Rockfire Regulatory News (ROCK)

2 September 2016

This announcement contains inside information.

Papua Mining plc

("Papua" or "the Company")

Subscription to raise £400,000

Papua Mining plc, a UK company focused on the exploration and development of gold and copper deposits in Papua New Guinea ("PNG"), is pleased to announce that it has agreed the terms of a conditional subscription by Thalassa Holdings Ltd ("THAL") for 40,000,000 new ordinary shares (the "Subscription Shares") at a price of 1 pence per share (the "Conditional Subscription"), to raise £400,000 before expenses and the conditional conversion ("Conditional Conversion") by Michael Somerset-Leeke of £138,000 of convertible loan notes 2020, as previously announced on 4 December 2015, into 13,800,000 ordinary shares at 1p per share (the "Conversion Shares").

The Company is also proposing to separately make an offer to all qualifying shareholders ("Qualifying Shareholders") to enable Qualifying Shareholders to subscribe for new ordinary shares (the "Offer for Subscription") at the same time as the Conditional Subscription, through the issue of up to a further 40,000,000 new ordinary shares (the "Offer Shares") to Qualifying Shareholders at a price of 1 pence per Offer Share, to raise up to a further £400,000.

The Conditional Subscription is subject to the following:

· The passing of the necessary resolutions by the shareholders at a general meeting of the Company, to be held no later than 31 October 2016;

· The simultaneous admission of the Subscription Shares and the Conversion Shares to trading on AIM by no later than 31 October 2016;

The Conditional Conversion is subject to the following:

· The Conditional Subscription becoming unconditional other than in respect of the admission of the Subscription Shares to trading on AIM

The net proceeds of the Conditional Subscription and any additional funds received by way of the Offer for Subscription will provide the Company with additional working capital and will enable Papua to continue to advance operations at the Company's Mt Visi prospect.

Completion of the Conditional Subscription, the Offer for Subscription and the Conditional Conversion will be subject to shareholder approval which will be sought at a general meeting of the Company to be held no later than 31 October 2016. A circular setting out the background to and reasons for the Conditional Subscription and the Offer for Subscription and to convene the general meeting, will be posted to shareholders shortly.

Thalassa Holdings Ltd, incorporated and registered in the BVI and quoted on AIM, is a holding company, currently with subsidiaries in the Energy Services and Defence and Homeland Security Industries. Further information is available at www.thalassaholdingsltd.com.

Hugh McCullough, Director of Papua said:

"We are very pleased to welcome Thalassa as a significant shareholder in Papua. If approved by our shareholders, Thalassa's subscription will enable the Company to continue to progress certain aspects of our exciting copper porphyry project at Mt Visi in Papua New Guinea. We look forward to Thalassa's input and support in the future as we seek to create value for all our shareholders. To this end, Thalassa will appoint a representative to the Board of Papua following completion of the Conditional Subscription"

Duncan Soukup, Chief Executive of Thalassa Holdings Ltd commented:

"In line with Thalassa's stated strategy of identifying potential investment opportunities, I am pleased to announce this conditional investment in Papua Mining plc. We have been monitoring this company for a number of years and believe that this is an opportune time to acquire a sizable position in Papua Mining. We look forward to becoming a shareholder and taking up a position of the board, with a view to realizing shareholder value in what we perceive to be a large and exciting prospect in Papua New Guinea."

For further information on the Company please visit www.papuamining.com or contact the following: