Q1 Operations and Exploration Report

23 April 2012

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 ending 31 March 2012.

Highlights

·; 14,280 ozs of gold produced at Freda Rebecca, average monthly production for the quarter was 4,760 ozs, an increase of 19% over the previous quarter.

·; A 41% increase of the gold resource at the Zani-Kodo project taking the total resource to 2.01Moz (based on a cut-off grade of 0.5g/t).

·; Exploration work focused on the Lunsano area of SEMHKAT was carried out, with detailed mapping, trenching, sample preparation and Niton analysis, providing positive indications of good potential deposits.

Post Period Highlights

·; Introduction of new strategic investor China International Mining Group Corporation.

·; Placing and subscription to raise $33.5m.

·; The restart of Bindura Nickel Corporation's Trojan nickel mine is a step closer following the recent fundraising, and work is focused on putting in place all the necessary measures to enable production to recommence as soon as possible.

Kalaa Mpinga, CEO of Mwana, commented:

"Our Freda Rebecca mine is in good shape, increasing gold production by a significant rate, and the progress at our Zani-Kodo project is also very positive, with a 41% increase in resource. With our recent successful fundraising securing $33.5m, and our new strategic Chinese investor onboard, we are very well placed to begin the process of restarting our Trojan nickel mine and further continue our exploration work - which is already yielding some compelling results. Mwana is really on the move, with 2012 set to be an exciting year for the Company."

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

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

Donald McAlister / Lorenz Werndle

Nominated Adviser and Broker

Liberum Capital Limited Tel: +44 (0)20 3100 2000

Michael Rawlinson / Tom Fyson / Christopher Kololian

Public & Investor Relations

Tavistock Communications Tel: +44 (0)20 7920 3150

Ed Portman / Simon Hudson / Mike Bartlett

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.

Freda Rebecca Gold Mine

A total of 14,280 ozs ('ounces') of gold was produced during the quarter ending 31 March 2012. Average monthly production for the quarter was 4,760 ozs; this represents a 19% increase in gold production over the previous quarter. During the nine month period, following the commissioning of the second milling circuit, a total of 39,539 ozs has been produced.

Table 1: Summary of Freda Rebecca Quarterly Production Results

Note: figures shown are unaudited and may vary upon final audit. Gold ounces produced incorporate gold released from or caught in 'lock-up' for each period.

Increased mill throughput together with an increased head grade and a marginal improvement in recovery resulted in increased gold production for the quarter and a reduction in the cost of production per ounce.

Tonnes mined from underground together with surface stockpiles are being well managed and are considered sufficient to ensure adequate short term requirements for mill feed. Ore is currently being sourced from three principal long term underground blocks. Development and longhole production drilling within these three areas has progressed well and has allowed a build up in inventory of fully developed and drilled reserves to meet the mine's medium term planning requirements.

The principal source of downtime during the quarter was associated with unusually high wet season rainfall which caused damage to the mine's power supply line from the local utility. However, despite the power interruptions, through ongoing focus on mill optimisation, Freda Rebecca recorded an increase in mill throughput for the period. Power supply issues have been resolved and supply is now stable.

Plant optimisation work continues with the focus on increasing plant throughput and on recovery improvement. Consultants have been engaged and are assisting management with the correct configuration of mills in terms of power draw, milling rates and grinds. Improvements in grinds and a reduction in mill ball consumption are being recorded and are encouraging. Metallurgical tests have indicated some variability in the ore characteristics which may negatively impact recovery. In order to counter these effects, a strategy of blending ore from various underground sources has been implemented during March and early indications of improvements in recovery are encouraging.

Further information about Freda Rebecca Gold Mine can be found at:

www.mwanaafrica.com/operations-and-exploration/zimbabwe/freda-rebecca-gold-mine 

Zani-Kodo JV

An updated resource calculation was carried out by BMRE Ltd in January 2012, and, in February 2012 the Company announced a 41% increase in the JORC compliant gold resource at Zani-Kodo. This covered the Kodo, Badolite and Zani Central areas. The total combined resource for the Zani-Kodo project now stands at 2.01Moz (based on a cut-off grade of 0.5g/t). This includes a JORC compliant resource at Kodo Main of 1.4Moz at an average grade of 4.02g/t. The results, along with a comparison to the previous update in July 2011 are tabulated below:

Table 2: Zani Kodo Resource Update

Note: Cut-off grade of 0.5g/t utilised

Diamond drilling

Drilling continued with three rigs active during the reporting period. 14 holes were completed up to 31st March 2012 for a total of 5,208m drilled. Drilling has commenced at two new targets - Zani South/Lulemodi and Kodo North extension.

