Mineral Resource Update

9 October2012

Nyota Minerals Limited("Nyota" or the "Company")

33 per cent increase in Indicated Category Mineral

Resource to 1.1 Moz gold 

Nyota (ASX/AIM: NYO), the gold exploration and development company in East Africa, is pleased to announce a new Mineral Resource estimate for its Tulu Kapi Project, in Ethiopia.

The new Mineral Resource incorporates the results from the in-fill drill programme completed during the summer of 2012 as well as being calculated using a new cut-off grade that reflects the indicative economic parameters to be used for the Definitive Feasibility Study ("DFS").

Highlights

·; New Total In-Situ  Mineral Resource estimate (Indicated + Inferred) for  Tulu  Kapi  of  24.90  million  tonnes  @  2.34g/t  gold containing 1,872,000 ounces of gold using a cut-off grade of 0.3g/t gold;

o Comprises  an  upgrade  and  increase  in  the  Indicated  category  of  33  per  cent  to 1,108,000 ounces of gold @ 2.36g/t gold; and

o An Inferred Resource of 764,000ounces of gold @ 2.30g/t gold.

·; The indicative economic studies conducted for the Feasibility Study indicate that the economic cut-off grade for the Tulu Kapi project is likely to be between 0.3g/t and 0.4g/t gold. As a result the new Mineral Resource was estimated using a cut-off of 0.3g/t gold.

·; The in-fill drill programme was designed specifically to convert Inferred ounces to Indicated ounces. In order to demonstrate the success of the programme a Mineral Resource estimate was undertaken using the previous cut-off grades. This showed the programme to have resulted in a like-for-like increase of 30 per cent to 1,079,000 ounces gold.

·; The new Mineral Resource will be used for the calculation of a maiden Ore Reserve for the DFS, which is expected to be complete in Q4 2012.

·; Drilling activities for the DFS have now ended. Three of the five drill rigs have been stood down for the time being and the remaining two drill rigs have commenced a new programme targeting the higher grade "Feeder Zone" gold mineralisation.

·; Resource  estimation  work  completed  by  independent  consultant  Wardell  Armstrong International  ("WAI"  or "Wardell  Armstrong")  in accordance  with the guidelines  of the JORC Code (2004).

Richard Chase, Chief Executive Officer commented, 

"I am pleased to announce an updated JORC resource at Tulu Kapi which has principally upgraded and increased the Indicated category by 33 per cent. The in-fill drilling, completed ahead of schedule between May and August, was in itself successful and the new resource benefits from our understanding of the economic parameters relevant to operating a mine at Tulu Kapi. Now we must focus on wrapping-up the Feasibility Study, completing the development plan and concluding our negotiations with the Government of Ethiopia for the Tulu Kapi mining licence."

Mineral Resource Update

The resource estimation was undertaken using Ordinary Kriging interpolation, a standardised method for assigning values from samples to ore blocks that minimizes the estimation error. A cut-off grade of 0.3g/t was used to define the mineralisation for both the saprolite and fresh material. This cut-off grade is lower than that used in the Mineral Resource estimate of March 2012 (where cut-off grades of 0.4g/t and 0.5g/t were used for saprolite and fresh material, respectively).

Note:  Nyota holds an interest of 100% in the Tulu Kapi asset

A major part of  a definitive feasibility study is to conduct detailed trade‐ off studies based upon the costs estimated by the  study to establish the most appropriate cut‐off grade,  mine plan and process plant design to maximize the value  of the  ore body. 

The new resource estimate employs a 0.3g/t cut-off because the initial indicative costs for operating a 2 million tonne per annum gold mine at Tulu Kapi show that the economic cut-off is likely to be between 0.3g/t and 0.4g/t. Hence in order to maximise the recoverable gold and to ensure that the optimisation of the net present value ("NPV") of the project considers the whole range of mining scenarios it is necessary to have a Mineral Resource whose cut-off is either equal to or less than the calculated economic cut-off.

