10 September 2013?????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????? AIM:AMA / TSX:AMZ

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Amara Mining plc

??("Amara" or "the Company")

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H1/Q2 2013 RESULTS

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Amara Mining plc, the dual AIM and TSX-listed West African focused gold mining company, is pleased to announce its results for the quarter ended 30 June 2013 ("Q2 2013").

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HIGHLIGHTS

Operational

?????????? Feasibility Study ("FS") for Baomahun Gold Project ("Baomahun") delivered confirming robust financial returns with further optimisation work expected to be completed in Q4 2013

?????????? Integration of Sega Gold Project ("Sega") in progress following receipt of Mining Licence - project is now fully permitted

?????????? Sega mine plan re-optimised at a gold price of US$1,100 per ounce to generate strong cash flow in the near term - blast hole drilling has commenced and production is on track to begin in Q3 2013

?????????? Metallurgical results from Yaoure Gold Project ("Yaoure") confirm simple, non-refractory nature of mineralisation and identify three potential processing routes - further resource update and Preliminary Economic Assessment ("PEA") expected in Q4 2013

?????????? Gold production from Kalsaka Gold Mine ("Kalsaka") of 9,933 ounces, 5% increase on Q1 2013

?????????? Production guidance for 2013 of 50-60,000 ounces is maintained

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Financial

?????????? Significant cost cutting measures and operating efficiencies implemented including:

o?? Rationalising of workforce - targeting a 25% decrease in headcount with an annualised saving of over US$1.5 million by year end compared to 31 December 2012

o?? Total package cuts for Board and senior/middle management with an annualised saving of over US$650,000

o?? Further savings targeted to reduce annual G&A cash costs by 25% compared to FY2012

o?? Drilling programme completed - exploration focused on low cost target generation work only

?????????? Cash and liquid assets of US$18.1 million at 30 June 2013 - significant investment made in Sega integration, Baomahun FS and Yaoure exploration during the quarter

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	Q2 2013	Q1 2013	H1 2013	???????????? H1 2012
Kalsaka
Total Gold Production (oz)	9,933	9,481	19,414	27,695
Total Gold Sold (oz)	5,870	8,644	14,514	27,699
Cash Costs inc. Royalties (US$/oz produced)	1,493	1,215	1,357	1,038
Average Realised Gold Price (US$/oz sold)	1,370	1,618	1,518	1,650
Group
Revenue (US$'000)	8,066	13,990	22,056	47,529
Gross profit	1,930	1,793	3,723	16,129
EBITDA (US$'000)	(3,218)	1,251	(1,967)	11,502
Adjusted EPS* (cents)	(1.25)	(1.68)	(2.94)	0.49

*For Q2 2013 and H1 2013, exploration in 100%-owned subsidiary written back (100%) and mine development impairment written back by 78% (Amara's ownership of Kalsaka)

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Peter Spivey, Chief Executive Officer of Amara, commented:

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"In challenging market conditions it is easy to lose sight of the bigger picture.?? At the halfway point in the year, Amara has delivered two of its three objectives for 2013, with the completion of the Baomahun Feasibility Study and updated Mineral Resource at Yaoure, and we are well on track to successfully integrate Kalsaka and Sega in Q3.?? We have also implemented measures to enhance efficiency and reduce costs across the Company, examining every aspect of our business from Board salaries to transport costs at site.?? The re-optimisation of the Sega mine plan is an important step, generating stronger production and robust cash flow for Amara in the near term at a US$1,100 gold price.?? We are making strong progress towards our two further targets for H2, completing the optimisation work for a smaller pit and plant at Baomahun and delivering the PEA for Yaoure, and we maintain our full year production guidance.?? We remain well-positioned to deliver value for our shareholders."

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The Company will host an analyst conference call at 9:30am UK with a simultaneous webcast. ??Dial in details are as follows:

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Telephone number (toll free from UK):	0800 368 0649
Other parts of the world:	+44 (0) 203 059 8125
Passcode:	Amara

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To log into the webcast, which will be aired simultaneously, please go to the homepage of the Company's website: www.amaramining.com. The webcast will subsequently be available for playback on this link.

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A second conference call will be hosted at 9:30am EDT/2:30pm UK time for North American analysts.?? Dial-in details are as follows:

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Canada	1866 404 5783
USA	1866 928 7517
Other parts of the world	+44 (0)203 139 4830
Participant PIN Code:	30467606#

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For more information please contact:

Amara Mining plc John McGloin, Chairman Peter Spivey, Chief Executive Officer Pete Gardner, Finance Director Katharine Sutton, Head of Investor Relations ??	+44 (0)20 7398 1420
Canaccord Genuity Limited (Nominated Adviser & Broker, London) Andrew Chubb Joe Weaving Tim Redfern ??	+44 (0)20 7523 8000
Bell Pottinger - Pelham (Financial Public Relations) Charlie Vivian James Macfarlane ??	+44 (0)20 7861 3232

OPERATIONAL REVIEW

Overview

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At the start of 2013, Amara outlined three key objectives for the year:

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?????????? Delivery of a Mineral Resource update for Yaoure

?????????? Completion of the Feasibility Study ("FS") for Baomahun

?????????? Successful integration of Sega with Kalsaka

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The first two of these targets were achieved during H1 2013 and the integration of Kalsaka and Sega is progressing well, with the Mining Licence received during the second quarter.?? The project is now fully permitted, significantly de-risking its delivery, and blast hole drilling has begun with mining expected to commence shortly.?? In response to the challenging market environment, Amara has adopted a lower risk operational approach, re-optimising the Sega mine plan to allow higher grade material to be processed earlier in the mine life.?? This is expected to ensure stronger production and robust cash flow in the near term and it is also anticipated to have a positive impact on cash costs.?? Total cash costs (including royalties and refining) are expected to be approximately US$700 per ounce, generating a healthy cash margin to advance the wider business.

