5 February 2014

Nyota Minerals Limited

(�Nyota� or �the Company�)

FINAL RESULTS FOR THE YEAR ENDED 30 JUNE 2013

Nyota Minerals Limited (ASX/AIM: NYO), the gold exploration company in East Africa, is pleased to report its Final Results for the Year Ended 30 June 2013.

HIGHLIGHTS

Tulu Kapi Gold Project

• Updated JORC-compliant Mineral Resource of 24.9Mt @ 2.34 g/t for 1.9Moz contained gold, comprising:
  • 14.6Mt @2.36 g/t for 1.1Moz contained Au in the Indicated category; and
  • 10.3Mt @ 2.30 g/t for 0.8Moz contained Au in the Inferred category.

• Feasibility Study for Tulu Kapi completed, including a maiden Ore Reserve of 16.9Mt @1.82 g/t for 1Moz in the Probable category;

• The Board subsequently determined that it was not viable for Nyota to solely finance and develop a mine as envisaged in the study given the financial returns offered by it and commenced the search for a partner;

• Subsequent to the end of the year, KEFI Minerals plc was identified as a partner for the optimisation and development of Tulu Kapi and the sale of a 75% interest in the project was completed on 30 December 2013 (� the Sale�);

• Nyota retains a 25% direct interest in Nyota Minerals (Ethiopia) Limited, the subsidiary which holds the Tulu Kapi and proximal exploration licences in Ethiopia, and a total beneficial interest in the project (taking into account its holding in KEFI shares) of approximately 34%;

Northern Blocks

• Further success at the exploration licences comprising the Northern Blocks and covering an area of just over 2,300km², with a new anomaly identified at Boka-West;

• Fieldwork will re-commence in early February 2014, focusing on the highest priority targets for subsequent drilling;

Corporate

• In February 2013 the Company agreed to issue 200,000,000 new ordinary shares to new institutional investors and existing shareholders to raise A$5.9 million (�4.0 million) (�the Placing�) and raised a further A$0.4 million through the issue of 12,470,000 to existing shareholders pursuant to a Share Purchase Plan (�SPP�) on the same terms;

• A cost review exercise was undertaken across all business areas in light of difficult funding conditions resulting in a significant headcount reduction, the consolidation of finance and administration functions in London and the termination of all drilling contracts;

• As a result of the Board�s decision to delay the development of Tulu Kapi and taking into account the consideration achieved for the sale of the 75% interest in Nyota Minerals (Ethiopia) Limited, an impairment charge of $49.4 million has been reflected against the carrying value of Tulu Kapi and Nyota�s other exploration assets;

• A strategic review exercise was commenced to evaluate the options available to the Board including the possibility of a strategic partner assisting with the development of Tulu Kapi.  This process resulted in the Sale, described above.

The full audited report and accounts, including the pictures and diagrams, the remuneration report and corporate governance statement are available on the Company�s website at http://www.nyotaminerals.com and the Annual Report will be posted to shareholders, as applicable, together with the notice of Annual General Meeting in due course.

For further information please visit www.nyotaminerals.com or contact:

CHAIRMAN�S STATEMENT

Dear Shareholders

Reflecting on the past eighteen months it is clear that there have been notable successes as well as considerable frustrations and challenges.

Tulu Kapi

Important milestones achieved in the year included a resource update in October 2012, a Feasibility Study and maiden Ore Reserve in December and the approval by the Ministry of Mines in meeting the requirements for a mining licence application.

Completing a full feasibility study from a standing start in twelve months is a very notable achievement. However, it is also reasonable to be critical of the study process: submitting a mining license application in May 2011, with its attendant project timetable and parameters, overrode a more methodical approach to the subsequent study. The shortcomings of this approach became apparent when the gold price and capital markets deteriorated 24 months later. 

Over the study period the gold price maintained a steady range of US$1,600 � 1,800 per ounce. This floor collapsed in January 2013, and since then the price has fallen by US$500 per ounce. A corresponding decline in the willingness of the capital markets to fund junior resource companies meant that all plans for new capital expenditure came under greater scrutiny.

