Asa Resources Regulatory News (ASA)

NOT FOR RELEASE, PUBLICATION OR DISTRIBUTION, IN WHOLE OR IN PART, IN OR INTO ANY JURISDICTION WHERE TO DO SO WOULD CONSTITUTE A VIOLATION OF THE RELEVANT LAWS OF THAT JURISDICTION.

27 October 2010

Mwana Africa PLC

("Mwana" or the "Company") (AIM: MWA)

Proposed Placing

Commencement of the Phase 2 expansion programme at Freda Rebecca

Mwana Africa PLC is pleased to announce that it has conditionally placed 46,367,401 new ordinary shares of 10 pence each ("Placing Shares") at a price of 11 pence per Placing Share (the "Placing Price") with certain institutional and other investors to raise £5.1 million ($8.0 million) before expenses (approximately £4.8 million or $7.6 million net of expenses) ("the Placing"). Ambrian Partners Limited acted as broker to Company in connection with the Placing.

The net proceeds of the Placing, together with existing cash of $2.5 million (as at 15 October 2010, excluding cash held by BNC) will fund the immediate commencement of the Phase 2 expansion programme at Freda Rebecca, allowing the Company to capitalise on the current gold price environment. In addition, funds will allow ongoing exploration at the Zani-Kodo gold project and SEMHKAT base metals project, and provide additional general working capital.

Freda Rebecca Gold Mine

Commercial production at Freda Rebecca recommenced in October 2009, following completion of the first phase of a two-phase refurbishment programme. While the refurbished plant has performed well, production in Phase 1 was until recently hampered by poor availability and reliability of the mining fleet, leading to a slower than expected production ramp up. With an expanded mining fleet now in place, and 11,920 oz produced in the 7 months to September, of which 2,600 oz was in September alone, the Phase 1 annualised production target of 30,000 oz per annum is close to being consistently achieved. Mwana intends to complete the second phase of the refurbishment programme, which should enable an increase in production to a target rate of 50,000 oz per annum.

Preparatory works on Phase 2 have been completed with the scope of works defined, sub-contractors identified, mine technical team in place and low cost rehabilitation works ongoing.

The costs of the second phase of the refurbishment programme involving the commissioning of a second mill and leach circuit and further expansion of the underground fleet are estimated to be approximately $5.0 million and the Directors believe phase 2 will be immediately value accretive.

Bindura Nickel Corporation

Mwana Africa holds a 52.9 per cent. interest in BNC. The remaining shares are held by entities related to the government of Zimbabwe and by private and institutional investors. BNC is listed on the Zimbabwe Stock Exchange.

The Company has developed detailed plans for the resumption of operation at Trojan, and appointed SRK Consulting (UK) Ltd ("SRK") to conduct an independent technical review of these plans. The results of SRK's review, which supports BNC's findings, were announced on 10 August 2010. The Company is currently in negotiations with various parties in respect of debt financing arrangements which should allow BNC to conclude financing arrangements required for the restart of the Trojan mine and concentrator.

Exploration

Mwana has two principal exploration programmes at the Zani-Kodo gold prospect in north-eastern DRC, and at the SEMHKAT base metals concessions in the Katanga province of the DRC.

Results from the drilling programme at Zani-Kodo continue to demonstrate the potential scale of the deposit, and Mwana intends to maintain the pace of exploratory drilling, while undertaking an initial scoping study for the project. Of the proceeds, $2.0 million will be applied to the ongoing exploration programme at Zani Kodo.

While the exploration programme at SEMHKAT is at a relatively early stage, the scale of the Company's land holding and the location of the concessions, in close proximity to several world class deposits, underpin Mwana's confidence in the prospects for its exploration programme in the region. This has been confirmed by the recent drilling results. Of these proceeds $1.5 million will be applied to this exploration programme.

Settlement and dealings

Application is being made to the London Stock Exchange for the Placing Shares to be admitted to trading on AIM ("Admission"). It is expected that such Admission will become effective and that dealings will commence on 1 November 2010. The Placing is conditional, inter alia, upon Admission and is not underwritten.

The Placing Shares will, when issued, rank pari passu in all respects with the existing Ordinary Shares, including the right to receive dividends and other distributions declared following Admission. It is expected that CREST accounts will be credited on the day of Admission and that share certificates (where applicable) will be dispatched by first class post, at the risk of shareholders, by 15 November 2010.

