KEFI Minerals Plc

27-28 Eastcastle Street London W1W 8DH United Kingdom

Tel: +90 232 381 9431

Fax: +90 232 381 9071

Email: [email protected]

6 May 2015

KEFI Minerals plc

('KEFI' or the 'Company')

EXPLORATION UPDATE AT JIBAL QUTMAN, SAUDI ARABIA

Positive Preliminary Economic Assessment based on increase in JORC Mineral Resource and favourable metallurgical heap leach test results

KEFI Minerals (AIM: KEFI), the gold exploration and development company with projects in the Kingdom of Saudi Arabia and the Federal Democratic Republic of Ethiopia, is pleased to announcean expansion of JORC (2012) Compliant Mineral Resources and the early results of metallurgical heap leach testing for its Jibal Qutman project in Saudi Arabia. As with all KEFI's activities in Saudi Arabia, the Jibal Qutman project is part of the Gold and Minerals Joint Venture company ('G&M').
The December 2014 Mineral Resource has been updated and upgraded via introduction of exploration data from activities carried out until end March 2015. The Company is focusing on the possibility of an open cut heap leach operation at Jibal Qutman in order to lower capital requirements and expedite the potential development timetable.

Highlights of Preliminary Economic Assessment

 The additional resource is a JORC compliant Indicated and Inferred Resource category
 The total Mineral Resource, including the additional November 2014 resource, is 28.4 Mt at 0.80 g/t Au for 733,045 contained gold ounces (previously 22.0 Mt at 0.90 g/t Au for 633,461 contained gold ounces), both at a cut-off grade of 0.2 g/t Au
 The expansion of Mineral Resource notably includes an oxide resource of 11.1Mt at 0.80 g/t Au for
287,329 contained gold ounces
 Positive metallurgical heap leach test work results have been received from coarse crush cyanide leach on four of the main oxide deposits, averaging 69% gold recovery over a 5-day leach time. Column leach test work is ongoing and is expected to support the coarse crush results
 Preliminary pit shells at a price of $1,250/oz Au have been designed on the oxide resource indicating a potential open cut mineable resource of 6.6Mt at 0.95 g/t Au for 201,600 oz Au
 An internal preliminary assessment using 69% Au recovery and local costs suggests an operating cash cost of $597/oz on a 1.5Mt per annum heap leach mine

Conclusion and Next Steps

 These results indicate the economic merit of development
 The Company intends to commence a Preliminary Feasibility Study ('PFS') in Q3 2015, which it expects to complete in mid-2016
 The development of the project would require an investment of approximately $30m in 2017, to be comprised of a local development loan of $22.5m and equity of $7.5m (with KEFI being accountable for 40% of the equity portion)

Jeff Rayner, Exploration Director of KEFI Minerals, commented:

'We are very encouraged by these latest results at our Jibal Qutman project. The metallurgical test work and enlarged oxide resource indicate the economic viability of the development of a low cost heap leach operation that could generate early cash flow to fund our Saudi exploration program. With our Tulu Kapi project in Ethiopia on schedule to commence gold production in 2017 and Jibal Qutman in

p.1 of 5 www.kefi-minerals.com

Saudi Arabia expected to transition to the development phase shortly thereafter, we are well-positioned to benefit from being one of the first companies exploring the enriched Arabian Nubian Shield.' Enquiries

Background: Metallurgical Test Work

Samples of oxide mineralisation from diamond drill core at 4 of the main Jibal Qutman deposits; Main Zone, West Zone, South Zone and 3K Hill were sent to ALS Metallurgy in Perth, Australia. The samples were crushed, assayed, composited and separated into 4 crush sizes (
Column leach test work has been initiated and confirmatory results are expected within two months.

