Afarak Group — Earnings Release 2018

May 4, 2018

PROFIT WARNING: AFARAK GROUP EXPECTS A NEGATIVE RESULT IN QUARTER ONE

PROFIT WARNING: AFARAK GROUP EXPECTS A NEGATIVE RESULT IN QUARTER ONE

17.00 London, 18.00 Helsinki, May 4, 2018 - Afarak Group Plc ("Afarak" or "the
Company")

PROFIT WARNING: AFARAK GROUP EXPECTS A NEGATIVE RESULT IN QUARTER ONE

As indicated in our previously published market sentiment for the first quarter
of 2018, a range of market-induced factors affected the profitability of
operations during the period and the Company currently expects to post a
negative EBITDA in the broad region of €1 million for the quarter.

Following a 30% drop in the charge chrome benchmark price from a year earlier on
one side, and the significantly increased prices of raw materials, graphite
electrodes and ferrosilicon on the other, profitability was further hindered by
weakening of the US dollar combined with a strengthening of the South African
Rand. In addition, several technical issues, including breakdowns and temporary
stoppages of processing equipment in our South African mining operations, caused
lower production outputs, ultimately affecting raw material supply to Mogale, as
well as revenues from sales of chrome ore to the market.

Amid those negative market factors, management took measures to minimise the
costs, hedge the foreign exchange exposures and, where appropriate, postpone the
sales of the materials, thus gearing towards exploiting the better market
conditions anticipated in the second quarter.

Looking ahead, the benchmark price for quarter two rebounded by 20% from that in
quarter one, albeit still lower than that a year earlier. This is expected to
support a positive quarter two result on the back of higher sales prices and
volumes.

Afarak will publish its interim report for the first quarter of 2017 on May
11(th), 2018.

Afarak Group plc
The Board of Directors

For additional information, please contact:

Afarak Group Plc

Guy Konsbruck, CEO, +356 2122 1566, guy.konsbruck@afarak.com
Jean Paul Fabri, +356 9940 8746, jp.fabri@afarak.com

Financial reports and other investor information are available on the Company's
website: www.afarak.com.

Afarak Group is a specialist alloy producer focused on delivering sustainable
growth with a Speciality Alloys business in southern Europe and a FerroAlloys
business in South Africa. The Company is listed on NASDAQ Helsinki (AFAGR) and
the Main Market of the London Stock Exchange (AFRK).

Distribution:
NASDAQ Helsinki
London Stock Exchange
Main media

www.afarak.com

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