News Chromex Mining plc ("Chromex") announced today the acquisition of Waylox Mining (Private) Limited (Waylox) for a total consideration of US$1.15m, comprising US$300,000 cash, with the balance of US$815,000 in 3,465,247 new ordinary shares in Chromex at a price of 15.83p per share.
Waylox is a chrome mining company operating in Zimbabwe and a wholly owned subsidiary of TransAfrika Resources Limited (a private company with assets in Mali, DRC, Mauritania, Senegal and Rwanda).

Waylox has been operating in Zimbabwe since Aug08 after acquiring the 683Ha Trixie and Prince of Wales claims located in the prospective Darwendale area. The Darwendale area is located on the Great Dyke of Zimbabwe which is host to significant chrome resources (Refer to Exhibits 1 & 2).
Implications The acquisition reflects Chromexs aim and strategy of expanding its portfolio of chrome production assets across southern Africa.

The alluvial chrome assets of Waylox are expected to provide Chromex with near-term production of chromite ore with limited capital risk and a rapid payback period. Historic exploration work to date has focused on a systematic grid pattern of pitting and trenching across the chrome claims.

Disseminated chromite is visible to the eye and is believed to be sufficiently concentrated, within the top soils and subsoils, to extract economically using spiral technologies (small scale operations are ongoing).

The Trixie and Prince of Wales claims contain economic grades of alluvial chrome resources and the current inferred mineral resource estimate on the 388Ha Trixie project is ~1.9Mt at an average modelled grade of 13.8% Cr2O3.

The estimate was calculated by TransAfrika on the basis of the results of an exploration programme comprising 245 exploration pits across the five Trixie claims in 2009.

The 216Ha Prince of Wales claims require further exploration which Chromex plan to conduct over the next six months.

To date, results from the bulk samples submitted for test work indicate a favourable particle size range which has positive implications for optimising chromite recovery (Refer to Exhibit 3).

Metallurgical test work show an end product of 49% Cr2O3 after treating the ore through a closed spiral circuit, followed by LIMS (low intensity magnetic separation).

A revised Resource Statement and test work results are expected shortly and Chromex has initiated a feasibility study on the Trixie claims which is expected to be completed in 3Q10.

Similar chrome operations on the Great Dyke are producing chrome concentrates with Cr2O3 grades ranging from 47% to 50% and Cr:Fe ratios in excess of 1.9:1. The Waylox transaction adds to the Companys presence within Zimbabwe, following the agreement by Chromex on the 10th Nov09 to acquire 49% of Falvect Mining Ltd ("Falvect"), a private Zimbabwean company whereby Chromex will have the exclusive right to co-develop all Falvect chrome concessions in the Shurugwi region and tribute agreements in the Ngezi area.

In addition, Chromex will market 100% of the chrome products produced from these concessions.

Once the final agreements have been concluded, a technical review of the combined mineralisation at Shurugwi and Ngezi will be carried out.
Chrome Outlook The chrome market continues to be led by Chinas demand for the metal and it has been evident that chrome imports by China increased 45% (mom) in March - chrome ore and concentrate imports increased 78% yoy.

South Africa remains the top supplier of chrome to China with 644.6kt exported in 1Q10. Whilst both the chrome and ferrochrome market are expected to remain tight in 2010, driven by strong demand from China due to ongoing stainless steel demand, we expect the secular trend for increased import demand of chrome rather than ferrochrome to become increasingly obvious. Imports of high-carbon ferrochrome from fell 37.2kt Feb10 to 140.9kt in Mar10, down 9% yoy.
Key Events / Newsflow Chromex has initiated a feasibility study on the Trixie claims which is expected to be completed in 3Q10 and work to increase the resource is ongoing.

The Company remains comfortably funded for its ongoing activities in both South Africa and Zimbabwe. In South Africa, Chromex restarted mining operations at its Stellite mine in South Africa in Jan10 after achieving full plant design capacity at the beneficiation plant in Nov09.

The plant can now produce a range of products including chemical grade and metallurgical grade sands, but the initial primary beneficiated product will be a 44% Cr2O3 concentrate which is expected to command a premium price in the market and provide the Company significantly more leverage to an improvement in market demand and pricing.

A market update is expected shortly. Chromex is currently finalising the design and costing of Phase 2 of the current beneficiation plant which is planned to include a Dense Media circuit ("DMS") with the ability to double current beneficiation capacity.

Importantly, in addition to the capacity increase, Chromex will be in a position to market a sized lumpy chrome product in addition to the chemical and metallurgical grade concentrates that it currently produces.
Key catalysts for Chromex: * Revised Resource Statement and initial test work results at the Trixie claims (Zimbabwe); * Results from the Feasibility Study on the Trixie claims in 3Q10; * Results from the technical review of the combined mineralisation at Shurugwi and Ngezi (Zimbabwe); * Test work results from the Stellite chrome tailings for PGEs and scoping study results (South Africa); * Increased value-add from beneficiation of internal and 3rd party ore at Stellite; and * The DMS plant is expected to be commissioned at Stellite in 3Q10.
Please see attached Research Note for related Exhibits.
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