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Mwana Africa PLC

09 February 2011

09 February 2011

Mwana Africa PLC

("Mwana" or the "Company") (AIM: MWA)

Freda Rebecca Mine - Project Finance Update

Mwana Africa PLC is pleased to announce that its Zimbabwean subsidiary, Freda Rebecca Gold Mine Limited ("Freda Rebecca"), has drawn down the first $4m tranche of the $10m loan facility provided by the Industrial Development Corporation of South Africa Ltd ("IDC").

Highlights

0 Draw down of the $4m first tranche of the IDC project finance facility by Freda Rebecca.

0 Loan term 5 years; interest rate 5% over US$ LIBOR.

0 30,000 oz of gold per annum production rate achieved. For the 6 month period from August 2010 production has averaged 2,569 oz of gold per month. Phase 2 expansion to a production rate of 50,000 oz per annum is underway.

IDC Project Finance Facility

Following the fulfillment of required conditions precedent, including the provision by the Export Credit Insurance Corporation of South Africa ("ECIC") of political risk insurance for the facility, Freda Rebecca has drawn down the first $4m tranche of the project finance facility. The drawdown of the second tranche of up to $6m is conditional on further conditions precedent being met. The facility is repayable in 10 equal installments over a five year period and attracts an interest rate of US$LIBOR plus 5%.

Kalaa Mpinga, CEO of Mwana commented:

"We are delighted with IDC's support for Freda Rebecca. This loan marks a significant development for project finance into Zimbabwe. The production ramp-up at Freda Rebecca continues to progress and our expansion to 50,000 ounces per annum is well advanced."

For more information, please visit www.mwanaafrica.com or contact:

Enquiries:

Mwana Africa PLC Tel: +44 (0)20 7654 5580

Oliver Baring - Executive Chairman

Nominated Adviser and Broker

Ambrian Partners Limited Tel: +44 (0) 20 7634 4700

Richard Swindells / Jen Boorer

Public Relations

Merlin Tel: +44 (0)20 7726 8400

David Simonson

Anca Spiridon

Notes to Editors

Mwana Africa

Mwana Africa PLC is a pan-African resources company with operations in Zimbabwe and South Africa and exploration projects and interests in the Democratic Republic of Congo, Angola, Ghana and Botswana. The group has a diverse asset base including gold, nickel, copper, cobalt and diamonds.

In October 2005, Mwana Africa became the first African-owned, African-managed resource company to list on the Alternative Investment Market of the London Stock Exchange, through a reverse takeover of African Gold plc by a privately held mining company, Mwana Africa Holdings (Pty) Limited. Mwana Africa Holdings (Pty) Limited was itself formed in 2003.

Building on its track record and with its highly experienced team, Mwana Africa intends to pursue mining opportunities across the African continent, both independently and, where appropriate, in partnership with other stakeholders.

About the Industrial Development Corporation

The IDC is a self-financing, South African state-owned national development finance institution that provides finance to promote industrial and entrepreneurial development. Its primary objectives are to contribute to balanced sustainable economic growth in Africa and to the economic empowerment of the South African population, thereby promoting the economic prosperity of all citizens of the African continent.

Freda Rebecca

The Freda Rebecca gold mine is located near Bindura, approximately 90 kilometres north-east of Harare.

Exploration, development and production history in the area dates from 1912. The mine and plant complex were developed by Cluff Gold and the production commenced in 1988. In 1996, the mine was acquired by Ashanti Goldfields Zimbabwe which was itself acquired by AngloGold in 2004.

In 2005 Mwana acquired Freda Rebecca from AngloGold. Mwana has committed to sell a 15% stake to a local investor. Freda Rebecca achieved production of 98,000 ounces of gold in 2002, however as a result of the social and economic difficulties in Zimbabwe, output from the mine declined sharply and the mine was placed onto care and maintenance in 2007.

Following the announcement in February 2009 of revised export procedures for gold produced in Zimbabwe, together with the termination of the requirement to submit a proportion of foreign currency earnings to the RBZ for conversion to Zimbabwe dollars, Mwana Africa announced in March 2009 its intention to restart gold production at the Freda Rebecca mine, followed by the first gold pour at the mine in October 2009. The first phase of production ramp up to 30,000oz per annum was completed in 2010, mining and processing expansion to 50,000oz per annum currently under way.

This information is provided by RNS

The company news service from the London Stock Exchange

END

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