Gold Production Business' in South Africa and Ghana Continue to Expand

Goldplat plc, the AIM quoted gold producer, is pleased to announce that it has signed a Letter of Intent (‘LOI’) with DRD Gold SA (‘DRD Gold’), a mid-tier gold producer, securing further feedstock for the Company’s South African operation, Goldplat Recovery (Pty) Ltd (‘Goldplat Recovery’).The agreement enhances the Company’s relationships with gold miners in South Africa, (current clients include AngloGold Ashanti, Goldfields, Harmony, and other smaller producers), and provides additional feedstock for its expanding recovery operation.   

Under the terms of the LOI, Goldplat Recovery will initially undertake analysis of all of surface reserves from DRD Gold’s East Rand Proprietary Mines (ERPM) operation, including old shaft areas, railway lines and the gold plant itself, following which contracts will be signed based on the volumes, grades and recovery for the viable reserves established.

In Ghana, Goldplat’s second gold recovery business Gold Recovery Ghana Limited (‘GRG’) is making solid progress in the expansion of the business and processing operation.The Company is currently in discussions with West African mining companies in Mali and Burkina Faso regarding the acquisition of further processing by-products for gold recovery.In light of this, Goldplat is set to order an additional furnace to be installed by Q1 2012 to enable the Company to increase GRG’s gold processing capacity, which will be funded by internal cash flow.  The Company will update the market on these developments in due course.

Goldplat’s CEO Demetri Manolis said, “We continue to expand our gold recovery business’ and build relationships within our core market areas.Gold production for the year to 30 June 2010 was 21,461 ounces and we believe that with additional contracts we will continue to build on our performance and further increase production. We look forward to publishing our final results in September 2011 which will highlight the strong growth and in turn profitably of the Company.”

For further information visit www.goldplat.com or contact:

Demetri Manolis, CEO Goldplat plc Tel: +27 (0) 11 423 1203
James Joyce WH Ireland Limited Tel: +44 (0) 20 7220 1666
David Porter WH Ireland Limited Tel: +44 (0) 20 7220 1666
Bill Sharp Alexander David Securities Ltd Tel: +44 (0)20 7448 9820
David Scott Alexander David Securities Ltd Tel: +44 (0)20 7448 9820
Felicity Edwards St Brides Media & Finance Ltd Tel: +44 (0)20 7236 1177
Isabel Crossley St Brides Media & Finance Ltd Tel: +44 (0)20 7236 1177

Notes

Goldplat plc is an AIM-listed gold producer with operations in Africa . Its strategy is to consolidate its position as a gold producer in Africa and build itself into a mid-tier gold company .

The Company has two recovery businesses based in South Africa and Ghana, which, by safely disposing 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 feedstocks 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'Ivore, Senegal , the DRC and Mauritania , as well as Ghana .

Goldplat's strategy is to build itself into a mid-tier gold producer, through the acquisition of known deposits with targets of between 200,000 and one million contained ounces. Kilimapesa Gold is a wholly owned subsidiary of Goldplat and is developing the potential of the 213 sq km Lolgorien licence area located in the historically producing Migori Archaean Greenstone Belt in western Kenya . Kilimapesa Gold commenced initial production in January 2009 and an aggressive exploration and development programme resulted in a maiden JORC compliant resource being reported in October 2009.

Goldplat also has an option over the 246 sq km Nyieme Gold Project located in Burkina Faso, which includes known high-grade quartz vein structures, with drill core results showing up to 17.83 g/t gold over one metre and 11.67 g/t over five metres. A maiden resource was announced in December 2010 of 685,000 tonnes at 2.61 g/t Au for 57,501oz Au at a cut-off grade of 1.0 g/t Au for all categories but the Company hopes to increase this through further exploration.

Additionally, the Company has acquired the Banka Mining Lease, a ten year renewable mining lease for gold and associated minerals covering an area of 29 sq km located in the Amansie East and Asante Akim South Districts of the Ashanti Region of the Republic of Ghana . The Company is now implementing a defined development plan with a view to proving a JORC compliant resource.