MWANA AFRICA PLC - Half-yearly Report

10 December 2014

Mwana Africa PLC

("Mwana", the "Group" or the "Company")

Unaudited results for the six months to 30 September 2014

Mwana Africa is pleased to announce its unaudited interim financial results
for the six months to 30 September 2014.

Financial highlights

- Revenue is up 30.6% to $84.9m (H1 FY2014: $65.0m)

- EBITDA is $17.1m (H1 FY2014: $12.9m)

- Profit after is tax: $7.7m (H1 FY2014: $7.5m)

- Cash balance: $6.9m (H1 FY2014: $9.2m), about $4.8m of which was obtained
through the share placement in September 2013

- The movement in cash for the period was $2.2m which comprised cash generated
by operations of $5.8m, cash utilised in investing activities of $9.6m and
cash advanced through financing activities of $1.7m, which consisted of the
drawing down of an overdraft

- First-half earnings per share $0.37 (H1 FY2014: $0.48). Earnings per share
have decreased despite the 3% increase in profit versus the comparable period
last year due to an increase of Company ordinary shares in issue

Operational highlights

Freda Rebecca

- The Group sold 30,058oz gold from Freda Rebecca in the six months to
September 2014 (H1 2014: 32,252oz)

- Tonnes mined and milled increased by 10.5% and 11.6% respectively compared
to H1 FY2014

- Revenue declined by 11.6% due to a 6.8% drop in ounces sold, a 5.1% fall in
the average gold price per ounce (H1 FY2015: $1,283/oz vs H1 FY2014:
$1,352/oz)

- Lower gold production during the half year contributed to a 9.2% increase in
cash costs to $969/oz and a 5.7% increase in the all-in sustaining costs to
$1,161/oz

- Technical challenges associated with power failures at two absorption tanks
were overcome promptly, affecting operations only for a few weeks

Bindura Nickel Corporation (BNC)

Trojan Nickel Mine ("Trojan")

- 77.0% increase in sales of nickel in concentrate to 3,879 tonnes (t) in the
half year (H1 FY2014: 2,191t)

- Mill head grade: 1.507% nickel in line with Trojan mine plan

- Mill throughput: 309,989t (H1 FY2014: 302,965t)

- Average metal price received of $18,168/t (H1 FY2014: $14,268/t)

- All-in sustaining costs: $14,669/t (H1 FY2014: $12,770/t)

- Recoveries were affected by the lower head grade achieved and the need to
reduce magnesium oxide in concentrates to meet customer requirements

- The upside of lower impurity penalties was more than offset downside of
reduced recovery

Bindura Smelter and Refinery (BSR)

- Smelter restart programme approved and planning in progress with core
project team in place

- Key equipment orders and contracts, including for control and
instrumentation, the furnace off-gas system, converters, the precipitator
overhaul, furnace and converter bricks, transformer inspection, cleaning and
testing, cooling system coolers, engineering design and project support and
converter repairs have been made

Klipspringer

- 56,617 carats (ct) from retreatment of Marsfontein fine residue tailings

- 39,113ct sold in New York and Amsterdam at an average price of $20.14/ct

- Evaluation of resumption of underground mining and reprocessing of coarse
tailings dumps continuing

- 70% of the care and maintenance costs (totalling $336,000) covered by share
of diamond sales profit

- 600,000t pre-resource estimate at slimes dam 1 (grade 0.80ct/t)

- Sampling planned at slimes dams 2 and 3 during 2015

- Bulk sampling of tailings dump planned for Q4 FY2015

- Application for the renewal of mining rights continues

Zani-Kodo

- Additional drilling as part of pre-feasibility study allowed
reclassification of 26,000oz shallow mineralisation to indicated status

- Total gold resource unchanged at 2.975 million ounces

- District-scale exploration continuing with promising mineralised zones at
Shaba and Djalasega East

Katanga Copper

- Drilling with eight rigs on four main targets: Kawesitu; Kamungoti; Kibolwe
Extension; and Lunsano

- Sampling of Kawesitu drill is on-going

- First dispatch made in early November.

Post period highlights

- BSR submission to the Environmental Management Authority (EMA) made in
October 2014 with financial planning for the smelter at an advanced stage

- Proposed $20 million bond issue will fund the majority of the smelter
restart. The bond has been granted Prescribed Asset status by the Minister of
Finance and Economic Development of Zimbabwe and Liquid Asset Status by the
Reserve Bank of Zimbabwe. A parent guarantee from Mwana has been provided

- DRC drilling at Katanga Copper will resume after end of rainy season (April
2015)

- No additional resource estimates currently available

- Appointment of two non-executive directors, Mr Ngoni Kudenga and Mr Herbert
Mashanyare, to the Board of Mwana

Kalaa Mpinga, Chief Executive Officer of Mwana Africa, commented:

"The first half of the current year saw considerable operating progress across
all of the Group's key projects. This progress is continuing and augurs well
for future growth.

Safety is our priority and it is with deep regret that I report the death of
our colleague Jim Tembo in an accident at Trojan Nickel Mine. Jim leaves
behind a widow and three children and my sincere condolences go to Jim's
family and friends. All efforts to ensure safety remain an unrelenting
priority.

At Freda Rebecca consistent throughput is now being achieved and
this is helping to contain costs and ensure that the mine remains profitable
should gold prices retreat further whilst at Trojan, the primary focus
continues to be the ramping up of operations.

The decision to restart Bindura's smelter at a total capital cost of $26.5
million has been central to our planning for sustainable and profitable nickel
production.

Completion of the resizing of head-office has reduced overheads, enabling our
focus to move towards containing costs at the operational level. Our aim
remains fixed on restraining costs to levels that should allow our operations
to remain profitable no matter what becomes of metal prices."

For further information contact:

Mwana Africa PLC
Kalaa Mpinga, CEO
Yim Kwan, Finance Director
Caroline Mathonsi, Investor Relations
Tel: + 44 (0) 203 696 5470

Nominated adviser and broker
Peel Hunt LLP
Matthew Armitt / Ross Allister Tel: [phone]

Public and investor relations
Russell and Associates
Jim Jones / Leigh King Tel: [phone]

Qualified person

Charl du Plessis, formerly Executive Vice President Exploration of Mwana
Africa, who is now retained as an independent contractor, holds a PhD and is a
member of the AusIMM, is a 'qualified person' as defined in the AIM rules. The
exploration and resource information contained in this report pertaining to
Zani-Kodo has been reviewed and verified by Dr Du Plessis.