It became clear that the Tulu Kapi project as it was conceived and based on the fiscal terms available at that time would not generate sufficient returns to enable project funding.  Although extremely constructive in their dialogue, the position of the Government of Ethiopia made it impossible for Nyota to sign a mine development agreement on terms that the Directors believed would lead to finance and development and therefore justified the relocation of project affected peoples.

Notwithstanding this, your Directors considered that the economics of the project could be improved and embarked on an optimisation programme. This incorporated inter alia reducing capital costs, increasing the average grade of the ore to be processed and the prospect of accessing the higher-grade Feeder Zone earlier. Recognising the potential to re-size and re-design the project, but accepting that it would likely take 12 to 18 months to revise the feasibility study, the Directors took the difficult decision mid-year to step-back from the mining licence application and received the approval of the Ministry of Mines to do so.

A second decision to carry out a strategic review was taken with the objective of finding a partner that shared the same vision for the Project and that had access to the resources to revise the study and ensure your Company was able to continue and to benefit from exposure to the upside. This ultimately led to the sale of 75% of Nyota Minerals (Ethiopia) (�NMEL�), which completed post the year end on 30 December 2013. The transaction with KEFI gives Nyota a 25% participating interest in Tulu Kapi plus a shareholding in KEFI; resulting in Nyota having an approximate 34% combined interest in the Project.  In addition your Company retains a 100% interest in the Northern Blocks. 

The Northern Blocks

The 2,300km² Northern Block licence area will become Nyota�s key exploration focus.

The compilation of three years� reconnaissance work and target follow-up has been completed and the intention is to re-start exploration early in 2014 so as to prioritise drill targets. The results to date have been favourable and I refer you to the relevant section of this Annual Report for more information.

Governance

The Board currently comprises five directors, of whom two are Australian residents as required by our place of incorporation, and one (the CEO) is an executive.

This year has seen the departure of David Pettman and Martyn Churchouse. Following the sale of 75% of NMEL to KEFI  the Company has become an exploration company rather than a potential developer and the range of skills, expertise and experience that it needs to call on from its board has narrowed and changed. Accordingly a further reduction in the size of the board is appropriate and necessary in the interests of reducing corporate overheads.   Norman Ling and I have agreed to stand down as directors at the Annual General Meeting.

I would like to take this opportunity to thank Norman, David and Martyn for their valuable contribution and support over the preceding years and wish them well in their future endeavours.

Of further note I would like to emphasise to shareholders that the social and environmental work undertaken by your Company at Tulu Kapi continued right up until the day the camp was placed on care and maintenance. And the intention is for Nyota Minerals (Ethiopia) to continue to support projects such as the seedling nursery, the secondary school and clean water sources that have been handed-over to the community.

The value of maintaining our social licence is not one that is reflected in the balance sheet of the Company but without it the project would become a liability rather than an asset. Our responsibility to report annually to the IFC, a continuing shareholder, will remain so long as they remain on our register and the Shareholder Agreement that governs the future management of the project by the new majority owner enshrines a commitment to continue best practice.

Corporate

Nyota raised �4 million from a placing of shares to existing shareholders and institutions and, via a Share Purchase Plan, to private shareholders.

These funds were applied to optimisation studies at Tulu Kapi, the feeder zone and general working capital until the end of September. The optimisation was aimed at demonstrating the potential for a higher-grade mine plan and addressing the gaps in the evidence used to support the resource model in the feasibility study. Ultimately this work was a major factor in attracting our new partner.

The large write down in the assets of the Company (Note 13 to the accounts) is an unpalatable but inevitable consequence of the value that has been placed on the Tulu Kapi project and is also a reflection of the changing market between acquisition and today. I wish to emphasise to shareholders that �sitting� on the Tulu Kapi project asset or having a retention licence issued by the Ministry of Mines were options never available to Nyota. In a scenario reminiscent of the �use it or lose it� approach it was imperative that we found a partner committed to quickly moving the project forward.

The objective now is to re-create shareholder value through exploration in Ethiopia and elsewhere whilst participating in the upside at Tulu Kapi.

The equity capital markets remain extremely challenging for junior resource companies and it would be unwise for me to make predictions about when that will change. Shareholders should therefore note the Directors' "Going Concern" statement in this Annual Report. 

