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

7 September 2017

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

Exceptional Graphite Concentrate of up to 99.1% Graphitic Carbon Produced from Mahenge Liandu

Armadale, the AIM quoted investment company focused on natural resource projects in Africa, is pleased to announce that test work on a 300kg bulk sample of graphite mineralisation taken from the Mahenge Liandu Project (‘Mahenge Liandu’ of the ‘Project’) in Tanzania has produced graphite concentrates with exceptional purity of up to 99.1% total graphitic carbon (‘TGC’) using a simple crushing and flotation circuit.

Highlights:

• Graphite concentrate purity of up to 99.1% TGC was produced from individual size fractions with an overall average of 98.8% TGC purity
• Excellent flake size distributions were maintained through the process with ~75% in the higher value sizes above 106µ
• Bulk sample was processed using a conventional crushing and flotation circuit, indicating that concentrates of excellent quality can be produced with relatively low processing cost
• Results underpin the Project’s potential to produce high quality, commercial graphite concentrates, which should be suitable for a number of applications, including the rapidly growing battery market
• Assay results from recent Reverse Circulation drilling programme are expected to be returned in the coming weeks – initial results confirm wide zones of near surface mineralisation over a strike length of 1.2km
• Second phase drill programme to commence in coming months to increase quantum and confidence category of current high-grade JORC compliant inferred mineral resource estimate of 40.9Mt @ 9.41% TGC, of which at least 32Mt has an average grade of 10.47% TGC

Nick Johansen, Director of Armadale said, “These results are a significant achievement as they show that extremely high-quality graphite concentrate can be produced from Mahenge Liandu using relatively simple and ultimately low cost processing methods. Accordingly, this has the potential to have very positive implications for the capex and opex requirements of our Project. We now look forward to further proving up the Project’s resource potential through our two-phase drill programme, which is well advanced with results due from the first stage in the coming weeks.”

Further Information

Test work was conducted in Perth, Australia, on a representative sample from a 300kg bulk sample of graphite mineralisation taken from Mahenge Liandu. The results show excellent purity and flake size distribution can be produced using a conventional graphite processing circuit. These results, when combined with previously announced expandability and upgraded purity results up to 99.99% TGC, show the Project has the potential to produce a range of high-quality downstream products for a range of rapidly growing markets. Importantly, a large proportion, almost 75%, of the concentrate is also in the higher value larger flake size fractions over 106µ. The results for all size fractions are shown in Table 1 below for each size fraction.

Table 1. Results of Bulk sample graphite concentrate flake distribution and purity.

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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