About Mwana Africa PLC

Mwana Africa PLC is a pan-African, multi-commodity mining and development
company. Mwana's principal operations and exploration activities cover gold,
nickel, copper and diamonds in Zimbabwe, the Democratic Republic of Congo
(DRC) and South Africa.

Six-month Review and Outlook

While production at our nickel and gold operations was higher during H1 FY2015
than in the corresponding period of the preceding year, the six months were
not without challenges. The gold price continued its decline and unit
production costs of nickel rose in line with the metal price. The diamond
market remained a buyer's market with suppliers pressured by tight liquidity.

To illustrate this, the average gold price achieved by Freda Rebecca in H1
FY2015 was $1,283/oz compared to $1,352/oz in H1 FY2014. On the other hand,
average nickel prices rose with BNC achieving an average nickel price of
$18,168/t for the period under review, compared to $14,268/t in the same
period last year.

With both Freda Rebecca and Trojan mines operating steadily, and the
introduction of a more appropriate corporate cost structure, attention has
turned to containing on-mine costs. Despite the persistent weakness of
commodity prices, both our producing mines continue to generate operating
profits.

At Freda Rebecca, tailings test work showed low recoveries and price due to
gold price constraints. Modifications to the tailings retreatment plant to
treat the run of mine ore are now being considered.

At BNC we have initiated a re-opening of the smelter and, by the end of H1
FY2015, satisfactory progress was being made

At Klipspringer, extractive operations remain confined to the recovery of
diamonds from tailings residue. Underground operations remain on care and
maintenance.

Exploration work within the Hailiang JV on our Katanga concessions continues
to progress with particular focus on high-priority targets. Drilling takes
place during the dry season with laboratory work and field exploration
activities continuing throughout the year.

Review of operations and exploration

Freda Rebecca Gold Mine - Zimbabwe

Gold sold fell to 30,058oz versus 32,252oz in the comparative period in
FY2014, however mining stabilised over that period with production stopes
becoming fully available and expected grades being intersected. Though the
average head grade was lower at 2.17g/t in the half year against 2.30g/t in H1
FY2014, mill throughput over the same period showed an increase from 522,499t
to 583,298t.

Much of the improvement in gold production occurred in the second quarter of
the half year, following improved plant and equipment availability. The second
quarter saw an increase in plant running hours as a result of equipment
repairs and upgrades. And a further improvement is being sought in H2 2015
following completion of repairs in the September quarter.

Consideration is being given to modifying the tailings retreatment plant to
treat the run of mine ore due to gold price constraints.

The Group is continuing to focus on reducing all-in sustaining costs through
production efficiency initiatives and an increase in volumes produced to
ensure that margins can be maintained in a declining gold price environment.
In the September quarter all-in sustaining costs were $1,061/oz.

Table 1
Freda Rebecca production results
                          H1 FY2015        H1 FY2014       Variance
                   Six months ended Six months ended
                       30 Sept 2014     30 Sept 2013

Tonnes mined (t)            661,526          598,879          10.5%
Tonnes milled (t)           583,298          522,499          11.6%
Head grade (g/t)               2.17             2.30          -5.7%
Recovery (%)                  79.3%              81%          -2.2%
Gold sales (oz)              30,058           32,252          -6.8%
Average gold price            1,283            1,352          -5.1%
received ($/oz)
C1 Cash cost                    969              887           9.2%
($/oz)

All-in sustaining             1,161            1,098           5.7%
costs ($/oz)
Note: Figures shown are unaudited and may vary upon final audit.
Gold ounces produced incorporate gold released from or caught in `lock-up' for
each period.

Cash cost per ounce sold includes costs for mining, processing,
administration, accounting movements for stockpiles, gold-in-circuit, and net
proceeds from by-product credits. It excludes capital costs for exploration,
mine development or processing mill capital works, and the cost of royalties.

All-in sustaining costs reflect cash costs per ounce sold plus
depreciation and amortisation, thus incorporating the capital cost of
production, plus interest, other indirect costs and royalties. All-in
sustaining costs represent all costs attributable to gold production over the
period.

Table 2
Financial ($'000)
                                H1 FY2015           H1 FY2014
                         Six months ended    Six months ended
                             30 Sept 2014        30 Sept 2013

Revenue                            38,556              43,623
Cost of sales                    (27,928)            (28,187)
Gross profit                       10,628              15,436
Selling, distribution             (7,694)             (6,335)
and other expenses
Profit before tax                   2,934               9,101
Note: The numbers shown are after the elimination of intercompany transactions
within the group for consolidation purposes.

Bindura Nickel Corporation - Zimbabwe

A combination of greater mill throughput and higher head grades lifted the
production of nickel in concentrate to 3,879t from 2,191t in H1 FY2014. The
figures are not strictly comparable as H1 FY2014 covered the first-six-month
period of continuous operations since the re-opening of the Trojan mine.

During the half year refurbishment of some of the mining equipment was largely
completed. This refurbishing involved the withdrawal of trackless equipment
from the workings, and its return has contributed to the currently higher
milling and mining rates. The result is that the second quarter's operations
and costs offer a better indication of what might be expected in future
periods versus the average for H1 FY2015.

The second quarter's cash costs rose by 1% to US$13,900t due to the
continuation of the mobile plant refurbishment programme and an increase in
the nickel price -as revenue increases, costs attributed to the off-take
agreement also rise - while all-in sustaining costs were 8% lower at
US$14,566/t. As the Company returned to profit it was possible to reverse a
deferred tax provision originally charged against the all-in sustaining costs
reported in the Q1 accounts. As a result, the reported Q1 FY2015 all-in
sustaining costs of $15,750 per tonne should be reduced by $974 a tonne to
$14,776 for comparative purposes.

Table 3
BNC production results
                                   H1 FY2015           H1 FY2014
                            Six months ended    Six months ended
                                30 Sept 2014        30 Sept 2013

Tonnes mined (t)                     316,351             274,092
Tonnes milled (t)                    309,989             302,965
Head grade (% Ni)                        1.5                 1.1
Recovery (%)                            83.3                83.5
Nickel sales                           3,879               2,191
(tonnes in concentrate)
Average nickel price                  18,168              14,268
($/t)
C1 Cash cost ($/t)                    13,827              11,909
All-in sustaining costs               14,669              12,770
($/t)
Note: Figures shown are unaudited and may vary upon final audit.

