Upgraded JORC Resource

AIM: KEFI 6 March 2014 KEFI Minerals Plc ("KEFI" or the "Company") SAUDI ARABIAN EXPLORATION AND DEVELOPMENT UPDATE UPGRADED JORC RESOURCE AT JIBAL QUTMAN PROJECT KEFI Minerals, the AIM-quoted gold and copper exploration and developmentcompany with projects in the Kingdom of Saudi Arabia and Ethiopia, is pleasedto announce a further update from the Jibal Qutman Project in Saudi Arabia.KEFI Minerals is the operator for the project under the Company's 40%-ownedGold & Minerals Joint Venture ("G&M"). HIGHLIGHTS * A JORC-compliant total resource of 495,194oz Au (16.7Mt at 0.92g/t Au) has now been calculated, a re-validation and an increase over the previously reported total resource of 480,000oz Au, with a material reclassification from the "Inferred" category to the "Indicated". * The Indicated Resource now stands at 14.4Mt at 0.94g/t Au for 435,000oz Au (from 383,000oz Au at 0.87g/t Au) and 2.3Mt at 0.81g/t Au in the Inferred category for 60,000oz Au. * Importantly, on-going drilling continues to expand the zone of mineralisation on three deposits at Jibal Qutman with best RC drill results of 17m at 1.92g/t Au (including 7m at 3.53g/t Au), 16m at 1.24g/t Au (including 6m at 2.35g/t), 18m at 1.07g/t Au and 7m at 1.33g/t Au. * An independent verification of G&M's resource model was performed by AMC Consultants Pty Ltd. The total tonnes and grade were confirmed using the same resource criteria applied by G&M to the Jibal Qutman deposits, which reaffirms the basis of resource estimation as well the calculations thereof. * The Pre-feasibility Study at Jibal Qutman is on schedule to be completed by the end of March 2014 for review and discussion with the regulatory authorities in respect of the intended application for a Mining Licence. Jeff Rayner, Managing Director of KEFI Minerals, commented: "We are delighted with the results of the upgraded JORC resource estimation atthe Jibal Qutman Project and an Independent Consultant's confirmation of thetonnes and grade of the prospect. In essence, we are now reporting more ouncesfrom fewer tonnes at a higher grade, with higher levels of confidence fromwithin an expanding zone of mineralisation.Open pit optimisation studies arealso producing encouraging results and we are on schedule to complete the PFSthis quarter. "In Ethiopia, we are in the process of completing a new JORC Resource estimateat Tulu Kapi, which is being similarly independently reviewed, and anappropriate update will be issued to shareholders later in this quarter. Wevery much look forward to reporting on the progress from our projects in bothSaudi Arabia and Ethiopia and continue to be excited about the year ahead." JIBAL QUTMAN PROJECT Resource Update A digital resource model for the Jibal Qutman project has been calculated usingSurpac and Datamine mining software packages. All sample results generated forthe project from inception to 27 January 2014 were used in calculating thelatest resource model but there remains a back log of over 1,300 samples in thelaboratory awaiting final assay. Geological interpretation and construction of ore body wireframe modelling wascarried out in Surpac constraining mineralised intercepts at a 0.2g/t Au gradeboundary. Block model construction, variography, geostatistics studies andgrade estimation was carried out in Datamine. An ordinary kriged and an inversedistance to the power of 2 (ID2) check estimate was carried out. Final tonnesand grade is reported on the kriged estimate from Datamine. The resource classification for the Jibal Qutman deposit is categorised inaccordance with the Australian Code for Reporting of Exploration Results,Mineral Resources and Ore Reserves [JORC Code (2012)]. The updated Resource is now 16.7Mt at 0.92g/t Au for 495,000oz Au: - 14.4Mt at 0.94g/t Au for 435,000oz Au in the Indicated category and - 2.3Mt at 0.81g/t Au in the Inferred Category for 60,000oz Au. The Resource categories of the individual zones are tabled below: Zone Volume Tonnes Au grams oz Main 818,517 2,169,070 0.99 2,147,079 69,030 West 2,464,811 6,531,750 0.89 5,791,088 186,188 Indicated South 1,103,739 2,924,909 0.79 2,303,940 74,073 3K Hill 999,732 2,649,290 1.19 3,149,592 101,262 4K Hill 53,143 140,828 1.06 148,827 4,785 Total 5,439,942 14,415,847 0.94 13,540,526 435,338 Main 210,249 557,159 0.78 433,099 13,924 West 209,801 555,973 0.85 474,128 15,244 Inferred South 182,054 482,443 0.60 290,377 9,336 3K Hill 254,866 675,395 0.94 636,893 20,477 4K Hill 11,067 29,328 0.93 27,226 875 Total 868,037 2,300,299 0.81 1,861,722 59,856 Grand 