Interim Results

African Potash Limited / Index: AIM / Epic: AFPO / Sector: Mining

30 March 2015

African Potash Limited ('African Potash' or 'the Company')

Interim Results

African Potash Limited, the AIM listed African exploration company, is pleased to announce its unaudited results for the six months ended 31 December 2014.

HIGHLIGHTS:

· Focus on the Lac Dinga Potash Project - an exploration licence in the Republic of Congo in one of the world's premier potash basins

· Commercial potential of Lac Dinga further demonstrated through the completion of a maiden drilling campaign which intersected uniform potash mineralisation in three laterally continuous horizons

· Strategy to evaluate potential funding mechanisms and strategic partnerships to fund the next phase of exploration and drive onward development

CHAIRMAN'S STATEMENT

It gives me great pleasure to deliver my introductory statement as African Potash's new Chairman, following my appointment earlier this month. Firstly, I would like to take this opportunity to thank Ed Marlow and Jean-Pierre Conrad, the Company's previous leadership team, for their excellent work in identifying and delivering our flagship Lac Dinga Potash Project in the Republic of Congo ('Lac Dinga' or 'the Project') to the group. In line with this, the main thrust of the Company's activities and attention during the past year have focused on the appraisal of the resource potential of Lac Dinga; I am pleased to report that the asset that I have inherited as Chairman has considerable commercial and strategic worth, and we are well placed to begin translating this potential into crystallised value.

Lac Dinga is located in one of the premier potash bearing regions globally - not only does this basin host high grade sylvinite mineralisation at attractive depths, but its location close to key infrastructure supports lowest-quartile cash costs for exploitation. These key attributes have made this particular coastal basin in the Republic of Congo an area of considerable interest to private and state-run enterprises internationally, as key decision makers look to secure long term potash supplies to support fertiliser production and agricultural development.

The Company holds its interest in Lac Dinga through its 70% interest in La Société des Potasses et des Mines S.A. ('SPM') which holds the exclusive right to conduct mining research activities for potash salts over the Project. The Project encompasses 702.5 sq km of prime coastal potash basin in the Kouilou region, extending 57km NW-SE, and is adjacent to the Dougou Potash Deposit, part of the Sintoukola Potash Permit, held by Elemental Minerals Limited (ASX/TSX: ELM) and the Makola licence of Evergreen Resources Holdings (BVI) Ltd. The Dougou Potash Deposit has a JORC compliant Measured and Indicated mineral resource of 1.1Bt grading 22% KCl.

With such a dominant position in this strategically important potash region, the Company's focus during the period under review has been to begin to prove up the resource potential of the Project, moving it up through the development curve to provide further exposure in the global marketplace and open up potential tactical discussions with prospective off-takers, investors or joint venture partners. The first step in this process was to plan and initiate a drilling campaign. Preparations for this began in early-2014 following the acquisition and interpretation of 415 line kilometres of oil exploration 2D seismic data covering 470km2 on and around the Project. This interpretation delineated two areas prioritised for immediate drilling. The targets were identified near the basin margin where favourable conditions are interpreted for the formation of high-grade potash mineralisation.

Drilling of the first hole, LDDH_001, began in August 2014. This hole intersected a 120m thick salt sequence from about 415m below surface; this salt sequence hosts multiple potash seams totaling approximately 40m, representing 35% of the total interval and confirmed the laterally extensive salt and potash mineralisation in the Congolese costal basin, supporting the Company's confidence that approximately 250km2 of the licence area is underlain by salt-bearing strata. The second hole (LDDH_002), which intersected a 112m thick salt sequence, was completed in October 2014. This salt sequence also included multiple potash seams totaling about 48m, representing 43% of the total interval. Together with the results from LDDH_001, this second hole further underpins the laterally extensive salt and potash mineralisation, which is characteristic of the Congolese costal basin, and reinforces the Project's potential to host a significant commercial deposit.

In the light of these highly encouraging results the Board is currently evaluating its various options to maximise the value of the asset whilst conserving its cash resources. As shareholders will be aware, in August 2014 the Company entered into a convertible securities issuance deed with Bergen Opportunity Fund, LP ('Bergen'), whereby Bergen could invest up to US$3,750,000 payable in four tranches. This agreement enabled the Company to complete its initial drilling campaign at Lac Dinga, however in order to minimise the potential dilution under the facility, the Company elected to terminate the facility on 9 February 2015. The Company continues to evaluate alternative funding mechanisms and strategic partnerships with the objective of funding the next phase of exploration. It should be reiterated that shareholder value remains of paramount importance to the Board, and this remains at the forefront of our negotiations with regards to future funding opportunities.

Financial Results

The Group is reporting a loss attributable to equity shareholders of US$660,000 (2013: US$554,000). At 31 December 2014 cash balances were US$679,000 (30 June 2014: US$2,170,000).