Average nickel price represents the average LME nickel price
utilised under the terms of the Glencore off-take contract.

Cash costs per tonne include costs for mining, processing,
administration, off-take costs and penalties, transport costs, accounting
movements for stockpiles, and net proceeds from by-product credits and
excludes capital costs for exploration, mine development or processing mill
capital works, and, the cost of royalties.

All-in sustaining costs reflect cash cost per tonne plus
depreciation and amortisation, thus incorporating the capital cost of
production, plus interest, other indirect costs and royalties. All-in
sustaining costs represent all costs attributable to nickel production over
the period.

Table 5
BNC key financial performance indicators (unaudited)
$'000                               H1 FY2015         H1 FY2014
                             Six months ended  Six months ended
                                 30 Sept 2014      30 Sept 2013

Revenue                                46,386            21,371
Cost of sales                        (22,908)           (9,488)
Gross profit                           23,478            11,883
Selling, distribution and            (11,613)           (7,118)
other expenses
Profit/(loss) before tax               11,865             4,766
Bindura smelter
The plan to implement the modifications required to restart the plant safely
and quickly includes limited modifications to the furnace, the introduction of
furnace off-gas cleaning prior to the electro-static precipitator (ESP),
allowing better control of freeboard pressure, improvement in building
hygiene, a six-month rebuild of the ESP, minor modifications to the feed
system to improve furnace operation and safety, and electrical and control
system upgrades to ensure safe and efficient operations.

The 12-month accelerated restart plan was independently reviewed by Hatch Goba
and begins with Trojan concentrates alone, using only 60% of the smelter
capacity. Therefore third party concentrates to fill the rest of the 60,000t
nameplate capacity continue to be sought. Following the period end, the
Company announced that its subsidiary BNC is seeking to raise a $20.0m bond to
contribute to the smelter restart.

Zani-Kodo - Democratic Republic of Congo
District-scale exploration is continuing. While this has delivered some
interesting mineralisation indications, no exploratory drilling was carried
out during H1 FY2015, nor is any planned for the immediate future. As a
result, there have been no additions to the current 2.975Moz gold resource
estimate. During H1 FY2015, 26,000oz of near-surface mineralisation amenable
to open-pit exploitation were converted to indicated status.

Subarea        Cut Off (g/t) Category  Tonnes (t) Grade (g/t) Au (ozs)

Kodo Main           0.5      Indicated  4,799,487    3.63       560,075
                    0.5      Inferred  10,330,969    3.52     1,169,000

Lelumodi            0.5      Indicated  1,118,644    2.06        74,260
                    0.5      Inferred   8,154,092    1.81       475,072

Lelumodi North      0.5      Inferred   1,150,062    2.34        86,589

Badolite            0.5      Inferred   2,806,940    2.34       211,010

Zani Central        0.5      Inferred   9,683,455    1.28       398,894

TOTAL                                  38,043,649    2.43     2,974,900
COPPER
Katanga Copper - Democratic Republic of Congo

The 2014 exploration programme remains in progress, with a total nine drill
rigs operating on five Priority One (`P1') targets: Lunsano, Kawesitu,
Mifumbi, Kamungoti, and KibolweEast (At the same time exploration programmes
comprising geological mapping, soil sampling, high-resolution ground-mag
surveys and trenching have been conducted for Priority Two targets, with the
objective to advance them to drill targets for 2015.

At, Kawesitu a total of 2,930.07m diamond core drilling was completed on 10
holes. Drilling was focused on two priority targets: Target 1 is a geological
target where the flank of an anticline overlain by the dolomite; Target 2 is
cut by a regional-scale ENE trending shear zone and was confirmed by infill
soil sampling results and an IP survey. Drilling for both targets intersected
oxide mineralization (dominantly malachite) in shallow parts, confirmed by
Niton on-site quick assay. In borehole KWSDD001 a continuous 80m interval of
strong quartz-calcite-pyrite alteration containing visible chalcopyrite was
intersected. This intercept, coupled with visible chalcopyrite intersected in
boreholes KWSDD003 and 006, suggest potential primary (sulphide)
mineralisation at Target 1 along an approximately 1.5km long structural target
for follow-up drilling in 2015. A total of 785 samples were taken at Kawesitu
and dispatched to ALS South Africa. Assay results are pending

DIAMONDS
Klipspringer Diamond Mine - South Africa

During H1 FY2015, 56,617ct were recovered and 39,113ct sold in New York and
Amsterdam at an average price of $20.14/ct while 17,024ct were placed in stock
for future sale. Together with the JV partner, Klipspringer is aiming to
increase the tailings operation's monthly slimes throughput from 18,000t to
21,000t and we expect to reach this higher throughput before the end of the
current financial year.

Table 6
Klipspringer Diamond Mine production results
                                                  H1 FY2015

Slimes processed (t)                                 84,563
Diamonds recovered (ct)                              56,617
Diamonds sold (ct)                                   39,113
Average price ($/ct)                                  20.14
Diamonds - other interests
Mwana Africa has minority stakes in a number of other pre-resource stage
diamond projects including a 20% interest in Société Minière de Bakwanga
(MIBA) in the DRC and an 18% interest in the Camafuca project in Angola.

The prospecting licence for the BK16 project in Botswana, in which the company
had an interest of 55%, was not renewed during the period.

Financial review
Income statement

The group reported revenue of $84.9m for the period (H1 FY2014: $65.0m). Freda
Rebecca generated $38.5m of revenue (H1 FY2014: $43.6m) from the sale of
30,058oz of gold (H1 FY2014: 32,252oz) and BNC generated $46.4m of revenue (H1
FY2014: $21.4m) from the sale of 3,879t (H1 FY2014: 2,191t) of nickel in
concentrate.

The group generated a gross profit of $34.1m (H1 FY2014: $30.7m) for the
period; $10.6m (H1 FY2014: $18.8m) at Freda Rebecca and $23.4m at BNC (H1
FY2014: $11.9m).

