Interim Results

28 February 2012

Weatherly International plc

("Weatherly" or the "Company")

Weatherly International plc today announces its unaudited interim results for the six months ended 31 December 2011.

Summary highlights for the six months ended 31 December 2011

Financial

·; Profit after tax of US$13.3m for the half year ended 31 December 2011

·; Cash at bank US$7.1m at 31 December 2011

Corporate and operational

·; Profit of US$7.3m generated by Central Operations

·; Contracts restructured and appointment of new mining contractor to boost production at Otjihase

·; China Africa Resources plc listed on AIM

·; Sale of Berg Aukas mine to China Africa Resources generated a profit of US$4.2m

·; Payment of dividend by distribution in specie of shares in China Africa Resources worth US$1.2m

·; Investment by Namibian interests in subsidiary of Weatherly

Post half year end

·; Announcement of key data from the feasibility study for the Tschudi project

·; Tschudi resources statement (JORC) revised upwards

·; Maiden Tschudi reserve statement (JORC) released.

For further information contact:

Rod Webster, Chief Executive Officer Weatherly International Plc +44 (0)207 917 2989

Max Herbert, Company Secretary

Dean Friday, Investor Relations

John Prior Collins Stewart Europe Limited +44 (0)207 523 8350 

Sebastian Jones

Chairman's and Chief Executive's statement

Half year statement

We are pleased to report Weatherly's results for the half year ended 31 December 2011.

During this period our Central Operations generated an operating profit before interest of US$7.3 million. There was also a profit on the disposal of the Berg Aukas mine of US$4.2 million, and a profit from the release of the section 311 creditor provision of US$5.2 million. The group recorded an unrealised exchange loss on its loans of US$1.3 million, incurred unallocated head office costs of US$1.6 million, interest on its loans of US$0.3 million, and after losses in associated companies of US$0.2 million, leaving a profit after tax of US$13.3 million.

The group generated cash from operating activities of US$5.3 million and invested US$0.8 million of this in plant and machinery, US$1.0 million in further development at the Matchless mine, and US$2.4 million in the feasibility studies for the Tschudi mine and the Tsumeb tailings. Loans were reduced by US$2.4 million, and after taking initial balances into account we were left with cash at 31 December of US$7.1 million.

Weatherly had two main objectives over the period: the consolidation of production from its Central Operations, and the progression of the Tschudi feasibility study. Despite some minor setbacks, Central Operations continue to ramp up to their target rate. The Tschudi feasibility study is running to schedule and has reinforced its position as our priority project. The project is designed to produce 15,000 tonnes of copper annually over an 11-year mine life, which will enable us to meet our strategy of establishing a business capable of producing 20,000 tonnes of copper per year.

On 1 August 2011, the ordinary shares of China Africa Resources plc were admitted to trading on AIM. East China Mineral Exploration & Development Bureau ("ECE") acquired 65% of the shares for £4.7 million, and Weatherly sold the Berg Aukas mine to China Africa Resources in return for its 35% shareholding. Weatherly distributed 10% of the shares to its shareholders as an in specie dividend. This represented the commencement of a formal relationship between Weatherly and a powerful and ambitious Chinese company in ECE.

In September 2011, an agreement was executed over the sale of a 2.5% shareholding in our Namibian subsidiary, Ongopolo Mining Limited ("OML"), to Labour Investment Holdings ("LIH"), the investment arm of the National Union of Namibian Workers. This agreement was pursuant to a Memorandum of Understanding signed with LIH in 2010, and a Weatherly initiative to promote local participation in the business through direct equity ownership. The sale price of N$ 7.2million (approximately US$0.9 million) was provided through a vendor finance facility, where the payment of the consideration is to be deferred and deducted from LIH's future dividends. The agreement also provides an option for LIH to increase its shareholding to 5% within five years at a price based on an independent valuation of OML at the time of exercise.

Weatherly continues its prudent risk management strategy of maintaining a forward copper position equivalent to approximately 35% of anticipated production over a 15-18 month period. At 31 December 2011, our hedge book had a mark to market value of US$4.9 million.

Operational update

Central Operations

We are very pleased with the performance of the Matchless mine and the operating contractor Shali Mining. The mine has achieved the target production rates set and this is expected to continue. In the second half of the financial year, the mining operations will be moving into an area of the ore body shown to be higher in grade and broader in width, and we expect this to have a positive effect on production.

The Otjihase mine has continued to underperform, with production in January similar to previous months. A number of actions have been taken to address the situation. We previously announced a restructuring whereby the operations at Otjihase were to be broken into three discrete contracts - mining, crushing/conveying and processing. This has now been undertaken, and the mining contract has been awarded to Shali Mining, which is currently also engaged at Matchless. The terms and conditions will be similar to the Matchless contract, whereby payment is based on tonnes of ore delivered. The changeover will take four weeks to implement, and we anticipate significant improvement in production from the second quarter of 2012.