Whilst the Company received �1.3 million in cash as part of the consideration for the sale of the 75% interest in the Project, it will need to raise additional funds in 2014 if it is to meet its financial obligations, maintain its 25% interest in Tulu Kapi and fund further exploration in the Northern Blocks.

Whilst overhead costs over the period under review have been sharply reduced, further cuts are being made to bring them into keeping with the new status of the Company. In addition to slimming down the size of the board, the Company�s London office will be relocated before the end of February 2014. The board will continue to review corporate overheads with the objective of reducing costs wherever possible without adversely impacting the Company's ability to generate and create shareholder value.

I am hopeful however, that the tumultuous events of the last six months and the resultant corporate changes will have laid the foundations for a brighter if still challenging 2014.

Neil Maclachlan

London

5 February 2014

OPERATIONS AND FINANCIAL REVIEW

The year to 30 June 2013 saw Nyota reach the milestone of completing the Feasibility Study (�FS�) for its flagship Tulu Kapi gold project.  The FS, announced in December 2012, showed a technically robust project but, with the capital markets remaining difficult for junior mining stocks, it became clear in early 2013 that the economic returns provided by the project as designed were not sufficient to allow immediate development.

Throughout the financial year Nyota was pro-active in engaging with the Ethiopian Government over the fiscal and legal terms that would apply to a large scale mining licence for Tulu Kapi (�Mining Licence�). Whilst a final draft of the mine development agreement was drawn-up, agreeing the fiscal terms proved more difficult; compounded by being the �first mover� for direct foreign investment in the sector.

In January 2013 significant progress had been made in the technical, social and environmental aspects of the project but it was proving unexpectedly difficult to bring together the two ingredients essential to proceed: the Mining Licence (with its rights but also its obligations; including resettlement of the project affected peoples) and support for project finance.

Following the equity fundraise in February 2013 significant further cuts were made to expenditure and a strategic review of the options available to the Company was undertaken whilst further optimisation, specifically with respect to the mining plan, was carried out.

At the Company�s year-end, although the Directors felt that significant progress had been made, the fiscal terms pertaining to the mining sector in Ethiopia had yet to be amended and with equity capital markets showing no sign of life, Nyota faced significant difficulties in retaining the right to Tulu Kapi whilst trying to find a new partner willing to inject further capital. In October 2013 it therefore chose to place the project on care and maintenance. 

On 30 December 2013 Nyota completed the sale of a 75% interest in Nyota Minerals (Ethiopia) Limited, the subsidiary which holds the Tulu Kapi and proximal exploration licences, to KEFI Minerals plc (�KEFI�).  The sale consideration was satisfied as to �1.3 million in cash and the issue of 107,081,158 ordinary shares in KEFI.

Tulu Kapi

Nyota�s focus in Financial Year 2013 was the Tulu Kapi gold project.  As a result of the sale of 75% of Nyota Minerals (Ethiopia) Limited to KEFI on 30 December 2013, Nyota  now holds a direct interest of 25% in Tulu Kapi and the proximal licences and has a total beneficial interest (direct and indirect) of approximately 34% taking into account its shareholding in KEFI Minerals.

Mineral Resource and Ore Reserve

Nyota declared an updated Mineral Resource at Tulu Kapi in October 2012, following the completion of an infill drilling programme aimed at converting 260,000 ounces of Inferred Resources to an Indicated status for the FS.  The new Mineral Resource was calculated using a new cut-off grade of 0.3g/t that reflected the indicative economic parameters used for the FS, which are detailed further below.

The total In-Situ Mineral Resource estimate (Indicated and Inferred) for Tulu Kapi was increased to 24.90 million tonnes @ 2.34g/t gold containing 1,872,000 ounces of gold using a cut-off grade of 0.3g/t gold, comprising;

• An upgrade and increase in the Indicated category of 33 per cent to 1,108,000 ounces of gold @ 2.36g/t gold; and
• An Inferred Resource of 764,000 ounces of gold @ 2.30g/t gold.
• The increase in Indicated Resource on a like-for-like basis, using the previous cut-off grade, was 30%, demonstrating the success of the infill drilling programme in achieving its objective.

