US$2m Loan Facility Completed

Cradle Arc plc / EPIC: CRA.L / Market: AIM / Sector: Mining

19 October 2018

Cradle Arc plc

("Cradle Arc" or the "Company")

US$2m Loan Facility Completed

Cradle Arc (AIM: CRA), the African focused base and precious metals exploration and production company, is pleased to announce, further to its announcement of 8 October 2018, the completion of the restructuring of certain obligations by Leboam Holdings (Pty) Limited ("Leboam") to ZCI Limited and Messina Copper Botswana (PTY) Limited - In Liquidation, thereby enabling the successful conclusion of the Debt Sale Agreement (as referred to therein) between PenMin Botswana Proprietary Limited ("PenMin") and Fujax Minerals and Energy Limited. Accordingly, the loan facility of US$2 million from PenMin, Cradle Arc's largest shareholder, has now been finalised and the funds made available to Leboam.

The loan facility provides Cradle Arc's operating company, Leboam, with sufficient funding to establish an enhanced inventory of key spare parts and improve and rehabilitate the current processing facilities at Mowana and thereby address the intermittent breakdowns and interruptions that were the key reason for the Company's inability to meet its production targets during Q3 2018.

**ENDS**

For further information on the Company, please visit www.cradlearc.com or contact:

This announcement contains inside information for the purposes of Article 7 of Regulation (EU) 596/2014.

About Cradle Arc

AIM-quoted Cradle Arc plc is the 60 per cent. owner of the Mowana copper mine in Botswana, an operational open pit mine and processing facility located in the north-east of the country, approximately 120 km northwest of Francistown.

The Company has an independent open pit ore reserve estimate (Proved and Probable JORC 2012) of 31.8 Mt at 1.17% Cu for 370,800 tonnes contained copper, based on a Dense Media Separation (DMS) mine plan.