Following Admission of the Placing Shares, Mwana's issued share capital will consist of 532,475,160 Ordinary Shares (excluding 2,666,600Ordinary Shares, which are currently held by Mwana in treasury, and in respect of which no voting rights may be exercised). As such, the total number of Ordinary Shares in Mwana to which voting rights are attached on the basis of one vote per Ordinary Share held will be 532,475,160.

The above total voting rights figure may be used by shareholders as the denominator for the calculations by which they will determine whether they are required to notify their interests in, or a change to their interest in, the Company under the FSA's Disclosure and Transparency Rules.

Commenting, Kalaa Mpinga, CEO of Mwana said:

"We are pleased to have the continued support of our shareholders to move forward with our gold projects covering both production and exploration activities. At Freda Rebecca we are proud to be returning an important gold asset to significant levels of production and to be leading a resurgence in gold production in Zimbabwe thus assisting the revival of the country's economy. We believe that the Phase 2 investment in Freda Rebecca will be immediately value accretive to shareholders. We are confident that our gold exploration in the DRC will continue to enhance value for our shareholders"

For further information, please visit www.mwanaafrica.comor contact:

Mwana Africa PLC Tel: +44 (0)20 7654 5580

Oliver Baring - Executive Chairman

Nominated Adviser and Broker

Ambrian Partners Limited Tel: +44 (0) 20 7634 4700

Richard Swindells / Jen Boorer

Public Relations

Merlin Tel: +44 (0)20 7726 8400

David Simonson / Anca Spiridon

Ambrian Partners Limited, which is authorised and regulated in the United Kingdom by the Financial Services Authority, is acting as Nominated Adviser and broker to the Company in connection with the matters described in this announcement. Persons receiving this announcement should note that Ambrian Partners Limited will not be responsible to anyone other than the Company for providing the protections afforded to clients of Ambrian Partners Limited or for advising any other person on the arrangements described in this announcement. Ambrian Partners Limited has not authorised the contents of, or any part of, this announcement and no liability whatsoever is accepted by Ambrian Partners Limited for the accuracy of any information or opinions contained in this announcement or for the omission of any information.

The Placing Shares will not be registered under the United States Securities Act of 1933 (as amended) or under the securities laws of any state of the United States or qualify for distribution under any of the relevant securities laws of Canada, Australia or Japan nor has any prospectus in relation to the Placing Shares been lodged with or registered by the Australian Securities and Investments Commission. Accordingly, subject to certain exceptions, the Placing Shares may not be, directly or indirectly, offered, sold, taken up, delivered or transferred in or into the United States, Canada, Australia or Japan. This announcement is directed and issued only to the shareholders of Mwana and their representatives and shall not be distributed to or used by any other person. Overseas shareholders and any person (including, without limitation, nominees and trustees) who have a contractual or other legal obligation to forward this announcement to a jurisdiction outside the United Kingdom should seek appropriate advice before taking any action.

This document does not constitute or form part of any offer or invitation to sell, or any solicitation of any offer to purchase nor shall it (or any part of it) or the fact of its distribution, form the basis of, or be relied on in connection with, any contract therefore. The Placing and distribution of this document and other information in connection with the potential capital increase in certain jurisdictions may be restricted by law and persons into whose possession any document or other information referred to herein comes should inform themselves about and observe any such restriction. Any failure to comply with these restrictions may constitute a violation of the securities laws of any such jurisdiction.

No person has been authorised to give any information or to make any representations other than those contained in this announcement and, if given or made, such information or representations must not be relied on as having been authorised by the Company. In addition, no agent or representative of the Company accepts any responsibility whatsoever for the contents of this document and no representation or warranty express or implied, is made by any agent or representative as to the information set out in this document. The issue of this announcement shall not, in any circumstances, create any implication that there has been no change in the affairs of the Company or any of its subsidiaries or affiliates, since the date of this announcement or that the information in it is correct as at any subsequent date.

Neither the content of Company's website (or any other website, including but not limited to the websites of the Company's subsidiaries or affiliates) nor the content of any website accessible from hyperlinks on the Company's website (or any other website, including but not limited to the websites of the Company's subsidiaries or affiliates) is incorporated into, or forms part of, this announcement.