Commences Gold Production at Kilimapesa in Kenya

Goldplat plc, the AIM quoted gold producer, is pleased to announce that its flagship Kilimapesa gold mining project in Kenya is now in production. The mine, which is a 50-50 Joint Venture with International Gold Exploration AB, is expected to make an operational profit from Q2 2009. This will contribute to the existing revenue being generated from the Company's gold recovery operations in South Africa and Ghana .

Overview:

  • US$500,000 plant refurbishment complete and operational - first gold loaded carbon ready to export to a refinery in South Africa
  • Stockpiling of artisanal tailings continues with momentum - tailings secured range in value between 6g/t and 15 g/t.
  • Underground development continues to extend the strike of channel sampling-determined high gold grade quartz vein - highlights include 6.33 g/t gold ('Au') over a strike of 129m with a stope width of 123 cm
  • Diamond Drilling ('DD') programme confirms veins at depth below current underground workings
  • Two sites being targeted are currently yielding grades of up to 100 g/t
  • Environmental Impact Assessment ('EIA') submitted to the Kenyan authorities for granting of Mining Licence
  • Mine expected to make operational profit from Q2 2009

Goldplat CEO Demetri Manolis said, "Commencing production at our flagship Kilimapesa gold mining project is a further step forward in building Goldplat into a highly profitable gold mining operation focussed in Africa . The high grade gold vein system is being rapidly developed with exploration targeting both surface and underground anomalies. We are aiming to publish a JORC compliant resource later this year which will further enhance the economic potential of the project."

"I believe that Goldplat is now in a strong position to continue to build its portfolio of producing assets across Africa and realise its true potential."

Production and Newly Refurbished Recovery Plant

The US$500,000 refurbishment programme for the recovery plant has been completed and the plant is now producing, with the first loaded carbon ready to export to a refinery in South Africa . The refurbishment programme included the installation of a new mill motor, a new crushing circuit, the addition of a gravity circuit and a thickener, an upgrade to the leach section, a new pumping reticulation circuit, replacement of the electrical recirculation circuit, a complete refurbishment of the assay laboratory, and a general upgrading of the safety aspects of the plant. These improvements will enhance gold recovery rates and in turn increase operational economies of scale. In addition, the tailings facility has been completed to increase its longevity and now has an operational life in excess of five years. The plant is initially being powered by diesel generators, but the delivery of grid power to the mine site is expected to take place in the near future, which will reduce operating costs..

Mining

The underground development programme continues to extend the strike of the south vein. To date, sampling indicates an average value of 6.33 g/t gold ('Au') over a strike of 129m with a stope width of 123cm, including a stretch of 69m grading at 8.08 g/t Au over a mineable width of 135cm. Development, aimed at exposing two other projected parallel veins to the north, continues.

In addition, the Company's mine training initiative has commenced at the site, utilising highly experienced South African mining skills to train the local labour. The programme is proving to be very successful, with immediate increases in raise development being evident.

Diamond Drilling

The DD programme, confirming the down dip extension of the current quartz vein, has seen 4 holes completed to date and the Company is awaiting assay results from these which will be announced once available. Whilst hard ground conditions have hampered progress, a fifth hole is being drilled during January. The initial logging of the holes shows the presence of the quartz vein at depth below the current underground workings, which implies the ore body may continue at depth. The information collated from this programme will be used to evaluate the possibility of developing another adit below the current adit, in order to create additional resources.

The Company is now in a position to exploit other sites of shallow, potentially high grade gold bearing veins, which have been located as part of the cooperation agreement with the local artisanal miners. Kilimapesa Gold is now in the process of purchasing an excavator to assist this initiative. Two sites in particular are currently yielding grades of up to 100 g/t and are targeted to be drilled during the first half of 2009.

Artisanal Tailings Stockpile

Additional sources of artisanal tailings have been located and secured by contracts. These continue to be delivered to the plant site. Tailings secured range in value between 6 and 15 g/t.

Environmental Impact Assessment ('EIA')

The Kilimepesa Project continues to have strong support from the Kenyan Government agencies. The Company is now in the process of acquiring a Mining Licence and has submitted an EIA to the Kenyan Environmental Agency NEMA and looks forward to updating the market on these developments in due course.

Qualified Person

This announcement has been reviewed by Mr. Mark Austin, the group geologist for Goldplat and has more than 25 years' relevant experience in the field of activity concerned. He is a fellow of the Geological Society of South Africa ('GSSA') and has consented to the inclusion of the material in the form and context in which it appears.

For further information visit www.goldplat.com or contact:
Demetri Manolis, CEO Goldplat plc, Tel: +27 11 423 1203, Mob: +27 82 454 7392
James Joyce WH Ireland Limited, Tel: +44 (0)20 7220 1666
Isabel Crossley St Brides Media & Finance Ltd, Tel: +44 (0)20 7242 4477

Notes

Goldplat plc is an AIM-listed gold producer with operations in Africa . Its strategy is to create a mid-tier mining house focused on gold production leveraged through revenue generated from its gold recovery businesses.

The Company has two recovery business based in South African and Ghana, which, by safely disposing of mining by-products, fulfil an important aspect of the mines' environmental management programmes. The South African plant is located near the centre of the East Rand Goldfield and raw material feedstock's are sourced from many of the major South African mining companies including Anglogold Ashanti, Goldfields, Harmony, DRD Gold and other smaller producers,. The Ghana plant, located in the free port of Tema, provides access to raw materials from mines in Mali , Guinea , Burkina Faso , Benin , Cote D'Ivorie, Senegal , the DRC and Mauritania , as well as Ghana .

Goldplat has expanded into gold mining through the acquisition of known deposits with targets of between 200,000 and one million contained ounces. To this end, in a 50/50 JV, it is developing the potential of the highly prospective 213 sq km Lolgorien licence area located in the historically producing Migori Archaean Greenstone Belt in western Kenya , which commenced production January 2009. In addition, a number of other potential projects across Africa are under review.

Glossary of Terms

STRIKE: the horizontal direction of a planar body (90º to the dip direction)

TAILINGS: the residues from the processing of ore

ADIT: a near-horizontal tunnel driven into a hillside