Half Yearly Report

11 December 2015

Asa Resource Group PLC

("Asa Resource", the "Group" or the "Company")

INTERIM UNAUDITED RESULTS

Asa Resource is pleased to announce its unaudited interim financial results for the six months to 30 September 2015.

¹ EBITDA includes US$1.5m one-off retrenchment and restructuring costs

· Group revenue decreased 28% to US$61.9m (H1 FY2015: US$85.8m) despite a 17% increase in gold sales as commodity prices were substantially weaker over the period and nickel sales fell 29% due in part to a major planned shut down at the Trojan Mine. Operating efficiencies are being addressed under a new mine plan which the Company believes will drive improvements in the nickel division in the second half of the financial year

· Cost of sales fell 3% to US$45.3m (H1 FY2015 US$46.8m). This reflects both the higher unit costs on lower production at Bindura as well as the cost cutting initiatives that began post the EGM have and which have begun to take effect

· Group EBITDA decreased by 101% to a loss of US$0.2m (H1 FY2015: US$17.1m profit) which is largely due to a sharp reduction in revenues and one-off retrenchment and restructuring costs

· Group net cash from operating activities decreased 144% to cash utilised of US$2.0m (H1 FY2015: US$4.5m generated) reflecting a drop in revenues which was partly offset by a 3% reduction in cost of sales

· As a result, Group net loss for the period amounted to US$4.3m (H1 FY2015: US$7.7m profit) which included one-off retrenchment and restructuring expenses of US$1.5m and was a lower loss than the guidance figure of US$5m released on 26 November 2015.

· The Company's cash position at the period end was US$9.7m and at the beginning of December 2015 was approximately US$3.8m.

· Following the Board and Management changes coinciding with the General Meeting held on 9 June 2015, the Company has implemented a number of initiatives to reduce costs, re-organize the corporate structure and bring about necessary cultural changes.

· The Company has appointed Cantor Fitzgerald Europe as its Financial Adviser and Corporate Broker and Grant Thornton UK LLP as its Nominated Adviser.

· On 28 September 2015, the Company successfully raised US$2.9m via an open offer to fund corporate restructuring and re-organization costs as well as further developmento of the Klipspringer diamond mine.

· Following the Company's Annual General Meeting on 30h September 2015, the Company changed its name to Asa Resource Group PLC.

· The Directors, having initiated an organizational review, continue to seek to take advantage of opportunities to add positive cash-flow to the Group and diversify its operations.

· Progress on the smelter at BNC continues and will be strategically important to the Company, taking into account the change in theGovernment's policy to imposee a 15% export tax on concentrates. Upon, re-commissioning the Company will wholly-own the only nickel smelter in Africa with scope to introduce a PGM circuit, subject to a feasibility assessment.

Nickel - Bindura Nickel Corporation (BNC) (Zimbabwe) (74.73% interest)

Trojan Nickel Mine (Trojan) (Zimbabwe)

Figures shown are unaudited and may vary upon final audit. BNC released unaudited results for the half year ended September 2015 on 1st December 2015

Gold - Freda Rebecca Gold Mine (Zimbabwe) (85% interest)

Figures shown are unaudited and may vary upon final audit.

Diamonds - Klipspringer (South Africa) (70% interest)

· Klipspringer's throughput of Marsfontein fine residue tailings increased by 8% to 91,561t (H1 FY2015: 84,563t)

· Diamonds recovered decreased marginally by 4% to 54,557cts (H1 FY2015: 56,617cts)

· Revenue increased by 2% due to a 19% increase in diamonds sold to 51,660cts (H1 FY2015: 43,557cts), despite a 15% decrease in the average diamond price received per carat to $17.11/ct (H1 FY2015: $20.14/ct). This was in line with market conditions.

Gold - Zani-Kodo (Democratic Republic of Congo) (80% interest)

· Exploration activity was focused on field assessment of several target areas

· Two new targets, Kepira and Kodo West, have been identified with two potentially mineralised zones present

· Orientation grab sampling has been carried out in both areas with fieldwork and data compilation ongoing

Copper/Cobalt - SEMHKAT/Hailiang JV (Democratic Republic of Congo) (100% interest, but may decline to 38% in terms of the joint venture agreement with Hailiang)

· Exploration programmes are in progress at Kawesitu, Mwombe, Kibolwe East, Lufira and PR763 by Hailiang in line with the terms of the joint venture arrangement

· At Bindura, a new mining plan has been adopted and a number of cost savings initiatives have been implemented to reflect a weaker nickel price environment. The impact of plan is that high grade ore will be mined earlier than envisaged in the original plan and less of the disseminated ore will be extracted. Production is expected to increase in the second half of the year and the Company expects that the nickel division will become profitable in the second half of the year even at current nickel prices.