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The FS for Baomahun confirms the economic viability of the project, delivering a strong Internal Rate of Return ("IRR") of 22% and a Net Present Value ("NPV") of US$127 million at a gold price of US$1,350 and a discount rate of 8%.?? It envisages annual production in years 1-6 of 148,550 ounces at an average head grade of 2.53g/t.?? The maiden Mineral Reserves of 1.2 million ounces (23.3Mt at 1.62g/t) support an open pit operation with an initial 11.5 year life of mine, with average annual production of 94,360 ounces and total cash costs of US$799 per ounce (including royalties and refining).?? The FS generated three optimisation opportunities, which include a smaller pit and plant, an underground mine and hydro-electric power, and work is underway to explore them.?? Amara expects to receive the results of the key near term opportunity, the study on the smaller pit and plant, by the end of Q4 2013.

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Following the Mineral Resource update at Yaoure in Q1 2013 of 1.7 million ounces Inferred (34.6Mt at 1.52g/t) and 0.3 million ounces Indicated (8.0Mt at 1.31g/t)[i], work continues to define Yaoure's value, with metallurgical results and further drilling results received during the quarter.?? Testwork has confirmed that the project's mineralisation is simple, non-refractory and amenable to three potential processing routes: whole ore leaching through traditional carbon-in-leach ("CIL")/carbon-in-pulp ("CIP"), froth flotation and heap leach.?? Work is on-going to refine each of these processing methods in advance of the release of the PEA in Q4 2013.?? In-fill drilling at the project was also completed during H1 2013, generating further encouraging results.?? A second Mineral Resource update for Yaoure is expected in Q4 2013, which we anticipate will further demonstrate Yaoure's importance in Amara's portfolio.

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Alongside the re-optimised Sega mine plan, which will increase near term profitability, Amara has implemented a substantial cost saving programme in response to the weaker gold price.?? The 2013 drilling programme has now been completed at all of the Company's assets, with only low cost target generation work on-going.?? The Company is targeting a 25% reduction in headcount between the 2012 year end and the 2013 year end, with a substantial number of redundancies already implemented across its operations and London head office, which is expected to generate an annualised saving in excess of US$1.5 million.?? In addition, the Board has accepted 15% salary cuts, with sliding scale cuts for senior/middle management, equating to an annualised saving of US$650,000, giving a total annualised saving of over US$2.1 million.?? Further cuts are also targeted in G&A expenditure to deliver a 25% saving compared to FY2012.?? Amara's strategy is to solidify its financial position and ensure the optimal use of cash flow.??

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The Company's current cash position and continuous cash generation in Burkina Faso is expected to allow it to achieve the following three objectives in H2 2013:

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?????????? Complete the successful integration of Kalsaka and Sega in Q3 2013

?????????? Deliver a further Mineral Resource update and PEA for Yaoure in Q4 2013

?????????? Complete the work on the smaller pit/plant optimisation opportunity generated by the Baomahun FS in Q4 2013

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Amara believes it will achieve the lower end of its full year production guidance (50,000-60,000 ounces), assisted by the higher grade material from Sega as it becomes available.??

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Baomahun, Sierra Leone

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Feasibility Study

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Baomahun forms a key part of Amara's near term growth and is expected to be a significant value driver for the Company.?? On 2 July 2013, Amara announced the results of the FS for the project, which confirmed that Baomahun is robust and economically viable[ii].?? At a US$1,350 per ounce gold price and an 8% discount rate, the project generates a post-tax 22% IRR and a post-tax NPV of US$127 million.

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A maiden Probable Mineral Reserve was defined for Baomahun of 1.21Moz (23.3Mt at 1.62g/t) at a gold price of US$1,100 per ounce.?? The Mineral Reserves support an open pit operation with an average annual throughput of 2 Million tonnes per annum ("Mtpa") of ore through a CIL plant over an 11.5 year production life.?? Gold production in the first year is expected to be 203,970 ounces at an average grade of 3.90g/t, generating strong cash flow through the mining of the orebody's high grade core.?? Average annual production over the first six years is expected to be 148,550 ounces at an average grade of 2.53g/t.?? Total cash costs (including royalties and refining) over the life of mine are forecast to be US$799 per ounce using an owner-operator scenario, with total cash costs in year one of US$582 per ounce.

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The key technical, operational and financial parameters of the FS are summarised in the following table:

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Parameter	Unit	??
Ore mined	Mt	23.3
Average head grade mined	g/t	1.62
Waste mined (including pre-strip)	Mt	192.0
Strip ratio	waste:ore	8.25:1
Contained gold	Moz	1.21
Average gold recovery rate	%	93.4
Annual production y1	ounces	203,970
Annual production y2-6	ounces	137,460
Annual production y1-6	ounces	148,550
Annual production over LOM	ounces	94,360
Open pit mine life	years	11.5
Upfront capital cost	US$ million	151
Capital payback period	years	3
Total cash costs (including royalties)	US$/oz	799

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The upfront capital cost for the project is US$151 million, with a further US$86 million for the mining fleet and power generation plant, which could be deferred by leasing these items.?? The total pre-production capital cost is US$253 million including contingency, and the payback period for this amount is three years.

