QUARTERLY REPORT 30 SEPTEMBER 2010

Nyota Minerals Limited ('Nyota' or the 'Company')

Quarterly Report 30 September 2010

Highlights

Tulu Kapi Project, Ethiopia

§ Further positive drill results received from 51 additional reverse circulation and 9 diamond drill holes, with positive results for expansion drilling to the west, north, south and at depth of the existing resource as well as intersection of new Lode 0 to the west

§ Highlights of other drill intersections include 5m at 20.57g/t gold, 8m at 6.44g/t gold and 7.75m at 5.03g/t gold

§ Further metallurgical test work demonstrates potential for high gold recoveries and low operating costs at Tulu Kapi, with average recovery results of in excess of 95% achieved

§ Additional drill and metallurgical data provided to SRK Consulting (South Africa) (Pty) Limited to support Preliminary Economic Assessment ("PEA") Feasibility study for Tulu Kapi

Regional Ethiopian gold exploration

§ Regional airborne geophysical survey contract signed with UTS-Aeroquest and 44,700 line kilometre survey commenced over Nyota's entire 3,550 sq km land holding in Ethiopia

§ Regional exploration programme also to include rock, stream sediment and soil geochemical sampling, mapping, trenching and drilling

Corporate

§ Fundraising of approximately GBP21.58 million in connection with development of Tulu Kapi and regional targets

§ Board and officeholder changes made, chiefly with Mr Terry Tucker being appointed as Chief Executive Officer

TULU KAPI PROJECT

Drilling update

On 5 August, Nyota announced that further positive results had been received from additional reverse circulation (RC) and diamond drilling (DD) undertaken in relation to the Company's flagship Tulu Kapi Project in Western Ethiopia. Since the previous update on 17 June 2010, assays had been received for a further 30 RC drill holes (including 20 infill drill holes to increase the drill hole density over the existing resource and to improve the level of resource confidence with a view to reclassifying a significant portion into the Indicated category). As announced, results from RC holes included 23 metres (m) at 3.55 grams per tonne (g/t) gold and 8m at 4.84g/t gold, as well as the intersection of significant mineralisation (including 32m at 3.55g/t) to the west of the deposit beyond the previously-defined limit of mineralisation. In addition, diamond drilling conducted centrally within the existing resource resulted in the intersection of additional Lode 3 mineralisation (beneath defined Lodes 1 and 2), with a 5m width intersection at 5.59g/t gold returned.

Shortly after the end of the Quarter, Nyota announced that it had additionally received positive assay results for a further 21 RC holes and 8 DD holes, including 5m at 20.57g/t, 8m at 6.44g/t and 7.75m at 5.03g/t gold, and that drilling to the west of the main Tulu Kapi orebody had discovered a new Lode 0 structure that sits above and to the west of the previously announced mineralized structures.

Metallurgical test work

During the Quarter, Nyota undertook a second metallurgical test work programme (following the first such programme conducted in January 2010). The latest programme was undertaken on samples taken in July 2010 from the Tulu Kapi deposit and examined ore variability in terms of response to gold recovery processes. A total of 28 individual samples of ore were tested from Lodes 1 to 4 (from near-surface down to a depth of approximately 400 metres). The results of this second phase of test work demonstrated excellent gold recovery potential and indicated that operations at Tulu Kapi might benefit from high recoveries and low operating costs. Specifically, the results indicated that:

·; the ore from the deposit is hard and abrasive, but not to the extent that it will pose problems for plant design and operation;

·; gold recoveries are consistently good (above 95%) and involve low reagent consumption;

·; there is high free gold content and excellent gravity recovery potential.

Two alternative flow sheets have been proposed for consideration in relation to ore processing - the first consisting of crushing and grinding followed by conventional CIP gold recovery; the second involving the production of a concentrate and then cyanidation of the concentrate. Further details in relation to these alternative flow sheets can be found in Nyota's announcement of 4 October 2010.

