Amara Mining Regulatory News (AMA)

7 April 2015 AIM: AMA

Amara Mining plc

2014 AUDITED FULL YEAR RESULTS

Amara Mining plc (the "Company" and, together with its subsidiaries, "Amara" or the "Group"), the AIM-listed West African focused gold mining company, is pleased to announce its audited results for the year ended 31 December 2014.

HIGHLIGHTS

· Total Mineral Resources at Yaoure Gold Project in Côte d'Ivoire ("Yaoure") increased to 6.8 million ounces1 following the 2014 drilling programme, underlining its position as the largest gold development project in West Africa by Mineral Resource

· 466% increase in Indicated Mineral Resources at Yaoure compared to December 20132 update, further increasing Amara's confidence in the deposit

· Final stages of optimisation work underway for delivery of a Pre-Feasibility Study ("PFS") for Yaoure, which is anticipated to be announced in early Q2 2015 - expected to confirm compelling economics outlined in Preliminary Economic Assessment ("PEA") in March 2014

· Cash as at 31 December 2014 of US$2 million and financial position strengthened by post-period placing to raise US$22 million

· Fully funded to Q1 2016 including the delivery of a Bankable Feasibility Study "(BFS") for Yaoure, which is expected in December 2015

· Second strong growth opportunity in Baomahun Gold Project ("Baomahun") - potential to be a compelling second project for Amara, assisting the Group in its goal of becoming a mid-tier producer

· Further cost efficiency measures implemented resulting in a substantial decrease in general and administrative ("G&A") costs - management team streamlined and Group strategy focused on the advancement of Yaoure

John McGloin, Executive Chairman of Amara Mining plc, commented:

"At the start of 2014 our Yaoure Gold Project was just one of many gold development projects in West Africa. However following the completion of a compelling Preliminary Economic Assessment and a highly successful drilling programme, Yaoure is now recognised as one of the most exciting projects in the region. With Mineral Resources of nearly seven million ounces, Yaoure is the largest gold development project in West Africa and Amara has the largest resource base of any London-listed junior gold mining company.3

"The strong support the recent placing received is further testimony to the quality of Yaoure and we are fully-funded to deliver a BFS for Yaoure in December 2015. We are in the final stages of optimisation work for the PFS and I look forward to delivering it early in Q2 2015. Despite the challenging market conditions, I am delighted that Amara has started 2015 in good shape by solidifying its financial position and further increasing our resource base. We are now well positioned to deliver the next major African gold mine."

Notes

1. Announced on 06 January 2015

2. Indicated Mineral Resources at Yaoure in December 2013 estimate were 780,000oz (20.3Mt at 1.20g/t), compared to 4.4Moz (106.3Mt at 1.29g/t) in January 2015 estimate

3. A junior miner is defined here as an explorer/developer or a producer with FY14 production of

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About Amara Mining plc

Amara is a gold explorer/developer with assets in West Africa. The Group is focused on unlocking the value in its development projects. At Yaoure in Côte d'Ivoire, this will be done by increasing the confidence in the existing Mineral Resource and economics at the project as Amara progresses it through to Pre-Feasibility Study and Bankable Feasibility Study. At Baomahun, this will be achieved by gaining an improved understanding of the exploration upside potential and underground opportunity. With its experience of bringing new mines into production, Amara aims to further increase its production profile with highly prospective opportunities across both assets.

CHAIRMAN AND CEO'S STATEMENT

It is a pleasure to present my first Annual Report in the dual role of Chairman and Chief Executive Officer of Amara Mining plc.

The weakness in the gold price over the past two years has created an attractive entry point for investors to buy into gold mining stocks. Companies with high quality assets are trading at the lowest levels seen for more than a decade, generating the opportunity for investors to ride the cycle upwards as the next gold bull market begins.

At the start of 2014, our Yaoure Gold Project in Côte d'Ivoire was just one of many gold development projects in West Africa. However, after the delivery of an outstanding PEA and another successful drilling programme, Yaoure is recognised as one of the most exciting projects in the region. With economics that remain strong at a gold price of US$1,000/oz and large scale production over a long mine life, we are developing a top African gold mine.

The Largest Gold Development Project in West Africa

The PEA, which was completed in March 2014, demonstrated that Yaoure is a highly economic gold project at current gold prices and remained robust at much lower prices. On this basis, Amara undertook an 85,574 metre drilling programme at Yaoure to increase the drill density, improving our geological knowledge and confidence in the Mineral Resource estimate. We believe it was the largest drilling programme in Africa at the time and it created over 420 jobs for local people in a variety of roles from junior geologist to laboratory technician, bringing skills and prosperity to the area.