6,307,979 16,716,145 0.92 15,402,248 495,194 Total This compares with the last resource update on 28 November 2013 totalling 7.7Mtat 0.84g/t Au for 484,000oz Au and comprised of: - 13.6Mt at 0.87g/t Au for 383,000oz Au of Indicated Resource, and - 4Mt at 0.74g/t Au for 97,500oz Au of Inferred Resource. The drill results incorporated into the new Mineral Resource were mainly frominfill drilling at the West, Main, South and 3K Hill Zones. These resultsallowed confirmation of the general size and shape of the mineralisation andresulted in the upgrade of 52,000oz of previously Inferred Resource at aslightly higher grade with fewer tonnes, to an Indicated Resource category. Mineralisation has been intersected in wide spaced RC drill holes up to 300m tothe south of 3K Hill. This area is masked by a thin cover of sand (1m thick)and there is potential for the mineralised structure to continue southwards for2km towards the Main and West Zones. Encouraging assay results are to hand from limited RC drilling at the 4K Hillprospect. AMC Independent Resource Review AMC Consultants Pty Ltd (AMC) was contracted to verify G&M's updated JibalQutman Mineral Resource model for estimated tonnes and grade and to reviewvarious aspects of the Mineral Resource estimation method. It is important tonote that AMC was not contracted to sign off as the Competent Person (CP). CPsign off would require a more comprehensive and lengthy review of all sampling,assay and geostatistical procedures which G&M will commit to in an independentreview at a later date, when all known economic mineralisation is closed offand a final resource model completed. AMC has completed this review and submitted a draft report that confirmed thetonnes and grade of the G&M resource model, reported at a 0.2g/t Au cut-off. AMC's review was based on data provided by G&M, including, drill hole database,geological interpretation, wireframes for the mineralised interpretation,natural topography interpretation, bulk density data, assay composites,variography and block models. AMC has not undertaken an assessment of datacollection and QA/QC monitoring procedures. AMC is currently conducting "an open pit optimisation" study, and capex andopex estimation for mining costs at Jibal Qutman. The economic gold cut-offselected for the pit optimisation study is 0.3g/t Au. AMC reported the G&M Mineral Resource at a 0.5g/t Au cut off as follows: Category Tonnes (t) Grade (g/t Au) Contained metal Au oz Indicated 10,052,045 1.18 381,740 Inferred 1,974,541 0.87 55,477 Total 12,026,585 1.13 437,188 G&M considers this estimate to be a positive result, showing that the JibalQutman mineralisation is robust, with 88% of the total resource at a 0.2g/t Aucut off grade reporting to within a higher economic cut off of 0.5g/t Au. AMC commented: * While the interpretation of the mineralisation is generally reasonable, the interpretation should be revised to finesse the extent of the mineralisation and to ensure use of an appropriate lower cut-off grade and mineralisation boundary; * The global bulk density of 2.65t/m3 assigned to the block model may be considered conservative when compared with the average bulk density values measured on 40 G&M core samples. AMC suggests integrating the measurements done up to now with more measurements to refine the model; * 1m compositing, used by G&M was considered appropriate, and therefore used by AMC in its review. Among AMC recommendations: * The mineralisation interpretation should be updated to incorporate new drilling upon receipt of logging information and assays results, and the model of oxidation state should be included; * In order to demonstrate grade continuity and increase the confidence in the mineral resource, further drilling should be undertaken in areas of broader spaced data. G&M note that AMC is in agreement with G&M's in-house estimate of volume and grade, as estimated using G&M's parameters, which was the main goal of the scope of work. G&M notes also that the bulk density model is conservative. The adoption of AMC's suggestions, to be fulfilled during the DFS stage in due course, together with the results of the additional drilling in progress, will help to improve the Mineral Resource model and understanding of the deposit at Jibal Qutman. Exploration and Infill Drilling Positive results have been returned from the ongoing exploration RC drillingcampaign at Jibal Qutman, expanding the mineralisation in four drilled zones:Main Zone, 3K Hill, 4K Hill and the SSE extension of the South Zone. Thefollowing table summarises grade and