Progress Update on Gold Production and Exploration Projects

Goldplat plc, the AIM quoted gold producer, is pleased to provide a positive operations update on its three main gold projects: the Kilimapesa Gold operating mine in Kenya (‘Kilimapesa’); the Nyieme gold development project in Burkina Faso; and the Anumso gold exploration project in Ghana (formerly the Banka Gold Project) and its two gold recovery operations in South Africa and Ghana.

Overview

  • Excellent progress being maintained on all fronts - increasing revenue through improving gold recovery production and first gold mining operations commencing January 2012 at Kilimpaesa
  • Milestone first gold sales achieved at Kilimapesa with 399 ounces sold on 13 January 2012
  • Plant capacity will initially increase to 3,000 tonnes per month with further expansions planned as ore resources expand
  • Kilimapesa expected to raise production levels towards 10,000 ounces of gold by the end of 2012
  • Assay results are encouraging highlighting the economic potential of two additional areas at Kilimapesa
  • Drilling programme underway in tandem with ongoing underground development designed to expand Kilimapesa’s ore resource to in excess of 500,000 ounces of gold
  • 4,800 metres core drilling exploration programme commenced at Anumso in Ghana - continuation of mineralised Tarkwaian conglomerates confirmed
  • Planning work programme at Nyieme to target additional areas of economic potential following completion of drilling programme in 2011
  • AIM to expand Goldplat’s total resource base towards 1 million ounces by H1 2012 through exploration across portfolio
  • Goldplat’s gold recovery operation in South Africa is performing strongly and in line with management’s expectations
  • GRG gold recovery operation has performed above management’s expectations for gold recovery and profitability in H1 2012 - trend set to continue for the second half of FY 2012

Goldplat CEO Demetri Manolis said, “With the commencement of production of mining at Kilimapesa and gold recovery performing strongly in South Africa and ahead of management’s expectations in Ghana, we expect to easily exceed our production of 28,185 ounces gold last year.We are a highly cash generative and profitable business with three production/revenue streams and a cash balance in excess of £4.59 million as at 31 December 2011.This is against a current market cap of circa £19 million.

“We were delighted to report our first gold pour and sales at our high grade quartz vein project at Kilimapesa earlier this month, and we look forward to continuing underground and surface development to bring the resource to in excess of circa 500,000 ounces of gold.Additionally, we are making excellent progress at our two other highly prospective gold projects: Anumso in Ghana and Nyieme in Burkina Faso.All three gold mining projects are being developed through the implementation of extensive drilling programmes with the aim of delineating in excess of 1 million ounces of resources this year.

“Goldplat is in a fantastic position to build its value. With three gold producing operations, a strong treasury, and two additional high grade projects being advanced towards production, we look forward to a highly exciting 2012.”

Kenya - Kilimapesa Gold Ltd

Gold Sales
Following the issuance of the 21 year Mining Lease in November 2011, the Company moved quickly to complete the construction and commissioning of the elution plant, which enabled the export and sale of gold bullion. The first gold sale of 399 ounces took place on 13 January 2012. The Minister of Environment and Natural Resources, Honourable Michuki, will officially open the mine in due course.

Exploration
The exploration programmes at Vim/Rutha and Red Ray target areas, which are 2km south of Kilimapesa Hill where the maiden resource was defined, have been completed with 21 holes drilled for a total of 921 metres and 13 holes drilled for a total of 650 metres at each target respectively. Assay results to date have been very encouraging highlighting the economic potential of these new areas. A full listing of the results is expected to be announced in Q1 2012.

An additional five-hole drilling programme has commenced at the Kilimapesa Hill target with 170 metres drilled to date. This programme is designed to expand the Kilimapesa Hill ore resource on to 650 metres on strike and to a depth of 140 metres beyond the current underground development.

Underground Development
Underground development has continued to progress well with an exposed and sampled combined strike length over the two main auriferous quartz veins of 425 metres. Selected rock chip sampling stretch values include 13.55 g/t over an average width of 1.27 metres across 54 metres of strike and 8.65 g/t over an average width of 1.50 metres over a strike of 57 metres. This database is currently being updated for a further ore resource statement to be released in March/April 2012.