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Optimisation Opportunities

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The FS generated three recommendations for optimisation, which are expected to have a positive impact on capital intensity, initial capital outlay and the payback period for Baomahun.?? Amara believes that there is an opportunity to improve Baomahun's robust economics and work has already begun to explore these optimisation scenarios.??

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The key recommendation was the opportunity to substantially reduce the upfront capex requirement for Baomahun through a smaller open pit and processing plant.?? This scenario would allow higher average grade ore to be processed through a more capital efficient plant.?? The results from the initial whittle shells suggest that this would still generate robust production from Baomahun's high grade core and maintain a swift payback period. ??It is anticipated that this would increase the return on capital for shareholders and have a positive impact on the project's NPV.?? The work on this near-term optimisation scenario is anticipated to be completed in Q4 2013.

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The FS also generated two longer term optimisation opportunities, which are as follows:

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?????????? Assess the economics of the underground opportunity - Snowden Mining Industry Consultants Pty Limited have completed an initial evaluation concluding that the Baomahun mineralisation is well suited to underground mining via open stoping due to the steeply dipping nature and reasonable along strike continuity of the ore body at depth.?? A significant proportion of the project's Mineral Resources are potentially amenable to underground mining techniques with 0.43Moz Indicated (3.5Mt at 3.80g/t) and 0.41Moz inferred (3.2Moz at 3.95g/t) included within the published Mineral Resources.?? Gaining a more thorough understanding of the underground opportunity is important to ensure the delivery of the full value of the asset, and a full underground PEA will be completed once the evaluation of a smaller plant is delivered

?????????? Further develop the plans for a hydro-electric power scheme - a feasibility-level engineering study has been completed by Knight Piesold in Vancouver for a 24 MW run-of-river hydro-electric power ("HEP") plant and discussions are on-going with the Sierra Leone Government with regards to progressing its financing and development.?? The resulting power costs, estimated at between US$0.05/kWh and US$0.10/kWh, would represent a significant reduction compared to the current cost of heavy fuel oil power generation estimated at US$0.23/kWh.?? Amara expects that this could reduce operating cash costs by approximately US$50 per ounce

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Exploration

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Drilling ceased at Baomahun at the end of Q1 2013 as all significant targets within the Baomahun resource area had been tested.?? Expenditure at Baomahun in Q2 2013 was US$1.9 million, which was incurred through work on the FS, low-cost target generation techniques such as surface sampling and trenching along the belt, and footprint costs, which include the cost of the camp, offices and maintaining Amara's mining licence and exploration permit.?? Expenditure in H2 2013 at the project is expected to be significantly reduced as work continues on the optimisation opportunities generated by the FS.

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Yaoure, C??te d'Ivoire

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Yaoure forms Amara's medium term growth and its location substantially reduces the hurdle rate for development.?? In comparison to other exploration and development projects in the region, Yaoure has excellent existing infrastructure, such as close proximity to the Kossou Barrage which offers the potential for lower operating and capital costs through the utilisation of hydro-electric power, and an abundant water supply.?? It also benefits from good quality roads and accommodation, as well as an existing environmental permit and no major relocation requirements, which is expected to reduce the timeline from exploration to production.

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Metallurgy

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Following the announcement of a Mineral Resource update for Yaoure in Q1 2013 of 1.7 million ounces Inferred (34.6Mt at 1.52g/t) and 0.3 million ounces Indicated (8.0Mt at 1.31g/t), Amara conducted a metallurgical testwork programme at Yaoure to understand the leaching kinetics of the mineralised material.?? The first phase reported a recovery rate through a traditional CIL circuit of over 90%, confirming the non-refractory nature of the gold mineralisation.??

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The aim of the second phase was to identify the optimal processing route for the material, which included comminution testwork together with an analysis of the amenability of the material to heavy medium separation, gravity and flotation.?? Three potential processing options were identified:

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?????????? Whole ore leach through traditional CIL/CIP - the material demonstrated a recovery rate of 91% through CIP with 80% of the material passing at a grind size of 75 microns. This is assisted by the Bond Ball Work Index for the material, which gave a value of 13.9kWh/t

?????????? Froth flotation - preliminary float tests produced a recovery rate of 89% with a mass pull of 1.4%.?? The further post-flotation intensive leach recovered 91.6% of the gold in flotation concentrate, resulting in an overall gold recovery of 81.4%

?????????? Heap leach - The material was found to have a recovery range of 60-73%, which is in line with similar heap leach recoveries from other sulphide orebodies.?? The capex/opex for a heap leach plant is expected to be significantly lower than for a CIL/CIP or flotation plant, although at the expense of lower recovery

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Each route offers strong benefits, however there is a trade-off between the expected recovery rate and lower capex/opex.?? The ultimate processing method will also be chosen taking into account the availability of HEP and the positive impact that this will have on Yaoure's overall economics.

