Weatherly International Plc Regulatory News (WTI)

Weatherly International plc

('Weatherly' or the 'Company')

Update on Central Operations

and

Berg Aukas

HIGHLIGHTS

·; Production restart at the Otjihase and Matchless copper mines in Namibia (the 'Central Operations') on schedule for Q1 2011.

·; Conditions precedent satisfied on US$7 million facility from Louis Dreyfus Commodities and drawdowns under the facility will take place as required to meet the project programme.

·; Proceeds from sale of Kombat to be received on 29 November 2010.

·; Ministerial consent may delay conclusion of Berg Aukas transaction with ECE until Q1, 2011.

BACKGROUND

Following the current restart programme, Weatherly's Central Operations are expected to produce on average 30,000 tonnes of copper concentrate annually, containing approximately 7,000 tonnes of copper and 3,000 oz of gold. Production is scheduled to begin in Q1, 2011.

LOUIS DREYFUS FACILITY

On 12 July 2010 the Company announced that it had received a conditional offer of funding from Louis Dreyfus Commodities Metals Suisse S.A., the Swiss based metal trading company and member of the Louis Dreyfus Commodities group ('Louis Dreyfus Commodities'). On 27 September 2010, the Company announced that its subsidiary, Ongopolo Mining Limited ('Ongopolo'), had signed both a prepayment facility and an offtake/hedging agreement with Louis Dreyfus Commodities.

Under the agreement, Louis Dreyfus Commodities will provide a facility of US$7 million to fund the capital required to re-start the mines. Weatherly is now pleased to announce that all of the conditions precedent to this facility have been satisfied and that drawdowns under the facility will take place in accordance with the requirements of the project programme. All major orders are in place and delivery of most of the key mining equipment is expected in November as scheduled.

In addition, as previously announced, the facility also contains a forward sales framework which would allow Ongopolo to forward sell up to 35% of its output for a period of 18 months. In view of the current copper price the Board strongly favours such a risk mitigation strategy and it is intended to put the necessary contracts in place at the appropriate time.

SALE OF KOMBAT AND OTHER NAMIBIA ASSETS

On 17 May 2010, Weatherly announced that Grove Export CC ('Grove') had exercised its option to acquire the Kombat mine and the parties had entered into a conditional sale and purchase agreement. Total consideration for the sale of Kombat is $N22.8 million (approximately US$3.3 million), with $N2.4m having already been received. Weatherly and Grove have agreed that the remaining $N20.4 million (approximately US$3.0 million) will be paid no later than the 29 November 2010. The receipt of the proceeds of this transaction is no longer conditional on Ministerial consent for the transfer of the licences.

The real estate sales have been proceeding as planned. These sales were part of a real estate auction held during 2009 with proceeds expected progressively until mid 2011. Since 30 June 2010 Weatherly has received $N4m, leaving $N16 million (approximately US$2.3 million) still outstanding.

FUNDING FOR CENTRAL OPERATIONS RE-START

As previously announced, the capital cost of reopening the mines is estimated to be US$6.7 million, and the draw down of funds from the Louis Dreyfus facility is expected to cover this expenditure. The Company's current estimate of peak funding requirements, including working capital build up based on scheduled production, is approximately US$12 million occurring during Q2 2011. The additional US$5m to cover working capital is to be covered by the proceeds from the sale of Kombat and other contracted real estate sales referred to above.

LOCAL PARTICIPATION IN CENTRAL OPERATIONS

As announced on 12 July 2010, the Company has provisionally set aside up to 20% of the project equity for local participation. Weatherly entered into memorandums of understanding with two groups and discussions are ongoing with a third. Should negotiations not complete, Weatherly will retain its 100% interest in the project which it is entitled to do under Namibian law. There will be no impact on the operational re-start, funding or the expected timetable from these ongoing negotiations.

Weatherly has signed a letter of intent with a local company, Breda Mining Contractors ('BMC'), whereby BMC will operate as the prime mining contractor at the Otjihase mine. BMC is actively recruiting and has already begun preliminary rehabilitation of the mine equipment and services to the underground working areas. Negotiations with a second local contractor are at an advanced stage for the Matchless mine. Both contracts are part of a process which will see improved accountability and operating efficiencies while retaining direct control over the technical and safety aspects of the operation.

BERG AUKAS

As announced on 12 July 2010, Weatherly has signed a letter of intent with a wholly owned subsidiary of East China Mineral Exploration and Development Bureau ('ECE') whereby the parties intend to jointly pursue the development of Weatherly's Berg Aukas lead/zinc mine in Northern Namibia. As announced, it is intended that the parties will form a new company, China Africa Resources ('CAR'), with ECE providing funding of £4.8 million to acquire an interest of 65% in CAR and Weatherly retaining a 35% interest. It is intended that CAR will seek the admission to trading of its shares on the AIM market of the London Stock Exchange and Weatherly would at the same time distribute 10% of its interest to underlying Weatherly shareholders.

The transfer of the licence for Berg Aukas to CAR requires ministerial consent in Namibia, for which an application has been made but not yet granted. It is anticipated this will be granted before the calendar year end with the transaction expected to complete in Q1 2011.

ENDS

For further information, please contact:

Rod Webster, Chief Executive Officer, Weatherly International Plc

+44 (0) 20 7917 2989

Samantha Harrison / Jen Boorer, Ambrian Partners Limited

+44 (0) 20 7634 4700

Carina Corbett, 4C Communications (Investor Relations)

+44 (0) 20 7559 6715