Table 1 � Tulu Kapi Mineral Resource Estimate (In-Situ Resources)

Note:   Nyota holds a direct interest of 25% in the Tulu Kapi asset.  As of 30 December 2013, Tulu Kapi is operated by KEFI Minerals plc.

Table 2 � Tulu Kapi Mineral Resource Estimate (0.3m Dilution Skin Applied)

Note:   Nyota holds a direct interest of 25% in the Tulu Kapi asset.  As of 30 December 2013, Tulu Kapi is operated by KEFI Minerals plc.

Based on this new Mineral Resource, Nyota was able to announce a maiden Ore Reserve as part of the FS in December 2012, representing only those Indicated Mineral Resources that had been shown to be technically and economically viable, taking into account �Modifying Factors� as required by the JORC Code (2004). These modifying factors were the subject of the FS and included the mining methods and strategy, dilution and losses, geotechnical studies, hydrological studies and mine water management, infrastructure requirements, plant capacity, mineral recovery and costs and revenue factors (see Table 3).

Table 3 � Tulu Kapi Ore Reserve Estimate

Note:   Nyota holds a direct interest of 25% in the Tulu Kapi asset.  As of 30 December 2013, Tulu Kapi is operated by KEFI Minerals plc.

The high-grade Feeder Zone is one of several targets in the locale of the proposed Tulu Kapi open pit and is not included in the Resource and Reserve estimates, above.  The Feeder Zone was also not a component of the Tulu Kapi FS on the basis that the additional complexity of underground mining would not assist the negotiation and issue of a Mining Licence; power was expected to be limited and drilling the Feeder Zone is expensive. 

However, the Company was able to announce a successful Feeder Zone drill programme in January 2013, comprising 18 holes for 7,866 metre, demonstrating the potential for a significant high grade resource that would be developed via an underground mine.  Highlights of the drill programme included high grade intersections of 15.04g/t Au over 9.45m, 10.55g/t Au over 13.96m, 5.34g/t Au over 12.25m and 5.24g/t Au over 26m. 

An initial in-house Inferred Resource estimate of 1.1Mt at an average grade of 5.4g/t containing 188,000 ounces of gold was declared post the year end.

Feasibility Study

In December 2012, Nyota announced the results of its FS for the Tulu Kapi gold project. Using a gold price of US$1,500 per ounce, gross revenues were calculated to be US$1.4 billion leading to a net undiscounted pre-tax, post-royalty project cash flow of US$421 million.  The FS showed a base case pre-tax Net Present Value (�NPV�) of $253 million (using a real discount rate of 5%) and an Internal Rate of Return (�IRR�) of 24% based on the prevailing legislated fiscal regime.

The FS, which was based solely on an open pit, confirmed that annual gold production of 105,000 ounces of gold at an average grade of 1.82g/t, was achievable, equating to total gold production of 924,000oz over the proposed 10 year project life.

An initial capital cost of US$221 million reflected the Project�s location and the need to develop infrastructure, logistics and, at least for the purposes of the study, to purchase and operate the mining equipment rather than presuming the availability of an external mining contractor.  Nonetheless, the uncomplicated metallurgy and access to cheap power led the FS to conclude that Tulu Kapi would have a competitive operating cash costs before royalties of $600/oz.

Social & Environmental

A Social & Environmental Impact Assessment (�ESIA�) in accordance with Ethiopian law and IFC Performance Standards (2012) has been prepared to identify the social and environmental impacts of the Tulu Kapi project and associated mitigation measures. An accompanying Social and Environmental Management Plan was also prepared and to be dynamically implemented throughout the life of mine to ensure Nyota maintained its �social licence� to operate.

In January 2013, the Ethiopian Ministry of Mines completed its review of the FS, including the Environmental and Social Impact Assessment (�ESIA�), and confirmed in writing that it had complied with all regulations and had satisfied the requirements for the issuance of a large scale Mining Licence.

Feasibility Study Parameters

The key technical, operational and financial information is summarised in the table below:

Table 4 � Tulu Kapi key Feasibility Study parameters (excluding optimisation work)

Mining Licence and Tenure

In July 2012, Nyota submitted the technical elements of the FS to the Ethiopian Ministry of Mines (�MoM�) to support the application for a Mining Licence at Tulu Kapi.