The impact of lowering the cut-off grade is to increase the tonnage and to lower the average grade of the Mineral Resource. The effect can be seen by comparing the new Mineral Resource (above) with the "October 2012" estimate in the table below. The relatively small difference in contained ounces for the markedly lower grade shows that the model captures all the available gold mineralisation and the optimisation for mine planning will therefore do likewise.

The drilling programme undertaken since March 2012, including specifically the infill drilling commenced in May, was designed to target areas of Inferred Mineral Resources located within the conceptual open pit and to convert them to Indicated Mineral Resources.

A summary of the most significant drill intercepts are provided as Figures 1, 2 and 3.

http://www.rns-pdf.londonstockexchange.com/rns/2352O_-2012-10-9.pdf 

http://www.rns-pdf.londonstockexchange.com/rns/2352O_1-2012-10-9.pdf

http://www.rns-pdf.londonstockexchange.com/rns/2352O_2-2012-10-9.pdf 

This drilling has contributed to an increase in the Indicated Mineral Resources by approximately 30 per cent to 1,079,000 ounces of gold at a comparable cut-off grade to the March 2012 Mineral Resource estimate; as set out in the table below. This comparison is for analytical purposes only and it is not envisaged that the Mineral Resource calculated at this cut-off will have any use in the DFS.

Diluted Resource Estimate

In keeping with previous resource estimate announcements, the table below shows how the In‐Situ Mineral Resource Estimate model ("In‐Situ") changes when a potential mining dilution is imposed upon it. Previous resource estimate announcements have been based upon diluting to a geometrical mine plan comprising of 2.5m high benches. The current diluted resource estimate is based upon a dilutant skin of 30cm on the hanging wall and footwall of each ore lens. This results in a more appropriate diluted tonnage and grade estimate for thinner ore lenses, and is based on an estimated selective mining resolution of 30cm ("0.3m Edge Dilution") as envisaged in the DFS. The purpose to this exercise is to gain a better understanding ofthe likely tonnes and grade that will be treated by theprocess plant, as opposed to the tonnes and grade that is present "in‐situ" in the ground.

The gold in the upperparts of the Tulu Kapi ore body is contained predominantly in sub‐horizontal and shallow dipping lenses in zones of alteration. Therefore, the effect of using regularly sized rectangular blocks to model it as one would mine it (and when all other factors are left unchanged) isto force the inclusion of low grade material and internal waste that must be removedalong with the ore. As a result, the gold metal contained inthe resource estimate remains almost unchanged butthe number of tonnes increasesand the average grade of those tonnes decreases.

Further Resource Potential

Drilling with the objective of delineating resources for the Feasibility Study has been completed. However, opportunities remain for the delineation of additional resourcesimmediately adjacent and proximal to the Tulu Kapi deposit including the UNDP, SWExtension and the Feeder Zone. These targets are defined by a combination of airborne and ground geophysics, soil geochemical survey, trenching and initial drilling.

Given the significantly higher grades intersected in the Feeder Zone to date, two drill rigs have commenced a new programme targeting this deep mineralisation. The programme comprises initially of 17 holes for a total of 7,700m and drilling is expected to continue until the end of the year.

The three other drill rigs that have been contracted by Nyota for the past two years are currently redundant.

Competent Persons

The Resource Statement is the responsibility of Principal Geologist Mark Owen BSc MSc MCSM CGeolFGS EurGeol. Mark Owen is a full‐time employee of Wardell Armstrong International, an independent Consultancy and has sufficient experience which is relevant to the style of mineralization and type of deposit under consideration,and to the type of activity which he is undertaking toqualify as a Competent Personas defined in the 2004 Edition of the Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves and in the AIM Note for Mining and Oil & Gas Companies. Mark Owen consents to the inclusion in the announcement of the matters based on their information inthe form and context in whichit appears and confirms that this information is accurate and not false or misleading.

For further information please visit:  http://www.nyotaminerals.com or enquire to: Richard Chase (CEO)

Nyota Minerals Limited

+44 (0)20 7400 5740 info@nyotaminerals.com

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