Operations and Exploration Update

10 August 2011

Mwana Africa PLC

("Mwana", the "Group" or the "Company")

Operations and Exploration Update

Mwana Africa PLC is pleased to provide an update on operations and exploration activity for the quarter ended 30 June 2011.

Highlights

Freda Rebecca

·; Gold production of 8,224oz in the three months to June 2011, exceeding the Phase 1 target rate of 2,500oz per month

·; Increased gold resource (1,670koz Indicated and 640koz Inferred at 1.5g/t cut-off)

Zani Kodo

·; Two rigs completed twenty five holes during the period for a total of 6,173m drilled. A total of 2,401 samples were generated.

·; Encouraging drilling results at Zani Central continue to confirm the geological model intersecting the mineralised horizon as predicted.

Freda Rebecca Gold Mine

A total of 8,224 ounces ('ozs') of fine gold were produced during the quarter ended June 2011. Average monthly production was 2,741oz (Phase I target 2,500 oz per month) despite some downtime required at Mill 1 for the replacement of the discharge grate and to allow time for the connection of Mill 2 to the common circuit production.

Note: figures shown are unaudited and may vary upon final audit.

As announced on the 16th of June 2011, the Phase 2 construction programme was completed with Mill 2 being successfully commissioned on time and within budget. The ramp up to Phase II production levels has commenced. Phase 2 annualised production target rate of 50,000oz per annum (4,167 oz per month) is expected to be reached towards the end of the third quarter of 2011.

Underground ore production is being expanded to meet Phase II ramp up. June 2011 saw the commissioning and slot cutting of block 7 ahead of Mill 2 start up to sustain underground volumes. Head grade for the quarter was therefore marginally below plan.

Mill 1 has performed to expectation; focus during the next quarter will be on optimising operating parameters for the combined milling circuit. Once this optimisation is complete, further improvements will be retro-fitted to the existing Mill 1 circuit in order to improve recoveries by optimising mill speed, liner configuration and associated liner wear issues and bringing commonality to the dual circuit.

The Plant recovery has improved progressively since operations resumed, with an average recovery rate of 83% achieved during the last quarter.

In April 2011, the Company announced increased mineral resources at Freda Rebecca, which have been independently verified by SRK Consulting (UK) Limited. Based on a cut-off grade of 1.5g/t gold, the Indicated Mineral Resource increased from just over 1 million ounces to 1.67 million ounces of gold while the Inferred Mineral Resource, as similarly defined, is now 0.64 million ounces.

Effective Date: September 2010; JORC compliant gold resource at 1.5g/t cut-off

* 100% Mwana Africa, with commitment to sell 15% to local partner

This increased resource will form the basis of an extended life of mine at Freda Rebecca.

Further information about Freda Rebecca Gold Mine can be found at: www.mwanaafrica.com/oe/zim_freda.asp

Zani-Kodo JV

Drilling continued with two rigs active during the quarter to June 2011 and twenty five holes were completed during the period for a total of 6,173m drilled. A total of 2,401 samples were generated during the quarter.

Le Badolite 

Exploration drilling was completed at the Badolite target area. Continuous mineralisation has been identified over a strike length of 600m. An ore shoot plunging towards the SE has been identified with increased widths occurring at an inflection point where the dip of the orezone shallows.

Final results were received for the Badolite area during the quarter:

The final results status of the Badolite target is shown in Figure 1.

Zani Central 

Drilling continued at the Zani Central target. Broad mineralized intersections characterized by abundant arsenopyrite were visible in the majority of holes. Continuous mineralisation has been identified over a strike length of 650m. The zone remains open to the south and at depth. All results received for the quarter are as follows:

The results status of Zani Central at end June 2011 is shown in Figure 2.

In August 2011 the Company announced a resource update for Zani Kodo. At a 0.5 g/t cut-off the resource is as follows:

Effective Date: August 2011; JORC compliant gold resource at 0.5g/t cut-off for Kodo Main and Le Badolite.

Further information about Zani Kodo can be found at: http://www.mwanaafrica.com/oe/drc_zani.asp

Figure 1: Results status, June 2011, Le Badolite area.