Outlook

My involvement in African Potash comes at a pivotal time for the Company, as we look to build on the exploration progress made in 2014 and try to translate this into tangible value moving forward. We are exploring a number of different strategic opportunities through which to do this, and I plan to leverage my corporate experience, built over many years' of operating in Africa, to deliver to the optimum route for crystallising the value for shareholders.

I would like to thank both our shareholders and our team for their support and look forward to providing updates on the Company's activities as we look to advance the Project and evaluate additional opportunities which we believe offer material value.

Chris Cleverly

Chairman

27 March 2015

For further information visit www.africanpotash.com or contact the following:

Unaudited Consolidated Income Statement

For the half year to 31 December 2014

All results relate to continuing activities

Unaudited Consolidated Comprehensive Income Statement

For the half year to 31 December 2014

Unaudited Consolidated Statement of Financial Position

As at 31 December 2014

Unaudited Statement of Changes in Equity

Unaudited Consolidated Statement of Cash Flows

Notes to the Unaudited Interim Financial Statements

African Potash Limited ('African Potash' or the 'Company') has an investing policy to acquire potash (and associated minerals) assets in Africa. African Potash is a public limited company incorporated and domiciled in the Guernsey. The address of its registered office is Richmond House, St Julians Avenue, St Peter Port, Guernsey GY1 1GZ.

The Company is listed on the AIM Market of London Stock Exchange plc.

The unaudited interim financial statements for the 6 months ended 31 December 2014 were approved for issue by the board on 27 March 2015.

The interim financial statements for the 6 months ended 31 December 2014 and the 6 months ended 31 December 2013 are unaudited and do not constitute full accounts. The comparative figures for the period ended 30 June are extracts from the annual report and do not constitute statutory accounts.

The unaudited interim financial statements have been prepared in US Dollars as this is the currency of the primary economic environment in which the Group operates.

The condensed consolidated financial statements of the Group for the six months ended 31 December 2014, which are unaudited and have not been reviewed by the Company's auditor, have been prepared in accordance with the International Financial Reporting Standards ('IFRS'), as adopted by the European Union, accounting policies adopted by the Group and set out in the annual report for the year ended 30 June 2014 (available at www.africanpotash.com). The Group does not anticipate any significant change in these accounting policies for the year ended 30 June 2015. References to 'IFRS' hereafter should be construed as references to IFRSs as adopted by the EU.

This interim report has been prepared to comply with the requirements of the AIM rules of the London Stock Exchange (the 'AIM Rules'). In preparing this report, the Group has adopted the guidance in the AIM Rules for interim accounts which do not require that the interim condensed consolidated financial statements are prepared in accordance with IAS 34, 'Interim financial reporting'. While the financial figures included in this report have been computed in accordance with IFRSs applicable to interim periods, this report does not contain sufficient information to constitute an interim financial report as that term is defined in IFRSs.

The financial information contained in this report also does not constitute statutory accounts under the Companies (Guernsey) Law 2008, as amended. The financial information for the year ended 30 June is based on the statutory accounts for the year then ended. The auditors reported on those accounts. Their report was unqualified and did not include any statements of emphasis of matter.

Basis of accounting

The unaudited interim financial statements have been prepared on the historical cost basis except for financial instruments measured at fair value. The principal accounting policies adopted are consistent with those of the financial statements for the year ended 30 June 2014.

The directors consider that the Company operates in a single segment, Potash exploration and in one geographical segment, Africa.

The finance costs arising in the period ending 31 December 2014 are the facility fees incurred in arranging the Bergen convertible loan note facility (see note 8).

The calculation of basic and diluted earnings per share is based on the following data:

On 12 May 2014, 58.4 million ordinary shares were issued at 1.9p per share to fund the Phase 1 drilling and exploration program.

On 8 August 2014, the company issued 6.3m at 3.5p shares in connection with the Bergen convertible securities facility (see note 8) and 1.4m shares at 3.5p in lieu of payment to an advisor.

On 12 September 2014, 4.9m shares were issued upon conversion of $200,000 of convertible securities.

On 20 November 2014 a further 3.7m shares were issued upon conversion of $100,000 of convertible securities.

On 8 August 2014, the company entered into a facility with Bergen Global Opportunity Fund, LP, whereby convertible securities will (subject to the satisfaction of certain conditions) be issued in four tranches up to a nominal value of $3,830,000. The initial Convertible Security had a nominal value of US$830,000 was issued on 14 August 2014. Each of the three subsequent tranches of Convertible Securities will be issued 90 days after the date of issuance of the previous Convertible Security and have the nominal value of between US$500,000 and US$1,000,000.

On 13 November 2014 the second convertible security was issued with a nominal value of $500,000.

On 9 February 2015, the company exercised its option to terminate the agreement and no further securities will be issued.

The conversion price of the securities is 91% of the average of five daily volume-weighted average prices of the Shares on AIM during a specified period preceding the relevant conversion.