ABN Newswire

Baobab Resources plc (LON:BAO) Ruoni Flats Drilling Uncovers Continuations To Tenge Mineralisation

newsroom@abnnewswire.net — Thu, 24 May 2012 16:00:00 GMT

Baobab Resources plc (LON:BAO) the mineral exploration and development company with a portfolio of assets in Mozambique, is pleased to provide an update on drilling at the Tete pig iron, vanadium and titanium project.

IFC (International Finance Corporation) hold a 15% participatory interest in the Tete Project with Baobab owning the remaining 85%.

HIGHLIGHTS

- Drilling programmes in the Ruoni prospect area are nearing conclusion with more than 7,500m of diamond and reverse circulation (RC) drilling completed to date.

- Drilling at Ruoni Flats, where a 120Mt to 260Mt Exploration Target has been estimated by consultant Coffey Mining, has intersected a heavily mineralised package, up to 100m thick, that clearly represents the downdip continuations to the Ruoni North and Tenge resource blocks.

- Resource upgrade drilling is on-going at Chitongue Grande, Ruoni North and Ruoni South resource blocks.

- 2011 RC drilling of the down-dip portions of the 159Mt Tenge resource block terminated in mineralisation due to excessive water. Recently completed diamond twin holes have penetrated deeper through the sequence and demonstrate that the mineralised package is substantially thicker than that modelled in the resource estimate.

Commenting today, Ben James, Baobab's Managing Director, said: "Baobab is very pleased with progress made in the field, particularly at Ruoni Flats where drilling is outlining a potentially substantial addition to the resource inventory. An expanded resource in the tenge/Ruoni area will enable the Company to credibly consider larger scale production scenarios, the technical and commercial merits of which will be further clarified as the results of the marketing study and high level financial simulations are finalised. Baobab looks forward to presenting the drill hole analytical results as they become available.

"The pre-feasibility study is progressing on schedule. The beneficiation test work is nearing completion, on the back of which the process engineering can get underway. The environmental impact assessment, plant and infrastructure option studies and marketing report are all well underway. In parallel to the technical programmes, the Company is advancing corporate initiatives to ensure the project's successful development.

"I encourage investors to download a copy of this announcement from the Company's website as it includes a cross-section through the Ruoni Flats / Tenge prospects that illustrates the scale and continuity of the deposit."

DRILLING PROGRAMME

To date an aggregate total of c.3,000m diamond and c.4,700m RC has been completed since drilling commenced on 27 February 2012. The purpose of the drilling programme is twofold: to upgrade confidence in the Chitongue Grande, Ruoni North and Ruoni South resource blocks from inferred to indicated categories; and to define a new resource block in the Ruoni Flats prospect area where consultant, Coffey Mining, estimated an Exploration Target of 120Mt to 260Mt (please refer to RNS dated 29 March 2012 for details).

Drilling at Ruoni Flats has intersected a heavily mineralised package that clearly represents the down-dip continuations to the Ruoni North and Tenge resource blocks. The package varies in thickness from c.80m to c.100m and typically includes minor intercalations of non-mineralised gangue material. Depth to top of mineralisation commences from c.175m in the north and east, deepening to up to 294m in the southwest.

Two diamond twin holes have also been completed at the Tenge resource block. 2011 RC drilling of the down-dip portions of the 159Mt Tenge resource terminated in mineralisation due to excessive water. The diamond twin holes have penetrated deeper through the sequence and demonstrate that the mineralised package in the deeper portions of the block is substantially thicker than that modelled in the resource estimate.

Drill samples are composited to 0.5m or 1m intervals on site before being sent to ACT-UIS laboratories in Tete, Mozambique for crushing and splitting. Representative samples are then despatch to ALS Chemex laboratories in Perth, Western Australia for further compositing (maximum composite length of 6m), Davis Tube Recovery (DTR) and X-ray Fluorescence Spectrometry (XRF) analysis. The Company will announce results as they come to hand.

A copy of this RNS, including a drill hole location plan and cross-section through the Ruoni Flats/Tenge prospects, is available for download from the Company's website at: http://www.baobabresources.com/investor/aimannouncements.

Baobab Resources PLC
Ben James: Managing Director
Tel: +61-8-9430-7151

Jeremy Dowler: Chairman
Tel: +44-1372-450529

Grant Thornton Corporate Finance
Gerry Beaney / David Hignell
T: +44-20-7383-5100

Shore Capital 
Jerry Keen / Toby Gibbs
T: +44-20-7468-7964

Fortbridge Consulting
Matt Beale
T: +44-7966-389-196

Baobab Resources Plc (LON:BAO) Secures 60% Project Interest in Monte Muande

newsroom@abnnewswire.net — Tue, 10 Apr 2012 16:00:00 GMT

Baobab Resources Plc (LON:BAO) is an iron ore, base and precious metals explorer with a portfolio of exploration projects in Mozambique. On 15 November 2010 the Company announced the signing of a Joint Venture with North River Resources plc ('North River') in relation to North River's Monte Muande magnetite/phosphate, base and precious metal project (the 'Project') in the Tete province of Mozambique. The Company is pleased to present an update on work completed.

Commenting today, Ben James, Baobab's Managing Director, said: "it is with great pleasure that we are able to present the results of the initial drilling campaign on this exciting prospect. 69% Fe is an exceptional grade and, together with the possibility of producing a complementary high grade rock phosphate concentrate, immediately demonstrates the value of this Joint Venture in the Company's portfolio."

MONTE MUANDE DIAMOND DRILLING & RESULTS

During the latter half of 2011, Baobab completed a c.2,000m diamond drilling at Monte Muande (collar details presented below). The programme comprised 10 angled drill holes sited along a staggered traverse transecting the central portion of the deposit. Drilling intersected broad zones of shallowly dipping magnetite (an iron (Fe) mineral) and apatite (a phosphate (P2O5) mineral) mineralisation*. Please note that drill holes have not been drilled in sequence, consequently there are gaps in the hole numbering.

Analytical results from nine drill holes have been returned. Due to the disseminated nature of the apatite mineralisation, the entire length of each drill hole was sampled and analysed. The average head grade of all sampled material reported 10% Fe and 3% P2O5.

Significant intercepts of the magnetite rich zones are tabulated below. The average head grade of all Muande significant intercepts is 21% Fe with the Davis Tube Recovery (DTR) magnetic concentrate grades reporting a weighted average of 69% Fe at a mass recovery of 26% (representing a total iron yield of 87%). Deleterious elements are generally very low in the DTR concentrate with the exception of sulphur (S) and titanium (TiO2); additional test work is currently underway to determine the best magnetic strength conditions to optimise the concentrate quality.

The magnetite intercepts below generally reported an enrichment of phosphate compared to background values with an average head grade of 4% P2O5. The Phosphate was further upgraded to a calculated weighted average of 5.5% (ranging up to 8.8%) in the non-magnetic reject component of the DTR process. A bench-scale apatite recovery test work programme is being prepared to determine the potential quality and recovery rates of a phosphate rock concentrate.

* To view a location plan and cross section, please download a copy of this announcement from the Company's website at http://www.baobabresources.com/investor/aim-announcements.

MONTE MUANDE TRENCH SAMPLING

A total of 76 vertical trench samples have been collected from various locations across the Monte Muande deposit. The sampling programme was designed to test the eluvial horizon (in situ remnant soil and weathered bedrock) overlying the deposit which may represent a potential source direct shipping ore (DSO) requiring little or no beneficiation. Sizing and analysis is currently underway.

MONTE MUANDE PROJECT OVERVIEW

The Monte Muande magnetite/phosphate deposit is located 25km to the northwest of the provincial capital of Tete. The international highway to Zambia passes within 3km of the project. The deposit is hosted in a carbonatite and was explored during the 1980s by the Geological Institute of Belgrade (GIB). GIB completed two phases of vertical diamond drilling between 1983 and 1985 totalling 5,570m, 2,960m of which falls within the Joint Venture area. The institute also completed more than 10km of trenching and bench-scale metallurgical test work.

Using the GIB data sets in conjunction with more recent soil geochemistry and aeromagnetic surveys completed by Omegacorp, consultants Coffey Mining Pty Ltd calculated an Exploration Target of 200Mt to 250Mt to an average depth of c.40m below surface (as tabled below). Coffey also carried out a high level review of the GIB metallurgical data which indicated that a magnetite concentrate containing 67% Fe could be generated via a process of coarse grinding and magnetic separation, followed by regrinding and a flotation circuit to recover a phosphate rock concentrate containing 36% P2O5. Total magnetite and apatite recoveries of 92% and 70% respectively were recorded. Please refer to RNS announcement dated 21 March 2011 for additional details.

To view the complete Baobab Resouces announcement including all data, please refer to the following link below:
http://media.abnnewswire.net/media/en/docs/72232-ASX-BAO-10042012.pdf

Baobab Resources PLC
Ben James: Managing Director
Tel: +61-8-9430-7151

Jeremy Dowler: Chairman
Tel: +44-1372-450529

Grant Thornton Corporate Finance
Gerry Beaney / David Hignell
T: +44-20-7383-5100

Shore Capital 
Jerry Keen / Toby Gibbs
T: +44-20-7468-7964

Fortbridge Consulting
Matt Beale
T: +44-7966-389-196

Baobab Resources Plc (LON:BAO) Ruoni Flats Exploration Target

newsroom@abnnewswire.net — Thu, 29 Mar 2012 18:00:44 GMT

Baobab Resources Plc (LON:BAO) the iron ore, base and precious metals explorer with a portfolio of exploration projects in Mozambique, is pleased to announce the results of an exploration target estimation underlying the Ruoni Flats area of the Tenge/Ruoni prospect (the 'Exploration target'). Tenge/Ruoni already accounts for over 300Mt of the global 482Mt Tete Project iron / vanadium / titanium resource inventory.

IFC (International Finance Corporation) hold a 15% participatory interest in the Tete Project with Baobab owning the remaining 85%. On 26 March 2012, the Company announced that it had successfully raised GPGBP2.76m (before expenses) which, combined with the IFC's 15% participatory contribution (announced on 6 February 2012), provides a substantial portion of the working capital required to complete the Pre-Feasibility Study (PFS) currently underway.