In August 2012, the Minister for the Ministry of Mines (�Minister�) formed a committee to review the submissions made to date and stated a target for the issue of the Mining Licence by the end of September 2012.  Both Nyota and the MoM worked in good faith towards this target but capacity constraints within the MoM and the untimely death of the former Prime Minster made it impossible to achieve this timetable.  The proposed financial model for Tulu Kapi was submitted in December 2012 with a final copy of the FS.

In January 2013 the MoM confirmed that it had completed its review of the FS, including the social and environmental impact assessment (ESIA), and confirmed that the documents complied with all regulations and satisfied the requirements for the issuance of a large scale mining licence and that pending its issuance the Company's exploration licence remained valid.   

However, with the gold price falling materially and the capital markets moribund, it became clear that the economic returns from Tulu Kapi were not sufficient to support development and the Directors entered into a dialogue with the Government of Ethiopia to explore how best to optimise the Project.  Critical to this was the Ministry of Mines agreeing to a further phase of exploration and Nyota identifying a new partner willing and able to financially and technically support the necessary work programme.  This came together when Nyota announced a partner had been identified in October 2013 and the Ministry of Mines confirmed the renewal of the Tulu Kapi licence in November 2013.

Further, the House of People's Representatives passed an amendment to the Mining Income Tax Proclamation, subsequent to the end of the Financial Year, reducing income tax from 35% to 25% and had received an initial draft of proposed amendments to the Mining Proclamation, which includes a reduction in royalty on gold production from 8% to 7%. This progress in attracting direct foreign investment in the sector is obviously to be welcomed. 

The Future with KEFI

Satellite & Proximal

In the year under review Nyota focussed the majority of its geological team on the Tulu Kapi infill programme and the limited field work undertaken on Satellite & Proximal Targets was largely confined to completion of regional and target specific sampling programmes and to ensuring that the location of infrastructure and resettlement housing did not encroach on identifiable gold anomalies.

KEFI Minerals, the new majority shareholder and manager of the project, has stated that it does not consider the satellite and proximal exploration to be part of its core current activities but, provided that further renewals are granted by the Ethiopian Ministry of Mines, then a work programme agreed between it and Nyota will be undertaken to further assess the commercial prospectively of the targets as part of the overall development scenario

Tulu Kapi

As the gold price fell sharply, to around US$1,300 per ounce, and the capital markets for junior resource sector companies to raise project finance remained moribund, Nyota undertook optimisation studies on the Tulu Kapi project.

By optimising the scheduling of the open pit mine development, using sensible but aggressive stockpiling, Redden Mining Consulting ('Redden Mining'), Nyota's appointed mining engineering consultants, determined that it would  be possible to achieve a grade of more than 2 g/t delivered to the process plant in the first four to five years of production; improving early cash flow, investment returns and the net present value ('NPV') of the project.  Furthermore, by developing an underground mine during years three and four, so that it would contribute ore from the fifth year, as the grade of both direct feed and stock-piled ore declines, it is anticipated that gold production can be maintained between 70-80,000 ounces per year for the balance of the 10 year initial mine life.

The Board expects KEFI to build upon the optimisation work Nyota completed and to incorporate additional initiatives from its own highly experienced technical team.  An updated Mineral Resource statement is expected in the first calendar quarter of 2014 and further fieldwork contributing to an updated mining licence application in due course, thereafter.

THE NORTHERN BLOCKS

The Directors believe that the Northern Block exploration tenements hold long-term potential for the Company: the relevant exploration licences are three years old and therefore have good potential longevity, and prior to Nyota�s exploration work the Geological Survey of Ethiopia had identified four potential belts for primary gold and base metal mineralisation, but no commercial exploration had been undertaken.

The Northern Blocks differ from Tulu Kapi in that the topography is highly variable, with the south and central area being generally flat and cross-cut by broad rivers; the largest of which flow all year round. Vegetation is more typical of the African savannah and land use is far less intense. However, the abundance of alluvial soil and old river terraces makes metal exploration more complex and in the rainy season prevents fieldwork. The geology is dominated by meta-sediments and calc-silicates intruded by intermediate volcanics, giving rise to marble and skarn lithologies. More recent basalt lava flows blanket the bedrock in some places.