· As part of Group cost saving initiatives, the Company intends to further reduce its headcount by 350 to around 1,150 people

· As part of its restructuring and re-organization, the Company has commenced farming activities on the land it owns in Bindura to generate income that is not connected to its mining activities

· The Board is seeking to refine an M&A strategy to take advantage of opportunities in the current environment

Yat Hoi Ning, the Company's Executive Chairman, commented:

While the past six months have been a period of challenges, they have also been a period in which the Company restructured and stabilised its management, operations and finances in preparation for future progress.

We have not been immune to the stresses that have emanated from the declines in virtually all commodities markets, particularly the global markets for gold and nickel, our principal products. Our response has been to sustain margins by containing unit costs by, where possible, simultaneously increasing production and maintaining tight control of overall costs.

This was clearly shown at Freda Rebecca where, comparing this year's first half with last year's, a 17% increase in the number of ounces sold more than counteracted the 10% drop in gold's price per ounce. Higher mill throughput and tighter control of operating costs resulted in lower cash costs and all-in sustaining costs. This is important in the context of a dollarized economy in which, unlike mining companies in the countries neighbouring Zimbabwe, the Company does not benefit from the positive impact on its operating costs of a weaker exchange rate vs. the US dollar.

The price of gold remains hostage to the US Federal Reserve's decisions on interest rates. However, as I write, gold's dollar prices is gradually weakening, not, I might add, to the point where it has dropped below Freda Rebecca's unit costs but a slippage which has, nonetheless, to be matched by ever-tighter cost controls.

The half year's operations at Bindura Nickel and its Trojan mine contrasted sharply with those at Freda Rebecca, in part because of scheduled operating downtime for maintenance. Trojan is gradually overcoming its legacy of equipment maintenance shortcomings. And as equipment is fully and correctly serviced, I am confident that the recent interferences with operations will be unlikely to be repeated.

Nickel prices have continued and continue to weaken in response to slowing demand growth by Chinese steel mills, and I believe that further price downside will occur during our financial year's second half. Though the past half year's production decline did not allow Trojan to contain unit costs at levels below the nickel price, I believe that, helped by a new mining plan and uninterrupted operations, this situation will be reversed in the current and future half-year periods.

Operations at our Klipspringer joint venture have been carefully watched as diamond prices have come under pressure in their main markets. We and our JV partners continue to evaluate the feasibility of treating additional tailings residues, while we ourselves have refined the parameters for resuming extraction of stones from the Leopard fissure.

It goes without saying that any decisions on restarting underground mining at Klipspringer will be founded on the most-conservative of cost and price estimates. The same, too, continues to be the case as far as our exploration partnerships are concerned in the Democratic Republic of Congo (DRC). We have located sound prospective sites for future copper and gold developments, but we shall not pursue developments unless there is a high degree of certainty that extraction is possible at low costs and will quickly become cash generative. I believe these initiatives place the Company in a strong position despite the ongoing challenges facing the sector today, and we will seek to leverage this strength as opportunities present themselves to revise and optimise the Group's portfolio.

In conclusion I must thank the staff and executives who have guided Asa Resource PLC through a testing period and who, I am certain, will rise to whatever challenges present themselves in the future. I look forward to updating you on further progress shortly.

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

Asa Resource Group Plc:

1 Catherine Place, London, SW1E 6DX, United Kingdom

Scott Morrison, Senior Independent Non-Executive Director: [email protected]

Yim Kwan, Finance Director: [email protected] or

Amilha Young, Group General Counsel and Company Secretary: [email protected]

Tel: +44(0) 20 3696 5470

Email: [email protected]

Nominated Adviser:

Grant Thornton UK LLP

30 Finsbury Square, London EC2P 2YU, United Kingdom

Colin Aaronson / Richard Tonthat / Carolyn Sansom

Tel: +44 (0) 20 7383 5100

Financial Adviser and Corporate Broker:

Cantor Fitzgerald Europe

1 Churchill Place, Canary Wharf, London E14 5RB, United Kingdom

Stewart Dickson / Jeremy Stephenson / Patrick Pittaway

Tel: +44 (0) 20 7894 7000

Public Relations:

Russell and Associates (South Africa)

42 Glenhove Road, Johannesburg, 2196, South Africa

Leigh King: [email protected]

Jim Jones: [email protected]

Tel: +27 (0) 11 880 3924

Interim Operational Review and Outlook

Presentation note:

In prior years, all financial figures in the below tables were presented net of consolidation entries. In the current period, actual figures before consolidation entries are shown in order to improve comparability with the underlying financial statements of subsidiaries. Thus, comparative figures may differ to those reported in prior periods. The Company will use a similar presentation in the next annual report and accounts.

