Operational Update

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30 September 2014

Nyota Minerals Limited

('Nyota' or 'the Company')

OPERATIONAL UPDATE

Nyota Minerals Limited (ASX/AIM: NYO), the gold exploration company in East Africa, is pleased to provide an operational update for its 100% owned Northern Block exploration licences in Western Ethiopia ('Northern Blocks') (Figure 1).

Overview

· Solid progress made in advancing Mining Licence application to rapidly exploit the Abay River (or Blue Nile) gravel terraces through the development of a mechanised mining and processing operation.

· Positive discussions have led to preliminary planning for the initial requirements for phase 1 operations and bringing onboard appropriate expatriate supervisory staff.

· Defined future work programme for the hard rock targets on Northern Blocks having received and analysed the results from the field work conducted up to the rainy season in July.

o Highlights include rock chips samples of up to 8.1g/t gold and trench channel samples of up to 3.2m @ 2.89g/t gold at Boka West.

o Contrasting with the decision not to apply for the renewal of the Dura Block of the Towchester Licence, which includes the Bar and Cloen targets.

· Timing of programme is subject to renewal of Northern Block licences and on-going discussions regarding mining of alluvial gold deposits

Richard Chase, Chief Executive Officer, said "I am pleased with the progress made in respect to a Mining Licence to exploit the potential of the gold-bearing river terraces located on our Northern Blocks. If successful, we will have highlighted a low cost opportunity to rapidly generate cash flow in the immediate future. We have also prioritised our hard rock gold targets across the tenures through full analysis of exploration work. With this in mind, I look forward to providing updates in respect to both these areas over the coming months.

"Field work is expected to recommence during Q4 2014; although the rate of progress will be influenced by the renewal of the licences (which is pending) and by the outcome of discussions with the Ethiopian Ministry of Mines concerning the alluvial mining licence. We will also continue to evaluate new opportunities inside and outside of Ethiopia and to establish the best path forward for Nyota.

The past year has been characterised by a significant amount of corporate restructuring and considering the difficulties I would like to thank our small Ethiopian team for their hard work, resilience and dedication."

ALLUVIAL MINING LICENCE APPLICATION

Further submissions and discussions have been had with the Ethiopian Ministry of Mines regarding the potential to establish a mechanised gold mining project working the gravel terraces and other alluvial deposits of the Abay River (or Blue Nile) that transect the Northern Block licences (the blue shaded area on Figure 2).

The water level in the Abay River will rise significantly when the Grand Ethiopian Renaissance Dam is complete. Nyota's proposal has, as its main objective, the rapid development of a cost-effective operation for the maximum recovery of gold from the catchment area that will be flooded before dry mining of the gravels becomes impossible. The level of the Abay River when flooded will not affect the hard-rock targets that are being explored by Nyota, specifically including the Boka West and Benodokoro targets.

Nyota has received positive indications from the Ministry of Mines and broad agreement appears to have been reached on how the project would proceed. This includes the term of the licence, which would be for an initial term of five years and subject to the extent of the flooding that occurs during the time. As a result of which a revised proposal has been submitted that includes a reduction in the licence area to an amount practically mineable in that period and for which access and logistics are the most straight-forward.

Nyota's submission to the Ministry envisages a three-phase build-up of mining and processing in each of three principle areas (totally approximately 48 km2) wholly within the Towchester exploration license. Activity would commence with a programme of 10m square pits dug on a regular grid, with the gravels logged and processed using a suitable plant to delineate those with higher grade, sufficient to support a large scale mechanised mining operation.

In expectation of a successful outcome, discussions are ongoing for the initial requirements for phase 1 operations and bringing onboard appropriate expatriate supervisory staff.

Until the first phase is complete, Nyota is not able to provide any guidance on production or cash flow due to its listing obligations and reporting requirements of the JORC Code (2012).

BRANTHAM

100% owned by Nyota

Work in the Brantham licence area focused on those targets and objectives prioritised by the independent technical review undertaken by SRK Exploration in February; as reported previously and is available on the Company's website www.nyotaminerals.com.

The Brantham licence is characterised by a northwest alignment of anomalies and targets extending for approximately 45km from Boka in the southeast to Tsoli-Mole in the northwest (Figure 2), running through Bendokoro in the middle and interpreted to be located along a NW-SE trending regional scale structure.

Boka West

Field work at the Boka West target has comprised additional trenching and sampling; detailed re-mapping on the lithological contacts; and a geophysical survey (gradient array, induced polarization) with the primary aim being to confirm the relationship between the marble / meta-sediment contact and gold mineralisation and to infill a number of gaps between trenches dug in prior years; the results for which are summarised in the annual report for the year ended 30 June 2013.

The best sample results from the current year are given in the tables below.

Best rock chip sample assays (2014 field work season) - only those greater than 1g/t Au*

Best Boka-West Trench Channel Samples (2014 field work season) - Intersections greater than 0.5g/t Au*

Note: Refer to JORC (2012) Table 1 for information on compositing intervals and sample types. The samples reported are selective and are not representative of all samples taken during the year. They are considered to be confirmation of previous results and do not constitute a significant new discovery.