An airborne geophysical survey conducted by Nyota in October 2010 identified 47 anomalies. After concluding the first phase of exploration, 15 targets were prioritised (some comprising more than one of the anomalies). Statistics for this phase include:

• 883km² of detailed mapping
• 2,486 soil samples
• 1,357 rock channel samples (from trenches) and 869 rock chip samples
• 2282 stream sediment and heavy mineral concentrate samples

In addition, the Bendokoro prospect was drilled in the first half of calendar year 2012.

These 15 targets have been further prioritised based on the work completed to date and starting in 2014 Nyota intends to work systematically to progress half a dozen to drilling or abandonment.  Three of the targets that were worked on during the year are described below.

In accordance with the Mining proclamation, an application for the renewal of the Northern Block licences was made at the end of the initial three year tenure period; shortly after the end of the financial year. The initial combined area of the licences was 3,147km². This has been reduced by 25% for the renewal and each annual renewal hence forth will require a further 25% reduction in the licence area.

Bendokoro

In 2012 a first phase drilling at the Bendokoro prospect indicated limited economic potential, but the presence of visible coarse gold and low grade background gold mineralisation associated with quartz veins in felsic porphyry and meta-volcanic rocks led to further  soil sampling and mapping along the interpreted extensions of the northwest trending shear.

Two sub-parallel anomalous gold zones have been delineated, both approximately 1km long.

Boka West

The Boka West target was identified through a combination of artisanal workings, analysis of heavy mineral concentrate samples and rock chip sampling.

The gold-in-soil anomaly (defined by samples containing in excess of 0.02 g/t gold, with a peak of 0.39 g/t gold) extends for 2km in length and is up to 500m wide.  It is coincidental with anomalies for copper, zinc and bismuth.  Gold mineralisation is associated with meta-sedimentary rocks (including marble, quartzite and mixed quartz-sericite and quartz-chlorite schist) marginal to syn-to-post tectonic intrusives. 

Seven trenches were excavated over the central part of the anomaly and four returned significant gold intersections with peaks of 7.40m at 1.49g/t Au; 7.10m at 2.56g/t; 5.00m at 1.03 g/t Au; and 1.00m at 10.85g/t.  Further trenching and detailed mapping is required before drilling.

   Table 5 � Anomalous gold intersections from Boka-West trenches

Bar and Cloen

By virtue of their location, the Bar and Cloen targets are at an earlier stage of exploration than Boka West and Bendokoro and are the last of the target areas identified through remote sensing and the airborne geophysical survey to be evaluated.

Work on the Bar target area returned a high gold count in heavy mineral concentrate (6-12 grains), stream sediment samples (6-62 ppb Au) and rock chip samples (41-102 ppb Au). These positive samples are from a contact zone between carbonate and other meta-sedimentary rocks, and igneous intrusive rocks. An overlapping copper � lead � arsenic stream sediment anomaly supports the potential for significant mineralisation. Based on the favourable geological setting and geochemical analysis an anomalous gold area of approximately 8.6km² has been delineated for detailed follow-up.

The Cloen Target is predominantly underlain by meta-sedimentary rocks, acidic to intermediate schistose volcanic units, minor marble and meta-intrusive rocks. A cluster of high gold grain counts in heavy mineral concentrate and stream sediment samples is seen in the western part of the target. Rock-chip samples picked from a mineralised, schistose, acid volcanic unit returned values of up to 1g/t gold, with corresponding anomalism in copper (up to 0.45%), silver and zinc. The occurrence of an acid volcanic schist with disseminated sulphide, grading locally to massive sulphide, within multi-element anomalism and the presence of barite suggests possible volcangenic massive sulphide (VMS) mineralisation. Based on these encouraging results, a 23km² area has been delineated for detailed follow-up.

CORPORATE

Strategic Review

The Board announced in May 2013 that it had initiated a strategic review exercise to evaluate the options for realising value from its assets in the light of the difficult capital market situation.  The Company set-up an electronic data room and held discussions with a number of interested parties, including existing shareholders. 

