Armadale Capital Plc Armadale or the Company Robust Project Demonstrated by Mpokoto Feasibility Study HIGHLIGHTS

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1 Armadale Capital Plc / Index: AIM / Epic: ACP / Sector: Investment Company 8 February 2016 Armadale Capital Plc ( Armadale or the Company ) Robust Project Demonstrated by Mpokoto Feasibility Study Armadale, the AIM quoted investment company focused on natural resource projects in Africa, is pleased to announce the preliminary results of the Feasibility Study ( the Study ) for Phase 1 of the Mpokoto Gold Project ( Mpokoto or the Project ) in the Katanga Province of the Democratic Republic of Congo. The Study is based on the intended initial phase of mining at Mpokoto, focusing on the shallower oxide portion of the resource which will be prioritised for exploitation in conjunction with the continued development of the deeper unweathered ore designated for Phase 2. The Study, which demonstrates robust fundamentals, provides the foundation for Armadale to further progress discussions with A-MCS, the potential funders of the Project as well as identify further expansion opportunities at Mpokoto. HIGHLIGHTS Mpokoto has continued to demonstrate it is a robust low cost gold development project with attractive fundamentals. Study focused on initial phase of mining Phase 1 based only on the shallow oxide Orebody (30-40m) Mpokoto has a current Total Mineral Resource of 678,000oz gold ( Au ) from million tonnes ( Mt 1.45g/t Au at a cut-off grade of 0.5g/t Open pit mining for Phase 1 presently scheduled over four years (annual mine production of 720,000 tonnes per annum) to produce an average 24,900 oz of gold per annum Total revenues from Phase 1 of US$138.6 million, with average annual revenues of US$30.80 million at a gold price of US$1,250/oz and average annual pre-tax net operating profit of US$11.14 million Capital cost of US$25.15 million, with operating costs of US$792/oz Pre-tax net present value ( NPV ) for Phase 1 of US$19.05 million based on a discount rate of 5% and a gold price of US$1,250/oz and internal face of return ( IRR ) of 44% Expanded Scoping Study demonstrated Phase 2 had an additional NPV of approximately US$20 million Significant further upside potential from unweathered ore at 30m depth Phase 2 of the Project Completion of the Study provides a foundation to commence finalisation of funding of the Project

2 Peter Marks, Chairman of Armadale, commented: The results of the Study demonstrate that Mpokoto is a commercially valuable gold development project, confirming its technical viability as well as offering attractive returns and near term production potential. Its positive returns are even more significant given that the Study covers Phase 1 of the Project only, which covers a fraction of the total known mineralisation. The Expanded Scoping Study showed that Phase 2 of the Project, which relates to the deeper unweathered ore, had a pre tax NPV of approximately US$24 million, taking the overall potential NPV of the Project to US$43 million. There is also further significant upside available from expanding the existing resource base of the Project, particularly the oxide resource, which is lower cost to process. Having completed this initial phase of the Study, we are now focused on finalising the funding of the Project with our partners, A-MCS. These discussions are ongoing, and once finalised construction of the Project can commence. Alongside these discussions the board will consider further options to optimise the Project as well as looking at options to expand the overall resource. We look forward to updating the market with further progress. The Company will be presenting the results of the Study at the Indaba mining conference today and an updated corporate presentation focussed on the scoping study will also be available on the Company s website Overview Armadale have previously undertaken a two level scoping assessment for the Project. The results of this work were reported during October Subsequent to the completion of this Study further work has been undertaken on the Project with the aim of progressing the Project to feasibility study: Additional geotechnical evaluation of the fresh un-weathered rock A pit optimisation study using suitable mining software Design of open pits based on pit optimisation Consultations with mining contractors on the mining costs A significant metallurgical test work programme Design of the mine surface and infrastructure layout