Internal Economic Assessment

Pit optimization studies have been applied to the oxide resources at Jibal Qutman. Initial results show a potential mineable resource in a series of shallow open pits of 6.6Mt at 0.95 g/t Au for an in-situ 201,600 oz.
The following parameters were applied to the preliminary, internal economic assessment, some of which were derived from G&M's 2014 technical study of the potential CIL operation at Jibal Qutman and also from case examples of similar currently operating heap leach mines: mining cost $1.60/t; heap leach processing cost
$5.50/t; general and administration $2.00/t; average gold recovery 69%; mining dilution 10% and Au price
$1,250/oz.
Based on the Company's preliminary economic assessment of these results, the project now warrants a PFS to confirm the basis for a mine licence application. Results to date indicate gold production 139,000 oz over an initial 4.5 years life of mine, at an average grade of 0.95 g/t Au, Au recovery of 69% and a strip ratio of 2.18. Opex would be in the order of $597/oz. Such a development, if validated by independent studies, approved by the authorities and committed by G&M, would involve an investment of $30m, potentially funded as 75% by local finance institutions with KEFI's 40% share of equity funding being $3m. This potential development would be a source of funding of G&M's regional exploration programs and its timing could be along the lines of completing the technical studies and permitting in 2016/17 and development thereafter.
The Company expects to continue to define additional oxide resources in the licence area and on adjoining licence application areas. Cash flow from the heap leach could fund the addition of a carbon in leach (CIL) circuit for mining and processing of the sulphide mineralisation.

Resource Update

p.2 www.kefi-minerals.com
In March 2014, the Company reported a JORC Compliant Resource of 495,194 oz and the resource model was independently verified. A non JORC-Compliant resource upgrade of 633,461 oz was estimated internally and reported by the Company in December 2014.
A new JORC-Compliant resource estimated has been completed by the Company in April 2015. The additional resources are classified as Indicated and Inferred and have been primarily derived from expanding previous deposits along strike and from the new discoveries at Red Hill.
The total JORC (2012) Mineral Resource is now 28.4 Mt at 0.80 g/t Au for 733,045 ounces contained gold. Geological interpretation and construction of orebody solids, which constrain mineralised intercepts at a 0.2
g/t grade boundary, was performed in Surpac. Block model construction, variography, geostatistics studies and grade estimation were carried out in CAE Studio 3 (Datamine) and Advanced Geostatistics Modules mining software using dynamic anisotropy to align the estimation with the local dip and strike of mineralisation trends.
Top cuts were applied to prevent over estimation and smearing of comparatively high values relative to the dataset. Top cutting was based upon continuity in log probability plots and carried out by individual domain.
The estimate was carried out in a three pass Ordinary Kriging plan, where successive search volumes were 2 and 4 factors larger than the initial search ellipse. Final tonnes and grade reported on the kriged estimate from CAE Studio 3.

Numbers may not add up due to rounding

Visual comparison of composite sample grade and block grade were conducted in cross section and in plan. Visually the model was considered to spatially reflect the composite grades. Statistical analysis of the block model was carried out for comparison against the composited drill hole data. The validation and checking of the block model confirms that it performs as expected globally and locally in plan and section within the 2015 drill database and structural comparison with surface and trench mapping confirm mineralised zones to outcrop where expected and be the approximate thickness as indicated by the block model.
Resource categories were based on geological mapping, interpretation, model validation, the drilling grid density, surface trenching and observation of the grade and mineralisation continuity.
The central areas of each of the mineralised zones of the deposits show the greatest continuity of mineralisation and structure and the drill hole and trenching spacing in these areas is generally on a 50m by 25m to 50m by
50m grid. KEFI consider this to be relatively well sampled in comparison to other moderate to high nugget gold deposits and provides sufficient coverage to give confidence to the geological interpretation for the
reporting of Indicated Mineral Resources; 68% of the total Resource is in the Indicated Resource category.

p.3 www.kefi-minerals.com

In peripheral areas, generally along strike of the central zones or down dip of deeper intersections, where the current drill hole and trenching spacing may range from 50m by 50m and rarely up to 50m by 100m KEFI considers the sample spacing to be suitable only of Inferred mineral resources; 32% of the total Resource is in the Inferred Resource category.
Extrapolation beyond 50m, and to a maximum of 100m has been carried out where supported by adjacent drill intercepts along strike or on section, approximately 50% of the total Inferred Resource is in this extrapolation beyond the normal sampling spacing.

