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Armadale Capital PLC

******** Investment Management

13 March 2014


******* **** - Senior Investment Analyst

Armadale Capital is an AIM listed company focussed on investing in natural resource extraction, mining and the secondary sectors associated with this investment category. Armadale Capital owns an 80% interest in the Mpokoto Gold Project in the Democratic Republic of Congo, 40% of Mine Restoration Investments Ltd in South Africa and a small percentage of Redcliffe Resources Ltd in Australia.

Current Numerical Valuations

Currency: GBX Market Capitalisation: 4.4m PE Ratio: -2.292 Year Range: 0.07-0.35 Asset Valuation: 3.87m NAV: 0.12

Assessing the Value of The Mpokoto Gold Project

The Mpokoto Gold Project undoubtedly carries the most potential in terms of rewarding the shareholders of Armadale Capital. The 20! government owned stake in the project is a huge advantage to the company as it will likely decrease any negative Congolese inuence in the project, but moreover could provide a huge boost to the company as regards acquiring mining licenses. " The placing of #525,000 of shares on 12th March would suggest to us that Armadale Capital have progressed signicantly faster with the Mpokoto Gold Project than the market expectations for the project. The evidence that we have been able to retrieve from private sources suggests that the company is potentially between three and six months in front of the projects schedule and that the expected short term news ow regarding licence grants, scoping studies and drilling reports will be in line with the highly positive market expectations."

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Armadale Capital PLC

******** Investment Management

13 March 2014

Gold Price
With gold having broken over the resistance at $1,200, we feel that estimates for the medium term between $1,500 - $1700 are realistic. How soon the market is likely to acknowledge the short term up-trend of gold will depend upon the ability of gold to break through the secondary resistance at $1,400.

The current numerical studies suggest that of the total 510,000 oz of gold within the range of the mining permit, at least 80! of that will be extractable and with the price of gold rising in the short term and this trend looking to move further into the medium and long term, we believe that in its current state, the mine could be valued between #11,00,000 and #16,000,000. This could mean that Armadale Capital will decide to develop the Mpokoto Gold Project as a phase one ready mine and then sell the asset. It is more likely that with the potential for very high revenues from the project it will mean that Armadale Capital will farm out the extraction of the gold and grant the third party an interest in the project. " In the event that the board of directors decide to raise funds through the market, we would expect a placing of shares to be o$ered directly to institutions and for these shares to be received favourably. Our current estimations suggest that the value of a placing to institutions would be between #10,000,000 and 13,000,000 and that once the mine was commercially active it could turnover in excess 0f #60,000,000 within phase one." Overall, within the price range of 0.14%35 or below, we believe that Armadale Capital has the potential to signicantly reward shareholders with large capital gains on their investment over the medium and long term in particular. The Mpokoto Gold Project is the portfolio component of the companys diverse range of natural resource based investments that we feel will be the most signicant in raising the share price of Armadale Capital over all time frames."

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