The objective of the 2014 drilling programme was to upgrade a significant portion of the largely Inferred Mineral Resource base to the higher confidence Indicated category. We achieved this goal, reporting a 466% increase in Indicated resources. Within the economic pit shells, designed at gold prices of US$800 and US$950 per ounce, approximately 80% of the Mineral Resources are now in the Indicated category. It is these resources that are the focus of the PFS.

The drilling programme also increased the size of the Yaoure resource base by over half a million ounces compared to the December 2013 Mineral Resource estimate. This brings Yaoure's Mineral Resources to 6.8 million ounces, making it the largest gold development project in West Africa and delivering a discovery cost of just US$6/oz. It also brings Amara's total attributable Mineral Resources to 9.6 million ounces, the largest resource base of any London-listed junior gold mining company.[i]

Advancing Yaoure Towards a Pre-Feasibility Study

In conjunction with the drilling programme, Amara began work towards the next stage of economic study for Yaoure, the PFS. To supervise this process, we appointed Nigel Tamlyn, a mining engineer with over 30 years' experience in the construction and operation of mining projects. He has previously worked in Côte d'Ivoire for La Mancha Resources and in Ghana for Golden Star Resources. We expect to grow our development team around Nigel as we progress the project from PFS to BFS and then to a construction decision.

The PEA identified a number of optimisation opportunities and these are being investigated as part of the work towards the PFS and, ultimately, the BFS. They included amendments to the site layout and the use of electric shovels as part of the mining fleet to fully utilise the availability of low cost power at Yaoure. During 2014 we also conducted a comprehensive metallurgical test work campaign. The results indicate that Yaoure's rock is softer than previously thought, which may positively impact the process selection for the project. We expect this optimisation work to yield reductions in both the upfront capital cost and the operating costs of the project, confirming the compelling economics for Yaoure that are outlined in the PEA.

The metallurgical test work to be released as part of the PFS also confirms that Yaoure's material is simple and non-refractory, with recoveries remaining robust at around 90%. This is another important milestone in de-risking the Yaoure deposit.

Fully-Funded to Bankable Feasibility Study

In order to continue to drive Yaoure along the value curve, Amara completed a placing on 21 January 2015, which raised £14.6 million (US$22 million). As a result, Amara is fully funded to Q1 2016, including the delivery of a BFS in December 2015.

It was very encouraging that the fundraising received strong support from both new and existing investors, so much so that it was oversubscribed and upsized, which is an endorsement of Yaoure's potential. A leading mining-focused private equity fund, Tembo Capital Mining Fund LP ("Tembo Capital"), participated in the placing and now owns 5.9% of Amara's issued share capital, strengthening Amara's shareholder base. This is a further testimony to Yaoure's compelling economics and I was delighted that even in an unpredictable gold price environment the project received such strong backing to allow Amara to continue to unlock its value.

To maintain our strong financial position, Amara has continued to streamline our activities to reduce costs. Since 2012, Amara has delivered a 38% decrease in G&A costs from US$9.6 million per annum to US$5.9 million in 2014. This is the result of a 38% reduction in headcount in London, salary cuts by the Board, senior and middle management in H2 2013 and 2014 and other measures to conserve cash.

The majority of the proceeds of the placing are being used to advance Yaoure, with US$7.5 million assigned to further exploration and resource definition and US$2.4 million towards the BFS. US$0.8 million was also raised to expand Amara's technical team as we advance towards a construction decision.

A Second Compelling Growth Opportunity

Although Yaoure was our focus in 2014, the Baomahun Gold Project in Sierra Leone hosts a 2.8 million ounce Mineral Resource with a high grade core. Over the past few years I have been proud to witness Sierra Leone's development, with improving infrastructure and a growing mining industry. I am deeply saddened by the recent Ebola crisis, but I am pleased to see that recent statistics from the World Health Organisation indicate that the new infection rate has reduced substantially from its high in late 2014.

As a result of Ebola, Baomahun remained in an evaluation phase throughout the period. We plan to conduct further optimisation work on the existing Feasibility Study ("FS") to improve the economics, given the continuing tough market conditions. Initially this will be conducted through a re-examination of existing data, including re-logging of the core, to better understand and delineate the high grade core of the deposit. We believe that there are additional targets that could be delineated and tested as a result of this work. However the extent of the work in country is very much dependent on the abatement of the Ebola situation, which will be the subject of a risk assessment and discussion with our consultants.

We believe that Baomahun has the potential to be a second compelling growth opportunity for Amara. Alongside Yaoure, Baomahun will assist Amara in achieving its goal of becoming a mid-tier producer with production of between 350,000 and 400,000 ounces per annum at low operating costs.