HIGHLIGHTS
- Independent consultants have estimated the Exploration Target underlying the Ruoni Flats area at 120Mt to 260Mt at a head grade of up to 38% Fe.
- This Exploration Target demonstrates the potential to expand the global resource inventory at Tete towards c.750Mt (more than double the original target of 300Mt).
- Pre-Feasibility Study is on schedule with beneficiation testwork well underway and preliminary environmental surveys completed.
- Resource upgrade twin drilling has commenced at Ruoni South.

Commenting today, Ben James, Baobab's Managing Director, said: "The Exploration Target not only confirms the Tenge/Ruoni prospect as a standalone deposit, but also underlines the potential for a significantly larger production rate over a significantly longer mine life than that modelled in the 2011 Scoping Study.
"With the PFS already underway and on schedule, the Company is well positioned to deliver a meaningful flow of news over the coming months as various aspects of the project are systematically de-risked."

RUONI FLATS EXPLORATION TARGET
Tenge/Ruoni is the easternmost prospect area of the Massamba Group, Tete Project. The area is underlain by a thick (60m to 150m), laterally continuous package of intense titano-magnetite/ilmenite mineralisation that has been synformally folded with the fold hinge plunging gently to the west-northwest. The northern and southern limbs of the fold comprise the Ruoni North and Ruoni South resource blocks, while the outcropping fold hinge comprises the Tenge resource block to the east.

A total of c.15,750m of diamond and reverse circulation (RC) drilling was completed in the Tenge/Ruoni area during 2011 culminating in the estimation of a combined JORC compliant Inferred Resource of 308Mt: comprising 93Mt at Ruoni North, 56Mt at Ruoni South and 159Mt at Tenge (announced on 31 October 2011, 7 December 2011 and 5 March 2012 respectively).

International consultancy, Coffey Mining Pty Ltd ('Coffey Mining'), was commissioned to complete an Exploration Target assessment of the resource potential of the buried fold hinge underlying the 'Ruoni Flats' area between Ruoni North and Ruoni South, immediately west of Tenge. The strong magnetic signature over this area, similar to that of the known mineralised zones, supports the geological model of the gently folded mineralised package persisting below cover with depths to top of mineralisation ranging up to 175m.

To determine the exploration potential, Coffey Mining extrapolated the mineralisation envelopes from the drilled resource blocks in to the Ruoni Flats area. The areal extent of the target area was defined by the limits of the high magnetic response in the reduced to pole (RTP) geophysical image.

Indicative tonnages and grades are presented in the table below. Lower and upper target tonnages have been derived assuming average thicknesses of mineralisation of 35m and 75m respectively (bulk density estimated at 3.5t/m3). Average grades from the Tenge resource estimate have been applied to the upper grade ranges for Fe, V2O5 and TiO2.

EXPLORATION TARGET FOR RUONI FLATS PROSPECT
INDICATIVE TONNAGES & GRADES

--------------------------------------------------------------
Tonnes Range (Mt)             Head Grade Ranges
--------------------------------------------------------------
Lower  Upper         Fe (%)        V2O5 (%)      TiO2 (%)
                   Lower  Upper  Lower  Upper   Lower  Upper
120     260         25     38     0.1   0.25      5     12
--------------------------------------------------------------

For the full announcement including tables and charts, please visit:
http://media.abnnewswire.net/media/en/docs/72137-lon_bao_20120329.pdf

Baobab Resources PLC
Ben James: Managing Director
Tel: +61 8 9430 7151
Jeremy Dowler: Chairman
Tel: +44 1372 450529

Grant Thornton Corporate Finance
Gerry Beaney / David Hignell
Tel: +44 20 7383 5100

Shore Capital Group
Jerry Keen / Toby Gibbs
Tel: +44 20 7468 7964

Fortbridge Consulting
Matt Beale
Tel: +44 7966 389 196

Baobab Resources plc (LON:BAO) Placing of new ordinary shares to raise GBP2.76 Million

newsroom@abnnewswire.net — Mon, 26 Mar 2012 18:36:41 GMT

Baobab Resources plc LON:BAO), the iron ore, base and precious metals explorer with a portfolio of mineral projects in Mozambique is pleased to announce that it has raised GBP2.76 million (before expenses) through a placing by Shore Capital Stockbrokers Limited of 23,000,000 new ordinary shares of 1p each (together the "Placing Shares") at a price of 12p per Placing Share (the "Placing"). The Placing utilises the full extent of Baobab's existing authority to issue shares for cash.

The proceeds of the Placing will, primarily, assist the Company to fund work on the Tete Pre-Feasibility Study ("PFS") on its core iron ore assets in Mozambique.

Jeremy Dowler, Chairman of Baobab, commented:
"We are pleased to welcome the new shareholders to the register and this funding will allow us to advance our Pre-Feasibility Study on our flagship Tete project strategically located in the emerging mining hub of the Tete province, Mozambique, one of Africa's fastest developing economies, with unique access to existing and expanding power and infrastructure as well as abundant coal reserves."

Ben James, Baobab's Managing Director, added:
"Following the Scoping Study, announced in November last year, which established the compelling economics of a vertically integrated mine-mouth smelting operation to produce a higher value, higher demand, pig iron product for distribution and sale in the growth regions of Asia, and the expanded resources at the Company's Tenge prospect, Baobab is now able to press ahead with the Pre-Feasibility Study, engaging internationally respected independent consultants to cover off key components under the management of a highly experienced in-house technical team. Baobab looks forward to keeping investors up to date as the PFS develops over what is promising to be a very exciting year for the Tete Project."

Admission and dealings

The Placing Shares will rank paripassu in all respects with the Company's existing issued ordinary shares and will be equivalent to 10.8% of the enlarged issued share capital. Application will be made for the admission of the Placing Shares to trading on AIM and it is expected that admission will occur and that dealings will commence at 8.00 a.m. on 2 April 2012.

For the purposes of the Financial Services Authority's Disclosure and Transparency Rules, the Company announces that following the issue of the Placing Shares, the Company will have 213,137,900 Ordinary Shares in issue.

The Company has no ordinary shares held in treasury. The total number of voting rights in the Company will therefore be 213,137,900. This figure may therefore be used by shareholders in the Company as the denominator for the calculations by which they will determine if they are required to notify their interest in, or a change in their interest in, the share capital of the Company under the FSA's Disclosure and Transparency Rules.

Baobab Resources PLC
Ben James: Managing Director
Tel: +61 8 9430 7151

Jeremy Dowler: Chairman
Tel: +44 1372 450529

Shore Capital
Jerry Keen / Bidhi Bhoma
Tel: +44 20 7468 7964

Grant Thornton Corporate Finance
Gerry Beaney / David Hignell
Tel: +44 20 7383 5100

Fortbridge Consulting
Matt Beale
Tel: +44 7966 389 196

Baobab Resources Plc (LON:BAO) Tenge Delivers 159Mt Iron Ore, Expanding Global Resource Inventory to 482 Mt

newsroom@abnnewswire.net — Tue, 6 Mar 2012 17:51:34 GMT

Baobab Resources Plc (LON:BAO) the iron ore, base and precious metals explorer with a portfolio of exploration projects in Mozambique, is pleased to present the results of the resource estimation at the Tenge prospect, one of five resource areas in the Tete iron / vanadium / titanium Project.

HIGHLIGHTS

- Tete global resource base has expanded to 482Mt (JORC), over 300Mt of which is defined at Tenge/Ruoni, firmly establishing the prospect area as a standalone asset.
- The Tenge 159Mt Inferred Resource reports a head grade of 38.4% Fe and an average concentrate grade of 60.4% Fe, 0.8% V2O5 and 12.5% TiO2 at a mass recovery of 47.6%.
- Coffey Mining has been commissioned to complete an Exploration Target assessment of the resource potential underlying the 'Flats' area of

Tenge/Ruoni.

The Tete Pre-Feasibility Study (PFS) is underway. Baobab has engaged internationally respected specialist consultants Coffey Mining (resource, mining and environmental), SNC-Lavalin (engineering and infrastructure), Dr. Clout (mineral processing) and Ferrum Consultants (market studies) under the management of an experienced in-house technical team headed by project engineer, Mr. Christian Kunze.

Commenting today, Ben James, Baobab's Managing Director, said: "The Tenge resource statement is the culmination of the 2011 drilling programme. Baobab started 2011 with a resource base of 48Mt and has increased it tenfold to 480Mt, far outstripping the Company's original 300Mt target.

"The project has made the transition from one of exploration to one of development and is strategically located in the emerging mining hub of the Tete province, Mozambique, one of Africa's fastest developing economies, with unique access to existing and expanding power and infrastructure as well as abundant coal reserves.

"The Scoping Study, announced in November last year, establishes the compelling economics of a vertically integrated mine-mouth smelting operation to produce a higher value, higher demand, pig iron product for distribution and sale in the growth regions of Asia, while leaving open the opportunity of downstream steel processing in-country in the event that any of the major steel companies, some already active in the Tete region, elect to explore this route. The Project's expanded resource inventory makes this a real and viable possibility that may be scaled up significantly.

"The Company, with the support of its strategic partner the IFC, has now embarked on a Pre-Feasibility Study, engaging internationally respected independent consultants to cover off key components under the management of a highly experienced in-house technical team. Baobab looks forward to keeping investors up to-date as the PFS develops over what is promising to be a very exciting year for the Tete Project."

TENGE RESOURCE

Internationally respected consultant, Coffey Mining Limited, has completed a resource estimate based on the completed drilling programme at Tenge. Their estimates of Inferred Mineral Resources, including the South Zone estimate (announced on 30 August 2011), Chitongue Grande and Ruoni North (both announced on 31 October 2011) and Ruoni South (announced on 7 December 2011), are summarised below. All estimates have been compiled in accordance with the Joint Ore Reserves Committee (JORC) Code guidelines. Notes on the Tenge estimation parameters are presented as Annexure 1. (See Link)

In many areas the resource blocks remain open along strike and at depth, requiring extensional drilling programmes in 2012. Some areas of intersected mineralisation remain unclassified due to insufficient drilling density and will also require further drill definition.

