ALO.L Regulatory News (ALO)

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

27 April 2015

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

Independent (non-JORC) Resource Estimate for Kerboulé Gold Project, Burkina Faso and issue of equity

Alecto Minerals plc (AIM: ALO), the AIM quoted mineral exploration company focussed on West and East Africa, is pleased to provide an independent (non-JORC) resource estimate for its recently acquired Kerboulé Gold Project in northern Burkina Faso ('Kerboulé' or 'the Project'). This resource estimate is based on the results obtained from modelling the historical drilling work conducted by the previous owners of the Project. To view the release with pictures and map illustrations please click the following link.

http://www.rns-pdf.londonstockexchange.com/rns/3324L_-2015-4-24.pdf

In addition, the Company has agreed to issue 12,497,143 new ordinary shares of 0.01 pence each in the capital of Alecto ('Ordinary Shares') to a consultant to the Company, in lieu of fees.

Highlights:

· Independent assessment of in situ mineralisation (non-JORC) completed by Wardell Armstrong International ('WAI'): 6.2Mt grading at 1.16g/t Au for 230,758 oz Au, at a cut-off grade of 0.5g/t Au*

· Implies an initial acquisition cost to Alecto for Kerboulé, prior to any deferred consideration, of approximately US$2.25 per resource ounce of gold - substantially lower than industry-standard exploration cost per ounce

· Mineralised zone starts from surface, with approximately 70% of the mineralisation contained within the oxide and transitional layers

· Provides basis for the next phase of work to establish the continuity of mineralisation between the modelled zones which extend over a strike length of 3km

· Subject to completion of a JORC Mineral Resource estimate for Kerboulé, the Company has the potential to approximately double its existing independent JORC inferred resource estimate when combining it with the inferred JORC resource estimate of 247,000 oz Au at an average grade of 1.14g/t Au for Kossanto East, Mali

* It should be noted that this assessment is not a JORC-code compliant Mineral Resource estimate and is preliminary in nature.

Alecto's CEO, Mark Jones, commented:

"This initial independent (non-JORC) in situ gold resource assessment demonstrates why we acquired the Project in November. Our technical team has worked diligently to collate and model the data from historical work performed on the Project, and the next step will be to identify new areas of mineralisation and seek to expand on this solid resource base of close to a quarter of a million ounces of gold.

"We are also delighted that we now have the opportunity, subject to completion of a JORC Mineral Resource estimate for Kerboulé, to approximately double the Company's existing independent JORC inferred resource inventory. This represents a significant step-change for the Company, considering that we had no defined mineralisation 18 months ago.

"Alecto is focused on capitalising on the opportunities that current market conditions provide, and the acquisition of resource ounces at a cost of approximately US$2.25 per ounce demonstrates our capabilities in this regard. The Board believes that growth through third party collaboration on our existing exploration portfolio and further M&A activity will enable the Company to position itself as a producer in the medium term."

Kerboulé Gold Project

As previously announced, Alecto's geologists recently completed a thorough review of the historical drilling data received on acquisition of the Project from Kaizen Discovery Inc. in November 2014. The data identified that there were three discrete areas within the Kerboulé prospect that had sufficient drill-hole density and continuity of mineralisation to enable an initial block model to be created. The data was therefore provided to WAI to conduct an independent assessment of the potential in situ global grade estimate for gold mineralisation at Kerboulé, albeit not, at this stage, to an internationally recognised resource standard such as JORC.

The table below outlines the preliminary in situ mineralisation estimates (non-JORC) for the three zones of mineralisation identified, labelled as Kerboulé North, Kerboulé Main and Kerboulé South:

Technical information and parameters for the resource estimate

WAI's estimation is based on an extensive historic drilling database which covers a total of 3,420m from 12 diamond drill ('DD') holes, all of which had significant intercepts, and 26,603m from 264 reverse circulation ('RC') holes, of which 180 had significant intercepts.

The resource estimate (non-JORC) was generated from three targets within the Kerboulé-Yalema Corridor ('KYC'), a clearly defined NNE-SSW trending splay of the Inata shear zone, which contains Avocet Mining plc's Inata gold mine. Mineralisation within the KYC is characterised by steeply dipping quartz veins trending NNE-SSW (other orientations exist) hosted within phyllitic schists, shales and volcano-sedimentary rocks. These veins infill fractures which are associated with the Kerboulé-Yalema shear zone and crosscut the D2 schistosity. Kerboulé contains two main types of gold bearing quartz veins: 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.

To generate the resource estimate (non-JORC), mineralised wireframes correlating to the three zones were used by WAI, with further subdivisions for the eastern and western regions within these. WAI conducted a review of the wireframes of the mineralised zones against the drill hole database, which showed that a 0.2g/t Au cut-off-grade is representative of the transition from mineralised to non-mineralised material. These wireframes were used to select the sample data, and the oxidation and sulphide boundaries were also used to code the selected sample dataset.

