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

17 August 2017

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

1.2km Mineralised Strike Identified at Mahenge Liandu Graphite Project

Armadale, the AIM quoted investment company focused on natural resource projects in Africa, is pleased to announce the completion of the first phase of Reverse Circulation (‘RC’) drilling at its Mahenge Liandu Graphite Project in Tanzania, with wide zones of near surface mineralisation intersected over a strike length of 1,200m. Test work on the bulk sample is now well underway with initial metallurgical test work results showing good recoveries and the production of final graphite concentrates is expected in the coming weeks.

Overview

• First phase of RC drilling completed targeting zones of high grade near surface mineralisation with potential for priority mining in the Mahenge Liandu mine plan
• 24 of the 25 holes returned intersected at or near surface mineralisation confirming a consistent area of near surface mineralisation over a strike length of 1,200m
• Preliminary on-site review of the drilling gives management confidence that an increase in the Resource size and category will be achieved over the maiden JORC resource estimate of 40.9MT @ 9.41% Total Graphite Carbon (‘TGC’)
• A second drill programme aimed at increasing the Resource category over a strike length of 2,400m is planned to commence once results of the first phase are returned
• Geological mapping to identify potential extensions has discovered additional areas of graphite mineralisation previously untested
• Bulk sample underway, with initial results showing a 21.3% TGC head grade and confirming high levels of recovery of above 98% are achievable at the rougher stage
• Multi element analysis on the bulk sample show low levels of potentially deleterious elements
• Concentrates from the bulk sample are expected in the coming weeks and will be reported in due course

Nick Johansen, Director of Armadale said, “The potential for Mahenge Liandu to host a significant, commercially attractive graphite mining operation continues to be fuelled by these consistently encouraging drill results. Following the completion of our first phase of exploration drilling in the 2017 season, we are delighted to report a consistent area of near surface mineralisation over a strike length of 1,200m, underpinning the scale of this emerging graphite project. With a second phase of drilling being planned, plus geological mapping evaluating possible extensions to the deposit on the wider licence area, I am confident that our maiden JORC Resource estimate of 40.9Mt at 9.41% TGC, which is already one of the largest in Tanzania, has significant room for expansion.”

Drilling Programme Update

The first phase of drilling on a 200m by 80m pattern is now complete over a strike length of 1,200m with a total of 25 holes now completed. The results continue to indicate wide zones of near surface mineralisation over the full strike length, which is expected to cover the area of the initial pit. Several holes had mineralisation much wider than expected up to 105 from surface. Within this areas of high-grade have been logged. Assay from the drilling programme will be released when the results come to hand.

Table 1 Graphite intercepts from 2017 drilling programme – results in italics were previously reported August 2017 (see RNS dated 1 August 2017 for further information)

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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