3 The feasibility study work undertaken to date principally covers only Phase 1 of the Project, which targets oxide ore. Some transition ore is processed later in the life of the mine. Work on Phase 2, the mining and processing of sulphide material, remains at concept level, having been covered in the Expanded Scoping Study. The following are the headline results of the work completed to date on Phase 1: Phase 1 of the Project examines the mining and processing of the near surface ores: Oxide ore Transition ore Indicated and inferred categories of mineral resources are considered in the evaluation The Study supports a 60ktpm scenario to produce 111 koz (recovered) over 4.4 years The metallurgical process flow sheet for treating oxide material has been determined: The initial process plant for oxides is scrubbing, crushing, milling, gravity concentration, cyanide leaching, elution, electro winning and finally smelting The plant is costed on a low Capital modular approach The key technical, operational and financial parameters for the Mpokoto Phase 1 Project are summarised in the following table. Parameter Unit Value Ore Mined Mt 3.02 Average head grade mined g/t 1.40 Waste mined Mt 7.4 Strip ratio Waste:ore 2.4 Contained gold (RoM) Koz 136 Average gold recovery rate (Oxides) % 84 Average gold recovery rate (Transition) % 73 Average annual production over LOM Oz 24,900 Open pit mine life Years 4.4 Processing plant capacity Mtpa 0.72 Total LoM Capital Cost US$m 25.1 Start-up capital payback period Months 41 Total cash costs (excluding taxes and royalties) US$/oz 792 Total cash costs (including taxes and royalties) US$/oz 866 Project Ownership, Licence and Location The Mpokoto Gold Project is situated in the south west of the Katanga Province of the DRC. The Project is located approximately 200 kilometres to the west of the town of Kolwezi and

4 approximately 150 kilometres east of the Angolan border town of Dilolo. Mines d Or de Kisenge sarl ( MDDK ) hold 32 exploration licences (Permis de Recherche) in the Kisenge area where the Mpokoto Project is situated, pursuant to a Convention. MDDK has secured a separate mining licence over the Mpokoto Project which is valid for an initial term of 30 years commencing 30 September MDDK is 80% owned by Kisenge Limited and 20% by Enterprise Miniere de Kisenge-Manganese sarl ( KMC ), a government entity. Armadale owns Kisenge Limited. Figure 1: Mineralised zone location within larger licence area Geology and Mineral Resource Statement The Mpokoto area is a metavolcanic-sedimentary succession referred to as the Lukoshi Formation with metamorphism to amphibolite grade. The gold mineralisation is hosted within sheared interlayered conglomeratic sandstones. It occurs as northwest to southeast striking and moderately south and southwest dipping sheared intervals between clastic meta-sedimentary rocks in the hanging wall and meta-igneous rocks in the footwall. The deposit contains oxide, transitional and primary sulphide ore types with oxide ores from surface to approximately 30 to 40 metres below surface. The table below summarises the updated mineral resources currently

5 identified at the project site. The resource update was completed and published in October 2014 and shows a significant increase in the resources from the previous March 2014 resource statement as well as significant movement of resources into higher confidence resource categories. A cut-off grade of 0.5 g/t has been used in resource declaration while 0.7 g/t has been used in the mine planning. MINERAL RESOURCE RESULTS FOR MPOKOTO (AU>=0.5G/T) Weathering Classification Tonnes Au g/t Ounces Measured Indicated 3,600, ,600 Oxide Sub-total 3,600, ,600 Inferred 440, ,400 Total 4,030, ,000 Measured Indicated 2,740, ,700 Transitional Sub-total 2,740, ,700 Inferred 390, ,300 Total 3,130, ,000 Measured Indicated 4,720, ,000 Fresh Sub-total 4,720, ,000 Inferred 2,700, ,100 Total 7,410, ,100 All Grand Total 14,580, ,100 In addition to the declared mineral resources, CSA Global Pty Ltd have identified 2.4 to 3.0 million tonnes of material as an Exploration Target tonnage in a grade range of 1.25g/t to 1.5g/t, for an additional 120, ,000oz of gold. The areas where this material has been identified is along the strike of the orebody either side of and between the planned open pits. Mine Plan In order to identify payable material and to optimise the mine planning for the Project, a pit optimisation study was undertaken using Datamine NPV Scheduler optimisation software. The inputs into this optimisation study were based on the previous technical and economic work undertaken on the project. Selection of the optimal pit on which to base pit design work was based on maximising NPV, while minimising cost per ounce produced.

