Letter of Intent

Weatherly International plc ('Weatherly' or the 'Company')

Letter of Intent with East China Mineral Exploration and Development Bureau for the Development of Berg Aukas

Weatherly is pleased to announce that it has signed a Letter of Intent ('LOI') with a wholly owned subsidiary of East China Mineral Exploration and Development Bureau ('ECE') whereby the parties intend to jointly pursue the development of Weatherly's Berg Aukas lead/ zinc mine in Northern Namibia.

Pursuant to the MOU it is intended that the parties will form a new company ('NewCo') whose primary asset would be the Berg Aukas mine and which would seek the admission to trading of its shares on the AIM market of the London Stock Exchange ('AIM'). It is intended that ECE would provide funding of £4.8 million to acquire an interest of 65% in NewCo. It is intended that Weatherly would retain an interest in NewCo with part of its interest being distributed to underlying Weatherly shareholders.

Completion of the transaction contemplated in the LOI, which is not legally binding save for certain provisions, is subject to the satisfaction of a number of conditions precedent including relevant regulatory, government and third party approvals, and the admission of NewCo's shares to trading on AIM. The parties hope to conclude the proposed transaction before the end of 2010.

Rod Webster, CEO of Weatherly said:

"During our negotiations last year over a proposed equity investment by ECE in Weatherly we got to know one another well and recognised our complimentary skills. Since then we have been looking for a way in which we can work together for our mutual benefit. We think the opportunity to work with ECE offers an enormous growth opportunity for Weatherly and its shareholders. The first objective of the new company will be to complete a feasibility study for Berg Aukas as a starting point in building a widely based resource business".

For further information please contact:

Rod Webster, Chief Executive Officer Weatherly International Plc

+44 (0) 20 7917 2989

Richard Greenfield / Jen Boorer, Ambrian Partners Limited

+44 (0) 20 7634 4710

ABOUT BERG AUKAS

The Berg Aukas deposit was originally discovered in 1913 and worked for a short period between 1920 and 1928. In more recent times, the deposit was worked from 1959 until closure in 1978 when annual production reached a rate of around 130,000tpa of ore, producing an array of lead, zinc and vanadium concentrates. Based on historical records in place at the time of closure, the mine reserve was 1.651 million tonnes grading was 17% zinc, 5% lead and 0.6% vanadium pentoxide (Misiewicz, 1988).