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NOVENTA LIMITED

("Noventa" or the "Company") (AIM: NVTA; PLUS: NV)

Company Update

21 March 2012

The Board today provides an update on the Company's operations and progress at the Company's Marropino Mine.

Quarterly Production

As stated in the announcement released on 2 February 2012, production of Ta2O5 during January at the Company's existing plant (as distinct from the new plant currently being constructed) was limited to approximately 3,675 lbs of Ta2O5. This followed poor production rates in Quarter 4-2011, as announced on 12 December 2011, during which actual production was 18,100 Lbs Ta2O5, which was itself 52 per cent. lower compared to Quarter 3-2011.

Production of Ta2O5 during February was comparable to January, at approximately 3,600 lbs. Some improvements in production rates have been seen during March and the Board now anticipates that production for Quarter 1-2012 will be approximately 14,000 lbs of Ta2O5, but still being 33 per cent. lower than Quarter 4-2011.

Although March production shows a marginal improvement on prior months, the level of the production attained remains below the Board's stated expectations. Accordingly, the executive management team has been undertaking and has completed a review of the reasons underlying the continued poor production, in order to determine whether the Board's future expectations of production from the existing plant were likely to be achievable and sustainable.

This review has highlighted the following factors:

1. Power supply - The Marropino Mine is connected to the national electricity grid. During the 2011 - 2012 rainy season power interruptions have significantly affected plant downtime accounting for between 21% and 30% of total downtime, being a much higher level than experienced historically. While the Company anticipates that the impact of power interruptions will be less significant in the next few months due to the end of the rainy season in Mozambique, remedial action (which previously had not been considered essential) must now be taken, in light of the recent significant issues, to remedy the stability of power supply and to prevent similar downtime during the 2012 - 2013 rainy season. This remedial action is expected to include: (1) the installation of back-up diesel generators to prevent piping and thickeners becoming affected by natural sedimentation and (2) upgrade of the power line to improve protection from nearby trees, improve protection against lightning and storms and provide greater line stability;

2. Maintenance - The current Marropino process plant is expected to be taken offline and repaired upon the completion of the new process plant and subsequently integrated into the new process plant as a scavenging circuit. Due to delays in commissioning the new plant, deterioration to the old plant has been more accelerated than expected, with a consequential impact on plant downtime during Quarter 4-2011 and Quarter 1-2012. The necessary repairs, principally to the spirals, launders and cyclones is now expected to be undertaken in Quarter 2-2012 to provide a reliable circuit for integration into the new plant.

3. Human resources - Marropino is a remote site with difficult working conditions. While all efforts have been undertaken to recruit appropriate plant and mine operators, it is the current management's opinion that the human resources at Marropino are not adequate to operate the new process plant and provide ore for processing in the necessary volumes. In particular, a higher than previously planned number of expatriate workers is needed in the next one to two years to provide production and training capability, in particular in the areas of mobile fleet maintenance, operation and plant supervision. Recruitment actions are underway and certain key positions have already been replaced, recruited, or are in the final stages of negotiation with appropriate candidates.

4. Water supply - The infrastructure necessary to provide sufficient process water for the Marropino plant was finalised with the completion of the Melela river pump and pipe solution, as previously announced. Certain elements of the pump and pipe system were damaged by Cyclone Funso. While the water levels are sufficient for current operations due to the successful operation of the pump and pipe system before Cyclone Funso, remedial work and improvements to the system must be undertaken during 2012 to prevent loss of production in future periods. The Company anticipates that some or all of the remedial costs will be covered by the Company's insurance policies.

The management team is presently reviewing the costs associated with undertaking the necessary measures to mitigate or prevent the recurrence of future production downtime at the same levels as those experienced in Quarter 4-2011 and Quarter 1-2012.

Quarterly Sales

The lower than forecast rates of production have a consequential impact on sales and to date the Company has shipped approximately 12,850 lbs of Ta2O5 in Quarter 1-2012 to date, representing revenue of approximately US$ 1.0 million. The Company expects to sell a further 6,000 lbs Ta2O5 this month, with further revenue expected of US$ 0.4 million.

Commissioning of the new plant at Marropino

As previously reported, good progress has been made towards the start of Phase 2 Commissioning despite the interruptions referred to in the February update. The Board had anticipated, as stated in that announcement, that Phase 2 Commissioning would start by the end of March.

All of the materials required are on site and largely installed. Some minor installation works remain, together with associated testing, and the Board now expects that Phase 2 Commissioning will slip into early April.

