Operations and Exploration Update

4 May 2011

Mwana Africa PLC

("Mwana" or the "Company") (AIM: MWA)

Operations and Exploration Update

Mwana Africa PLC is pleased to provide an update on operations and exploration activity for the quarter ending 31 March 2011.

Highlights

Ø Freda Rebecca: gold production of 8,577oz in the three months to March 2011 exceeding the Phase 1 target rate of 2,500oz per month.

Ø Freda Rebecca: increased gold resource (1.67m oz Indicated and 0.64m oz Inferred) expected to form the basis of an extended mine life.

Ø BNC: off-take agreement signed with Glencore International with operations ready to re-start subject to funding.

Ø Zani Kodo: encouraging drilling results at Badolite continue to confirm the geological model intersecting the mineralised horizon as predicted.

Freda Rebecca Gold Mine

A total of 8,577 ounces ('ozs') of fine gold were dispatched during the quarter ending March 2011. This represents an improvement of 10.7% on the previous quarter (7,747ozs).

Since the recommencement of operations in September 2009, production tonnage, grade and recovery have made steady progress. Ramp-up to the Phase 1 annualised production target rate of 2,500 oz per month (30,000 ozs per annum) has been successfully achieved and the average monthly production rate exceeded that target in the quarter to March 2011. Phase 2 development to expand production to 50,000 oz per annum is well advanced.

A steady increase in mined tonnage from underground operations has been recorded. This is attributable to improved loader availability and the deployment of an increased number of trucking units, following the award of a load and haul contract as part of the ramp-up strategy for Phase 2.

Operational effectiveness as measured by equipment availability, running hours, and tonnes per hour have demonstrated that the milling circuit is well established and capable of handling the required volume throughputs. As a result of implementing the planned maintenance programme, involving significant upgrade work on the processing plant, plant availability has improved and has been sustained ahead of targets.

Plant recovery has improved progressively since operations resumed, with an average recovery rate of 84% being achieved during the last quarter.

As a result of these improvements, gold production has shown steady progress over the year, culminating in 3,573ozs of gold being dispatched in March 2011.

With effect from the 11th of January, Freda Rebecca joined the "uninterrupted power supply" tariff with Zimbabwe Electricity Supply Authority. Since that date, the site has benefitted from full power with no incidents of load shedding or power disturbance being recorded.

Phase 2 development at Freda Rebecca continues with the refurbishment and commissioning of the second mill planned for the second quarter of 2011. Once commissioning of the second mill has been completed, 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. Once this work has been completed, the Phase 2 annualised production target rate of 50,000oz per annum (4,167 oz per month) is expected to be achieved towards the end of the third quarter of 2011.

In February 2011, following fulfilment of the required conditions, including the provision by the Export Credit Insurance Corporation of South Africa ("ECIC") of political risk insurance for the facility, Freda Rebecca drew down the first $4m tranche of a $10m project finance facility from the Industrial Development Corporation of South Africa Ltd.

In April 2011, the Company announced increased mineral resources at Freda Rebecca. 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 is expected to form the basis of an extended life of mine at Freda Rebecca. The updated mineral resource has been independently verified by SRK Consulting (UK) Limited.

The Company will conduct limited exploration drilling of near mine surface potential on the existing mining permit with the objective of identifying further resources to expand production beyond the Phase 2 target, and, to reduce unit costs.

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

Bindura Nickel Corporation

The BNC assets remained on care and maintenance for the quarter ending 31 March 2011 and this programme continues to successfully maintain the integrity of the BNC assets. BNC has continued to sell in process inventory and dispose of quoted shares to raise cash. This has enabled the corporation to meet the costs to date of the care and maintenance programme, Trojan pre-start activities and partial payment of balances owed to creditors from own resources.

Given the recent recovery in the Nickel price and the improvement in operating conditions in Zimbabwe, management is seeking to recommence BNC mining operations in a phased manner. The first phase will be to restart the Trojan mine and to sell Nickel in concentrate. BNC announced in February 2011 that it had signed an offtake agreement with Glencore International who will purchase the concentrate produced by Trojan. BNC continues to seek finance to fund the restart of operations.

Trojan Mine

In anticipation of the re-start of operations management has carried out a program of works aimed at overhauling key components of engineering and operational infrastructure. These works, funded from the BNC balance sheet, included overhaul of the main pumping arrangements and ventilation fans and a replacement programme of shaft guides. On surface the waste handling system has been re-engineered together with a major overhaul of the surface secondary and tertiary crushers.

