Goldplat plc “a very strong financial quarter with 11,969 ounces produced” Gerard Kisbey-Green, CEO

Goldplat plc, the AIM quoted African gold producer, is pleased to 
announce a positive operations update for the three months ended 30 June 
2016 (the 'Quarter') for its two market leading gold recovery businesses 
in South Africa and Ghana, and its Kilimapesa Gold Project in Kenya, 
reporting a total gold and gold equivalent production of 11,969 ounces, 
continued profitability and steady progress on priority capital 
projects. 
 
   Production for the Quarter 
 
   During the Quarter, the Rand Refinery silver toll recovery project was 
completed and although the contract is currently under dispute, the 
Directors are confident that the dispute will be resolved.  Preliminary 
results from the project show a total of approximately 3,700kg of silver 
(1,593 gold equivalent ounces) and 42kg (1,350 ounces) of gold were 
produced for the Rand Refinery. Including this production, total gold 
produced during the Quarter was 11,969 ounces, total gold and gold 
equivalents sold was 6,584 ounces and gold and gold equivalents 
transferred to clients was 9,131 ounces, amounting to total gold and 
gold equivalents sold and transferred of 15,715 ounces. The difference 
between the gold production and gold sales and transfers reflects the 
reduction of stock. 
 
   This was an excellent Quarter for Goldplat, as with the elutions for the 
silver project reaching completion during the Quarter, the elution 
circuit was once again available for producing own and client gold. 
 
   Goldplat Recovery Pty Limited ('GPL') - South Africa 
 
 
   -- During the Quarter, 11,095 ounces of gold and gold equivalents were 
      produced, a total of 5,012 ounces were sold and 9,131 ounces were 
      transferred to clients by way of metal transfers. 
 
 
   -- The Company successfully completed the silver toll recovery project for 
      Rand Refinery to which the high grade circuit and approximately half of 
      the increased elution capacity had been dedicated. 
 
   -- The current dispute between the two companies is on-going and the Board 
      is confident that the dispute will be resolved. 
 
   -- Overall inventory was significantly reduced following the completion of 
      the silver project as 100% of the elution capacity being available for 
      gold recovery during the latter part of the Quarter. 
 
   -- GPL successfully delivered the first Dore bars to Heraeus Refinery as 
      part of our strategy to de-risk from single refinery dependency. 
 
   -- A new General Manager and a Strategic Sourcing Manager has joined the GPL 
      team, adding significant strength to the operational team. 
 
   -- The metallurgical research into optimising metal recovery from tailings 
      recovered from the Tailings Storage Facility, part of the re-processing 
      project, was completed. Complementary test work to determine the 
      operational variables of the pre-treatment of the tailings will have to 
      be completed before the plant design, production planning and economic 
      assessments can be undertaken. 
 
 
   Gold Recovery Ghana ("GRG") 
 
 
   -- During the Quarter, 304 ounces of gold was produced at GRG with 947 
      ounces being sold, the difference again representing the depletion of 
      stocks. 
 
   -- The renewal of the Gold and Environmental Protection Agency licences are 
      in progress. The processing of these applications is taking longer than 
      anticipated but GRG is working closely with the relevant authorities and 
      expects the process to be concluded during H1 2017. 
 
   -- The new commissioning date of the elution plant project is still being 
      negotiated with the Ghanaian Authorities and will be agreed once the 
      licences have been renewed. 
 
   -- The de-commissioned carbon-in-leach ('CIL') plant was containerised and 
      shipped to Kenya. This has freed up significant surface area, part of 
      which will be used for the Elution Plant project. 
 
   -- Relationships with clients in Ghana remained stable during the Quarter 
      and deliveries from these clients have normalised. 
 
   -- During the Quarter, representatives from the company visited a number of 
      gold mining operations in South America and agreed to process a trial 
      batch of material. The results from the trial were very encouraging and 
      the decision has been taken to move a procurement officer to South 
      America for a period of six months to arrange more trials, and 
      potentially the processing of full batches. 
 
   -- As part of our strategy to explore other international markets, a 
      delegation will be visiting gold mining operations in Guinea to 
      investigate the availability of materials for processing at GRG. 
 
