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 first quarter of its 2011/12 fiscal year.

Highlights

·; Production at Matchless achieved target output.

·; Production at Otjihase continues to increase towards target levels. 

·; Tschudi feasibility study progressing well.

·; Financial adviser appointed to progress funding of the Tschudi development.

Production

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

Production at the Matchless mine, operated by local contractor, Shali Mining, achieved target output in July and maintained the performance throughout the quarter. Earlier issues associated with the new haulage contractor, Kraft, have been resolved, and the transport of ore to the Ojihase concentrator is now routine.

Given the success of the operation, plans are currently under way to look at increasing the Matchless output through the early development of the 'Old Matchless' mine. This would involve a new decline being sunk to access the previously mined orebodies approximately 300m below surface. Production could commence as early as the second half of 2012.

Otjihase continued its ramp up towards targeted production levels throughout the quarter. Development progress has been hampered for some time by difficult conditions resulting from the record local rainfall earlier in the year. September, however, saw a breakthrough when a number of key development ends reached the lowest point of the mine. This marked a turning point such that mining will now retreat back up from the lowest point into the drier areas of the mine. With more mining areas available and the arrival of additional mobile equipment, production rates are expected to show a marked improvement. The Otjihase concentrator continued to perform well and yielded above-target copper recoveries and concentrate grades.

Commercial

During the quarter, the company delivered 1,281t of copper contained in 5,005t of concentrate to metal trader Louis Dreyfus. The average LME price recorded was US$9,392/t copper produced at a cash cost of US$4,707/t copper net of all credits. It is anticipated that the cash costs will continue to reduce as production reaches target levels.

As at 30 September 2011, the Company:

(1) held cash of US$7.1m equivalent 

(2) had outstanding forward sales of 3,200t copper at an average price of US$9,465/t equivalent to a 'mark to market' value of US$7.1 million.

The Namibian dollar has appreciated during the quarter, offsetting some of the effects of a declining copper price, due to a significant proportion of the Company's operating costs being Namibian dollar denominated.

Tschudi Project - Appointment of Financial Advisers

The Tschudi project feasibility study is continuing. In preparation for the funding of the project, the Company has appointed Noah's Rule, an Australia-based advisory group, to co-ordinate activities associated with funding the Tschudi project development. Initial discussions with banks have begun and negotiations are expected to proceed in earnest once a draft of the feasibility report is available in mid 2012.

General Update

In addition to the matters highlighted here during this quarter there has been considerable activity and the Company has issued Regulatory statements on:

- Sale of Equity stake to LIH (27 September)

- Maiden JORC compliant resource statement at Tsumeb Tailings (1 September)

- CAR Listing and Dividend (1 August)

The Annual General Meeting will be held on Wednesday 14th December 2011 at 11.00am at the offices of Morrison and Foerster, City Point, One Ropemaker Street, London, EC2Y 9AW.

Our next quarterly operations and production update will be issued in mid-January 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 two feasibility studies (Tschudi and Tsumeb), 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

Collins Stewart Europe Limited +44 (0) 20 7523 8350

John Prior, Adam Miller, Sebastian Jones

4C Communications (Investor Relations) +44 (0) 20 3170 7973

Carina Corbett