Progress Update - Kilimapesa Gold (Pty) Limited

Goldplat plc, the AIM quoted gold producer, is pleased to provide an update on its ongoing evaluation and development programme from its 50% owned joint venture Lolgorien gold operation, situated within the historically producing Migori Archaean Greenstone Belt in south western Kenya. Following the implementation of a phased development plan, gold production is expected to commence in the second half of 2008.

Highlights

Goldplat CEO Demetri Manolis said, “We have made great progress in the development of the operation at Lolgorien with production now targeted to start second half of 2008. We have already commenced the refurbishment of the plant and are stockpiling high grade material in readiness for processing at the plant. Until the Kenyan operation becomes cash flow positive, expenditure is being financed from our recovery operations in South Africa and Ghana, which are both performing strongly.”

Kilimapesa Hill

The Company has adopted a phased approach for the development of the Lolgorien project. Phase I, which has been completed, involved the evaluation of 10 selected targets within the licence area, including sampling within existing adits, undertaking IP programmes and shallow auger drilling of historic tailings. Goldplat has now entered into Phase II of its development programme, involving the extension of the existing underground development for Kilimapesa to provide bulk sampling for ore evaluation.

As part of Phase II, Goldplat is developing 400m of underground tunnels to increase exposure of the two identified gold bearing quartz veins at Kilimapesa Hill. Progress includes the cutting of an 800m road up to the adit entrance and the equipping of the adit station, including a compressor and generator house, store and workshop. The adit is also equipped with ventilation ducting as well as water and compressed air pipes. All the available development faces have been drilled and blasting has commenced. Ore is being transported to the plant site where it is being stockpiled in readiness for the bulk sampling phase. Phase II is budgeted to cost $200k.

Plant

The $500k investment and refurbishment programme aimed at bringing the plant into production in the second half of 2008 has begun with equipment being purchased in South Africa and the civils construction underway at Lolgorien.

Community Relations


Considerable time has been spent in building excellent relationships with the local community. The joint venture is very pleased with the quality of skills available in the area as well as the relationships with the local artisanal miners, with both parties envisaging considerable benefits through working together. The joint venture is already purchasing circa 5,000 tonnes of high grade tailings from the artisanal operations, which are currently being stockpiled at the plant.

The community relationship has been fully endorsed by the Permanent Secretary for the Ministry of Environment and Natural Resources, Professor James Kiyiapi, who, in conjunction with the Commissioner of Mines, Mr Lojomon Biwot, made a very successful visit to the mine site in March.

Further details

The joint venture, in which the Company has a 50% interest, was signed in July 2007 with Oslo and Swedish-NGM listed International Gold Exploration AB (“IGE”) and registered in Kenya as Kilimapesa Gold (Pty) Ltd. A phased approach has been adopted for the development of the highly prospective Lolgorien project.

The Migori Archaean Greenstone Belt, where the Lolgorien licence area is located, is a northern continuation of the Lake Victoria Goldfields, which hosts many major gold deposits including Barrick’s multi-million ounce North Mara mine, which lies approximately 40 km to the southwest of the Lolgorien property. The licence area has been the site of considerable historical gold mining and is still the focus of artisanal mining. Official reports, starting from the early 1900s, show that between 1920 and 1950 the area produced nearly 1 million ounces of gold.

On commencement of production, expected in the second half of 2008, gold will initially be extracted from a blend of existing and purchased tailings and ore produced during the mine development stage.

This announcement has been reviewed by Mr Mark Austin. Mr Austin is 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.

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
DRIVE: a tunnel on strike that is developed on ore
IP: INDUCED POLARISATION (IP): a geophysical method utilising the electric properties of minerals
AUGER DRILLING: a method of drilling in which penetration is accomplished by the cutting or gouging action of chisel-type cutting edges forced into the substance by rotation of the auger bit

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, fulfill 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’Ivorie, Senegal, the DRC and Mauritania, as well as Ghana.

Goldplat is expanding into gold mining through the acquisition of known deposits with targets of between 200,000 and one million ounces of ore contained. 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, with a view of establishing a mining operation in the short term. A number of other potential projects across Africa are under review.