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

29 September 2017

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

High Value Graphite Concentrate with +48% in Super Jumbo, Jumbo and Large Flake Size Produced

Armadale, the AIM quoted investment company focused on natural resource projects in Africa, is pleased to announce that further test work on the bulk sample from the Mahenge Liandu Graphite Project in Tanzania (‘Mahenge Liandu’ or ‘the Project’) has produced improved flake size distribution while maintaining very high levels of purity, as tested via a simple flotation process.

Highlights:

• Results demonstrate the Project’s ability to produce high quality, graphite concentrates, which would be suitable for a number of high value commercial applications
• Potential end users that requires high levels of purity include the battery anode market and larger flake size distribution favours the expandable graphite markets
• Bulk sample was processed on a conventional crushing and flotation circuit and indicates that concentrates of excellent quality can be produced from Mahenge Liandu
• Reduced grind time has improved the flake size while also achieving an excellent concentrate purity of up to 98.5% TGC from individual size fractions, with an overall average of 97.8% purity
• Super Jumbo flake size of 500µm and above was improved from 1.3% to 3.6% and Jumbo flake size above 300µm from 15.3% to 20.9%
• Size distributions of 500µm, 300µm, 180µm, 106µm and 75µm produced purity of 97.6% or above
• Assay results from recently completed Reverse Circulation (‘RC’) drilling programme are expected in the coming weeks
• Work continues to enhance the current high-grade JORC compliant inferred mineral resource estimate of 40.9Mt @ 9.41% Total Graphitic Content (‘TGC’), of which at least 32Mt has an average grade of 10.47% TGC – a further update is expected in Q4 2017

Nick Johansen, Director of Armadale said, “These further results continue to underpin our belief that we have a sizeable, commercial and strategically important asset in Mahenge Liandu. Results from the RC drilling programme and our upcoming updated resource report should provide investors with further confidence that Mahenge Liandu is shaping up to be a major new graphite development project. With this in mind, we look forward to updating the market on our ongoing drill programme and development activities in the coming weeks and months.”

Further Information

Test work was conducted on a representative sample from a 300kg bulk sample of graphite mineralisation. 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. A large proportion of almost 80% of the concentrate is also in the higher value larger flake size fractions over 106µ and improvement from 75% from earlier test work. 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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