Quarterly Operations and Exploration Update

22 April, 2014 Mwana Africa PLC ("Mwana", the "Group" or the "Company") Quarterly Operations and Exploration Update - March 2014 Quarter Mwana Africa is pleased to provide an update on operations and explorationactivity for the quarter ending 31 March, 2014. Operational HIGHLIGHTS GolD - Freda Rebecca (Zimbabwe) Tonnes milled for the quarter under review were 8% higher at 279,879t comparedto 258,184t in the last quarter. The increase in tonnage processed isattributed to a 4% increase in throughput as a result of the second mill speedincrease and a 4% improvement in running time, attributable to improvedmaintenance. The average feed was 1% higher at 1.91g/t from 1.89 g/t in Q3. Stopepreparation that had affected Q3 was completed and grades improved in the mainstopes, as anticipated. Consequently, a combination of improved milled tonnes and feed grade resultedin gold production rising by 2% to 13,380oz, compared to 13,072oz in theprevious quarter. Cash operating costs for the quarter under review decreased to US$1,053/oz fromUS$1,066/oz due to an increase in gold production of 2%. All-in sustainingcosts increased by 3% from US$1,291/oz in the last quarter to US$1,325/oz thisquarter. This is attributable to an increase in the asset amortisation chargefor the quarter by 10%, a result of the commissioning of the TailingsRetreatment Project pilot plant. The Tailings Retreatment Project pilot plant commissioning is continuing. Thenew transformer for the section had to be returned to the manufacturers forrepairs whilst the agitator drives design has been revisited and upgradeddrives are expected during the quarter. NICKEL - BINDURA NICKEL CORPORATION (ZIMBABWE) Nickel in concentrate sales of 2,207 tonnes from Trojan were achieved,representing an increase of 9.5% compared to the previous quarter. All-in sustaining costs (C3) cash costs increased from $11,819/t to $12,220/tas a result of the continued production ramp-up and shaft re-deepening. 100% of production was sold during the period, with a 1.5% increase in theaverage nickel price received to US$14,075t attained. Diamonds - Klipspringer (South Africa) Retreatment of the Marsfontein slimes dam at the Klipspringer Mine has produced12,383cts during the quarter, an increase of over 100% on the previous quarter. An average price of $21 per carat was achieved during the quarter. Steady-state production was reached. EXPLORATION highlights GOLD - Zani-Kodo (dEMOCRATIC REPUBLIC OF CONGO - drc) The resource conversion drilling programme is underway. Copper/cobalt - SEMHKAT/Hailiang JV (drc) The 2014 exploration programme is set to start. Kalaa Mpinga, CEO of Mwana, commented: "I am pleased to be able to report generally improved operating performanceacross the Group's operations during the fourth and final quarter of the 2013financial year. Both gold and nickel production increased, reflecting highertonnage mined and milled, and diamond production from the Klipspringer SlimesRetreatment Project more than doubled quarter on quarter. We anticipate that at Freda Rebecca, the current focus on mining and processingefficiencies, and at BNC continued progress by Trojan Mine towards steady-stateand stronger mill performance, will deliver further operational improvementsfor the Group in the year ahead. At Klipspringer, improvement in throughput is expected with the onset of thedry season and the evaluation of options to re-open the underground operationwill continue. We continue to work towards the completion of a feasibility study at our ZaniKodo exploration whilst work at our SEMKHAT exploration is advancing, with ourJoint Venture partner mobilising for the second year's exploration programme. The Group expects to report its preliminary operating and financial results forthe 2013 financial year during July 2014." 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 5595 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 OPERATIONS GOLD: Freda rebecca gold mine (Zimbabwe) Quarter ending Jun Mar 2014 Dec 2013 Sep 2013 2013 Tonnes mined (t) 282,078 217,287 308,663 290,216 Tonnes milled (t) 279,879 258,184 269,575 252,924 Head grade (g/t) 1.91 1.89 2.28 2.33 Recovery (%) 83.0 84.9 83.6 77.9 Gold produced (oz) 13,380 13,072 17,536 14,716 Average gold price received ($/oz) 1,302 1,255 1,330 1,378 C1 cash cost ($/oz) 1,053 1,066 837 949 C2 production cost ($/oz) 1,184 1,188 945 1,044 C3 total cost ($/oz) 1,324 1,291 1,053 1,153 Figures shown are unaudited and may vary upon final audit. Gold ounces producedincorporate gold released from or caught in 'lock-up' for each period. C1 cash cost includes costs for mining, processing, administration, accountingmovements for stockpiles and gold-in-circuit, and, net proceeds from by-productcredits. It excludes capital costs for exploration, mine development orprocessing mill capital works, and, the cost of royalties. C2 production cost reflects C1 costs plus depreciation and amortisation, thusincorporating 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 theperiod. COMMENTARY Total gold production for the year ending 31 March 2014 was 58 704 ounces,10.5% down on the 63, 350oz produced in the previous financial year. A significant contributor to the variance was the failure of a leach tankfailure in the first quarter of FY 2013, which affected mill throughput andrecovery. The third and fourth quarters were also affected by mill mechanicalavailability and lower-than-planned feed grades. Remedial action was taken to replace the failed leach tank during the year anda new, additional leach tank has been commissioned. Recoveries have beenrestored. Closure for