Preparatory work for the restart of operations has included the commencement of limited underground development (approximately 500m development completed) allowing the commissioning of underground Load Haul Dumpers, rigs and associated mining and engineering services together with shaft systems. Ore and waste hoisted to surface has allowed the successful hot commissioning of the surface waste conveyors and ore crushing facilities. The objective of the program has been to de-risk the planned restart program in anticipation of project funding. The management team at BNC has been retained during care and maintenance and have been re-mobilised and actively engaged in the pre-start program.

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

Klipspringer Diamond Mine

2,616 t were mined and 745 were carats recovered in January at the Klipspringer Diamond Mine, of which Mwana owns an equity stake of approximately 65%. Following a number of severe weather incidents in December and January, which flooded the shaft bottom and lower (7) level, a decision to stop production and development at Klipspringer for reasons of health and safety was taken.

Operations have ceased and the mine is currently in a recovery phase aimed at re-instating infrastructure that was damaged as a result of the flooding. Management are reviewing restart scenarios and timing.

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

Zani-Kodo JV

The most recent resource update for Zani Kodo in July 2010 outlined JORC compliant resources (at 1 g/t cut-off) of:

Effective Date: July 2010; JORC compliant gold resource at 1g/t cut-off

During the quarter drilling was focused on the Badolite target, 1.5km to the south of the Kodo Main deposit (Figure 1). Two diamond rigs were active and a total of 17 holes for 3,826m were completed. All holes were drilled vertically.

The drilling accurately intersected the southern continuation of the mineralised trend which is marked by the easterly dipping lithological contact between footwall metagreywacke and Banded-Iron Formations with minor black shales. The contact in this area is not exposed, being covered by transported talus material.

All the intersections at a 1g/t cut off average received during the quarter are shown below:

The location of all the results at a 1g/t cut off average to date at Badolite is shown in Figure 2.

The Directors believe that the drilling results are encouraging and indicate the following:

·; Confirmation of the geological model with drilling carried out in a "blind" area beneath talus cover and accurately intersecting the mineralized horizon as predicted;

·; The presence of continuous mineralization over a strike length of 500m;

·; Mineralisation remains open along strike and at depth;

·; The presence of two high grade shoots within the overall zone. These plunge to North-Northeast in a similar fashion to those already identified at Kodo Main to the north;

·; Mineralisation is near surface and oxidized to a maximum depth of 60m.

Further information about Zani Kodo can be found at:

http://www.mwanaafrica.com/oe/drc_zani.asp

Katanga Concessions (SEMHKAT)

No drilling has been carried out in the SEMHKAT properties during this quarter due to seasonal rains.

Exploration activity has focused on the following:

·; Updating of database;

·; Compilation of recent exploration results;

·; Planning of future exploration programmes;

·; Preparation of equipment and access routes for upcoming programmes.

The final set of assay results from drilling on the Kibolwe West area were received (Figure 3). A summary of all the intersections above a 0.5% Cu grade is shown below:

The assay results indicate the following:

·; Mineralisation splits into two discrete zones, consistent with the limbs of an easterly plunging anticline, the crestal area of which hosts the main Kibolwe mineralization.

·; Cu grades drop off towards the west

·; No further drilling is currently planned on the western extension.

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

For figures 1-3, please click on the link below:

http://www.rns-pdf.londonstockexchange.com/rns/8564F_1-2011-5-3.pdf 

Charl du Plessis, Executive Vice President Exploration of Mwana Africa, who holds a PhD and is a Member of the AusIMM, is a 'Qualified Person' as defined in the AIM Rules. The drilling and assay information contained in this presentation pertaining to Zani Kodo and SEMHKAT have been reviewed and verified by Dr Du Plessis.

Enquiries:

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

Oliver Baring - Executive Chairman

Nominated Adviser and Broker

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

Anthony Rowland / Jen Boorer

Public Relations

Merlin Tel: +44 (0)20 7726 8400

David Simonson

Anca Spiridon

Notes to Editors

Mwana Africa

Mwana Africa PLC is a pan-African resources company with operations in Zimbabwe and South Africa and exploration projects and interests in the Democratic Republic of Congo, Angola, Ghana and Botswana. The group has a diverse asset base including gold, nickel, copper, cobalt and diamonds.

In October 2005, Mwana Africa became the first African-owned, African-managed resource company to list on the Alternative Investment Market of the London Stock Exchange, through a reverse takeover of African Gold plc by a privately held mining company, Mwana Africa Holdings (Pty) Limited. Mwana Africa Holdings (Pty) Limited was itself formed in 2003.

Building on its track record and with its highly experienced team, Mwana Africa intends to pursue mining opportunities across the African continent, both independently and, where appropriate, in partnership with other stakeholders.