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Amara has begun work to further refine each processing method in advance of the release of the PEA for Yaoure, which is expected in Q4 2013.?? The Company will test the use of different reagents to influence recoveries and explore grind size further.?? The phase two testwork suggested that a coarser grind is not appropriate for Yaoure as it sacrifices recoveries significantly. However, as coarser grinding has associated power cost savings, Amara will evaluate it further.

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In terms of the flotation route, the Company will conduct testwork that explores regrinding the float and gravity concentrate as this is expected to improve recoveries.?? In addition, Amara will test the amenability of lower grade material to each processing route, as the anticipated head grade of the Yaoure material is moderate at 1.3-1.5g/t[iii], which is slightly lower than the average grade of the ore tested in the first two phases of the testwork.

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This testwork is expected to be completed during H2 2013 and the results will further contribute towards the basis of the PEA.

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Exploration

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Following the delineation of the updated Mineral Resource at Yaoure, which was announced on 25 March 2013, Amara undertook an in-fill diamond drilling campaign to reduce the drill spacing which has now been completed.?? This drilling programme focused on promoting the mineralisation lying outside the currently defined Inferred Mineral Resource envelope, which covers 40% of the total mineralised volume drilled to date.

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The results of the first 29 holes of the in-fill drilling campaign were announced on 22 May 2013[iv] and the remaining 15 holes were announced on 16 July 2013[v]. ??Significant intercepts included:

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?????????? 14.0m at 3.8g/t from 203.0m in hole YDD0152

?????????? 2.0m at 25.5g/t from 64.0m and 10.0m at 5.8g/t from 317.0m in hole YDD0153

?????????? 4.0m at 13.4g/t from 82.6m in hole YDD0154

?????????? 8.0m at 4.7 g/t from 178.0m in hole YDD0155

?????????? 11.0m at 3.8g/t from 156.0m in hole YDD0157

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A further Mineral Resource update for Yaoure is expected in Q4 2013.?? However in light of the current market conditions, Amara believes that it is in the best interest of shareholders to focus on a smaller portion of the mineralised envelope at this time and conserve its cash position.?? Accordingly, the Company chose not to drill some of the planned deeper holes that form part of the overall exploration target defined to date and has focused exploration on the portion of the orebody that is expected to be converted into a Mineral Reserve in due course.

Expenditure at Yaoure in Q2 2013 was US$3.7 million, which includes the exploration campaign and footprint costs.?? The project has now entered a more evaluative phase, so expenditure will reduce significantly in H2 2013 as Amara's focus shifts to delivering the resource update and PEA.?? This coincides with management's decision to curtail exploration expenditure across its assets as part of its cost efficiency programme.??

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Kalsaka/Sega Gold Mine, Burkina Faso

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Sega

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Kalsaka/Sega is Amara's cash engine.?? During Q2 2013 the mine plan for Sega was re-optimised at a gold price of US$1,100 per ounce in response to the weaker spot gold price.?? The re-optimised plan is expected to ensure that Sega generates robust cash flow in the near term as it allows higher grade material to be processed in the first few months of the mine life with an average head grade of 2.41g/t, strengthening production and reducing cash costs.??

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Cash costs are anticipated to be significantly lower than the costs outlined in the PEA[vi], dated 16 October 2012, with total cash costs of US$700 per ounce (including royalties and refining) generating a strong cash margin at the current spot gold price, compared to US$911 per ounce in the PEA.?? Although the re-optimisation will have an impact on the project's mine life, Amara is focused on maintaining a solid financial position during the current difficult market conditions.

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Sega is fully permitted, following the receipt of the Mining Licence and Environmental Permit in Q2 2013, which de-risks the integration of Kalsaka and Sega.?? The construction process for Sega is progressing well, with many critical path items now complete:

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Critical path item	Status
Re-optimisation of Sega mine plan	Completed - delivers 1.5Mt of material at an average grade of 2.41g/t to produce a total of 97,700oz of gold at a total cash cost of US$700/oz including royalties.?? Based on this re-optimisation, production is expected to continue until the end of 2014. ??
Phase 2 upgrade to Kalsaka crushing circuit	Largely complete - the crushing circuit is being upgraded to crush 133kt/month to 12.5mm, which is the optimal crush size for the Sega material.?? Crushing will commence as soon as the material from Sega is available, the final stages of the crusher upgrade will not delay the commencement of stacking. ??
Haul road construction	Construction is progressing well and is expected to be completed during October 2013.?? Trucking will be able to begin as soon as material is available using a combination of the dedicated haul road and a small portion of the public road.?? The wet season in Burkina Faso assisted with construction as water is needed to achieve optimal compaction and as a result of the rain, the water truck was not required, generating a small saving.?? ??
Installation of Sega crusher and associated infrastructure	On-going - initial Sega material is expected to be hauled run-of mine, with the commissioning of the crushing circuit expected to be completed by mid-October to ensure that the harder material can be crushed prior to haulage.?? This will not delay the trucking of the Sega material from late September. ??
Resettlement Action Plan ("RAP") implementation	Negotiations with individual landowners are on-going with Government support.?? The mining schedule has been designed to ensure the highest grades areas are exploited first and the area of highest social impact is brought in later, allowing Amara the time to complete the implementation of the RAP for this area ahead of commencing mining there in 2014.?? The RAP process has been completed for the highest grade Tiba pits, which are scheduled to be mined first. ??
Move mining fleet from Kalsaka to Sega	Completed - The mining fleet has been mobilised to Sega and support infrastructure is being established on site by contractors to ensure mining can commence without delay. ??
Commencement of mining	Expected within the coming days - the area has been cleared and blast hole drilling began on 5 September 2013.?? Mining is anticipated to begin imminently. ??

