African Consolidated Resources Plc : Exploration Results Define Additional Area of REE Mineralisation at Nkombwa Hill Rare Earth

  African Consolidated Resources Plc : Exploration Results Define Additional
   Area of REE Mineralisation at Nkombwa Hill Rare Earth Project in Zambia

   African Consolidated Resources plc / Ticker: AFCR / Index: AIM / Sector:
                                    Mining

30 January 2013

         African Consolidated Resources plc ('ACR' or 'the Company')
                             Nkombwa Hills Update

African Consolidated  Resources  plc,  the  AIM  listed  resource  development 
company notes the announcement released  by Galileo Resources plc  ('Galileo') 
which provides an update on the  detailed rock chip sampling programme at  the 
Nkombwa Hill Rare  Earth Project and  which demonstrates an  extension of  the 
area of high grade rare earth mineralisation.

As previously notified, ACR's farm in partner Rare Earth International  (REI), 
funded by Galileo through an investment  of $1.35 million, holds the right  to 
earn up to  a 50% interest  in the Nkombwa  Project in terms  of an  agreement 
between REI and  the Company  and its  wholly owned  Zambian subsidiary  which 
holds the prospecting licence.  REI's interest may be increased to 75% if  ACR 
elects not to co-fund after REI has earned a 50% interest.

Roy Tucker, Executive Chairman of ACR said, "We are delighted that exploration
at Nkombwa Hills  is now under  way following the  resolution of the  previous 
licence issue and that an extension  of the area of rare earth  mineralisation 
has already been identified."

The Galileo announcement is reproduced below:

                     Galileo Resources plc announcement:
                            Galileo Resources Plc
                         ("Galileo" or the "Company")

Exploration Results Define an Additional Area of REE Mineralisation at Nkombwa
                       Hill Rare Earth Project, Zambia

Galileo Resources Plc (AIM: GLR), the emerging African Rare Earth  exploration 
and development company, is pleased to  report the results of a detailed  rock 
chip sampling programme comprising  353 samples over a second target for  rare 
earth element (REE) mineralisation at the Nkombwa Hill Rare Earth Project; the
second target was identified from ground radiometric surveying and orientation
rock chip  sampling. This  follows on  from outcrop  sampling on  the  initial 
target as announced by African Consolidated Resources Plc on 17 May 2011.  The 
results identified the  second target area  to contain significant  high-grade 
REE mineralisation.

Highlights

  * 111 (36% ) of  the outcrop samples,  assayed more than 2% total rare earth
    oxide ('TREO') with an average assay of 4.17% TREO 

  * 161 (46%) of the samples,   assayed more than 1%  TREO with an average  of 
    3.34% TREO  

  * The  highest sample recorded  was  22.32% TREO 

  * The complete suite of 353 samples averaged 1.7%TREO    

  * Several areas of continuous REE mineralisation are identified, the largest
    being more than 350m long and 40-80m in width 

  * The REE mineralisation  is hosted in  a rock unit  that contains very  low 
    contents  of  acid-consuming  minerals  suggesting   potentially   readily 
    leachable  REE with low acid cost   

Colin Bird, Executive  Chairman of  Galileo Resources, said:  "The results  of 
this  sampling   programme  extend   the  area   of  high-grade   rare   earth 
mineralisation we have  identified in the  Nkombwa Hill Project.   We can  now 
progress towards establishing a resource, and  in order to achieve this,  have 
already started work  on establishing  a suitable access  road to  the top  of 
Nkombwa Hill. Drilling will commence as soon as the heavy summer rains end  in 
late March 2013."

Sampling

The Company has completed a programme  of detailed surface rock chip  sampling 
over a second  identified REE  target area  - the  "Central" target  - in  the 
Nkombwa Hill Project.  

A total of  353 outcrop rock  chip samples  were collected along  a series  of 
closely spaced  traverses  across  the body  of  silicified  carbonatite  rock 
underlying the crest  area of Nkombwa  Hill.  Sample spacing  was 4-12m  along 
traverses 25 to 30m apart; average sample  size was 1.7 kg.  The samples  were 
assayed for the  full suite of  REE and a  suite of relevant  major and  trace 
elements by Intertek Genalysis laboratories in Perth, Australia.

Results

The average  total rare  earth oxide  (TREO) composition  of the  353  samples 
assayed is 1.70% and  the most enriched sample  in the suite contained  22.32% 
TREO, close to highest value recovered thus  far at Nkombwa Hill of 23.61%.    
 Table 1 provides summary statistics for the suite of assayed samples.

                         Table 1: Summary statistics

sample range %TREO   number
   Total     1.70  353 (100%)
  mean >1%   3.34  161 (46%)
  mean >2%   4.17  111 (31%)
  Maximum    22.32

The sample traverses reveal several  zones where successive samples have  TREO 
contents in excess of 3% over 80-150m  of strike - the largest lies along  the 
south-eastern edge of the target and is at least 50m wide and 300m long.