the environmental clean-up was successful, withadditional lined spill containment ponds completed in the year. The mill mechanical downtimes experienced were associated with mill drive trainalignment and speed. The mill pinion was replaced in the third quarter andsubsequent mill throughput improvement was realised in the fourth quarter.However, necessary re-alignment of the drive train was scheduled in the firstquarter of FY2014, after delivery of a new clutch assembly. Stopepreparation that affected performance in the December 2013 quarter wascompleted in the quarter under review and grade improved in the main stopes, asexpected. NICKEL: Bindura nickel corporation (zimbabwe) Quarter ending TROJAN MINE Mar 2014 Dec 2013 Sept 2013 June 2013 Tonnes mined (t) 161,964 159,600 158,694 115,398 Tonnes milled (t) 153,451 133,221 154,552 148,413 Head grade (%) 1.621 1.730 1.597 0.652 Recovery (%) 88.8 87.5 88.6 69.7 Ni in cons (t) 2,207 2,016 2,117 686 Nickel sales (t) 2,250.2 2,650.8 1,505.3 686.3 Average nickel price ($/t) 14,075 13,870 13,787 15,460 C1 cash cost ($/t) 11,333 11,181 9,689 19,251 C2 production cost ($/t) 11,943 11,504 9,958 21,315 C3 total cost ($/t) 12,220 11,819 10,390 21,521 Figures shown are unaudited and may vary upon final audit. Average nickel price represents the average LME nickel price utilised under theterms of the Glencore offtake contract. C1 cash cost includes costs for mining, processing, administration, offtakecosts and penalties, transport costs, accounting movements for stockpiles, andnet proceeds from by-product credits. It excludes capital costs forexploration, mine development or processing mill capital works, and, the costof royalties. C2 production cost reflects C1 costs plus depreciation and amortisation, thusincorporating 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 theperiod. Production of nickel in concentrate rose quarter on quarter by 9.5% to2,207.0t, reflecting an increase of 1.5% in tonnes mined to 161,964t, anincrease of 15.2% in tonnes milled to 153,451t, and an improvement in recoveryto 88.8% from 87.5%. Higher tonnage mined marks continued progress towards steady-state of 195,000tper quarter, while the increase in tonnes milled indicates more consistent,efficient operation of the mills. These factors offset the impact of a 6.3% decline in head grade to 1.621g/t.This arose from mining of lower-grade areas during the quarter under review, afactor of the current mine plan's mining mix. Nickel sales for the quarter - 100% of production - totalled 2,250.2t. Whilethis was 15.1% down on the December 2013 quarter, that quarter's figurereflected the sale of stock carried over from the September 2013 quarter. The average nickel price was 1.5% higher at US$14,075/t, predominantlyresulting from events in Indonesia where a ban on nickel exports was imposed on12 January 2014. C3 total costs, as defined above, rose by 3.4%, reflecting continuednormalisation of operations - in particular, an increase in undergrounddevelopment, which was reduced previously as a cost-saving measure. DIAMONDS: KLIPSPRINGER (South Africa) The Klipspringer Slimes Retreatment Project, started on 7 October, 2013, madesteady progress during the quarter under review. Production of fine diamonds more than doubled, quarter on quarter, to12,383cts. This flowed from the retreatment of 16,000t of fine residuetailings, at an average grade of 77.4cts/100t, from the old Marsfontein Minethrough the Plant. An average selling price of $21/ct was achieved. During the quarter, a number of process changes were made in the plant,including screening improvements and the installation of a DMS surge bin. Following these changes and with the onset of dry weather conditions, asubstantial increase in throughput is expected and thus a significantcontribution to monthly care and maintenance costs during the next quarter. Management continues to evaluate and review options to re-open the undergroundoperations along the Leopard Fissure. Exploration Gold: Zani-Kodo (Drc) As part of feasibility work underway at Kodo Main, a resource conversiondrilling programme has begun. This will be followed by a geotechnical drillingprogramme and regional field investigations continue. Copper/Cobalt: SEMHKAT/HAILIANG JV (drc) Design of the 2014 exploration programme advanced during the quarterand work will start as soon as the end of the rainy season allows accessto the field. This includes six targets, with geochemistry and geophysics, followed bydrilling. About Mwana Africa PLC Mwana Africa PLC is a pan-African, multi-commodity mining and developmentcompany. Mwana's principal operations and exploration activities cover gold,nickel, copper and diamonds in Zimbabwe, the Democratic Republic of Congo (DRC)and South Africa. Mwana's Freda Rebecca gold mine in Zimbabwe, having restarted operations in2009, produced 58,704 ozs of gold in the 12 months to March 2014. In October 2013, Mwana announced that the gold mineral resource at its ZaniKodo project in the DRC had increased to 2.975 million ounces. In February 2013, Mwana announced it had signed a Joint Venture Agreement withZhejiang Hailiang Company Limited to jointly explore some of its copper licenceareas in the Katanga Province of the DRC. The restart of operations at the Trojan Nickel Mine (owned by Mwana's Zimbabwesubsidiary Bindura Nickel Corporation (BNC)) followed four years during whichall of the BNC assets were on care and maintenance. In September 2012, BNCcarried out a restructuring and recapitalisation involving the investment ofUS$23m. This enabled BNC to restart the Trojan mine. First sale of concentrateto Glencore took place in April 2013.