Armadale Capital Plc / Index: AIM / Epic: ACP / Sector: Investment Company 21 August 2013 Armadale Capital Plc (Armadale or the Company) Investment in Mpokoto Gold Project, Democratic Republic of Congo
Armadale, the AIM quoted investment company focussed on natural resources projects, is pleased to announce an initial investment and option to increase its interest in the highly prospective, low-cost, Mpokoto Gold Project in the Katanga Province in the Democratic Republic of Congo (Mpokoto or the Project), in line with Armadales strategy to build a portfolio of revenue generating African resource projects.
Highlights � Strategic investment in advanced African gold exploration project, offering near term value upside o Initial US$150,000 investment in cash for 15% equity interest in Netcom Global Inc., (Netcom), which has the right to acquire an 80% interest in Mpokoto o Further subscription of up to US$105,000 in cash in three tranches to take equity interest to approximately c.23% o Option to acquire existing equity, to take total equity interest in Netcom to c.90% for a consideration of �700,000 via the issue of 700 million ordinary shares in the capital of Armadale (Ordinary Shares) at a price of 0.1p per Ordinary Share, with a further issue of up to 220 million Ordinary Shares upon the achievement by Netcom of certain milestones � Highly prospective Mpokoto Gold Project in the Katanga Province in the Democratic Republic of Congo o Indicated and Inferred resource estimated at 380,000 oz Au from 7.2 million tonnes @ 1.65g/t gold (Au) at a cut-off grade of 0.5 g/t Au (75% Indicated category) o Exploration Target potential* of 20-24 million tonnes @ 1.5-1.8 g/t Au o Defined development programme to unlock licence value in the near term in place - scoping study targeted for the end of 2013 o Investment in Netcom will allow progression of the Mining Exploitation Licence application, anticipated to be completed by end of 2013 o Project is anticipated to be a relatively low-cost heap leach operation - ore is metallurgically simple with operating costs estimated at US$700-900 per ounce o Balance of 20% of Project owned by a Congolese Government company � Transaction complements Armadales current portfolio of assets, including Mine Restoration Investments Ltds coal briquetting operation, which is targeted to deliver its first revenue in September 2013
*Tetra Tech Consultancy estimate.

The quantity and grade of the Exploration Target is conceptual and there has been insufficient exploration to define a Mineral Resource.
Peter Marks Chairman of Armadale said, "I am pleased to be able to announce this initial investment in the Mpokoto Gold Project in the Democratic Republic of Congo, with an option to significantly increase our exposure.

With an Indicated and Inferred JORC resource of 7.2 million tonnes @ 1.65g/t Au (approximately 380,000 ounces Au), a resource that appears relatively low cost to develop, and a defined strategy in place to realise the value potential in the near term, the Mpokoto Gold Project represents a compelling investment opportunity. "At this stage, gold production is targeted to commence at Mpokoto in 2014 and operations at our other investment, Mine Restoration Investments Ltd, remain on track to achieve production at its coal briquetting plant in South Africa in September 2013.

Consequently, I am confident that our diverse investment portfolio will start to generate revenues for the Company in the near term.

With a multi-asset portfolio in place providing exposure to the natural resources and infrastructure sectors, in line with our objectives, Armadale has established itself as a growth-oriented company and I look forward to updating shareholders on these developments in due course." Further Information Netcom is a gold exploration company, which offers near term value uplift through its right to acquire an 80% interest in the highly prospective, low-cost, Mpokoto Gold Project in the Katanga Province in the Democratic Republic of Congo, presently owned by Casa Mining Ltd (Casa), a private company.

Netcom can acquire its 80% interest in the Project through funding the required work to obtain a Mining Exploitation Licence.

Armadale has made an initial US$150,000 investment to take a 15% equity interest in Netcom.

In addition to this, the Company will make a further subscription of up to US$105,000 in three tranches at the same valuation, to take its interest in Netcom to c.23%, and has the first right to provide any further funding.
Armadale has entered into an option agreement with existing shareholders of Netcom to increase its aggregate interest to c.90% of Netcom.

The consideration payable is an issue of 700 million Ordinary Shares at a price of 0.01p per Ordinary Share together with the issue of a further: � 60 million Ordinary Shares upon completion of a scoping study, targeted for the end of 2013 � 60 million Ordinary Shares upon the delineation of a JORC reserve of at least 120,000 ounces of gold � 100 million Ordinary Shares upon the production of the first 5,000 ounces of gold from the Project
The option is exercisable up to 16 February 2014 at Armadales discretion.