On 30 December 2013, the Company completed the sale of a 75% interest in Nyota Minerals (Ethiopia) Limited, the subsidiary which holds the Tulu Kapi and proximal exploration licences in Ethiopia to KEFI Minerals plc (�KEFI�).  The sale consideration was satisfied as to �1.285 million in cash (being �1.0 million upon completion and �285,000 of working capital provided during the transaction) and the issue of 107,081,158 ordinary shares in KEFI.

Nyota has the right to maintain its 25% interest in Nyota Minerals (Ethiopia) by funding its pro-rata share of that company�s expenditure, or to be diluted accordingly. 

Financial Review

As at 30 June 2013, the Company had cash of $2.4m.  As a result of the cost reduction exercise undertaken in the year, and detailed further below, and the consideration received by Nyota from the KEFI transaction in cash and shares, the Directors have prepared these accounts on a Going Concern basis, subject to a matter of emphasis as detailed in note 1 (a) on page 54 of the Annual Report document.

Shareholders should note, however, that other than for the Going Concern basis and the Impairment (see below), the impact of the KEFI transaction upon the financial accounts of the Company is not reflected in the audited financial statements herein. That impact will be reflected in the interim accounts at 31 December 2013 and will include equity accounting for Nyota Minerals (Ethiopia) Limited.

Impairment

As a consequence of not progressing with the development of a mine at Tulu Kapi and the financial position of the Group at 30 June 2013, a significant impairment to the carrying value of the group�s exploration projects is included in the Financial Statements.  The rationale for and calculation of the impairment charge is explained in note 13 (a) to the accounts on page 82 of the Annual Report document.

Equity Fundraises in the Year

Having successfully raised �9.66 million in February 2012 (in the prior financial year) through the sale of new ordinary shares, Nyota received a further �1.3 million from the International Finance Corporation (�IFC�) in July 2012 in consideration for 21,727,650 new ordinary shares (�Ordinary Shares�) in the Company on the same terms as the earlier fundraise. The delay in participating was due to the IFC�s requisite approval process.

The aggregate funding received enabled Nyota to the complete the FS in twelve months, including a significant amount of drilling, all of the metallurgical test work and the environmental and social impact assessments described above.

However, in common with small cap exploration stocks in general, Nyota found the equity capital markets effectively closed in the second half of calendar year 2012 in London, Australia and Canada.

In February 2013 �4 million was raised through the placing of 200,000,000 new Ordinary Shares in two tranches, the second subject to shareholder approval at general meeting on 4 April 2013 (the �Placing�).  In addition, Nyota undertook a Share Purchase Plan to allow small shareholders to participate on the same terms as the Placing and received valid applications for 12,470,000 new Ordinary Shares, raising an additional �249,400 before expenses.

Restructuring & Cost Cutting

In January 2013, following confirmation from the Ministry of Mines that the technical, environmental and social components of the FS satisfied the requirements for the issuance of a Mining Licence for Tulu Kapi and the completion of the Feeder Zone drilling, Nyota announced the suspension of all drilling and, in light of the difficulty in raising funds in general, announced that assertive steps would be taken to reduce spending. 

By 30 June 2013, Nyota had:

• Reduced the size of the Board from 7 persons to 5 persons with the retirement from the Board of Mr. David Pettman and Mr. Martyn Churchouse in March 2013;
• Significantly reduced corporate overheads; and
• Reduced the number of expatriate and Ethiopian staff significantly. 

Subsequent to the end of the Financial Year, Mr Michael Langoulant stepped back to a non-executive position.  Day to day financial control rests with the CFO, Paul Wilson, with Mr Langoulant acting as Chairman of the Audit Committee.  He also remains the Company Secretary.

In addition, Directors' fees have been reduced by 50% and executive management has accepted cuts of 25% (average) effective from 1 August 2013.  As at 31 December 2013 Nyota employed 11 staff, reflecting the substantial reductions made and the impact of the KEFI transaction.     

Table 6 � Analysis of Employee Numbers

Note *: Following Completion of the Sale, 33 Ethiopian Nationals remain employed by Nyota Minerals (Ethiopia) Limited, which will no longer be consolidated into the results or position of Nyota.

Diversity statistics are included in the table on page 45 of the Annual Report document, within the Corporate Governance Statement.

