Completion of Test Work Program

Armadale Capital Plc / Index: AIM / Epic: ACP / Sector: Investment Company

22 April 2021

Armadale Capital Plc

('Armadale' or 'the Company')

Completion of Test Work Program

Armadale Capital plc the AIM quoted investment group focused on natural resource projects in Africa, is pleased to report that the metallurgical bulk test work programme has been significantly progressed with Phase One completed successfully. The programme has been carried out in China by Xinhai Mineral EPC ("Xinhai"), the Chinese Engineering, Procurement, Construction and Manufacturing company..

HIGHLIGHTS

· Positive testwork is a major de-risking step in confirming process flowsheet as per definitive feasibility study ("Definitive Feasibility Study") design;

· programme completed by highly regarded Chinese EPC, Xinhai, using a bulk composite of representative feed sample material;

· consistent graphite concentrate grades above 95% TGC were achieved with recoveries above 92%;

· Mahenge project design for treatment of graphite ore confirmed as being able to produce high quality, high purity graphite concentrate;

· Phase One of FEED Studies complete, Phase Two to begin shortly;

· local content plan for the Mahenge Project has been approved by the Ministry of Minerals and Mining Commission of Tanzania. 

Xinhai are a highly experienced, industry-leading Chinese Engineering, Procurement, Construction and Manufacturing (EPC) group in the field of optimising mineral processing solutions, mine design and build and equipment manufacturing.

The test work to date has confirmed the efficacy of the process flow sheet as per the Company's Definitive Feasibility Study for the treatment of graphite ore to produce high quality, high purity graphite concentrate. This completes the first phase of the Front-End Engineering Design Studies ("FEED Studies") being undertaken by Xinhai.

Phase Two of the work involves the completion of remaining necessary engineering to develop an EPC fixed price contract.

Armadale Chairman Nick Johansen Commented:

"Armadale continue to work to our plan with simultaneous workstreams running to de-risk our highly compelling Mahenge graphite project and move towards production. Investors should appreciate that having our chosen processing methods replicated, tested and then successfully validated by an industry leading builder of mines, and more specifically graphite processing plant, is a big stamp of approval for the Mahenge project. Conceptual design has now been delivered as fact - that the Mahenge plant and flow sheet design as determined by the Definitive Feasibility Study can produce a high quality, high purity graphite concentrate. This helps to ratify the exceptional economics of the project and ticks a big box in terms of being able to supply the forthcoming exponential demand expected for high-grade graphite concentrate from the manufacturing of battery anodes for electric vehicles.

We look forward to moving through Phase Two of the FEED studies with Xinhai who have been doing an excellent job thus far. Again, the results of these studies are a major technical de-risking item, and we will be delighted to be working these results into our current offtake and financing discussions which are progressing positively.

Separately, looking to Tanzania, we are also delighted to be able to announce the approval of the local content plan which forms part of our commitment to develop employment and local businesses within the local communities in which we work. we are greatly encouraged by the support which the Tanzanian government has for this project and look forward to being able to update shareholders on further in-country progress as it happens. We are very pleased with the progress made to date and are confident of maintaining this momentum to continue to deliver further shareholder value".

Details of Xinhai Flow Sheet Testwork

· Confirmatory testwork program completed by Xinhai ;

· sample comprised bulk composite of representative feed sample material;

· program included head assay, mineralogy and X-ray analysis of the sample and flotation;

· beneficiation flotation testing included rougher and cleaner flotation and examined the impact of feed grind size, reagent addition rates, regrind stages and cleaner stages;

· the optimised flowsheet test work included open cycle and closed cycle testing;

· consistent graphite concentrate grades above 95% TGC were achieved with recovery above 92%;

· overall flow sheet to comprise typical graphite multi-stage flotation with regrind and cleaning.

The information communicated in this announcement contains inside information for the purposes of Article 7 of the Market Abuse Regulation (EU) No. 596/2014.

**ENDS**

Notes

Armadale Capital Plc is focused on investing in and developing a portfolio of investments, targeting the natural resources and/or infrastructure sectors in Africa. The Company, led by a team with operational experience and a strong track record in Africa, has a strategy of identifying high growth businesses where it can take an active role in their advancement.

The Company owns the Mahenge Liandu graphite project in south-east Tanzania, which is now its main focus. The Project is located in a highly prospective region with a high-grade JORC compliant Indicated and inferred mineral resource estimate of 59.48Mt @ 9.8% TGC, making it one of the largest high-grade resources in Tanzania, and work to date has demonstrated Mahenge Liandu's potential as a commercially viable deposit with significant tonnage, high-grade coarse flake and near surface mineralisation (implying a low strip ratio) contained within one contiguous ore body.

Other assets Armadale has an interest in, include the Mpokoto Gold project in the Democratic Republic of Congo and a portfolio of quoted investments.

More information can be found on the website www.armadalecapitalplc.com.