Premier African Minerals Regulatory News (PREM)

Premier African Minerals Limited / Ticker: PREM / Index: AIM / Sector: Mining

Premier African Minerals Limited ("Premier" or "the Company")

Conversion of loan note and issue of equity

Premier African Minerals Limited, the AIM-traded, multi-commodity mining and resource development company focused on Southern and Western Africa, announces that it received a notice of exercise by Darwin Capital Limited ("Darwin") to convert in aggregate £210,000 loan notes into equity ("Conversion Notice").

The loan notes have been used to part fund the re-opening of underground operations at RHA Tungsten (Private) Limited ("RHA"), Premier African Mineral's tungsten project located in Zimbabwe and for general working capital purposes. Premier is the operator of RHA and holds a 49% interest.

Premier, at its election, has the right to redeem one or all of the outstanding loan notes in cash at 105% of the Par Value (equivalent to £26,250 per loan note).

The loan notes are convertible at Darwin's election into new Ordinary Shares in Premier at the conversion price, being the lesser of the subscription issue price or 90% of the arithmetic average of the five daily volume weighted average share price per Ordinary Share preceding conversion. The Conversion Notice was made in respect of £210,000 loan notes issued in April 2015 (outstanding balance £915,000).

The Company has therefore issued today 77,954,475 new Ordinary Shares to Darwin ("Darwin Shares") at an issue price of 0.269388p.

Commenting, George Roach CEO and Chairman said, "This loan note conversion further reduces Premier's debts and with the ability to secure alternative debt finance directly from local Zimbabwe institutions now a reality and an anticipated liquidity event in Circum later this year, there is a prospect that Premier may well find it possible to redeem certain of the still outstanding Darwin loan notes in the future".

The Darwin Shares will rank pari passu in all respects with the existing ordinary shares. Application will be made for the New Shares to be admitted to trading on AIM and admission is expected to take place on or around 23 February 2016.

Following the issue of the New Shares, the Company's issued share capital consists of 1,420,293,056 Ordinary Shares, with voting rights. This figure may be used by shareholders in the Company as the denominator for the calculation by which they will determine if they are required to notify their interest in, or a change to their interest in, the share capital of the Company under the Financial Conduct Authority's Disclosure and Transparency Rules.

For further information please visit www.premierafricanminerals.com or contact the following:

Notes

Premier African Minerals Limited (AIM: PREM) is a multi-commodity mining and resource development company focused in Southern and Western Africa with production started at its flagship RHA Project in Zimbabwe.

The Company has a diverse portfolio of projects, which include tungsten, rare earth elements, gold, lithium and tantalum in Zimbabwe and Togo, encompassing brownfield projects with near-term production potential to grass-roots exploration. The Company holds 2 million shares in Circum Minerals Ltd ("Circum"), the owners of the Danakil Potash Project in Ethiopia, which has the potential to be a world class asset. At present those shares are valued at US$4 million based on the latest price at which Circum has accepted subscriptions.

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