Expansion of Central Operations

Investigations are continuing into how best to exploit the remaining resources. Opportunities exist at both Otjihase and Matchless to reopen previously mined areas. A decision on the advancement of one or more of these opportunities is expected to be made in the coming months.

Tschudi feasibility study

The feasibility study for the Tschudi project remains on track for completion before the end of the financial year. The project will be an open-pit mine, with a heap leach, solvent extraction/electro-winning ("SX/EW") processing route. This design will enable us to produce LME-grade copper cathode on site. Critical data from the lead consultant on the project, Sedgman Engineering, provides a clear picture of the project's economic fundamentals. The main item remaining before finalisation of the feasibility study is completion of confirmation test work, which is being conducted to verify the leaching kinetics that have been used in the feasibility study to date.

In early February, a revised resource statement (JORC) indicating 50.1mt at 0.86% Cu was released alongside a maiden reserve statement (JORC) of 22.2mt at 0.87% Cu. The operations are designed to produce 15,000 tonnes of copper per annum at full production with an 11-year mine life.

We are continuing to evaluate both structured debt and off-take finance options. with the expectation of having funding in place by calendar year end.

Tsumeb tailings

Investigations are continuing through our consultant Sedgman Engineering into the feasibility of copper production from the Tsumeb tailings, which contain a resource (JORC) of 12mt grading 0.48% Cu, 0.77% Pb, 0.63% Zn and 12.74g/t Ag.

China Africa Resources plc

Weatherly has a 25% shareholding in China Africa Resources, and administers the business under the provisions of a management services agreement. The primary focus of China Africa Resources has been the progression of the Berg Aukas feasibility study.

To date Weatherly has:

·; appointed consultants (geology, engineering, environmental);

·; commenced a drilling program designed by consultant geologists to establish JORC resources;

·; commenced metallurgical test work on samples taken from the old surface dump;

·; collected historical information to establish a full 3D model of the old mine workings;

·; begun environmental studies pursuant to Namibian legislation; and

·; progressed studies on mine dewatering and shaft refurbishment.

Outlook

The Central Operations mines are now producing good cash flows, and the Tschudi feasibility study has to date shown that it is a project with strong economic fundamentals. We expect a continued improvement at Otjihase as a result of the recent changes to the main operating contract, and the copper market is continuing to hold up well despite the tough economic climate.

We are confident that the coming year will be significant in the development of the company and its future growth, and we embark upon this from the firm base that we have established.

Independent review report to Weatherly International plc

Introduction

We have been engaged by the company to review the financial information in the half-yearly financial report for the six months ended 31 December 2011, which comprises the consolidated statement of comprehensive income, consolidated statement of financial position, consolidated statement of changes in equity, consolidated cash flow statement and related explanatory notes. We have read the other information contained in the half yearly financial report, and considered whether it contains any apparent misstatements or material inconsistencies with the information in the condensed set of financial statements.

This report is made solely to the company in accordance with guidance contained in ISRE (UK and Ireland) 2410, 'Review of Interim Financial Information performed by the Independent Auditor of the Entity'. Our review work has been undertaken so that we might state to the company those matters we are required to state to them in a review report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the company, for our review work, for this report, or for the conclusion we have formed.

Directors' responsibilities

The half-yearly financial report is the responsibility of, and has been approved by, the directors. The AIM rules of the London Stock Exchange require that the accounting policies and presentation applied to the financial information in the half-yearly financial report are consistent with those which will be adopted in the annual accounts having regard to the accounting standards applicable for such accounts.

As disclosed in note 1, the annual financial statements of the group are prepared in accordance with IFRSs as adopted by the European Union. The financial information in the half-yearly financial report has been prepared in accordance with the basis of preparation in note 1.

Our responsibility

Our responsibility is to express to the company a conclusion on the financial information in the half-yearly financial report based on our review.

Scope of review

We conducted our review in accordance with International Standard on Review Engagements (UK and Ireland) 2410, 'Review of Interim Financial Information Performed by the Independent Auditor of the Entity' issued by the Auditing Practices Board for use in the United Kingdom. A review of interim financial information consists of making enquiries, primarily of persons responsible for financial and accounting matters, and applying analytical and other review procedures. A review is substantially less in scope than an audit conducted in accordance with International Standards on Auditing (UK and Ireland), and consequently does not enable us to obtain assurance that we would become aware of all significant matters that might be identified in an audit. Accordingly, we do not express an audit opinion.

Conclusion

Based on our review, nothing has come to our attention that causes us to believe that the financial information in the half-yearly financial report for the six months ended 31 December 2011 is not prepared, in all material respects, in accordance with the basis of accounting described in note 1.

Grant Thornton UK LLPAuditor

Gatwick

27 February 2012

Condensed consolidated statement of comprehensive income

for the period 1 July to 31 December 2011

Condensed consolidated statement of financial position

as at 31 December 2011

Condensed consolidated statement of changes in equity

for the period 1 July to 31 December 2011

Condensed consolidated cash flow statement

for the period 1 July to 31 December 2011