ALO.L Regulatory News (ALO)

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

15 February 2011

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

Defined Exploration Programme at Mauritanian Gold and Base Metal and Uranium Licences

Alecto Energy plc, the AIM listed resource investment company, is pleased to announce an exploration update at the Company's Wad Amour and Zreibya gold and base metal licences and Mreiti and Wad Mourkba uranium licences, located in the prospective Mauritanide mobile belt of Mauritania. 

Overview

·; Consultants SRK Exploration Services ('SRK ES') appointed at the beginning of February to develop and advance gold and base metal licences

·; Four phase exploration programme scheduled to commence at end of February 2011

·; Initial focus on the Wad Amour and Zreibya gold and base metal licences to enhance understanding of highly prospective project areas

·; Analysis of historic data and initial exploration of Mauritanian uranium licences to be conducted concurrently

·; Continued evaluation of prospective assets located in West Africa in line with the Company's strategy to build exposure in the resource sector

Alecto Executive Director Damian Conboy said, "The commencement of exploration work in Mauritania is integral to the development of both our gold and base metal and uranium assets as we focus on building value in our portfolio over the coming months. Our defined programme is centred on identifying key areas of interest for development and drilling and our initial focus will be at Wad Amour and Zreibya, on the basis of the high prospectivity and accessibility at these licences indicated by early work. We believe that Mauritania offers an opportunity for discovery, having already yielded some significant mining projects, and with leading consultants SRK on the ground, we believe that we are well placed to capitalise on any potential opportunities.

"In tandem with this, we continue to evaluate assets, predominantly in West Africa, with a view to strengthening our footprint in the resource sector. We are optimistic about a number of these and will make further announcements at the appropriate time."

Alecto holds three highly prospective licences in Mauritania for three gold and base metal sites in Chegar, Wad Armour and Zreibya totalling 1,902 sq km. These were identified following fieldwork and analysis of historic data conducted by the Company's consulting partner, O'Connor International Ltd, in conjunction with SRK ES. 

Prospective exploration targets, including gold and base metal indications, were viewed by SRK ES in a number of locations at each of the sites covered by these licences. In order to develop these further, SRK ES will conduct a four phase work programme focussing primarily on the Zreibya and Wad Amour licences, which have been identified by SRK ES as the most prospective of the Company's licences. 

Additionally, the Company also owns two uranium licences, Mreiti and Wad Mourkba spanning 1,592 sq km. The licences straddle an internal WSW-ESE contact within the Achaean shield and close to its edge with the younger rocks of the Taoudenu Sedimentary Basin. Geochemical sampling results seen previously by SRK ES in May 2010demonstrated the existence of uranium values at the sites and, as part of SRK ES's exploration programme, initial exploratory and data analysis will be conducted at the Company's Mreiti and Wad Mourkba uranium licences in tandem with the exploration programme at Zreibya and Wad Amour. 

**ENDS**

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

Notes:

Alecto Energy Plc is an AIM listed company with an experienced Board focussed on investing in a mix of natural resource and energy projects ranging from exploration, processing and development or mining and production, to maximise shareholder value. 

The Company has three gold and base metal development licences totalling 1,902 sq km and two uranium licences totalling 1,592 sq km in the highly prospective Mauritanide mobile belt of Mauritania. The Board has identified prospective exploration targets at each of the sites covered by these five licences.

Additionally, the Company also has a 9.73% shareholding in AIM listed resource investment company Charles Street Capital plc in return for a £100,000 investment. The Board believes this investment will provide Alecto with exposure to a diverse range of potential resource projects.