Operating costs were $73.0m (H1 FY2014: $55.9m) due to increased tonnes sold
by BNC of 1,678t and increase in average cost of sales per tonne for BNC and
FR.

No impairment or reversal of impairment of assets was recorded in the period.
The group reported a profit before tax of $11.9m (H1 FY2014: $10.0m). Fully
diluted earnings per share for the period were 0.37 cents per share (cps) (H1
FY2014: 0.45cps).

Cash flow
The group generated $5.8m (H1 FY2014: -$0.1m) of cash flow from operations
during the period. Freda Rebecca and BNC respectively generated $4.8m (H1
FY2014: $13.0m) and $1.6m (H1 FY2014: $5.3m) of operating cash flows, offset
by $1.4m (H1 FY2014: $0.5m) which was utilised for expenses incurred in
relation to the interest in the diamond recovery JV, and additional cash flows
generated by other Mwana entities.

Working capital absorbed $12.6m (H1 FY2014: $12.1m) of cash flow, with $9.4m
relating to BNC and $4.8m relating to Freda Rebecca. Combined with financing
costs of $0.4m (H1 FY2014: $0.3m) this yielded a net cash inflow from
operations of $5.8m (H1 FY2014: -$0.1m).

Capital investment comprised $9.6m (H1 FY2014: $11.8m) of which $4.6m (H1
FY2014: $7.9m) was spent on property, plant and equipment, and a further $5.1m
(H1 FY2014: $6.6m) on exploration assets. The balance of capital investment
was spent on several other items as detailed in the cash flow statement.

At 30 September 2014 the group held cash balances of $6.9m (H1 FY2014: $9.2m).


Consolidated Statement of Profit and Loss
For the six months ended 30 September 2014
(Unaudited)

                              6 months   6 months   Year
                              ended      ended      ended
                              30.09.2014 30.09.2013 31.03.2014
                              Unaudited  Unaudited  Audited
                              $'000      $'000      $'000

Revenue                       84,942     64,993     142,460
Cost of sales                 (50,834)   (34,308)   (83,850)
Gross profit                  34,108     30,685     58,610
Other income                  534        505        620
Freight and insurance
expenses                      (5,700)    (8,242)    (12,098)
General and administrative
expenses                      (6,792)    (5,167)    (11,240)
Care and maintenance expenses (833)      (1,269)    (1,890)
Corporate expenses            (2,705)    (3,607)    (6,442)
Operating profit              18,612     12,905     27,560
Retrenchment and
restructuring expenses[1]     (213)      -          (2,004)
Dividends received            24         -          -
Profit/(loss) on sale of
assets                        (43)       6          (1,636)
Fair value adjustment         9          -          (6)
Foreign exchange gain/(loss)  (1,311)    (14)       1,055
EBITDA[2]                     17,078     12,897     24,969
Impairment loss               (471)      -          (671)
Impairment reversal           188        -          27,987
Depreciation                  (4,571)    (3,378)    (7,631)
Finance income                48         763        319
Finance expense               (369)      (300)      (1,033)
Net profit before income tax  11,903     9,982      43,940
Income tax credit/(expense)   (4,221)    (2,521)    6,655
Net profit for the period     7,682      7,461      50,595
Net profit attributable to:
Equity holders of the parent  5,124      5,524      36,605
Non-controlling interest      2,558      1,937      13,990
Net profit for the period     7,682      7,461      50,595
Earnings per share
Basic earnings per share
(cents)                       0.37       0.48       2.89
Diluted earnings per share
(cents)                       0.37       0.45       2.89

Following a decision to reduce corporate costs, certain staff retrenchment and
once-off costs in respect of restructuring costs were incurred during the 6
months ended 30 September 2014 in respect of London, Johannesburg and DRC
(SEMHKAT). Earnings before interest, impairments, tax, depreciation and
amortisation Consolidated Statement of Comprehensive Income
For the six months ended 30 September 2014
(Unaudited)

                              6 months       6 months
                              ended          ended         Year ended
                              30.09.2014     30.09.2013    31.03.2014
                              Unaudited      Unaudited     Audited
                              $'000          $'000         $'000
Profit for the period         7,682          7,461         50,595
Other comprehensive
profit/(loss)
Items that are or may be
reclassified subsequently to
profit and loss:
Foreign currency translation
differences                   785            (548)         (884)
Other comprehensive
profit/(loss) for the period,
net of income tax             785            (548)         (884)
Total comprehensive profit
for the period                8,467          6,913         49,711
Total comprehensive profit
attributable to:
Equity holders of the parent  5,909          4,976         35,721
Non-controlling interest      2,558          1,937         13,990
Total comprehensive profit
for the period                8,467          6,913         49,711


Consolidated Statement of Financial Position
As at 30 September 2014
(Unaudited)

                              30.09.2014 30.09.2013 31.03.2014
                              Unaudited  Unaudited  Audited
                              $'000      $'000      $'000
ASSETS
Non-current assets
Property, plant and equipment 81,210     53,419     81,355
Intangible assets             66,556     62,203     62,986
Investments                   579        1,395      615
Deferred tax assets           14,138     1,186      19,406
Non-current receivables       2,392      1,159      2,288
Total non-current assets      164,875    119,362    166,650
Current assets
Inventories                   15,257     11,674     12,994
Trade and other receivables   21,616     22,789     18,832
Cash and cash equivalents     6,922      9,214      9,089
Total current assets          43,795     43,677     40,915
Total assets                  208,670    163,039    207,565
EQUITY
Issued share capital          99,572     98,967     99,572
Share premium                 69,536     69,193     69,536
Reserves                      97,523     97,819     97,157
Retained earnings             (135,504)  (172,317)  (140,628)
Total equity attributable to:
Equity holders of the parent  131,127    93,662     125,637
Non-controlling interest      5,888      (9,007)    3,284
Total equity                  137,015    84,655     128,921
LIABILITIES
Non-current liabilities
Loan payable - non-current    2,345      3,380      2,446
Rehabilitation provisions     17,765     18,765     17,847
Other payables                -          8,537      -
Deferred tax liabilities      16,886     10,506     18,878
Total non-current liabilities 36,996     41,188     39,171
Current liabilities
Trade payables                10,790     11,368     15,300
Accruals and other payables   16,143     16,465     19,745
Loans payable - current       3,584      -          1,823
Provisions                    4,142      9,363      2,605
Total current liabilities     34,659     37,196     39,473
Total liabilities             71,655     78,384     78,644
Total equity and liabilities  208,670    163,039    207,565