Nickel: Bindura Nickel Corporation Limited (BNC) - Trojan Nickel Mine (Zimbabwe)

Figures shown are unaudited and may vary upon final audit.

· C1 cash cost per tonne includes costs for mining, processing, administration, offtake costs and penalties, transport costs, accounting movements for stockpiles, and net proceeds from by-product credits. It excludes capital costs for exploration, mine development or processing mill capital works, and, the cost of royalties

· C3 all-in sustaining cost reflects C1 cash cost per tonne plus depreciation and amortisation, thus incorporating the capital cost of production, plus interest, other indirect costs and royalties. All-in-sustaining cost represents all costs attributable to nickel production over the period

· Note: the Company has amended the reporting of the nickel price realized for nickel in concentrate, cash cost and all-in sustaining cost. The average nickel price realized for nickel in concentrate reflects the actual price received rather than the actual average price for the quarter as previously reported. Cash costs and all-in sustaining costs are now reported as actual costs incurred. Previously these costs were adjusted for the opportunity cost forgone as a result of selling a nickel concentrate rather than a nickel cathode

¹ EBITDA refers to earnings before interest, impairments, tax, depreciation and amortisation

Commentary

Trojan Mine entered its third year of operations in April 2015, after having sold the first concentrate in April 2013. The first half of the financial year had its own challenges. Production was relatively low during the period under review mainly due to limited number of draw points, longer lashing cycles and locomotive and SVR breakdowns. There was also a major planned shutdown during the month of July 2015 to upgrade service winders electrical switches and the Trojan Re-deep Project tie-in.

Tonnes mined and milled decreased by 28% to 226,294t (H1 FY2015: 316,351t) and 25% to 231,224t (H1 FY2015: 309,989t) respectively compared to H1 FY2015. This performance was aided by the deliberate move to push volumes on the massive sulphide grades in order to increase the production of nickel. Recovery was 85.8%, which was better than last year's achievement of 83.3%. In addition to the higher grade of ore achieved, the concentrator plant was stable during the period under review. This was achieved as a result of improved plant uptime following positive maintenance.

The Shaft Re-deepening Project continued, albeit at a slower pace, given the cash flow constraints induced by the unfavourable nickel prices. Commissioning of this project is now planned for the quarter ending 31 March 2016. Two key projects were completed and commissioned during the second quarter, namely (a) the Sub Vertical Service Winder and Main Rock Winder Drives Upgrade and (b) the Concentrator Plant and Sub vertical Medium Voltage Switch Room Equipment Replacement.

The average cash settlement price for nickel leach alloy for the period was US$11,787 per tonne ($5.35/lb.) compared to US$18,516 per tonne ($8.40/lb.) in the first half of the prior year. BNC receives an adjusted price commensurate with selling nickel in concentrate as opposed to nickel leach alloy. Nickel prices remained depressed during the half year. This was in contrast to what analysts had predicted as the prices hit a six year low of $9,100 per tonne in August 2015, close to the $8,850 per tonne recorded in October 2009.

The long awaited supply shortfall caused by the Indonesian ore export ban of January 2014 did not materialize. Analysts estimate that 60%-65% of the producers are producing at a loss though there have not been any curtailments by producers as yet. Nickel supply continued to increase as the Chinese Nickel Pig Iron (NPI) sector managed to continue in production, albeit at a reduced rate, by blending high grade Indonesian ore with that from the Philippines and New Caledonia respectively. Coupled with this, the new generation of plants planned during the boom years (2006-2007) came into production. Nickel stocks continued to emerge from bonded warehouses into more secure London Metal Exchange (LME) warehouses following the Qingdao probe thus pushing LME stocks to all-time highs (+470kt in June 2015). Stainless steel production, which accounts for around two thirds of the global nickel demand has not changed year on year as the Chinese output was staggered by soft domestic and export demand amid anti-dumping in Europe. In the United States, suppliers continue to destock due to high inventories while European distributors are keeping stocks at a minimum as a drop in nickel price is a powerful disincentive to hold stainless steel.

As nickel prices tumbled during the period under review, this necessitated the review of the mining plan for Trojan Mine. Management came up with a new mining plan and adopted a number of cost savings initiatives to regain profitability under these difficult circumstances. The impact of the new plan is that high grade ore (massives) will be mined earlier than envisaged in the original plan and less of disseminated ore will be extracted. Production is expected to increase in the second half of the year.