Strengthening Relationships in West Africa

As we have continued to build our confidence in the Yaoure deposit through drilling and further metallurgical and engineering studies, we have also continued to strengthen our relationship with the communities living close to the project in Côte d'Ivoire. Our initiatives have centred on the three key focuses of education, healthcare and infrastructure development and have included projects such as building 16 latrines for three schools in nearby villages, re-profiling 8km of local roads and rehabilitating a water pump.

In Sierra Leone we have worked alongside the government and local people in the fight against Ebola. Amara continued to invest in the villages close to Baomahun during the past year, providing chlorine for hand washing, medicines, food and educational pamphlets to local people as well as donating vehicles to the government with funds to allow them to be converted into ambulances. We also maintained our investment in sustainable livelihood projects, such as rice and cassava farms and community fish ponds, in order to allow local people's lives to return to normal as soon as the Ebola situation improves.

In Burkina Faso, we have continued to work alongside the government and local communities during the liquidation of the subsidiary company that owns the Sega mine, Seguénéga Mining SA ("SMSA"). Despite one creditor seeking to delay the liquidation process, all preferential creditors, which include the employees of the Kalsaka/Sega Gold Mine ("Kalsaka/Sega") and the local people living nearby, received the remainder of the payments they were owed in December 2014. Management in Burkina Faso is fully focused on ensuring that the mine is closed in an efficient manner, with all environmental obligations fulfilled from a bonded bank account.

Well-Positioned for Growth

Finally, I would like to thank my fellow Board members for their enthusiasm, hard work and valuable guidance. 2014 was a year of considerable change for Amara as we transitioned from being a small-scale producer to an explorer/developer, but I believe this has crystallised where the value in the Group truly lies: in our growth assets.

I look forward to updating you on our continued progress over the course of 2015, including delivering the PFS in early Q2 2015 and the BFS in December. Despite the challenging market conditions, we have started 2015 in good shape and we are well positioned to deliver further growth, with the most robust portfolio of any gold growth company in West Africa.

OPERATIONAL REVIEW

YAOURE GOLD PROJECT, CÔTE D'IVOIRE

A Top African Gold Mine

Yaoure has the potential to be one of the top gold mines in Africa. With average production of 279,000 ounces/annum over a 10 year mine life in the PEA 6.5Mtpa scenario, it delivers a compelling IRR of 33% and an NPV of US$613 million at a gold price of US$1,250 per ounce and a discount rate of 8%[ii]. It is one of the few projects that remain resilient at a gold price of US$1,000 per ounce, with an IRR of 19% and a breakeven point of below US$800 per ounce. Yaoure is the largest gold development project in West Africa with 6.8 million ounces of Mineral Resources (106Mt at 1.29g/t for 4.4Moz Indicated and 63Mt at 1.19g/t for 2.4Moz Inferred) and significant exploration upside potential. Amara owns 100% of Yaoure through Amara Mining Cote d'Ivoire SARL.

Yaoure's location is highly advantageous for developing a large-scale gold mine due to its close proximity to the Kossou dam, which offers low-cost hydro-electric power and abundant water. It is situated 40km from a dual carriageway linking the political capital of Yamoussoukro with the commercial capital of Abidjan. As a brownfield site, relocation requirements are expected to be minimal, reducing the timeline from exploration to production. Amara intends to utilise this excellent existing infrastructure to full effect, minimising the upfront capital requirement for the project.

Largest Drilling Programme in Africa

Amara conducted a drilling programme between April and October 2014, which the Directors believe was the largest in Africa at the time. A total of 85,574 metres were drilled, including 2,957 metres of geotechnical drilling.[iii]

The results demonstrate the strong continuity of the higher grade CMA zone, which has the potential for selective mining at the start of Yaoure's mine life. They also confirm the presence of significant higher grade areas within the Yaoure Central zone, with intercepts including 17 metres at 7.3g/t and 5 metres at 17.0g/t.

Significant intercepts from 2014 Drilling Programme

466% Increase in Indicated Resources

The objective of the 2014 drilling programme was to increase confidence in the Mineral Resource estimate through closer spaced drilling. Thus the average drill spacing was reduced from 100m to 50m across the Yaoure deposit. Amara delivered two Mineral Resource updates in September 2014 and January 2015 based on these results. The second update resulted in a 466% increase in higher confidence Indicated resources compared to the December 2013 Mineral Resource update. The Indicated portion of the deposit contains the highest grade areas and will form the basis for Mineral Reserve definition.

