Asa Resources Regulatory News (ASA)

20th October 2010

Mwana Africa PLC

Operations and Exploration Update

Mwana Africa PLC ("Mwana" or "the Company") is pleased to provide an update on operations and exploration activity.

Highlights

·; Freda Rebecca: gold production of 2,600oz in September, nears consistent Phase 1 target rate of 30,000oz per annum; 11,920oz produced March-September, generating $14.8m in revenue

·; Debt and off-take terms for Bindura restart programme under negotiation

·; Zani Kodo exploration programme: identification of gold mineralisation at predicted locations on the Zani-Kodo trend; confirmation of geological model and identification of potential for significant mineralisation along the complete 9km strike length of the trend

·; Semkhat Kibolwe: Encouraging drill results

Freda Rebecca Gold Mine

Production operations recommenced at Freda Rebecca a year ago with the completion of the first phase of a two phase refurbishment programme. Early production difficulties were caused by the poor availability of the refurbished mining fleet. This was addressed in July with the purchase of two new haul trucks. Since then production tonnage, grade and recovery has made steady progress towards target.

Since March 2010, 11,920 ounces were produced generating $14.8m in revenue. In September 2,600 ounces were produced, exceeding the Phase 1 production target rate of 30,000 ounces p.a. and we believe that the operation is now close to consistently achieving this rate.

Operational focus has been on the deployment of additional new dump trucks, the rehabilitation of underground loaders and the appointment of key engineering personnel.

Preparatory work has commenced on the Phase 2 mill refurbishment. Loan finance from Industrial Development Corporation of South Africa (IDC) remains undrawn pending completion of final conditions to drawdown.

For figures 1-3, please click on the link below

http://www.rns-pdf.londonstockexchange.com/rns/6641U_-2010-10-19.pdf 

Bindura Nickel

August saw the completion of the SRK report on the restart of production at the Trojan mine. This has enabled the Company to start negotiations for off take terms and for the provision of debt finance. Two indicative term sheets have been received and these are currently the subject of negotiation.

In anticipation of the re- start of operations the Company has been actively engaged in carrying out a program of works aimed at overhauling certain key components of engineering and operational infrastructure. These works funded from BNC balance sheet, included the main pumping arrangements, ventilation fans and a replacement program of shaft guides. On surface the waste handling system has been re-engineered together with a major overhaul of the surface secondary and tertiary crushers.

Preparatory work for the restart of operations has included the commencement of limited underground development (approximately 500m development completed) allowing the commissioning of underground LHDs, rigs and associated mining and engineering services together with shaft systems. Ore and waste hoisted to surface has allowed the successful hot commissioning of the surface waste conveyors and ore crushing facilities.

The objective of the program has been to de-risk the planned restart program in anticipation of project funding.

The management team at BNC has been retained during care and maintenance and have been re-mobilised and actively engaged in the pre-start program.

Zani Kodo

Since the announcement in July 2010, which reported a combined indicated and inferred resource of 1.25Moz @ 3.53g/t at the Kodo Main area, exploration activity has focused on delineating mineralisation along strike extensions of the Zani-Kodo mineralised trend (Figure 4). The trend is defined along the sheared contact between a footwall metagreywacke and a black shale/ banded iron formation unit. Two areas are currently being drilled:

Le Badolite

1km to the south of Kodo the contact was interpreted to occur at the Badolite area based on field mapping and aeromagnetic interpretations (Figure 4). To date a total of 400m strike length has been tested but the zone remains completely open along strike to the south. A further 700m strike length is present between Badolite and Zani Central where a single exploratory hole in 2008 intersected 26m @ 1.31g/t (Figure 4).

The zone is also open at depth and a hole has been planned on the eastern flank of Mt Zani to attempt to intersect the Badolite mineralised zone at depth (Figure 6). If successful this will define a 900m down dip continuity to the zone. This compares to the 450m downdip continuity currently drilled at Kodo Main which remains open at depth.

The area is masked by scree cover so no significant artisanal activity has occurred here. Drilling successfully intersected the predicted metagreywacke-black shale contact and a near surface mineralised zone with results as below:

Table 1: Drilling results, Badolite area.

The position of the intersections is shown in Figure 5.

The mineralised zone follows the bedding parallel shear zone at the upper contact of the competent metagreywacke unit and dips to the NE at 50° (Figure 6).

Kodo North Extension

This target is located to the north of Kodo, where the mineralised contact has been offset by a NE trending fault (Figure 4). Thick scree cover (2-20m) is present in the area so the predicted position of the mineralised trend was defined from aeromagnetics and an understanding of the local stratigraphy. A fence line of holes has been drilled and the metasandstone-BIF contact has been intersected. A 20-40m wide zone of intense shearing and silicification with visible sulphide mineralisation has been intersected. Assay results are awaited.

Semkhat - Kibolwe

Recent drilling (results summarised below) has identified a secondary enriched sediment-hosted stratiform copper deposit hosted by Mines sub-group rocks in a near-surface, flat-lying mineralised zone up to 40 metres thick extending over a strike of 1,500 metres. Mineralization west of the Kibolwe Main copper clearing is open-ended and further drilling programmes have been planned to test the western extensions of the deposit.

For figures 4-6, please click on the link below:

http://www.rns-pdf.londonstockexchange.com/rns/6641U_-2010-10-19.pdf 

Enquiries:

Oliver Baring, Executive Chairman Tel: 020 7654 5588

Mwana Africa PLC

David Simonson/ Anca Spiridon Tel: 020 7653 6620

Merlin

Richard Swindells / Jen Boorer Tel: 0207 634 4856

Ambrian Partners Limited

(Nominated Adviser and Broker)

Charl du Plessis, Executive Vice President Exploration of Mwana Africa, who holds a PhD and is a Member of the AusIMM, is a 'Qualified Person' as defined in the AIM Rules and under NI 43-101, and the exploration and resource development information contained in this press release has been reviewed by Dr Du Plessis. Mineral resource estimates included herein are presented in accordance with the JORC Code. If presented in accordance with the CIM Definition Standards on Mineral Resources and Mineral Reserves adopted by the CIM Council, the mineral resource and mineral reserve presentation would be materially the same.