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

6 January 2015

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

Completion of Analysis of Historic Drilling Results at Kerboulé Gold Project, Burkina Faso

Alecto Minerals plc (AIM: ALO), the AIM quoted mineral exploration company focussed on West and East Africa, is pleased to provide an update on the 399.5 sq. km. Kerboulé Gold Project (the 'Kerboulé Project' or 'Project'), located in the highly prospective Birrimian-age Djibo gold belt in northern Burkina Faso, following the successful completion of a detailed internal analysis of historical drilling data.

Highlights

· Completion of detailed internal analysis of data from historical drilling at the Kerboulé Project across the two permits

· Analysis has identified three discrete deposits with sufficient drilling density to estimate contained resource ounces

· Numerous vein sets and orientations identified in drill core that the Board believes could add significant value to future drilling campaigns

· Increased understanding of the structures and mineralisation controls

· The Company is on track to achieve a maiden resource estimate for the Kerboulé Project in 2015 and thereby increasing the Company's existing gold inventory

Alecto's CEO, Mark Jones, commented:

"We acquired the Kerboulé Project in an all shares, low-cost transaction in November 2014, and the completion of the internal review of the extensive historical drilling data is our first step in advancing the Project as rapidly as possible. The conclusions drawn by our technical team, following the analysis of the historic drilling data and the ongoing geochemistry evaluation, confirm the prospective nature of the Project and we believe there is considerable opportunity to enhance the solid work that has been completed historically. Importantly, this work will assist us in seeking to ensure that our own drill holes, subject to funding, target the key structures as we aim to achieve a maiden resource for the Kerboulé Project in 2015 and then increase it with our own exploration approach."

Further Information

Following the completion of the acquisition of the Kerboulé Project in November 2014, Alecto's geologists have completed a detailed study of the available data from historical exploration activities.

The extensive drilling database includes a total of 3,420 metres from 12 diamond drill ('DD') holes, all of which had significant intercepts, and 26,603 metres from 264 reverse circulation ('RC') holes, of which 180 had significant intercepts. We have completed a detailed analysis of the mineralisation styles and controls in order to increase the Board's understanding, plan the next phases of work and to assist in the definition of a maiden resource for the Kerboulé Project in 2015.

The Kerboulé Project

The Kerboulé Project comprises two contiguous exploration permits (Arae and Gassel-Manere) in northern Burkina Faso. The permits cover a landmass of 399.5 sq. km. across the highly prospective Birrimian-age Djibo gold belt and are cross-cut by two known mineralised trends (the Inata and the Souma Trends). Historically, geochemical surveys have been completed across the permits in the form of soil, termite and auger grids, with drilling concentrated over the Kerboulé-Yalema Corridor ('KYC'), a clearly defined mineralised structural trend located along strike from the 6Moz Inata gold mine (Avocet Mining plc). The Company's focus, whilst also identifying further regional targets, is the KYC, which contains significant mineralisation that has already been discovered from historic drilling within the permits and which the Board believes will provide the basis of a maiden JORC-code compliant resource estimate for the Kerboulé Project in 2015.

Figure 1. The Kerboulé Project consisting of the Arae and Gassel Manere permits covering 399.5 sq. km. showing main drill targets and gridded geochemical soil sampling results

The KYC is interpreted to be a NNE-SSW trending splay of the Inata shear zone, with the two structures merging approximately 1-2 km south of the Kerboulé Project. The Inata Trend is a several hundred metre wide high-strain zone that hosts the Inata gold mine. The basement rocks in both structural zones consist of strongly altered, often saprolitic, schist and phyllite, volcanoclastic sediments, and occasional crosscutting magmatic dykes. The KYC is a 5 km long and several hundred metres wide NNE-SSW trending zone characterised by abundant quartz veining and extensive artisanal mining activities.

Several discrete targets exist within the KYC; namely Kerboulé North, Kerboulé Main and Kerboulé South (together 'Kerboulé'), Yaléma and Yaléma East. The majority of the historic drilling has taken place at the Kerboulé South and North prospects, where significant intercepts include 26 metres @ 2.37 g/t Au from surface at Kerboulé South and 38 metres @ 3.95 g/t Au from 121 metres at Kerboulé North. Two targets that lie on the northern extent of the structural corridor, Yaléma and Yaléma East, have also been drilled historically and yielded encouraging results.

Kerboulé South

The Kerboulé South prospect has seen the greatest drilling out of all the targets within the KYC, with a total of 12,878 metres completed over 152 RC holes, of which 97 had significant intercepts, along with five DD holes for 1,320 metres, all of which had significant intercepts. The historic drilling has defined a pair of ore bodies which trend NNE-SSW on the inside edges of strong geophysical anomalies clearly shown by induced polarisation ('IP') geophysical surveys, and both cover approximately 200 metres in strike length and 100-180 metres in width. A line of three RC holes between the two zones suggests that they are discrete from one another, but drilling along strike has been minor, and further drilling is needed to find the true limits of the mineralisation. Significant intercepts include 29 metres @ 7.43 g/t Au from 101 metres and 40 metres @ 1.94 g/t Au from 55 metres. Exceptionally wide intercepts also exist, for example the entire 200 metre length of diamond core hole KBS-DD-04, which was drilled with an azimuth of 180° and cuts across the eastern ore body in Kerboulé South, grades at 0.74 g/t Au, when all 194 samples and internal waste is included.

Kerboulé North

Kerboulé North lies 2.5 km NNW of Kerboulé South, along the western limits of the KYC and on another NNE-SSW trending IP anomaly. Drilling at this target included 6,612 metres completed over 52 RC holes, of which 32 had significant intercepts, and three DD holes for 900 metres, all of which had significant intercepts. Significant intercepts from historic drilling at Kerboulé North include 38 metres @ 3.95 g/t Au from 121 metres and 29 metres @ 4.0 g/t Au from 121 metres.

