Operations & Exploration Update September 2014 Quarter

20 October, 2014 Mwana Africa PLC ("Mwana", the "Group" or the "Company") Quarterly Operations and Exploration Update - September 2014 Quarter Mwana Africa is pleased to provide an update on operations and explorationactivity for the second quarter ending 30 September, 2014 (Q2 2015). Operational HIGHLIGHTS GolD - Freda Rebecca (Zimbabwe) * Gold production rose by 23% to 16,555oz, against 13,503oz in the previous quarter as a result of improvements in feed grade, recovery and milled tonnes * Tonnes milled rose by 21.3% to 319,768t (Q1 2015 263,531t) and the average feed grade was 9% higher at 2.25g/t (2.07 g/t in Q1 2015) * Feed grade improved as the main production stopes were fully available and intersected expected grades * Gold recovery for the quarter was 4.2% higher at 80% compared to 76.8% in Q1 2015 * Cash costs for the quarter under review fell 18% to US$880/oz from US$1,078 /oz in Q1 2015, whilst all-in sustaining costs decreased by 17% from US$1,283/oz in Q1 2015 to US$1,061/oz in Q2 2015 demonstrating the mines capability to remain profitable in a lower gold price environment * The average gold price received during the period was 2% lower at $1,272/ oz, (Q1 2015 $1,296/oz) NICKEL - TROJAN NICKEL MINE (ZIMBABWE) * Nickel in concentrate production 5% higher at 1,989t (Q1 2015 1,902t) due to a 3% increase in the tonnes mined to 160,741 tonnes from 155,610 tonnes from the previous quarter as the refurbishment of equipment programmes was completed * Head grade 2% lower at 1.496% (Q1 2015 1.519%) due to the temporary mining of lower grade massive ores in accordance with BNC's mine plan * Recoveries down 2% to 82.5% (Q1 2015 84.1%) * Nickel sales 7% higher at 2,008t (Q1 2015 1,871t) * Cash costs increased by 1% to US$13,900/t (Q1 2015 US$13,750/t) and all-in sustaining costs decreased by 1% to US$14,566/t (Q1 2015 US$14,776/t) * The operation's return to profitability has allowed us to reverse previous provisions for deferred tax of $4 million for the 6 months to September, carried in the accounts as an asset. The reversal is an accounting adjustment with no cash flow impact. * 5% increase in average nickel price received to US$18,592/t (Q1 2015 US$17,745/t) NICKEL - BINDURA SMELTER AND REFINERY (ZIMBABWE) * Post the approval to restart the smelter, preparatory work is progressing well with the core project team in place * Key equipment orders and contracts have been made including for the control and instrumentation, the furnace off gas system, converters, the precipitator overhaul, furnace and converter bricks, transformer inspection, cleaning and testing, cooling system coolers, engineering design and project support and converter repairs * The submission to the Environmental management authority EMA will be made during October 2014 * Financing discussions are advancing in relation to the smelter. Diamonds - Klipspringer (South Africa) * Retreatment of the Marsfontein fine residue tailings (slimes) at the Klipspringer Mine has produced 32,850 carats (Q1 2015 23,750 carats) during the quarter, an increase of 38% on the previous quarter * An average price of $21 per carat was achieved during the quarter * Latest diamond sale covers 70% of mine care and maintenance costs * Steady-state production continues and efforts to increase the DMS feed rate are being investigated EXPLORATION highlights GOLD - Zani-Kodo (dEMOCRATIC REPUBLIC OF CONGO - drc) * Kodo footwall resource conversion drilling programme completed and 26koz of near surface, open-pittable mineralisation converted to indicated status Copper/cobalt - SEMHKAT/Hailiang JV (dEMOCRATIC REPUBLIC OF CONGO - drc) * The 2014 exploration programme is underway, with eight drill rigs operating on several targets * On the Kawesitu licence visible mineralisation was intercepted over considerable widths, and at Niton, measurements have confirmed the presence of copper * Detailed results will be reported as soon as assay results have been received and processed Kalaa Mpinga, CEO of Mwana, commented: "We have continued to invest in making our operations more stable and are nowdemonstrating the positive impact of that investment. Arguably, the mostimportant decision has been to begin the process of restarting the Bindurasmelter at a cost of $26.5 million. The smelter is set to be restarted in H12015 and will produce nickel leach alloy. At Trojan we continue to ramp up to steady state production, the tonnage minedincreased as a result of the refurbishment programme which which is expected tobe completed in December 2015. At the Freda Rebecca gold mine, gold production increased quarter on quarterwith higher grades of ore drawn from underground and the mill throughput beingaugmented by the processing of surface material. The modifications implementedin the previous quarters appear to be bearing fruit and we look forward tomaintaining a more consistent operating performance in the coming quarters. Recovery of diamonds from tailings continues to generate cash flows thatsignificantly contribute to the Klipspringer mine's continuing care andmaintenance programme. In the DRC gold resources have been reclassified atZani-Kodo while copper/cobalt exploration is gaining momentum at the Semhka/Hailiang joint venture. Overall the Company remains cashflow positive and continues to make encouragingprogress and we look forward to building on this momentum in the thirdquarter." For further information please visit www.mwanaafrica.com or contact: Mwana Africa PLCKalaa Mpinga, CEO Tel: +44 (0) 20 7654 5580Caroline Mathonsi, Investor Relations Tel: +44 (0) 20 7654 5580 Nominated Adviser and BrokerPeel Hunt LLPMatthew Armitt / Ross Allister Tel: +44 (0) 20 7418 8900 Public RelationsRussell and Associates Tel: +27 (0) 11 880 3924James Duncan