Kefi Gold & Copper Regulatory News (KEFI)

AIM: KEFI 18 September 2013 KEFI Minerals Plc ("KEFI Minerals" or the "Company") Increased jorc resource Exploration UPDATE KEFI Minerals, the AIM-quoted gold and copper exploration company with projectsin the Kingdom of Saudi Arabia, is pleased to announce an updated JORCcompliant Inferred Resource of 14.5Mt at 0.89g/t Au for 415,000oz Au at itsJibal Qutman prospect. The Company's ongoing trench channel sampling and drilling programme at theJibal Qutman Licence continues to expand the mineralised system, which is yetto be closed off. Kefi Minerals is the operator of the project under theCompany's 40%-owned Gold & Minerals Joint Venture ("G&M"). HIGHLIGHTS * A 33% increase in the JORC compliant Inferred Resource to 14.5Mt at 0.89g/t Au for 415,000oz Au has been calculated at a cut-off of 0.2g/t Au. * The 3K Hill prospect discovered in June 2013 provided significant contribution to the upgrade; * The second phase RC drilling programme is on-going with mineralisation remaining open along strike at the Main, South, West and 3K Hill Zones. Drilling aims to extend the resource, and continues returning encouraging intersections, including: 9m at 14.20g/t Au, 25m at 1.25g/t Au, 10m at 2.18g/t Au, 9m at 1.36g/t Au and 8m at 1.01g/t Au.; * Trench channel sampling over a newly discovered set of shear zone-hosted quartz bodies at 4K Hill returned encouraging intersections, including 8m at 1.03g/t Au, 12m at 1.37g/t Au and 1m at 28.31g/t Au; * A Diamond Drill Hole programme to deliver samples and progress metallurgical testwork has been initiated. Jeff Rayner, ManagingDirector of KEFI Minerals, commented: "The results of the on-going RC drilling and trenching at Jibal Qutman continueto increase the size of the mineralised system. We are very excited about thepotential to develop a significant resource in the region and once more thedrilling results have vindicated our team's efforts. "Our drilling is continuing to find more gold and we have yet to close off themineralisation along strike of any of the drilled areas. Additional drillingcapacity is being sought to step up the work rate at Jibal Qutman with thecontinued focus on moving towards a pre-feasibility study. We look forward tofurther developing our drilling programme and updating the market in duecourse." Jibal Qutman Resource Update At Jibal Qutman an updated resource has been calculated from additional drilland trench sampling results received up to 9 September 2013. Previousinterpretation from polygonal estimates has been updated for new understandingwith significant additional data and a revised geology model created. The dataset considered is comprised of 50 diamond drill holes, 114 RC drill holes and201 trenches. There were 9,000 drill hole assays and 7,500 trench assays for16,500 assays in total considered. Geostatistics has been performed on eachseparate deposit and top-cuts ranging from 10.5g/t to 25.4g/t Au applied. Drilling was carried out on 50m x 25m and 50m x 40m spacings to nominally 120mdepths. Trenches were excavated at 50m and 25m spaced sections. At 3K Hill, gold mineralisation shows the same features as the other southernzones and comprises massive wide quartz vein zones with higher grade (1-25g/tAu) gold mineralisation, intercalated by pyrite rich shear-zone hostedstockworks. The resource estimate has been confined to maximum depths of 50m to 70m belowsurface and an approximate overall strip ratio of less than 4:1 (waste:ore) canbe calculated in four "pit shells" to the base of the mineralised blocks. An inverse distance squared block model has been produced in Surpac, supportedby basic geo-statistics to fill all of the interpreted orebody solids withgrade for an updated inferred resource estimate: Zone Volume Tonnes Au g/t Ounces Main - West - 4,466,452 11,836,102 0.85 322,621 South 3K Hill 1,022,498 2,709,621 1.06 92,114 Total 5,488,950 14,545,723 0.89 414,735 Additional information obtained since July 2013 allowed confirmation of thegeneral size and shape of main-west-south block with an addition of some 2Mt atsimilar grade. The deposit structure has been confirmed and is still open atdepth and along strike. 