Funding to restart the Trojan Nickel Mine

Mwana Africa PLC

("Mwana", the "Group" or the "Company")

Funding to restart the Trojan Nickel Mine

Mwana is pleased to announce that its 52.9% subsidiary, Bindura Nickel Corporation ("BNC"), announced this morning its intention to carry out a rights issue to raise USD21 million, proceeds of which will be used to fund the restart of BNC's Trojan Nickel Mine in Zimbabwe. Mwana, through its subsidiary Zimnick Limited, is acting as underwriter for the BNC rights issue.

BNC shareholders will be asked to approve the rights issue at an EGM on 29 June 2012, following which, assuming approval is received, the rights issue is planned to close on 27 July 2012. Completion of the rights issue is conditional upon, inter alia, satisfactory resolution of legacy creditor, staff retrenchment and back pay liabilities at BNC in such a way that makes the restart of Trojan viable.

BNC is a Zimbabwe based nickel mining company, listed on the Zimbabwe Stock Exchange and which owns the only integrated nickel mine, smelter and refinery operation in Africa. BNC owns and operates the Trojan Nickel Mine, Shangani Nickel Mine and a smelter and refinery, all of which are currently on care and maintenance. In addition to these assets BNC also owns the potentially world scale Hunters Road nickel project, which is situated in the Southern Greenstone belt of central Zimbabwe.

BNC's directors consider that economic and operating conditions in Zimbabwe have improved significantly over the recent past and, having considered a number of potential restart scenarios, have decided to restart operations in phases, commencing with the Trojan Nickel mine which will initially produce concentrate. In February 2011 BNC entered into an offtake agreement with Glencore, whereby Glencore will purchase all of the concentrate produced at the Trojan Nickel Mine. 

The BNC directors estimate that the total costs of restarting the Trojan mine are approximately USD33 million, with USD21 million taking the Trojan mine into production and revenue generation in the first year of the restart and a further USD12 million for the following year taking BNC to a cash flow positive position. The proposed BNC rights issue will fund the first USD21 million of the funding requirements; the BNC directors are confident that they can secure the remaining funding requirements from alternative sources, including debt, and will be pursuing this following the rights issue.

Kalaa Mpinga, CEO of Mwana, commented:

 "Economic and operating conditions in Zimbabwe have improved markedly over the past few years, and following the recent subscription by China International Mining Group Corporation into Mwana, the time is right to proceed with the phased restart of operations at BNC; beginning with mining at BNC's Trojan Nickel Mine. I look forward to updating shareholders on the result of the rights issue in due course."

For further information please visit www.mwanaafrica.com or contact:

Mwana Africa PLC Tel: +44 (0)20 7654 5580

Donald McAlister / Lorenz Werndle

Nominated Adviser and Broker

Liberum Capital Limited Tel: +44 (0)20 3100 2000

Michael Rawlinson / Tom Fyson / Christopher Kololian

Public & Investor Relations

Tavistock Communications Tel: +44 (0)20 7920 3150

Ed Portman / Simon Hudson / Mike Bartlett

About Mwana Africa PLC

Mwana Africa PLC is a pan-African, multi-commodity resources company. Mwana's principal operations and exploration activities cover gold, nickel and other base metals, and diamonds in Zimbabwe, the DRC and South Africa. Mwana was the first African owned and managed mining business to be listed on London's AIM market. Mwana's Freda Rebecca gold mine in Zimbabwe achieved its target production rate of 50,000 ounces gold per annum in 2011. In February, Mwana announced a gold mineral resource of 2.01 million ounces at its Zani Kodo project in Democratic Republic of Congo. Further information on the Company can be found at www.mwanaafrica.com.