INDICATED INFERRED

Tonnes Au (g/t) ounces Tonnes Au (g/t) ounces

OXIDE 833,6176 0.86 229,165OXIDE 2,806,468 0.64 58,164

SULPHIDE 9,706,111 0.86 269,323SULPHIDE 7,606,335 0.72 176,392

TOTAL 18,042,287 0.86 498,488TOTAL 10,412,803 0.7 234,556

Numbers may not add up due to rounding

COMPETENT PERSONS' STATEMENTS

References in this announcement to exploration results, resources, interpretations and prospects have been approved for release by Mr. Jeffrey Rayner. Mr Rayner is a geologist and has more than 25 years' relevant experience in the field of activity concerned. He is a Member of the Australasian Institute of Mining and Metallurgy (AusIMM) and has reviewed and consented to the inclusion of the material in the form and context in which it appears.

NOTES TO EDITOR KEFI Minerals plc

KEFI is the operator of two advanced gold development projects within the highly prospective Arabian-Nubian Shield, with an attributable 1.93Moz (95% of Tulu Kapi's 1.72Moz and 40% of Jibal Qutman's 0.73Moz) Au Mineral Resources (JORC 2012) plus significant resource growth potential. KEFI is targeting production at these projects to generate cash flows for further exploration and expansion as warranted, recoupment of development costs and, when appropriate, dividends to shareholders.
Expected milestones for the remainder of 2015 at Tulu Kapi include:
 Independently updated Definitive Feasibility Study for banking purposes
 Formalisation of bank syndicate, agreement of final terms for project finance
 Full development funding and commencement of construction
In addition, during 2015 KEFI anticipates initiating a preliminary feasibility study on the planned heap leach mine at Jibal Qutman and submitting a Mining Licence Application for Jibal Qutman in Saudi Arabia through its joint venture company, Gold & Minerals Ltd ('G&M').

KEFI in Ethiopia

KEFI has 95% ownership of the Tulu Kapi Mining Licence in western Ethiopia and is at an advanced stage in refining the development plan for the project, aimed at reducing the previously planned capital and operating expenditure. Detailed research has yielded encouraging results and has been summarised in recent Company announcements.
At the end of 2013, the Ethiopian Government improved the fiscal regime applying to the gold sector, and
Tulu Kapi in particular. This included lowering the income tax rate for mining (to 25% from 35%); settling of

p.4 www.kefi-minerals.com

repayment schedule for inherited VAT liability (over three years rather than up-front); the removal of VAT on future exploration drilling expenditure; lowering royalty on gold mining (to 7% from 8%); accelerating the depreciation of historical and future capital expenditure (over four years); and clarifying the workings of the Government's 5% free-carried interest so that it does not impede conventional project financing terms.

KEFI in the Kingdom of Saudi Arabia

In 2009, KEFI formed G&M in Saudi Arabia with local Saudi partner Abdul Rahman Saad Al-Rashid & Sons
Company Limited ('ARTAR'), to explore for gold and associated metals in the Arabian Shield. KEFI has a
40% interest in G&M and is the operating partner. To date, G&M has conducted preliminary regional reconnaissance and has had five exploration licences ('EL') granted, including Jibal Qutman and the recently granted Hawiah exploration licence that contains over 5km2of outcropping gossans developed on VMS altered and mineralised rocks.
ARTAR, on behalf of G&M, holds 24 exploration licence applications that cover an area of approximately
1,484km2. ELs are renewable for up to three years and bestow the exclusive right to explore and to obtain a
30-year exploitation (mining) lease within the area.
The Kingdom of Saudi Arabia has instituted policies to encourage minerals exploration and development, and KEFI Minerals supports this priority by serving as the technical partner within G&M. ARTAR also serves this government policy as the major partner in G&M, which is one of the early movers in the modern resurgence of the Kingdom's minerals sector.

-Ends-

p.5 www.kefi-minerals.com

JORC Code, 2012 Edition - Table 1 report KEFI Minerals - Jibal Qutman February 2014

Section 1 Sampling Techniques and Data

(Criteria in this section apply to all succeeding sections.)

Criteria JORC Code explanation Commentary

Sampling techniques

 Nature and quality of sampling (e.g. cut channels, random chips, or specific specialised industry standard measurement tools appropriate to the minerals under investigation, such as down hole gamma sondes, or handheld XRF instruments, etc). These examples should not be taken as limiting the broad meaning of sampling.

 Include reference to measures taken to ensure sample representivity and the appropriate calibration of any measurement tools or systems used.

 Aspects of the determination of mineralisation that are Material to the

Public Report.

 Rock chip sampling was adopted as a key geochemical exploration tool in early exploration phases. Samples of approximately 3kg were collected and sent for sample preparation and assayed via an industry standard procedure. Sample prep was carried out in the certified labs, which are:

Al Amri Labs (Al Amri Labs) labs, Hyder Al‐Oqaily street, st #39, Industrial area, Al‐Nuzha dist/3, Building no. 7401, unit no. 1, Jeddah

23536 ‐ 4431, Kingdom of Saudi Arabia

And

ALS Arabia, Jeddah laboratory (ALS Lab): Industrial area 1, Phase 4,

62 St. beside Riyadh bank and Civil defence bldg., P.O. Box 54605, Jeddah 21254, Tel: +966 012 608 8900

 The resulting 500g pulp was assayed by fire assay using a 30g charge and AAS finish for base metals. Sampling of rock chips followed a documented protocol and quality is of good industry standard. Rock chip assays from outcrop and grab samples are not included in the dataset used for resource estimation.
 Trenching was an important exploration tool at Jibal Qutman.

Trenches across the identified mineralized zones were excavated at

50 to 100m spacing using both wheel and track‐mounted excavators. Trenches were excavated up to a depth of 1.5m, a width of 1.5 m, and with variable lengths. Hand sampling in trenches was undertaken by trained technicians collecting a channel sample of

1

Criteria JORC Code explanation Commentary

variable length (1m - 4m) along the base of the trench wall. The sampling process was supervised by field geologists.

 In cases where 'industry standard' work has been done this would be relatively simple (e.g. 'reverse circulation drilling was used to obtain 1 m samples from which 3 kg was pulverised to produce a 30 g charge for fire assay'). In other cases more explanation may be required, such as where there is coarse gold that has inherent sampling problems. Unusual commodities or mineralisation types (e.g. submarine nodules) may warrant disclosure of detailed information.

 Trenches were logged by geologists for lithology, structure, texture, mineralization, alteration type, colour, weathering intensity and sulphide occurrence. Trench walls (showing sampling intervals and sample bags), were photographed for all trenches.
 After delivery of diamond drill core in galvanized metal trays to a dedicated core yard (located proximal to the drill site to minimize transport related risks), core was photographed, logged and sample intervals marked by a geologist. The core was then split to half core using diamond core saws so as to preserve a physical record. Sampling of diamond core followed a well‐documented protocol and quality is considered to be of good industry standard. Core recovery and RQD were measured during the logging process by trained technicians and/or geologists.
 RC drill samples were bagged and riffle split at the drillhole: a sample of approximately 3kg was kept for sample preparation. Sampling of RC chips followed a well‐documented protocol and quality was considered to be of good industry standard.
 Appropriate care was taken by supervising geologists at the drillhole site and at the sample storage facility to process both diamond core and RC chip samples following well‐documented procedures. Lithologies were respected as boundaries for diamond core sampling where a mineralized lithological unit interval was greater than 0.3 m.
 For diamond drill core and RC drill chips, logging was carried out to determine mineralization intervals based on alteration type, presence of quartz veining and sulphide occurrence.
 Both diamond drill core and RC chips samples underwent sample preparation and assay via an industry‐standard procedure. Sample

2

Criteria JORC Code explanation Commentary

preparation was carried out at a certified laboratory. The resulting

500g pulp was assayed by fire assay using a 30g FA and AAS finish.

