Central Asian Minerals and Resources PLC

August 11, 2011 02:00 ET

Operational update and Conditional Placing

                                                                                                 11 August 2011
                                   Central Asian Minerals and Resources PLC
                                          ("CAMAR" or the "Company")
                        Operational update and Conditional Placing to raise £4,262,105

Operational Update

On  26  April 2011, CAMAR completed the acquisition (the "Acquisition") of Gulf International Minerals  Limited
("Gulf  UK"),  the joint owner of the Joint Tajik-Canadian Limited Liability Company "Aprelevka" ("Aprelevka").
Aprelevka is licensed to operate and is currently operating the Aprelevka gold mine in Tajikistan.

The  circular  to shareholders in the Company containing further information about the Acquisition  included  a
Competent  Person's  Report  ("CPR") which identified  the opportunities and risks associated  with  Gulf  UK's
interest  in  the Aprelevka mine and made certain recommendations to the Company as to how best to exploit  the
opportunities at the mine. One of the key recommendations of the CPR was that CAMAR should undertake additional
due  diligence on the resources at Aprelevka and determine the extent of lower grade reserves at the  mine,  as
these had been disregarded by early Soviet geological surveys.

Since  completion  of the Acquisition, CAMAR has undertaken extensive mapping and sampling  across  Aprelevka's
licence areas. A number of samples are currently being tested at a laboratory in Kyrgyzstan and initial results
indicate the existence of significant lower grade reserves. Formal results of the sampling are expected  to  be
available  and  announced  in  early September 2011. CAMAR is also in the process  of  reviewing  overall  mine
planning and the implementation of various mining techniques to improve productivity and lower the overall cash
cost  per  ounce  produced.  An initial scoping phase of the mine planning is underway and is  expected  to  be
completed by the end of September.

In  the  near future, CAMAR intends to commission additional geochemical and geophysical surveys of its licence
areas,  including hyperspectral imaging, ahead of a planned diamond drilling programme. Moreover,  the  Company
has  been granted permission to commence mining at the Aprelevka East pit and intends to start operations there
as  soon as practicable. In addition, the Company has applied for a new mining licence in an area contiguous to
its existing operations and the Directors are confident that this application will be successful.

Finally,  CAMAR  is  pleased to announce the appointment of Neil Stevenson as Chief Operating  Officer  of  the
Company  in Tajikistan. Neil, who is a Fellow of the Australasian Institute of Mining and Metallurgy, has  over
25 years' experience operating in both open pit and underground mining operations, most recently with Hambledon
Mining  PLC in Kazakhstan. Neil's initial task will be to assess the operation of the Company's mill at  Kansai
and  to examine mining methods across the various licence areas as part of CAMAR's efforts to bring Aprelevka's
historically high recovery costs down to a level equal to or below industry benchmarks.

The  Company's interim results for the six months ended 30 June 2011 are expected to be announced in  September

Conditional Placing

In  order  to provide funds for the execution of the strategy and planned developments referred to  above,  the
Company is proposing to raise £4,262,105 through a conditional placing of 6,557,085 units at 65 pence per  unit
(a "Unit"). Each Unit comprises one ordinary share of no par value in the Company (an "Ordinary Share") and one
warrant  to  subscribe for an Ordinary Share at 65p per Ordinary Share at any time before  30  June  2014  (the

The  Articles of Association of the Company (the "Articles) contain certain pre-emption rights on the issue  of
Ordinary  Shares.  The pre-emption rights in the Articles were disapplied to a limited extent  at  the  general
meeting  of  the Company held on 21 April 2011 but disapplication of the pre-emption rights is insufficient  to
allow  the  Placing  to  be implemented. The Placing is therefore conditional, inter alia,  on  the  waiver  by
shareholders of pre-emption rights contained in the Company's Articles of Association. Accordingly, a  circular
is  being posted to the shareholders of the Company convening a General Meeting of the Company to be held on 26
August 2011 at which a resolution will be proposed to disapply pre-emption rights.

The  Placing  is  being effected by ZAI Corporate Finance Ltd ("ZAI") and the Company and  its  directors  have
entered into a conditional placing agreement with ZAI in relation to the Placing.

Directors' Participation in the Placing

The  following Directors are participating in the Placing. Details of the current interests in Ordinary  Shares
of  these  Directors and their respective interests after the completion of the Placing are shown in the  table

Name                        Current        Percentage of        Holding of         Percentage of
                          holding of       current issued    Ordinary Shares      enlarged issued
                           Ordinary        share capital    immediately after      share capital
                            Shares                          completion of the    immediately after
                                                                 Placing         completion of the
Lawrence Snee                 Nil               Nil              116,000                0.7
David Russell                 Nil               Nil              230,770                1.4

Following completion of the Placing, the Directors of CAMAR will be interested in a total of 7,849,415 Ordinary
Shares,  representing  47.49 per cent, of the Company's enlarged issued share capital  of  16,528,790  Ordinary

The Directors of CAMAR are responsible for the contents of this announcement.


Central Asian Minerals and Resources PLC                                                       01624 679 000
Christine Melian or John Leech

St Helens Capital Partners LLP                                                                 020 7368 6959
Mark Anwyl or Duncan Vasey

ZAI Corporate Finance Ltd                                                                      020 7060 2220
Marc Cramsie

Contact Information

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