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Given the advanced nature of the construction process, mining is expected to commence at Sega during Q3 2013 as planned.?? This will allow Amara to maintain its status as a producer, generating cash flow to underpin the Company's near term growth plans.

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Kalsaka

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Production Statistics	Unit	Q2 2013	Q1 2013	Q2 2012	H1 2013	H1 2012
Ore mined	kt	358	293	434	651	953
Waste mined	kt	1,704	1,957	1,645	3,661	4,533
Total tonnage mined	kt	2,062	2,250	2,079	4,312	5,486
Strip ratio	w:o	4.76:1	6.68:1	3.80:1	5.62:1	4.76:1
Ore processed	kt	420	353	408	773	815
Average ore head grade	g/t	1.16	1.08	1.42	1.13	1.26
Gold production	oz	9,933	9,481	15,191	19,414	27,695
Gold sold	oz	5,870	8,644	14,478	14,514	27,699
Cash costs inc. royalties	US$/oz prod	1,493	1,215	1,009	1,357	1,038
Cash costs excl. royalties	US$/oz prod	1,447	1,167	961	1,310	986
Average realised gold price	US$/oz sold	1,370	1,618	1,608	1,518	1,650
EBITDA	US$m	(2.0)	3.1	9.1	1.1	17.0

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Amara experienced a challenging quarter due to the combined effect of Kalsaka reaching the end of its mine life and a weak spot gold price.?? Q2 2013 was marginally better than Q1 2013, as the Company forecast in the Q1 results, however the increase in production and head grade was not sufficient to counteract the impact of the lower average realised gold price.?? Most importantly, production guidance for 2013 is maintained at 50,000-60,000 ounces as Amara expects the material from Sega to deliver significantly higher gold flow in Q4 2013.?? The Company will continue to identify cost efficiencies to enhance the Company's profitability during the current weak market conditions.

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In H1 2013 Amara reacted swiftly to the weak spot gold price and re-optimised the mine plan for the remaining ore at Kalsaka.?? A higher cut-off grade was employed, reducing the volume of material to be mined and lowering costs.?? Amara's focus is on profitability rather than production at any cost and this is reflected in the re-optimised mine plan.?? In late 2012 and early 2013, when the spot gold price was higher, Amara made the proactive decision to delineate additional lower grade ounces at Kalsaka to provide a buffer in case the permitting process for Sega took longer than expected.?? However when the gold price fell, these ounces became uneconomic so Amara stopped mining and implemented aggressive cost control measures.??

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As a result of the re-optimised mine plan improvements in efficiency were recorded during the quarter, with a 22% increase in ore mined compared to Q1 2013 at a tighter strip ratio (29% decrease on Q1 2013).?? The new mine plan also had a positive impact on average ore head grade (7% increase on Q1 2013).?? Importantly, ore stacked increased by 19% compared to Q1 2013 as a result of greater ore availability and improvements in plant availability following the appointment of an experienced maintenance planner in May 2013.

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Overall, production in Q2 increased by only 5% compared to Q1, despite the 7% improvement in grade and 19% improvement in stacking rates.?? This reflects the nature of a heap leach operation, with improvements in ore stacked not immediately impacting production.?? In addition, due to the fact that the heaps are nearing completion with stacking on a second lift, a substantial amount of recoverable gold remains within the lower lifts that will be washed out through a combination of rains and higher pumping capacity in H2 2013.

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Mining concluded at Kalsaka in July 2013.?? Amara continues to process stockpiled material and at 30 June 2013, Amara had 158,000 tonnes of transitional ore on its stockpile.?? As a result of the upgrade to the Kalsaka crushing circuit in H1 2013, the crusher is able to process transitional ore and crush it to the optimal crush size for Kalsaka transitional ore of 25mm.?? The crushing of the Kalsaka transitional ore stockpile is expected to be completed by mid-September and stacking will then be focused on the new pads for the Sega material, ensuring there is no interruption to production.?? Due to the nature of a heap leach operation, it is anticipated that the Kalsaka heap leach pads will continue to produce gold for a minimum of six months after stacking concludes, providing a useful supplement to the gold produced from the Sega material.

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Cutting costs and enhancing efficiency at Kalsaka

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In parallel with the rest of Amara, the workforce at Kalsaka is being rationalised in order to reduce costs.?? Senior and middle management at the mine have also accepted reductions to their total packages.?? Amara is cultivating a cost saving culture throughout the Company, rather than just in its London head office, and several initiatives were suggested by employees at Kalsaka.??

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Amara also recognises the importance of enhancing efficiency at the same time as reducing costs, so alongside re-optimising the Kalsaka mine plan for the final months of the deposit's life, the following measures were taken:

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?????????? A further booster pump for the leach pads has been ordered and will be installed in early Q4 2013.?? It will be used to rinse areas leached with intermediate solution to purge any remaining gold from the heaps and reduce gold lock-up.?? Amara believes that some areas have not been rinsed thoroughly due to insufficient barren leach capacity, but this is expected to be rectified during the final quarter of the year

?????????? A new slag mill (a small crushing plant) was installed in the gold room in Q3 2012 to assist in recovering the residual gold in rejects from the gold smelting process. ??Since then Amara has recovered an additional 600 ounces of gold

?????????? Kalsaka's plant experienced a number of small breakdowns, resulting in interruptions to production, throughout 2012 and H1 2013.?? A new maintenance planner was recruited in May 2013.?? Since then, there has been a 5% increase in plant availability due to improved systems and practices, which has helped to deliver improved overall stacking rates

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Amara will continue to identify cost saving measures and efficiency initiatives in H2 2013 in order to further enhance the Company's profitability.

