Quarterly Operations and Production Update

Weatherly International Plc

Quarterly Operations and Production Update

Weatherly International Plc ("Weatherly" or "the Company") is pleased to present its quarterly update for the third quarter of its 2011/12 fiscal year.

Highlights

·; Third quarter production achieved 5,148 tonnes of copper concentrate and 1,214 tonnes of contained copper. 

·; Major changes at Otjihase completed, with a new contract with Shali Mining effective 1st April 2012.

·; Two new operating areas at Otjihase being prepared giving more flexibility to the underground operation.

·; Following the remedial action taken during the quarter, copper production for the final quarter anticipated to be substantially ahead of this reported quarter. 

·; Matchless mine maintains good performance.

·; Healthy margin continues to exist between weighted average sale price and cash costs.

Rod Webster CEO of Weatherly commented:

"We are pleased that we have successfully completed the remedial actions we set out to do during the quarter. We continue to generate healthy cashflows from central operations, which we continue to invest in the development of our portfolio of assets, with a view of establishing a copper mining business capable of sustaining copper production of approximately 20,000tpa."

Production

Production results for the quarter are set out in the table below.

Central Operations

Quarterly production from Central Operations was 5,148 tonnes of copper concentrate whilst contained copper production was 1,214 tonnes, with grade and recoveries marginally improving compared to previous quarters.

The Matchless mine continued to achieve targeted production levels during the period.

At Otjihase, several major changes were achieved during the quarter with the aim of addressing underperformance at the mine, which has had a detrimental impact on production. Firstly, the mining contract was transferred to Shali Mining in mid-March. The handover was completed without any industrial issues, and the new contract, paid on a dollar per tonne of ore delivered basis, became effective from the 1st April 2012. Two other new contractors were mobilised to operate the concentrator and the underground crushing/conveying infrastructure.

Secondly, plans were approved for the opening up of two new working areas (Shoot 2 and Otjihase Compartment) which are expected to become available for mining in May and July respectively. This will give more flexibility in meeting our production targets and form the basis of a progressive expansion in production in the 2013 financial year.

Cash costs for the quarter were US$6,526/t copper with a year to date figure of US$5,520/t copper. The high costs reflect both the low level of production for the quarter and a number of 'one off' costs associated with the contractual changes at Otjihase. These costs are expected to reduce and stabilise in the next quarter.

Other

The company is saddened to report that, since the end of the quarter, a contract employee has been fatally injured while working in a previously abandoned section of the Otjihase mine. An investigation is underway.

Renewal of EPL132A

The exploration license EPL132A, covering areas extending from the Tschudi project through to the town of Tsumeb in Northern Namibia, has been renewed. The exploration license covers areas extending east of the Tschudi project as well as prospective areas around the Tsumeb West mine. Drilling of the Tschudi 'extension' is scheduled to commence in April.

Commercial

During the quarter, the Company delivered 1,254t of copper contained in 5,361t of concentrate to metal trader Louis Dreyfus at a weighted average price ofUS$8,994/t copper. The Company continues with its policy of forward selling approximately 35% of its production 15 to 18 months ahead. 

As at 31 March 2012, the Company:

(1) held cash of US$6.7m equivalent 

(2) had outstanding forward sales of 3,400t copper at an average price of US$8,745/t.

The Company's next quarterly operations and production update will be issued in mid-July 2012.

About Weatherly

Weatherly is an AIM listed, copper focused mining company, the principal assets of which are located in Namibia. It currently has two producing copper mines (Otjihase and Matchless), and is progressing feasibility studies on projects which will enable Weatherly to achieve its medium term strategy of establishing a copper mining business capable of sustaining approximately 20,000tpa of copper at an average industry cost of production for at least ten years.

The Company also has a 25% stake in an AIM listed company, China Africa Resources Plc (CAF), which is currently focused on the development of the lead/zinc project at Berg Aukas in Northern Namibia.

For further information please contact:

Weatherly International Plc +44 (0) 20 7917 2989

Rod Webster, Chief Executive Officer

Dean Friday, Investor Relations

Canaccord Genuity Limited +44 (0) 20 7523 8350

John Prior, Sebastian Jones