Afarak Group — Interim / Quarterly Report 2016

May 11, 2016

AFARAK GROUP PLC'S INTERIM REPORT FOR 1 JANUARY - 31 MARCH 2016

AFARAK GROUP PLC'S INTERIM REPORT FOR 1 JANUARY - 31 MARCH 2016

07:00 London, 09:00 Helsinki, 11 May 2016 - Afarak Group Plc ("Afarak" or "the
Company") (LSE: AFRK, NASDAQ: AFAGR) Interim Report

AFARAK GROUP PLC'S INTERIM REPORT FOR 1 JANUARY - 31 MARCH 2016

Q1 HIGHLIGHTS (January - March 2016):

• Revenue increased by 0.1% to EUR 40.8 (Q1/2015: 40.7) million
• Processed material sold increased by 20.0% to 26,952 (Q1/2015: 22,466) tonnes
• EBITDA was EUR 3.3 (Q1/2015: 4.6) million and the EBITDA margin was 8.0%
  (Q1/2015: 11.4%)
• EBIT was EUR 1.7 (Q1/2015: 2.9) million and the EBIT margin was 4.2% (Q1/2015:
  7.2%)
• Profit for the period from continuing operations totalled EUR -0.2 (Q1/2015:
  2.3) million
• Ferrochrome production increased by 0.7% to 27,631 (Q1/2015: 27,449) tonnes
• Tonnage mined decreased by 58.2% to 45,486 (Q1/2015: 108,773) tonnes
• Cash flow from operations was EUR 7.2 (Q1/2015: -2.7) million and liquid funds
  at 31 March were
    EUR 21.7 (31 March 2015: 11.5) (31 December 2015: 19.6) million

                              +-----+            +------+
                              |     |            |      |
                              |Q1/16|Q1/15 Change|FY2015|
  

  KEY FIGURES (EUR million) | | | |
  ------------------------------------+-----+------------+------+
  Revenue | 40.8| 40.7 0.1%| 187.7|
  ------------------------------------+-----+------------+------+
  EBITDA | 3.3| 4.6 -29.4%| 17.2|
  | | | |
  EBITDA margin | 8.0%|11.4%  | 9.2%|
  ------------------------------------+-----+------------+------+
  EBIT | 1.7| 2.9  | 9.9|
  | | | |
  EBIT margin | 4.2%| 7.2%  | 5.3%|
  ------------------------------------+-----+------------+------+
  Earnings before taxes | 0.9| 2.7  | 6.5|
  | | | |
  Earnings margin | 2.1%| 6.5%  | 3.5%|
  ------------------------------------+-----+------------+------+
  Profit from continuing operations | -0.2| 2.3  | 7.8|
  | | | |
  Profit from discontinued operations| 0.5| 0.0  | 0.8|
  | | | |
  Profit | 0.2| 2.3  | 8.5|
  | | | |
  Earnings per share, basic, EUR | 0.00| 0.01  | 0.03|
  ------------------------------------+-----+------------+------+

Commenting on the first quarter results, Alistair Ruiters, CEO, said:

"I am pleased that Afarak has managed to maintain positive EBIT and generate
cash in a quarter that witnessed other producers filing for business rescue and
with a market characterised by falling prices and weak demand.

Revenue and sales volumes increased considerably in the FerroAlloys
segment. Sales volumes decreased in the Speciality segment, due to Afarak's
policy not to compromise on price. To mitigate against short term swings in
prices Afarak has successfully continued on maintaining long term agreement.

Looking ahead, Afarak continues to strengthen its internal processes and
functions. Today we have a streamlined organisation that is actively looking at
opportunities that generate cash and increase profits. We are also focused on
internal investments and, as the shaking table project has come on stream, we
are expecting positive results from this investment. Afarak is committed to
achieving long-run sustainability and growth and we are determined to continue
creating value for all our stakeholders."

Disclosure procedure

Afarak follows the disclosure procedure enabled by Disclosure obligation of the
issuer (7/2013) published by the Finnish Financial Supervision Authority, and
hereby publishes its Q1/2016 interim report enclosed to this stock exchange
release. The Interim Report is attached to this release and is also available on
the Company's website at www.afarak.com.

AFARAK GROUP PLC
Alistair Ruiters
CEO

For additional information, please contact:

Afarak Group Plc
Alistair Ruiters, CEO, +358 50 372 1130, alistair.ruiters@afarak.com
Melvin Grima, Finance Director, +356 2122 1566, melvin.grima@afarak.com
Jean Paul Fabri, PR & Communications Manager, +356 2122 1566,
jp.fabri@afarak.com

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

Afarak Group is a chrome mining and minerals 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

[HUG#2011547]

Attachments: