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Alecto Minerals plc / EPIC: ALO / Market: AIM / Sector: Mining

22 March 2017

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

Operational Update

Alecto Minerals plc (AIM: ALO), the African-focused gold and copper exploration and development company, is pleased to provide a positive operational update in relation to the Mowana Copper Project in Botswana ("Mowana" or the "Project").

· Capital Drilling Limited (LSE: CAPD) has been awarded the contract for Drill and Blast and is currently mobilising its equipment to site

o In the interim, using a local contractor, the first production blast is expected by the end of this month

· Giant Transport Holdings Limited ("Giant"), the Company's mining contractor for the Project for an initial period of six months, has commenced operations

· Appointment of Vincent (Paddy) Conran as General Manager for the Project - over 25 years' experience in Mining and Mineral processing

· The conventional crushing and screening circuit has been successfully operating for two weeks, stockpiling crushed ore

· After initial commissioning of the process plant, test production has now commenced, producing saleable concentrate up to 28% copper ("Cu"), which will comprise part of the first tranche of product to be delivered to Fujax Minerals and Energy Limited, under a five year copper offtake contract

· The Company believes that early test production strengthens the value proposition of Mowana and, accordingly, the estimated timetable for re-admission has been pushed back, anticipated to complete by the end of May 2017, to ensure that the value of this production is accounted for and represented on re-admission

· Latest developments reflect the Company's commitment to establish Mowana as a significant and profitable copper mine

Mark Jones, CEO of Alecto, commented:

"We are moving at speed towards delivering continuous production and first sales at Mowana meaning that the atmosphere on site is buoyant, particularly given that the first blast is anticipated in just a matter of days. It is significant that we have been able to sign up a company of Capital Drilling's profile to provide future Drill and Blast services, and with Giant already on site, our stockpile is increasing. Most importantly, we have switched the plant back on as part of a test phase and this has been a great success, producing saleable copper concentrate.

"We are also delighted to welcome Paddy Conran to the team as General Manager. Paddy's vast experience running mines in southern Africa, and particularly his in-depth knowledge of the treatment processes that are applicable to the Mowana project, further strengthens our confidence that we will achieve our near term goals.

"Of course, there are still some hurdles to overcome before we can announce that we are in full scale production, but our Project is being de-risked on a continuous basis, and we enjoy fantastic relationships with excellent operational partners, which have the expertise to help us deal with any challenges. These positive developments mean that our timeline for publishing our re-admission document will be pushed back, although we believe this puts the Company in a stronger position. I look forward to providing further updates and photographs regarding the first blast and additional operational achievements on site, during what is a very exciting time for Alecto."

Image 1: Giant undertaking mining operations (Please see PDF)http://www.rns-pdf.londonstockexchange.com/rns/1736A_1-2017-3-22.pdf

Images 2 & 3: Mobilisation of Capital Drilling equipment to site (Please see PDF)http://www.rns-pdf.londonstockexchange.com/rns/1736A_1-2017-3-22.pdf

 **ENDS**

For further information please visit www.alectominerals.com, follow us on Twitter @AlectoMinerals, or contact:

The information contained within this announcement is deemed by the Company to constitute inside information as stipulated under the Market Abuse Regulation (EU) No. 596/2014.

Notes to editors:

Alecto Minerals plc is an African focused, gold and copper exploration and development company quoted on AIM with gold exploration projects in Mali, Botswana, Burkina Faso and Mauritania and a development project with near-term gold production in Zambia.

In Zambia, the historical Matala and Dunrobin gold mines have, in aggregate, a 760,000oz Au JORC Code compliant resource estimate in the Measured, Indicated and Inferred categories at an average grade of 2.3g/t Au. The Company is focused on bringing Matala into low-cost production in the near to mid-term.

In Botswana, the Company is, subject to, inter alia, shareholder approval in due course, looking to acquire a 60% interest in the Mowana Copper Mine, a formerly producing copper mine and plant, which can be brought back into production at a relatively low cost. Alecto has also agreed a 10-year management contract for Mowana with its partners and will receive management fees equal to 1.5% of revenue.

In Mali, the Company has secured a number of joint-venture agreements, in-line with its strategy to retain exposure to the value in its African gold exploration portfolio for little or no cost; the Kossanto East project, which has an inferred JORC Code compliant resource estimate of 6.72Mt grading at 1.14g/t Au for an aggregate of 247,000 oz Au with a cut-off grade of 0.5g/t Au, is under a joint venture agreement with Ashanti Gold Corp; the Kossanto West Project is under a joint venture with Randgold Resources Limited; and the 250 sq. km. Karan gold project in southern Mali is under joint venture with Cora Gold Limited.

Alecto also owns the Kerboulé Project, located in the highly prospective Birrimian-age Djibo gold belt in northern Burkina Faso, as well as the wholly owned Wad Amour IOCG Project in Mauritania which is at an exploration stage.

Accordingly, the Company has a strong, diversified project portfolio with exciting exploration upside potential.