The results of the test work programme will be used to generate estimates of the gold recovery and the capital and operating costs of a gold recovery plant for Tulu Kapi and will be incorporated into the Preliminary Economic Assessment Feasibility Study ("PEA") currently being prepared for Nyota by SRK Consulting (South Africa) (Pty) Limited in connection with Tulu Kapi.

REGIONAL ETHIOPIAN GOLD EXPLORATION

During the Quarter, Nyota signed an airborne geophysical survey contract with Australian-based consultants UTS-Aeroquest to conduct a 44,700 line kilometre survey over Nyota's entire Ethiopian land holding package (comprising approximately 3,550 sq km). Shortly after the end of the Quarter, the regional airborne geophysical survey had commenced. The survey will form part of a wider regional exploration programme intended to encompass rock, stream sediment and soil geochemical sampling, mapping, trenching and drilling.

CORPORATE

Fundraising of GBP21.58 million

On 29 September 2010, Nyota announced that it had concluded a fundraising of approximately GBP21.58 million, consisting of a placing of 131,250,000 new shares at GBP0.16 per share with clients of Ocean Equities Limited in the UK and a placing of 3,692,307 new shares at AUD0.26 per share with clients of Bell Potter Securities Limited in Australia. The fundraising (which is conditional only upon Nyota shareholder approval being sought at an extraordinary general meeting of the Company being held on 1 November 2010), will allow Nyota to fast track the exploration and development of Tulu Kapi and to fund the Company's regional exploration programme in Ethiopia. Specifically, the funding will allow Nyota to:

·; continue with the four drill rigs currently on site working 24 hour shifts and to fast track engineering, environmental and social studies which are essential for mining development at Tulu Kapi; and

·; accelerate the regional exploration programme outlined above in connection with the Company's other Ethiopian land holdings.

Appointment of key personnel

During the Quarter, Mr Terry Tucker was appointed first to the Board of directors of the Company and then subsequently to the position of Chief Executive Officer, replacing Ms Melissa Sturgess in that role. Ms Sturgess continues in the role of Nyota Chairman. In addition, during the Quarter Dr Kebede Belete was formally appointed as Nyota's Country Manager - Ethiopia and Messrs Richard Jarvis and Mark Burchnall were appointed as Joint Company Secretary (in addition to the management roles they hold with the Company).

MUREMERA NICKEL PROJECT

No work was done during the Quarter given the Company's focus on its Ethiopian operations.

Notes on Tulu Kapi Project

The Mineral Resource estimate for the Tulu Kapi Gold Project ("Project") was updated in April 2010 and all resources have been categorised as JORC Compliant Inferred resources.

Totals for all major parameters have been rounded to two significant figures.

The Tulu Kapi deposit is situated within the Arabian-Nubian shield composed of Archaean gneiss and Proterozoic meta-sedimentary successions intruded by Pan African granites, mafics and ultramafics. Mineralisation is exclusively hosted by albitised syenite and quartz veins. The strike length and lateral extent of mineralisation remains to be confirmed as further drilling is taking place over known extensions to mineralisation where outcrop exists, over anomalous gold in soil geochemical targets and on ground magnetic and resistivity surveys.

The drilling database for the current 1.38m ounce resource is based on a total of 34 NQ size diamond drill holes and a further 23 reverse circulation (RC) drill holes based on a grid with approximate drill hole collar locations based on 40m x 80m centres.

Drilling has been undertaken in two programmes. The initial programme funded and managed by Minerva Resources Plc, the previous owner-operator of the Tulu Kapi Project, was exclusively a diamond drill programme and the second programme was an RC programme completed on behalf of Nyota by Geosearch International.

All core samples have been logged according to internationally accepted standards with core loss and other factors likely to impact on resource estimation duly recorded. RC sample weights were regularly measured for selective and representative 1m sample intervals and independent QA/QC assessment of both drilling practices and sample collection procedures has taken place. As a result, sampling procedures and sample recoveries are considered accurate.

