Update on MRI Operations

Armadale Capital

12/05/2014 09:00

Update on MRI Operations

      Armadale Capital Plc

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

      12 May 2014

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

      Update of operations at MRI??s coal fines and briquetting operation,       South Africa

      Armadale, the AIM quoted investment company focused on natural resource       projects in Africa, notes the update released by Mine Restoration       Investment Limited (??MRI??), in which the Company has an equity interest.       MRI has continued to expand production over the last few months and aims       to develop profitable operations within the South African mining       industry through its coal fines processing and briquetting operation at       Vaalkrantz Colliery in KwaZulu Natal (??the Plant??). The full text of the       announcement can be found at www.minerestoration.co.za/business-segments/coal-briquetting-project.

      Justin Lewis, Director of Armadale, said, ??With a commercial agreement       in place for the sale of its coal fines, and discussions underway       regarding the sale of coal briquettes, MRI is continuing to make       progress towards generating value from its coal fines processing and       briquetting operation. MRI has been focussed on maximising the       efficiency of its operations, which has positively impacted production,       and they remain committed to identifying the best technology to ensure       the production of high quality coal fines and briquettes. The recently       announced reorganisation of MRIs balance sheet, with the proposed       conversion of debt to equity, should also put MRI on a sounder financial       footing.?

      **ENDS**

      Enquiries:

      Company

      Justin Lewis, Director +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 businesses where it can take an active role in       their advancement.

      Armadale is focused on the development of the development of the Mpokoto       Gold project in the Democratic Republic of the Congo, to which it holds       the right to an 80% interest. Armadale also currently holds       approximately a 37% interest in Mine Restoration Investments Ltd, a       South African listed company, which aims to develop profitable       operations in South Africa through the briquetting and sale of coal       fines in KwaZulu Natal and an acid mine drainage project in the       Witwatersrand basins, as well as a number of other quoted investments.

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