African Copper Plc announced that it has secured an additional loan of USD 5 million from its controlling shareholder ZCI Limited. The purpose of the new loan is to provide the Company with further working capital and to invest in its Mowana Mine facilities and operations.

The new USD 5 million loan from ZCI is a secured loan facility with an interest rate of 9.0%, repayable on March 31st 2013. Interest will be accrued and interest payments deferred until March 31st 2013. The terms and conditions of the Facility are on substantially similar terms to the previous term loans from ZCI.

USD 1 million will be invested in increasing the trucking of ore from the nearby Thakadu deposit to the Mowana facilities, USD 2 million will be invested in a Larox Filter to be installed at Mowana to reduce moisture content in exported concentrate and USD 2 million of the Facility will be used for general working capital purposes. Mining and processing at Mowana are making positive progress toward reaching commercial production levels and earning positive monthly cashflow. Both the Larox Filter and the increased Thakadu trucking campaign are key initiatives in the plan to become cash positive.

As ZCI owns 84.19% of African Copper's total issued ordinary share capital at the date of this announcement and is providing financing to the Company, the ZCI Loan falls within the definition of a related party transaction under Rule 13 of the AIM Rules for Companies. The independent directors of the Company consider, having consulted with nominated adviser Canaccord Genuity Limited, that the terms of the transactions are fair and reasonable insofar as its shareholders are concerned.