Project Debt Finance

The Company commenced discussions with commercial banks and development finance institutions as early as the first quarter of calendar year 2012, with a site visit being undertaken during that period. Initial risk committee approval was obtained and mandates were agreed during the third quarter. However a decision was taken not to sign a mandate until such time as the feasibility study was complete and the terms of the mining licence agreed.  All potential project finance lenders were stood down in the first quarter of 2013.

Murumera Nickel Project � Burundi

Nyota acquired the Murumera nickel project in Burundi in 2007 and shortly thereafter entered into a joint venture agreement with BHP Billiton.  The joint venture was terminated in 2009 and Nyota has had limited success in attracting another joint venture party to commit the considerable resources required of such a large exploration project for sulphide nickel in a land locked country and perceptions are further damaged by the lack of commitment to the development of the feasibility-stage Kabanga Nickel project in neighbouring Tanzania, located on the same geological belt as Murumera.

With funds limited and no intention of continuing evaluation on its own, the Board decided not to renew the Murumera exploration licence and to close down its operations in Burundi.   Winding-up the related entities and ensuring an acceptable handover of the project area and the exploration camp has taken longer than initially anticipated but is now nearly complete.

Competent Person�s Statement

The information in this annual report that relates to exploration results for the Northern Block licences is based on information reviewed and approved by Richard Chase, Chief Executive Officer of Nyota and a Member of the Institute of Materials, Minerals and Mining and a Fellow of the Geological Society of London.  Mr Chase is a full time employee of the Company and has sufficient experience which is relevant to the style of mineralisation and type of deposit under consideration and to the activity which he is undertaking to qualify as a Competent Person as defined in the 2004 Edition of the �Australian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves� and as a qualified person under the AIM Note for Mining and Oil & Gas Companies.  Mr Chase consents to the inclusion in the announcement of the matters based on his information in the form and context in which it appears.

The information in this announcement that relates to Mineral Resources is the responsibility of Mark L Owen, BSc, MSc, CGeol, EurGeol, FGS, Technical Director for Geology and Resources.  Mr Owen is a full-time employee of Wardell Armstrong International, an independent Consultancy and has sufficient experience which is relevant to the style of mineralization and type of deposit under consideration, and to the type of activity which he is undertaking to qualify as a �Competent Person� as defined in the 2004 edition of the �Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves� and the AIM Note for Mining and Oil & Gas Companies. Mr Owen consents to the inclusion in the announcement of the matters based on his information in the form and context in which it appears and confirms that this information is accurate and not false or misleading.

The information in this announcement that relates to Ore Reserves is the responsibility of Peter Watkinson, BSc, CEng, MIMMM, FIQ, MMES, AIEMA, former Associate Director for Mining.  Mr Watkinson is a former part-time employee of Wardell Armstrong International, an independent Consultancy and has sufficient experience which is relevant to the style of mineralization and type of deposit under consideration, and to the type of activity which he is undertaking to qualify as a �Competent Person� as defined in the 2004 edition of the �Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves� and the AIM Note for Mining and Oil & Gas Companies. Mr Watkinson consents to the inclusion in the announcement of the matters based on his information in the form and context in which it appears and confirms that this information is accurate and not false or misleading.

The information relating to the Company�s past exploration results and reported resources was prepared and first disclosed under the JORC Code 2004. It has not been updated since to comply with the JORC Code 2012 on the basis that the information has not materially changed since it was last reported.

CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME

FOR THE YEAR ENDED 30 JUNE 2013

The financial statements are presented in Australian currency.

The above consolidated statement of comprehensive income should be read in conjunction with the full notes in the audited report and accounts available on the Company�s website: www.nyotaminerals.com.

CONSOLIDATED BALANCE SHEET

AS AT 30 JUNE 2013

The above consolidated balance sheet should be read in conjunction with the full notes in the audited report and accounts available on the Company�s website: www.nyotaminerals.com.

CONSOLIDATED STATEMENT OF CHANGES IN EQUITY

FOR THE YEAR ENDED 30 JUNE 2013

The above consolidated statement of changes in equity should be read in conjunction with the full notes in the audited report and accounts available on the Company�s website: www.nyotaminerals.com.

CONSOLIDATED STATEMENT OF CASH FLOWS

FOR THE YEAR ENDED 30 JUNE 2013