The Mineral Resource remains strong at higher cut-off grades, with 3.1 million ounces (46.7Mt at 2.05g/t) above a 1.0g/t cut-off grade in the Indicated category. Amara used pit shells priced at US$800 per ounce and US$950 per ounce as the basis for the different scenarios of the PEA released in March 2014. Following the January 2015 Mineral Resource update, these pit shells remain robust, with almost 80% of contained gold within the Indicated category. This significant upgrade in categorisation of Mineral Resources substantially de-risked the Yaoure deposit and increased Amara's confidence in it.

Based on the drilling programmes undertaken between late 2011 and the end of October 2014, the average discovery cost per ounce at Yaoure is US$6/oz, which compares favourably to the average discovery cost in Africa in 2013 of US$33/oz[iv].

Amara also expanded the size of the resource, increasing the total Mineral Resource at Yaoure by 523,000 ounces compared to the December 2013 update. This brings Amara's total Mineral Resources to 9.6 million ounces, the largest resource base of any London-listed junior gold mining company.[v]

Yaoure Mineral Resource estimate within a US$1500 per ounce pit shell, including cut-off grade sensitivity, as of 5 January 2015

Yaoure Mineral Resource estimate within a US$950 per ounce pit shell, including cut-off grade sensitivity, as of 5 January 2015

Yaoure Mineral Resource estimate within a US$800 per ounce pit shell, including cut-off grade sensitivity, as of 5 January 2015

Notes to tables

1. The effective date of the Yaoure Mineral Resource estimates is 5 January 2015, prepared by Mario E Rossi, GeoSystems International, Inc.

2. The estimates assume an open pit mining scenario, processing via tank leaching. Pit slopes are 44º in oxide, 53º in sulphide. Recoveries have been assumed at 90%. Pit Optimisation was completed by A. Wheeler for all prices shown here.

3. Mineral Resources which are not Mineral Reserves do not have demonstrated economic viability.

4. There are no known environmental, permitting, legal, title, taxation, socio-economic, marketing, and political or other relevant issues that may materially affect the resource estimates.

5. Totals and average grades are subject to rounding to the appropriate precision and some columns or rows may not compute exactly as shown.

6. The stated resources include dilution in the block model that relates to the level of low selectivity envisioned in an open pit operation, assuming 10m bench heights.

Compelling PEA and Strengthened Technical Team in Advance of PFS

Amara completed a PEA for Yaoure in Q1 2014, which confirmed that Yaoure is a top tier gold development project and that it should be advanced to the next stage of engineering study and economic assessment, a PFS. The PEA examined a range of throughput scenarios, but the 6.5Mtpa scenario utilising a pit shell priced at US$800 per ounce proved to be the most economic, therefore the PFS will also be based on a 6.5Mtpa throughput.

Key Parameters of Yaoure PEA: 6.5Mtpa scenario

Nigel Tamlyn was appointed as Senior Project Manager for Yaoure and he is responsible for overseeing the PFS, which is expected in early Q2 2015 and the BFS in December 2015. As a graduate of the Camborne School of Mines and the University of the Witwatersand, Nigel is a mining engineer with over 30 years' experience in the construction and operation of mining projects. His work has spanned a variety of commodities, including gold, in West, South and East Africa, Australia, North America, Russia and Europe. Initially employed for 17 years by Gold Fields, he most recently held the position of Chief Operating Officer and Technical Director for TSX-listed La Mancha Resources, where he supervised the delivery of a number of National Instrument ("NI") 43-101 compliant technical reports for African gold mines. Prior to that, he was General Manager of TSX-listed Golden Star Resources' Bogoso Prestea gold mine in Ghana for three years.

Optimisation Opportunities for PFS

The PEA identified a number of optimisation opportunities for Yaoure and following its completion, Amara commenced work on a number of key areas to further improve the project economics. Nigel is overseeing this work, which includes a comprehensive metallurgical test work programme, and supervising Amara's external consultants including Tetra Tech, the lead consultant for the PFS.

The PFS will incorporate an upgraded plant design as a result of the metallurgical testwork results and optimised site layout. Other optimisation opportunities require longer to study and will be presented at a later date.

There may be potential for staged development and selective mining of the high grade CMA zone at the start of Yaoure's mine life, and the potential to process this material through a smaller plant, reducing upfront capital costs will be examined. While an initial understanding of this will be available at the PFS stage, it is anticipated that detailed costing and scheduling will not be completed until later in the year. In addition, opportunities will be explored to lower operating costs through a greater use of electrical power for mining and through the utilisation of dry tailings disposal.

As Amara continues to move the project towards a PFS and ultimately BFS, the Group will gain further understanding of these opportunities to ensure the optimal path for development is taken. This will be done in conjunction with our application for an exploitation (mining) licence.