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Kalsaka/Sega exploration

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Low cost target generation work will continue at Sega in H2 2013, following work in H1 2013 to delineate additional ounces at Kalsaka and at Touli in Sega's Tiba permit. ??One RC rig (until early May) and one RAB rig (until late July) were operating at Kalsaka/Sega during Q2 2013 but both have now stopped. ??RAB drilling following soil sampling in Sega's Namasa permit has outlined several zones of gold mineralisation up to 1.6km long and up to 500m wide although no substantial work is planned to follow up on these targets in H2 2013 in order to conserve cash. ??Exploration expenditure at Kalsaka/Sega totalled US$2.0 million and it is expected to decrease in H2 2013.

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Corporate

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Annual General Meeting

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Amara held its 2013 Annual General Meeting on 5 June 2013.?? Following a presentation by the senior management team, all the resolutions proposed to shareholders were duly passed.

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Directors' Dealings

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As previously announced, the Executive Directors all acquired ordinary shares in the Company during H1 2013, buying throughout the period. Peter Hain, Non-Executive Director, also bought shares after the period end on 3 July 2013. ??

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Date	Director	Number of shares purchased	Purchase price per share	Total holding following purchase
07 January 2013	John McGloin	33,672	18,684 at 60.00p 14,988 at 58.50p	33,672 shares
07 January 2013	Pete Gardner ??	27,109	58.68p	68,289 shares
28 March 2013	John McGloin ??	48,494	30.75p	82,166 shares
10 April 2013	Peter Spivey ??	50,000	37.00p	100,000 shares
03 July 2013	Peter Hain ??	53,362	11.09p	53,362 shares
08 July 2013	John McGloin ??	201,899	9.85p	284,065 shares
08 July?? 2013	Pete Gardner ??	100,000	9.75p	168,289 shares

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Financial Report

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Group Financial Highlights

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US$000	Q2 2013	Q1 2013	Q2 2012	H1 2013	H1 2012
Revenue	8,066	13,990	23,924	22,056	47,529
Gross profit	1,930	1,793	9,994	3,723	16,129
EBITDA	(3,218)	1,251	6,192	(1,967)	11,502
(Loss)/profit before taxation	(13,467)	(3,021)	4,110	(16,488)	5,507
Adjusted (loss)/earnings per share (cents)*	(0.89)	(1.68)	1.19	(2.94)	0.49
Cash generated from/(used in) operating activities	1,214	(293)	1,569	921	7,648
Net change in cash and cash equivalents	(9,086)	(13,386)	(32,708)	(22,472)	(8,177)
Total cash and cash equivalents	9,121	18,186	20,298	9,121	20,298
Total cash plus bullion	18,104	23,737	24,270	18,104	24,270
Total capital expenditure	10,178	11,673	41,379	21,851	52,375

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*For Q2 2013 and H1 2013, exploration in 100%-owned subsidiary written back (100%) and mine development impairment written back by 78% (Amara's ownership of Kalsaka)

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During Q2 2013 the gold price was highly volatile, dropping from approximately US$1,600/oz in March to below US$1,200/oz in June.?? As a result, Amara chose to sell a limited amount of gold, representing only 59% of gold produced in the period, with a higher amount of bullion held in stock.?? This is reflected in the lower than usual revenue and cost of sales recognised in the income statement matched to a higher than usual valuation of stock.?? All support costs have been recognised in the income statement for the period.?? The Group's EBITDA and cash costs are measured on the basis of gold produced and therefore represent the full financial performance in the period.

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In response to the fall in the gold price, management has implemented a series of cost cutting and efficiency initiatives, as outlined above, focused on reducing the G&A costs of the Group by 25% by the start of 2014 compared to FY2012.?? Redundancies and salary reductions for staff are focused on delivering over US$2.1 million of savings per annum.?? Included within this cost cutting programme, the Board has accepted total package cuts of 15%, with sliding scale cuts for senior management and middle management, representing a saving of approximately US$650,000 per annum.?? In addition, corporate savings include reduced travel and staff benefits together with savings on contracts with key long term service providers.?? Amara has also effected a recruitment freeze except for the most crucial production roles and remains focused on maintaining a solid financial position.

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The majority of these cuts will be realised in Q3 2013 with some short term redundancy costs expected.?? Nonetheless, savings were realised in London in Q2 2013, compared to Q1 2013 and Q2 2012.?? Costs were approximately US$600,000 lower in Q2 2013 compared to Q1 2013, as a result of normal timing issues and the impact of initial cost saving exercises, and over US$1 million lower than in Q2 2012 due to a bonus paid to the previous chairman.?? Despite the ongoing cost cutting, Amara remains focused on delivering the H2 2013 goals including the integration of Sega, the Yaoure resource update and PEA, and the Baomahun optimisation results.

