Bisha Announces Commercial Production on Copper Expansion

December 2, 2013

Bisha Mining Share Company (BMSC) is pleased to announce that the Bisha Mine has reached commercial production for the copper expansion with the successful commissioning of its flotation plant. Since commissioning commenced in early Q3, the operation has produced approximately 60,000 tonnes of copper concentrate and is on track to meet guidance of 30 to 50 million pounds of copper production in 2013.

BMSC’s Chairman Cliff Davis states “We are very pleased to advance this tremendous deposit to the next stage of production and we are looking forward to significant 2014 cash flow to add to our already strong balance sheet.  Our continuing success can be attributed to our staff, contractors and the support of the Government.  The State has understood from the beginning that responsible development of the mining industry has the potential to be a significant economic catalyst to the country over the next several years. Our success could not be achieved without the support of the Ministry of Energy and Mines and the Eritrean National Mining Corporation.”

In the past month the plant has been achieving over 80% of its targeted metrics of feed grade, recovery rates, and copper produced in concentrate. The transportation logistics from site to Massawa port are working well and Bisha has made three ocean shipments totalling approximately $60 million in value, with another ship loading this week in Massawa.

Pre-commercial production sales proceeds and production costs to-date, including mining, processing and general and administrative costs directly attributable to the project, will be capitalized against the build cost.  The build cost of the copper plant and infrastructure was approximately $110 million, compared to a budget of $125 million. 

Forward Looking Statements: The above contains statements regarding copper production, mine operations, and process recoveries.Forward-looking statements are frequently, but not always, identified by words such as “expects,” “anticipates,” “believes,” “intends,” “estimated,” “potential,” “possible” and similar expressions, or statements that events, conditions or results “will,” “may,” “could” or “should” occur or be achieved.  Forward-looking statements are statements about the future and are inherently uncertain, and actual achievements of the Company or other future events or conditions may differ materially from those reflected in the forward-looking statements due to a variety of risks, uncertainties and other factors.  The Company’s forward-looking statements are based on the beliefs, expectations and opinions of management on the date the statements are made and the Company assumes no obligation to update such forward-looking statements in the future.

Bisha Mining Share Company

“Cliff T. Davis”

Cliff T. Davis