Yaoure Exploration Strategy in 2015

The priority of Yaoure's exploration programme in 2015 is to support the advancement of the project through to a construction decision. Approximately 80% of the Mineral Resources within the US$950 per ounce pit shell are now in the Indicated category. Improving the understanding of mineralisation controls through closer spaced drilling will allow Amara to further upgrade the Mineral Resource to the Measured and Indicated categories.

Amara believes there remains significant exploration upside in and around Yaoure and accordingly there are three other key objectives for Yaoure's exploration team in 2015:

1. Opportunity to increase Yaoure's Mineral Resources through closer spaced drilling - historic reverse circulation drilling and rip line data, collected when Yaoure was being operated previously, has highlighted areas of the current block-model defined as waste where gold mineralisation may be present. While this data cannot be used within the current Mineral Resource estimate, it may indicate that by reducing the drill spacing in the Yaoure Central zone the estimate of total gold content could increase through demonstrating greater continuity of high and low grade areas. Undertaking this work is also expected to upgrade a portion of the Indicated resources to the Measured category, further increasing Amara's confidence in the deposit.

2. Opportunity to add further near-pit Mineral Resources - the 2014 drilling programme defined new structures at depth in the Yaoure deposit, which when projected through to surface coincide with artisanal mining activity. Drilling these structures up-dip may result in the discovery of additional near-surface ounces, which could be used to expand the current pit shell and further improve Yaoure's profitability.

3. Opportunity to gain a better understanding of long-term regional potential - Utilising Amara's increased knowledge of gold genesis and mineralisation controls from the Yaoure deposit, the Company has embarked on a regional target generation programme, initially utilising geophysics and soil geochemistry. The Yaoure resource area is contained in only a small portion of Amara's total exploration licences and soil geochemistry and structural mapping have identified other areas similar to the resource area. Through further geological mapping, trenching and soil sampling, Amara intends to identify drilling targets with the potential to deliver satellite deposits for Yaoure.

BAOMAHUN GOLD PROJECT, SIERRA LEONE

High Grade Deposit with Upside Potential

Baomahun is a feasibility stage, Archean-age gold project in central Sierra Leone, with a high grade core and grades that strengthen at depth. With 1.21 million ounces of Probable Reserves (23.27Mt at 1.62g/t) and Mineral Resources of 2.24 million Indicated ounces (38.4Mt at 1.81g/t) and 0.54 million Inferred ounces (6.6Mt at 2.2g/t), it forms a second strong growth opportunity for Amara. Amara owns 100% of Baomahun through Baomahun Gold Limited.

The FS, which was completed in Q2 2013, demonstrated that the project is robust and economically viable at a gold price of US$1,350 per ounce[vi]. Amara is now focused on gaining a better understanding of the project with the aim of delivering the same strong returns in the current uncertain gold price environment.

Baomahun Mineral Reserves and Mineral Resources, both as of 19 November 2012

Notes to Mineral Resources and Reserves

1. CIM definitions were used for Mineral Resources and Mineral Reserves

2. Mineral Resources are not Mineral Reserves and do not have demonstrated economic viability

3. A cut-off grade of 0.5g/t was applied within a US$1,500/oz open pit shell and a 2.0g/t cut-off for Mineral Resources suitable for underground mining. The resources suitable for underground mining are not included in the FS. The Mineral Reserve is reported at a cut-off grade of 0.5 g/t Au at a gold price of US$1,100/oz

4. The Mineral Resource is inclusive of the Mineral Reserve. The Mineral Reserve was estimated by construction of a block model within constraining wireframes and based on Indicated Resources

5. Mining dilution of 5% was added to the Mineral Reserve

6. The Mineral Reserves were estimated based on the NI 43-101 Mineral Resources, both effective as of 19 November 2012

7. A 93.4% metallurgical gold recovery was used for the Mineral Reserve

8. Due to rounding, some columns or rows may not add up exactly to the computed totals

First Phase of Optimisation Work Complete

Smaller Open Pit and Plant

In January 2014 Amara announced the results of the first phase of optimisation work for the FS[vii]. This work focused on 'right-sizing' the plant to the deposit to reflect the current market conditions and the outlook for the gold price. The desk top study demonstrated that a 1Mtpa plant would allow for the selective mining of the deposit's higher grade core in a smaller open pit and enable longer term mine feed from underground sources, ensuring that the full potential of Baomahun's Mineral Resource is unlocked.

Transformational Underground Opportunity

Through the exploitation of Baomahun's underground as well as the open pit, there is the opportunity to extend the current 10 year LOM and boost production in year 7 onwards. Based on the scoping study conducted by independent consultants, Snowden Mining Industry Consultants Pty Limited, the inclusion of material from the underground potentially transforms Baomahun's economics, with the post-tax IRR increasing to 25% and the post-tax NPV to US$192 million at a US$1,250 gold price. The LOM doubles to 20 years, with an average production rate of 90,000 ounces per annum for the first 16 years. The deposit remains open at depth, which further increases the opportunity for a stable, long-term producing gold mine in Sierra Leone.

Key Parameters of Baomahun FS and Optimisation Work

Strategy for Baomahun in 2015

Following the announcement of the optimisation work in January, Baomahun remained in an evaluation phase for 2014 due to the Ebola outbreak in Sierra Leone. Amara had planned to commence a small-scale drilling programme at Baomahun in 2014 to enhance the Group's understanding of the continuity of the high grade core of the deposit, but this course of action was not possible due to the situation in country.

Encouragingly, the World Health Organisation's statistics demonstrate that the rate of new infections in Sierra Leone has decreased substantially from its highs of late 2014, with 63 new cases reported in the week commencing Sunday 22 February 2015 compared to over 530 new cases in the week commencing 7 December 2014. New infection rates in the other two affected countries, Liberia and Guinea, have decreased further still.

The focus of Amara's efforts at Baomahun will be to gain a greater understanding of the high grade core of the deposit and to evaluate the potential to grow the 2.8Moz Mineral Resource. The first step towards achieving these objectives will be to re-log the core, ensuring a thorough geological understanding has been gained from the extensive drilling completed to date. The next step will be to undertake a small-scale, low cost drilling programme, if appropriate, aiming to demonstrate greater continuity of the high grade mineralisation of the deposit, increasing in-pit resources and de-risking the project.

In addition, Amara will gain a more thorough understanding of Baomahun's underground opportunity by evaluating the optimal place in the orebody to transition between open pit and underground mining and the most optimal underground mining strategy. While the FS focused on the lower grade halo surrounding the higher grade core, Amara will now channel its efforts to advancing the case for a smaller, higher grade scenario for Baomahun, which will be fed initially by the open pit and subsequently by the underground mine.

Amara believes that Baomahun has the potential to be a compelling second project for the Group. Once Yaoure is in steady state production it will generate strong cash flow which could be used for the development of Baomahun. Through further optimisation work it is expected that Baomahun's production could increase from an average production rate of 90,000 ounces over a 16 year LOM in the combined open pit and underground 1Mtpa scenario to closer to 100,000 ounces per annum. Alongside Yaoure, Baomahun will assist Amara in achieving its goal of becoming a mid-tier producer with production of between 350,000 and 400,000 ounces per annum at low operating costs.

FINANCIAL REVIEW

2014 marked an important transition for Amara with the closure of the Kalsaka/Sega mine in Burkina Faso and the emergence of Yaoure as the Group's flagship development project. With the underperformance of Kalsaka/Sega in 2013 and 2014, driven by the weakening gold price, the closure represents a simplification of the Group and it allows management to focus on the true value within the development assets.

Kalsaka/Sega Closure

As reported on 5 August 2014, mining ceased at Kalsaka/Sega following receipt of a default notice to SMSA, the operating company for the Sega mine, from BCM Burkina SARL ("BCM"), the mining contractor, due to overdue invoices. Prior to the cessation of mining, the mine had been operating on a break-even basis at the EBITDA level, an improvement compared to 2013. However, the mine had required funding from the Company for capital expenditure and had generated a higher level of creditors than normal due to cash locked up in working capital associated with the heap leach inventory and recoverable VAT.

Production Statistics

At the time of the default notice, high grade ore was being mined at Sega, but this had not yet delivered strong gold flow from the heaps due to the nature of the heap leach cycle. This replaced lower grade ounces in the heap that had been stacked in the preceding months from an area of the resource that had underperformed the original block model. BCM requested a parent company guarantee for the debts of SMSA from Amara Mining plc, which was not included in the original mining contract and could not be provided, leading to the notice of default.

A liquidator has now been appointed for SMSA by the courts in Burkina Faso to manage the unlocking of the working capital to generate funds to repay creditors. The remaining ore in the stockpiles from Sega are now being stacked and it is expected that it will take a further six months to recover all the gold due to the leach cycle. In addition, significant amounts of VAT are recoverable by SMSA which should allow SMSA to make significant payments to all creditors.

SMSA was removed from the consolidation with effect from 9 December 2014 on appointment of the liquidator. The remaining Burkina entities have been presented as a disposal group held for sale in the Group Financial Statements following the commitment of the Company's board to sell these operations on 4 December 2014. Kalsaka Mining SA ("KMSA") controls the processing plant for the Kalsaka/Sega mine which, along with the exploration portfolio, is currently being marketed for sale and a transaction is expected within 12 months. A full provision has been made against the net assets of the disposal group due to the uncertainty concerning the recovery of full value of some amounts or the ability of Amara to generate proceeds from the sale process. The whole of the Burkinabe group has been treated as a discontinued operation in the income statement.