Due to consistent sampling and analytical protocols, including routine Davis Tube Recovery (DTR) determinations, across mineralised and non-mineralise waste material at Tenge, Coffey Mining has been able to estimate the expected average concentrate characteristics for the mineralised material to an inferred Resource level of confidence: 60.4% Fe, 0.8% V2O5, 12.5% TiO2, 0.8% SiO2, 3.3% Al2O3, 0.001% P and 0.1% S at a Mass Recovery of 47.6%.

The expected weighted average concentrate characteristics for the global 482.4Mt Inferred Resource are in the order of 60.3% Fe, 0.8% V2O5, 10.9% TiO2, 1.0% SiO2, 3.3% Al2O3, 0.001% P and 0.2% S at a Mass Recovery of 36.7%.

Where no lower cut-off grade has been applied, the resource blocks have been constrained by geologically defined mineralised zones and therefore reported accordingly; it is currently assumed that mining selectivity is limited within the mineralised zones. A three-dimensional block model was generated for the Tenge deposit to enable grade estimation. Coffey Mining has based its grade interpolation on Ordinary Kriging.

Whole rock and concentrate grades were interpolated based on 4m composite samples using domain control for both composite and block selections applying hard boundaries between the zones. A service variable approach to the estimation of block concentrate grades required to account for the variation in percent recovery weight. The concentrate grades (Fe, V2O5, TiO2, SiO2, Al2O3, P, LOI, CaO, K2O, MgO, Mn, and S) were then back calculated from these estimates. Ordinary Kriging was also used to obtain estimates of DTR and service variables for Ruoni South.

For the concentrate grades of all other resource blocks, a similar approach was adopted. However, insufficient DTR test work resulted in a lower confidence in the estimate, precluding their classification.

RUONI FLATS EXPLORATION TARGET

Tenge/Ruoni is the easternmost prospect area of the Massamba Group, Tete Project. Mineralisation in the area has been synformally folded with the fold hinge plunging gently to the west-northwest. The northern and southern limbs of the fold comprise the Ruoni North and Ruoni South resource blocks, while the outcropping fold hinge comprises the Tenge resource block to the east.

Coffey Mining has been commissioned to complete an Exploration Target assessment of the resource potential of the buried fold hinge underlying the 800m x 700m 'Ruoni Flats' area between Ruoni North and Ruoni South. The Company expects to be able to announce the results of the study during March 2012.

TETE PROJECT OVERVIEW

The project is located in the richly endowed Tete province of Mozambique. The province hosts some of the largest undeveloped coal reserves on the planet and, with estimates pointing towards the area producing up to 20% of the world's coking coal by 2015, is fast-tracking to become a mining and industrial hub of global significance.

Immediately south of Baobab's tenure, and sharing the Company's licence boundaries, are c.15Bt of coking and thermal coal resources being brought into production by two of the world's largest mining houses, Rio Tinto and Vale, along with premier steel producers, Tata Steel, Nippon Steel, Jindal Steel and Posco. Other operators in the area include AIM listed companies Beacon Hill Resources plc, Ncondezi Coal Company plc and Eurasian Natural Resources Corporation plc (ENRC).

Low tariff hydro-electric power is readily available from the 2,075 megawatt Cahora Bassa dam. Studies are underway to expand the dam's capacity by an additional 1,300 megawatts. A new 1,500 megawatt scheme at Mphanda N'kuwa, also on the Zambezi, is in advanced planning stages and due to commence production in 2015.

The Company believes that it will be able to negotiate tariff rates at a third, if not a quarter, of typical power generation costs in Australia or west Africa which will have a significant impact on future operating costs. The railway connecting Tete with the port of Beira is being refurbished, as is the port. The deep water port of Nacala and railway linking the port with the interior is also being refurbished under the auspices of a consortium including the Mozambique government, Vale and the World Bank. An order of magnitude study has been completed on a dedicated heavy haulage railway to a Greenfields port located within 500km of Tete.

The Tete Project straddles the central portion of the Tete Mafic Complex and contains two areas of titanomagnetite / ilmenite mineralisation; the Singore area to the south and the Massamba Group in the north. The Massamba Group is composed of a series of three prospects (Chitongue Grande, Chimbala and South Zone) forming an 8km long trend and the 3.5km long Tenge / Ruoni prospect to the east.

IFC (International Finance Corporation) hold a 15% participatory interest in the project with Baobab owning the remaining 85%. The Company announced on 6 February that IFC has supported the 2012 pre-feasibility study (PFS) through a pro-rata contribution of approximately US$1.9m.

Building on the successful exploration programmes of 2009 and 2010, Baobab accelerated activities in 2011 to achieve two key milestones; to define a minimum resource base of 300Mt on which a Scoping Study could be finalised. The Company completed an aggressive c.40,000m drilling campaign that resulted in the expansion of the global resource base to of 482Mt.

The Scoping Study, completed by independent consultants and applying conventional beneficiation and smelting technologies, assessed two production scenarios:
- Scenario 'A': base-case production of 3Mtpa titano-magnetite concentrate and 0.5Mtpa ilmenite concentrate products for export. Initial capital expenditure (capex) estimate of US$448m.
- Scenario 'B': capitalising on the Project's access to low tariff hydro-electric power and strategic proximity to thermal coal reserves to add further value on site through the mine-mouth smelting of 1Mtpa pig iron. Initial capex estimate of US$690m.

While the base-case model for scenario 'A' demonstrated viable Project fundamentals, the optimisations and financial modelling of Scenario 'B' at a 10% discount rate provided compelling economics with pre-tax net present value (NPV10) and internal rate of return (IRR) figures of US$1.4b and 34% respectively. The estimated average annual net cash flow after capex over the modelled 25 year mine life is US$275m.

The Scoping Study results show very clearly the 'value add' from the plans for on-site smelting of pig iron and underlines the strategic advantages of the Project's unique geography with respect to infrastructure and complementary resources. Producing a higher value, high demand product will not only broaden the market base, but also mitigate the requirement to compete for rail and port access.

The vanadium potential remains to be modelled and could add further to the value of this project. Reduced input costs through long-term domestic coal contracts and on-site power co-generation also need to be assessed, while the expanding resource base at Tenge/Ruoni, underpinning a meaningful +30 year mine life, allows scope for ramping up production.

For a detailed summary of the Scoping Study, please refer to RNS dated 29 November 2011.

PRE-FEASIBILITY STUDY

A detailed Pre-Feasibility Study (PFS) work programme is underway. The Company has signed contracts with leading mining, engineering and environmental consultancies to complete the various aspects of the study.

The PFS will be coordinated out of Australia by Baobab's Project Manager, Christian Kunze. Mr. Kunze has a Master's Degree in Mechanical Engineering / Business Administration and 20 years international management experience in iron ore project development, plant engineering and steel manufacture. He has worked for industry specialists including Siemens VAI and ProMet Engineers, and has a well-established network of professional associates in Africa, USA, Europe, Asia and Australia. Mr. Kunze's specific strength lies in a combined technical and commercial understanding of projects.

The mineral processing component of the study will be supervised by consultant, Dr. John Clout. Dr. Clout is a leader in iron ore petrography, metallurgy, beneficiation, downstream processing and marketing. He was the Head of Resource Strategy at FMG in which role he was instrumental in the success of the company. He is an ex- CSIRO manager and has advised on mineral processing to companies including Rio Tinto, BlueScope, OneSteel, Robe River, Hancock and WISCO. John holds the position of Adjunct Professor in Mineral Processing at the School of Mechanical and Chemical Engineering, University of Western Australia.

Coffey Mining has been selected to complete the resource, mining and environmental aspects of the PFS. Coffey has more than 50 years' experience as specialist mining consultants operating in over 60 countries across the globe and has contributed to iron ore feasibility studies for clients including FMG, Atlas Iron, Robe River, BHP Billiton, Gibson Iron, OneSteel, Hancock Prospecting, Grange Resources, Brockman Resources and Midwest Cooperation.

SNC-Lavalin has been selected as the engineering and infrastructure consultant. SNC-Lavalin is one of the largest engineering and construction groups in the world, consistently ranked in the top ten international design firms by Engineering News Record. As a provider of engineering, procurement, construction and project management services SNC-Lavalin has the capacity to take the Tete project from feasibility level through to project execution.

Recently executed studies relating to the beneficiation of magnetite and heavy mineral sands projects include FMG's North Star Magnetite Project, Zammin Ferrous' Valentines Magnetite Project and Grand Cote Mineral Sands Project.

Mr. Chris Barrington of Ferrum Consultants has been commissioned to complete an in-depth pig iron marketing study. Mr. Barrington has almost 40 years experience in the international natural resources field, including 17 years in the global iron ore industry. He purchased iron ore for British Steel Corp and marketed Brazilian and Australian iron ore for Utah International and Swedish iron ore for LKAB; he also had responsibility for LKAB's product strategy. He was Managing Director of Fergusson Wild & Co. Ltd. subsequent to which he established his own minerals distribution business (sold in 2007 to the Prince Minerals group). Mr. Barrington has held the role of secretariat of the International Pig Iron Association and is chief advisor to the International Iron Metallics Association.

The information in this release that relates to Exploration Results is based on information compiled by Managing Director Ben James (BSc). Mr James is a Member of the Australasian Institute of Mining and Metallurgy, is a Competent Person as defined in the Australasian Code for Reporting of exploration results and Mineral Resources and Ore Reserves, and consents to the inclusion in the report of the matters based on the information in the form and context in which it appears.

TENGE RESOURCE

Internationally respected consultant, Coffey Mining Limited, has completed a resource estimate based on the completed drilling programme at Tenge. Their estimates of Inferred Mineral Resources, including the South Zone estimate (announced on 30 August 2011), Chitongue Grande and Ruoni North (both announced on 31 October 2011) and Ruoni South (announced on 7 December 2011), are summarised below. All estimates have been compiled in accordance with the Joint Ore Reserves Committee (JORC) Code guidelines. Notes on the Tenge estimation parameters are presented as Annexure 1. (See Link)

In many areas the resource blocks remain open along strike and at depth, requiring extensional drilling programmes in 2012. Some areas of intersected mineralisation remain unclassified due to insufficient drilling density and will also require further drill definition.

