Shareholder Agreement - RHA Tungsten Project, Zimbabwe

Premier African Minerals Limited / Ticker: PREM / Index: AIM / Sector: Mining 30 September 2013 Premier African Minerals Limited (`Premier' or `the Company') Shareholder Agreement signed with NIEEF for RHA Tungsten Project, Zimbabwe Premier African Minerals Limited, an AIM quoted multi-commodity naturalresource company with mineral projects located in Western and Southern Africa,is pleased to announce that RHA Tungsten Private Limited (`RHA') hassimultaneously concluded a shareholder agreement and a management agreementwith the National Indigenisation and Economic Empowerment Fund (`NIEEF'),representing and acting for and on behalf of the Government of Zimbabwe (`theAgreements'). RHA owns Premier's RHA Tungsten Project in north-west Zimbabwe(`the Project'). In accordance with Indigenisation policy, NIEEF will hold 51%of the issued share capital of RHA. Significantly, Premier's wholly ownedsubsidiary, ZimDiv Holdings Limited, which in turn controls the remainingequity in RHA, is appointed as the Manager of the Project for an initial 5 yearterm. Principal terms of the Agreements include: * Total expenditure incurred by RHA prior to 1 September 2013 will accrue as an interest bearing loan due to Premier. * From 1 September 2013, RHA became responsible for its own funding and neither Premier nor NIEEF shall be under any obligation to contribute to its exploration and development costs. Premier will provide interim assistance for on-going operations until alternative finance is in place. * Once RHA has obtained sufficient committed finance to enable it to develop and construct the mine and the Project has achieved commercial production, Premier will issue to NIEEF such number of new ordinary shares of nil par value in the capital of Premier as are equal in value, on the basis of a 20 day volume weighted average price prior to such issue, to US$750,000. * An Entrenched dividend policy that proportions profit distribution to meet agreed debt repayment terms firstly, and thereafter equally to future development and dividend payment. Premier's CEO George Roach commented, "RHA has been an indigenised Zimbabweancompany since Premier first entered into a letter of intent described in ourAdmission Document, and the early completion of the Agreements is indicative ofthe excellent relationship and mutual understanding that we have enjoyed withNIEEF for some time now. In particular, that RHA is responsible for its owndevelopment costs both eases the burden on Premier and broadens the sourcesfrom which finance will be available to develop the Project into a low-capextungsten mine in the near-term. "We are in advanced negotiations on an off-take and project finance and we havecommitted to the additional confirmatory work suggested in the recentlypublished Mining Study and Preliminary Economic Assessment that highlighted therobust economics of the Project with an undiscounted NPV of US$120 million andIRR before tax of 378% projected." **ENDS** For further information please visit www.premierafricanminerals.com or contactthe following: Pamela Hueston Premier African Minerals Limited Tel: +44 (0) 755 778 3855 Tony Rawlinson Cairn Financial Advisers LLP (Nomad) Tel: +44 (0) 207 148 7900 Jerry Keen Shore Capital Stockbrokers Limited (Broker) Tel: +44 (0) 207 408 4090 Edward Mansfield Shore Capital Stockbrokers Limited (Broker) Tel: +44 (0) 207 408 4090 Felicity Edwards St Brides Media & Finance Ltd (PR) Tel: +44 (0) 20 7236 1177 Charlotte Heap St Brides Media & Finance Ltd (PR) Tel: +44 (0) 20 7236 1177