In addition, the shareholders of Netcom have the right to sell their shares to Armadale, subject to the satisfaction of certain conditions, including: � Due diligence being completed to Armadales sole satisfaction � Completion of a positive scoping study � Netcom demonstrating that the Project is fully funded to the satisfaction of Armadale � Armadale obtaining any regulatory approval that it may require
Mpokoto Gold Project
Mpokoto is located in the western part of the Katanga Province approximately 250 km west of Kolwezi in the Democratic Republic of Congo, and approximately 25km from the Zambian border.

The area is highly prospective, with local operators including Ivanplats Limited and GlencoreXstrata Plc.
The Project is located close to a national highway and the railway from the Atlantic port of Lobito in Angola to the Congolese border at Luao/Dilolo, which has recently been reconstructed by a Chinese consortium.

Reconstruction of the line between the Angolan border and Kolwezi is planned for the next two years.
Since 1998 approximately US$20 million was spent on gold exploration at the Project.

Consequently, a good understanding exists of both the regional and local geological setting, due in part to this long exploration history and to the historic mining of manganese in the area.

A gold anomaly was discovered over the deposit area in 2005 following geophysical data interpretation, systematic geochemical sampling and reconnaissance drilling conducted by previous operators.
In 2012, mining consultancy TetraTech completed a resource estimation in line with JORC and NI 43-101 guidelines.

At a cut off of 0.5 g/t Au the deposit contains 7.2 million tonnes at 1.6g/t Au for approximately 380,000 ounces of gold (Table 1).

Of this, approximately 5.3 million tonnes at 1.6g/t Au are classified in the Indicated category for 290,000 ounces.
Table 1: Mineral Resource estimate at 0.5g/t Au cut-off grade.
Oxide Transitional Sulphide
Category Tonnes (Kt) Au g/t Oz (000) Tonnes (Kt) Au g/t Oz (000) Tonnes (Kt) Au g/t Oz (000) TOTAL (Kt) Oz (000) Indicated 1,125 1.66 60 830 1.58 42 3,405 1.79 196 5,360 298 Inferred 382 1.23 15 189 1.28 8 1,250 1.55 62 1,821 85
7,181 383
In addition to the defined resources, Tetra-Tech estimates that the Mpokoto deposit has potential for an Exploration Target of between 20 and 24 million tonnes at 1.5g/t - 1.8g/t Au.

The potential for additional resources and reserves is therefore good.

Should this target mineralisation be converted to Inferred and Indicated resources and then to reserves, it is likely that the project throughput rate can be substantially upgraded.

Delineation drilling programmes are planned to test the target potential.
Next Steps Subject to funding an infill drill programme will be undertaken as well as a number of further studies completing an overall scoping study assessing the economics of the Project.

This scoping study will in turn form the basis of a pre-feasibility study.
Study work will include re-modelling the ore bodies to include a 20 -hole diamond drill programme completed after the Tetra Tech report was finalised.

Further metallurgical test work will be undertaken to show that the sulphide ore is amenable to heap leaching.

In addition, studies will be conducted to assess whether the run-of-mine ore can be upgraded by the addition of a screening step before agglomeration occurs.

If successful, this would dramatically reduce the capital and operating costs suggested by previous test work.
Finally, a mining study will be completed to focus on the oxide ores and whether project economics can be improved through bulk mining with a reduced stripping ratio.

Recoveries from the oxide ores are high at over 85% based on test work completed.
It is anticipated these studies will take approximately 90 days to complete.
The planned infill drill programme will follow up on high grade intersections from previous programmes as well as testing the strike length and depth of the resource.

The programmes focus will be to upgrade current JORC Inferred classification to Indicated within the main zone allowing for them to be included for assessment once a reserve estimation is undertaken.
Ownership The Mpokoto project was established by Kisenge Limited owned by Cluff Mining Limited in 1998.

Goldfields of South Africa acquired Kisenge Limited from Cluff Mining in 2003 and sold to Casa, in 2007.

Netcom acquired an indirect interest in the project in February 2013 through Casa and now holds a right to acquire 80% of the Project from Casa through funding the required work to obtain a Mining Exploitation Licence.