Consolidated Statement of Changes in Equity
For the six months ended 30 September 2014
(Unaudited)

                                                                                        Total
                                                                                        equity
                                                                                        attribu-
                                           Invest-                                      able
                                           ment                                         to equity
                                   Trans-  revalu-          Share                       holders   Non-con-
                 Share     Share   lation  ation   Treasury based    Total    Retained  of the    trolling Total
                 capital   premium reserve reserve stock    payments reserves earnings  parent    interest equity
                 $'000     $'000   $'000   $'000   $'000    $'000    $'000    $'000     $'000     $'000    $'000
Balance as at 31
March 2013
(Audited)        95,162    69,088  95,108  -       (1,719)  3,137    96,526   (177,949) 82,827    (10,793) 72,034
Profit for the
year             -         -       -       -       -        -        -        36,605    36,605    13,990   50,595
Foreign currency
translation
differences      -         -       (884)   -       -        -        (884)    -         (884)     -        (884)
Total
comprehensive
loss for the
year             -         -       (884)   -       -        -        (884)    36,605    35,721    13,990   49,711
Contributions by
and
distributions to
owners
Issue of
ordinary shares  4,410             -       -       -        -        -        -         4,410     837      5,247
Dividends        -         -       -       -       -        -        -        -         -         (750)    (750)
Premium on share
issue less
expenses         -         2,101   -       -       -        -        -        -         2,101     -        2,101
Disposal of
treasury stock   -         (1,653) -       -       1,719    -        1,719    -         66        -        66
Share-based
payment
transactions     -         -       -       -       -        512      512      -         512       -        512
Share-based
payment
reversals        -         -       -       -       -        (716)    (716)    716       -         -        -
Total
contributions by
and
distributions to
owners           4,410     448     -       -       1,719    (204)    1,515    716       7,089     87       7,176
Balance as at 31
March 2014
(Audited)        99,572    69,536  94,224  -       -        2,933    97,157   (140,628) 125,637   3,284    128,921


Consolidated Statement of Changes in Equity (continued)
For the six months ended 30 September 2014
(Unaudited)

                                                                                     Total
                                                                                     equity
                                                                                     attribu-
                                        Invest-                                      table
                                        ment                                         to equity Non-
                                Trans-  revalu-          Share                       holders   con-
                Share   Share   lation  ation   Treasury based    Total    Retained  of the    trolling Total
                capital premium reserve reserve stock    payments reserves earnings  parent    interest equity
                $'000   $'000   $'000   $'000   $'000    $'000    $'000    $'000     $'000     $'000    $'000
Balance as at
31 March 2014
(Audited)       99,572  69,536  94,224  -       -        2,933    97,157   (140,628) 125,637   3,284    128,921
Profit for the
period          -       -       -       -       -        -        -        5,124     5,124     2,558    7,682
Foreign
currency
translation
differences     -       -       785     -       -        -        785      -         785       -        785
Total
comprehensive
loss for the
period          -       -       785     -       -        -        785      5,124     5,909     2,558    8,467
Contributions
by and
distributions
to owners
Issue of
ordinary shares -       -       -       -       -        -        -        -         -         46       46
Share Issue
Expenses        -       -       -       -       -        -        -        -         -         -        -
Dividends paid
by subsidiary   -       -       -       -       -        -        -        -         -         -        -
Share-based
payment
transactions    -       -       -       -       -        (419)    (419)    -         (419)     -        (419)
Share-based
payment
reversals       -       -       -       -       -        -        -        -         -         -        -
Total
contributions
by and
distributions
to owners       -       -       -       -       -        (419)    (419)    -         (419)     46       (373)
Balance as at
30 September
2014
(Unaudited)     99,572  69,536  95,009  -       -        2,514    97,523   (135,504) 131,127   5,888    137,015


Consolidated Statement of Cash Flows
For the six months ended 30 September 2014
(Unaudited)

                                    6 months   6 months   Year
                                    ended      ended      ended
                                    30.09.2014 30.09.2013 31.03.2014
                                    Unaudited  Unaudited  Audited
                                    $'000      $'000      $'000
Cash flows from operating
activities
Profit/(loss) before income tax     11,903     9,982      43,940
Adjustments for:
Foreign exchange movements          1,311      (920)      (1,055)
Depreciation                        4,571      3,724      7,631
Fair value adjustments              (9)        -          6
Charge in relation to share-based
payments                            (419)      230        512
Increase/(decrease) in
rehabilitation provisions           82         -          (1,046)
Increase/decrease in other
provisions                          937        319        (9,947)
Impairment loss                     471        15         671
Impairment reversal                 (188)                 (27,987)
Loss/(profit) on sale of
non-current assets                  43         (6)        1,636
Finance income                      (48)       (763)      (319)
Finance expense                     369        300        1,033
                                    19,023     12,881     15,075
(Increase)/decrease in inventories  (2,263)    (468)      (1,788)
(Increase)/decrease in trade and    (2,784)               (10,813)
other receivables                              (9,881)
(Decrease)/increase in creditors    (7,513)    (1,764)    9,074
                                    6,463      768        11,548
Finance expense                     (369)      (300)      (1,033)
Income tax paid                     (332)      (526)      (4,421)
Net cash inflows/(outflows) from
operating activities                5,762      (58)       6,094
Cash flows from investing
activities
Additions to property, plant and                          (12,770)
equipment                           (4,573)    (7,879)
Investment in intangible                                  (5,235)
exploration assets                  (5,132)    (3,941)
Investments                         36         -          -
Increase in non-current receivables (104)      -          -
Proceeds from sale of property,                           49
plant and equipment                 103        10
Finance income                      48         763        319
Net cash used in investing
activities                          (9,622)    (11,047)   (17,637)
Cash flows from financing
activities
Proceeds from issue of share
capital                             -          6,042      6,990
Share issue expenses                -          (413)      (413)
Dividends paid to non-controlling
interests                           -          (151)      (150)
Share issuance to NCI               46         -          837
Loans advanced/(repaid)             1,660      (283)      (1,827)
Net cash from financing activities  1,706      5,195      5,437
Net increase/(decrease) in cash and
cash equivalents                    (2,154)    (5,910)    (6,106)
Cash and cash equivalents at
beginning of period                 9,089      15,194     15,194
Exchange rate movement in cash and
cash equivalents at beginning of
period                              (13)       (70)       1
Cash and cash equivalents at end of
period                              6,922      9,214      9,089


For the six months ended 30 September 2014
(Unaudited)

Reporting entity

Mwana Africa PLC (the "Company") is a company domiciled in the United Kingdom.
The condensed consolidated interim financial statements of the Company as at
and for the six months ended 30 September 2014 comprise the Company and its
subsidiaries (together referred to as the "Group") and the Group's interests
in associates and jointly controlled entities. The audited consolidated
financial statements of the Group as at and for the year ended 31 March 2014
are available upon request from the Company's registered office at 2nd Floor,
1 Catherine Place, London, SW1E 6DX or at www.mwanaafrica.com.