Drilling techniques

Drill sample recovery

 Drill type (e.g. core, reverse circulation, open‐hole hammer, rotary air blast, auger, Bangka, sonic, etc) and details (e.g. core diametre, triple or standard tube, depth of diamond tails, face‐sampling bit or other type, whether core is oriented and if so, by what method, etc).

 Method of recording and assessing core and chip sample recoveries and results assessed.

 Measures taken to maximise sample recovery and ensure representative nature of the samples.

 Diamond drilling has been carried out with typically HQ (63mm) diametres to maximum depths of 150m. Either single or triple tube was used (the latter in case of highly fractured ground conditions). Downhole survey has been carried using a Reflex EZ‐Track survey system with an initial survey carried out at 6m and then at every 50m to end of hole. A total of 8 diamond holes were not surveyed due to difficult ground conditions.
 Reverse‐circulation (RC) drilling was carried out with a face sampling hammer and 4 ½ to 5 ¼ inch bit from collar to end of hole. Downhole survey was carried out using a Reflex EZ‐Track survey system with a winch and cable after hole completion. The collar was cased to a depth of 17 metres to protect the instrument during the survey. Survey Shots were taken at 6, 12 and 17 metres. This practice was adopted to attain downhole surveys for RC holes where the drill rig was not able to survey due to the lack of stainless steel rods.
 Diamond drill core sample lengths were measured and recorded after logging in order to calculate core recovery. Core recovery averaged 88% through all rock types and types of ground. In instances where recovery through mineralized areas was below 70%, the hole was re‐drilled.
 All RC drill chip samples were weighed and recorded so as to determine that the recovery was within a satisfactory range compared to the expected 30 kg/metre. Two thirds of the recorded data has been entered into digital format. Drill chip recovery averaged 89% through all rock types and types of ground.
 Recording of core sample lengths against drill metres and RC drill chip samples against expected weight is well documented and records are available in a verified database and hard copy format. RC

3

Criteria JORC Code explanation Commentary

chips sample recovery has never been a problem in Jibal Qutman due to the competent ultramafic lithologies, abundant quartz veins and relatively thin overburden.

 Whether a relationship exists between sample recovery and grade and whether sample bias may have occurred due to preferential loss/gain of fine/coarse material.

 In house statistical studies did not reveal any issues of bias when reviewing sample recovery against grade with the Pearson correlation coefficient being ‐0.013 for all samples; demonstrating no or negligible relationship between recovery and grade.

Logging Whether core and chip samples have been geologically and geotechnically logged to a level of detail to support appropriate Mineral Resource estimation, mining studies and metallurgical studies.

 Whether logging is qualitative or quantitative in nature. Core (or costean, channel, etc) photography.

 The total length and percentage of the relevant intersections logged.

 Diamond drill core was logged for lithology, structure, texture, mineralization, alteration type, colour and weathering intensity and sulphide occurrence, by geologists with experience in orogenic‐style quartz‐vein‐hosted gold deposits. Core was photographed in the trays at the sample storage facility and half the core retained during the sampling process for reference.
 RC drill chips were logged for lithology, alteration and mineralization type and a small sample kept from each metre in plastic chip trays as a logging record.
 All trenches were logged were logged by geologists for lithology, structure, texture, mineralization, alteration type, colour, weathering intensity and sulphide occurrence. Trench walls (showing sampling intervals and sample bags), were photographed for all trenches.
 All sample intervals returned from drilling activities, including water‐

well drilling, were logged and sampled.

 KEFI has drilled 30,003 m of reverse circulation, 5,843 m of diamond and trenched 21,055 m. All drill core and chips as well as trenches

4

Criteria JORC Code explanation Commentary

were logged.

