Armadale Capital Plc (‘Armadale’ or ‘the Company’)

2017 Mahenge Liandu Exploration Programme Commenced:

Targeting Resource Increase and Upgrade

Armadale, the AIM quoted investment company focused on natural resource projects in Africa, is pleased to announce that the exploration programme for the 2017 season at the Company’s 100% owned Mahenge Liandu Graphite Project in Tanzania (‘Mahenge Liandu’ or the ‘Project’) has now commenced. The programme is designed to upgrade and expand the existing JORC compliant inferred mineral resource estimate of 40.9Mt @ 9.41% Total Graphitic Content (‘TGC’), of which at least 32Mt of this has an average grade of 10.47% TGC.

Highlights:

• 2017 exploration programme at Mahenge Liandu will include 2,500m of Reverse Circulation (‘RC’) drilling designed to expand the size of the resource as well as to enhance the resource category to Indicated – resource update expected Q3 2017
• Diamond drilling will be carried out to obtain representative core samples for additional metallurgical test work
• Sample graphite concentrates will be produced and supplied to potential offtake partners for testing
• Results of laboratory metallurgical test work aimed at increasing the graphite purity to 99.95% are expected in the coming weeks
• The Company is fully funded to complete the 2017 drilling programme

Nick Johansen, Director of Armadale said, “Having defined a maiden mineral resource estimate of 40.9Mt @ 9.41%, produced a graphite concentrate at 99.1% TGC via environmentally friendly, low cost extraction processes and crucially identified significant expansion potential to build upon both of these results, the Mahenge Liandu Project has continually exceeded the Board’s expectations. We look forward to continuing that trend and building upon the positive results with the commencement of exploration activities in 2017. The aim of the current drilling programme is to upgrade both the size and confidence level of the deposit, with a resource update targeted in Q3 2017. Once this has been established the Board will be in a position to assess plans for a pre-feasibility study (‘PFS’) on the Project alongside undertaking a detailed metallurgical test work programme to facilitate discussions with potential off take partners.”

The information communicated in this announcement contains inside information for the purposes of Article 7 of the Market Abuse Regulation (EU) No. 596/2014.

**ENDS**

Notes

Armadale Capital Plc is focused on investing in and developing a portfolio of investments, targeting the natural resources and/or infrastructure sectors in Africa. 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.

The Company owns the Mahenge Liandu graphite project in south-east Tanzania, which is now its main focus. The Project is located in a highly prospective region with a high-grade JORC compliant inferred mineral resource estimate of 40.9Mt @ 9.41% TGC. At least 32Mt of this resource has an average grade of 10.47% TGC, one of the largest high-grade resources in Tanzania, and work to date has demonstrated Mahenge Liandu’s potential as a commercially viable deposit with significant tonnage, high-grade coarse flake and near surface mineralisation (implying a low strip ratio) contained within one contiguous ore body.

Other assets Armadale has an interest in include the Mpokoto Gold project in the Democratic Republic of Congo and a portfolio of quoted investments.

More information can be found on the website www.armadalecapitalplc.com.

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