Statement ofcompliance

These condensed financial statements have been prepared in
accordance with International Accounting Standard ("IAS") 34, Interim
Financial Reporting, as adopted by the EU. These condensed financial
statements have been prepared using the same accounting policies as used in
the preparation of the Group's annual financial statements for the year ended
31 March 2014, which were prepared in accordance with International Financial
Reporting Standards as adopted by the EU ("IFRS"). They do not include all of
the information required for full annual financial statements, and should be
read in conjunction with the consolidated financial statements of the Group
for the year ended 31 March 2014. The financial information presented in this
document is unaudited. The comparative figures for the financial year ended 31
March 2014 are not the Company's statutory accounts for that financial year.
Those accounts have been reported on by the Company's auditor and delivered to
the Registrar of Companies. The report of the auditor was unqualified,
included emphasis of matter paragraphs in which the auditor drew attention to
significant uncertainties that may cast significant doubt regarding going
concern and the carrying value of investments, and did not contain a statement
under section 498(2) or (3) of the Companies Act 2006. These sections address
whether proper accounting records have been kept, whether the Company's
accounts are in agreement with those records and whether the auditor has
obtained all the information and explanations necessary for the purposes of
its audit.

Going concern

The Directors, having considered the Group's and the Company's current trading
activities, funding position and projected funding requirements and the
Zimbabwean environment for the period at least twelve months from the date of
approval of these Interim Financial Statements, consider it appropriate to
adopt the Going Concern basis in preparing the Interim Financial Statements
for the six months ended 30 September 2014. The Group's business activities,
together with the factors likely to affect its future development, performance
and position are set out in the Operational Review on pages 8 to 15. The
financial position of the Group, its cash flows and liquidity position are as
set out in the Financial Review on page 15. The group reports a profit for the
six months ended 30 September 2014 of $7.7m (H1 FY2014: $7.5m). As at 30
September 2014, the group held cash of $6.9m (H1 FY2014: $9.2m). During the
six months to 30 September 2014, FR's cash flow contribution to the Group fell
due to a lower gold price and lower production relative to the same period
last year. However, BNC's Trojan recommenced production in this period which
augmented the Group's cash flow. Having two mines in production represents a
strengthening of the Group's cash generating ability. Discussions are on-going
with the Zimbabwean Government pertaining to the implementation of the
country's Indigenisation Act in relation to Mwana's Zimbabwean assets. Mwana's
implementation of the Indigenisation Act may reduce the quantum of cash flow
Mwana receives from its Zimbabwean entities. Furthermore, the lack of clarity
around indigenisation makes it harder for Mwana to raise funding as required
for its Zimbabwean assets. The Directors have prepared the cash flow forecasts
of the Group and are of the opinion that the Group's current cash resources,
together with the cash forecast to be generated by FR and BNC, are sufficient
to fund all of the Group's planned activities for at least 12 months from the
date of these Financial Statements. The Directors are aware that various
uncertainties might affect the validity of their forecasts. These
uncertainties include metal prices, mining and processing risks and resource
and reserve risks, in addition to indigenisation risks in Zimbabwe. The
Directors, however, believe they have the ability to manage cash flows and
implement indigenisation proposals so as to minimise the cash flow impact to
the Group. However, the Directors acknowledge that there is no certainty that
mitigation efforts will be successful. The Directors have concluded that the
combination of these circumstances represents a material uncertainty that may
cast significant doubt on the Company's and the Group's ability to continue as
a going concern and that the Company and the Group may therefore be unable to
realise all their assets and discharge all of their liabilities in the normal
course of business. Nevertheless, after making enquiries and considering the
uncertainties described above the Directors have a reasonable expectation that
the Company and the Group have adequate resources to continue in operational
existence for the foreseeable future. Accordingly they continue to adopt the
going concern basis in preparing these Financial Statements which do not
include any adjustments that would result from the going concern basis of
preparation being inappropriate.

Significant accounting policies

In the preparation of these condensed financial statements, the Group has
applied the same accounting policies as those presented in the Group's
consolidated financial statements for the year ended 31 March 2014, as set out
on pages 53 to 57 of the Annual Report. Management is currently assessing the
potential impact of the changes of the following amendments to published
standards and interpretations which are effective for the Group for the half
year ended 30 September 2014, which are not anticipated to be material or
significant:
Transition guidance: Amendments to IFRS 10, IFRS 11 and IFRS 12 -
The amendments simplify the transition to these new standards and provide
additional relief from disclosures. For entities that present one year of
comparatives, the amendments:

simplify the transition process by requiring the
consolidation conclusion to be tested at the start of the year in which IFRS
10 is adopted;

remove the requirement to disclose the impact of the change in
accounting policy for the year in which the standards are adopted;

and require disclosures in respect of unconsolidated structured entities be provided only
prospectively.

For entities that provide additional comparatives on a
voluntary basis, only the period immediately preceding the year of adoption of
the standards needs to be restated.

IFRS 10 Consolidated Financial Statements
- Part of a new suite of standards on consolidation and related standards,
replacing the existing accounting for subsidiaries and joint ventures (now
joint arrangements), and making limited amendments in relation to associates.
IFRS 10 supersedes IAS 27 Consolidated and Separate Financial Statements and
SIC-12 Consolidation - Special Purpose Entities. It provides a single model to
be applied in the control analysis for all investees, including entities that
currently are SPEs in the scope of SIC-12. An investor controls an investee
when:
it is exposed or has rights to variable returns from its involvement
with that investee;

it has the ability to affect those returns through its
power over that investee; and

there is a link between power and returns.

