Afarak Group — Regulatory Filings 2017

Jan 12, 2017

AFARAK GROUP RESTARTS OPENCAST MINING AT MECKLENBURG

AFARAK GROUP RESTARTS OPENCAST MINING AT MECKLENBURG

      Opencast mining expected to yield 200,000 tons of chrome ore
        Work on underground mining shaft set to commence in 2017
    Underground mine has potential of 4.5 million tons of chrome ore

Afarak Group has entered into a Mining Services Agreement with Pholagolwa Mining
to continue the opencast mining Mecklenburg.  Work is currently underway on
increasing the high wall to 65 metres from 40 metres.  The first tonnages are
expected shortly and full production is expected to be reached by April for a
period of six months.  Full production will be 30,000 tons of chrome ore per
month and the total opencast for the project is expected to be just over
200,000 tons of chrome ore.  This will also allow better access to the
underground mining area which has the potential to produce 4.5 million tons of
chrome ore.  Development of the shaft is scheduled to start later this year.

Dr Alistair Ruiters, outgoing-CEO of Afarak, said that this project highlights
Afarak's responsiveness to market conditions. "In response to the market
upswing, an opportunity was identified in increasing the high wall and which
will allow opencast mining and facilitate underground mining. This added
production capacity allows us to reap the benefits of the current market
upswing."

Guy Konsbruck, CEO-designate of Afarak, added that, "Afarak continues to
consolidate its position as a lean and flexible vertically-integrated company
with the capacity to respond to favourable market conditions."

[]

Attachments: