Quarterly Operations and Exploration Update

20 January 2014

Mwana Africa PLC

("Mwana" or the "Company")

Quarterly Operations and Exploration Update - December 2013 Quarter

Trojan production ramp up delivers positive results

Mwana Africa PLC is pleased to provide an update on operations and exploration activity for the quarter ending 31st December 2013.

Freda Rebecca

· 13,072 ozs of gold production from Freda Rebecca during the quarter, representing a decrease of 25% over the previous quarter.

· Drop in production is attributable to a mill being unavailable temporarily due to engineering down time and shutdowns. These were undertaken to make modifications which the Company anticipates will lead to an improvement in throughput. Production was also impacted by a drop in head grade due to the temporary cessation of mining at its open pit operations.

· The Company has noted improved throughput following the modifications to the mill and does not anticipate that the issues with head grade will continue into the fourth quarter.

· Despite a lower head grade, plant recoveries benefitted from the availability of all three leach tanks resulting in improved leaching efficiencies with an increase to 84.9% from 83.6% in the last quarter.

· All in sustaining costs (C3) increased by 22.6% from $1,053/oz to 1,291/oz. This was mainly as a result of lower gold production in the quarter.

· Pilot Plant for tailings retreatment is complete and has entered the commissioning phase.

Bindura Nickel Corporation

· Nickel in concentrate sales of 2,651 tonnes from Trojan, representing an increase of over 76% compared to the previous quarter.

· All-in sustaining costs (C3) cash costs increased from $10,390/t to $11,819/t. This was as a result of the continued production ramp up and the commencement of the shaft re-deepening.

· Quarterly revenue was 74% higher at $24.5 million as a result of higher sales volumes.

Klipspringer Diamond Mine

· Following the agreement signed between the Klipspringer JV and Greenhurst Mining and Exploration (Pty) Ltd to retreat the Marsfontein slimes dam at the Klipspringer Mine, Mwana are pleased to report that mining and treatment operations started on 7 October 2013.

· To date the slimes retreatment programme has produced 6,114 carats at an average price $22.75 per carat. Despite lower than anticipated throughputs during commissioning, the fine diamonds recovered demonstrate the feasibility of the initiative.

· The plant is currently operating on three shifts per day and steady state production of 22,560 tons per month is planned from February 2014 onwards. 

Kalaa Mpinga, CEO of Mwana, commented:

"Operationally this has been a mixed quarter for the company. We are very pleased with the progress at Trojan and this demonstrates the robustness of the asset. Freda Rebecca, however, had a difficult quarter due to reduced mill availabilities. The proceeds from diamond sales will contribute to the care and maintenance costs at Klipspringer. Management time will continue to be focused on operational improvements and delivery of the ongoing cost-cutting exercise during Q4."

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

About Mwana Africa PLC

Mwana Africa PLC is a pan-African, multi-commodity mining and development company. Mwana's principal operations and exploration activities cover gold, nickel, copper and diamonds in Zimbabwe, the DRC and South Africa.

Mwana's Freda Rebecca gold mine in Zimbabwe, having restarted operations in 2009, produced 65,350 ouncess of gold in the 12 months to March 2013.

In October 2013, Mwana announced that the gold mineral resource at its Zani Kodo project in Democratic Republic of Congo had increased to 2.975 million ounces.

In February 2013, Mwana announced it had signed a Joint Venture Agreement with Zhejiang Hailiang Company Limited to jointly explore some of its copper license areas in the Katanga Province of the DRC.

The restart of operations at The Trojan Nickel Mine (owned by Mwana's Zimbabwe subsidiary Bindura Nickel Corporation ("BNC")) followed four years during which all of the BNC assets were on care and maintenance. In September 2012, BNC carried out a restructuring and recapitalisation involving US$23m being invested into BNC which has allowed it to restart the Trojan mine. First sale of concentrate to Glencore took place in April 2013.

Freda Rebecca Gold Mine

A total of 13,072 ozs of gold was sold during the quarter ending December 2013. C1 operating costs increased by 27.6% compared to previous quarter. 

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. It excludes capital costs for exploration, mine development or processing mill capital works, and, the cost of royalties.

