QUARTERLY REPORT 31 DECEMBER 2010

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

Quarterly Report to 31 December 2010

Highlights

Tulu Kapi Project, Ethiopia

§ Discovery of high-grade gold feeder zone style mineralisation (including intersections of 15.70m averaging 37.04g/t gold)

§ Further positive results demonstrate continuity of Lode 3 mineralisation

§ Preliminary Economic Assessment Feasibility Study, scheduled for Q1 2011, to encompass new discoveries and recently completed independent structural and geotechnical studies

§ Significant health, safety, community and environmental milestones, including in relation to Environmental and Social Impact Assessment work, the official opening of the Nyota-built Worke Gudji Secondary School in the Tulu Kapi area and completion of a comprehensive Occupational Health and Safety Program for the project

Regional Ethiopian gold exploration

§ Regional airborne geophysical survey comprising 44,700 line kilometres (covering Nyota's entire 3,550 sq km land holding in Ethiopia) completed

§ Commencement of initial 2,000m regional drilling programme

Corporate

§ Funds received from GBP21.58 million capital raising in connection with development of Tulu Kapi and regional targets

§ Acquisition of remaining 20% of Ethiopian regional tenement package to take its interest to 100%

TULU KAPI PROJECT

Drilling update

On 9 December, Nyota announced that high-grade feeder zone style mineralisation, characterised by abundant visible gold and associated high gold grades, had been discovered. Diamond drill ("DD") hole TKBH-074, which intersected the new style of mineralisation, returned intersections which included 25.76 metres ("m") at 23.05 grams per tonne ("g/t"), 15.7m at 37.04 g/t and 4.65m at 89.70g/t gold. The new mineralisation type is characterised by pressure dissolution styolite and fracture veins with biotite and magnetite alteration, plus sulphides consisting of pyrrhotite, pyrite and abundant visible gold. This style of mineralisation is a clear indication that this could be one of the original gold bearing fluids and improved Nyota's understanding of the ore genesis process. Notably, the combination of mineralogy and geophysical signature specific to this style of mineralisation has also been noted elsewhere within the Tulu Kapi area, implying the presence of multiple high-grade feeder zones with the current gold resource largely reflecting distal mineralisation.

Follow-up drilling of the Lode 3 structure (as also announced on 9 December) was very successful, with two DD holes intersecting that mineralised lode and returning assay grades including 25.42m at 1.98g/t and 7.00m at 3.94g/t (TKBH-055) and 28.95m at 1.79g/t and 4.25m at 5.81g/t (TKBH-074). Extension reverse circulation ("RC") drilling conducted during the Quarter resulted in mineralisation being intersected to the north-west of the Tulu Kapi deposit, stepped-out 80m from previous drilling, reconfirming the Company's previous statement that gold mineralisation at Tulu Kapi continues along strike to the north of the existing resource. Grades for those two RC holes included 44m at 2.09g/t and 18m at 3.94g/t (TKRC-111) and 8m at 1.20g/t and 8m at 1.9g/t gold. As a result of these intersections, Nyota has scheduled further drilling to target an extension to the known gold resource northwards. The above assays have provided valuable additional information on mine design and will be included in the resource update being prepared by SRK as part of their overall mandate to produce a Preliminary Economic Assessment Feasibility Study ("PEA") for the project. In addition, ongoing infill drilling conducted during the Quarter to increase confidence in the resource will form part of the overall drill results database used in delivering the forthcoming PEA.

Finally, during the Quarter, a detailed structural mapping programme was completed and seven geotechnical holes were drilled and logged as part of an ongoing study, subsequently completed in December 2010, to provide detailed geotechnical engineering data to determine optimum pit slope angles for mine design.

Health, safety, environment and community ("HSEC")

Nyota's commitment to HSEC facets of the Tulu Kapi project was further underlined during the Quarter with a number of important developments.

Her Excellency, Madame Sinkinesh Ejigu, the Federal Ethiopian Minister of Mines, opened the Worke Gudju Secondary School constructed by Nyota and situated in the Tulu Kapi area at an official ceremony on 7 December 2010. The school, which comprised four school blocks with 12 classrooms (including desks and blackboards) and toilet facilities, has given 454 students registered in grade 9 the opportunity to pursue a secondary school education. Previously, there was no such education facility within 14 km of Tulu Kapi, rendering education difficult or impossible for local families.

