Central Asia Metals Regulatory News (CAML)

12 April 2018

CENTRAL ASIA METALS PLC

('CAML' or the 'Company')

Q1 2018 Operations Update

Central Asia Metals plc (AIM: CAML) today provides a Q1 2018 operations update for the Kounrad dump leach, solvent extraction and electro-winning ('SX-EW') copper recovery plant in Kazakhstan ('Kounrad') and the Sasa zinc-lead mine in Macedonia ('Sasa').

Highlights

- Kounrad

o Q1 2018 copper production, 3,070 tonnes

- Sasa

o Q1 2018 zinc in concentrate production, 5,518 tonnes

o Q1 2018 lead in concentrate production, 7,020 tonnes

- Shuak

o Encouraging assay results

o 2018 proposed $2.5 million exploration programme

CAML production summary

*Q1 2017 zinc and lead production pre-date CAML ownership

Nick Clarke, Chairman, commented:

"These production results demonstrate a good start to the year at both Kounrad and Sasa. Taking seasonal variations in Kazakhstan into account, both of our operations are on track to achieve 2018 production targets, which are 13,000 to 14,000 tonnes of copper cathode, plus 21,000 to 23,000 tonnes of zinc in concentrate and 28,000 to 30,000 tonnes of lead in concentrate."

Kounrad

Kounrad Q1 2018 copper production is 3,070 tonnes. Total Kounrad copper production since operations commenced in 2012 is now 71,496 tonnes.

The winter period was the coldest experienced in five years, with a week in January averaging minus 38 degrees centigrade. The Western Dumps raffinate heating system that formed part of the Stage 2 Expansion programme worked well in its first winter of operation, with 2,302 tonnes of copper being leached from these dumps. This equates to 75% of total Kounrad Q1 2018 production.

Copper sales during Q1 2018 were 2,527 tonnes.

Sasa

In Q1 2018, mined and processed ore was 192,372 tonnes and 196,364 tonnes respectively. The average head grades for the period were 3.32% zinc and 3.83% lead. The average metallurgical recoveries were 84.6% for zinc and 93.3% for lead.

Sasa produces a zinc concentrate and a separate lead concentrate that contains silver. In Q1 2018, 11,385 tonnes of concentrate containing 48.5% zinc and 9,587 tonnes of concentrate containing 73.2% lead were produced. 

Sasa typically receives from smelters approximately 85% of the value of its zinc in concentrate and approximately 95% of the value of its lead in concentrate. Accordingly, Q1 2018 payable production of zinc was 4,690 tonnes and of lead was 6,669 tonnes. Payable base metal in concentrate sales for the period were 4,584 tonnes of zinc and 6,726 tonnes of lead.

During Q1 2018, Sasa sold 108,680 ounces of payable silver. Due to an existing streaming agreement with Osisko Gold Royalties, CAML's silver production has been pre-sold.

*Q1 2017 Sasa production pre-dates CAML ownership

Shuak

Following completion of the Shuak 2017 exploration programme, CAML has now received all assay results for the diamond and core hydrotransport ('CHT') drilling undertaken.

The new areas of oxide mineralisation that have been identified at the Kyzyl-Sor prospect have an estimated average thickness of 46 metres at an estimated average copper grade of 0.32% based on CHT drilling, although these estimates will not form part of any resource estimation.

Core from diamond drilling demonstrated intersections in the oxide material such as 41 metres at a copper grade of 0.51% from a depth of 3 metres and 45 metres at a copper grade of 0.28% from a depth of 2 metres.

Examples of encouraging sulphide intervals are 23 metres at a copper grade of 0.94% from a depth of 55 metres and 32 metres at a copper grade of 0.72% from a depth of 81 metres.

The following table demonstrates some notable drilling results in oxidised material.

The following table demonstrates some notable drilling results in sulphide material.

While these intersections are encouraging, CAML will undertake additional drilling and exploration in 2018 in order to better understand likely continuity or resource potential of the Shuak licence.

The table below highlights the $2.5 million proposed 2018 Shuak exploration programme.

For further information contact:

Qualified Person Statement:

The technical information contained in this announcement has been reviewed and approved by Nick Clarke, CAML Chairman, a qualified Chartered Engineer and member of the Institute of Materials, Minerals and Mining (MIMMM).

Note to editors:

Central Asia Metals, an AIM-listed UK company based in London, owns the Kounrad SX-EW copper project in central Kazakhstan and the Sasa zinc-lead mine in Macedonia. The Company also owns 80% of the Shuak copper exploration property in northern Kazakhstan. For further information, please visit www.centralasiametals.com.