Work has commenced on the new Adit D, which lies 60 metres vertically below Adit B, with the portal now under construction. The ensuing development will contribute significantly to the expansion of the ore resource at Kilimapesa Hill as well as allow for much increased mining tonnages.

Plant
Planning has started on expanding the plant in preparation for full scale mining operations with a targeted annual production of 10,000 ounces per annum within the mines first year of operation. It is envisaged that the plant capacity will initially increase to 3,000 tonnes per month with further expansions planned as ore resources expand.

Kilimapesa Gold has purchased a 500 Kva generator to act as a power supply back-up in the case of grid power outages.

Ghana – Anumso Gold Exploration (previously known as the Banka Gold Project)

The 29 sq km Anumso Gold Exploration licence is located in the highly prospective Amansie East and Asante Akim South Districts of the Ashanti Region of the Republic of Ghana, 10km southwest of Newmont’s 14 million oz Akyem gold deposit.

A 4,800 metres core drilling exploration programme commenced on 22 November 2011. To date 19 holes have been completed for a total of 2,900 metres. The continuation of mineralised Tarkwaian conglomerates has been confirmed, underlining the prospectivity of the project.

Burkina Faso – Nyieme Licence

The 246sq km Nyieme project is located in the prospective Birimian Greenstone Belt in southern Burkina Faso, West Africa. Following on from the completion of the 3,100 meter drilling programmes in 2011 which defined a resource of 1,395,000 tonnes at 2.06g/t gold for 92,589 ounces, Goldplat has reviewed the available geological information and is constructing a work programme to target additional areas of economic potential.Further work planned is as follows:

  • Continue to drill test the northerly extension of the Nyieme Village Zone
  • Drill test the unexplored gap between the Nyieme Village Zone and the A1 Zone 1.5 km to the south
  • Drill test the four zones at the A1 Zone, which remain open to the north and south
  • Drill test the depth extensions of the zones at A1 Zone
  • Investigate the D Zone for a possible new zone
  • Drill artisanal workings located 3 km to the south of the A1 Zone
  • Conduct further exploration on the extension of considerable artisanal workings immediately south of the Nyieme Licence
  • Investigate other targets that were highlighted after the initial soil sampling programme conducted in early 2011

See map link at the bottom of this news release outlining Nyieme project area and targets.

The Company is also in discussions with other licence holders within the Nyieme project vicinity regarding joint venture and consolidation opportunities to increase the Company’s geographic footprint in the country.

Goldplat Recovery Operations – South Africa and Ghana

Goldplat’s gold recovery operation in South Africa is performing strongly and in line with management’s expectations. In turn, Goldplat Recovery Ghana Limited (‘GRG’) has performed above management’s expectations in the first six months of the year in terms of gold recovery and profitability, and the Board expect to see this trend continue for the second half of FY 2012 with gold production for FY2012 targeted to exceed FY2011 production of 9,995 oz of gold.

A full update outlining progress of the Company’s two gold recovery operations will be made in due course.

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

Demetri Manolis, CEO Goldplat plc Tel: +27 (0) 11 423 1203
Ewan Leggat/Katy Birkin Fairfax I.S. PLC Tel: +44 (0) 20 7598 5368
Felicity Edwards St Brides Media & Finance Ltd Tel: +44 (0)20 7236 1177

Goldplat plc, which has a market cap of circa £19 million, is an AIM-listed profitable, debt free gold producer and mine development company focussed in Africa, which has a strong cash position of in excess of £4.59 million as at 31 December 2011.The Company has a solid portfolio of assets including two gold recovery operations in South Africa and Ghana, which recover precious metal from by-products of the mining process such as woodchips, fine carbon and waste grease.For the FY 2011 these operations produced circa 28,000 ounces of gold. Goldplat also has a producing gold mine in Kenya and two brownfield gold development projects in Ghana and Burkina Faso with near term resource upgrade potential from which it aims to delineate in excess of 1 million ounces of resources by H1 2012.In line with this, the Company has implemented defined exploration and development programmes across each of its projects with a view to developing multiple profitable mining operations in the near to medium term.