Interim results for the six months to 30 June 2016

27 September 2016

Sovereign Mines of Africa PLC

("SMA" or "the Company")

Interim Results

Sovereign Mines of Africa PLC (AIM: SML), today announces its interim results for the six months ended 30th June 2016.

Enquiries:

SOVEREIGN MINES OF AFRICA PLC

Giles Clarke - c/o Billy Clegg +44 20 3757 6983

SHORE CAPITAL - NOMINATED ADVISER & BROKER

Toby Gibbs - Corporate Finance

Jerry Keen - Corporate Broking +44 207 408 4090

CAMARCO

Gordon Poole / Sean Blundell +44 20 3757 6983

CHAIRMAN'S STATEMENT

Since our appointment to the Board in December 2015, Rupert Fraser and I have been conducting a strategic review of the company's assets and activities with a view to enhancing shareholder value. We look forward to setting out our vision and strategy for the businesses in the near future. As previously stated our plans for the business may well involve the pursuit of an acquisition which would trigger a reverse takeover under the AIM Rules.

Following SMA's successful fundraise at the end of 2015, in which both Rupert and I invested in to provide additional funding to the Company, it had cash resources of approximately £452,000 at 30 June 2016. The Company reports a net loss of £43,795 for the six-month period ended 30 June 2016, compared to a loss of £41,351 for the corresponding period in 2015.

Post period end, we were delighted to announce the appointment of Jeremy Sparrow to the Board as a Non-executive Director. Jeremy brings over 25 years of investment experience to the Company and was most recently Head of Investec Resource Investment Banking for Asia and Australia. We are confident his deep sector knowledge and expertise will augment the board's existing skills and add significant value ahead of our next stage of growth and as we implement the new strategy.

Following careful investigations, and having taken considerable specialist professional advice, the Board has reached detailed positions and is in advanced discussions with potential parties on both our Guinean interests, currently carried in the books at nil value, and on a potential new acquisition in the mining industry. I hope to provide updates shortly.

C G Clarke

Chairman

26 September 2016

UNAUDITED CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME

Six months ended 30 June 2016

UNAUDITED CONSOLIDATED STATEMENT OF FINANCIAL POSITION AS AT 30 June 2016

UNAUDITED CONSOLIDATED CASH FLOW STATEMENT

Six months ended 30 June 2016

UNAUDITED CONSOLIDATED STATEMENT OF CHANGES IN EQUITY

Six months ended 30 June 2016

SOVEREIGN MINES OF AFRICA PLC

Notes to the interim consolidated financial information

Six months ended 30 June 2016

1. GENERAL

The interim financial information for the six-month period ended 30 June 2016 are unaudited and were approved by the Directors of the Company on 26 September 2016. The condensed financial information set out above does not constitute statutory accounts within the meaning of Section 434 of the Companies Act 2006.

The financial information contained in this report in respect of the annual financial statements for the year ended 31 December 2015 has been extracted from the report and financial statements for that year which have been filed with the Registrar of Companies. The report of the auditors on those accounts did not contain a statement under section 498(2) or (3) of the Companies Act 2006 and was not qualified, although it included an emphasis of matter in respect of going concern.

The interim financial information is unaudited and has not been reviewed by the auditors.

The Company's operations are not subject to seasonality or cyclicality.

No dividend has been declared or paid in this interim period.

2. ACCOUNTING POLICIES

The principal accounting policies and methods of computation have remained unchanged from those used in the preparation of the Company's 2015 annual financial statements and are expected to be used for the Company's 2016 annual financial statements.

3. CASH FLOWS FROM OPERATING ACTIVITIES

4. LOSS PER SHARE

Due to there being a loss during the period, the share options are anti-dilutive and therefore the diluted loss per share is the same as the loss per share.

5. NET ASSET VALUE PER SHARE

The "basic" net asset value per share figures are calculated on the basis of the net assets attributable to equity shareholders divided by the number of ordinary shares in issue at the relevant dates of 860,859,050 (30 June 2015: 310,858,850; 31 December 2015: 860,858,850).

6. SHARE CAPITAL

Issued and fully paid:

The deferred shares carry no voting or dividend rights. Deferred shareholders are entitled to receive the amount paid up or credited as paid up on their respective holdings of deferred shares only after there has been paid on each ordinary share the nominal amount paid up on such share plus a further £1 per ordinary share. The holders of the deferred shares shall not be entitled to participate further in any distribution of the assets or the capital of the Company.

7. COPIES OF INTERIM REPORT

Copies of the interim report are available to the public free of charge from the Company at Lakeside Fountain Lane, St Mellons, Cardiff, United Kingdom, CF3 0FB during normal office hours, Saturdays and Sundays excepted, for 14 days from today and are available on the website at www.sovmines.com.