Kazera Global Regulatory News (KZG)

Kennedy Ventures PLC

8 July 2015

Kennedy Ventures plc

("Kennedy Ventures" or "the Company")

Placing to raise £1.4 million and Appointment of Joint Broker

HIGHLIGHTS

· Placing to raise £1.4 million before expenses through the issue of 26,666,667 new Ordinary Shares at 5.25p per share.

· Net proceeds of the Placing will be used:

o To bring the Tantalite Valley Mine back into production;

o To conduct due diligence on other potential tantalite projects; and

o For investment and general working capital purposes.

· Board believes the £1.4 million raised will see the business to a position of being operational cash flow positive

Kennedy Ventures, which is focused on tantalite production in Namibia through its 75% holding in African Tantalum (Pty) Limited ("Aftan"), is pleased to announce it has raised £1.4 million before expenses through a placing of 26,666,667 new ordinary shares of 1p each at a price of 5.25p per share (the "Placing"). The new shares issued in the Placing will rank pari passu in all respects with the Company's existing ordinary shares and will represent approximately 25.89% of the Company's enlarged issued share capital. Application has been made for the new ordinary shares to be admitted to AIM and it is expected that admission will take place and trading in the new ordinary shares will commence from 8.00 a.m. on 15 July 2015 ("Admission").

The net proceeds of the Placing will be used to bring the Tantalite Valley Mine back into production, due diligence on other potential tantalite projects, for investment and general working capital purposes. The Board believes the £1.4 million raised will see the business to a position of being operational cash flow positive.

Demand for tantalum is driven by the electronics and technology industries, where tantalum capacitors are used in nearly all electronic equipment and mobile devices. Furthermore, tantalum is used to produce super alloys that can be used to manufacture high temperature cutting tools.

In addition, Shore Capital Stockbrokers Limited has been appointed joint broker to the Company. Cenkos Securities remains Nominated Adviser and Joint Broker to the Company.

Peter Hibberd, CEO of Kennedy Ventures commented:

"With the funding in place and offtake agreement with a leading manufacturer of electronic components which we announced on 1 July 2015, we are now in a position to put the potentially highly cash generative Tantalite Valley Mine back into production. We look forward to updating shareholders in the coming months."

Giles Clarke, Chairman of Kennedy Ventures commented:

"Since joining the board we have had a number of institutions showing an interest in the Company and I am very pleased this capital raising has now allowed them to become shareholders."

Following Admission, the Company's issued share capital will consist of 102,982,415 ordinary shares, with each ordinary share carrying the right to one vote. The Company does not hold any ordinary shares in treasury. This figure above may therefore be used by shareholders in the Company as the denominator for the calculations by which they will determine if they are required to notify their interest in, or a change in their interest in, the share capital of the Company under the FCA's Disclosure and Transparency Rules.

ENDS

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Notes to editors

Tantalite concentrates form the vast majority of feedstock for all tantalum products. As such they are critical and unreplaceable parts of a wide range of modern electronics including computers, tablets, mobile phones, motor components and video game systems.

Aside from electronics, tantalum has significant usage in super alloys, specialised steels, corrosion resistant equipment and medicine.

Tantalum's applications are based on its unique physio - chemical properties. The oxides and metal have extremely high melting points, high heat conductivity and strong resistance to corrosive environments. Combined, these factors have entrenched its international demand and made it an important component of numerous research projects and new technologies.

Trade pricing is following tantalum markets as per Asian Metals and Metal Pages.

In August 2012, the US Securities and Exchange Commission adopted a rule mandated by the Dodd-Frank Wall Street Reform and Consumer Protection Act to require companies reporting to the SEC to publicly disclose the origins of the tantalum they buy in order to restrict the use of conflict minerals that originated in the Democratic Republic of the Congo or an adjoining country. As a result, users of tantalum are encouraged to demonstrate that their supply chain is transparent to ensure that conflict-free tantalum is procured.

It is intended that the tantalum produced by Aftan will be conflict-free.