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Cash costs were high at Kalsaka during the quarter as the project approaches the end of its life prior to commencement of trucking at Sega.?? Low grades and high stripping rates in Q1 2013 fed through to high costs in Q2 2013 at a time when the gold price fell dramatically.?? Costs were also impacted by a US$1.5 million impairment recognised against the opening stockpile of transitional ore, which is included within cost of sales.?? As processing of this material got underway in Q2, the grades were discovered to be lower than originally forecast and the value of the stockpile was written-down accordingly.??

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The original mine plan for 2013 had relied on deeper parts of the ore body with high unit costs for mining as a result of difficult access, allied to new lower grade ore bodies such as ZR and Zoungwa, which had been delineated through exploration.?? These lower grade ore bodies are not economic at lower gold prices and, accordingly, mining ceased in these areas as the gold price fell.?? An impairment of US$2.8 million against exploration costs for the ZR pit previously transferred to mine development costs was recognised in Q2 2013 to reflect that this ore body will now not be mined.?? As a result of the changed mine plan, higher grade ore was mined and processed in Q2 2013, but this will not impact production fully until Q3 2013.?? With mining now ceased and production relying on previously mined stockpiled ore, Kalsaka is expected to be cash generative as working capital is released despite reported cash costs remaining high.

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All capital expenditure at Kalsaka in Q2 2013 relates to the Sega development and therefore there are no sustaining capital costs for Kalsaka.?? During Q2 2013 the estimate of the residual value of the Kalsaka plant was re-calculated to reflect the fact that much of the recent investment will only be utilised for Sega.?? This resulted in a re-estimation of depreciation for H1 2013 and a small negative depreciation charge in Q2 2013.?? All-in sustaining cash costs for Kalsaka, as defined by the World Gold Council, should include the corporate overhead of Amara.?? This would add a further US$126/oz to the cash costs for Kalsaka disclosed.?? Amara is updating its reporting to ensure that the 2013 full year accounts, and subsequent reports, are in full compliance with the new guidance.

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Despite the lower gold price environment, the Company's major growth prospects, Baomahun, Yaoure and Sega, are not subject to an impairment charge in Q2 2013.?? Due to the current plans to preserve cash, rather than follow up the exploration targets identified on the Sega licences, the Company has taken the decision to write-off all historical exploration costs incurred in Burkina Faso at Q2 2013 and a charge of US$8.5 million is recognised in the period.

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Exploration expenditure has been reduced across the Group, with all drilling activities effectively completed in H1 2013.?? Work in H2 2013 is expected to be focused on low cost target generation only, together with the completion of the PEA at Yaoure and optimisation work at Baomahun.?? All costs associated with the Group's exploration-only properties are capitalised and work to minimise the footprint costs during this period of low on-the-ground activity continues.

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During H1 2013 capital expenditure on tangible assets has focussed on Sega, with a total of US$5.4 million spent including the upgrade to the Kalsaka crushing circuit and development of leach pads for Sega material.?? A further US$7 million is estimated to be required to complete the project in full, of which US$ 1.8 million relating to the RAP for the Bakou/RZ pits is expected to be incurred in 2014 in preparation for mining in these areas.

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Most importantly, cash and liquid assets at the end of quarter totalled US$18.1 million including US$9.0 million of bullion that was subsequently sold for over US$9.8 million.?? There was an overall net cash outflow in Q2 2013 of US$5.6 million to fund the completion of the in-fill drilling programme at Yaoure, the Baomahun FS and the first tranche of Sega capex.?? Despite this, Amara's cash position remains robust and the Company is confident that the Sega ore body will begin to generate strong cashflow before the end of 2013.

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Amara is focused on maintaining a solid financial position through careful cash conservation, whilst successfully integrating Kalsaka and Sega in Q3 2013 to ensure cash flow continues to be generated in Burkina Faso.?? It also expects to deliver a second resource update and PEA for Yaoure in Q4 2013 to further define the value of the asset, and at Baomahun the Company will complete the work on the optimisation opportunities that were generated from the FS.

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This report includes certain "forward-looking information" within the meaning of applicable Canadian securities legislation.

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All statements other than statements of historical fact included in this report, including, without limitation, the positioning of the Company for future success, anticipated production at Kalsaka and cash flow from Kalsaka/Sega, expected grade of material processed from Sega, the finalisation of a fiscal stability agreement with the Sierra Leone Government, commencement of production at Baomahun, statements regarding the exploration, drilling results, delivery of the PEA for Yaoure, Kalsaka and Baomahun, the completion of the optimisation work for Baomahun, and future capital plans and objectives of Amara, are forward-looking information that involve various risks and uncertainties.?? There can be no assurance that such statements will prove to be accurate and actual results and future events could differ materially from those anticipated in such statements. Important factors that could cause actual results to differ materially from Amara's expectations include, among others, the Company's ability to delineate sufficient sulphide resources for the development of a CIL/CIP operation, risks related to international operations, the actual results of current exploration and drilling activities, changes in project parameters as plans continue to be refined as well as future price of gold. Although Amara has attempted to identify important factors that could cause actual results to differ materially, there may be other factors that cause results not to be as anticipated, estimated or intended. There can be no assurance that such statements will prove to be accurate as actual results and future events could differ materially from those anticipated in such statements. Accordingly, readers should not place undue reliance on forward-looking statements. Amara does not undertake to update any forward-looking statements that are included herein, except in accordance with applicable securities laws.

