Proposed sale of Mali Subsidiary

PREMIER AFRICAN MINERALS LTD - Proposed sale of Mali Subsidiary

PR Newswire

London, January 30

30 January 2013

Premier African Minerals Limited (`Premier' or `the Company')

Premier African Minerals Limited, the AIM quoted multi-commodity naturalresource company with mineral projects located in Western and Southern Africa,is pleased to announce that it has entered into a non-binding Memorandum ofUnderstanding (`MOU') for the sale of the Company's Mali subsidiary, G and BAfrican Resources Mali SARL (`Mali Sub') to Ethiopian Potash Corp. (`EPC') (TSXVenture: `FED'), an Ethiopian focussed potash company. The sale would besatisfied by the issue of 20,000,000 new shares in EPC. Mali Sub holds certainrights to acquire exploration licences in Mali, primarily prospective, forpotash. The Board of Premier stated that it was reviewing opportunities torealise the value of its Mali project and operations in its Admission Documentdated 4 December 2012.

The MOU includes a number of complex transactions that are subject to finalagreement by all parties and in some instances approval by the Toronto StockExchange (TSX) and EPC shareholders. Further details of the MOU can be found inthe press release of EPC to be found on its website at www.ethiopianpotash.com.

Conditions precedent will include, among other things, due diligence, theexecution of mutually satisfactory definitive agreements among the parties andobtaining all required approvals, including but not limited to TSXV andshareholder approvals, and there can be no certainty that the contemplatedtransactions will close.

George Roach, Premier CEO said, "This transaction allows Premier to retainexposure to the Mali Sub properties and gain exposure to the highly prospectiveDanakil Property in Ethiopia through its shareholding in EPC, whilst avoidingthe significant exploration expenditure required to quantify the projects'potential. Furthermore, Premier is now able to acquire listed securities in theform of 20m EPC shares. Consequently, this transaction underlines our abilityto source projects and crystallise value through either development or acorporate transaction for the benefit of our shareholders.

"On a wider level, we continue to implement our business strategy of buildingshareholder value through strategic, cost-effective acquisitions and jointventure partnerships, whilst advancing our multi-commodity portfolio thatalready consists of pre-production assets and early stage exploration projectsprimarily in Zimbabwe and Togo."

For further information and full details of the MOU, please visit www.premierafricanminerals.com or contact the following: