Afarak Group — M&A Activity 2017

Sep 27, 2017

AFARAK TO ACQUIRE ZEERUST CHROME MINE IN SOUTH AFRICA

AFARAK TO ACQUIRE ZEERUST CHROME MINE IN SOUTH AFRICA

07:00 London, 09:00 Helsinki, 27 September 2017 - Afarak Group Plc ("Afarak" or
"the Company") (LSE: AFRK, NASDAQ: AFAGR)

         AFARAK TO ACQUIRE ZEERUST CHROME MINE IN SOUTH AFRICA

           Minimum opencast ore reserves of 2 million tonnes

Afarak's shaking table technology will be used to process 1.2 million tonnes of
tailing dump
Mogale to become first South African smelter producing high carbon FeCR

Afarak Group plc, through its South African subsidiary Afarak Mining Limted, has
reached an agreement in principle to acquire a 70% shareholding in ZCM (Zeerust
Chrome Mine) from Afrika Mineral Trading & Investment Trust ("AMTIT"), with the
remaining 30% to be allocated to workers, community and other BEE partners. The
transaction will amount to ZAR20 million and will be effected over a 12-month
period.

The conclusion of the final sale and purchase agreement is planned during the
month of October 2017, subject to documentation and completion of the final
legal due diligence process.

The ZCM mine has an opencast ore resource of about 2 million tonnes if mined up
to 35 meters high wall. Additional capacity exists in the 1.2 million tonnes
tailing dump. Afarak has amassed extensive expertise with shaking table
technology, which it already employs in its mining operations in South Africa
and Turkey, allowing it to produce significant quantities of concentrate at a
comparatively low cost from the tailings.

In addition to the mine, the assets to be acquired include an existing
processing plant, with a production capacity of 15,000 tonnes a month, 900
hectares of farm land and 20 houses.

Guy Konsbruck, Afarak's CEO, said that "This acquisition further bolsters our
position as a leading specialty alloys producer. Afarak specifically targeted
ZCM due to the unique quality of its chrome ore. By leveraging our in-house
technical expertise and controlling our own production of ZCM high quality ore,
we are now in the position to make Mogale the only South African smelter capable
of producing High Carbon FeCr , further differentiating our product range and
increasing the contribution of higher yielding specialty alloys in our
production output."

AFARAK GROUP PLC
Guy Konsbruck
CEO

For additional information, please contact:

Afarak Group Plc

Guy Konsbruck, CEO, +356 2122 1566, guy.konsbruck@afarak.com
Jean Paul Fabri, PR 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 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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