The anticipated effect of the new plan is that the Company will be able to narrow its loss and become profitable in the second half of the year even at current nickel prices. From cash generation perspective, the Company is now self-sufficient utilizing only existing financing facilities with no need for additional funding in the short term.

The market is expected remain in surplus for the rest of the year though LME stocks have reduced to multi-year lows (currently 426,000 tonnes). Fundamentals are improving and a deficit is most likely to be felt in 2016 as demand increases. The major demand growth is expected to come from China's booming infrastructure industry where there will be increased use of the 300 series steel which uses more nickel as compared to the 200 series steel. In the medium term the demand opened up in 2016 will outpace production and LME stocks will dwindle, providing a sustained price support.

The smelter's refurbishment and modification project is ongoing. While the Smelter Restart Project is progressing well, the Board is conducting studies on the feasibility of converting the Smelter to a plant that will process Platinum Group Metals (PGMs). The capital requirement for this project remains at $26.5 million. As reported before, US$20 million was raised for the project through a secured bond (the Bond). The balance of funding required of approximately US$6.5m is expected to come from cash generated from operations and other external sources.

The Company's other nickel assets i.e. the refinery and Shangani Mine remain under care and maintenance.

Gold: Freda Rebecca Gold Mine (Zimbabwe)

Figures shown are unaudited and may vary upon final audit.

· C1 cash cost includes costs for mining, processing, administration, accounting movements for stockpiles and gold-in-circuit, and, net proceeds from by-product credits. It excludes capital costs for exploration, mine development or processing mill capital works and royalties

· C3 all-in sustaining cost reflects C1 cash cost plus depreciation and amortisation, thus incorporating the capital cost of production, interest, other indirect costs and royalties. All-in sustaining costs represents all costs attributable to gold production over the period

¹ EBITDA refers to earnings before interest, impairments, tax, depreciation and amortisation

Commentary

Gold production increased by 17% to 35,052 ounces in H1 FY2016 compared to 30,058 ounces in H1 FY2015 mainly as a result of a 3% increase in tonnes milled. The upturn in performance was underpinned by improved availability of loading units and improved flexibility in stopes.

Tonnes mined for the six months under review increased by 4% to 687,228t from 661,526t in H1 FY2015. The 3% increase in tonnes milled to 602,861t compared to H1 FY2015 is attributable to a 3% increase in mill running time as a result of improved maintenance planning and a 1% increase in throughput due to size reduction of feed material.

The average feed grade decreased by 4% from 2.17g/t in H1 FY2015 to 2.09g/t in the 6 month period under review as commissioned stopes were posting lower than expected grades.

Gold recovery for H1 FY2016 increased by 5% to 83% from 79% in H1 FY2015. The increase was due to reduction in fine carbon losses to tails as a result of improved carbon quality and commissioning of carbon sizing screen.

C1 cash costs decreased by 7% to US$899/oz from US$969/oz in H1 FY2015 as a result of a 17% increase in gold production. Consequently, all-in sustaining costs realised a net decrease of 9% from $1,161/oz in H1 FY2015 to $1,057/oz.

Diamonds: Klipspringer (South Africa)

¹ EBITDA refers to earnings before interest, impairments, tax, depreciation and amortisation

Commentary

· The tonnages mined at Klipspringer improved due to rationalisation of mining and haulage

· The diamonds recovered remained constant

· The diamond price received decreased in line with market conditions

· An ongoing review of the Klipspringer operations including the feasibility of re-opening the underground fissure mine is in progress

Gold: Zani-Kodo (DRC)

· Exploration activity was focused in field assessment of several target areas.

· Two new targets, Kepira and Kodo West, have been identified with two potentially mineralised zones present.

· Orientation grab sampling has been carried out in both areas with fieldwork and data compilation ongoing.

Copper/Cobalt - SEMHKAT/Hailiang JV (Democratic Republic of Congo)

· Exploration programmes are in progress at Kawesitu, Mwombe, Kibolwe East, Lufira and PR763 by Hailiang in terms of the joint venture arrangement

· Several promising mineralized zones have been identified, including a 98m wide malachite-bearing intersection at Kawesitu.

Kawesitu:

· 13 shallow drill holes were completed for a total of 271m

· Diamond drilling is ongoing with four holes completed for a total of 943m

Mwombe:

Three prospects were identified in Mwombe by Hailiang, so called Small Zone, Mwombe West and Mwombe East:

· Small Zone

o Geological mapping, soil gridding and profiling followed by trenching and IP sounding were conducted to identify the drill targets

o Six diamond holes were drilled for a total of 1,222m

o Two zones of copper mineralization were intersected.