In addition, BCM has initiated preliminary legal proceedings in Burkina Faso claiming joint and several liability of Amara Mining plc and KMSA for the debts of SMSA. They have also claimed a conservatory seizure over certain assets directly owned by the Company in Côte d'Ivoire pending the outcome of the Burkina Faso litigation. Amara has obtained detailed legal advice that supports the Directors' view that this action is highly unlikely to succeed and that this does not constitute a contingent liability in accordance with IAS 37 Provisions, Contingent Liabilities and Contingent Assets. It is not expected that the dispute will result in a material outflow of economic benefits for the Company.

Accounts Review

With the closure of the Kalsaka/Sega mine, the presentation of the Group's income statement for 2014 is materially different from 2013, with all of the revenue and costs associated with the mine presented in a single loss from discontinued operations. Only the G&A costs of the Group, together with interest income and expenses, are set out on the face of the income statement. The US$20m loss reported in 2014 primarily relates to the discontinued Burkinabe entities, and it is expected that a much smaller loss will be announced in 2015.

The Group's balance sheet at 31 December 2014 is also simplified compared to the previous year, with all assets and liabilities associated with the disposal group included as a single item within current assets and current liabilities as appropriate. The Group's remaining assets relate primarily to the investment at the Yaoure and Baomahun projects, which total US$47 million and US$86 million respectively. In addition to trade and other payables, the Group continues to recognise an environmental liability representing the historic mining activity at the Yaoure project totalling US$3 million, which is likely to be incurred either during the construction of, or on the closure of, the much larger Yaoure development currently being contemplated.

During 2014 Amara's cashflow has primarily been invested in Côte d'Ivoire to further the Yaoure property, delivering the PEA in March 2014 and two Mineral Resource updates in September 2014 and January 2015. A total of US$19.6 million was invested in 2014, of which US$17.4 million (89%) was invested at Yaoure. The Samsung debt facility, which totalled US$13.3 million at 1 January 2014, was fully repaid leaving the Group debt free.

Fully Funded to Bankable Feasibility Study

The most important financial issue in the current market is the availability of cash to allow the PFS and BFS at Yaoure to be completed. On 21 January 2015, post the period end, Amara announced a placing to raise £14.6 million (US$22 million), leaving the Group fully financed to deliver these goals in 2015. Amara was fully funded to deliver the PFS following the previous placing in March 2014, however some of the Company's largest shareholders had told the directors that they did not want the cash position to get too low in the weeks preceding the delivery of the PFS. They felt this would leave Amara vulnerable at a time when it was important that Yaoure was advanced as rapidly as possible.

The oversubscribed and upsized placing was supported by new and existing investors and mining-focused private equity fund, Tembo Capital, joined the register, buying approximately 5.9% of the Company's issue share capital (post admission of the placing shares). This was a further endorsement for the project. Of the placing proceeds, US$2.5 million is assigned to the technical work for the BFS and US$7.5 million will be used for further exploration and resource definition at Yaoure.

AMARA MINING PLC

CONDENSED CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME

for the year ended 31 December 2014

1Comparative results have been amended to reflect the results of the Burkinabe and Liberian operations within the loss for the year from discontinued operations, net of tax, as per the requirements of IFRS 5 - Non-current assets held for sale and discontinued operations.

AMARA MINING plc

CONDENSED consolidated statement of financial position

As at 31 December 2014

AMARA MINING plc

CONDENSED consolidated statement of changes in equity

For the year ended 31 December 2014

ATTRIBUTABLE TO EQUITY HOLDERS OF THE PARENT

AMARA MINING plc

CONDENSED consolidated statement of cash flows

For the year ended 31 December 2014

Cash flows from discontinued operations have been presented in note 8

Included in cash and cash equivalents is US$2,997,000 (2013: US$3,359,000) in respect of a restricted bank account held for the purposes of the rehabilitation of Kalsaka mine site in Burkina Faso.

AMARA MINING plc

notes to the condensed consolidated FINANCIAL STATEMENTS

For the year ended 31 December 2013

1 FINANCIAL STATEMENTS

The financial information set out above does not constitute the company's statutory accounts for the years ended 31 December 2014 or 2013. The financial information for 2014 and 2013 are derived from the statutory accounts for 2014 and 2013. The auditor has reported on both the 2014 and 2013 accounts; their reports were (i) unmodified, (ii) did not include a reference to any matters to which the auditor drew attention by way of emphasis without qualifying their reports and (iii) did not contain a statement under section 498 (2) or (3) of the Companies Act 2006.

