KEFI Minerals plc

27-28 Eastcastle Street London W1W 8DH United Kingdom

Tel: +90 232 381 9431

Fax: +90 232 381 9071

Email: [email protected]

13 July 2016

KEFI Minerals plc ("KEFI" or the "Company")

BOARD OF DIRECTORS RESTRUCTURED FOR DEVELOPMENT OF TULU KAPI

KEFI Minerals (AIM: KEFI), the gold exploration and development company with projects in the Kingdom of Saudi Arabia and the Federal Democratic Republic of Ethiopia, announces that the Board of Directors is being restructured as from August 2016 as part of the Company's transition towards gold production.

It is intended that Mr Mark Wellesley-Wood, experienced African mining operator, will join the Board as Non-Executive Director. He will also serve as Chairman of the newly-created Technical Review Committee and Professor Ian Plimer will serve as Chairman of the newly-created Exploration Review Committee. The existing roles of Deputy Chairman and Senior Independent Director will pass from Professor Plimer to Mr Mark Wellesley-Wood as from January 2017.

The Board of Directors' will establish its two new committees to independently review technical and exploration matters during the Company's planned rapid expansion. This will allow Mr Jeff Rayner to step down from the Board and to focus on a more free-ranging role to identify value adding opportunities for KEFI's next stage of development. Mr Rayner will also continue to advise and mentor the exploration team, which remains under Group Exploration Manager, Dr Fabio Granitzio.

Mr John Leach has agreed to join the senior executive team as Finance Director as this function expands in scale and responsibility.

These changes to the structure of the Board of Directors serve a number of important purposes as the Company begins its transition towards production. The Board will comprise two executive directors (Executive Chairman Mr Harry Anagnostaras-Adams and Finance Director Mr John Leach) and three non- executive directors (His Excellency Mr Norman Ling, Professor Ian Plimer and Mr Mark Wellesley- Wood). The independent non-executive director is His Excellency Mr Ling and Mr Wellesley-Wood will also be an independent non-executive director upon his appointment.

Executive management will continue to report to the Executive Chairman, notably the Chief Operating Officer and Managing Director of KEFI Minerals Ethiopia, Mr Wayne Nicoletto, the Finance Director Mr John Leach and Group Exploration Manager Dr Fabio Granitzio. KEFI has already installed strong development, community, finance and exploration teams under these executives and will next assemble the production operations team. The principal project contractors are market leaders Ausdrill/African Mining Services and Lycopodium.

Mr Harry Anagnostaras-Adams, Executive Chairman, said:

"The planned changes to the Board of Directors announced today reflect our transition from exploration- only to emerging production as well as exploration. KEFI is fortunate to have such a depth expertise from individuals adjusting their roles to suit the changing needs of the Company. We look forward to welcoming to the Board Mr Mark Wellesley-Wood, who has deep experience in African mining operations as well as mining finance in the City."

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Further information can be viewed on KEFI's website at www.kefi-minerals.com

NOTES TO EDITOR

Background of Mr Mark Wellesley-Wood

Mark Wellesley-Wood is the Chairman of Tri-Star Resources plc, an AIM quoted antimony mining and processing company, and a mining engineer with over 40 years' experience in both the mining industry and investment banking. Previously, Mark was a director of Investec Investment Banking and Securities in London. Mr Wellesley-Wood has been closely involved in mining activities in Africa, having started his career on the Zambian copper-belt, and is a former Executive Chairman and CEO of South African gold miner, DRD Gold Limited.

KEFI Minerals plc

KEFI is the operator of two advanced gold development projects within the highly prospective Arabian- Nubian Shield, with an attributable 1.93Moz (100% of Tulu Kapi's 1.72Moz and 40% of Jibal Qutman's 0.73Moz) gold Mineral Resources (JORC 2012) plus significant resource growth potential. KEFI targets that production at these projects generates cash flows for further exploration and expansion as warranted, recoupment of development costs and, when appropriate, dividends to shareholders.

KEFI Minerals in Ethiopia

The Tulu Kapi gold project in Western Ethiopia is being rapidly progressed towards development, with the Mining Licence granted in April 2015.

KEFI's Definitive Feasibility Study was then completed and the Company is now refining contractual terms for project construction and operation. Latest estimates for annual gold production are c. 100,000oz pa for a 10-year period and All-in Sustaining Costs (including operating, sustaining capital and closure) of approximately US$741/oz to US$762/oz at a gold price range of US$1,200/oz to US$1,500/oz. Tulu Kapi's Ore Reserve estimate totals 15.4Mt at 2.12g/t gold, containing 1.05Moz. The first eight production years of the open pit are estimated to yield an average of 115,000oz pa.

All aspects of the Tulu Kapi (open pit) gold project have been reported in compliance with the JORC Code (2012) and subjected to reviews by appropriate independent experts. These plans now also reflect the agreed construction and operating terms with project contractors, and have been independently reviewed by experts appointed for the project finance syndicate.

A Preliminary Economic Assessment has been published that indicates the economic attractiveness of mining the underground deposit adjacent to the Tulu Kapi open pit, after the start-up of the open pit and after positive cash flows have begun to repay project debts.

At a gold price of US$1,350/oz, the projected cash flows indicate a cash build-up in the first three production years of US$190 million, which would be sufficient to repay all project debts, fund the development of the underground mine and commence paying dividends to shareholders.

KEFI Minerals in the Kingdom of Saudi Arabia

In 2009, KEFI formed G&M in Saudi Arabia with local Saudi partner, Abdul Rahman Saad Al-Rashid & Sons Company Limited ("ARTAR"), to explore for gold and associated metals in the Arabian-Nubian Shield. KEFI has a 40% interest in G&M and is the operating partner. To date, G&M has conducted preliminary regional reconnaissance and has had five exploration licences ("ELs") granted, including Jibal Qutman and the more recently granted Hawiah EL that contains over 6km strike length of outcropping gossans developed on altered and mineralised rocks with all the hallmarks of a copper-gold-zinc VHMS deposit.

At Jibal Qutman, G&M's flagship project, Mineral Resources are estimated to total 28.4Mt at 0.80g/t gold for 733,045 contained ounces. The shallow oxide portion of this resource is being evaluated as a low capital expenditure heap-leach mine development.

ARTAR, on behalf of G&M, holds 23 EL applications that cover an area of approximately 1,303km2. ELs are renewable for up to three years and bestow the exclusive right to explore and to obtain a 30-year exploitation (mining) lease within the area.

The Kingdom of Saudi Arabia has instituted policies to encourage minerals exploration and development, and KEFI Minerals supports this priority by serving as the technical partner within G&M. ARTAR also serves this government policy as the major partner in G&M, which is one of the early movers in the modern resurgence of the Kingdom's minerals sector.