Central Asia Metals Regulatory News (CAML)

6 January 2016

Central Asia Metals plc

("CAML" or the "Company")

2015 production update and 2016 outlook

Central Asia Metals plc (AIM: CAML) today provides a Q4 and full year 2015 production update, together with 2016 production guidance, for the Kounrad dump leach, solvent extraction and electro-winning (SX-EW) copper recovery plant in Kazakhstan ("Kounrad").

Summary

· Record annual copper production of 12,071 tonnes in 2015 (8.4% YoY increase);

· 2015 C1 cash cost guidance, US$0.65 to US$0.70 per pound;

· 2016 production guidance, 13,000 to 14,000 tonnes;

· 2015 C1 cash costs expected to continue into 2016;

· Cash as of 31 December 2015, US$42m.

2015 Kounrad copper production and sales

During Q4 2015, CAML produced 3,661 tonnes of copper from Kounrad (Q4 2014: 2,701 tonnes, 35% QoQ increase), bringing the total copper production for 2015 to 12,071 tonnes. This compares to production of 11,136 tonnes for 2014 and represents an 8.4% increase year on year.

The company sold 12,040 tonnes of copper cathode during 2015 (2014: 11,160 tonnes). These sales were predominantly through off-take arrangements with Traxys, which has been retained as CAML's offtake partner through to 31 December 2018, following a competitive tender process. The agreed terms with Traxys will provide additional cost savings to CAML and have been fixed for the 3 year period.

As of 31 December 2015, CAML's cash position was US$42m.

2015 C1 cash cost guidance

CAML reported a C1 cash cost of US$0.74 per pound for H1 2015, and now expects FY 2015 C1 cash costs of between US$0.65 and US$0.70 per pound. This cost reduction is due to a combination of efficiency improvements, increased copper production and the devaluation of the local currency.

2016 production guidance

The Company is now targeting increased copper production for 2016 to between 13,000 and 14,000 tonnes, having completed the expansion of the Kounrad SX-EW plant capacity (Stage 1) in May 2015, ahead of schedule and below budget.

Consistent monitoring and analysis of the copper leaching rate since production commenced in April 2012 indicates that the recovery of copper from the dumps is taking slightly longer than originally projected. The Company remains confident of producing the same total tonnage of copper from the Kounrad resource as previously estimated, thereby extending the life of the operation beyond 2030.

The SX-EW plant's increased nominal capacity of 15,000 tonnes per annum is predicated on two inputs; the throughput volume of pregnant leach solution ("PLS") to the plant from the dumps and the grade of copper within the solution. The plant is now capable of handling up to 1,200m3 of PLS per hour and this throughput was achieved in Q3 2015. Due to the seasonal temperature variations at Kounrad, the average annualised throughput is estimated at approximately 80% of design.

The combination of a longer leaching cycle, seasonal variations to the volume of PLS and a stabilisation of the long run PLS grade means that the company believes a production guidance range of between 13,000 and 14,000 tonnes of copper cathode is more appropriate to ensure sustainable copper production over an extended period.

The company is confident that 2016 C1 cash costs will be maintained within the FY 2015 guidance range of US$0.65 and US$0.70 per pound.

Nick Clarke, Chief Executive Officer commented:

"Once again, we are pleased to report record annual copper production in 2015 and to also provide production guidance for the year ahead. With our expansion plans to the western dumps commencing in March 2016, copper production is ensured for many years.

Our cost discipline combined with the weakening of the Kazakh Tenge has significantly reduced the cost base of the operation. We are confident that we can continue to generate positive cashflows from the operations at Kounrad despite market headwinds, which have seen copper prices drop to a six year low in 2015.

In turn, this means that our key objective of delivering value to our shareholders can be maintained and our dividend policy of returning a minimum of 20% of the annual gross revenues remains robust. Since production commenced in 2012, we have averaged returns to shareholders in excess of this minimum.

Our 2015 annual results are scheduled to be announced on 11 April 2016, when our final dividend will be declared."

For further information contact:

Note to editors:

Central Asia Metals, an AIM-listed UK company based in London, owns 100% of the Kounrad SX-EW copper facility in Kazakhstan. The Company also has a 75% equity interest in Copper Bay Ltd, which is a private company conducting a definitive feasibility study of the Chañaral Bay Copper Project in Chile. For further information, please visit www.centralasiametals.com.