Amara Mining PLC: RESULTS OF FIRST PHASE OF BAOMAHUN OPTIMISATION

Amara Mining PLC: RESULTS OF FIRST PHASE OF BAOMAHUN OPTIMISATION  LONDON, UNITED KINGDOM -- (Marketwired) -- 01/30/14 --  Amara Mining PLC (AIM: AMA) (TSX: AMZ)  *T  LSE: AMA; TSX: AMZ  30 January 2014                                              AIM:AMA  Amara Mining plc  ("Amara" or "the Company")  RESULTS OF FIRST PHASE OF BAOMAHUN OPTIMISATION WORK  Amara Mining plc, the AIM-listed West African focused gold mining company, is pleased to announce the results of the first phase of optimisation work[i] for the July 2013 Feasibility Study ("FS") of the Baomahun Gold Project ("Baomahun") in Sierra Leone.  HIGHLIGHTS  * First phase of optimisation work focused on 'right-sizing' the   plant to the deposit to reflect current market conditions and gold   price outlook. The optimisation studies demonstrated that a 1 million   tonne per annum ("Mtpa") plant would allow for:  o the selective mining of the deposit's higher grade core in a  smaller open pit  o the longer term mine feed from underground sources to unlock the  full potential of Baomahun's Mineral Resources  * Based upon this smaller scenario, there is a 40% reduction in the   upfront capital cost to US$90 million and a 43% reduction in the total   pre-production capital costs to US$143 million compared to the FS  * Average production in years 1-6 remains robust at 88,000 ounces   per annum with total cash costs (including royalties) reduced by 11%   to US$711 per ounce over the life of mine ("LOM")  * At a gold price of US$1,350 which was used for the FS, the open   pit only scenario delivers a post-tax Internal Rate of Return ("IRR")   consistent with the FS at 22% and a post-tax Net Present Value ("NPV")   of US$80 million at a discount rate of 8%  * At a gold price of US$1,250, the post-tax IRR is 17% and the   post-tax NPV is US$50 million at a discount rate of 8% for an open pit   only scenario  * Baomahun's metrics are in line with other similar West African   gold projects on an open pit only basis, however the underground   opportunity transforms its economics  Click on, or paste the following link into your web browser, to view  the associated PDF document:  http://www.rns-pdf.londonstockexchange.com/rns/8393Y_1-2014-1-29.pdf  This information is provided by RNS  The company news service from the London Stock Exchange  END          Contacts: RNS Customer Services 0044-207797-4400 rns@londonstockexchange.com http://www.rns.com