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Non IFRS Measures - EBITDA (Earnings Before Interest, Income Taxes, Depreciation and Amortization), cash cost per ounce and average realised gold price are financial measures used by many investors to compare mining companies on the basis of operating results, asset value and the ability to incur and service debt. EBITDA is used because Amara's net income alone does not give an accurate picture of its cash generating potential. Management believes that EBITDA is an important measure in evaluating the Company's financial performance, ability to fund future capital expenditures and repay any future project financing, and in determining whether to invest in Amara. Similarly, cash cost per ounce, pre-tax cash margin and average realised gold price are measures that are considered key measures by Amara in evaluating the Company's operating performance. However, EBITDA, cash cost per ounce and average realised gold price are not measures of financial performance, nor do they have a standardized meaning prescribed by IFRS, and may not be comparable to similar measures presented by other companies. Investors are cautioned that EBITDA should not be construed as an alternative to net income or loss determined in accordance with IFRS as an indicator of Amara's performance or to cash flows from operating, investing and financing activities of liquidity and cash flows. These measures have been described and presented in this document in order to provide shareholders and potential investors with additional information regarding the Company's operational performance, liquidity and its ability generate funds to finance its operations.

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Peter Brown is a "Qualified Person" within the definition of National Instrument 43-101 and has verified the data disclosed in this release, including sampling, analytical and test data underlying the information contained herein, and reviewed and approved the information contained within this announcement. Dr Brown (MIMMM) is the Group Exploration Manager.

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AMARA MINING plc

CONDENSED CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME

For the three and six months ended 30 June 2013 and 2012

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		3 months ended ??30 June ??2013		3 months ended ??30 June ??2012		6 months ended 30??June 2013		6 months ended 30 June 2012
	Notes	US$'000		US$'000		US$'000		US$'000
		Unaudited		Unaudited		Unaudited		Unaudited
Continuing operations
Revenue		8,066		23,924		22,056		47,529
Cost of sales		(6,136)		(13,930)		(18,333)		(31,400)
Gross profit		1,930		9,994		3,723		16,129
General and administrative expenses		(1,636)		(2,694)		(3,775)		(4,793)
Other operating costs		(2,162)		(2,870)		(4,191)		(5,493)
Impairment of mine development and associated property, plant and equipment costs		(2,777)		-		(2,777)		-
Impairment of deferred exploration and evaluation costs		(8,544)		-		(8,544)		-
Operating (loss)/profit		(13,189)		4,430		(15,564)		5,843
Investment income		100		60		134		94
Finance costs		(378)		(380)		(1,058)		(430)
(Loss)/profit before taxation		(13,467)		4,110		(16,488)		5,507
Income tax		(2)		(1,239)		50		(3,375)
(Loss)/profit for the period		(13,469)		2,871		(16,438)		2,132
Attributable to:
Equity holders of the parent company		(12,815)		1,924		(15,647)		726
Non-controlling interests		(654)		947		(791)		1,406
(Loss)/profit for the period		(13,469)		2,871		(16,438)		2,132
Total comprehensive income for the period		(13,469)		2,871		(16,438)		2,132
(Loss)/earnings per share
Basic (cents per share)	3	(7.62)		1.19		(9.31)		0.49
Diluted (cents per share)	3	(7.62)		1.18		(9.31)		0.49
								??

There were no other comprehensive income gains or losses during the periods presented.

AMARA MINING plc

CONDENSED consolidated statement of financial position

As at 30 June 2013 ??		?? As at ?????????????????? 30 June ??2013		As at 30??June 2012		As at 31 December 2012
	Notes	US$'000		US$'000		US$'000
		Unaudited		Unaudited		Audited
ASSETS
NON-CURRENT ASSETS
Intangible assets	4	127,456		111,733		120,113
Property, plant and equipment	5	25,115		21,287		24,382
Total non-current assets		152,571		133,020		144,495
CURRENT ASSETS
Inventories	6	26,632		17,734		18,618
Other receivables		5,730		12,514		6,109
Cash and cash equivalents		9,121		20,298		31,810
Total current assets		41,483		50,546		56,537
TOTAL ASSETS		194,054		183,566		201,032
CAPITAL AND RESERVES
Share capital	7	2,951		2,950		2,951
Share premium		163,241		163,185		163,241
Merger reserve		15,107		15,107		15,107
Share option reserve		4,359		3,593		3,932
Currency translation reserve		987		987		987
Accumulated losses		(46,605)		(30,060)		(31,067)
TOTAL EQUITY ATTRIBUTABLE TO THE PARENT		140,040		155,762		155,151
Non-controlling interests		1,378		777		2,169
TOTAL EQUITY		141,418		156,539		157,320
NON-CURRENT LIABILITIES
Provisions		9,308		9,192		9,298
Deferred tax liability		44		293		94
Borrowings		3,283		-		9,828
Total non-current liabilities		12,635		9,485		19,220
CURRENT LIABILITIES
Trade and other payables		23,009		15,058		12,548
Corporation tax		572		2,484		2,196
Borrowings		16,420		-		9,748
Total current liabilities		40,001		17,542		24,492
TOTAL LIABILITIES		52,636		27,027		43,712
TOTAL EQUITY AND LIABILITIES		194,054		183,566		201,032