Similarly to Kerboulé South, mineralisation can be modelled in two discrete zones, although a gap in drilling between these zones means that potential exists that they may in fact be continuous. The apparent curvature suggested by the two mineralised zones could be caused by folding, in which case there is a potential that they are linked and further drilling will be required to determine if gold mineralisation exists between them and along the fold structure.

Figure 2. Map showingthe location of RC and DD drill collars and significant drill intercepts on a gridded soilgeochemistry map

Kerboulé Main and Kerboulé Village SE

Kerboulé Main is a possible southerly extension of Kerboulé North, with historic drilling having identified a mineralised zone on a N-S IP anomaly with intersections of up to 8 metres @ 9.56 g/t Au from 48 metres, including 2 metres @ 17.58 g/t Au from 48 metres, and 7 metres @ 1.36 g/t Au from 24 metres over a strike length of 250 metres and open in both directions. A single line of three RC holes was also completed over the Kerboulé Village SE target, where anomalous geochemistry warranted follow up work. The central RC hole of the three, KB_RC_023, hit strong mineralisation throughout, with 10 metres @ 1.15 g/t Au from 31 metres, 10 metres @ 1.34 g/t Au from 44 metres, 13 metres @ 1.47 g/t Au from 73 metres and 7 metres @ 1.10 g/t Au (including 1 metre @ 10.00 g/t Au) from 132 metres. When put together, these grades provide wide, lower grade intercepts including 55 metres @ 0.83 g/t Au from 31 metres (internal waste included), and Kerboule Village SE will be a high priority target for future drilling, especially as this is a central target and could provide a link between Kerboulé North and South.

Other targets within the Kerboulé Project

Several other targets within the KYC have also been identified and historically have undergone first pass drill testing. Yaléma and Yaléma East lie several kilometres along strike from Kerboulé, and historic drilling has yielded some short intersections of high grades, such as 4 metres @ 4.63 g/t Au from 52 metres, including 2 metres @ 30.71 g/t Au from 52 metres, and 2 metres @ 8.51 g/t Au from 32 metres.

Geology across the Kerboulé Project

At Kerboulé and Yaléma, fractures infilled with gold-bearing quartz veins are associated with the shear zones and crosscut the D2 schistosity. These fractures have been associated with thrust faulting evident 30 km SE of the permits (Delisle and Aussant, 1997). The fractures consist of moderate W-dipping veins, and flat lying, possibly extensional veins and veinlets. At Kerboulé and Yaléma, the wallrock includes stockwork veining. At Kerboulé South, late ENE-striking faults and associated gold-bearing quartz veins (D3) crosscut D1 and D2 structures.

Figure 3. Photo showing quartz vein with high angle to foliation, Mu-Py alteration

(Mu = Muscovite; Py = Pyrite)

Figure 4. Photo showing minor quartz vein with Mu alteration selvage cross cut by later vein

The folding of older veins and the formation of younger ones parallel to axial surfaces in the Inata Trend and KYC suggests that fluid infiltration and vein formation occurred repeatedly during different phases of the tectonic history of the area. The gold bearing quartz veins and their associated halos of disseminated gold in the KYC dominantly strike N-S to NE-SW, but various other vein orientations are also mineralised.

Gold mineralisation at the Kerboulé Project is chiefly associated with quartz veining, of which there are two main types:

· Weak to moderate stockwork defining thick zones (tens of metres scale) commonly at the dyke contacts or at contacts between argillite and greywacke; and

· Individual quartz veins located within shear zones. Such shear zones are commonly developed near lithological contacts.

Historical drilling has largely focused on a singular quartz vein set following the regional KYC trend of N-S to NNE-SSW, yet several other mineralised vein orientations exist. Alecto's geologists plan to test these initially via specific grab sampling of different vein directions to establish the highest grades, and then, subject to funding, undertaking further drilling in different orientations to intersect these vein sets. This may significantly increase the current mineralisation if previous drilling has been completed parallel to mineralised structures.

Alecto's technical team have also reviewed the data from a quality assurance and quality control ('QAQC') perspective. The Company, having reviewed and checked sampling procedures as described by SRK Consulting (Canada) Inc. ('SRK') during their field investigations in 2012 (Independent Technical Report for the Kerboulé Gold Project, Burkina Faso, prepared by SRK, May 2013), are in agreement with SRK that the previous techniques are consistent with generally accepted industry best practices. Alecto's technical team are of the opinion that there can be a high confidence in the results gathered as sample preparation, security and analytical procedures used by Concordia, SearchGold and Orezone were adequate, considering the early exploration stage of Kerboulé. In future drilling programmes, Alecto will significantly increase the percentage of QAQC material inserted to improve the confidence of results for resource purposes.

Review of Information

The information in this announcement that relates to Exploration Results, Mineral Resources or Ore Reserves has been reviewed by Michael Ware, who is the Company's consultant 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 with exploration projects in Mali, Ethiopia, Mauritania and Burkina Faso.

In Mali, the Kossanto Project has a current independent 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 at Kossanto East. 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 Kerboulé Project, located in the highly prospective Birrimian-age Djibo gold belt in northern Burkina Faso, is ideally positioned for the definition of a preliminary JORC resource estimate, as well as on-going resource expansion, and accordingly is the near term focus of the Company to provide the basis for commencing a preliminary economic assessment.

Alecto also has a joint venture with Centamin plc over two prospective gold exploration licences in Ethiopia which sees Alecto retain exposure to these 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.