Whilst the Board is pleased that Phase 2 Commissioning is due to start shortly, it is mindful that it had originally been forecast for late January or early February, as announced in mid-December 2011. As a consequence of the delays to commissioning, full ramp-up of production to optimum capacity is now expected to be complete in early Quarter 4-2012, rather than in Quarter 3-2012 as previously announced.

Ta2O5 supply contract

Under a contract with Cabot Corporation ('Cabot'), Noventa supplied Ta2O5 from its Marropino mine in Mozambique to Cabot's super metals division in Boyertown, Pennsylvania, USA. A US subsidiary of Global Advanced Metals pty ('GAM') purchased that division in January 2012. Following preliminary discussions, the Company has reached an in principle agreement to amend the existing agreement of the parties governing the sale of Ta2O5 concentrate to GAM and, in particular, in relation to price and volumes.

A technical team from both companies has been designated to consider possible changes, if required, to the Noventa Ta2O5 concentrate specification and the packaging of the existing or, if applicable, new concentrate to facilitate the smooth transportation to GAM of the concentrate from Mozambique to a designated area in the most economic manner for both parties.

Noventa and GAM are working on a definitive agreement and a further announcement will be made in due course. Upon reaching definitive agreement with GAM, which is subject to the agreement of the parties and the approval of the Noventa Board, Noventa will continue to supply the Boyertown plant from the Marropino mine under what the Company believes will be a mutually beneficial arrangement for both parties.

Funding requirement

As a result of the lower than forecast rates of production of Ta2O5, the delays during the quarter to the commissioning of the new plant at Marropino, the consequent delay in anticipated ramp up of production, and the operational matters that require corrective action, outlined above, the Board believes that there is a requirement for further funding (in addition to amounts expected to be raised via the proposed Open Offer announced in August 2011). This would be in addition to the Company's current cash balance of US$8.5 million, and is required to alleviate the constraint on the Company's forecast working capital position.

The Board is currently reviewing the precise funding requirement but an initial analysis suggests that this may be between US$10.0 million to US$13.0 million. To address the shortfall, Luca Cechis, the Company's Chairman has indicated to the Board that Richmond Capital LLP (of which Mr. Bechis is a founding partner), the Company's largest shareholder, may be willing to underwrite a fund raising. The Board intends to enter into more detailed discussions with Richmond Capital and is hopeful that it can reach agreement in respect of any such underwriting, which will be subject to terms and conditions which have yet to be agreed. Alongside these discussions, the Board will be reviewing other potential funding options.

A further announcement regarding the quantum and the means by which those funds will be sought, including whether an open offer to the Company's shareholders will be utilised, and the progress of discussions with Richmond Capital will be made in due course.

For further information please contact:

CAUTIONARY NOTE REGARDING FORWARD-LOOKING STATEMENTS

Certain information contained or incorporated by reference in this release, including any information as to the Noventa's strategy, projects, plans, prospects, future outlook, anticipated events or results or future financial or operating performance, constitutes "forward-looking statements" within the meaning of Canadian securities laws. All statements, other than statements of historical fact, are forward-looking statements. Forward-looking statements can often, but not always, be identified by the use of words such as "plans", "expects", "budget", "scheduled", "estimates", "forecasts", "intends", "anticipates", "predicts", "potential", "continue" or "believes", or variations (including negative variations) of such words; or statements that certain actions, events or results "may", "could", "would", "should", "might", "potential to", or "will" be taken, occur or be achieved or other similar expressions concerning matters that are not historical facts. Readers are cautioned that forward-looking statements are not guarantees of future performance. All of the forward-looking statements made or incorporated in this press release are qualified by these cautionary statements.

Forward-looking statements are necessarily based on a number of factors, estimates and assumptions that, while considered reasonable by Noventa as of the date of such statements, are inherently subject to significant business, economic and competitive uncertainties and contingencies. Readers are also cautioned that forward-looking statements involve known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements of Noventa to differ materially from those expressed or implied in the forward-looking statements. Certain of these risks and uncertainties are described in more detail in Noventa's Annual Information Form dated 19 July 2011, which is available on SEDAR at www.sedar.com.

Although Noventa has attempted to identify statements containing important factors that could cause actual actions, event or results to differ materially from those described in forward-looking information, there may be other factors that cause actions, events or results to differ from those anticipated, estimated or intended. Forward-looking information contained herein are made as of the date of this document based on the opinions and estimates of management on the date statements containing such forward looking information are made, and Noventa disclaims any obligation to update any forward-looking information, whether as a result of new information, estimates or opinions, future events or results or otherwise. There can be no assurance that forward-looking information will prove to be accurate, as actual results and future events could differ materially from those anticipated in such information. Accordingly, readers should not place undue reliance on forward looking information.