25 September 2013

African Mining and Exploration plc ("AME" or "the Company")

Interim Results for the six months ended 30 June 2013

African Mining and Exploration plc (AIM: AME), announces its interim financial results for the six months ended 30 June 2013.

Copies of the Company's interim Financial Statements will be made available to download from the Company's website www.ameplc.co.uk. To view the press release with maps and the full interim financial results please see the following link:

For further information please visit www.ameplc.co.uk or contact:

OPERATIONAL HIGHLIGHTS

FOR THE SIX MONTHS ENDED 30 JUNE 2013

Overview

We are pleased to report that since we released our 2012 Annual Report in May, we have made significant progress in transforming the Company from a single country, West African focussed gold explorer towards holding a portfolio of resource projects in different geographies. The transition is led by a globally experienced Board and management team with extensive experience in the resources industry, including David Archer who was appointed to the Board in May 2013, made a substantial cash investment in the Company in July and became CEO in August.

The significant developments in the Company's portfolio transformation are:

·        in August 2013 the Company announced the conditional agreement to divest its subsidiary, AME West Africa Ltd ("AME West Africa"), to Alecto Minerals Plc ("Alecto") (including the Kossanto Gold Project ("Kossanto")). The agreement allows AME to retain an indirect exposure to Kossanto via a substantial (24.9%) shareholding in Alecto and a convertible loan note potentially convertible into approximately 5.9% of Alecto's expanded issued share capital; and

·        in September 2013 the Company entered into an agreement to acquire of 80% of the share capital of Matilda Minerals Limitada ("Matilda"), the owner of a mineral sands exploration project in a world class mineral sands province in Mozambique.

To underline the Company's change in strategic direction it plans to change its name on 1 October 2013 to Savannah Resources Plc and received approval from shareholders to do so on 24 September 2013.

In June 2013 the Company announced a maiden JORC Inferred Resource of 107,000 oz gold at the Kossanto Project. This project is to be sold to Alecto (subject to Alecto receiving shareholder approval at a general meeting on 2 October 2013), an AIM listed African focussed resource exploration and development company, which is well placed to be able to further advance this project. This will enable AME to focus on expanding its resources portfolio with new investment opportunities.

Strategy

 The change in strategy made by the Board in 2013, which sees the Company establishing itself as a multi-commodity resources company, is driven by the following key considerations:

·        Through adversity comes opportunity and the straitened times in the junior exploration market has resulted in a marked reduction in competition for projects, providing a wider range of projects available for acquisition and investment;

·        The capital expenditure moratoriums introduced by many of the majors is expected to provide opportunities to acquire quality projects at relatively advanced levels of development which may become available at low cost and so the Company is positioning itself to be able to take advantage of such opportunities;

·        Holding a portfolio of resources investments, featuring both passive strategic holdings and projects directly managed by the Company; and

·        Active investment strategy in place to further develop the business and build shareholder value through strategic acquisitions, value-adding techniques including drilling and resource definition, and timely divestments.

Acquisition of Matilda Minerals Limitada (80%)

In September 2013 the Company entered into an agreement to acquire an 80% shareholding in Matilda Minerals Limitada ('Matilda'), a privately owned Mozambican heavy mineral sands explorer. Matilda holds the highly prospective 180km² Jangamo tenement ("Jangamo" or "Jangamo Project") which is located in a world class mineral sands province in Southern Mozambique. Scout sampling by AME has returned results of up to 18.1% total heavy minerals ("THM'"), with ilmenite, rutile and zircon recorded in the mineral concentrate.

Jangamo lies immediately to the west of Rio Tinto's ('Rio') Mutamba deposit, one of two major deposits Rio has defined in Mozambique, which collectively have an exploration target of 7-12 billion tonnes at 3-4.5% THM (published in 2008). Importantly, exploration work conducted at the Jangamo to date indicates that its geology and geomorphology is similar to that of Rio's adjacent Mutamba deposit. Mozambique is currently the world's fourth largest producer of titanium feedstocks and the fifth largest producer of zircon.

The Jangamo Project area has excellent infrastructure with both grid power and the main EN1 highway cutting through the middle of the Project. The nearby town of Inhambane is serviced daily by LAMAir flights out of Maputo and there is excellent logistics in place to support operations, including a small port.

In consideration for the 80% shareholding in Matilda, the Company will pay an initial sum of up to AUD125,000 (approximately £72,000) as a reimbursement of verified expenses on the project and AUD400,000 (approximately £231,000) equivalent in the Company's shares. Deferred consideration of AUD$500,000 (approximately £289,000), payable in the form of shares, arises upon the achievement of each of three significant exploration milestones (3% THM JORC Inferred Resource of (a) 150Mt, (b) 350Mt and (c) 500Mt). The remaining 20% shareholding will be free carried until the point of decision to carry out a Definitive Feasibility Study. When this point is reached the 20% shareholder can either: (i) contribute in proportion to his shareholding at that time; (ii) become diluted in accordance with a pre-determined methodology; or (iii) sell his shareholding pro rata to the Project value. Completion is conditional on the finalisation of certain legal formalities in the UK and Mozambique and is anticipated to occur around the end of September 2013.

The Company is committed to ramping up exploration and envisages that it will spend up to AUD$450,000 (approximately £260,000), subject to the availability of funds, on the permit in the next 12 months and plans to commence a drilling programme in November 2013.