6 Mining is planned to be undertaken by standard open pit methods, due to the differing metallurgical process recovery of the different types of material sequencing of the mining will focus on mining oxide material first followed by transition ore. This approach is supported by the fact that the different material types lie sequentially on top of each other with oxide material at surface followed by transition and fresh material. The oxide ores planned to be mined initially lie in the deeply weathered zone. The rock in this zone is weak and friable and it has been assumed that the material will be free dig, down to depths of approximately 30m to 40m. Waste and ore will be loaded using a hydraulic shovel tipping into 40 tonne articulated dump trucks for hauling to the plant or waste dumps. Waste dumps will be adjacent to the pits. Below the weathered zone drill and blast will be employed on transition material prior to loading and hauling. Mining costs will therefore differ for each material type. Five discrete pits have been identified along the strike of the orebody, with maximum depth of mining 60m below surface in the main Pit A. The mine is planned to produce at 60,000tpm with 73% of production being mined from the main pit. A total of million tonnes will be mined at a strip ratio of 2.43 tonnes of waste to one tonne of ore. The run of mine grade is estimated at 1.40g/t and a total of 136,210 oz of gold is delivered to the mill. The material mined consists of the different material types as follows: Oxide material: 78% Transition material: 22% Material contained in the mining inventory is split according to the following JORC mineral resource categories: Indicated resource category: 91% Inferred resource category: 8% Exploration potential: 1% Metallurgy and Processing The Phase 1 plant will be constructed to process predominantly oxide ores. Phase 2 of the Project covers the mining and processing of sulphide ore. The ore that will be delivered to the plant initially is amenable to gravity methods of gold recovery. The process is therefore relatively simple, consisting of scrubbing, crushing, milling and followed by gravity concentration prior to leaching (CIL), elution and electro-winning of gold. The estimated metallurgical recovery for this plant is 84%. The proposed plant has been

7 expanded from that proposed in the scooping study as a result of the additional metallurgical work undertaken. This has resulted in the addition of a crusher which has increased the estimated capital cost of the plant. Tailings from the process will be delivered to a tailings storage facility adjacent to the plant site. Capital Costs The start-up capital cost for plant and infrastructure for the Project is estimated to be US$25.15 million. The Study has assumed that a contract miner will be utilised and the contractor will be responsible for providing the mining fleet. Two mining contractors have been approached and have provided mining cost estimates. The cost of contract mining has been accounted for in the operating cost estimate and fleet capital is therefore not included in the start-up capital cost. All infrastructure required to support the proposed mining plan has been evaluated and allowed for. This infrastructure includes the following aspects: Bulk power supply and on site power reticulation Bulk water supply and on site water reticulation Buildings (offices, change house, first aid) Workshops Stores yard and stores building Senior employee camp Roads and security Capital costs have been generated for the mining plan and engineering concepts developed. The costs have been factored from public domain information available on similar projects as well as input from potential plant and equipment suppliers. Costs have been factored to account for escalation with time and for potential savings that may be incurred by use of in country resources. The costs are summarised in the table below, costs have been divided between startup capital and sustaining/plant modification capital. Feasibility Capital US$m Initial Scoping Study Capital Item US$m Mining equipment - - Mining pre-strip Plant Tailings Dam

