. KEFI in Ethiopia KEFI Minerals has acquired 75% of Tulu Kapi licence in westernEthiopia and intends to refine the development plan for the project, aimed atreducing the previously planned capital and operating expenditure. Earlystudies have yielded encouraging results and was summarised in recentannouncements in respect of the Tulu Kapi acquisition transaction. The Company is now positioned as an operator of two advanced golddevelopment projects within the highly prospective Arabian-Nubian Shield, withan attributable 1.6Moz of JORC-compliant mineral resource plus significantresource growth potential. By 2017, the aggregate estimated production atthese projects attributable to KEFI Minerals could exceed 80,000oz pa Au,generating cashflows for further exploration and expansion as warranted,recoupment of development costs and, when appropriate, dividends toshareholders. -Ends-