Previous mineralogical studies of the silicified carbonatite demonstrated that
the predominant REE mineral is a green, low-The monazite accompanied by lesser
amounts  of  bastnaesite  and  traces  of  cerianite.  The  host  material  is 
predominantly composed of fine-grained cherty silica and iron-oxides with very
low carbonate (acid-consuming) minerals; content -less than 2%.  This suggests
that rare earths should potentially be able to be extracted into solution from
the milled (run of mine) ore by simple acid cracking and leach.

The current  focussed sampling  programme is  the second  to be  completed  at 
Nkombwa Hill. An equivalent surface sampling programme undertaken in  December 
2011 over the "North  West Crest" target, 300m  to the north-west, revealed  a 
well-defined tabular zone  of REE  mineralisation 25-50m  wide and  continuous 
over at least 350m of strike and  open at each end.  Here, the  mineralisation 
is hosted in  sub-vertically disposed  coarse-grained ankeritic-  carbonatites 
and was traced over more than 150m  of elevation: this suggests that the  high 
REE grades encountered at surface should persist at depth.

An access road is currently being constructed to the crest of Nkombwa Hill.  A
drilling  programme  has  been  designed  to  establish  the  extent  of   the 
mineralisation in each of the delineated targets and will commence as soon  as 
the heavy summer rain season ends in late March to early April 2013.

The Nkombwa Hill Project

The Nkombwa Hill project is located in the north east of Zambia, 22km east  of 
the major T2  paved national  road between  Lusaka (Zambian  capital) and  the 
Tanzanian border.

Through a Heads of  Agreement concluded with  Rare Earth International  (REI), 
Galileo earned the right to acquire 70%  of REI's interest in a joint  venture 
signed with Fisherman Ltd, a  wholly-owned subsidiary of African  Consolidated 
Resources plc, who hold a prospecting  right over the Nkombwa Hill area.   REI 
will earn a 30% interest in the REE on completion of a JORC compliant Inferred
Resource and spending  US$750,000 within 2  years; increasing to  50% once  at 
least half of the inferred resource is converted to Indicated category, within
a further 2  years with  an additional expenditure  commitment of  US$600,000. 
ACR/Fisherman can elect thereafter  to contribute with REI  as manager or  REI 
can achieve a 75% interest by  fully funding a bankable feasibility study.  If 
ACR elects not to co-fund the feasibility study then Galileo could earn up  to 
a maximum of 75% interest in the Nkombwa Project.  

The Nkombwa Hill  carbonatite plug is  situated in the  upper Luangwa  Valley, 
which forms part  of the Western  Limb of  the East African  Rift system.  The 
carbonatite intrusive forms a prominent oval-shaped (1800 x 1500m) hill rising
300 m above  the surrounding  flat countryside.   The complex  is composed  of 
several  carbonatite  types,   all  predominantly   dolomitic  in   character. 
 Mica-rich carbonatite is  common in the  outer parts of  the complex while  a 
medium-grained, uniform-textured dolomite carbonatite ("rauhaugite") makes  up 
most of the  central parts of  the carbonatite body.   Several lenticular  and 
dyke-like bodies  of vari-textured,  coarse-grained to  pegmatoidal  iron-rich 
(ankerite and siderite bearing) carbonatite are found in the central parts  of 
the complex.  Much of the central crest  area of Nkombwa Hill is underlain  by 
fine-grained silicified  carbonatite  produced  by  pervasive  replacement  of 
earlier formed carbonatites.  Boulder rubble  from these outcrops drapes  much 
of the south-western face of the Hill.

The Nkombwa Hill carbonatite has been investigated by several institutions for
a range  of commodities  since it  was first  recognised as  a carbonatite  by 
geologists of  the  country's  Geological Survey  in  1952.  These  endeavours 
focussed primarily on phosphate and niobium with little attention on REE.

REE-focussed exploration commenced in late 2010 when REI concluded an  earn-in 
agreement with  Fisherman Mining  Ltd, a  wholly-owned subsidiary  of  African 
Consolidated Resources and holder of a Large Prospecting License over the area
enclosing the  Nkombwa Hill  carbonatite.  Roan  Selection Trust  drilled  two 
diamond core holes  (NB-1 and NB-2)  into the northern  margin of the  complex 
during 1966/67  that  intersected several  zones  having elevated  La  and  Ce 
concentrations.  Cores from  these holes are  stored in the  Chamber of  Mines 
core shed in Kalulushi and were re-sampled: assaying selected sections for the
full  suite  of  REE   confirmed  the  presence   of  REE  mineralisation   in 
coarse-grained iron-rich  dolomitic carbonatite  zones, the  most  significant 
having 7.98% TREO over 6.2m and 5.47% TREO over 4.1m.  