C2 Production Cost reflects C1 costs plus depreciation and amortisation, thus incorporating the capital cost of production.

C3 Total Cost reflects C2 plus interest, other indirect costs and royalties. Total cost represents all costs attributable to gold production over the period.

Gold production decreased compared to the previous quarter due to a combination of a drop in mill availability and a fall in head grade. Mill availabilities were mainly affected by engineering down time on Mill 2. Mill 2 operating time was also affected to allow modifications to the mill speed. These modifications were made to effect improvements in mill throughput. In addition Mill 2 trunnion bearing and inserts were replaced during the period. Post the mill speed modifications; improved mill throughput has been achieved. Despite a lower head grade plant recoveries benefitted from the availability of all three leach tanks resulting in improved leaching efficiencies.

The head grade for the quarter was lower than expected. This was as a result of the cessation of production from the open pit, necessitating draw down of lower grade surface stockpiled material, coinciding with low grade hanging wall stripping underground during commissioning of 815 6B production area. Management anticipate an improvement in head grades during Q4.

Cash operating costs increased by 27% to US$1,066/oz from US$837/oz and C3 costs increased by 23% to US$1,291/oz from US$1,053/Oz.

Construction of the Pilot Plant for tailings retreatment is complete and has entered the commissioning phase. Commissioning has been affected by necessary modifications to leach tank gearboxes. Modifications have been completed and new gearboxes sourced and fitted. Commissioning will continue and work will commence in January to prove the metallurgical test work of the tailings dumps.

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

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

Bindura Nickel Corporation

Table 2: Summary of Trojan Quarterly Production Results

Figures shown are unaudited and may vary upon final audit.

Average Nickel Price represents the average LME nickel price utilised under the terms of the Glencore offtake contract.

C1 Cash Cost includes costs for mining, processing, administration, offtake costs and penalties, transport costs, accounting movements for stockpiles, and net proceeds from by-product credits. It excludes capital costs for exploration, mine development or processing mill capital works, and, the cost of royalties.

C2 Production Cost reflects C1 costs plus depreciation and amortisation, thus incorporating the capital cost of production.

C3 Total Cost reflects C2 plus interest, other indirect costs and royalties. Total cost represents all costs attributable to nickel production over the period.

Trojan sales of Nickel in Concentrate increased for the period under review to 2,651t.

Trojan concentrate production for the period was 2,016t of Nickel in Concentrate. Total sales benefitted from draw down and shipment of accumulated stock. Mill Throughput for the period was lower, with milling affected by downtime associated with concentrator thickener outages, together with disruption to electricity supply due to seasonal storms.

The high grade massives within the Trojan ore body have been successfully accessed and brought into production. Head grade was above plan and higher than the previous quarter. Recovery remains above target. The slight decrease in recovery was as a result of adverse affect of reagent trials conducted during the quarter.

Underground tonnage improved marginally. Trojan has placed orders for two new Load Haul Dump (LHD) units, which are due for arrival in the next quarter. The rock moving units will contribute to the ongoing ramp up of underground tonnage and development at Trojan

During the period work commenced on the Trojan Shaft re-deepening project which had been suspended as part of BNC's 2009 care and maintenance program. The re-deepening will extend the operating horizon of Trojan from 35 Level to 45 Level and secure the life of mine of the Trojan asset

Total costs increased during the quarter as a result the commencement of the Re deep project and due to the lifting of the suspension of certain functions which had been stopped as a result of the cost reduction measure implemented during previous quarters, including: recommencement of development and LHD refurbishment program.

Further information about Bindura Nickel Corporation can be found at:

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

Zani Kodo

Development options are being reviewed. No drilling was carried out during the quarter and exploration activities were focused on district and regional scale mapping, with a view to identifying further potential drill targets within the licence area.

Further information about Klipspringer Diamond Mine can be found at:

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

SEMHKAT/ Hailiang JV

No progress was reported for the quarter due to the suspension of field activities due to the onset of the rainy season. Technical data collected during the past field season are being reviewed by SEMKHAT and Hailiang. The work program for the next field season is being finalised.

Further information about Klipspringer Diamond Mine can be found at:

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