MUS 26 October 2016 SUCCESSFUL BULK SAMPLING START-UP YIELDS...

MUS

26 October 2016

SUCCESSFUL BULK SAMPLING START-UP YIELDS 460.43 CT GEM QUALITY RUBIES

Highlights:

460.43 cts of high quality rubies recovered during the commissioning of the bulk sample mining plant at Montepuez Project
 These rubies are the first recoveries from 2,683 tonnes of initial material processed as part of the commissioning phase
 Further mining optimisation is ongoing following the initial commissioning phase
 Recoveries expected to increase in coming months - plant will be ramped up to 350m3 (525 tonnes) per day capacity during November 2016
 Robust initial recoveries show all the characteristics of a commercial (high grade and high quality) ruby deposit at Montepuez
 Alpha deposit open in all directions with near-term drilling program to delineate full extent of ruby mineralisation
 Multiple additional targets with (alluvial/colluvial) ruby mineralisation proven on two additional locations at Montepuez
 Strategic sales and marketing agreements to be finalised prior to sale of first Mustang rubies
 Alluvially sourced uncut rubies from Mozambique sold for US$317 to US$688/ ct average at Gemfields auctions (2014 & 2015)
 Ruby market remains strong with reported cut/polished high quality ruby prices up to US$35,900/ct