Due to consistent sampling and analytical protocols, including routine Davis Tube Recovery (DTR) determinations, across mineralised and non-mineralise waste material at Tenge, Coffey Mining has been able to estimate the expected average concentrate characteristics for the mineralised material to an inferred Resource level of confidence: 60.4% Fe, 0.8% V2O5, 12.5% TiO2, 0.8% SiO2, 3.3% Al2O3, 0.001% P and 0.1% S at a Mass Recovery of 47.6%.

The expected weighted average concentrate characteristics for the global 482.4Mt Inferred Resource are in the order of 60.3% Fe, 0.8% V2O5, 10.9% TiO2, 1.0% SiO2, 3.3% Al2O3, 0.001% P and 0.2% S at a Mass Recovery of 36.7%.

Where no lower cut-off grade has been applied, the resource blocks have been constrained by geologically defined mineralised zones and therefore reported accordingly; it is currently assumed that mining selectivity is limited within the mineralised zones. A three-dimensional block model was generated for the Tenge deposit to enable grade estimation. Coffey Mining has based its grade interpolation on Ordinary Kriging.

Whole rock and concentrate grades were interpolated based on 4m composite samples using domain control for both composite and block selections applying hard boundaries between the zones. A service variable approach to the estimation of block concentrate grades required to account for the variation in percent recovery weight. The concentrate grades (Fe, V2O5, TiO2, SiO2, Al2O3, P, LOI, CaO, K2O, MgO, Mn, and S) were then back calculated from these estimates. Ordinary Kriging was also used to obtain estimates of DTR and service variables for Ruoni South.

For the concentrate grades of all other resource blocks, a similar approach was adopted. However, insufficient DTR test work resulted in a lower confidence in the estimate, precluding their classification.

RUONI FLATS EXPLORATION TARGET

Tenge/Ruoni is the easternmost prospect area of the Massamba Group, Tete Project. Mineralisation in the area has been synformally folded with the fold hinge plunging gently to the west-northwest. The northern and southern limbs of the fold comprise the Ruoni North and Ruoni South resource blocks, while the outcropping fold hinge comprises the Tenge resource block to the east.

Coffey Mining has been commissioned to complete an Exploration Target assessment of the resource potential of the buried fold hinge underlying the 800m x 700m 'Ruoni Flats' area between Ruoni North and Ruoni South. The Company expects to be able to announce the results of the study during March 2012.

TETE PROJECT OVERVIEW

The project is located in the richly endowed Tete province of Mozambique. The province hosts some of the largest undeveloped coal reserves on the planet and, with estimates pointing towards the area producing up to 20% of the world's coking coal by 2015, is fast-tracking to become a mining and industrial hub of global significance.

Immediately south of Baobab's tenure, and sharing the Company's licence boundaries, are c.15Bt of coking and thermal coal resources being brought into production by two of the world's largest mining houses, Rio Tinto and Vale, along with premier steel producers, Tata Steel, Nippon Steel, Jindal Steel and Posco. Other operators in the area include AIM listed companies Beacon Hill Resources plc, Ncondezi Coal Company plc and Eurasian Natural Resources Corporation plc (ENRC).

Low tariff hydro-electric power is readily available from the 2,075 megawatt Cahora Bassa dam. Studies are underway to expand the dam's capacity by an additional 1,300 megawatts. A new 1,500 megawatt scheme at Mphanda N'kuwa, also on the Zambezi, is in advanced planning stages and due to commence production in 2015.

The Company believes that it will be able to negotiate tariff rates at a third, if not a quarter, of typical power generation costs in Australia or west Africa which will have a significant impact on future operating costs. The railway connecting Tete with the port of Beira is being refurbished, as is the port. The deep water port of Nacala and railway linking the port with the interior is also being refurbished under the auspices of a consortium including the Mozambique government, Vale and the World Bank. An order of magnitude study has been completed on a dedicated heavy haulage railway to a Greenfields port located within 500km of Tete.

The Tete Project straddles the central portion of the Tete Mafic Complex and contains two areas of titanomagnetite / ilmenite mineralisation; the Singore area to the south and the Massamba Group in the north. The Massamba Group is composed of a series of three prospects (Chitongue Grande, Chimbala and South Zone) forming an 8km long trend and the 3.5km long Tenge / Ruoni prospect to the east.

IFC (International Finance Corporation) hold a 15% participatory interest in the project with Baobab owning the remaining 85%. The Company announced on 6 February that IFC has supported the 2012 pre-feasibility study (PFS) through a pro-rata contribution of approximately US$1.9m.

Building on the successful exploration programmes of 2009 and 2010, Baobab accelerated activities in 2011 to achieve two key milestones; to define a minimum resource base of 300Mt on which a Scoping Study could be finalised. The Company completed an aggressive c.40,000m drilling campaign that resulted in the expansion of the global resource base to of 482Mt.

The Scoping Study, completed by independent consultants and applying conventional beneficiation and smelting technologies, assessed two production scenarios:
- Scenario 'A': base-case production of 3Mtpa titano-magnetite concentrate and 0.5Mtpa ilmenite concentrate products for export. Initial capital expenditure (capex) estimate of US$448m.
- Scenario 'B': capitalising on the Project's access to low tariff hydro-electric power and strategic proximity to thermal coal reserves to add further value on site through the mine-mouth smelting of 1Mtpa pig iron. Initial capex estimate of US$690m.

While the base-case model for scenario 'A' demonstrated viable Project fundamentals, the optimisations and financial modelling of Scenario 'B' at a 10% discount rate provided compelling economics with pre-tax net present value (NPV10) and internal rate of return (IRR) figures of US$1.4b and 34% respectively. The estimated average annual net cash flow after capex over the modelled 25 year mine life is US$275m.

The Scoping Study results show very clearly the 'value add' from the plans for on-site smelting of pig iron and underlines the strategic advantages of the Project's unique geography with respect to infrastructure and complementary resources. Producing a higher value, high demand product will not only broaden the market base, but also mitigate the requirement to compete for rail and port access.

The vanadium potential remains to be modelled and could add further to the value of this project. Reduced input costs through long-term domestic coal contracts and on-site power co-generation also need to be assessed, while the expanding resource base at Tenge/Ruoni, underpinning a meaningful +30 year mine life, allows scope for ramping up production.

For a detailed summary of the Scoping Study, please refer to RNS dated 29 November 2011.

PRE-FEASIBILITY STUDY

A detailed Pre-Feasibility Study (PFS) work programme is underway. The Company has signed contracts with leading mining, engineering and environmental consultancies to complete the various aspects of the study.

The PFS will be coordinated out of Australia by Baobab's Project Manager, Christian Kunze. Mr. Kunze has a Master's Degree in Mechanical Engineering / Business Administration and 20 years international management experience in iron ore project development, plant engineering and steel manufacture. He has worked for industry specialists including Siemens VAI and ProMet Engineers, and has a well-established network of professional associates in Africa, USA, Europe, Asia and Australia. Mr. Kunze's specific strength lies in a combined technical and commercial understanding of projects.

The mineral processing component of the study will be supervised by consultant, Dr. John Clout. Dr. Clout is a leader in iron ore petrography, metallurgy, beneficiation, downstream processing and marketing. He was the Head of Resource Strategy at FMG in which role he was instrumental in the success of the company. He is an ex- CSIRO manager and has advised on mineral processing to companies including Rio Tinto, BlueScope, OneSteel, Robe River, Hancock and WISCO. John holds the position of Adjunct Professor in Mineral Processing at the School of Mechanical and Chemical Engineering, University of Western Australia.

Coffey Mining has been selected to complete the resource, mining and environmental aspects of the PFS. Coffey has more than 50 years' experience as specialist mining consultants operating in over 60 countries across the globe and has contributed to iron ore feasibility studies for clients including FMG, Atlas Iron, Robe River, BHP Billiton, Gibson Iron, OneSteel, Hancock Prospecting, Grange Resources, Brockman Resources and Midwest Cooperation.

SNC-Lavalin has been selected as the engineering and infrastructure consultant. SNC-Lavalin is one of the largest engineering and construction groups in the world, consistently ranked in the top ten international design firms by Engineering News Record. As a provider of engineering, procurement, construction and project management services SNC-Lavalin has the capacity to take the Tete project from feasibility level through to project execution.

Recently executed studies relating to the beneficiation of magnetite and heavy mineral sands projects include FMG's North Star Magnetite Project, Zammin Ferrous' Valentines Magnetite Project and Grand Cote Mineral Sands Project.

Mr. Chris Barrington of Ferrum Consultants has been commissioned to complete an in-depth pig iron marketing study. Mr. Barrington has almost 40 years experience in the international natural resources field, including 17 years in the global iron ore industry. He purchased iron ore for British Steel Corp and marketed Brazilian and Australian iron ore for Utah International and Swedish iron ore for LKAB; he also had responsibility for LKAB's product strategy. He was Managing Director of Fergusson Wild & Co. Ltd. subsequent to which he established his own minerals distribution business (sold in 2007 to the Prince Minerals group). Mr. Barrington has held the role of secretariat of the International Pig Iron Association and is chief advisor to the International Iron Metallics Association.

The information in this release that relates to Exploration Results is based on information compiled by Managing Director Ben James (BSc). Mr James is a Member of the Australasian Institute of Mining and Metallurgy, is a Competent Person as defined in the Australasian Code for Reporting of exploration results and Mineral Resources and Ore Reserves, and consents to the inclusion in the report of the matters based on the information in the form and context in which it appears.