 
   Kilimapesa Gold ("KPG") 
 
 
   -- Kilimapesa produced 570 ounces of gold during the Quarter and 625 ounces 
      from the mine were sold. 
 
   -- Monthly losses continue to be reduced by improving gold yields, and cost 
      reduction through various initiatives. 
 
   -- Processing of high grade artisanal tailings from within the licence area 
      continued and have contributed very positively to the overall gold 
      production for the Quarter. 
 
   -- Limited production of high grade ore from on-reef exploration at 
      Teng-Teng continued during the quarter, with a second outlet being 
      developed. 
 
   -- Plans are still underway to prepare for a mining licence application. 
 
   -- The Knelson concentrator plant trials proved to be very successful - the 
      equipment has now been installed and re-commissioned at the new plant 
      site. The concentrator will be used to process lower grade artisanal 
      tailings. 
 
   -- Good progress is being made on the new plant project: 
 
          -- The EIA report has been approved and KPG has received a VAT 
             exemption for import of plant and equipment. 
 
          -- The CIL plant from GRG has been shipped to Kenya and was cleared 
             through customs during the Quarter. 
 
          -- All major infrastructure is being manufactured at GPL in South 
             Africa and shipped to Kenya as containers are filled. 
 
          -- The land required for the tailings deposition has been acquired 
             and the design for the tailings facility has been completed. 
 
          -- The tailings facility design for the Knelson concentrator tailings 
             is complete and a borrow pit has been excavated. 
 
          -- On-site, water supply to the plant has been completed with storage 
             tanks installation complete. 
 
          -- Various civil works around site have been completed. 
 
          -- The plant design is complete and approved with a wet crushing 
             section added during the Quarter. 
 
          -- A geologist was appointed on 1st July 2016 to strengthen the team. 
 
          -- A facility for $250 000 has been arranged with Stanbic Kenya 
             specifically for capital equipment. 
 
 
   Anumso Gold Limited ('Anumso") 
 
   Good progress was made in finding a partner for the Anumso project. A 
letter of intent, to invest and earn into the project, was signed post 
the Quarter-end by a Canadian listed company. A binding option agreement 
is expected to be finalised during September 2016. Such an earn-in will 
provide investment into the project, with Goldplat retaining exposure 
without having to raise capital during the earn-in period. 
 
   Rand Refinery silver project dispute update 
 
   Further to the announcement made on 11 July 2016 regarding the dispute 
between GPL and Rand Refinery, the two parties have been in discussions 
regarding the best possible way to resolve the dispute amicably. A joint 
team has been appointed to manage a process of investigation, to be run 
by independent external industry experts, to assist the parties 
resolving the dispute. The investigation is expected to be completed 
during the final quarter of 2016, following which the two parties will 
seek resolution in light of the findings of the independent 
investigation. 
 
   During the course of this investigation Rand Refinery will deal with 
Goldplat in a "business as usual" manner regarding refining and payments, 
keeping the disputed amount separate from other accounts. The dispute is 
unfortunate given the original intention of the project, to enhance the 
relationship between the two parties, and to demonstrate the improved 
capability and flexibility gained by GPL with the installation of the 
new elution plant. 
 
   Gerard Kisbey-Green, CEO of Goldplat plc, commented: 
 
   "This has been a very strong final Quarter of FY 2016 and I am very 
pleased with what the various Goldplat teams have achieved. 
Notwithstanding the dispute with Rand Refinery, the silver project was a 
great technical success and processing the first trial batch of South 
American material successfully in Ghana was an unexpected bonus! 
 
   These projects and a number of others are proving that the capital 
invested in infrastructure and new equipment during the year was well 
invested and will continue to deliver returns going forward. 
 
   Committing a milling circuit and a substantial portion of the elution 
capacity at GPL to the Rand Refinery silver project for most of the 
Quarter meant we had a lot of client and own material to elute in the 
final month of the Quarter. I am pleased to say that all client material 
and a significant amount of our own material was successfully processed 
during the month. 
 
   Lastly, I believe that both the Kilimapesa project and our strategy to 
procure material from South America have gained momentum during the 
Quarter and will continue into the new financial year. Whereas the 
results reflect the operational performances only, I am pleased to 
report that including all head office costs and costs associated with 
non-operating subsidiaries, the Group was profitable during the 
Quarter."