The 2013 statutory accounts have been delivered to the registrar of companies; the 2014 accounts will be filed in due course.

Full financial statements for the year ended 31 December 2014 will shortly be published on the Groups website at www.amaramining.com and posted to shareholders and, after adoption at the Annual General Meeting on 3 June 2015, they will be delivered to the registrar.

2 BASIS OF PREPARATION, ACCOUNTING POLICIES AND GOING CONCERN

Whilst the financial information included in this preliminary announcement has been presented in accordance with International Financial Reporting Standards as adopted by the EU (IFRS), this announcement in itself does not constitute full compliance with IFRS. Details of the accounting policies are those set out in the annual report for the year ended 31 December 2013. These accounting policies have remained unchanged for the financial year ended 31 December 2014 except for those new standards issued and adopted in the year.

The Group is involved in the acquisition, exploration, development and operation of gold mines and resources in West Africa.

The Directors regularly review cashflow forecasts to determine whether the Group has sufficient cash reserves to meet future working capital requirements, progress its exploration projects and take advantage of business opportunities that may arise. The Group manages its treasury function to ensure that cash is primarily held in politically stable countries. This minimises the risk of political events preventing the Group from continuing to make payments required for the Group's operations to continue.

On 6 February 2015 the Company completed a fund raising for £14.6m. Based on subsequent forecast cash flows the Directors are satisfied that the Group has sufficient cash resources to meet its financial obligations, in particularly the exploration and development costs of its projects, as they fall due for the foreseeable future. Accordingly the Directors have concluded that it is appropriate for the financial statements to be prepared on a going concern basis

3 DIVIDENDS

The directors do not recommend the payment of a dividend (2013: nil).

4 SEGMENTAL REPORTING

Operating segments have been identified on the basis of internal reports about components of the Group that are regularly reviewed by the Group's chief operating decision maker. The Group's chief operating decision maker is considered by management to be the Board of Directors. The operating segments included in internal reports are determined on the basis of their significance to the Group. In particular, operating mines are reported as separate segments together with exploration projects that have significant capitalised expenditure. An analysis of the Group's business segments is set out below.

The Kalsaka/Sega operating segment was discontinued during the year - details are provided in note 8.

The segmental result reported represents earnings before interest, tax, depreciation and amortisation (EBITDA) and excludes share option charges, which is the measure of segmental profit regularly reported to the Board of Directors. The accounting policies of the reporting segments are different from the Group's accounting policies as follows:

· Pre-commissioning income and expenditure at operating mines is not capitalised in the segmental results.

· Income is accrued for gold bullion on hand at the period end in segmental results and, accordingly, no stock is recognised for this item.

· The depreciation charge against segmental assets is based on a different total asset cost compared to the statutory accounts due to the fact that income and expenditure is not capitalised during the commissioning period. In addition, the total asset cost is depreciated from the commencement of mining operations.

4 SEGMENTAL REPORTING (continued)

A reconciliation of segmental revenue to the statutory financial statements is as follows:

A reconciliation of EBITDA to loss for the year is as follows:

A reconciliation of segmental assets to the statutory financial statements is as follows:

Geographic information

All assets of the Burkina Faso segment are shown within the disposal Group held for sale; accordingly none are included in the non-current assets of the Group.

1 None of the share options in issue are dilutive at the current share price.

Included above is an amount of US$81.3m in relation to the Baomahun Gold Project. A further US$4.9m is included within Property Plant and Equipment in Note 7 relating to Baomahun. These amounts are recoverable through the exploitation or sale of the project. In order to recover this amount through exploitation significant additional funds would be required to construct an operating mine.

Also included above is US$46.1m in relation to the Yaoure Gold Project. A further US$0.9m is included within Property Plant and Equipment in Note 7 relating to Yaoure. Yaoure faces the same risk as described above for Baomahun.

8 DISCONTINUED OPERATIONS

In August 2014 the company announced the cessation of mining operations at the Kalsaka/Sega gold project in Burkina Faso. One subsidiary, Seguenega Mining SA, was placed into liquidation on 9 December 2014 and has been deconsolidated at that date. The remaining controlled subsidiaries have been classified as held for sale as disclosed in note 9.

On 1 September 2014 the assets of ADS (Liberia) Inc were sold and the company was placed into formal dissolution on 20 October 2014.

As at 31 December 2013 these reporting segments were not discontinued or classified as held for sale, accordingly the comparative consolidated statement of comprehensive income has been represented to show the discontinued operations separately from the continuing operations.