For the full release including tables, please visit:
http://media.abnnewswire.net/media/en/docs/71902-BAO_AIM_20120205.pdf

CONTACT DETAILS
Baobab Resources PLC
Ben James: 
Managing Director 
Tel: +61 8 9430 7151

Jeremy Dowler: 
Chairman 
Tel: +44 1372 450529

Grant Thornton Corporate Finance
Gerry Beaney / David Hignell 
Tel: +44 20 7383 5100

Shore Capital
Jerry Keen / Toby Gibbs 
Tel: +44 20 7468 7964

Baobab Resources Plc (LON:BAO) Operational Update On Tenge/Tete Projects and Muande Joint Venture

newsroom@abnnewswire.net — Tue, 28 Feb 2012 18:00:30 GMT

Baobab Resources Plc (LON:BAO) is an iron ore, base and precious metals explorer with a portfolio of exploration projects in Mozambique. The Company is pleased to present an update of activities at the Tete iron / vanadium / titanium Project, where resource inventories currently total 324Mt (JORC Inferred), and the Muande Joint Venture Project.

Scoping level viability analysis of the Tete Project assessed a vertically integrated mining, beneficiation and pig iron smelting operation and reported before tax net present value at a 10% discount (NPV10) and internal rate of return (IRR) figures of US$1.4 billion and 34% respectively (as announced in the RNS dated 29 November 2011).

IFC (International Finance Corporation) hold a 15% participatory interest in the Tete Project with Baobab owning the remaining 85%. The Company announced on 6 February that IFC has supported the 2012 pre-feasibility study (PFS) through a pro-rata contribution of approximately US$1.9m.

HIGHLIGHTS

- All analytical results have been returned from the Tenge resource drilling programme (Tete Project) and have been forwarded to Coffey Mining to complete a resource estimate in accordance with the JORC code.

- The average head grade of all Tenge significant drill intercepts is 36% Fe with concentrate grades reporting a weighted average of 59% Fe, 0.8% V2O5 and 12% TiO2 at a mass recovery of 45%.

- The Tenge drill results show an excellent correlation with those derived from drilling at the 93Mt Ruoni North resource block which, as demonstrated in the 2011 Scoping Study, is sufficient to support a stand-alone 1Mtpa pig iron operation over a 25 year mine-life.

- Monte Muande joint venture magnetite/phosphate drill results are currently being processed and are expected to become available during March 2012.

- Rio Mufa scout drilling confirmed the absence of economically significant coal seams.

Commenting today, Ben James, Baobab's Managing Director, said: "An improvement in laboratory turnaround times has enabled the Company to get the Tenge resource data pack off to Coffey for estimation slightly ahead of schedule. The Tenge resource statement will mark the culmination of the highly productive 2011 field season and augment an already robust resource inventory underpinning the on-going PFS.

"Baobab also looks forward to presenting the long awaited Monte Muande magnetite/phosphate drill results during March. As is often the case with exploration initiatives, the Rio Mufa coal scout drilling programme, though technically sound, did not delineate mineralisation of economic merit."

TENGE RESOURCE DRILLING

Tenge/Ruoni is the easternmost prospect area of the Massamba Group. Drilling at Tenge/Ruoni has intersected a heavily mineralised package varying in thickness from 60m to 150m. Mineralisation has been synformally folded with the fold hinge plunging gently to the west-northwest. Exploration campaigns in the prospect area have been divided into three resource blocks:

- Ruoni North: representing 1km of strike along the northern limb of the fold. Thirty seven reverse circulation (RC) and diamond holes have been completed to date across seven traverses for an aggregate total of c.5,750m. Drilling has intersected a substantial package of mineralisation from surface dipping at 25 Degrees to 50 Degrees to the southwest.

On 31 October 2011, the Company announced the estimation of a 93Mt Inferred Resource at Ruoni North. Further drilling has subsequently been completed and the Company is confident that portions of the Inferred Resource will be elevated to Indicated once the analytical results have been returned.

- Ruoni South: representing 1.2km of strike along the southern limb of the fold. Twenty seven RC and diamond holes have been completed for an aggregate total of 5,200m. Mineralisation in the Ruoni South area is generally steeper dipping (c.65 Degrees to the north).

On 7 December 2011, the Company announced the estimation of a 56Mt Inferred Resource at Ruoni South. Of particular interest is the 0.9% V2O5 concentrate grade which is 12% higher than results reported from Ruoni North and some 28% higher than indicated concentrate grades from South Zone and Chitongue Grande resource areas.

- Tenge: representing the hinge zone of the fold and covering a strike length of approximately 1.3km. A 4,800m programme of diamond and RC drilling (26 drill holes) was completed in December 2011.

Further to announcements dated 30 January and 16 February 2012, analytical Results for all remaining RC and diamond holes from the Tenge resource drilling programme have been returned. A complete assay data set has been forwarded to internationally respected consultants, Coffey Mining Ltd ('Coffey'), to calculate a resource estimate. The resource statement, which is to be completed in accordance with the Joint Ore Reserves Committee (JORC) guidelines, is expected to be available for release during the first half of March 2012.

Drill hole collar details and significant intercepts are tabulated below. The average head grade of all Tenge significant intercepts reported to date (including those announced previously) is 36% Fe with the DTR concentrate grades reporting a weighted average of 59% Fe, 0.8% V2O5 and 12% TiO2 at a mass recovery of 45%. Due to adverse water conditions down-hole, some RC drill holes were terminated in mineralisation and will be deepened with diamond drill tails during the 2012 campaign.

TETE PROJECT OVERVIEW

The project is located in the richly endowed Tete province of Mozambique. The province hosts some of the largest undeveloped coal reserves on the planet and, with estimates pointing towards the area producing up to 20% of the world's coking coal by 2015, is fast-tracking to become a mining and industrial hub of global significance.

Immediately south of Baobab's tenure, and sharing the Company's licence boundaries, are c.15Bt of coking and thermal coal resources being brought into production by two of the world's largest mining houses, Rio Tinto and Vale, along with premier steel producers, Tata Steel, Nippon Steel, Jindal Steel and Posco. Other operators in the area include AIM listed companies Beacon Hill Resources plc, Ncondezi Coal Company plc and Eurasian Natural Resources Corporation plc (ENRC).

Low tariff hydro-electric power is readily available from the 2,075 megawatt Cahora Bassa dam. Studies are underway to expand the dam's capacity by an additional 1,300 megawatts. A new 1,500 megawatt scheme at Mphanda N'kuwa, also on the Zambezi, is in advanced planning stages and due to commence production in 2015. The Company believes that it will be able to negotiate tariff rates at a third, if not a quarter, of typical power generation costs in Australia or west Africa which will have a significant impact on future operating costs.

The railway connecting Tete with the port of Beira is being refurbished, as is the port. The deep water port of Nacala and railway linking the port with the interior is also being refurbished under the auspices of a consortium including the Mozambique government, Vale and the World Bank. An order of magnitude study has been completed on a dedicated heavy haulage railway to a Greenfields port located within 500km of Tete.

The Project straddles the central portion of the Tete Mafic Complex and contains two areas of titano-magnetite / ilmenite mineralisation; the Singore area to the south and the Massamba Group in the north. The Massamba Group is composed of a series of three prospects (Chitongue Grande, Chimbala and South Zone) forming an 8km long trend and the 3.5km long Tenge / Ruoni prospect to the east.

Building on the successful exploration programmes of 2009 and 2010, Baobab accelerated activities in 2011 to achieve two key milestones; to define a minimum resource base of 300Mt on which a Scoping Study could be finalised. The Company completed an aggressive c.40,000m drilling campaign that resulted in the expansion of the global resource base to an interim 324Mt (please refer to RNS dated 7 December 2011 for details). An additional resource statement at Tenge, due for release during March 2012, is set to enlarge the inventory again, pushing it towards 500Mt.

The Scoping Study, completed by independent consultants and applying conventional beneficiation and smelting technologies, assessed two production scenarios:

- Scenario 'A': base-case production of 3Mtpa titano-magnetite concentrate and 0.5Mtpa ilmenite concentrate products for export. Initial capital expenditure (capex) estimate of US$448m.

- Scenario 'B': capitalising on the Project's access to low tariff hydro-electric power and strategic proximity to thermal coal reserves to add further value on site through the mine-mouth smelting of 1Mtpa pig iron. Initial capex estimate of US$690m.

While the base-case model for scenario 'A' demonstrated viable Project fundamentals, the optimisations and financial modelling of Scenario 'B' at a 10% discount rate provided compelling economics with pre-tax net present value (NPV10) and internal rate of return (IRR) figures of US$1.4b and 34% respectively. The estimated average annual net cash flow after capex over the modelled 25 year mine life is US$275m.

The Scoping Study results show very clearly the 'value add' from the plans for on-site smelting of pig iron and underlines the strategic advantages of the Project's unique geography with respect to infrastructure and complementary resources. Producing a higher value, high demand product will not only broaden the market base, but also mitigate the requirement to compete for rail and port access.

The vanadium potential remains to be modelled and could add further to the value of this project. Reduced input costs through long-term domestic coal contracts and on-site power co-generation also need to be assessed, while the expanding resource base at Tenge/Ruoni, underpinning a meaningful +30 year mine life, allows scope for ramping up production.

For a detailed summary of the Scoping Study, please refer to RNS dated 29 November 2011.

A detailed Pre-Feasibility Study (PFS) work programme is underway. The Company has signed contracts with leading mining, engineering and environmental consultancies, including Coffey Mining, SNC-Lavalin and respected industry specialist, Dr. John Clout, to complete the various aspects of the study.

MUANDE JOINT VENTURE

The Company announced on 15 November 2010 the signing of a Joint Venture (the 'Joint Venture') with North River Resources plc ('North River') in relation to North River's Muande project (the 'Muande Project') in the Tete province of Mozambique. The Muande Project comprises two exploration licences covering an area of 338km2 located approximately 25km northwest of the provincial capital of Tete and contiguous with Baobab's Tete project.

The principal areas of interest are the Monte Muande magnetite/phosphate deposit and Rio Mufa coal prospect.

The Monte Muande magnetite/phosphate deposit is located 25km to the northwest of the provincial capital of Tete. The international highway to Zambia passes within 3km of the project. The deposit is hosted in a carbonatite and was explored during the 1980s by the Geological Institute of Belgrade (GIB). GIB completed two phases of vertical diamond drilling between 1983 and 1985 totalling 5,570m, 2,960m of which falls within the Joint Venture area. The institute also completed more than 10km of trenching and bench-scale metallurgical test work.

Using the GIB data sets in conjunction with more recent soil geochemistry and aeromagnetic surveys completed by Omegacorp, consultants Coffey Mining calculated an Exploration Target of 200Mt to 250Mt to an average depth of c.40m below surface. Coffey also carried out a high level review of the GIB metallurgical data which indicated that a magnetite concentrate containing 67% Fe could be generated via a process of coarse grinding and magnetic separation, followed by regrinding and a flotation circuit to recover a phosphate rock concentrate containing 36% P2O5. Total magnetite and apatite recoveries of 92% and 70% respectively were recorded. Please refer to RNS announcement dated 19 September 2011 for additional details.

During the latter half of 2011, Baobab completed a c.2,000m diamond drilling at Monte Muande. The programme comprised 10 angled drill holes sited along a staggered traverse transecting the central portion of the deposit. Drilling has intersected broad zones of shallowly dipping magnetite and apatite mineralisation with samples currently at the ALS Chemex laboratory in Western Australia undergoing Davis Tube Recovery (DTR) and X-ray Fluorescence Spectrometry (XRF) analysis. Results are expected to become available during March 2012.

The Rio Mufa prospect includes 12 square kilometres of Lower Karoo lithologies underlying the southwestern corner of licence 1119L. Baobab commissioned specialist coal consultants, Gondwana Limitada ('Gondwana'), to complete a detailed field review of the Rio Mufa area during July 2011. Investigations confirmed that the prospect is underlain by the prospective basal units of the Lower Karoo sequence and a 13 hole scout drilling programme was designed. Drilling commenced on 15 September 2011 using a polycrystalline diamond (PCD) drill bit. PCD drilling is a rapid and cost competitive tool that is commonly employed during preliminary coal exploration campaigns. The drilling intersected minor seams of carbonaceous material of limited lateral continuity that are not considered to be of economic significance. No further exploration is warranted at this time.

To view the complete Baobab Resources announcement including drill hole collar details and significant intercepts table, please refer to the following link below:
http://abnnewswire.net/lnk/491H26H4

Ben James
Managing Director
Baobab Resources Plc
Tel: +61-8-9430-7151

Jeremy Dowler
Chairman
Baobab Resources Plc
Tel: +44-1372-450529
http://www.baobabresources.com

Baobab Resources Plc (LON:BAO) Updates on Tenge/Ruoni Drilling

newsroom@abnnewswire.net — Thu, 16 Feb 2012 18:00:00 GMT

Baobab Resources Plc (LON:BAO) is an iron ore, base and precious metals explorer with a portfolio of exploration projects in Mozambique. The Company is pleased to present an update of activities at the Massamba Group iron / vanadium / titanium project where resource inventories currently total 324Mt (JORC Inferred).

Scoping level viability analysis of the project assessed a vertically integrated mining, beneficiation and pig iron smelting operation and reported before tax net present value at a 10% discount (NPV10) and internal rate of return (IRR) figures of US$1.4 billion and 34% respectively (as announced in the RNS dated 29 November 2011).

IFC (International Finance Corporation) hold a 15% participatory interest in the project with Baobab owning the remaining 85%. The Company announced on 6 February that IFC has supported the 2012 pre-feasibility study (PFS) through a pro-rata contribution of approximately US$1.9m.

HIGHLIGHTS

- The completed Tenge resource drilling programme has defined broad packages of mineralisation. Analytical results from eight reverse circulation (RC) drill holes have been returned with a further 15 drill holes currently undergoing analysis.

- Significant drill intercepts, up to 83m in length, report an average head grade of 36% Fe with DTR concentrate grades reporting a weighted average of 59% Fe, 0.8% V2O5 and 12% TiO2 at a mass recovery of 43%.

- Coffey Mining is on schedule to complete the Tenge resource estimate by March 2012 which has the potential to add substantially to the current 324Mt global inventory.

Commenting today, Ben James, Baobab's Managing Director, said: "The RC results to date correlate particularly well with the Ruoni North resource block and are entirely in line with the Company's expectations. Baobab looks forward to presenting investors with the next round of drill results shortly, prior to the finalised Tenge resource during March."

TENGE RESOURCE DRILLING

Tenge/Ruoni is the easternmost prospect area of the Massamba Group. Drilling at Tenge/Ruoni has intersected a heavily mineralised package varying in thickness from 60m to 150m. Mineralisation has been synformally folded with the fold hinge plunging gently to the west-northwest. Exploration campaigns in the prospect area have been divided into three resource blocks:

- Ruoni North: representing 1km of strike along the northern limb of the fold. Thirty seven reverse circulation (RC) and diamond holes have been completed to date across seven traverses for an aggregate total of c.5,750m. Drilling has intersected a substantial package of mineralisation from surface dipping at 25 degree to 50 degree to the southwest.

On 31 October 2011, the Company announced the estimation of a 93Mt Inferred Resource at Ruoni North. Further drilling has subsequently been completed and the Company is confident that portions of the Inferred Resource will be elevated to Indicated once the analytical results have been returned.

- Ruoni South: representing 1.2km of strike along the southern limb of the fold. Twenty seven RC and diamond holes have been completed for an aggregate total of 5,200m. Mineralisation in the Ruoni South area is generally steeper dipping (c.65 degree to the north).

On 7 December, the Company announced the estimation of a 56Mt Inferred Resource at Ruoni South. Of particular interest is the 0.9% V2O5 concentrate grade which is 12% higher than results reported from Ruoni North and some 28% higher than indicated concentrate grades from South Zone and Chitongue Grande resource areas.

- Tenge: representing the hinge zone of the fold and covering a strike length of approximately 1.3km. A 4,800m programme of diamond and RC drilling (26 drill holes) has been completed.

Consultant, Coffey Mining Pty Ltd ('Coffey'), is currently developing a geological model for the Tenge block and expects to finalise a resource estimate during March 2012. All resource statements are completed in accordance with the Joint Ore Reserves Committee (JORC) guidelines.

Analytical results for eight RC holes from the Tenge resource drilling programme have been returned. Samples from all remaining Tenge diamond and RC drill holes are currently undergoing analysis at the ALS Chemex laboratory in Perth, Western Australia.

Drill hole collar details and significant intercepts are tabulated below (see link at the bottom of the release). The average head grade of all Tenge significant intercepts reported to date (including those announced on 30 January 2012) is 36% Fe with the DTR concentrate grades reporting a weighted average of 59% Fe, 0.8% V2O5 and 12% TiO2 at a mass recovery of 43%. Due to adverse water conditions down-hole, some RC drill holes were terminated in mineralisation and will be deepened with diamond drill tails during the 2012 campaign.

TETE PROJECT OVERVIEW

The project is located in the richly endowed Tete province of Mozambique. The province hosts some of the largest undeveloped coal reserves on the planet and, with estimates pointing towards the area producing up to 20% of the world's coking coal by 2015, is fast-tracking to become a mining and industrial hub of global significance.

Immediately south of Baobab's tenure, and sharing the Company's licence boundaries, are c.15Bt of coking and thermal coal resources being brought into production by two of the world's largest mining houses, Rio Tinto and Vale, along with premier steel producers, Tata Steel, Nippon Steel, Jindal Steel and Posco. Other operators in the area include AIM listed companies Beacon Hill Resources plc, Ncondezi Coal Company plc and Eurasian Natural Resources Corporation plc (ENRC).

Low tariff hydro-electric power is readily available from the 2,075 megawatt Cahora Bassa dam. Studies are underway to expand the dam's capacity by an additional 1,300 megawatts. A new 1,500 megawatt scheme at Mphanda N'kuwa, also on the Zambezi, is in advanced planning stages and due to commence production in 2015. The Company believes that it will be able to negotiate tariff rates at a third, if not a quarter, of typical power generation costs in Australia or west Africa which will have a significant impact on future operating costs.

The railway connecting Tete with the port of Beira is being refurbished, as is the port. The deep water port of Nacala and railway linking the port with the interior is also being refurbished under the auspices of a consortium including the Mozambique government, Vale and the World Bank. An order of magnitude study has been completed on a dedicated heavy haulage railway to a Greenfields port located within 500km of Tete.

The Project straddles the central portion of the Tete Mafic Complex and contains two areas of titano-magnetite / ilmenite mineralisation; the Singore area to the south and the Massamba Group in the north. The Massamba Group is composed of a series of three prospects (Chitongue Grande, Chimbala and South Zone) forming an 8km long trend and the 3.5km long Tenge / Ruoni prospect to the east.

Building on the successful exploration programmes of 2009 and 2010, Baobab accelerated activities in 2011 to achieve two key milestones; to define a minimum resource base of 300Mt on which a Scoping Study could be finalised. The Company completed an aggressive c.40,000m drilling campaign that resulted in the expansion of the global resource base to an interim 324Mt (please refer to RNS dated 7 December 2011 for details). An additional resource statement at Tenge, due for release during March 2012, is set to enlarge the inventory again, pushing it towards 500Mt.

The Scoping Study, completed by independent consultants and applying conventional beneficiation and smelting technologies, assessed two production scenarios:

- Scenario 'A': base-case production of 3Mtpa titano-magnetite concentrate and 0.5Mtpa ilmenite concentrate products for export. Initial capital expenditure (capex) estimate of US$448m.

- Scenario 'B': capitalising on the Project's access to low tariff hydro-electric power and strategic proximity to thermal coal reserves to add further value on site through the mine-mouth smelting of 1Mtpa pig iron. Initial capex estimate of US$690m.

While the base-case model for scenario 'A' demonstrated viable Project fundamentals, the optimisations and financial modelling of Scenario 'B' at a 10% discount rate provided compelling economics with pre-tax net present value (NPV10) and internal rate of return (IRR) figures of US$1.4b and 34% respectively. The estimated average annual net cash flow after capex over the modelled 25 year mine life is US$275m.

The Scoping Study results show very clearly the 'value add' from the plans for on-site smelting of pig iron and underlines the strategic advantages of the Project's unique geography with respect to infrastructure and complementary resources. Producing a higher value, high demand product will not only broaden the market base, but also mitigate the requirement to compete for rail and port access.

The vanadium potential remains to be modelled and could add further to the value of this project. Reduced input costs through long-term domestic coal contracts and on-site power co-generation also need to be assessed, while the expanding resource base at Tenge/Ruoni, underpinning a meaningful +30 year mine life, allows scope for ramping up production.

For a detailed summary of the Scoping Study, please refer to RNS dated 29 November 2011.

PRE-FEASIBILITY STUDY

A detailed Pre-Feasibility Study (PFS) work programme has been drafted and scheduled. The Company has signed contracts with leading mining, engineering and environmental consultancies to complete the various aspects of the study.

The PFS will be coordinated out of Australia by Baobab's Project Manager, Christian Kunze. Mr. Kunze has a Master's Degree in Mechanical Engineering / Business Administration and 20 years international management experience in iron ore project development, plant engineering and steel manufacture. He has worked for industry specialists including Siemens VAI and ProMet Engineers, and has a well-established network of professional associates in Africa, USA, Europe, Asia and Australia. Mr. Kunze's specific strength lies in a combined technical and commercial understanding of projects.

The mineral processing component of the study will be supervised by consultant, Dr. John Clout. Dr. Clout is a leader in iron ore petrography, metallurgy, beneficiation, downstream processing and marketing. He was the Head of Resource Strategy at FMG in which role he was instrumental in the success of the company. He is an ex-CSIRO manager and has advised on mineral processing to companies including Rio Tinto, BlueScope, OneSteel, Robe River, Hancock and WISCO. John holds the position of Adjunct Professor in Mineral Processing at the School of Mechanical and Chemical Engineering, University of Western Australia.

Coffey Mining has been selected to complete the resource, mining and environmental aspects of the PFS. Coffey has more than 50 years' experience as specialist mining consultants operating in over 60 countries across the globe and has contributed to iron ore feasibility studies for clients including FMG, Atlas Iron, Robe River, BHP Billiton, Gibson Iron, OneSteel, Hancock Prospecting, Grange Resources, Brockman Resources and Midwest Cooperation.

SNC-Lavalin has been selected as the engineering and infrastructure consultant. SNC-Lavalin is one of the largest engineering and construction groups in the world, consistently ranked in the top ten international design firms by Engineering News Record. As a provider of engineering, procurement, construction and project management services SNC-Lavalin has the capacity to take the Tete project from feasibility level through to project execution. Recently executed studies relating to the beneficiation of magnetite and heavy mineral sands projects include FMG's North Star Magnetite Project, Zammin Ferrous' Valentines Magnetite Project and Grand Cote Mineral Sands Project.

For the complete Baobab Resources announcement including tables, please view:
http://media.abnnewswire.net/media/en/docs/71677-Baobab.pdf

Ben James
Managing Director
Baobab Resources Plc
Tel: +61-8-9430-7151

Jeremy Dowler
Chairman
Baobab Resources Plc
Tel: +44-1372-450529

Baobab Resources plc (LON:BAO) IFC Continuing Tete Project Participation

newsroom@abnnewswire.net — Tue, 7 Feb 2012 10:00:21 GMT

Baobab Resources plc (LON:BAO), the iron ore, base and precious metals explorer with a portfolio of mineral projects in Mozambique, is pleased to announce that its Tete joint venture ('JV') partner, IFC, a member of the World Bank Group, has committed to supporting the 2012 exploration programme through a pro rata contribution of approximately US$1,900,000.

IFC participated in a placing in November 2008 and remains Baobab's single largest single shareholder with an interest in the Company of 5.78 per cent. In January 2009, IFC acquired a 15% participatory interest in the Tete magnetite-ilmenite project. Under the terms of the JV, IFC has committed to annual pro-rata contributions to the development of the Tete Project with Baobab funding the remaining portion and remaining as the project operator.

IFC creates opportunity for people to escape poverty and improve their lives. It fosters sustainable economic growth in developing countries by supporting private sector development, mobilizing private capital, and providing advisory and risk mitigation services to businesses and governments. IFC has a long and respected history of promoting sustainable mining in developing countries and is highly regarded as a long-term partner in mining development projects.

Commenting today, Jeremy Dowler, Baobab's Chairman said: "We are very pleased to announce the continued support of our partner IFC as we move from resource definition towards pre-feasibility studies at Tete. The corresponding contribution in 2011 was approximately US$1,290,000 and we anticipate that IFC will become more involved as the project progresses, for example in the facilitation of access to port, rail and power infrastructure."

A COPY OF THIS ANNOUNCEMENT IS AVAILABLE FOR DOWNLOAD FROM THE COMPANY'S WEBSITE:
http://www.baobabresources.com

Baobab Resources PLC
Ben James: Managing Director
Tel: +61 8 9430 7151
Jeremy Dowler: Chairman
Tel: +44 1372 450529

Grant Thornton Corporate Finance
Gerry Beaney / David Hignell
Tel: +44 20 7383 5100

Shore Capital Group
Jerry Keen / Toby Gibbs
Tel: +44 20 7468 7964

Fortbridge Consulting
Matt Beale
Tel: +44 7966 389 196

Baobab Resources Plc (LON:BAO) Iron/Vanadium/Titanium Project Update

newsroom@abnnewswire.net — Tue, 31 Jan 2012 15:00:43 GMT

Baobab Resources Plc (LON:BAO) is an iron ore, base and precious metals explorer with a portfolio of exploration projects in Mozambique. The Company is pleased to present an update of activities at the Massamba Group iron / vanadium / titanium project. IFC hold a 15% participatory interest in the project with Baobab owning the remaining 85%. A recent scoping level viability analysis of the project assessed a vertically integrated mining, beneficiation and pig iron smelting operation and reported before tax net present value at a 10% discount (NPV10) and internal rate of return (IRR) figures of US$1.4 billion and 34% respectively (as announced in the RNS dated 29 November 2011).

HIGHLIGHTS
- Resource drilling has defined broad packages of mineralisation at Tenge. Analytical results from the first 3 drill holes have been returned with a further 23 drill holes currently undergoing analysis.
- Significant drill intercepts include 115m at a head grade of 36% Fe and a DTR concentrate grade of 63% Fe, 0.9% V2O5 and 6.6% TiO2 at a mass recovery of 37% from 19.5m in TGDH0002A.
- Coffey Mining is on schedule to complete the Tenge resource estimate by March 2012 which has the potential to add substantially to the current 324Mt global inventory.
- Pre-Feasibility Study (PFS) management team finalised; contracts signed with international consulting groups Coffey Mining and SNC-Lavalin as well as respected industry specialist Dr. John Clout.

Commenting today, Ben James, Baobab's Managing Director, said: "The first round of drill results from Tenge are encouraging and show a strong correlation with the grade characteristics of the Ruoni North and Ruoni South resource blocks. The Tenge resource, due out in March, is expected to push the global resource base well beyond Baobab's targeted 300Mt which will allow scope for ramping up production.

"The Company has also drawn together an excellent team of industry specialists to complete the PFS in good order and looks forward to regularly updating investors on progress."

TENGE RESOURCE DRILLING
Tenge/Ruoni is the easternmost prospect area of the Massamba Group. Drilling at Tenge/Ruoni has intersected a heavily mineralised package varying in thickness from 60m to 150m. Mineralisation has been synformally folded with the fold hinge plunging gently to the west-northwest. Exploration campaigns in the prospect area have been divided into three resource blocks:

- - Ruoni North: representing 1km of strike along the northern limb of the fold. Thirty seven reverse circulation (RC) and diamond holes have been completed to date across seven traverses for an aggregate total of c.5,750m. Drilling has intersected a substantial package of mineralisation from surface dipping at 25° to 50° to the southwest.

On 31 October 2011, the Company announced the estimation of a 93Mt Inferred Resource at Ruoni North. Further drilling has subsequently been completed and the Company is confident that portions of the Inferred Resource will be elevated to Indicated once the analytical results have been returned.

- - Ruoni South: representing 1.2km of strike along the southern limb of the fold. Twenty seven RC and diamond holes have been completed for an aggregate total of 5,200m. Mineralisation in the Ruoni South area is generally steeper dipping (c.65° to the north).

On 7 December, the Company announced the estimation of a 56Mt Inferred Resource at Ruoni South. Of particular interest is the 0.9% V2O5 concentrate grade which is 12% higher than results reported from Ruoni North and some 28% higher than indicated concentrate grades from South Zone and Chitongue Grande resource areas.

- - Tenge: representing the hinge zone of the fold and covering a strike length of approximately 1.3km. A 4,800m programme of diamond and RC drilling (26 drill holes) has been completed.

Consultant, Coffey Mining Pty Ltd ('Coffey'), is currently developing a geological model for the Tenge block and expects to finalise a resource estimate during March 2012. All resource statements are completed in accordance with the Joint Ore Reserves Committee (JORC) guidelines.

Analytical results for diamond holes TGDH0002, 2A and 6 have been returned. Sample preparation at 0.5m to 1m composite intervals was completed by ACT-UIS laboratories in Tete, Mozambique, prior to despatch to ALS Chemex laboratories in Perth, Western Australia, for further compositing (maximum composite length of 6m), Davis Tube Recovery (DTR) and X-ray Fluorescence Spectrometry (XRF) analysis. Samples from all remaining Tenge diamond and RC drill holes are currently undergoing analysis at the Perth laboratory.

TETE PROJECT OVERVIEW
The project is located in the richly endowed Tete province of Mozambique. The province hosts some of the largest undeveloped coal reserves on the planet and, with estimates pointing towards the area producing up to 20% of the world's coking coal by 2015, is fast-tracking to become a mining and industrial hub of global significance.

Immediately south of Baobab's tenure, and sharing the Company's licence boundaries, are c.15Bt of coking and thermal coal resources being brought into production by two of the world's largest mining houses, Rio Tinto and Vale, along with premier steel producers, Tata Steel, Nippon Steel, Jindal Steel and Posco. Other operators in the area include AIM listed companies Beacon Hill Resources plc, Ncondezi Coal Company plc and Eurasian Natural Resources Corporation plc (ENRC).

Low tariff hydro-electric power is readily available from the 2,075 megawatt Cahora Bassa dam. Studies are underway to expand the dam's capacity by an additional 1,300 megawatts. A new 1,500 megawatt scheme at Mphanda N'kuwa, also on the Zambezi, is in advanced planning stages and due to commence production in 2015. The Company believes that it will be able to negotiate tariff rates at a third, if not a quarter, of typical power generation costs in Australia or west Africa which will have a significant impact on future operating costs.

The railway connecting Tete with the port of Beira is being refurbished, as is the port. The deep water port of Nacala and railway linking the port with the interior is also being refurbished under the auspices of a consortium including the Mozambique government, Vale and the World Bank. An order of magnitude study has been completed on a dedicated heavy haulage railway to a Greenfields port located within 500km of Tete.

The Project straddles the central portion of the Tete Mafic Complex and contains two areas of titano-magnetite / ilmenite mineralisation; the Singore area to the south and the Massamba Group in the north. The Massamba Group is composed of a series of three prospects (Chitongue Grande, Chimbala and South Zone) forming an 8km long trend and the 3.5km long Tenge / Ruoni prospect to the east.
Building on the successful exploration programmes of 2009 and 2010, Baobab accelerated activities in 2011 to achieve two key milestones; to define a minimum resource base of 300Mt on which a Scoping Study could be finalised. The Company completed an aggressive c.40,000m drilling campaign that resulted in the expansion of the global resource base to an interim 324Mt (please refer to RNS dated 7 December 2011 for details). An additional resource statement at Tenge, due for release during March 2012, is set to enlarge the inventory again, pushing it towards 500Mt.

The Scoping Study, completed by independent consultants and applying conventional beneficiation and smelting technologies, assessed two production scenarios:

- Scenario 'A': base-case production of 3Mtpa titano-magnetite concentrate and 0.5Mtpa ilmenite concentrate products for export. Initial capital expenditure (capex) estimate of US$448m.
- Scenario 'B': capitalising on the Project's access to low tariff hydro-electric power and strategic proximity to thermal coal reserves to add further value on site through the mine-mouth smelting of 1Mtpa pig iron. Initial capex estimate of US$690m.

While the base-case model for scenario 'A' demonstrated viable Project fundamentals, the optimisations and financial modelling of Scenario 'B' at a 10% discount rate provided compelling economics with pre-tax net present value (NPV10) and internal rate of return (IRR) figures of US$1.4b and 34% respectively. The estimated average annual net cash flow after capex over the modelled 25 year mine life is US$275m.

The Scoping Study results show very clearly the 'value add' from the plans for on-site smelting of pig iron and underlines the strategic advantages of the Project's unique geography with respect to infrastructure and complementary resources. Producing a higher value, high demand product will not only broaden the market base, but also mitigate the requirement to compete for rail and port access.
The vanadium potential remains to be modelled and could add further to the value of this project. Reduced input costs through long-term domestic coal contracts and on-site power co-generation also need to be assessed, while the expanding resource base at Tenge/Ruoni, underpinning a meaningful +30 year mine life, allows scope for ramping up production.

For a detailed summary of the Scoping Study, please refer to RNS dated 29 November 2011.

PRE-FEASIBILITY STUDY
A detailed Pre-Feasibility Study (PFS) work programme has been drafted and scheduled. The Company has signed contracts with leading mining, engineering and environmental consultancies to complete the various aspects of the study.
The PFS will be coordinated out of Australia by Baobab's Project Manager, Christian Kunze. Mr. Kunze has a Master's Degree in Mechanical Engineering / Business Administration and 20 years international management experience in iron ore project development, plant engineering and steel manufacture. He has worked for industry specialists including Siemens VAI and ProMet Engineers, and has a well-established network of professional associates in Africa, USA, Europe, Asia and Australia. Mr. Kunze's specific strength lies in a combined technical and commercial understanding of projects.

The mineral processing component of the study will be supervised by consultant, Dr. John Clout. Dr. Clout is a leader in iron ore petrography, metallurgy, beneficiation, downstream processing and marketing. He was the Head of Resource Strategy at FMG in which role he was instrumental in the success of the company. He is an ex-CSIRO manager and has advised on mineral processing to companies including Rio Tinto, BlueScope, OneSteel, Robe River, Hancock and WISCO. John holds the position of Adjunct Professor in Mineral Processing at the School of Mechanical and Chemical Engineering, University of Western Australia.

Coffey Mining has been selected to complete the resource, mining and environmental aspects of the PFS. Coffey has more than 50 years' experience as specialist mining consultants operating in over 60 countries across the globe and has contributed to iron ore feasibility studies for clients including FMG, Atlas Iron, Robe River, BHP Billiton, Gibson Iron, OneSteel, Hancock Prospecting, Grange Resources, Brockman Resources and Midwest Cooperation.

SNC-Lavalin has been selected as the engineering and infrastructure consultant. SNC-Lavalin is one of the largest engineering and construction groups in the world, consistently ranked in the top ten international design firms by Engineering News Record. As a provider of engineering, procurement, construction and project management services SNC-Lavalin has the capacity to take the Tete project from feasibility level through to project execution. Recently executed studies relating to the beneficiation of magnetite and heavy mineral sands projects include FMG's North Star Magnetite Project, Zammin Ferrous' Valentines Magnetite Project and Grand Cote Mineral Sands Project.

The information in this release that relates to Exploration Results is based on information compiled by Managing Director Ben James (BSc). Mr James is a Member of the Australasian Institute of Mining and Metallurgy, is a Competent Person as defined in the Australasian Code for Reporting of exploration results and Mineral Resources and Ore Reserves, and consents to the inclusion in the report of the matters based on the information in the form and context in which it appears.

For the full announcement including results, please go to:
http://media.abnnewswire.net/media/en/docs/71457-LON-BAO-20120201.pdf

Baobab Resources PLC
Ben James: Managing Director
Tel: +61 8 9430 7151
Jeremy Dowler: Chairman
Tel: +44 1372 450529

Grant Thornton Corporate Finance
Gerry Beaney / David Hignell
Tel: +44 20 7383 5100

Shore Capital Group
Jerry Keen / Toby Gibbs
Tel: +44 20 7468 7964

Fortbridge Consulting
Matt Beale
Tel: +44 7966 389 196

Baobab Resources plc (LON:BAO) Exercise of Options By Directors

newsroom@abnnewswire.net — Fri, 27 Jan 2012 18:00:26 GMT

Baobab Resources plc (LON:BAO) advises that all directors have exercised options which were due to expire on 1 February 2012. The aggregate number of options was 1,125,000 and aggregate proceeds amounted to GBP116,150. Jeremy Dowler will sell 300,000 shares of his current holding in order to fund his exercise of 375,000 options and relevant tax liability.

Following this issue the directors' interests in the Company are as follows:

Ben James holds 864,500 ordinary shares in the Company, representing 0.45% of the issued share capital. In addition, Mr. James is interested in 5,200,000 options over ordinary shares in the Company as follows:

--------------------------------------
Stock Options Option Exercise  Expiry 
Held          Price            Date
--------------------------------------
1,000,000     GBP0.0615  16 April 2012
1,200,000     GBP0.10     30 June 2013
3,000,000     GBP0.40  31 January 2013

Jeremy Dowler holds 8,165,169 ordinary shares in the Company, representing 4.29% of the issued share capital. In addition, Mr. Dowler is interested in 2,700,000 options over ordinary shares in the Company as follows:

--------------------------------------
Stock Options Option Exercise  Expiry 
Held          Price            Date
--------------------------------------
1,200,000     GBP0.10     30 June 2013
1,500,000     GBP0.40  31 January 2013

Jon Crowe holds 8,940,001 ordinary shares in the Company, representing 4.70% of the issued share capital. Mr. Crowe holds 2,300,001 directly, has an interest in 6,500,000 Ordinary Shares held indirectly by R J Broadhurst (Mr. Crowe's wife) and himself as trustee for the R & J Superannuation Fund and 140,000 Ordinary Shares held indirectly through Millridge Holdings Pty Limited of which Mr. Crowe is a shareholder. In addition, Mr. Crowe is interested in 1,400,000 options over ordinary shares in the Company as follows:

--------------------------------------
Stock Options Option Exercise  Expiry 
Held          Price            Date
--------------------------------------
800,000       GBP0.10     30 June 2013
600,000       GBP0.40  31 January 2013

Jonathan Beardsworth holds 250,000 ordinary shares in the Company, representing 0.13% of the issued share capital. Mr. Beardsworth is interested in 1,400,000 options over ordinary shares in the Company as follows:

--------------------------------------
Stock Options Option Exercise  Expiry 
Held          Price            Date
--------------------------------------
800,000       GBP0.10     30 June 2013
600,000       GBP0.40  31 January 2013

Following the exercise of options by directors, the Company has 190.137,900 of ordinary shares in issue. Application has been made for the new ordinary shares to be admitted to AIM and admission is expected on 27 January 2012.

In addition, the Board has offered certain key employees and contractors of the Company the opportunity to relinquish their rights to options with a strike price of 40p expiring in January 2013 and April 2013 and to receive the equivalent number of options at a strike price of 20p with identical terms attached. 3,800,000 options with a strike price of 40p were issued on 9 March 2011 and 1,500,000 options with a strike price of 40p were issued on 4 July 2011.

The directors have waived their rights to receive options at a strike price of 20p in exchange for relinquishing their rights to options with a strike price of 40p.

Download of this announcement is available from the Baobab website at: http://www.baobabresources.com

Baobab Resources PLC
Ben James: Managing Director
Tel: +61 8 9430 7151
Jeremy Dowler: Chairman
Tel: +44 1372 450529

Grant Thornton Corporate Finance
Gerry Beaney / David Hignell
Tel: +44 20 7383 5100

Shore Capital Group
Jerry Keen / Toby Gibbs
Tel: +44 20 7468 7964

Fortbridge Consulting
Matt Beale
Tel: +44 7966 389 196