The remaining balance (20%) is owned by EMK-Mn (Lentreprise Miniere de Kisenge Manganese - a Congolese Government owned company).
The licence areas, which include the Mpokoto Gold deposit, cover 1212,2km2 and are registered under PR12879, PR12880, PR12896, PR12897, PR12899 in the Cadastre Minier of the DRC under the name of Mines dOr de Kisenge sarl.
Netcom and Casa are currently working towards achieving a conversion of the current Exploration Licence status to Mining and Exploitation Licence status, which is anticipated to be approved by the end of 2013.
Geology The host rocks of the mineralisation at Mpokoto are of Palaeoproterozoic age (2.5 to 1.6 billion years) and comprise a plutonic basement series overlain by broadly coeval volcanic and sedimentary rocks.

The volcano-sedimentary succession is referred to as the Lukoshi Formation or Complex and has been metamorphosed to amphibolite facies.
The Mpokoto mineralised zone is hosted within a sheared interlayered conglomeratic sandstone and occurs as a WNW - ESE striking and moderately SW-dipping sheared interval between clastic meta-sedimentary rocks in the hanging wall and meta-igneous rocks in the footwall.

Mineralisation is located within conglomeratic arenite horizons in which quartzite and quartz clasts of pebble size occur in intermittent bands.

The clasts in which mineralisation occurs are significantly flattened and the sericitic matrix, together with the flattened grains of quartz create a well-defined foliation.
The mineralisation typically takes the form of disseminated lenses of pyrrhotite with variable amounts of pyrite.

Arsenopyrite is frequently present with the pyrite-pyrrhotite association and is locally the most abundant sulphide phase.

All sulphides are typically fine-grained, having dimensions in the range 0.1- 1.0 mm.

The mineralisation is open at depth and along strike.
Metallurgy Netcom has carried out an agglomerated heap leach test on the oxide and transition proportion of the ores.

Recovery from the oxide exceeds 80% and recovery from the transition ores exceeds 60%.

Initial mineralogical studies indicate that heap leaching of fresh ores may be possible.
Studies completed thus far are proposing the project could mine and treat 750,000 tonnes per annum at a head grade of approximately 1.6 g/t.

An initial strip ratio for the first four years of production is suggested of approximately 2:1 with lime and cyanide consumption being modest.
Capital and Operating Costs Tetra-Tech estimates that the capital cost requirements for a 500,000 tonnes per annum operation will be in the order of $12-14 million.

Based on the studies carried out to date, operating costs per ounce for the project should be in the range of US$700-900 per ounce.

Importantly, heap leaching will result in low capital costs per ounce recovered, aiding the projects commercial viability.
Management Mr Alain Van Landuyt, a qualified chemical engineer and engineering geologist and resident in Lubumbashi, DRC, will work with Netcom to develop the project.

Alain was involved in the discovery of the deposit and has been associated with it through its development.

Consequently, he is well suited to advance the projects development.

He is very familiar with local government structures and the Congolese Mines Department.
Competent Person Statement: Scientific or technical information in this release has been prepared by Dr Simon Dorling of CSA Global Pty Ltd, Netcoms geological consultants.

Dr Simon Dorling is a member of the Australasian Institute of Geoscientists (MAIG) and has sufficient experience which is relevant to the style of mineralisation under consideration and to the activity which they are undertaking to qualify as a Competent Person as defined in the 2004 Edition of the "Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves" (the JORC Code).

Dr Simon Dorling consents to the inclusion in this report of the Information, in the form and context in which it appears.
A copy of the announcement, which includes a map and drawings relating to Mpokotos location and geology can be found on the Companys website at www.armadalecapitalplc.com.
**ENDS**
Enquiries: Company Peter Marks, Chairman +44 207 233 1462 Charles Zorab Nomad and broker: finnCap Limited Stuart Andrews/ Christopher Raggett +44 207 220 0500 Press relations: St Brides Media & Finance Ltd. Susie Geliher/Charlotte Heap +44 207 236 1177 Notes Armadale Capital Plc is focussed on investing in and developing a portfolio of investments, targeting the natural resources and/or infrastructure sectors.

The Company, led by a team with operational experience and a strong track record in Africa, has a strategy of identifying high growth potential businesses where it can take an active role in their advancement. Armadale currently holds approximately a 40% interest in Mine Restoration Investments Ltd, a South African listed company, which aims to develop profitable operations within the South African mining industry through its coal briquetting operation in KwaZulu Natal and acid mine drainage project in the Witwatersrand basins. More information can be found on the website www.armadalecapitalplc.com
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