Premier African Minerals Regulatory News (PREM)

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

For immediate release

3 July 2017

Premier African Minerals Limited

("Premier" or the "Company")

Project Updates

Summary

Subsequent to our RNS 3 July 2017, Premier African Minerals Limited, the AIM-traded, multi-commodity mining and natural resource development company focused in Southern and Western Africa advises that the delay in filing financial statements for the period ending 31 December 2016 is not expected to be protracted and Premier believes that the technical valuation issues that caused the delay have been addressed. In advance of that filing, Premier provides extractions from the Chairman's statement as contained in the draft financial statements, as it relates to post period end updates on our key projects.

RHA

"First shipment of concentrates of 20 tons grading 60% wolframite was completed in late May 2017 and has been paid for. RHA forecast an optimisation period and anticipated increase in production of up to 10,000 metric ton units of wolframite during Q4 2017 subject always to attainment of anticipated grade and recoveries from the plant. During the optimisation process to date, the mine has demonstrated the capability to operate at profitable production levels on an instantaneous basis. More importantly, development in the open pit mining operation has now progressed through the heavily weathered upper layers in some areas and we are now able to identify and track grade from the pit, through the ROM pad and into the plant. This is a most significant development and is a tribute to very substantial effort that has been made by our geological team and mining engineers, particularly when faced with the extremely "spotty" nature of wolframite mineralisation. Equally pleasing is that grade in the pit in these identifiable areas, is running at 1.9 kg per ton, which is higher than the projected grade of 1.5 kg per ton.

By its nature, the optimisation process is not necessarily a time of continuous operation and this has been the case at RHA. Certain issues have been identified during the optimisation phase and these are in the process of being attended to. These include minor upgrades to certain components to allow continuous operation at the higher tonnages now possible following the commissioning of the X-ray sorting system. These are expected to complete toward the end of August 2017 and we then expect to see production accelerate to the predicted levels of up to 10,000 metric ton units per month in the later part of 2017. Whilst attainment of this production level remains dependent on continuity of grade and plant recovery, the experiences we have had over the past two years and the developments in our resource estimations and underground mining, add a level of confidence to this expectation. RHA has been a drain on cash resources but we continue to believe that this is at a turning point and we expect positive cash flows from this operation later in 2017."

Zulu Lithium

We believe that the potential scale and size of Zulu is analogue to other world-class spodumene/pegmatite deposits hence we believe that Zulu has the potential to be a company making asset. Premier will also progress its review of strategic options for the development of Zulu and the options for unlocking value for the Company and its shareholders, including possible strategic partnerships and / or the possibility of a separate listing for Zulu Lithium.

We released a maiden resource statement on the 6 June 2017, reporting a SAMREC compliant inferred mineral resource estimate for Zulu of 20.1 million tonnes @ 1.06 % Li2O and 51 ppm Ta2O5 using a cut-off grade of 0.5% Li2O, including 7,159,048 tonnes @1,5% Li2O.

The resource estimate contained 526,000 tonnes of lithium carbonate equivalent (LCE) and 1,025 tonnes of tantalum pentoxide. The maiden resource estimate covered only 35% of Zulu's known 3.5km surface strike length and drilling continues in order to potentially upgrade and expand the mineral resource estimate.

Metallurgical test results from test work conducted in Germany by Dorfner Anzaplan are particularly pleasing both in the projected grades of concentrates that will be available, but also in the very low iron content that offers additional markets not only for spodumene and petalite but also the potential for high grade feldspar and high purity quartz. Ongoing drilling at Zulu has yielded most encouraging mineralisation in the core and we confidently await assay results in the expectation that this will expand the compliant resource and add substantially to our initial confidence in this world class deposit.

Circum

Post reporting period we were delighted to learn that Circum's application for a mining license for the Danakil Potash Project had been approved by the Council of Ministers of the Federal Democratic Republic of Ethiopia.

The mining agreement provides exclusive access over the 4.9 billion tonnes NI 43- 101 compliant potassium resource contained within the 365 square kilometres license area for an initial period of 20 years and is renewable indefinitely for further 10 year periods, provided that financial viability continues to be demonstrated. The License allows the exploitation of potassium-bearing minerals which exist at relatively shallow depths within the vast license area. The minerals will be exploited by solution mining, the lowest risk mining method suitable to this region, and will be processed by crystallization in solar ponds prior to final refining in a process plant. The combination of these techniques, which have already been proven by field trials in the license area, will return operating costs projected to be among the lowest in the global potash industry for both potassium chloride (MOP) and potassium sulphate (SOP).

The award of the License follows the submission of a comprehensive set of pre-requisite data which included a definitive feasibility study, a social and environmental impact assessment (ESIA) and associated management plans and detailed production and financial models. With the mining license now in place our investment in Circum has been strengthened strategically."

CEO, George Roach commented: "We did not anticipate the complexities that would be associated with certain valuations required for audit purposes, nor a requirement for independent valuations of Darwin Loan Notes, particularly as these had all been converted shortly after 31 December 2016. We deeply regret this delay, which should be resolved in a matter of days. We have published extractions from my statement to be contained in the financials to provide updates on various projects and I have just a few comments to add. Premier is involved in evaluation of proposals for the future development of Zulu and expects to conclude the negotiations during July 2017. Zulu already ranks in the top 12 lithium pegmatite explorations and we confidently expect this region to challenge the largest deposits of this nature in the world as exploration progresses. In regard to RHA, it is important to note that the plant is running and production continues. In Mozambique, it is pleasing to note that whilst TCT is self-sustaining, the issue of cutting licenses to registered concession holders following a period of national suspension, should see exports accelerate and profits in line thereof. I have also noted that with the Group developing as it is, future financings would focus on non-dilutive debt transactions as far as possible."

This announcement contains inside information for the purposes of Article 7 of EU Regulation 596/2014

Enquiries:

Notes to Editors:

Premier African Minerals Limited (AIM: PREM) is a multi-commodity mining and natural 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 Benin, encompassing brownfield projects with near-term production potential to grass-roots exploration. The Company recently acquired a 52% controlling stake in Mozambique-based TCT Industrias Florestais Limitada, which owns a substantial limestone deposit and forestry business located on rail in the Sofala Province of Mozambique. In addition, the Company holds 2 million shares in Circum Minerals Limited ("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. Premier also has an interest in Casa Mining Limited, a privately-owned exploration company that has a 71.25% interest in the 1.2 million ounce inferred resource Akyanga gold deposit in the DRC.

ENDS