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 first quarterly update.

Highlights

·; Production at both Matchless and Otjihase (Central Operations) increasing towards target levels

·; Feasibility study for Tschudi progressing well

·; Tsumeb Tailings subject of stand-alone feasibility study

·; New banking arrangements established with FNB Namibia

·; Additional key personnel appointed to strengthen Weatherly's management team in Namibia

·; China Africa Resources Plc is progressing towards admission to trading on AIM in the next few weeks with in specie dividend for WTI shareholders

Central Operations

The production figures for the period to the end of June are set out in the table below.

A total of 2,834 tonnes of copper concentrate has been produced by the concentrator at Otjihase. Of that, 2,797 tonnes have been delivered to the Walvis Bay port storage facility for shipment by Louis Dreyfus.  

There was a slower start to production than planned as a result of a number of commissioning problems which included the late delivery of key equipment and difficulties with transport, exacerbated by extremely wet weather. In view of this delayed start we are a month behind on our production targets with a one month forward shift and therefore production for calendar year 2011 is expected to be closer to 4,000 tonnes , slightly down on our earlier stated target. Nevertheless, production is building rapidly to the levels originally projected, namely 45,000 tonnes of ore blasted and 580 tonnes of contained copper produced per month. At this point cash costs are expected to fall below US$4,000/t, subject to exchange rate fluctuations.

The Company continues to deliver into its hedges which, as at 30th June, totalled 3,375 tonnes of copper delivered (representing 35% of our scheduled output) and are at a weighted average of US$9,535/t, which means that even at current low production rates, the mines are cashflow positive. The Company will continue its strategy of maintaining a 15-18 month forward position on its copper sales.

Essentially all capital purchases have been completed and, with the recent execution of a new working capital facility with First National Bank of Namibia, the mines are now financially independent.

 The recruitment of Ephraim Pekema as Commercial Manager and Charles Carnie as Mining Manager further strengthens Weatherly's Namibian management team.

The Central Operations now have the necessary capital equipment, the financial resources and management to build upon the successful start to the year. 

Northern Operations

Tschudi

The Tschudi project is currently progressing through feasibility study. Preliminary metallurgical results have been received and were the subject of an RNS announcement on 18 May 2011. These preliminary results were very promising. Column leaching test work indicated good recoveries from each of the oxide, mixed and sulphide ore types and provided a compelling case for a stand-alone heap leach processing operation. 

The consultants on the Tschudi project, Sedgman Resources, are continuing studies based on a 'stand alone' 2 Mtpa open pit utilising a heap leach/SX-EW process. The feasibility is due for completion towards the end of 2011, following which the Board of Directors will consider the final investment decision.

Tsumeb

The drilling campaign at the Tsumeb tailings dam has been completed and all assays have been completed. However, we are still awaiting the results of some independent quality control data from laboratories in South Africa where unfortunately, a considerable backlog of work has caused a delay in reporting these results. These will form the basis of a new stand alone feasibility study.

China Africa Resources plc ('CAR')

 The transfer of Berg Aukas to CAR is nearing completion and CAR is expected to be admitted to trading on AIM in the next few weeks and further announcements will be made in due course.

Rod Webster, CEO, commented:

"I am pleased with the performance of the business in this quarter. Mine start-ups are never without problems and the team has done well in tackling them. Most of the start-up difficulties have been resolved and, although refurbishment activities have taken longer than expected, we are now more confident that the stated targets can be achieved".

For further information, please contact:

Rod Webster, Chief Executive Officer, Weatherly International Plc

+44 (0) 20 7917 2989

Samantha Harrison / Jen Boorer, Ambrian Partners Limited

+44 (0) 20 7634 4700

Carina Corbett, 4C Communications (Investor Relations)

+44 (0) 20 3170 7973