8 Infrastructure Electrical installations (excluding power plant) Total Capital Cost Note: the mining equipment capital assumes a fleet rental and is amortised in the mining operating cost. The power plant is assumed to be leased and the costs have been allowed for in the mining operating cost The Capital Cost has increased from the estimate in the initial scoping due to the need for additional crushing capacity identified in the latest metallurgical testwork. The plant CAPEX has increased from $8.3m to $14.4m. Operating Costs Operating costs have been calculated based on the designed process and mining plan using quoted costs for consumables from suppliers and factorisation of public domain information available on similar projects. The tables below shows a summary of the operating cost for the life of mine. COST PER TONNE PROCESSED (US$/T) Feasibility Initial Scoping Study Mining Processing G&A Total Note : Mining cost excludes capital for pre-strip mining The overall operating cost has increased from the Scoping Study estimate to US$792 / oz. This largely as results of high anticipated processing cost which have been driven higher as a result of higher power usage from the addition of a crushing circuit to the plant. The costs presented in the above table are average life of mine costs and are made up of varying rates for the mining and processing of the different types of material. Mining unit rates applied to the different material types are listed below: Weathered ore and waste (free dig): US$ 2.90/t mined Un-weathered ore and waste (drill and blast): US$ 3.50/t mined

9 It is noted that the average cost of mining per tonne at a strip ratio of 2.43 tonnes of waste per tonne of ore is approximately US$2.95/t mined. This is weighted heavily to the lower end of the range of mining costs. The two factors driving this low cost are: A capital amount of US$1.79 million for pre-strip mining has been excluded from the average mining cost calculation. Approximately 83% of the tonnage mined is free dig which is the lowest cost mining. For the mining of transition material it is assumed that half of the material will require drilling and blasting. Fiscal Terms A financial evaluation of the Project was prepared based on the mining plan and estimated costs generated and using a base case gold price of US$1,250 per ounce. The tax implications for the Project were also considered in this evaluation. It is noted that the Project has special dispensation in respect of tax by means of a Mining Convention signed between Cluff Mining (the previous owners) and the government of the DRC. A summary of the DRC tax requirements and the changes due to the Mining Convention are shown in the table below. Tax DRC Mining Tax Mining Convention Regime Professional Tax 30% on net profit o 0% for first 5 years of production o 15% from Year 6 to Year 15 o 30% from Year 16 Mining Royalty 2.5% on gold turnover o Year 1 to Year 10 1% on gold export o Year 1 to Year 10 1% on gold Pithead value o From Year % on gold export o From Year % on gold Pithead value Importation 2% during exploration o 0% duties 3% during production VAT 16% o No mention assume 16% o Assume 0% on petroleum products Tax on salary 30% personal tax 15% on casual labour 10% on expatriate o Year 1 to Year 5 0% expatriate o Year 6 to Year 15 5% expatriate o From Year 16 10% expatriate salary Withholding tax 10% o No mention assume 10%

10 on dividends and royalties Trading loss (carried forward for 5 years) 1/1000 of turnover Minimum of US$2,500 o No mention assume same In addition to the tax due to the government of the DRC there are certain royalties and fees payable to the previous owners of the Project which are linked to the sale agreement. These royalties are as follows: A royalty of 2.5% of revenue to the previous owners A royalty of US$ 20 per ounce of gold produced for the first 150,000 ounces of production payable to CASA at the base case gold price used. It is noted that this payment will vary with the gold price. For the sensitivity conducted the low is US$10 per ounce and the high is US$40 per ounce A royalty of US$ 10 per ounce of gold produced between 150,000 and 1,000,000 ounces of production payable to CASA. After 1,000,000 ounces of production the royalty falls away Financial Evaluation Results The results of the financial evaluation undertaken shows that Phase 1 of the Project generates revenues of US$138.6 million at a long term gold price of $1,250 per oz. This produces a pretax and royalties NPV, based on a 5% discount, of US$19.1 million for Phase 1 of the Project whilst the Expanded Scoping Study showed a pre-tax NPV for Phase 2 of the Project of approximately $24 million. The maximum funding requirement is US$25.15 million, which has increased from the Scoping Study largely as a result of the higher cost of the Processing Plant. The cash operating cost is US$792/Oz (pre-tax and royalties) which has increased due to higher power consumption in the processing. The Project is focused on gold production at a low cash cost. A sensitivity analysis has been run on the base case model described above. Sensitivities have been run on revenue, operating costs and capital costs by varying these factors up and down and evaluating the effect of the NPV. As is usual in these analyses, the Project is most sensitive to variations in revenue and least sensitive to variations in capital. Environmental and Social