length of mineralised intervals: Hole From To Interval Au Zone m m m g/t JQRC220 30 33 3 2.04 S. Zone extension 34 49 15 0.64 JQRC221 82 85 3 1.73 M. Zone 95 98 3 4.15 JQRC223 63 67 4 2.45 M.Zone JQRC229 11 28 17 1.92 3K Hill Including 14 21 7 3.53 JQRC230 83 93 10 1.78 3K Hill JQRC237 6 22 16 1.24 3K Hill Including 6 12 6 2.35 JQRC238 27 33 6 2.18 3K Hill JQRC240 98 120 22 1.15 3K Hill including 109 112 3 2.87 JQRC242 8 23 15 1.08 4K Hill including 20 23 3 4.04 JQRC241 33 36 3 1.14 S. Zone extension JQRC243 21 39 18 1.07 S. Zone extension 54 56 2 1.01 70 72 2 1.90 JQRC245 36 43 7 1.33 4K Hill JQRC246 33 39 6 1.15 4K Hill 41 46 5 1.11 Drilling in the south zone has shown that mineralisation extends, hidden undera thin scree cover, for more than 200m to the SSE, and is still open. HoleJQRC220 returned 3m at 2.04g/t Au, and 15m at 0.64g/t Au at shallow depths;JQRC241 returned 3m 1.14g/t Au, and JQRC243 returned multiple mineralisedintervals as 18m at 1.07g/t Au, 2m at 1.01g/t Au and 2m at 1.90g/t Au. Themineralised intervals in drill holes shows the same features typical of theSouth Zone, and are in continuity, even if offset to the East, with the mainportion of the South Zone. At 4K Hill a total of 19 additional RC shallow holes were drilled on a 50x50grid. Drilling allowed to visually recognise mineralisation at shallow depth inmore than 10 holes, extending the alteration halo for 150 m to the south.Results for three RC holes were received from previous announcement, some ofthem showing multiple mineralised intervals. Results confirm the interpretationof a set of east dipping mineralised quartz/stockwork bodies, with hole JQRC242returning 15m at 1.08g/t Au (including 3m at 4.04g/t Au), JQRC245 returning 7mat 1.33g/t Au, JQRC246 returning 6m at 1.15g/t Au and 5m at 1.11g/t Au. Allmineralised intervals are at shallow depths. Drilling has been temporarilyhalted at 4K Hill pending receipt of all results. A significant backlog in assay turnaround, with more than 1,300 RC drillresults awaited, is unfortunately causing significant delay in updating theresource estimation. Enquiries KEFI Minerals PlcJeffrey Rayner +90 533 928 1913 Fox-Davies CapitalSimon Leathers +44 203 463 5022 Bishopsgate CommunicationsNick Rome/Anna Michniewicz +44 207 107 1890 References in this announcement to exploration results and mineralresources have been approved for release by Mr. Jeffrey Rayner. Mr Rayner is ageologist and has more than 25 years' relevant experience in the field ofactivity concerned. He is a Member of the Australasian Institute of Mining andMetallurgy (AusIMM) and has consented to the inclusion of the material in theform and context in which it appears. Further information on KEFI is available at www.kefi-minerals.com KEFI Minerals in the Kingdom of Saudi Arabia In 2009, KEFI formed the Gold and Minerals Joint Venture ("G&M") in SaudiArabia with local Saudi partner Abdul Rahman Saad Al-Rashid & Sons CompanyLimited ("ARTAR"), to explore for gold and associated metals in the ArabianShield. To date, the G&M has conducted preliminary regional reconnaissance andlodged 23 Exploration Licence Applications (ELAs), of which 4 have beengranted. The ELAs were initially applied for and granted to ARTAR. Incorporation of G&Mhas been completed and any granted Licences will be transferred into G&M in duecourse. The Kingdom of Saudi Arabia has instituted policies to encourage mineralsexploration and development and KEFI Minerals supports this priority by servingas the technical partner within G&M. ARTAR also serves this Government policyas the major partner in G&M, which is one of the early movers in the modernresurgence of the Kingdom's minerals sector. KEFI in Ethiopia KEFI Minerals has acquired 75% of Tulu Kapi licence in western Ethiopia andintends to refine the development plan for the project, aimed at reducing thepreviously planned capital and operating expenditure. Early research hasyielded encouraging results and was summarised in recent announcements inrespect of the Tulu Kapi acquisition transaction. The Company is now positioned as an operator of two advanced gold developmentprojects within the highly prospective Arabian-Nubian Shield, with anattributable 1.6Moz of JORC-compliant mineral resource plus significantresource growth potential. By 2017, the aggregate estimated production at theseprojects attributable to KEFI Minerals could exceed 80Kozpa Au, generating cashflows for further exploration and expansion as warranted, recoupment ofdevelopment costs and, when appropriate, dividends to shareholders. -Ends-