RC and diamond drilling samples were analysed for gold by fire assay methods with AAS finish at ALS Chemex Laboratory in Johannesburg. Approved protocols were applied with regard to insertion of standards, blanks and duplicate assays for every suite of samples submitted per drill hole. Independent consultants have verified that sufficient QA/QC and data validation has been undertaken to verify the integrity of the assay data. All on-site coarse and pulp rejects have been logged and stored for future reference.

RC and diamond drill-hole collars have been variably surveyed by total station DGPS or hand held methods. As the Project develops, more detailed surveys will be completed.

All drill-holes have down hole surveys.

Geological modelling was based on a topographical wireframe provided by Nyota and two separate wireframe surfaces were subsequently generated by the company's independent consultant. Grade interpolations were carried out in three separate domains; namely, fresh albitised zones in drill core and two albite zones above and below the water table. The relationship between albitisation and gold mineralisation provides the basis upon which the model was generated.

Block modelling was based on 40m by 40m in plan view by 10m in the vertical plane. A second model was created for RC drill data beneath the water table to generate a 3D block model defining the different domains used in estimation. Investors should note that block size can affect the mineral resource quantity and quality and further testing will take place to optimise block size.

Resource estimation for the current Inferred Resource is based on an albite selectivity model to generate a total Inferred Resource of 1.38 million ounces of gold at a 0.50g/t Au cut-off. The selectivity model assumes that gold mineralisation is exclusively associated with albitised portions of the host syenite which based on available evidence is deemed accurate and representative. Investors should note that the model parameters may change over time as additional infill drill data is generated. The combination of new drill data and its subsequent interpretation will impact on block size and there may be scope to develop a range of block size options which will give a number of modelling scenarios ranging from a more refined selective mining scenario to a low-grade bulk mining scenario.

The estimate of mineral resources may be materially affected by metallurgical, environmental, permitting, legal, marketing or other relevant issues.

The technical information contained in this Quarterly report has been reviewed and approved by Mr Terry Tucker. Mr. Tucker has sufficient experience which is relevant to the style of mineralization and type of deposit under consideration and to the activity to which he is undertaking to qualify as a Competent Person as defined in the 2004 Edition of the 'Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves and as a qualified person under the AIM Note for Mining, Oil and Gas Companies. Mr.Tucker is a director of Nyota Minerals Limited and is a registered Professional Geoscientist with the Association of Professional Engineers and Geoscientists of British Columbia, Canada.

The information in this announcement that relates to the consultant responsible for the latest resource estimation is based on work completed independently by Mr Neil McKenna, who is a full time employee of Venmyn Rand Pty Ltd, a South African based independent mineral consultant. Mr McKenna is a Member of the South African Institute of Mining and Metallurgy (MSAIMM), a Member of the Investment Analyst Society of South Africa (MIASSA), and also a Member of Geological Society of South Africa (MGSSA) and has sufficient experience which is relevant to the style of mineralization and type of deposit under consideration and to the activity which he is undertaking to qualify as a "Competent Person" as defined in the 2004 edition of the "Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves" and is a "Qualified Person" as defined under the AIM Note for Mining, Oil and Gas Companies. Mr McKenna consents to the inclusion in this announcement of the matters based on his information in the form and context in which it appears.

To view the Appendix 5B, please click on the following web link:http://www.rns-pdf.londonstockexchange.com/rns/1480V_-2010-10-28.pdf

For further information please visit: http://www.nyotaminerals.com or contact:

Terry Tucker

Nyota Minerals Limited

+44 (0) 20 7379 5012

[email protected]

NOMAD

Richard Brown

Ambrian Partners Limited

+44 (0)20 7634 4709

BROKER

Guy Wilkes / Will Slack

Ocean Equities Limited

(+44) (0) 20 7786 4370

BROKER

Rory Scott

Mirabaud Securities LLP

(+44) (0)20 7878 3360

Press enquiries

Charlie Geller / Leesa Peters

Conduit PR +44 (0)20 7429 6604 / +44 (0)75 2823 3383

Or visit: http://www.nyotaminerals.com

Neither the contents of the Company's website nor the contents of any website accessible from hyperlinks on the Company's website (or any other website) is incorporated into, or forms part of, this announcement.