Quarterly Report

30 April 2015

Nyota Minerals Limited

('Nyota' or 'the Company')

QUARTERLY REPORT

Nyota Minerals Limited (ASX/AIM: NYO) provides its Quarterly Report for the three months ended 31 March 2015.

HIGHLIGHTS

· Acquisition of 70% of the Ivrea Nickel-Copper Project in Italy ('Ivrea Project')

o a highly prospective brownfield project known to host numerous historic nickel-copper mines 

o amenable to low-cost modern exploration techniques such as an airborne Electromagnetic survey ('EM') to rapidly evaluate the exploration potential

· Exploration of the Northern Blocks in Ethiopia ceased at the end of the period

· Management is actively evaluating new opportunities to diversify commodity and geographic spread

· Cash of A$0.40m at the period end

Richard Chase, Chief Executive Officer, said "During the quarter we have focussed on Nyota's future, both inside and outside of Ethiopia, as we look to diversify our commodity and geographic reach. In line with this, we were delighted to announce the acquisition of a 70% interest in the Ivrea Project in Italy - a project which we believe has the potential to yield significant value for the Company with modest exploration expenditure.

"Our focus remains on keeping operational and corporate costs at a very low level, as we evaluate and implement a value accretive plan to define our future."

IVREA NICKEL-COPPER PROJECT

Nyota acquiring 70% 

On 10 February Nyota announced that it had entered in to a binding agreement to acquire 70% of KEC Exploration Pty ('KEC') whose sole focus is the Ivrea Project in the Piemonte region of northwest Italy.

At the time of the announcement KEC had been issued the Bec permit and has subsequently (announced 22 April 2015) been issued with a second, adjacent licence (the Galerno permit). Two more permit applications are being processed.

The Ivrea Project is focused on the evaluation of that part of the Ivrea Gabrroic Complex that hosts a number of small mines that operated intermittently between the mid-1800s and early 1900s, with some being brought back into operation between 1937 and 1949.

The mines are typical of the lode type, high grade underground style of the time and annual production for the district is recorded as being 30-40 tonnes of nickel from ore with nickel grades typically ranging from 0.3-1.5% nickel. Ores were smelted locally to a matte containing nickel, copper and cobalt (one reference from 1898 citing matte containing 24% nickel, 12% copper and 6% cobalt) some of which was processed locally and the remainder exported primarily to Germany for refining.

The Ivrea Complex has a rare combination of known nickel occurrences, sufficient scale to host a significant nickel deposit, and no modern exploration activities. As well as nickel, there is strong potential for significant by-product credits from copper, cobalt and precious metals. A combination of these factors plus the fact that virtually no systematic exploration has taken place since the mines closed, represents a strong opportunity to build value rapidly. Greater detail is given in the announcement of 10 February 2015.

Transaction Summary

Nyota agreed to pay a consideration of 75 million new ordinary shares in Nyota ("Ordinary Shares") and cash of A$100,000 to acquire 70% of the issued share capital of KEC ("Consideration"). Based on the closing mid-market price of an Ordinary Share of 0.04p on 9 February 2015 ("Closing Price"), the Initial Consideration amounted to approximately A$158,534 (equivalent to approximately £81,252). The A$100,000 comprised a fee of A$25,000 and A$75,000 of licence-related costs.

Half of the consideration was payable immediately and the balance when the Galerno permit was issued. As a result, at the date of this report, the total consideration has been paid.

Nyota will fund 100% of KEC's expenses and continue to do until such time as either it decides not to continue with the Ivrea Project, or a JORC-Compliant Mineral Resource of 50,000 tonnes of contained nickel at an average grade of not less than 0.75% (or a metal equivalent) is defined anywhere within the Ivrea Project area (the "Project Hurdle Rate"). Nyota and KEC have therefore agreed an initial and non-binding exploration work programme and budget for the next 12 months with a target spend of at least A$150,000; further details of which are given below. Should Nyota decide to spend less than this amount the vendors would be entitled to a payment of A$50,000 (equivalent to approximately £26,000), payable in cash or shares at Nyota's discretion.