11 Armadale, through the project owner MDDK, adheres to the highest standards of corporate social responsibility and is committed to relations with communities that are based on shared values and participatory processes aimed at empowering stakeholders. MDDK appreciates that maintaining its Social Licence to Operate is a key business function that would ensure the project succeeds and produces benefits for its shareholders. An environmental impact assessment and management plan (EIA and EMP) have been undertaken for the project by MDDK. This work has been undertaken as required by local legislation. The work has assessed environmental and social issues and has included a public consultation programme. The following steps have been undertaken: Social and environmental baselines Determination of impacts Determination of mitigation measures Development of mitigation plans Study Preparation The work reported here forms part of the feasibility study for Phase 1 of the Mpokoto Project and has been prepared by Bara Consulting (Pty) Ltd, with input from: Armadale Capital Plc who provided input in regards to company structure, ownership, licencing and tenure. In addition various historical documents relating to work previously undertaken on the project by Wardrop, Senet and Xiamen Zijin Mining and Metallurgy Technology Co. Ltd. was provided CSA Global who provided input in respect of geology and resources Appropriate Process Technologies (APT) and Peacocke and Simpson (P&S) who provided input in respect of metallurgical test work, metallurgical recoveries and process plant costs Qualified Person Scientific or technical information in this release has been reviewed by Mr. Andrew (Jim) Pooley Pr Eng, BSc Eng (Hons), FSAIMM, Managing Director, of Bara Consulting Pty Ltd. Jim Pooley is a fellow of the Southern African Institute of Mining and Metallurgy and has over 20 years experience, which is relevant to the style of mineralisation under consideration and to the activity which he is undertaking to qualify as a Competent Person, as defined in the 2012 Edition of the Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves (the JORC Code). Mr. Jim Pooley consents to the inclusion in this announcement of the information, in the form and context in which it appears.

12 The information in this release that relates to in-situ Mineral Resources has been reviewed by Dr Andrew Tunks B.Sc. (Hons) Ph.D, a director of Armadale. Dr. Tunks is a member of the Australian Institute of Geoscientists (MAIG) and has over 25 years experience, which is relevant to the style of mineralisation under consideration and to the activity which he is undertaking to qualify as a Competent Person, as defined in the 2012 Edition of the Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves (the JORC Code). Dr Tunks consents to the inclusion in this announcement of the information, in the form and context in which it appears. **ENDS** Enquiries: Company Justin Lewis, Director Charles Zorab, Investor Relations Nomad and broker: finncap Limited Christopher Raggett/Simon Hicks Press relations: St Brides Partners Ltd Susie Geliher/Charlotte Heap Notes Armadale Capital Plc is focussed on investing in and developing a portfolio of investments, targeting the natural resources and/or infrastructure sectors. The Company, led by a team with operational experience and a strong track record in Africa, has a strategy of identifying high growth businesses where it can take an active role in their advancement. Armadale is focused on the development of the development of the Mpokoto Gold project in the Democratic Republic of the Congo, to which it holds the right to an 80% interest, together with a significant area of exploration licenses in the South West of the DRC covering some 800,000 hectares which are prospective for many minerals including, manganese, gold and diamonds. Armadale also holds other investments, including a 30% interest in Mine Restoration Investments Ltd, a South African listed company which has a waste coal processing operation in KwaZulu Natal, as well as a number of other quoted investments. More information can be found on the website