ALO.L Regulatory News (ALO)

Alecto Minerals plc / EPIC: ALO / Market: AIM / Sector: Exploration & Development

20 June 2014

Alecto Minerals plc ('Alecto' or the 'Company')

28% Increase in Inferred Resource Estimate for the Kossanto Gold Project, Mali

Alecto Minerals plc (AIM: ALO), the AIM quoted mineral exploration company focussed on West and East Africa, is pleased to announce a 28% increase in its independent Mineral Resource estimate for Gourbassi to 247,000 ounces of gold. This increase follows the recent completion of additional reverse circulation ('RC') drilling at Gourbassi West ('GRBW'), which together with Gourbassi East (together 'Gourbassi'), forms one of two main target areas at the Company's wholly owned Kossanto Gold Project (the 'Kossanto Project') in Western Mali.

Highlights

· Updated Mineral Resource estimate for Gourbassi of 6.72Mt at an average grade of 1.14g/t Au for 247,000 oz Au with a 0.5g/t Au cut-off, reported in accordance with the guidelines of the JORC Code (2012) by Wardell-Armstrong International ('WAI') (the 'Updated Mineral Resource')

· 131% increase on the pre-existing (June 2013) independent Inferred Mineral Resource estimate reported in accordance with the guidelines of the JORC Code (2012) for Gourbassi achieved since Alecto acquired the Kossanto Project in October 2013

· 28% increase from the Company's previously announced Inferred Mineral Resource estimate of 2 April 2014

· Drilling has increased both the size of the resource, as well as the confidence the Company has in the mineralisation at Gourbassi

o Updated Mineral Resource reflects the six additional RC holes for 864m recently completed to infill the central section of GRBW

· Potential exists to continue to increase the resource estimate as demonstrated by positive indications from the recently completed rotary air blast ('RAB') drilling campaign and the presence of robust mineralisation in the northern-most hole which suggests that mineralisation remains open to the north at GRBW

· Drill targets are identified using low-cost drilling in-house RAB rig

· Gourbassi and Farikounda permits, which cover the eastern portion of the Kossanto Project, consolidated into the exploration licence agreement for Farikounda which expires in 2018

Mark Jones, CEO of Alecto, commented:

"Since acquiring the Kossanto Project less than a year ago, we have increased the Inferred Mineral Resource estimate by 131%, demonstrating our determination and ability to swiftly deliver ounces and increase the project's economic potential. These additional ounces have been added at a direct cost of just US$4.70 per ounce and confirms the Company's ability to add value at low cost.

"With the knowledge gained from this season's drilling campaign, we will continue to test, using our in-house RAB rig in the first instance, for extensions to the resource zone at Gourbassi. We are highly confident that we will continue to add value through further potential increases in the Inferred Mineral Resource estimate reported in accordance with the guidelines of the JORC Code (2012) for Gourbassi. This, coupled with the Kossanto Project's prime location in western Mali in close proximity to many complementary deposits and the positive metallurgical results announced in April 2014, underpins what we believe will be an exciting and economic mining opportunity.

"As we near the end of the current dry season in Mali, we have made good progress with the project and would like to thank the Government of Mali for its continued support, in particular in recognising the advantages of our consolidation request that has now seen the permits of Gourbassi and Farikounda conjoined. This provides us with additional time to explore and test the economic viability of a mining plan in line with our focus on developing Kossanto towards potential future production."

Updated Mineral Resource

The Inferred Mineral Resource estimate increase has been calculated following the completion of six further RC holes for 864m, to infill the central section of GRBW and to test for a possible northern extension to the mineralisation, the results of which were announced on 16 May 2014.

On receipt of the assay results, the Company commissioned WAI to provide an updated Inferred Mineral Resource estimate, as a third party independent consultant, and to review all data generated from the Gourbassi target to such date.

The Updated Mineral Resource, which has been produced in accordance with the guidelines of the JORC Code (2012), estimates an Inferred category Mineral Resource for Gourbassi of 6.72Mt at an average grade of 1.14g/t Au for 247,000 oz Au with a cut-off grade of 0.5g/t Au. Acopy of WAI's Updated Mineral Resource estimate will shortly be made available to download from the Company's website at www.alectominerals.com.

As announced on 16 May 2014, all six RC holes on GRBW intercepted shallow gold mineralisation and importantly, the northern-most hole, GRC081, exhibited robust mineralisation thereby underpinning the Board's belief that the mineralisation remains open to the north.

Accordingly, a further RAB drilling programme, comprising 14 fence lines, averaging 200m in length, has recently been completed on GRBW to test 1.8km of the total strike length as well as soil and rock chip geochemistry to test the northern extension of GRBW. The results from this work in due course should enable a single, larger, target zone at Gourbassi to be defined with increased tonnage and resource opportunity.

Summary of the Updated Mineral Resource:

Farikounda and Gourbassi Licence Consolidation

The Malian Ministry of Mines has approved the consolidation of Alecto's Gourbassi and Farikounda permits that sees the crucial resource zone of Gourbassi incorporated into the exploration licence agreement for Farikounda, which was issued in 2011 and expires in 2018. As a result, these two permits have now become one single permit entity and critically for the Company, the consolidation of the eastern portion of the Kossanto Project to one single permit reduces administrative and financial burdens, allows exploration activities to continue to 2018 (if required) and will ultimately simplify the attribution of a mining licence in the future.

Review of Information

The information in this announcement that relates to Exploration Results, Mineral Resources or Ore Reserves is based on information compiled by Michael Ware, who is the Company's part time Executive Director and a Fellow of the Australasian Institute of Mining and Metallurgy.

Michael Ware has sufficient experience relevant to the style of mineralisation and type of deposit under consideration and to the activity that he is undertaking and is a qualified person as defined in the AIM rules. Michael Ware has reviewed this announcement and consents to the inclusion in the announcement of the matters based on his information in the form and context in which they appear.

**ENDS**

For further information, please visit www.alectominerals.com or contact:

Notes to editors:

Alecto Minerals plc is an African focussed, gold and base metal exploration and development company quoted on AIM.

The on-going development of the Kossanto Project in Mali is the Company's predominant focus and with significant value upside potential evident across the tenure, the Board plans to build on the Updated Mineral Resource of 247,000 oz Au for Gourbassi.

The Kossanto Project is located in the centre of the Kenieba inlier in western Mali. The Kenieba inlier is a block of ancient greenstones and granites hosting many significant gold deposits in Senegal and Mali, making it one of the most important gold regions in Africa. The 207 sq. km. Kossanto Project currently comprises the Gourbassi and Massakama target areas located in the west of the licence area, where large-scale artisanal activity is occurring.

Alecto also has a joint venture with Centamin plc over two prospective gold exploration licences in Ethiopia, under which Alecto retains exposure to such assets with no capital expenditure obligations, as well as the wholly owned Wad Amour IOCG Project in Mauritania which is at an exploration stage. Combined, these projects provide the Company with a strong, diversified portfolio with exciting exploration upside potential.

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