In the event that the Project Hurdle Rate is met (and Nyota has not withdrawn from the Ivrea Project) a deferred consideration will become payable to the vendors comprising a further cash payment of A$250,000 and 150 million new Ordinary Shares (subject to shareholder approval at the time of issuance); in aggregate amounting to approximately A$367,000 (equivalent to approximately £188,000) based on the Closing Price ("Deferred Consideration"). Following payment of the deferred consideration KEC's shareholders will be required to contribute to KEC's funding pro-rata their respective shareholding.

KEC was incorporated in 2007 and other than its interests in the Ivrea Project licence applications has not traded and has not to date prepared any accounts. Nyota has appointed its current three directors as directors of KEC. The vendors, Chris Reindler and Marcello de Angelis, who prior to the acquisition controlled 100% of KEC, remain on the board of KEC.

Mr. de Angelis is an Italian national, a geologist with over 40 years' experience in uranium, base and precious metal exploration and development and a former Executive Vice President of Agip Resources Ltd in which capacity he was responsible for the discovery and fast-track development of the Radio Hill nickel-copper deposit in Western Australia. He recently introduced Energia Minerals Ltd to the Gorno zinc project in northern Italy.

Mr. de Angelis will have a consultancy agreement with Nyota to provide exploration management services in Italy.

Mr. Reindler has been active in the exploration industry for over 40 years, primarily in Australia. He has been involved in several new concept projects and has completed joint ventures with a significant number of major exploration and mining companies.

Project Progress

During the period effort has been directed at working with the authorities to obtain the exploration permits and to commission the airborne geophysical EM survey. The objective is to fly the survey before the warmer summer weather creates variable, often prohibitive, flying conditions in the alpine foothills.

NORTHERN BLOCKS

100% owned by Nyota

Fieldwork recommenced in January 2015 focusing on the NW-trending structural corridor that hosts the known mineralisation at Boka West, Bendokoro and Tsoli-Mole. Field activities comprised mainly of mapping and sampling (soil; heavy mineral concentrate and rock chip).

This work came to an end in mid-March 2015. Funding for the proposed drilling of Boka West has not been forthcoming and the Board therefore put the projects on care and maintenance pending the outcome of the strategic review.

STRATEGIC REVIEW

Since the rejection in January 2015 of the mechanised alluvial mining licence application submitted in April 2014, Nyota has conducted a strategic review of its activities in Ethiopia and new opportunities therein. The main focus for which has been to seek third party financial and technical support in order to justify the renewal of the two Northern Block licences and to seek equity funding support for on-going operations in Ethiopia.

At the date of this report there is no agreement with any such third party and current and potential investors have indicated they are unwilling to contribute any further to the funding of the Northern Block licences or to Ethiopia in general. Accordingly Nyota has ceased funding its Ethiopian subsidiaries. Although discussions regarding the sale of the northern blocks are continuing Nyota has commenced its withdrawal from the country.

In the meantime a number of alternative opportunities are being considered, with site visits and due diligence conducted as appropriate. The Board anticipates that further announcements will be made in due course.

CORPORATE AND FINANCE

Finance

At the end of the quarter Nyota had cash of A$0.40m. This cash position is after payment of the A$100,000 total acquisition cost for 70% of KEC.

Summary of Tenements (ASX Listing Rule 5.3.3)

As at 31 March 2015, the Group held the following interests in exploration tenements:

To view the Appendix 5B form, please follow this link:

http://www.rns-pdf.londonstockexchange.com/rns/8076L_-2015-4-30.pdf 

NOTES:

On 22 April 2015 Nyota announced that KEC had received the Galerno Permit. Nyota's equity ownership of this permit is identical to that for the Bec Permit.

The Brantham and Towchester licences were renewed for 12 months in early December 2014 with an effective date of 30 July 2014 (refer to announcement 11 December 2014). The licences are now in their fifth year and the current Brantham license area is 717km2 (reduced from 1,346km2 in the fourth year) and the current Towchester licence area is 48km2 (reduced from 1,002km2 in the fourth year).

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

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