Q3 Operations and Exploration Update

6 November 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 30 September 2012.

Highlights

·; 18,350 ozs of gold sold by Freda Rebecca for the quarter, representing an increase of 34% over the same quarter in 2011.

·; Freda Rebecca achieved recoveries of 83% for the quarter, highest average recoveries in 2012.

·; Freda Rebecca achieved C1 cash costs of US$797/oz down from US$815/oz in the previous quarter.

·; BNC concluded a rights issue and restructuring which has allowed the nickel miner to commence operations with first sale of concentrate expected in Q2 2013.

Exploration and Development Projects

·; BNC: first drilling results from Trojan since the recapitalisation and restructuring of BNC was completed during Q3, key mineralized intercepts received post period include:

o 27.0m at 3.50% Ni from 359m (BH 3577)

o 94.0m at 3.14% Ni from 224m (BH 3579)

o 27.7m at 10.63% Ni from 264m (BH 3576)

o 10.4m at 8.25% Ni from 164m (BH 3580)

·; Zani Kodo: drilling continued at Kodo Main and the best drill result received was:

o 33m at 3.67g/t Au (KDODD073)

·; Zani Kodo: At Lelumodi 14 holes for 3,387m were completed during the quarter and the best drill result received was:

o 3.7m at 5.11 g/t Au (ZNSDD022)

·; SEMHKAT: Mwana entered into a Cooperation and Development Agreement covering 28 licences within its 100% owned SEMHKAT copper exploration area with Hailiang.

Kalaa Mpinga, CEO of Mwana, commented:

"This has been another very pleasing and positive quarter for the company with record levels of gold production achieved at Freda Rebecca since operations were restarted in 2009. I am also delighted by the progress shown at Trojan following the successful conclusion of the recapitalisation and restructuring of BNC. I look forward to updating shareholders with news of the refurbishment programme now underway as the company moves towards the sale of its first nickel concentrate in Q2 2013."

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

About Mwana Africa PLC

Mwana Africa PLC is a pan-African, multi-commodity resources company. Mwana's principal operations and exploration activities cover gold, nickel and other base metals, and diamonds in Zimbabwe, the DRC and South Africa. Mwana was the first African owned and managed mining business to be listed on London's AIM market.

Mwana's Freda Rebecca gold mine in Zimbabwe restarted operations in 2009 and achieved its target production rate of 50,000 ounces gold per annum in 2011.

In February 2012, Mwana announced a gold mineral resource of 2.01 million ounces at its Zani Kodo project in Democratic Republic of Congo.

In August 2012, Mwana announced it had entered into a Cooperation and Development Agreement with Zhejiang Hailiang Company Limited to jointly explore it copper license areas in the Katanga Province of the DRC.

In September 2012, Mwana's subsidiary, Bindura Nickel Corporation, carried out a restructuring and recapitalisation which has allowed it to restart its Trojan nickel mine.

Further information on the Company can be found at www.mwanaafrica.com.

Freda Rebecca Gold Mine

Freda Rebecca's performance continues to improve with record quarterly production since operations were restarted in 2009. A total of 18,350 ounces ("ozs") of gold was produced during the quarter ending 30th September 2012. Average monthly production for the quarter was 6,117 ozs. Quarterly output represents a 34% increase over the comparable quarter last year. The 36,335 ozs produced for the 6 months year to date represents a 65% improvement on the comparable period last year. The current rate of production reflects an annualized rate of 72,000 ozs per annum.

Table 1: Summary of Freda Rebecca Quarterly Production Results

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.

C1 Cash cost: Includes: costs for mining, processing, administration, accounting movements for stockpiles and gold-in-circuit, and, net proceeds from by-product credits. Excludes: capital costs for exploration, mine development or processing mill capital works, and, the cost of royalties.

The increase in gold produced for the quarter was attributable to an increase in milled tonnage, increase in grade and improved recoveries.

Underground tonnes mined improved during the quarter as a result of improved availability of mine equipment and the delivery of two new LHDs as part of the programme of recapitalising the underground rock moving fleet.

Tonnage milled improved marginally for the quarter. Additional maintenance on Mill 2 was completed during the quarter and had a positive effect on Mill 2 performance.

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

Exploration drilling continued with three diamond core rigs active during the quarter. 29 holes were completed for a total of 7,835m. Drilling was focussed on three areas, i.e. Kodo, Lelumodi and Gombiri, shown in Figure 1 (see link at bottom of announcement).

Kodo Main

Drilling continued to target the downdip extension of the Kodo Main orezone as well as the southern margin. 8 holes were completed during the quarter for 3,338m.

Results have been received for a further 9 holes:

*Widths reported are down hole measurements and as such not true widths

Table 2: Selected results received, Kodo area, July-September 2012.

The location of these results is shown in Figure 2 (see link at bottom of announcement).