3K Hill has proved an excellent discovery, effectively adding since July 3Mtbulk near surface tonnage, open at depth to the north and along strike northand south. Ongoing Exploration The second phase RC drill programme continues and since July 2013, a seconddrill contractor has been operating on site. The aim is to define the limits ofthe Main, West, South and 3K Hill Zones and to subsequently infill RC drill at25m x 20m where required. This work is expected to be completed in Q4 2013. In the 3K Hill prospect, trenching and RC drilling has extended the quartz veinmineralisation to over 400m to the North and South. Mineralisation is masked byshallow sand cover (1-2m) going Northwards and further RC drilling is planned. The best results from the recently drilled RC drill holes include: Hole No From To Interval Au g/ Zone (m) (m) (m) t JQRC079 20 45 25 1.25 3KHill JQRC80 55 60 5 1.55 West JQRC82 24 26 2 1.17 West JQRC086 28 39 11 0.86 3KHill JQRC88 8 10 2 3.48 West JQRC089 6 8 2 1.32 3KHill JQRC090 58 69 11 0.99 3KHill and 84 87 3 1.78 3KHill JQRC091 41 43 2 1.70 3KHill JQRC096 33 40 7 1.70 West JQRC98 55 64 9 14.20 3KHill including 60 64 4 29.75 3KHill JQRC102 15 24 9 1.36 3KHill JQRC106 74 79 5 1.35 West JQRC108 63 66 3 1.07 West JQRC109 32 35 3 1.16 Main JQRC112 15 23 8 1.01 Main JQRC114 7 17 10 2.18 Main Reconnaissance sampling and mapping has resulted in new discoveries ofgold-bearing quartz vein structures in other parts of the Jibal Qutman Licence.The most promising is an area located 1.2km Northeast of the 3K Hill prospects,with veins gently dipping to the East, similar to the West Zone and mapped over300m of strike (4K Hill prospect). Trenching, spaced 50m apart along sections at 4K Hill, confirmed thatmineralisation extends for strike of over 300m. A list of best intersectionsreceived to date includes: Hole No Interval Au g/ Zone (m) t JQT198 3 1.32 4KHill JQT200 12 1.37 4KHill JQT202 5 1.02 4KHill Four RC holes were drilled at 4K Hill and most samples are still beingprocessed in the laboratory. Trenching over the northern extension of the 3K Hill prospect, completelyhidden by alluvial sediments, provided indications that the mineralisation, asshown in the table below, could be extended 100m to the north: Hole No Interval Au g/ Zone (m) t JQT205 1 28.31 3K Hill Further RC drilling and trenching to extend the 3K Hill and 4K Hill zones isalso planned. Currently, two RC rigs are operating on single shift. Others Feasibility study: G&M plans to complete a Pre-Feasibility Study in Q1 2014 andsubsequently apply for a Mining Licence for the G&M JV. Feasibility studyrelated works including geophysical water exploration were initiated in lateAugust 2013. Metallurgy: metallurgical testwork is continuing, indicating that recoveries inexcess of 90% can be obtained in the upper oxide zones. Although metallurgy iscomplex, indications are that overall recoveries above 80% should be achievableon sulphide zone samples. A diamond drilling programme started in August with the aim to collectsulphide-zone samples for further metallurgical testworks. Enquiries KEFI Minerals Jeffrey Rayner +90 533 928 1913 Fox-Davies Capital Simon Leathers +44 203 463 5010 Bishopsgate Communications Nick Rome/Anna Michniewicz +44 20 7562 3395 References in this announcement to exploration results and potential have beenapproved for release by Mr. Jeffrey Rayner. Mr Rayner is a geologist and hasmore than 25 years' relevant experience in the field of activity concerned. Heis a Member of the Australasian Institute of Mining and Metallurgy (AusIMM) andhas consented to the inclusion of the material in the form and context in whichit appears. Further information on KEFI Minerals is available at www.kefi-minerals.com KEFI Minerals' Strategic Plan in the Kingdomof Saudi Arabia İn 2009, KEFI Minerals formed the Gold and Minerals Joint Venture ("G&M") inSaudi Arabia with local Saudi partner Abdul Rahman Saad Al-Rashid & SonsCompany Limited ("ARTAR"), to explore for gold and associated metals in theArabian Shield. To date, the G&M has conducted preliminary regionalreconnaissance and lodged 23 Exploration Licence Applications (ELAs), of which4 have been granted. The ELAs were initially applied for and granted to ARTAR. Incorporation of G&Mhas been completed and any granted Licences will be transferred into G&M in duecourse. The Kingdom of Saudi Arabia has instituted policies to encourage mineralsexploration and development and KEFI Minerals supports this priority by servingas the technical partner within G&M. ARTAR also serves this Government policyas the major partner in G&M, which is one of the early movers in the modernresurgence of the Kingdom's minerals sector. -Ends-