IAS 27 (2011) carries forward the existing accounting and disclosure
requirements of IAS 27 (2008) for separate financial statements, with some
minor clarifications. The requirements of IAS 28 (2008) and IAS 31 for
separate financial statements have been incorporated into IAS 27 (2011).

IFRS11 Joint Arrangements - Part of a new suite of standards on consolidation and
related standards, replacing the existing accounting for subsidiaries and
joint ventures (now joint arrangements), and making limited amendments in
relation to associates. All parties to a joint arrangement are within the
scope of IFRS 11. IFRS 11:

carves out from IAS 31, those cases in which there
is a separate vehicle but that separation is overcome by form, contract or
other facts and circumstances.

removes the choice of equity or proportionateaccounting for JCEs (as under IAS 31)

IFRS 12 Disclosure of Interests in OtherEntities -
Part of a new suite of standards on consolidation and related
standards, replacing the existing accounting for subsidiaries and joint
ventures (now joint arrangements), and making limited amendments in relation
to associates. Contains the disclosure requirements for entities that have
interests in subsidiaries, joint arrangements (i.e. joint operations or joint
ventures), associates and/or unconsolidated structured entities.

IAS 27Separate Financial Statements (2011) - IAS 27 (2011) carries forward the
existing accounting and disclosure requirements of IAS 27 (2008) for separate
financial statements, with some minor clarifications. The requirements of IAS
28 (2008) and IAS 31 for separate financial statements have been incorporated
into IAS 27 (2011).

IAS 28 Investments in Associates and Joint Ventures (2011)- IAS 28 (2011) amends
IAS 28 (2008) as follows:

associates and joint venturesheld for sale - IFRS 5 applies to an investment,
or a portion of aninvestment, in an associate or a joint venture that meets the
criteria to be classified as held for sale. For any retained portion of the investment
not classified as held for sale, the equity method is applied until disposal of
the portion held for sale. After disposal, any retained interest is accounted
for using the equity method if the retained interest continues to be an
associate or a joint venture.

changes in interests held in associates andjoint ventures - IAS 28 (2011) does not
require remeasurement of the retainedinterest in the investment upon cessation of
significant influence or joint control. Previously, IAS 28 (2008) and IAS 31 would
have required remeasurement of any retained interest in all cases, even if significant
influence was succeeded by joint control.

Investment Entities (Amendments to IFRS 10, IFRS 12 and IAS 27) - The amendments exempt
an investment entity from the requirement to consolidate the investments that it controls.
Instead, it accounts for these investments at fair value through profit or loss.

Offsetting Financial Assets and Financial Liabilities - Amendments to IAS 32 -
The amendments clarify the offsetting criteria, specifically:

when an entity currently has a legal right of set off; and

when gross settlement is equivalent to net settlement.

An entity `currently has a legally enforceable right of set-off' if the right is:

not contingent on a future event; and

enforceable in both the normal course of business, and in the event of
default, insolvency or bankruptcy of the entity and all of the counterparties.

Gross settlement is equivalent to net settlement if and only if the gross
settlement mechanism has features that:
eliminate or result in insignificant
credit and liquidity risk; and process receivables and payables in a single
settlement process or cycle. Recoverable amount disclosures for non-financial
assets - Amendments to IAS 36 - The amendments reverse the unintended
requirement in IFRS 13 Fair Value Measurement to disclose the recoverable
amount of every cash-generating unit to which significant goodwill or
indefinite-lived intangible assets have been allocated. Under the amendments,
recoverable amount is required to be disclosed only when an impairment loss
has been recognised or reversed. IFRIC 21 Levies - The interpretation defines
a levy as an outflow from an entity imposed by a government in accordance with
legislation. That levy is recognised as a liability when - and only when - the
triggering event specified in the legislation occurs. Continuing hedge
accounting after derivative novations - Amendments to IAS 39 - The amendments
add a limited exception to IAS 39 to provide relief from discontinuing an
existing hedging relationship when a novation that was not contemplated in the
original hedging documentation meets specific criteria. The Group has reviewed
the effect of these amendments and interpretations, and has concluded that
they have no material impact on these condensed consolidated interim financial
statements. The Group is currently assessing the potential impacts of the
other new and revised standards and interpretations that will be effective
from 1 April 2014 and beyond, and which the Group has not early-adopted. The
Group does not anticipate that these will have a material impact on the
Group's overall results and financial position. Standards, Amendments and
Interpretations that are not yet effective The following new, revised and
amended standards and interpretations have been issued and endorsed by the EU
unless otherwise stipulated, but are not yet effective and have not been
adopted by the Group in these consolidated financial statements. IFRS 9
`Financial Instruments', IASB effective 1 January 2015, however, not yet
endorsed by the EU. Based on the nature of the Group's financial assets, the
adoption of the standard is not expected to have a material impact on the
financial position or performance of the Group; IFRS 10 `Consolidated
Financial Statements', issued in May 2011, replaces the consolidation
requirements in SIC-12 `Consolidation - Special Purpose Entities' and IAS 27
`Consolidated and Separate Financial Statements'. This standard builds on
existing principles by identifying the concept of control as the determining
factor in whether an entity should be included within the consolidated
financial statements of the parent company. The standard provides additional
guidance to assist in the determination of control where this is difficult to
assess. The standard has been endorsed by the EU and is effective for the
accounting period beginning 1 January 2014. The Group is yet to assess IFRS
10's full impact on its financial position or performance; IFRS 11 `Joint
Arrangements', issued in May 2011, replaces IAS 31 `Interests in joint
ventures'. The standard establishes accounting principles based on the rights
and obligations of the joint arrangement rather than its legal form. The
standard introduces two types of joint arrangement - joint operations and
joint ventures - and eliminates proportionate consolidation for any form of
joint arrangement. The standard has been endorsed by the EU and is effective
for the accounting period beginning 1 January 2014. The Group is yet to assess
IFRS 11's full impact on its financial position or performance; IFRS 12
`Disclosure of Interests in Other Entities', issued in May 2011, is a new
standard that establishes the disclosure requirements for all entities that a
Group has an interest in, including subsidiaries, joint arrangements,
associates, special purpose vehicles and other off-balance sheet vehicles. The
standard has been endorsed by the EU and is effective for the accounting
period beginning 1 January 2014. The Group is yet to assess IFRS 12's full
impact on its financial position or performance; and Improvements to IFRSs:
There are a number of amendments to certain standards following the 2011
annual improvements project which have not yet been endorsed by the EU. The
impact of any consequential changes to the consolidated financial statements
is not likely to be significant.