Sub‐sampling techniques and sample preparation

 If core, whether cut or sawn and whether quarter, half or all core taken.

 If non‐core, whether riffled, tube sampled, rotary split, etc and whether sampled wet or dry.

 For all sample types, the nature, quality and appropriateness of the sample preparation technique.

 Drill core was split with core saws and half was submitted for sample prep and assay.
 Drill core from metallurgy programs was sampled as whole core through mineralized intervals, and analysed at 1 metre intervals (head assays). Samples where then composited to provide a minimum of 100kg of sample for each one of the four zones to run 4 separated column leach test works. A total of 11 metallurgy holes were drilled in South Zone, Main Zone, West Zone and 3K Hill.
 RC chips were riffle‐sampled at the drill site post drilling. For wet sample a pipe is passed through the material to collect an even distribution of material. The pipe is accurately cleaned after each sample collection. Blanks are used near mineralised intervals to detect possible contamination both in the lab and during sampling. And sample repeats are taken over specific mineralised intervals.
 Sample preparation was carried out at the reference lab (Al Amri Lab or ALS Lab).
 Pulps for every batch, randomly selected in mineralised intervals and containing >0.2g/t Au, were periodically retrieved from AL Amri Lab and re‐assayed at ALS Lab for cross check purposes. To date a total of 9.6% of mineralised pulps were re‐assayed. Since November 2014 all samples have been processed at the ALS Lab due to faster turnaround times.
 Diamond drill half‐core from all 77 holes have been retained in a secure sample storage facility (core shed, Bisha field office). Sample bags are kept in the field until the first round of assays is received. When results are received, 3 m or 2 m composite samples showing gold results above 0.2g/t are re‐sampled metre by metre. The new samples are given the same sequential number as the original sample, but with a letter suffix (A, B and C) to designate each

5

Criteria JORC Code explanation Commentary

individual metre of the composite re‐assayed sample.

 Rejects of each RC sample are stored at the Al Amri lab and/or ALS Lab, for two years. Pulps of the same samples are retrieved and stored at G&M facility in Jeddah (Villa No: 14, Khawlah Bint Al Azwar Street (112), Al Shate'e District / 3, N35W20 Sector, Jeddah, Kingdom of Saudi Arabia)

 Quality control procedures adopted for all sub‐sampling stages to maximize representivity of samples.

 Sample sizes are industry standard for the type of rock and mineralization being sampled.
 A total of 1 certified reference material (CRM) and 1 blank sample (a local, post mineralisation, quartz pegmatite) was inserted into the sample stream at a rate of 1 per hole or trench. Following a 2014 review of operating procedures, standards were inserted every 30 samples and a blank every 60 samples.

Quality of

assay data and laboratory

tests

 Measures taken to ensure that the sampling is representative of the in situ material collected, including for instance results for field duplicate/second‐ half sampling.

 Whether sample sizes are appropriate to the grain size of the material being sampled.

 The nature, quality and appropriateness of the assaying and laboratory procedures used and whether the technique is considered partial or total.

 For geophysical tools, spectrometres, handheld XRF instruments, etc, the parametres used in determining the analysis including instrument make and model, reading times, calibrations factors applied and their derivation, etc.

 Nature of quality control procedures adopted (e.g. standards, blanks,

6

 KEFI Mineral Plc resource department staff has reviewed the QAQC results for standards, duplicates and blanks and considers the precision and accuracy acceptable for this style of deposit.
 Sample pulps from the Al Amri Lab processing facility are collected and stored at a G&M Jeddah storage facility.
 Assaying and laboratory procedures are industry standard, well documented and supervised.
 Analysis of assays was carried out at a certified laboratory:

AL Amri Lab, certified ISO 9001:2000 (IQC and EQC)

ALS Lab, certified SASO/ISO 17025, ISO/IEC 17025:2005, ISO/IEC

17025:2005

 No such tools were used.
 QAQC samples are inserted into the assay batches at a rate of 7%.