Excellent widths of mineralised Banded Iron Formation ("BIF") continued to be intersected, indicating good downdip continuity of the Kodo Main zone. The best width occurs in hole KDODD073 with over 33m at 3.67g/t. This hole is situated on the same step out and 50m SE of hole KDODD072 which intersected 29m @ 10.0g/t, and indicates excellent continuity of a broad high grade zone. The zone also extends to the next step out of holes (Figure 2) with excellent intersections in holes KDODD080 (14m @ 5.98g/t) and KDODD081 (21.5m @ 4.46g/t). A very significant addition to the current resource is anticipated in this area. The high grade zone narrows out to the north but remains completely open at depth.

The refined structural model has also predicted further mineralisation along the southern margin of the Kodo Main zone which has been confirmed by drilling. The presence of significant mineralisation in hole KDODD079 has resulted in the orebody being extended to the south by a further 50m in this area.

Lelumodi

The Lelumodi area occurs in the hanging wall of the Zani-Kodo trend and was identified by the presence of a substantial gold in soil anomaly.

14 holes for 3,387m were completed during the quarter. These were positioned on a 50m x 50m grid with a view to defining a resource over a strike length of 400m in this area. Results for the first 8 holes in this area were received:

*Widths reported are down hole measurements and as such not true widths

Table 3: Selected results received, Lelumodi area, July-September 2012.

The position of these drill holes are shown in Figure 3 (see link at bottom of announcement).

The results indicate the presence of multiple zones of mineralisation up to 21m in width. These zones occur in either sheared felsic tuff or BIF within a sequence dominated by metabasalts and dolerite intrusions. The zones are all close to surface and represent potential open pit material.

A cross section of the Lelumodi area is shown in Figure 4 (see link at bottom of announcement).

The presence of significant near surface mineralisation at Lelumodi has shown that soil geochemistry is an effective exploration tool and implies that further mineralisation will be present along the complete 4,000m strike length of the soil anomaly. This will be tested during 2013.

Gombiri

 Drilling was completed at the Gombiri target which is situated immediately south of Zani Central. Results were disappointing but have resulted in a re-interpretation of the Zani-Kodo trend, with mineralisation occurring in a related parallel fault zone to the East (Figure Z1). This corresponds to the NW strike extension of the Lelumodi mineralised zone and will be targeted for drilling in 2013.

Further information about Zani Kodo can be found at:

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

Bindura Nickel Corporation

On the 21st of September, Mwana announced that BNC had completed a rights issue and placing required to recapitalise BNC and to recommence operations. Satisfactory terms for the settlement of creditors and of liabilities relating to the retrenchment of some employees were reached by BNC and the respective stakeholders.

New funds invested into BNC by way of the transaction totalled US$23m, including US$21m from Mwana Africa. The proceeds are sufficient to restart the Trojan Mine, although further funding may be required by BNC within approximately twelve months to provide sufficient working capital to take BNC through to positive cash flow. Mwana Africa and BNC are considering various financing options.

Following the success of the rights issue, work has commenced on the restart programme at Trojan Nickel Mine which is focused on the mobilisation of the workforce, the commencement of underground operations and the refurbishment of certain components of the milling, flotation and concentrate handling facilities. A sample of some of the work undertaken includes:

·; Recasting No2 ball mill's foundation plinth;

·; Fabricating a new pump box for primary cyclone pumps as well as mill discharge launders and trammel screen;

·; Structural steelwork repairs to platforms and walkways around the mill building; and,

·; Commencing refurbishment of motor control centres.

Sale of first concentrate is expected in Q2 2013. BNC has an offtake agreement in place with Glencore International for the sale of concentrate from Trojan.

During the quarter the resource drilling programme at Trojan continued. A number of significant intersections of high grade nickel intercepts were reported by Mwana on the 8th October. The aim of the drilling programme is to confirm the down dip extension of the massive sulphide zone within the main ore body.

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)

On the 21st of August Mwana announced that it had entered into a Cooperation and Development Agreement covering 28 licences within its 100% owned SEMHKAT copper exploration area with Zhejiang Hailiang Company Limited ("Hailiang").

Under the Agreement, Hailiang will invest US$25 million over a minimum period of four years to earn a 62% voting interest in the Exploration Joint Venture. Hailiang has the right at any time to transfer a licence into a development company ("DC"). Once in a DC, exploration and development of the selected licence area will be progressed further and a JORC resource report and feasibility study will be produced, and, inter alia, assuming a positive result from the feasibility study, a mine will be developed. Mwana's 38% shareholding in any DC will be non-dilutable. Hailiang has a further six month option over the Kibolwe prospect. Should they exercise this option, Kibolwe will be transferred to its own DC, in which Mwana will have a 40% non-dilutable shareholding, and, Hailiang has committed a further US$15m to Kibolwe within 12 months after the transfer of the licence.