Drilling was carried out in the following areas (Figure 1):

§ Kodo downdip extension: The final 5 holes have been completed in this area. Holes were primarily sited to target the downdip extension in the southern and northern portions of Kodo Main and to infill areas identified during the resource update. Visible mineralisation was identified in all of the holes as predicted, with widths of up to 18m.

§ Gombiri: Drilling continued at the Gombiri area, which is immediately south of Zani Central.

§ Zani South: Drilling was initiated in this area which aims to test the southerly continuation of the Zani-Kodo trend and steeply dipping hangingwall structures related to a major gold in soil anomaly.

§ Kodo North Extension. Field mapping has successfully identified mineralized banded iron formations to the north of a fault zone and drilling is ongoing.

Kodo Downdip Extension

Results obtained during the reporting period are tabulated below and shown in Figure 2.

Table 3: Selected assay results received during Q1 2012, Kodo area.

*Measured widths not true widths

The results indicate the following:

§ Continuous mineralisation with consistent grade present in all holes.

§ The two broad zones in Hole KDODD070 are related to thrust repetition as identified in adjacent holes.

§ An exceptionally high grade zone was intersected in hole KDODD075.

§ The results from the northern holes have extended the mineralised envelope significantly in this direction.

§ The drilling has allowed much better definition of the mineralised wireframe in areas where limited or no data was present, notably in the southern portion of Kodo Main.

Gombiri

Results received during the reporting period are tabulated below:

Table 4: Selected assay results received during Q1 2012, Gombiri area.

*Measured widths not true widths

The results at Gombiri are disappointing, primarily due to the thickening of a metadolerite sill which has truncated the mineralized zone and faulting in the area. A detailed geological interpretation is in progress and a decision on whether to continue drilling here will be made once assays have been obtained for a complete section across the area.

Kodo Northern Extension

This area occurs to the north of Kodo (Figure 1). Mineralised banded iron formations defining the Zani-Kodo trend have been identified by field mapping. This has shown that a major NE trending fault zone has resulted in approximately 150m of predicted strike of the trend being faulted out. Two mineralized zones have been identified in core, similar to the Kodo North area. A minimum of 400m of strike length is present in this area.

Zani South - Lelumodi

This area is situated along the southern extension of the Zani-Kodo trend (Figure 1) and contains a major gold in soil anomaly and significant artisanal activity. A major NE trending fault displaces the contact between Zani South and Gombiri (Figure 1). The area is interpreted to occur at a slightly higher structural level than Kodo Main, with steep dips in the area interpreted as hangingwall splays from a basal thrust. A fence line of eleven holes is in progress which will allow a complete cross section to be constructed and allow the geological setting of the mineralized zones to be clarified (Figure 1).

Initial observations are positive, with three visible mineralized zones identified. Importantly these appear to become more 'shallow dipping' at depth in a similar fashion to Kodo Main. Good results in this area could open up a further 3 kms of the Zani-Kodo trend to the possibility of significant gold resources.

Zani Kodo Forward Plan

§ Continued drilling in the Zani South area and completion of the first fence line as shown in Figure 1. Initial assay results are anticipated in April and a detailed forward drilling plan will be designed based on these.

§ Drilling to continue at Kodo Northern extension.

§ Drilling of two shallow holes to complete a full fence line at Gombiri. The decision to continue drilling in the area will be dependent on results from these holes.

§ Drilling of a single shallow hole at Kodo to generate a metallurgical testwork sample

§ Soil sampling in the Mt Lenga area to the northeast of Kodo will continue.

§ Ongoing geological interpretation and wireframing of mineralized envelopes.

Further information about Zani Kodo can be found at:

www.mwanaafrica.com/operations-and-exploration/drc/zani-kodo-project

Bindura Nickel Corporation

BNC's assets remained on care and maintenance for the quarter ending 31 March 2012, successfully maintaining the integrity of the assets whilst restart funding was sought.

