Placing to raise A?525,000

Armadale Capital

12/03/2014 07:00

Placing to raise 525,000

      Armadale Capital Plc

      12 March 2014

      Armadale Capital Plc (??Armadale?? or ??the Company??)

      Placing to raise 525,000 for continued development at Mpokoto Gold       Project

      Armadale, the AIM quoted investment company focused on natural resource       projects in Africa, is pleased to announce a placing ("Placing") of       375,000,000 new ordinary shares of 0.01 pence each in the capital of the       Company ("Placing Shares") at a price of 0.14 pence per share to raise       525,000 (485,000 after expenses), with institutional and other       investors.

      The proceeds of the Placing will be used for the continued development       of the Mpokoto Gold Project in the Katanga Province of the Democratic       Republic of the Congo (??Mpokoto?? or ??the Project??) as well as further       potential investment opportunities.

      Mpokoto has a current Total Mineral Resource of 510,000oz gold (??Au??)       from 11.2 million tonnes (??Mt??) @ 1.42g/t Au at a cut-off grade of       0.5g/t and an Exploration Target of 10Mt-15Mt at 1.2g/t-1.5g/t Au. The       Company anticipates shortly publishing the results of a Scoping Study       for Mpokoto, together with related metallurgical and environmental       reports, which are expected before 31 March, in conjunction with       submission of the Mining Licence application. The Scoping Study will       define the next steps to be taken including a further drilling programme       and additional metallurgical studies.

      Peter Marks, Chairman of Armadale, said, ??Armadale remains focused on       the rapid development of the highly prospective Mpokoto Gold Project       which has demonstrated its potential to become a low cost production       asset. This funding will be used to continue the development of Mpokoto       as well as look at other potential investment opportunities. With a       strengthened cash position we look forward to commencing a drill       programme to further prove up the current resource and to receiving the       results of the Scoping Study this month, which will set out a clear       pathway for the future development of Mpokoto.?

      The Placing is subject, inter alia, to admission of the Placing Shares       to trading on AIM, which is expected to occur at 8.00 a.m. on 2 April       2014. Application has been made to the London Stock Exchange for all of       the Placing Shares to be admitted to trading on AIM. The Placing Shares       will, when issued, rank pari passu in all respects with the       Company's existing ordinary shares.

      Following admission of the Placing Shares, the Company will have       3,656,518,311 ordinary shares in issue. The Company has no shares in       treasury, therefore the figure of 3,656,518,311 should be used by       shareholders as the denominator for the calculations by which they will       determine if they are required to notify their interest in, or a change       of their interest in, the share capital of the Company under the FCA's       Disclosure and Transparency Rules.

      **ENDS**

      Enquiries:

      Company

      Peter Marks, Chairman +44 207 233 1462

      Charles Zorab, Investor Relations

      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 in South African through the       briquetting and sale of coal fine in KwaZulu Natal and acid mine       drainage project in the Witwatersrand basins. It has recently taken full       ownership of a company which holds the right to an 80% stake in the       Mpokoto Gold project in the Democratic Republic of the Congo. This is a       gold deposit with 510,000 oz of JORC defined gold resource.

      More information can be found on the website www.armadalecapitalplc.com.