Weatherly International : Quarterly Operations and Production Update

20 October2016

Weatherly International plc

('Weatherly' or 'the Company')

Quarterly Operations and Production Update

Weatherly International plc (AIM: WTI) announces its update for the quarter ended 30 September 2016.

Summary

· Tschudi production for the quarter was 3,641 tonnes of copper cathode, in line with the most recent guidance for reduced production due to excessive rates of groundwater inflow to the open pit.

· Upgraded in-pit groundwater management systems and infrastructure have been commissioned as planned, and mining is proceeding as per our revised schedules.

· Nameplate production rates of 1,417 tonnes of copper cathode per month are still expected to be achieved by the end of the 2016 calendar year.

· As a result of reduced production, additional costs to deal with the groundwater inflow and adverse exchange rate movements, C1 costs for the quarter increased to US$5,073 per tonne.

· Groundwater management focus is now on long-term management systems and the Company is now confident in its ability to manage groundwater in the long term.

Craig Thomas, CEO of Weatherly, commented:

'After recording such a strong performance in the March quarter, we are disappointed that we were unable to anticipate such high groundwater inflow rates at Tschudi, and have consequently spoiled the company's track record of beating our guidance.

'Our operating team however is fully focussed on meeting or beating the new revised guidance and on demonstrating once again what they, and the Tschudi operation, are capable of.'

Tschudi Production Performance

Production results for the quarter ended 30 September 2016

	Quarter ended Dec-15	Quarter ended Mar-16	Quarter ended Jun-16	Quarter ended Sep-16
Total (Ore + Waste) Mined (000 tonnes)	6,489	6,091	6,826	5,703
Ore Tonnes stacked (000 tonnes)	772	583	556	670
Ore Stacked grade (per cent)	0.83	0.81	0.88	0.89
Copper Cathode Produced (tonnes)	4,076	4,442	3,812	3,641
C1 Cost (US$/t)	4,080	3,429	4,689	5,073

Last quarter the Company reported that Tschudi open pit mining operations had encountered groundwater inflow rates exceeding the highest rates indicated in hydrogeological studies conducted as part of the Bankable Feasibility Study (BFS). These excessive inflow rates had caused delays in mining the scheduled ore volumes to deliver to the heap leach operation, with resulting reductions in copper output.

The Company indicated that production rates for the September quarter were expected to be approximately 15% below nameplate rates of 1417 tonnes per month, and would return to nameplate rates by the end of the December quarter.

The Company now advises that the upgraded in-pit groundwater management systems and infrastructure have been commissioned as planned, and mining is proceeding as per our revised schedules. Copper output for the quarter was 14.3% below nameplate as expected, and we still expect to re-attain nameplate copper output rates by the end of the December quarter. Groundwater management focus is now on long-term management systems including dewatering boreholes to be established within and/or outside the pits.

As a result of reduced production, additional costs to deal with the groundwater inflow and adverse exchange rate movements, C1 costs for the quarter increased to US$5,073 per tonne.

Weatherly has previously advised that if copper prices remain at current levels it is unlikely that the Company and its subsidiaries will generate sufficient surplus cash to meet all loan repayments when due. This remains the case and the Company continues to positively engage with Orion Mine Finance (Master) Fund I LP on the subject.

For further information please contact:

Weatherly International plc[phone]

Craig Thomas, Chief Executive Officer

Kevin Ellis, CFO and Company Secretary

RFC Ambrian Limited[phone]

(Nominated Adviser & Broker)

Nominated adviser contact: Stephen Allen or Bhavesh Patel

Broker contact: Kim Eckhof

Blytheweigh [phone]

(Financial PR) Tim Blythe / Camilla Horsfall / Nick Elwes

About Weatherly

Weatherly is an AIM listed copper mining company operating in Namibia in southern Africa. Its principal assets are one operating open pit copper mine called Tschudi and two underground copper projects called Otjihase and Matchless.

These assets will enable Weatherly to achieve its medium term goal of establishing a mining business capable of sustaining approximately 25,000 tonnes per annum of copper production.

The Company also has a 25 per cent. stake in the AIM listed company, China Africa Resources plc (AIM: CAF), which is developing a lead/zinc mine called Berg Aukas, also in Namibia.