At the same time, detailed work in relation to a comprehensive Environmental and Social Impact Assessment ("ESIA") in relation to the Tulu Kapi project was ongoing during the Quarter, with local Ethiopian consultant JEMA International Consulting Plc working in conjunction with SRK to deliver the overall report. The ESIA will include baseline field work, socioeconomic studies and long term monitoring programs such as water and air quality.

Finally, a comprehensive Occupational Health and Safety Program created by Nyota in conjunction with 1984 Enterprises Inc. has also been prepared, completed and implemented in relation to the Tulu Kapi project (and will serve as a template for any future regional discovery projects with which Nyota may become involved).

REGIONAL ETHIOPIAN GOLD EXPLORATION

During the Quarter, the 44,700 line kilometre airborne geophysical survey over Nyota's entire Ethiopian land holding package (comprising approximately 3,550 sq km) was completed by Perth-based UTS Aeroquest. Data gathered from the survey is in the process of being analysed and interpreted, with results and recommendations for exploration activity expected to be available during the first Quarter of 2011. In the meantime, Nyota's regional exploration programme has continued, with the commencement in early December 2010 of an initial 2,000m diamond drilling programme for the Company's Billa Gulliso and Yubdo Exploration Licenses. This programme, consisting of approximately 10 DD holes concentrated in the north eastern portion of the structure known as the "Guliso Trend" and the south eastern portion of the Yubdo license, is targeted to focus on several high-grade gold targets identified from previous soil geochemistry, trench, diamond drilling and IP Resistivity/Chargeability anomalies generated by Nyota in 2010. The Guliso Trend in particular contains a number of targets with significant gold mineralisation, which appears to relate to regional scale shear systems with high concentrations of quartz-carbonate-tourmaline-pyrite veins. A new drill rig (the fifth DD rig currently mobilised to the Tulu Kapi site) has been contracted with the Ethiopian Geological Survey to undertake the work.

Amongst the targets for this regional programme are Soyoma and Dina. As previously announced by the Company, the former has returned previous trench results of up to 14.2m at 8.2g/t gold over a 200m strike length (supported by high chargeable and high resistive IP anomalies, which continue to the west-southwest on the other side of a north-northeast cross-cutting structure which also contains several historical gold workings). The latter has returned trench results of up to 8.75m at 1.23g/t and test borehole results of up to 7.1m at 8.23g/t. Historical mining activities at Dina extend along strike length of over 1,000m. This north-northeast trend is supported by anomalous gold in soil, trench and IP Resistivity and Chargeability anomalies.

CORPORATE

Fundraising of GBP21.58 million

During the Quarter, Nyota 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 was arranged in September 2010 and was conditional only upon Nyota shareholder approval, which was obtained at a shareholder meeting on 1 November 2010. The funds generated from this capital raising are being utilised to fast track the exploration and development of Tulu Kapi and to fund the Company's regional exploration programme in Ethiopia.

Acquisition of remaining 20% interest in regional tenement portfolio

Further to the acquisition of an 80% interest in a portfolio of highly prospective Ethiopian regional tenements in June 2010, the Company concluded an agreement during the Quarter to acquire the remaining 20% interest in those tenements (taking its interest to 100%). The tenements, comprising two Exploration Licenses having a combined area in excess of 3,000 sq km, cover the Mendi, Gombe, Dura and Bambasi claim blocks which are situated to the north of the Company's flagship Tulu Kapi project. They are thought by Nyota to be highly prospective, with a number of good gold mineralisation showings in the area (both as primary and alluvial indications, with some of them associated with base-metal anomalous zones). The recently-completed airborne regional geophysical survey (mentioned elsewhere in this Quarterly report) encompassed these areas and detailed exploration is intended to commence within the next few weeks.

2,325,685 Nyota shares were issued on 4 January 2011 as consideration for the acquisition of the remaining 20% interest in these tenements.

MUREMERA NICKEL PROJECT

The Company's primary focus during the Quarter was on its Ethopian Operations and consequently no further work was carried out on the Muremera Nickel Project during this time.

To view the ASX Appendix 5B, please click on the following web link:

http://www.rns-pdf.londonstockexchange.com/rns/2500A_-2011-1-28.pdf 

The technical information contained in this Quarterly report has been reviewed and approved by Mr Terry Tucker, P.Geo. 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.

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 / Jennifer Boorer

Ambrian Partners Limited

+44 (0)20 7634 4700

BROKER

Guy Wilkes / Will Slack

Ocean Equities Limited

(+44) (0) 20 7786 4370

BROKER

Rory Scott

Mirabaud Securities LLP

(+44) (0)20 7878 3360

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.