During the 3rd quarter, exploration work targeted priority areas in Lunsano.

LUNSANO

Four priority areas, shown as Priority 1, 2, 3 & 4 in Figure 6 (see link at bottom of announcement), have been identified as potential drill targets for the 2013-14 year.

Geological Mapping

Detailed geological mapping of Priority 1 & 2 areas in the southern anomaly continued during the Quarter (Figures 6 and 7 - see link at bottom of announcement). The geology of the two areas was updated on plan (Figure 7 - see link at bottom of announcement). Mapping revealed a shaly sandstone sandwiched between the Grand Conglomerat and shale units to the east of Priority 2 area (Figure 7 - see link at bottom of announcement). A strong association of high soil, trench and pit copper values with brecciated zones has been recognised, and is related to NW-SE trending structures (Figure 7 - see link at bottom of announcement). Visible sulphide and oxide mineralisation was encountered in Priority 1 area trenches, LUN 21 and 22 (Table 4).

Sampling results

Pit geochemistry

A total of 383 pits yeilding 976 samples were assayed by Niton hand-held XRF. The pit geology and results were updated on plan as shown in Figures 7 and 8 (see link at bottom of announcement) respectively. The pit and soil sample results support each other. Priority 1 & 2 areas, northern copper geochemical anomaly, SW Kilundu and eastern copper geochemical anomaly gave peak average copper values of 794.1ppm (P246), 600.6ppm (P448), 481.3ppm (P320A) and 154.6ppm (P389) respectively. The high copper values coincide with brecciated zones as shown in Figure 7 (see link at bottom of announcement). The pit results of the northern anomaly warrant further investigation (Figure 8 - see link at bottom of announcement).

Trench geochemistry

A total of 4544 trench samples were assayed by Niton over this period. The most notable trench intercepts came from Priority 1 breccia zones and Priority 4 (Kibandawepala metadolerite). The results are as shown in Table 4 and 5 below. The plan is to have Priority 1 area ready for drilling by end of 2012.

Table 4: Priority 1 trench intercepts by Niton assaying.

The Kibandawepala (P4) trench sample assaying was finalised and the most notable trench intercepts are summarized in Table 5. The Kibandawepala metadolerite clearing exhibits usual mineralisation in which trace malachite is associated with specular hematite, talc zones and vein quartz (observed in artisanal pits). Trench KIBA1 gave a peak value of 1.33%Cu. Petrograhic study and metallurgical tests will be carried out as part of its development into a potential drill target.

Table 5 Kibandawepala trench intercepts.

AMBASE-SEMHKAT JOINT VENTURE

An additional infill soil sampling programme of 560 samples was completed.

Approximately 50% of ground geophysical surveys at Kasolowere were completed. Further mag, IP, and MLEM surveys over the main target areas were scheduled for October.

A total of 302 holes both RAB and RC, yielding 10 551m were completed over the Quarter.

The majority of these holes were drilled as shallow RC scout holes over soil geochemistry anomalies or as deeper follow-up holes, either directly testing targets from earlier shallow RC or drilled as pre-collars for later diamond drill extensions.

Most of the targets drill-tested over this Quarter have been abandoned due to low grades returned. In most cases the Cu (and sometimes Ni) is associated only with an Fe-rich weathering zone just above the fresh rock, where Cu typically reaches concentrations of up to 0.3% Cu, and then rapidly drops off as drilling intersect fresh rock.

Gunji delivered the best results so far with an 18m showing visible malachite and NITON assays of 0.6% Cu (maximum of 1.1% Cu over 2m).

Diamond drilling is on-going and so far, 11 DD holes totalling 1001m have been drilled (Figure 9 - see link at bottom of announcement). Kasolo holes were drilled as DD tails to existing RC pre-collars. Bad ground conditions resulting in low drilling productivity (< 20m/day) have led to a double shift system in October. This will ensure that the programme will be completed before the start of the rainy season.

The DD holes at Kasolo intersected mainly altered limestone, dolomite, and tectonic talcose breccias. Minor chalcocite was observed in the breccias with malachite and native Cu occupying limestone fractures. Assays are still to be done.

DD holes at Gunji (NWDD01 and NWDD02) were drilled in order to complement the existing deeper RC holes. These holes appear to confirm the inferred moderate south-westerly dip of the strata. Both holes intersected brecciated saprolite before grading into fresh dolomite and dolomitic shale at depth.

No significant Cu mineralisation could be recorded in fresh rock, confirming earlier observations in RC holes, which indicate Cu predominantly being concentrated in the deeper weathering zone near the interface to the fresh rock.

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, 5, 6, 7, 8 & 9), please click on, or paste the following link in to your web browser, to view the PDF file:

http://www.rns-pdf.londonstockexchange.com/rns/3439Q_-2012-11-5.pdf