Premier African Minerals Regulatory News (PREM)

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

The Premier African Minerals announcement released at 7.00am on 11 May 2015 under RNS No. 7121M had a corrupted PDF link that didn't work. The correction below has a working link to the Circum Minerals Ltd PDF.

For immediate release

11 May 2015

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

Circum Minerals Ltd Update

Premier African Minerals Limited, the AIM-traded, multi-commodity resource and development company focused on Southern and Western Africa, today provides an update on the progress of Circum Minerals Limited ("Circum") in which Premier holds 2 million shares (representing 2.15 per cent of Circum on a fully diluted basis). Circum is the 100% owner of the Danakil Potash Project in the northern margin of the Danakil Depression in Ethiopia and is a private company that reports direct to its shareholders.

The information provided below has been extracted from the announcement made on the 6 May 2015 by the board of Circum ("Circum Announcement"), which can be found here:

http://circumminerals.com/sites/default/files/Ethiopian_Danakil_Project_Proves_Up_4.2B_tonnes_of_Potash_0.PDF

Highlights

The Circum Announcement reported that:

· The current NI 43-101 compliant mineral resource estimate of the Danakil Project, which covers about 35% of the licence area to a depth of 400 meters, consists of 2.6 billion tonnes of Measured and Indicated Resources grading, 19.2 per cent. KCI (the average of the Sylvinite layer, Upper and Lower Carnallitite layers and the lower Kainitite layer) and 1.6 billion tonnes of Inferred Resources grading 17.1% KCl;

· The geologic estimate of the endowment of the remaining 65% of the project area is an additional 7-9 billion tonnes to a depth of approximately 800 meters;

· Seismic data confirms the continuity of the potash layers throughout the rest of the concession area;

· Circum is currently in the process of completing a private placing of approximately US$30 million to further fund and progress the project;

· Circum is in the process of engaging a major international investment bank to provide strategic advice on the options to be pursued to develop and maximize the value of Circum;

· Circum currently plans to complete its Definitive Feasibility Study in July 2015; and

· Circum anticipates that the mining licence for the development of the Project will be granted in the second half of 2015 once the Ethiopian Government has reviewed the DFS.

George Roach, CEO, commented:

"Circum's announcement further supports the belief that the Danakil Potash Project has the potential to be a major world-class potash asset. We remain confident that there is the opportunity for a substantial uplift on the current value of Premier's interest in Circum. We look forward to updating shareholders once the DFS is released in early H2 of this year."

Forward Looking Statements

Certain statements in this announcement, are, or may be deemed to be, forward looking statements. Forward looking statements are identified by their use of terms and phrases such as ''believe'', ''could'', "should" ''envisage'', ''estimate'', ''intend'', ''may'', ''plan'', ''will'' or the negative of those, variations or comparable expressions, including references to assumptions. These forward looking statements are not based on historical facts but rather on the Directors' current expectations and assumptions regarding the Company's future growth, results of operations, performance, future capital and other expenditures (including the amount, nature and sources of funding thereof), competitive advantages, business prospects and opportunities. Such forward looking statements reflect the Directors' current beliefs and assumptions and are based on information currently available to the Directors. A number of factors could cause actual results to differ materially from the results discussed in the forward looking statements including risks associated with vulnerability to general economic and business conditions, competition, environmental and other regulatory changes, actions by governmental authorities, the availability of capital markets, reliance on key personnel, uninsured and underinsured losses and other factors, many of which are beyond the control of the Company. Although any forward looking statements contained in this announcement are based upon what the Directors believe to be reasonable assumptions, the Company cannot assure investors that actual results will be consistent with such forward looking statements.

Enquiries

Notes

Premier African Minerals Limited (AIM: PREM) is a multi-commodity exploration and development company focused in Southern and Western Africa with near term production 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, 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$2.5 million based on the latest price at which Circum has accepted subscriptions.

Qualified Person

The technical information contained in this announcement has been reviewed by Bruce Cumming. Mr. Cumming holds a Bachelor of Science (Honours) in Geology from the University of Cape Town and is accredited to the South African Counsel for Natural Scientific Professionals (SACNASP). Mr. Cumming has sufficient geological experience (over 39 years) and is satisfied with the accuracy and precision of this announcement.

Glossary

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