GMA Resources Plc : Share price movement

Share price movement

Further to the announcement on 4 February 2013 regarding the conditional agreement to acquire 90 per cent. of the participatory interests in the charter capital of Joint Venture Kazakh-Russian Mining Company LLP ("KRMC") and the lifting of the suspension of dealings in the Company's Ordinary Shares, the Company notes the significant volume of trading in its shares and the rise in its share price.

Shareholders are reminded of the key parts of the Proposals:

• The Company is proposing a capital reorganisation which will have the effect of converting 500 Existing Ordinary Shares into 1 New Ordinary Share;
• The number of New Ordinary Shares in Issue at Admission will be 1,236,006, which represents the Existing Ordinary Shares in issue after the Capital Reorganisation is effective. The number of New Ordinary Shares at Admission will represent 0.81 per cent. of the New Ordinary Shares in issue following the Contract Reinstatement;
• The Company is proposing to acquire 90 per cent. of the participatory interests in the charter capital of KRMC for a consideration of £40 million which will be satisfied through the issue of 148,320,720 B Shares by the Company. The Subsoil Use Contracts held by KRMC are presently suspended. Upon the Contract Reinstatement, the B Shares will automatically convert into New Ordinary Shares on a one-for-one basis;
• Loan Stock Holders will be asked to approve at the relevant class meetings of Loan Stock Holders amendments to the terms of their loan stock such that their holdings automatically convert into New Ordinary Shares upon the Contract Reinstatement. A total of 2,472,011 New Ordinary Shares will be issued to the holders of Loan Stock upon the Contract Reinstatement, which will represent 1.63 per cent. of the New Ordinary Shares in issue following the Contract Reinstatement;
• Upon the Contract Reinstatement, the Company will issue the Loan Stock Shares and the B Shares will automatically convert into New Ordinary Shares on a one-for-one basis and there will be 152,028,737 New Ordinary Shares in issue. It is expected that dealings in the Loan Stock Shares and the New Ordinary Shares arising from the conversion of the B Shares will commence on the next business day following the Contract Reinstatement; and
• In the event that the Contract Reinstatement does not become effective on or before 31 May 2013, the Loan Stock Shares will not be issued and the B Shares will be converted into Deferred Shares. Furthermore, dealings in the New Ordinary Shares will be suspended on 3 June 2013, the Company will revert to being an investing company under Rule 15 of the AIM Rules and dealings in the New Ordinary Shares on AIM will be cancelled six months thereafter if the Company has not implemented its investing policy by that date.

The definitions used in this announcement are the same as those used in the announcement issued on 4 February 2013.

FURTHER ENQUIRIES:

GMA Resources Plc	Ken Crichton	[phone]
Merchant Securities Limited	David Worlidge/Virginia Bull	[phone]