Freda Rebecca Gold Mine - Project Finance Update

Freda Rebecca Gold Mine - Project Finance Update

16 August 2011

Mwana Africa PLC is pleased to announce that its Zimbabwean subsidiary, Freda Rebecca Gold Mine Limited ("Freda Rebecca"), has drawn down the final tranche of the $10m loan facility provided by the Industrial Development Corporation of South Africa Ltd ("IDC").

Highlights

·; Draw down of the $6m second tranche of the IDC project finance facility by Freda Rebecca

·; Loan term 5 years; interest rate 5% over US$ LIBOR.

·; 2,500 oz of gold per month current production rate achieved.

·; 4,167 oz of gold per month production rate targeted for September 2011.

IDC Project Finance Facility

Following the success of the Phase 1 refurbishment and reaching the target production rate of 30,000 oz gold per annum, Freda Rebecca has drawn down the second $6m tranche of the project finance facility. The facility is repayable in 10 equal installments over a five year period and attracts an interest rate of US$LIBOR plus 5%.

Freda Rebecca produced gold at an average rate of 2,741 oz of gold per month for the three months to the end of June and 3,937 oz were produced in July*. Mwana expects to achieve the Phase 2 target production rate of 4,167 oz of gold per month in September 2011.

*Note: figures shown are unaudited and may vary upon final audit.

Kalaa Mpinga, CEO of Mwana commented:

"We are delighted with IDC's continued support for Freda Rebecca. This loan marks a significant development for project finance into Zimbabwe. The production ramp-up at Freda Rebecca continues to progress and our expansion to 50,000 ounces per annum is well advanced. Our objective at Freda Rebecca is now to optimise performance and maximise our exposure to the current advantageous gold price."

Enquiries:

Mwana Africa PLC

Donald McAlister/Lorenz WerndleTel: +44 (0)20 7654 5580

Nominated Adviser and Broker

Ambrian Partners LimitedAnthony Rowland / Jen BoorerTel: +44 (0) 20 7634 4700

Joint Broker

XCAP Securities plcJon Belliss / John Grant / Parimal KumarTel: +44 (0)20 7101 7070

Public Relations

MerlinDavid SimonsonAnca SpiridonTel: +44 (0)20 7726 8400

Notes to Editors

Mwana Africa

Mwana Africa PLC is a pan-African resources company with operations in Zimbabwe and South Africa and exploration projects and interests in the Democratic Republic of Congo, Angola, Ghana and Botswana. The group has a diverse asset base including gold, nickel, copper, cobalt and diamonds.

In October 2005, Mwana Africa became the first African-owned, African-managed resource company to list on the Alternative Investment Market of the London Stock Exchange, through a reverse takeover of African Gold plc by a privately held mining company, Mwana Africa Holdings (Pty) Limited. Mwana Africa Holdings (Pty) Limited was itself formed in 2003.

Building on its track record and with its highly experienced team, Mwana Africa intends to pursue mining opportunities across the African continent, both independently and, where appropriate, in partnership with other stakeholders.

About the Industrial Development Corporation

The IDC is a self-financing, South African state-owned national development finance institution that provides finance to promote industrial and entrepreneurial development. Its primary objectives are to contribute to balanced sustainable economic growth in Africa and to the economic empowerment of the South African population, thereby promoting the economic prosperity of all citizens of the African continent.

Freda Rebecca

The Freda Rebecca gold mine is located near Bindura, approximately 90 kilometres north-east of Harare.

Exploration, development and production history in the area dates from 1912. The mine and plant complex were developed by Cluff Gold and the production commenced in 1988. In 1996, the mine was acquired by Ashanti Goldfields Zimbabwe which was itself acquired by AngloGold in 2004.

In 2005 Mwana acquired Freda Rebecca from AngloGold. Mwana has committed to sell a 15% stake to a local investor. Freda Rebecca achieved production of 98,000 ounces of gold in 2002, however as a result of the social and economic difficulties in Zimbabwe, output from the mine declined sharply and the mine was placed onto care and maintenance in 2007.

Following the announcement in February 2009 of revised export procedures for gold produced in Zimbabwe, together with the termination of the requirement to submit a proportion of foreign currency earnings to the RBZ for conversion to Zimbabwe dollars, Mwana Africa announced in March 2009 its intention to restart gold production at the Freda Rebecca mine, followed by the first gold pour at the mine in October 2009. The first phase of production ramp up to 30,000oz per annum was completed in 2010, mining and processing expansion to 50,000oz per annum currently under way.