Armadale Capital Plc / Index: AIM / Epic: ACP / Sector: Investment Company

21 June 2017

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

Exploration Update: Trenching Intercepts Wide Zones of High Grade Graphite

Armadale, the AIM quoted investment company focused on natural resource projects in Africa, is pleased to announce that a trenching programme at its Mahenge Liandu Graphite Project in Tanzania (‘the Project’ or ‘Mahenge Liandu’) has intersected high grade, coarse flake mineralisation over a width of 73m.

Overview

• Trenching programme at Mahenge Liandu has intercepted wide zones of high grade graphite from surface
• Initial trenching results further underpin the prospectivity of the Project for coarse flake graphite mineralisation
• Three additional trenches currently being excavated to support structural modelling of the deposit and prioritise higher grade areas of mineralisation for drilling
• Bulk sampling completed with samples now in transit to Dar es Salaam for transportation to Australia for processing into concentrate
• Pad construction advancing to allow drilling to commence in the near future – drill rig now on site
• To view pictures taken from the Mahenge Liandu project showing the trenching and pad construction see Armadale’s website at www.armadalecapitalplc.com

Nick Johansen, Director of Armadale said, “Our trenching programme has highlighted the high grade coarse flake mineralisation at Mahenge Liandu and importantly has demonstrated a mineralised zone of 73m in width. This, combined with the consistently encouraging test work returned from the Project which has shown that purity of up to 99.99% graphitic carbon can be achieved from graphite concentrates, reinforces our view that Mahenge Liandu has the potential to be a strategically important high grade graphite mining operation.

“Our immediate focus now is to continue the trenching programme, which will support the structural modelling of the deposit, and initiate our 2017 drilling campaign. The drill programme, which has been subject to delays due to the unusually late wet season and resultant extensive road repairs required, is being undertaken with the objective of increasing both the quantum and confidence category of our maiden resource of 40.9Mt @ 9.41% TGC. This resource was declared in December 2016 and will in turn allow a scoping study to commence. We are anticipating a strong pipeline of news flow over the coming weeks and months as we implement our exploration and development plans and prove up Mahenge Liandu as a significant new graphite discovery.”

Table 1. Initial trenching results at Mahenge Liandu

Competent Person statement

The information in this announcement that relates to exploration results is based on information compiled by Mr Matt Bull, a competent person, who is a Member of the Australian Institute of Geoscientists. Mr Bull has sufficient experience which is relevant to the style of mineralisation and type of deposit 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”. Mr Bull consents to the inclusion in the report of the matters based on his information in the form and context in which it appears.

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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