Divestment of AME West Africa Limited to Alecto

In August 2013 the Company entered into a conditional agreement with Alecto to sell its subsidiary AME West Africa Limited, which, through Caracal Gold Mali SARL ("Caracal"), holds six exploration permits in Mali including the Kossanto Gold Project. Alecto is an AIM listed resources company with a multi-commodity portfolio across highly prospective but under-explored regions of Africa (Mauritania and Ethiopia). The divestment allows AME to retain exposure to the Kossanto project (via a significant shareholding in Alecto) and eliminate the contingent obligations to make deferred consideration payments to Electrum (from whom the Company acquired the Kossanto project from) as well as associated project funding requirements. It also provides exposure to Alecto's exciting Ethiopian and Mauritanian exploration projects.  Alecto is in a strong position to be able to further develop the Kossanto project, enabling AME to focus on expanding its resources portfolio with new investment opportunities.

The consideration payable to the Company for AME West Africa will be £1,250,000 equivalent of Alecto shares priced at 1.15p and it will also retain an existing net smelter royalty of 1% on the first 300,000 ounces gold produced from the AME West Africa permits. In addition, the Company has agreed to make a £500,000 strategic cash investment in Alecto through a £150,000 placing of new shares at a price of 1.15p and a £350,000 placing of 12 month Alecto convertible loan notes which are convertible at either party's option at a price of 1.15p per share and potentially represent approximately 5.9% of Alecto's expanded issued share capital..

It is intended that Mark Jones, who was the founder and CEO of the Company from 2010 until August 2013, will join the Board of Alecto as CEO in order to continue the development of the Kossanto Gold Project. Mark will also leave the Board of the Company on 30 September 2013.

Completion of the agreement is subject to the satisfaction of certain conditions including Alecto holding a general meeting of its shareholders to approve an increase in its share capital, the disapplication of pre-emption rights and the allotment of shares for non-cash consideration. This general meeting is scheduled for 2 October 2013 and completion of the transaction is expected very shortly thereafter.  The assets of AME West Africa, including Caracal have been transferred into assets held for sale in the Consolidated Statement of Financial Position.

In May 2013 Alecto announced it had agreed Heads of Terms for a planned joint venture in Ethiopia which would be funded by Centamin Plc ("Centamin"), at the Wayu Boda Gold Project covering 945km² licence area in the Adola greenstone belt in southern Ethiopia, targeted at accelerating the project's development (rock chip samples have returned grades of up to 47.4 g/t au; 24km south of National Mining Corporations 'Dawa' 17Moz of gold discovery).

Exploration Update

Although Mali suffered a well-publicised coup d'état in March 2013 operations continued with minimal impact and recent elections have been completed with the appointment of former Prime Minister of Mali (1994 to 2000), Ibrahim Boubacar Keïta, as President of Mali from September 2013.

The Company's exploration has focussed primarily on the Kossanto Gold Project and has been rewarded with the confirmation of a maiden JORC resource. Specifically, following on from the December 2012 RC drilling programme at Kossanto, which identified a series of mineralised intercepts, the Company contracted Wardell Armstrong International to produce a resource estimate. The conclusion of their review was that, based on the exploration work done to date, there is an Inferred Resource of 2.35 million tonnes at a grade of 1.42 g/t, for 107,000 oz Au at a cut of grade of 0.5 g/t Au. The resource is near surface and is calculated using mineralised intercepts from the most intensively drilled central part of the 500m section of the drilling at Gourbassi East. Additional drilling will be required to include the remaining part of the block into a potentially enlarged mineral resource.

£500,000 Equity Investment

In July 2013 the Company entered into a share subscription agreement with David Archer who was issued with 16,666,668 new ordinary shares in the Company, at a price of £0.0225, for a consideration of £375,000 cash. Additionally, and following shareholder approval on 24 September 2013, he will shortly make a further subscription of £125,000 cash for 5,555,556 new ordinary shares in the Company, at a price of £0.0225. As part of the subscription agreement David Archer receives half a warrant for every share subscribed to (11,111,112 warrants). The warrants have an exercise price of £0.03 and an exercise period of five years.

Outlook

Following the change of strategic direction in 2013, which has resulted in the Company establishing itself as a multi-commodity resources company, the Board is confident that the resulting active investment strategy will further develop the business and build shareholder value through strategic acquisitions, value-adding techniques and timely divestments.

Upon completion of the divestment of AME West Africa, the Company's strategic holding in Alecto will take effect. As a result we expect to benefit from both the next stage of exploration at the Kossanto Gold Project, where additional drilling could lead to a potentially enlarged mineral resource, and also from the proposed joint venture between Alecto and Centamin in Ethiopia (to be funded by Centamin), for which Heads of Terms have been agreed.

The drilling program planned for November 2013, at the recently acquired Jangamo exploration project in a world class mineral sands province, is an exciting step in the Company's development and is further testament to the Board's desire to create shareholder value by establishing a leading multi-commodity resources company.

In line with the prudent management concepts, the Company regularly reviews its cash flow projections and will regularly assess the timing of potential future fundraising activity.

………………………………………………..

Board of Directors

African Mining & Exploration Plc

Date: 24 September 2013

CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME

FOR THE SIX MONTHS ENDED 30 JUNE 2013

CONSOLIDATED STATEMENT OF FINANCIAL POSITION

AS AT 30 JUNE 2013

The interim financial statements on pages 8 to 18 were approved and authorised for issue by the Board of Directors on 24 September 2013 and were signed on its behalf by:

………………………………………………..

D S Archer

Executive Director

Company number: 07307107