(See link below) 

Figure 2: Results status, June 2011, Zani Central area.

(See link below) 

Bindura Nickel Corporation

BNC's assets remained on care and maintenance for the quarter ending 30 June 2011, successfully maintaining the integrity of the assets whilst restart funding is sought.

The Trojan Mine remains ready to resume production, with all the processes, up to the tertiary crushers, having been hot commissioned in the previous financial year. Limited development and drilling continues to be undertaken at Trojan. The mine hoisted 1,694t of waste and 823t of ore during the quarter. Total underground development during the care and maintenance programme stood at approximately 976m at the end of June 2011. The current development is targeting key priority areas included in the restart plan.

Further information about Bindura Nickel Corporation can be found at: http://www.mwanaafrica.com/oe/zim_bnc.asp

Katanga Concessions (SEMHKAT)

Figure 3 SEMHKAT prospect areas.

(See link below) 

Kibolwe

Work concentrated on investigating the eastern copper anomaly at Kibolwe, involving pitting and sampling of pits. A total of 31 pits were dug and the data collected is being analysed.

Kitemena-Kitungulu-Kamungoti ("KKK")

The KKK area is underlain by Lower Kundelungu tillites, argillites and shales. Soil geochemical surveys conducted in 1998 and 2001 located copper anomalies in the area. Potential for Cu-Pb-Zn deposits is indicated by the regionally coincident Cu-Pb-Zn anomalies in Kitungulu and Lunsano areas.

Field camps have been established in the KKK area during the past quarter. Detailed geological mapping of the area will be carried out. In addition to the extension of regional geochemical surveys, infill geochemical surveys are also planned. It is anticipated that some of these will yield drill targets.

Further information about the Katanga Concessions can be found at http://www.mwanaafrica.com/oe/drc_katanga.asp 

Klipspringer Diamond Mine

Recovery operations continued during the period under review. The mine has been dewatered to below the main pump station. Cleaning the shaft bottom of the remnants of mud and debris are ongoing.

The following recovery work has been undertaken in this quarter:

·; Main haulage road from the plant to the mine entrance re-constructed,

·; Battery locomotives, air loaders and hoppers removed from underground for maintenance and repairs,

·; Substation on 4 level re-built and temporary electrical reticulation installed from 4 to 7 Level,

·; Re-establish the underground haul road (decline) to 6 level,

·; All electrical reticulation equipment removed from underground and transported to Johannesburg.

In preparation for the dry winter months when the risk from wild fires increases, vegetation has been cleared around buildings including the main offices, change house, plant and surface transformers and created / improved existing fire breaks.

Management has completed a restart model and with a resurgent diamond market in evidence, will be reviewing the options to restart operations at the mine.

Further information about Klipspringer Diamond Mine can be found at: http://www.mwanaafrica.com/oe/sa_klipspringer.asp

Charl du Plessis, Executive Vice President Exploration of Mwana Africa, who holds a PhD and is a Member of the AusIMM, and, James Arthur, Executive Vice President Operations of Mwana Africa, Fellow of the Southern African Institute of Mining and Metallurgy, are 'Qualified Persons' as defined in the AIM Rules. The exploration and resource information contained in this report pertaining to Zani Kodo and SEMHKAT have been reviewed and verified by Dr Du Plessis, and, the resource information contained in this report pertaining to Trojan mine, Shangani mine, Hunters Road and Freda Rebecca Gold Mine have been reviewed and verified by Mr. Arthur. 

Enquiries:

Mwana Africa PLC Tel: +44 (0)20 7654 5580

Donald McAlister / Lorenz Werndle

Nominated Adviser and Broker

Ambrian Partners Limited Tel: +44 (0) 20 7634 4700

Anthony Rowland / Jen Boorer

Joint Broker

XCAP Securities plc

Jon Belliss / John Grant / Parimal Kumar Tel: +44 (0)20 7101 7070

Public Relations

Merlin Tel: +44 (0)20 7726 8400

David Simonson

Anca Spiridon

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