A low altitude, high  resolution airborne magnetic  and radiometric survey  of 
the area was flown and  processed to delineate prospective areas.   Systematic 
surface sampling, accompanied by ground radiometric traversing, enabled  three 
areas to be targeted for higher  density sampling: these are termed the  North 
West Crest,  Central  and  South  East  targets.   Both  close-spaced  outcrop 
sampling has  now  covered  the  North West  Crest  and  Central  targets  and 
drill-ready zones of REE mineralisation have been identified in both.

This announcement  has been  reviewed by  Mike  Kellow BSc,  a member  of  the 
Australian Institute of Geologists and  Technical Director of ACR.  Mr  Kellow 
meets the definition of a  "qualified person" as defined  in the AIM Note  for 
Mining, Oil and Gas Companies.

For further information visit www.acrplc.com or please contact:

Roy Tucker     African Consolidated Resources plc +44 (0) 1622 816918

                                                  +44 (0) 7920 189012
Craig Hutton   African Consolidated Resources plc +44 (0) 7920 189010
Andrew Godber  Panmure Gordon (UK) Limited        +44 (0) 207 886 2500
Callum Stewart Panmure Gordon (UK) Limited        +44 (0) 207 886 2500
Susie Geliher  St Brides Media & Finance Ltd      +44 (0) 20 7236 1177

Technical Glossary

 Acid cracking             a process of disintegrating minerals in ore by the
                           addition of acid and heating  
Bastnaesite (or            a rare earth fluoro-carbonate ore mineral having
bastnäsite):               the generalised formula RCO3.F (R denoting a mix of
                           REE). The shorthand bastnaesite-(Ce) is often used
                           to denote bastnaesite containing mostly LREE and
                           bastnaesite-(Y) for bastnaesite enriched in HREE.
Cerianite:                 nominally CeO2 but can contain appreciable amounts
                           of other REE along with fluorine; usually
                           represents a late alteration product of primary REE
                           minerals.  
Monazite:                  a rare earth phosphate ore mineral having the
                           generalised formula RPO4 (R denoting a mix of REE).
                           The shorthand monazite-(Ce) is often used to denote
                           monazite containing mostly LREE and monazite-(Y)
                           for monazite enriched in HREE.
Phosphate (P2O5):          an oxide of phosphorus
         
Rare earths (REE):         a set of sixteen chemically similar elements in the
                           periodic table made up of the fourteen stable
                           lanthanoids lanthanum to lutetium, plus yttrium and
                           scandium.  On the basis of their chemical
                           properties, the REE may be subdivided into the
                           light REE (LREE), being the elements from lanthanum
                           to gadolinium; and the heavy REE (HREE), the
                           remaining seven lanthanides terbium to lutetium and
                           yttrium.
REO (rare earth oxide):    the oxide form of the rare earth elements  
     
Rock chip sampling:        Collection of rock samples from surface exposures
       
Th:                        The element Thorium
                     
TREO:                      total rare earth oxides
                   

The economically significant rare earth elements include:

La: Lanthanum            Used extensively as a catalyst in the refining of
                         crude oil; its ability to store 400 times its volume
                         of hydrogen is utilised in rechargeable NiMH
                         batteries that are an essential component of hybrid
                         motor vehicles; La changes the refractive index of
                         glass and is used in the manufacture of lenses for
                         digital cameras.
Ce: Cerium               Primary uses are in high quality polishing of glass,
                         silicon wafers, solar cells; in auto catalytic
                         converters; rich red colour pigments; low energy
                         light bulbs.
Pr: Praseodymium         As an additive Pr gives a pure yellow colour to glass
                         and brilliant pastel greens and yellows for glazes;
                         can be used along with Nd in permanent magnets (see
                         below).
Nd: Neodymium            Major application is in the manufacture of
                         NdFe(iron)B(boron) permanent magnets (neo-magnets),
                         the most powerful permanent magnets currently known.
                          NdFeB magnets are essential in new "clean energy"
                         technology such as wind turbines and hybrid and
                         electrical motor vehicles; their high strength have
                         allowed the miniaturising of hard disc drives and
                         personal audio devices.  Nd, with Y, is widely used
                         in the manufacture of lasers.  
Eu:  Europium            Widely used as a phosphor: Eu alloys uniquely provide
                         a perfect red colour for LED, LCD and plasma
                         television and monitor screens; also used in thin
                         film superconductor alloys and in lasers
Gd: Gadolinium           Uses include neutron capture capability and in
                         compounds as a contrasting agent in radiography and
                         magnetic resonance imaging in medical diagnostics
Sm: Samarium             Alloyed with cobalt, Sm forms a strong permanent
                         magnet that has the highest resistance to thermal
                         demagnetization.
Y: Yttrium               Uses include lasers, as host for europium in TV red
                         phosphor; alloyed with boron and cobalt high
                         temperature superconductors and microwave filters

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