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Audited results for the year to 31 March 2010

30 June 2010

Mwana Africa PLC ("Mwana", the "Group" or the "Company"), is pleased to announce its audited financial results for the year to 31 March 2010.

Key Features

• Freda Rebecca gold mine returned to commercial production in October 2009, in time to benefit from a record high gold price. 8,550 ounces of gold were produced in the six months to 31st March 2010, since when a further 3,447 ounces have been produced.
• Bindura Nickel Corporation ("BNC") has advanced plans for the resumption of operation at its Trojan nickel mine and concentrator, including proposed offtake terms.
• In March 2010 independent engineering consultants SRK Consulting (UK) Ltd were commissioned to prepare a Competent Persons Report on BNC and Freda Rebecca. The report is due imminently and will form the basis for the investment and financing plans for the restart of BNC. BNC and Mwana are now evaluating their strategic and financing options.
• The Company's exploration programme at the Zani Kodo gold exploration prospect in the DRC has delivered further promising results. An updated resource estimate was announced in February 2010. Further drilling has been very promising and a full update will be provided by the end of July. To date, Mwana has defined indicated mineral resources containing 217,277 ounces of gold at 2.95 g/t and inferred resources containing 421,013 ounces of gold at 2.75 g/t.
• The Company's placing of 88.3 million shares in March 2010 raised approximately £8.4m after expenses.
• Despite BNC remaining on care and maintenance throughout the year, and production from Freda Rebecca commencing only in the second half of the year, the group's principal operations generated revenues of £18.8m (2009: £28.3m). At BNC, sales of in-process materials were concluded as part of the company's strategy to realise cash from existing working capital positions while the care and maintenance programme continues. The Freda Rebecca gold mine generated revenue of £6.0m.
• Group loss for the year before tax was £14.4m (2009: £228.1m).
• Net cash outflow during the year from the group was £3.7m (2009: £2.4m). Net cash (including BNC) at 18th June 2010 was £9.1m.

Commenting on the results Kalaa Mpinga, Chief Executive Officer, said:
"This has been an important year for Mwana, with the restart of gold production at Freda Rebecca. We are now focussing on achieving the planned ramp up in production at the mine, and on implementing BNC's plans to resume operations at its Trojan nickel mine and concentrator. Our drilling programme at Zani Kodo is producing some exciting results and we look forward to reporting on these shortly."

• View the Audited results for the year to 31 March 2010 (PDF - 326KB)