Operating segments
The Group has four reportable segments, as described below, which are the
Group's strategic business units. The strategic business units offer different
products and services, and are managed separately because they require
different technology and marketing strategies.

The following summary describes the operations in each of the Group's
reportable segments:

Business Segment Description
Gold             Gold mining activities
Nickel           Nickel mining. Smelting and refining activities are
                 currently on care and maintenance.
Diamonds         Diamond mining activities currently on care and maintenance
Exploration      Gold and base metal exploration activities

For information about reportable segments - Operations see www.mwanaafrica.com

                                Gold                         Nickel
                   6 months   6 months              6 months   6 months
                   ended      ended      Year ended ended      ended      Year ended
                   30.09.2014 30.09.2013 31.03.2014 30.09.2014 30.09.2013 31.03.2014
                   Unaudited  Unaudited  Audited    Unaudited  Unaudited  Audited
                   $'000      $'000      $'000      $'000      $'000      $'000

External revenue   38,556     43,623     77,449     46,386     21,370     65,011
Reportable segment
assets             63,160     68,504     68,872     70,108     21,431     69,844
Reportable
additions to
property, plant
and equipment      1,753      3,231      5,986      2,267      4,524      7,031
Reportable
additions to
intangible assets  -          -          -          -          -          -
Reportable segment
profit/(loss)
before impairment
reversal and tax   2,934      9,101      8,577      11,865     4,766      18,209
Impairment
reversal           -          -          -          -          -          -
Reportable segment
profit/(loss)
before tax         2,934      9,101      8,577      11,865     4,766      46,196

                                 Diamonds                       Exploration                       Total
                      6 months   6 months              6 months   6 months              6 months   6 months
                      ended      ended      Year ended ended      ended      Year ended ended      ended      Year ended
                      30.09.2014 30.09.2013 31.03.2014 30.09.2014 30.09.2013 31.03.2014 30.09.2014 30.09.2013 31.03.2014
                      Unaudited  Unaudited  Audited    Unaudited  Unaudited  Audited    Unaudited  Unaudited  Audited
                      $'000      $'000      $'000      $'000      $'000      $'000      $'000      $'000      $'000
External revenue      -          -          -          -          -          -          84,942     64,993     142,460
Reportable segment
assets                1,186      1,488      1,224      67,304     63,007     65,263     201,758    154,430    205,203
Reportable additions
to property, plant
and equipment         -          -          -          1          116        358        4,021      7,871      13,375
Reportable additions
to intangible assets  -          -          -          3,941      3,941      15,331     3,941      3,941      15,331
Reportable segment
profit/(loss) before
impairment reversal
and tax               (1,411)    (481)      (1,027)    558        (448)      (1,925)    13,946     12,938     (24,505)
Impairment reversal   -          -          -          -          -          -          -          -          -
Reportable segment
profit/(loss) before
tax                   (1,411)    (481)      (1,027)    558        (448)      (1,925)    13,946     12,938     (51,821)

                                                                                  6 months      6 months
                                                                                     ended         ended    Year ended
                                                                                30.09.2014    30.09.2013    31.03.2014
                                                                                 Unaudited     Unaudited       Audited
                                                                                     $'000         $'000         $'000
             Reconciliation of reportable segment profit or loss:

             Total profit for reportable segments                                   13,946        12,938        51,821

             Unallocated amounts:
             Other corporate expenses                                              (2,043)       (2,956)       (7,881)
             Consolidated profit/(loss) before income tax                           11,903        9,982         45,940

Business Segment Statement of Profit and Loss

Earnings Per Share
Basic earnings per share (EPS) is computed by dividing the profit or loss
after taxation for the period attributable to ordinary shareholders by the sum
of the weighted average number of ordinary shares in issue for dividends
during the period. Diluted earnings per share is computed by dividing the
profit or loss after taxation for the period attributable to ordinary
shareholders by the sum of the weighted average number of ordinary shares in
issue, adjusted for the effect of all dilutive potential ordinary shares that
were outstanding during the period.

                             30.09.2014    30.09.2013    31.03.2014
                             Unaudited     Unaudited     Audited
                             $'000         $'000         $'000

Earnings
Profit/(loss) attributable
to ordinary shareholders     5,124         5,524         36,605

Weighted average number of
shares                       Number        Number        Number
Issued ordinary shares at
the beginning of the year    1,397,780,675 1,119,727,051 1,119,727,051
Effect of shares issued      -             20,619,999    146,596,861
Weighted average shares at
the end of the year for
basic and diluted EPS        1,397,780,675 1,140,347,050 1,266,323,912
Basic Earnings/(loss) per
share                        0.37          0.48          2.89
Diluted earnings/(loss) per
share                        0.37          0.45          2.89

Post balance sheet events
There were no events after balance sheet date that required additional
disclosure besides those detailed below: At BNC the smelter restart plan is
underway and its commissioning is forecast for August 2015; Post the
half-year, BNC announced it will shortly be seeking funding through a $20
million fixed-term debt instrument (the "bond") to help fund the restart of
the Bindura smelter. The bond has been granted Prescribed Asset status ("PA
status") by the Minister of Finance and Economic Development of Zimbabwe and
Liquid Asset Status by the Reserve Bank of Zimbabwe, and consequently BNC has
commenced the process of raising the bond of $20 million; and Post the half
year, FR began a process of raising $10 million through an overdraft facility
to be obtained from EcoBank, $4m of which facility has already been secured.

Commitments and contingent liabilities
Commitments
Capital commitments at the end of the period relating to property, plant and
equipment for BNC and FR, for which no provision has been made, are as
follows:

                      30.09.2014 30.09.2013 31.03.2014
                      Unaudited  Unaudited  Audited
                      $'000      $'000      $'000

Contracted            7,645      716        1,220

Copyright r 10 PR Newswire