· Mwombe West

o Geological mapping followed by trenching and IP sounding were conducted

· Mwombe East

o Geological mapping, soil gridding and profiling followed by trenching and IP sounding were carried out

Lufira:

· Exploration programmes completed.

· Geological mapping and drilling have confirmed that the existence of Lower Roan Formation.

Statement of Profit and Loss (Unaudited)

Condensed Statement of Cash Flows (Unaudited)

Presentation note:

In prior periods, all financial figures in the below tables were presented net of consolidation entries. In the current period, actual figures before consolidation entries are shown in order to improve comparability with the underlying financial statements of subsidiaries. Through the addition of a new column entitled "Consolidation entries", these figures may then be tied back to the Group's financial statements. Thus, comparative figures may differ to those reported in prior years. Secondly, a further change made to the presentation of the Group's figures in the Consolidated Statement of Profit and Loss as follows: royalties and selling expenses have been classified separately on the face of the Consolidated Statement of Profit and Loss in the current period, with a corresponding change to the prior period figures as well. Lastly, in the past, finance income was reclassified from cash flows from operating activities to cash flows from investing activities on the Consolidated Statement of Cash Flows but due to the lack of materiality of this figure, this figure has instead been presented as part of cash flows from operating activities, and comparative figures have been adjusted to reflect this change.

Statement of Profit or Loss

The group reported revenue of $61.9m for the period (H1 FY2015: $85.8m). BNC generated $20.6m of revenue (H1 FY2015: $46.4m) from the sale of 2,762t (H1 FY2015: 3,879t) of nickel in concentrate, and Freda Rebecca generated $40.4m of revenue (H1 FY2015: $38.6m) from the sale of 35,052oz of gold (H1 FY2015: 30,058oz).

The group generated a gross profit of $16.6m (H1 FY2015: $39.0m) for the period; $3.3m at BNC (H1 FY2015: $25.9m), and $13.1m (H1 FY2015: $13.2m) at Freda Rebecca. Operating costs of $60.6m were lower than H1 FY2015 ($67.2m) due to fewer tonnes produced by BNC and the adoption of a number of cost saving initiatives.

No impairment or reversal of impairment of assets was recorded in the period. The group reported a loss before tax of $4.7m (H1 FY2015: $11.9m profit). Fully diluted loss per share for the period were 0.18 US cents per share (cps) (H1 FY2015: 0.37cps earnings).

Statement of Cash Flows

The group utilised $2.0m (H1 FY2015: $4.5m generated) of cash flow from operations during the period. BNC utilised $2.7m (H1 FY2015: $5.1m generated) of operating cash flows, and Freda Rebecca generated $5.6m (H1 FY2015: $2.4m), offset by $4.9m (H1 FY2015: $3.0m) which was utilised for expenses incurred in relation to the interest in the diamond recovery JV, and additional cash flows generated by other Asa Resource entities.

Working capital absorbed $2.1m (H1 FY2015: $13.8m) of cash flow, with $0.6m (H1 FY2015: $9.4m) related to BNC and $0.5m (H1: FY2015: $4.8m) relating to Freda Rebecca. The balance related to other corporate activities including in respect of a prepayment related to the BNC smelter project of $2.8m and foreign exchange movements on intercompany loans.

Capital investment comprised $13.4m (H1 FY2015: $8.3m) of which $11.1m (H1 FY2015: $4.6m) was spent on property, plant and equipment, and a further $2.3m (H1 FY2015: $3.8m) on exploration assets. BNC invested $8.8m (H1 FY2015: $2.2m) into the Re-Deep Project, mobile equipment and work in progress capitalized on the smelter project. Freda Rebecca invested $2.3m (H1 FY2015: $2.3m) into capital expenditure, which included $1.1m (H1 FY2015: $1.7m) in respect of stay-in-business capital and the balance was expended on exploration, and other sundry projects.

The group generated $11.5m (H1 FY2015: $1.8m) in cash from financing activities and mainly comprised $4.4m in proceeds received as at 30 September 2015 following the open offer carried out by Asa Resource. A further $3.6m was generated from proceeds received from the issue of the smelter bond by BNC in addition to the $16.4m banked during the financial year ended 31 March 2015. $1m was received by BNC in respect of asset financing. Freda Rebecca received a bank loan of $2.5m from EcoBank. At 30 September 2015 the group held cash balances of $9.7m (H1 FY2015: $6.9m).

For the six months ended 30 September 2015