Statistical analysis of the sample data shows single log-normal populations of gold grades, with some positive skew. A top-cut of 20.32g/t Au oxide, 11.07g/t Au transition and 21.49g/t Au sulphide was applied to reduce the influence of high grade outliers that exist within the upper 1%of the sample database. Drill hole samples were composited into 1m lengths within the mineralised domains.

The block model used has not been rotated and the blocks have been clipped to the topography and sub divided according to the degree of oxidation (oxide, transition and sulphide). Parent cell sizes of 40m (X) x 20m (Y) x 5m (Z) for the North/Main zone and 10m x 10m x 5m for the South zone have been used to reflect the mineralisation morphology and the drill hole spacing.

Bulk densities, calculated using the 'water immersion' method with wax sealed diamond core, were applied to the three oxidation zones; with 2.16t/m3 for the material density in the oxidised zone, 2.35t/m3 for the transitional zone and 2.78t/m3 for the fresh sulphide zone.

The principal estimation technique of Inverse Power Distance Squared (IPD2) was used to insert gold grades into the block model, with Nearest Neighbour calculated for comparison. Model validation was performed by global statistical grade validation and Swath plot analysis, with results showing a good correlation between the global grade estimates and the sample composites.

The in situ (non-JORC) estimation of mineralisation described above is preliminary in nature and does not form a Mineral Resource in line with internationally recognised resource standards. WAI placed reliance upon the historic data provided by the Company and no independent verification of such data (e.g. investigation of original drill collars, geological logs, QAQC etc.), site visit, independent exploration or other forms of investigation have been conducted by WAI. Accordingly, the in situ resource mineralisation estimate is not in accordance with the JORC Code (2012). The Company confirms that the additional work required to complete a formal JORC Mineral Resource estimate for Kerboulé will be undertaken in due course.

Conclusions

Analysis of the mineralised wireframes and block modelling reveals that Kerboulé North and Kerboulé Main consist of three principal mineralised zones and an additional 14 small lenses. The larger mineralised bodies have strike lengths of up to 340m and widths of

Historic drilling indicates a lack of continuity between the Kerboulé Main and Kerboulé North bodies of mineralisation. Kerboulé Main may be open to the south, as only a single un-mineralised hole 100m along strike suggests otherwise, but appears to be largely defined by holes to the north.

Currently there appear to be two mineralised zones within Kerboulé North, a western zone and an eastern zone (see Figures 1 and 2). The southern extent of the Kerboulé North west mineralised zone has been delineated but it is open along strike to the N, as is the Kerboulé North east zone. Additionally, these two mineralised zones may be linked. Connecting these two mineralised lenses and increasing their strike length to the NE could increase the resource estimate substantially.

 Kerboulé South (see Figure 3) is characterised by two larger, more homogenous, mineralised bodies than defined to date at the abovementioned Kerboulé North and Main zones and is thus a more attractive target for future potential open pit mining. The strike length of the mineralisation is between 150-200m and reaches widths of >50m in the oxide layer. Drill testing of the strike extents of the two parallel mineralised bodies at Kerboulé South has to date been minor and mineralisation remains open to the NNE of the western body. A single hole to the SSW of the eastern mineralised zone suggests a limit to the strike length but additional holes are required to confirm this.

Further to the above preliminary in situ resource estimate (non-JORC) of 230,758 oz Au at an average grade of 1.16g/t Au, work is underway to plan how best to increase the quantity of defined mineralisation. A geological model will be created to combine with mineralised wireframes to better understand and constrain the mineralisation. The Company anticipates that additional data, in conjunction with the existing extensive drilling database, will enable an independent consultancy group to generate a maiden JORC Mineral Resource estimate for Kerboulé in due course.

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.

Issue of equity

Additionally, the Company has agreed to issue 12,497,143 new Ordinary Shares ('Fee Shares') to a consultant to the Company in lieu of fees. The Fee Shares will rank pari passu in all respects with the existing Ordinary Shares of the Company.

Application for trading on AIM and Total Voting Rights

Application will be made for the Fee Shares to be admitted to trading on AIM and admission is expected to become effective and dealings commence at 8.00 a.m. on 30 April 2015 ('Admission'). On Admission, the Company will have in issue 1,100,063,600 Ordinary Shares. The Company has no Ordinary Shares held in treasury. The above figure may therefore be used by shareholders in the Company as the denominator for the calculations by which they will determine if they are required to notify their interest in, or a change in their interest in, the share capital of the Company under the Financial Conduct Authority's Disclosure and Transparency Rules.

**ENDS**

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

Alecto Minerals plc Tel: +44 (0)20 3137 8862

Mark Jones

Strand Hanson Limited Tel: +44 (0)20 7409 3494

Richard Tulloch

Matthew Chandler

James Dance

Beaufort Securities Limited Tel: +44 (0)20 7382 8300

Elliott Hance

St Brides Partners Ltd Tel: +44 (0)20 7236 1177

Elisabeth Cowell

Felicity Winkles

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.

Alecto also owns The Kerboulé Project, located in the highly prospective Birrimian-age Djibo gold belt in northern Burkina Faso, two prospective gold exploration licences in Ethiopia, 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.

Glossary of Technical Terms