Monte Muande Update

North River Resources plc / Ticker: NRRP / Index: AIM / Sector: Mining

10 April 2012

North River Resources plc ('North River')

Monte Muande Update

North River Resources plc, the AIM listed resource company focussed on Southern Africa, notes an update from its Joint Venture partner Baobab Resources plc ('Baobab' or 'the Company') in relation to North River's Monte Muande licences which cover 338km2 in the Tete province of Mozambique ('the Project') which are prospective for magnetite, phosphorus, uranium and gold.

North River Managing Director David Steinepreis said, "These encouraging initial drill results from the Monte Muande project continue to underpin the prospectivity of the asset and give further confidence in the current 200Mt to 250Mt Exploration Target. In particular, the indication of premium quality concentrate grades of 69% Fe at a mass recovery of 26% and the potential to also produce a complementary high grade rock phosphate concentrate highlights, in the management's view, the potential value of the project."

Baobab Resources Announcement:

BAOBAB SECURES 60% PROJECT INTEREST IN MONTE MUANDE

Baobab Resources Plc ('Baobab' or the 'Company') is an iron ore, base and precious metals explorer with a portfolio of exploration projects in Mozambique. On 15 November 2010 the Company announced the signing of a Joint Venture with North River Resources plc ('North River') in relation to North River's Monte Muande magnetite/phosphate, base and precious metal project (the 'Project') in the Tete province of Mozambique. The Company is pleased to present an update on work completed.

HIGHLIGHTS

·; Baobab has completed Stage 1 of the Joint Venture, earning the Company a 60% interest in the Project.

·; The 10 hole diamond drilling programme (c.2,000m) completed during 2011 intersected broad packages of magnetite and phosphate mineralisation. Analytical results from nine holes have been returned.

·; Significant drill results from magnetite rich intersections report premium quality concentrate grades of 69% Fe at a mass recovery of 26% (weighted average).

·; The magnetite concentrates are generally very low in deleterious elements with additional test work underway to further improve characteristics.

·; Phosphate mineralisation is ubiquitous with bench-scale test work required to determine quality and yield of a potential concentrate product.

·; Head grades are in line with Coffey Mining's shallow depth 200Mt to 250Mt exploration target announced in March 2011.

·; Sizing and analysis of trench samples is on-going.

Commenting today, Ben James, Baobab's Managing Director, said: "it is with great pleasure that we are able to present the results of the initial drilling campaign on this exciting prospect. 69% Fe is an exceptional grade and, together with the possibility of producing a complementary high grade rock phosphate concentrate, immediately demonstrates the value of this Joint Venture in the Company's portfolio."

MONTE MUANDE DIAMOND DRILLING & RESULTS

During the latter half of 2011, Baobab completed a c.2,000m diamond drilling at Monte Muande (collar details presented below). The programme comprised 10 angled drill holes sited along a staggered traverse transecting the central portion of the deposit. Drilling intersected broad zones of shallowly dipping magnetite (an iron (Fe) mineral) and apatite (a phosphate (P2O5) mineral) mineralisation*. Please note that drill holes have not been drilled in sequence, consequently there are gaps in the hole numbering.

Analytical results from nine drill holes have been returned. Due to the disseminated nature of the apatite mineralisation, the entire length of each drill hole was sampled and analysed. The average head grade of all sampled material reported 10% Fe and 3% P2O5.

Significant intercepts of the magnetite rich zones are tabulated below. The average head grade of all Muande significant intercepts is 21% Fe with the Davis Tube Recovery (DTR) magnetic concentrate grades reporting a weighted average of 69% Fe at a mass recovery of 26% (representing a total iron yield of 87%). Deleterious elements are generally very low in the DTR concentrate with the exception of sulphur (S) and titanium (TiO2); additional test work is currently underway to determine the best magnetic strength conditions to optimise the concentrate quality.

The magnetite intercepts below generally reported an enrichment of phosphate compared to back ground values with an average head grade of 4% P2O5. The Phosphate was further upgraded to a calculated weighted average of 5.5% (ranging up to 8.8%) in the non-magnetic reject component of the DTR process. A bench-scale apatite recovery test work programme is being prepared to determine the potential quality and recovery rates of a phosphate rock concentrate.

* To view a location plan and cross section, please download a copy of this announcement from the Company's website at www.baobabresources.com/investor/aim-announcements.

Coordinate system WGS84 UTM zone 36S. Sample preparation at 1m composite intervals was completed by ACT-UIS laboratories in Tete, Mozambique prior to despatch to ALS Chemex laboratories in Perth, Western Australia for further compositing (maximum composite length of 5m) and Davis Tube Recovery (DTR) analysis (conducted at a 38μm fraction and 3000G). Head and magnetic concentrate sub-samples were analysed by X-ray Fluorescence Spectrometry (XRF). All values are calculated as weighted averages over the reported interval. Interval lengths are measured down-hole and should not be interpreted as true width. 

MONTE MUANDE TRENCH SAMPLING

A total of 76 vertical trench samples have been collected from various locations across the Monte Muande deposit. The sampling programme was designed to test the eluvial horizon (in situ remnant soil and weathered bedrock) overlying the deposit which may represent a potential source direct shipping ore (DSO) requiring little or no beneficiation. Sizing and analysis is currently underway.

MONTE MUANDE PROJECT OVERVIEW

The Monte Muande magnetite/phosphate deposit is located 25km to the northwest of the provincial capital of Tete. The international highway to Zambia passes within 3km of the project. The deposit is hosted in a carbonatite and was explored during the 1980s by the Geological Institute of Belgrade (GIB). GIB completed two phases of vertical diamond drilling between 1983 and 1985 totalling 5,570m, 2,960m of which falls within the Joint Venture area. The institute also completed more than 10km of trenching and bench-scale metallurgical test work.

Using the GIB data sets in conjunction with more recent soil geochemistry and aeromagnetic surveys completed by Omegacorp, consultants Coffey Mining Pty Ltd calculated an Exploration Target of 200Mt to 250Mt to an average depth of c.40m below surface (as tabled below). Coffey also carried out a high level review of the GIB metallurgical data which indicated that a magnetite concentrate containing 67% Fe could be generated via a process of coarse grinding and magnetic separation, followed by regrinding and a flotation circuit to recover a phosphate rock concentrate containing 36% P2O5. Total magnetite and apatite recoveries of 92% and 70% respectively were recorded. Please refer to RNS announcement dated 21 March 2011 for additional details.

1 Without drillhole sampling data available, there is a higher degree of risk allotted to the indicative tonnages in the southwest extension

The information in this report relating to exploration targets should not be misunderstood or misconstrued as an estimate of Mineral Resources or Ore Reserves. Hence the term(s), Resource(s) or Reserve(s) have not been used in this context. The potential quantity and grade is conceptual in nature, since there has been insufficient work completed to define them beyond exploration targets and that it is uncertain if further exploration will result in the determination of a Mineral Resource.

The information in this release that relates to Exploration Results is based on information compiled by Managing Director Ben James (BSc). Mr James is a Member of the Australasian Institute of Mining and Metallurgy, is a Competent Person as defined in the Australasian Code for Reporting of exploration results and Mineral Resources and Ore Reserves, and consents to the inclusion in the report of the matters based on the information in the form and context in which it appears.

CONTACT DETAILS

Baobab Resources PLC

Ben James: Managing Director Tel: +61 8 9430 7151

Jeremy Dowler: Chairman Tel: +44 1372 450529

Grant Thornton Corporate Finance

Gerry Beaney / David Hignell Tel: +44 20 7383 5100

Shore Capital

Jerry Keen / Toby Gibbs Tel: +44 20 7468 7964

Fortbridge Consulting

Matt Beale Tel: +44 7966 389 196

NOTE TO EDITORS

JOINT VENTURE DETAILS

On 15 November 2010 the Company announced the signing of a Joint Venture (the 'Joint Venture') with North River Resources plc ('North River') in relation to North River's Muande project (the 'Muande Project') in the Tete province of Mozambique. The Muande Project comprises two exploration licences covering an area of 338km² located approximately 25km northwest of the provincial capital of Tete and contiguous with Baobab's Tete project.

North River Resources plc is an AIM listed multi commodity resource development company, focussed on southern Africa. Its current portfolio includes significant gold, base metal and uranium assets in Namibia and uranium, gold and copper assets in Mozambique. North River has an active development plan with the aim of generating production in the near term. North River is approximately 45% owned by AIM listed Kalahari Minerals plc.

Baobab Resources plc is actively developing iron / vanadium / titanium resources at its Tete Project in Mozambique. With a view to consolidating its strategic position in the Tete area, the Company approached North River with the objective of entering into an unincorporated Joint Venture relationship for the purpose of undertaking exploration activities at the Muande Project and, subject to exploration success, developing mining operations.

A legally binding Heads of Agreement outlines a three stage investment to earn an increasing participatory interest in the Project. North River has the option to participate pro-rata at both Stage 2 and 3 to maintain their 40% interest in the Project.

·; Stage 1 - Baobab commits to funding a First Work Programme at a cost of not less that US$625,000 over a period of not less than 12 months. The work programme will include 2,000m of diamond drilling. Baobab's participatory interest in the Project upon the completion of Stage 1 will be 60%.

·; Stage 2 - Subject to having completed the First Work Programme satisfactorily Baobab shall have the exclusive right to undertake a Pre-Feasibility Study over a period of not less than 12 months. Against Baobab having completed the Pre-Feasibility Study, its participatory interest in the Project shall increase to 75% (if North River elects not to participate).

·; Stage 3 - Upon completion of the Pre-Feasibility Study, Baobab will have the option to increase their participatory interest by an additional 15% (to 90% if North River elects not to participate) by undertaking and funding a Definitive Feasibility Study over a period of not less than 18 months.

**ENDS**

For further information please visit www.northriverresources.com or contact:

North River Resources plc

North River Resources plc is an AIM listed resource exploration and development company. Its current portfolio includes gold, base metal and uranium assets in Namibia; uranium, and base and precious metal interests in Mozambique. North River's strategy is to identify, acquire and develop a portfolio of resource opportunities in sub-Saharan Africa at various stages of development in order to create value for its shareholders. The Company has a highly experienced board and management of industry and corporate professionals, led by David Steinepreis and Luke Bryan.