African Consolidated Resources plc / Ticker: AFCR / Index: AIM / Sector: Mining 4 December 2012 African Consolidated Resources plc (ACR or the Company) Preliminary Economic Assessment African Consolidated Resources plc, the AIM listed resource and development company focused on Southern Africa, announces further information following its announcement on the 14 November 2012.

The Company has completed a Preliminary Economic Assessment (PEA) on what was referred to as Pit 2 of the Pickstone Gold project in the earlier announcement.

The Company retained an established Johannesburg based mining consultancy, PDNA Minxcon, to undertake this study being the first component of the feasibility study commissioned at the beginning of October 2012.

The study focused solely on an open-pit operation on the Pickstone sheer zone and has considered neither the Pickstone underground nor the Peerless sheer zone open-pit and/or underground potential. The PEA confirms early indications of a high grade open pit able to produce at a rate of 50, 000 tonnes per month (ktpm) and a mined grade of 4.6 grams per tonne (g/t) by applying a mining cut-off of 2.0 g/t derived from a resource grade of 5.1 g/t.

At this cut-off grade the open pit will produce an estimated 720,000 gold ounces over a life of mine of 10 years.

Applying a 1.0 g/t cut-off at the same production rate, the open pit will yield 850,000 gold ounces for a life of mine of 16 years. The project will require an estimated investment in the order of US$60 million which in turn will yield an NPV10% (Net Present value at 10% discount rate) of approximately US$300 million (IRR 128%) and a payback anticipated within 18 months applying a 2.0 g/t cut-off.

The gold price assumed is US$/oz 1,500 whilst an estimated operating cost of approximately US$/oz.

450 is applied. The PEA considered 26 scaled options ranging from 25ktpm to 100ktpm production.

This options analysis has provided management an early perspective on the scalability of the operation with a view to maximising shareholders returns.

The 50ktpm option has been selected at this time on the basis of its operating sustainability and capital efficiency. This PEA is considered to have a confidence level of (+/-) 30%.

The Company is continuing the feasibility study and is targeting completion in Q2 2013.

The full PEA document can be viewed on the Companys website at www.acrplc.com. This announcement has been reviewed by Mike Kellow BSc, a member of the Australian Institute of Geologists and Technical Director of ACR.

Mr Kellow meets the definition of a "qualified person" as defined in the AIM Note for Mining, Oil and Gas Companies. The technical economic evaluation presented in the study is not based on any JORC compliant Mineral Resource classification and should be considered preliminary in nature.

There is no certainty that the economic forecast will be realised.

Capital and operating costs are also preliminary in nature and may vary once further metallurgical test-work is undertaken and quotations from suppliers are received.
**ENDS** For further information visit www.acrplc.com or please contact: Roy Tucker African Consolidated Resources plc +44 (0) 1622 816918 +44 (0) 7920 189012 Andrew Godber Panmure Gordon (UK) Limited +44 (0) 207 886 2500 Callum Stewart Panmure Gordon (UK) Limited +44 (0) 207 886 2500 Susie Geliher St Brides Media & Finance Ltd +44 (0) 20 7236 1177 GLOSSARY OF TECHNICAL TERMS Term Explanation Acronym archean
One of the four principal eons of Earth history.

The oldest rock formations exposed on the surface of the Earth are Archean (2500-2800 million years) or slightly older and surviving rocks from this eon are mostly metamorphic or igneous.
Au chemical symbol for gold
CAPEX
capital expenditure
core
cylindrical sample of rock as cut by a diamond drill
diamond drilling
Drilling method using a diamond-impregnated cutting bit to obtain a core sample of rock
greenstone belt belts of metamorphosed sedimentary and igneous rocks of Archean age
JORC Joint Ore Reserves Committee of the Australasian Institute of Mining and Metallurgy
lodes
Higher grade portion of mineralised zones, usually with specific orientation
mineralised zones
hydrothermally altered structural features containing potentially valuable minerals
orebody
economically viable portion of a mineralised zone
Resource
mineral resource as defined by the JORC Code 2004
reverse circulation drilling
rotary percussion drilling whereby the sample is returned from the cutting head inside the rod string to surface thereby avoiding contamination from the walls of the hole RC
strip ratio
ratio between the volume of total waste material and the volume of gold bearing ore
sulphide
sulphur bearing metallic mineral
tenement
an area encompassing a number of blocks of claims
UNITS
cm.g/t
centimetre grams per tonne - metal content expressed as grade times thickness
g
gramme
g/t
grammes per metric tonne - metal concentration
ha
hectare
kg
kilogramme, a thousand grammes
km
kilometre
koz
thousand ounces
kt
thousand metric tonnes
kv
thousand volt
kva
thousand volt amperes
m
metre
mm
millimetre
�m
micron, or millionth of a metre
Mt
million metric tonnes
Moz
million ounces
oz
fine troy ounce equaling 31.1048 grammes - normal unit used in selling gold
ppb
parts per billion
ppm
parts per million, equivalent to g/t
t
metric tonne
t/m3
density measured as metric tonnes per cubic metre
troz
troy ounce
�
degrees
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