Besides the success of the field mapping, the geophysical survey also clearly delineates the main zone of mineralisation as being of high resistivity and high to medium chargeability relative to parallel, bounding zones of high chargeability but low resistivity. The dominant north-northwest strike of the geophysical trends is coincidental with the overall strike of the geology as mapped at the surface.

The ultimate objective for the 2013/14 season had been to progress the project to the point where drilling could be undertaken prior to the rainy season (late June / early July) but in the event this was not possible. The primary aim has, however, been satisfied and Nyota considers that the results continue to support the geological model and to justify an initial drill programme. It is therefore proposed to carry out this work as quickly as possible in the renewal period and further announcements will be made in due course.

Bendokoro

Field work this year comprised a regional compilation and review of geochemical data and the extension of the soil sampling grid to the east of the northern target area where soil survey data is open (the so called "Bendokoro east target"). The preparation of soil samples has been done in Ethiopia, however multi-element analysis will be conducted overseas and assays are outstanding.

Drilling in 2012 was based mainly on surface mapping and geochemical sampling; prior to the results of the trenching being available. Drilling results (Quarterly Report, announced 31 July 2012) demonstrated that there is primary gold at Bendokoro but intercepts were either narrow and high grade associated with silicification and quartz veining or wider but generally lower grade (typically 0.40 - 0.55g/t). Recent work has led to the recommendation for additional drilling during the next renewal period to target areas of more potential significance economically.

TOWCHESTER

100% owned by Nyota

Significant exploration was undertaken in the Towchester licence area, focusing especially on an investigation of the Bar and Cloen targets in the more remote Dura Block. These targets were given a high ranking by SRK Exploration but the paucity of data meant confidence in the assessment was low.

The results of the fieldwork this year have shown there to be anomalous gold mineralisation in both, but most especially at Cloen. However, taking in to consideration the very difficult logistics and the lack of infrastructure, Nyota has concluded that this block of the exploration licence should be relinquished. Further exploration expenditure could not be justified as the likelihood of discovering a deposit that is economically viable at this time is low and without a commitment to exploration expenditure the chances of the license being renewed are also low.

Nyota has concluded that work on the Gombo block, which is the majority of the licence area and is readily accessible from existing infrastructure, should continue and would complement that on the alluvial gravels on the southern flanks of the Abay River. The application for the renewal of the Towchester license therefore includes a reduction in area of 45%, to 458 km2 (a 25% reduction being required by law).

Details of the work undertaken and the results are given below.

Boka Sirba Skarn

A further rock-chip and channel sampling exercise was undertaken at Boka Sirba; the objective being to verify whether the prior years' disappointing results (that were significantly different to early exploration success in 2010/11) were valid and, in order to improve understanding, to separately sample the skarn and the quartz veins.

35 continuous rock chip channel samples of approximately 1m each were taken across larger areas of outcrop and 30 grab samples were taken from smaller ouctrops. All of these samples returned assays of equal to or less than the analytical detection limit of 0.02 g/t of gold.

The cumulative work undertaken to evaluate the Boka Sirba skarn has failed to identify significant mineralisation and it has been impossible to replicate the initial results form 2010/11. Nyota therefore concludes that this target does not have the potential to host an economic gold deposit.

Bar Target

The Bar target is located in the Dura Block and is defined by a gold anomaly in heavy mineral concentrates (6-12 grains of gold per sample), stream sediment samples (6-62 ppb Au) and anomalous rock chip samples (41-102 ppb Au) overlapping with an anomalous copper-lead-zinc association in stream sediment samples.

The target comprises predominantly of meta-sedimentary rocks, including marble, in contact with meta-intrusives. A hydrothermal type (vein and shear type) or skarn - type gold or polymetallic deposit is postulated.

Samples were typically taken from two distinct and potentially mineralised rock types. The first is a chlorite - quartz - feldspar - sericite schist with disseminated sulphides, iron and manganese; weathering to a gossan at outcrops.

28 continuous rock chip samples (roughly 1 metre intervals) were collected from two large outcrops that occur in the Kela River valley in the north west of the target area where the river has cut across strike, giving excellent exposure for mapping and sampling. A further 35 rock chip samples have been picked from spatially separate but similar mineralised bodies.

Of the continuous rock chip samples, only two were materially above the analytical detection limit: one of 0.27g/t and one of 0.11g/t. These 1m channel samples are not next to each other and all other samples assayed 0.1g/t or less.

Of the 34 grab samples only four assayed in excess of the detection limit of 0.02g/t gold, ranging from 0.12 to 0.2g/t. The other sample is of a quartz vein in the far south of the target area and returned 0.62g/t.

The second distinct rock type to be sampled is a skarn of quartz, plagioclase, epidote, garnet and actinolite with minor sulphide and iron oxide. 10 rock chip samples were collected, all of which analysed at or below the analytical detection limit of 0.02g/t gold.

Fieldwork at the Bar target revealed erratic and very low levels of gold in meta-sediments and negligible or no gold in the skarn. Nyota has therefore concluded that it is not prospective for potentially economic gold mineralisation.

Cloen Target

The Cloen target is located in the Dura Block. It is accessible only on foot and is approximately two hours walk from the nearest point accessible by 4WD vehicle.

The target is defined by high gold counts in heavy mineral concentrates (7-12 grains) and stream (6.5-94 ppb) and rock chip samples (103-1060 ppb) over-lapping with higher values of copper (102-4450 ppm), silver (0.67-12.2 ppm) and zinc (51-83 ppm).

As with Bar, the work at Cloen focussed on geological mapping and sampling along traverse lines to identify a detailed area for follow-up.

The dominant lithologies are schists of various compositions with a strong northwest - southeast foliation and structural orientation, consistent with the regional geology. In the east a sericite-quartz-feldspar-chlorite schist is interpreted to be an intermediate meta volcanic, whilst the feldspar-sericite-quartz schist in the west is interpreted to be acidic meta volcanics. Barite, a magnetite-rich psammitic meta-sediment and float of hematite-magnetite (possibly banded ironstone) all occur locally and are suggestive of volcanogenic deposition and possible mineralisation.

The main area of interest identified is lenticular in shape and approximately 1.5km long x 400m wide located at the contact between the two meta-volcanic units. A core of mylonitisation indicates an area of high strain whilst lenses of sulphide-bearing schists (and related gossan) are arranged around this and may have provided trap sites for mineralisation.

Systematic mapping and sampling was greatly helped by a river that cuts across the focus area. This enabled 16 continuous rock chip channel samples of 2m each to be taken across the strike of 3 sulphide-rich units mapped as discontinuous bands approximately 400m long and up to 35m wide on the east side of the mylonite.

Six of the channel samples assayed between 0.2 and 0.3 g/t to give a total of 12m at an average grade of 0.25g/t gold. On the same line, 8m away, three samples assayed between 0.16 and 0.51g/t to give 6m at an average grade of 0.33g/t gold. The highest assay of 0.51g/t came from a locality approximately 11m south of a grab sample taken in 2013 that assayed 1.06g/t. The remainder of the 7 rock chip channel samples returned Au @ 0.02 to 0.13g/t.

A further 33 rock chip samples were taken along the river traverse, to the east and the west of the mylonite core. All of these samples assayed between the detection limit (0.02g/t) and 0.13g/t.

Across the target area 44 other rock chip samples were taken. Two samples picked up as grab samples from gossan approximately 150 meters to the north of the anomalous channel samples returned 0.45 and 0.55g/t Au. Another 3 samples grabbed from gossans within the focus area returned 0.17 to 0.46g/t Au.

All the remaining samples were less than or equal to the analytical detection limit of 0.02g/t gold.

The north-west to south-east strike and elongation of the mineralised area at the Cloen target led Towchester to extend the exploration area along this general trend, following the contact between the acidic and intermediate meta-volcanics, to cover another approximately 40km2. These areas are very hard to access and had to be traversed on foot. Although the NW-striking lithologies of the main Cloen target area extend to the northwest and the southeast there is no evidence of any more lenses or areas of potential mineralisation. To the North one outcrop that might possibly have been the extension, a 2m wide disseminated sulfide-rich schist with abundant concordant quart veinlets assayed 0.2g/t gold.

Fieldwork clearly demonstrates that anomalous gold mineralisation exists at Cloen, however the continuity and grade of the mineralisation identified and the location of the target itself (with absolutely no infrastructure and no access possible by four wheel drive at this time) means that Nyota considers further work not to be justified at this time. Furthermore, systematic interpretation of remote sensing data followed by field work identified no extensions or potential new lenses of mineralisation along the NW-SE trend.

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

Competent Person

The information in this announcement that relates to Exploration Results is based on information compiled by Richard Chase, a Competent Person who is a Member of the Institute of Materials, Minerals and Mining and a Fellow of the Geological Society of London. Mr Chase has sufficient experience which is relevant to the activities being undertaken and the results that he is reviewing to qualify as a Competent Person as defined in the 2012 Edition of the Australasian Code for the Reporting of Exploration Results and as a qualified person under the AIM Note for Mining, Oil and Gas Companies. Mr Chase consents to the inclusion in this announcement of the matters based on his information in the form and context in which it appears. Mr. Chase is Chief Executive Officer and a full-time employee of Nyota Minerals Limited.

With respect to all references to previous announcements of exploration results made by Nyota:

The Company confirms that it is not aware of any new information or data that materially affects the information included in the original market announcement.

JORC Code, 2012 Edition - Table 1 report template

Section 1 Sampling Techniques and Data

(Criteria in this section apply to all succeeding sections.)

Section 2 Reporting of Exploration Results

(Criteria listed in the preceding section also apply to this section.)