The Trojan Mine remains ready to resume production subject to BNC securing the required restart funding, with all the processes up to the tertiary crushers having been hot commissioned in the previous year. With Mwana Africa raising funds in April 2012, work is now focused on resolving legacy creditors and finalising a retrenchment programme at BNC's subsidiary Trojan Nickel Mine, as well as recapitalizing BNC, such that the Trojan restart can commence with the refurbishment of the surface milling circuits and associated thickeners prior to restarting concentrate production.

Limited development and drilling continues to be undertaken at Trojan. The mine hoisted 4,676 tonnes of waste during the quarter as part of its care and maintenance programme. Total underground development during the care and maintenance programme stood at approximately 1,260mat the end of March 2012. The current development is targeting key priority areas included in the restart plan.

Further information about Bindura Nickel Corporation can be found at:

www.mwanaafrica.com/operations-and-exploration/zimbabwe/bindura-nickel-corp-bnc 

Katanga Base Metals Concessions (SEMHKAT)

During the January to March 2012 period, exploration work focused on the Lunsano area with detailed mapping, trenching, sample preparation and Niton analysis carried out. The area is situated in three licence areas: PR754, PR757 and PR758 (Figure 3 & 4). Results for the 2011-12 soil samples were received during this period.

Lunsano

The Lunsano area hosts a +100ppm copper anomaly that can be subdivided into three areas, Southern anomaly (6km by 1km), Northern anomaly (6km by 500m) and Eastern anomaly (3km by 300m (Figure 4). The Lunsano area contains Roan units which have good potential for Cu-Co mineralization.

Detailed geological mapping and trenching was carried out and the geology was updated as shown in Figure 4. The local geology comprises units of argillaceous talcaceous shales, grand conglomerat, laminated and silicified dolomites, vuggy or stromatolitic dolomite, sandstone and ferruginous dolomitic shales. Mapping was focused on the exposed units of the Mines series to the south west of Lunsano. Trace malachite mineralization was revealed by trenching in the shale (Mine series unit) and the Niton results for these mineralized zones in shale are shown in Table 5.

A total of 1521.6m of trenching was achieved during the quarter and 751 samples taken. Trenching identified several occurrences of malachite mineralization in shale.

A total of 342 results for Lunsano comprising 150 pit and 192 trench results were received during the quarter. The results are currently being analyzed with a view to identifying drill targets.

A total of 605 samples comprising 206 pit samples and 399 trench samples were prepared and analyzed by the newly acquired Niton machine at Lunsano. The samples show a positive correlation to laboratory results for the elements Cu, Zn, Fe and Mn.

Table 5: Niton analysis of mineralized zones in trench MS3 and MS4

Kakosa

The Kakosa permit (PR 753) overlies upper Kundeulungu sub-group of rocks in the Katangaian succession and the area is dominated by WNW-ESE cross-cutting structures (faults and thrusts).

470 soil sample results were received and updated on plan. The 2011 re-sampling was designed to confirm a historical anomaly identified by Anmercosa. The sampling showed similar results in the southern portion and confirms the presence of a robust copper anomaly at Kakosa.

SEMHKAT Forward Plan

 The June Quarter 2012 work plan is as follows:

·; Ground reconnaissance surveys for the 2011-12 exploration program to begin.

·; Continuation of detailed geological mapping with the aid of trenching on the Eastern and Northern anomaly at Lunsano, and pitting (if weather permits).

·; Trench-pit sampling and trench-pit sample preparation in Lunsano to continue.

·; Continue trench rehabilitation.

·; Step up Niton analysis.

·; Continuation of field data and sample results capturing and updating of plans and sections.

·; Review of potential SEMHKAT permits for soil sampling programs.

AMBASE-SEMHKAT JV

For the 2012 year AMBASE has planned a 16 000m RC Drilling campaign over the North West Block. Two track-mounted ALTON 450 Multipurpose drill rigs will be used as these will provide the option to continue with diamond drilling after completion of the initial RC program.

An initial field team was mobilized to Maina field camp during the last week of March in order to start re-establishing the camp. However, prolonged heavy rains are currently jeopardizing a timely start of drilling activities which were scheduled to commence in mid-April. A realistic starting date for the RC drilling program is probably late April or early May.

Further information about the Katanga Concessions can be found at:

www.mwanaafrica.com/operations-and-exploration/drc/katanga-concessions  

For associated maps (figures 1, 2, 3 & 4), please click on, or paste the following link in to your web browser, to view the PDF file: