Tulu Kapi Gold Project

completed

Nyota Minerals Limited (“the Company”, or “Nyota”) is a listed (AIM: NYO and ASX: NYO) Australian incorporated junior mineral exploration company focused on advancing its 100% owned Tulu Kapi gold prospect (“Tulu Kapi”), located 28 km east of the town of Ayra-Gulliso and 510 km from Addis Ababa in western Ethiopia. The project area is an underdeveloped frontier region which is mainly sustained by agricultural activities and has limited formal employment opportunities. Nyota acquired a 100% interest in the Tulu Kapi license through the acquisition of Minerva Resources Plc in July 2009. The Tulu Kapi exploration permit covers an aggregate area of 11 km2. In September 2009, Nyota announced a JORC compliant inferred resource of 690,000 oz of gold from historical drilling and assay data. The Company has also identified more than 20 km of exploration targets that have the potential to add more ounces to the current resource. Preliminary metallurgical test work indicates recoveries of at least 95%. Nyota has launched a 30,000m drill program, which is expected to result in a resource significantly in excess of the maiden resource statement announced by Nyota last year. Nyota will also be upgrading part of the current resource to an indicated resource category. A revised resource statement is expected in Qtr2 2010. Nyota is expected to convert the current exploration license into a mining license by May 2011. As per the current mining law, the company will be expected to complete a prefeasibility study as part of the application for the mining license. This would also include a scoping study and an initial Social and Environmental Impact Assessment (“SEIA”) of a potential future mine. Although the resource is in the early stages of exploration, the prospect shows the potential for an open-pit gold mine with a minimum mine life of at least 10 years as well as the possibility of underground mining in due course as the ore body appears open ended at depth with increasing grades. In addition to Tulu Kapi, Nyota has a portfolio of various other early stage projects in Burundi, Swaziland and Sierra Leone. Nyota is exclusively focused in advancing the Tulu Kapi project to the prefeasibility stage and is currently evaluating its interests in its other projects, as part of the company’s strategic approach to project development. The total project cost is estimated at GBP10 million (USD 15 million). The project cost reflects the company’s budget estimates for exploration, scoping studies and environmental and social studies over the next 12 months. The proposed IFC investment is an equity investment of up to GBP 7.67M (USD 11.51M) including an option package. Nyota has expressed its ambition to follow good international industry practice in environmental, safety, health and community issues. IFC will assist Nyota in preparing a comprehensive Health, Safety, Environment & Community (HSEC) Policy which will contain management plans for the exploration stage with commitments relating to any future mine development.