Afarak Group — Share Issue/Capital Change 2015

Aug 14, 2015

AFARAK BOARD RESOLUTION ON DIRECTED SHARE ISSUE

AFARAK BOARD RESOLUTION ON DIRECTED SHARE ISSUE

13.00 London, 15.00 Helsinki, 14 August 2015 - Afarak Group Plc, Stock Exchange
Release

AFARAK BOARD RESOLUTION ON DIRECTED SHARE ISSUE

The Board of Afarak Group Plc ("Afarak" or the "Company") (LSE:  AFRK, OMX:
AFAGR)  announces that it has on 14 August 2015 resolved to offer 3,478,261 new
ordinary shares in the Company ("New Shares") to Gujo Investment (Pty) Limited,
one of the vendors of Mogale Alloys (a company acquired in May 2009) under the
settlement agreement announced on 11 October  2012. Following completion of the
share issue, the consideration for the acquisition will be fully satisfied. All
of the New Shares have been subscribed for and the subscriptions have been
approved by the Board of Directors.  The total subscription price of EUR
1,739,130.50  (EUR 0.5 per  share) has  been fully  satisfied through offset
against the settlement receivables of  the Vendor related to the Mogale Alloys
acquisition.

The New Shares represent approximately 1.34 per cent of the current issued share
capital and approximately 1.36 per cent of the total voting rights of the
Company prior to the share issue. The New Shares are offered in derogation of
the pre-emptive subscription right of shareholders and Board approval of the
share issue is pursuant to the authorisation granted by the Annual General
Meeting to the Board of Directors 8 May 2015. The subscription price will be
recognized under the invested unrestricted equity fund.

The New Shares are expected to be registered with the Finnish Trade Register on
21.08.2015. Following registration an application will be made to the UK Listing
Authority and the London Stock Exchange for admission to (i) the Official List
and (ii) to trading on the London Stock Exchange's and NASDAQ OMX Helsinki's
markets. Admission is expected to take place on 24.08.2015. The New Shares carry
shareholder rights as of the registration date with the Finnish Trade Register
and will rank pari passu with the Company's existing issued ordinary shares.

Following the issue of the New Shares, the total amount of shares in issue will
be increased by 3,478,261 from 259,562,434 to 263,040,695 ordinary shares of no
par value. 4,244,717 ordinary shares are held in treasury.

AFARAK GROUP PLC
Alistair Ruiters
CEO

For additional information, please contact:

Afarak Group Plc
Dr Alistair Ruiters, CEO, tel +358 50 372 1130 (Helsinki Office),
Alistair.ruiters@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
ferro alloys business in southern Africa. The Company is listed on NASDAQ
Helsinki (AFAGR) and the Main Market of the London Stock Exchange (AFRK).
www.afarak.com

Distribution:
NASDAQ Helsinki
London Stock Exchange
main media
www.afarak.com

[HUG#1945683]

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