Hi there Please find below a note by Ambrian relating to African Consolidated Resources plcs announcement which went out this morning.

ACR has signed a Joint Venture agreement with Rare Earth International Ltd to explore for rare earth minerals at ACRs 720sq km Nkombwa Hill project in Zambia.

Additionally, ACR in the process of defining a phosphate resource at the project before the end of 2010.

ACR believes the demand in southern Africa for phosphate fertilisers for food and biofuel production will create strong markets for rock phosphate concentrates. I have also included the release below the note. Many thanks Elisabeth
Elisabeth Cowell St Brides Media & Finance Ltd Chaucer House 38 Bow Lane London EC4M 9AY T: +44 (0) 207 236 1177 | M: +44 (0) 7769 658 654 | F: +44 (0) 207 236 1188 | www.sbmf.co.uk
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Metals & Mining
11 June 2010
African Consolidated Resources: New Rare-Earth Phosphate Project - diversifies outside of Zimbabwe; Speculative BUY ________________________________ African Consolidated Resources (AFCR LN) Price: 8.75 Target Price: n/a Recommendation: Speculative BUY Market Cap: �31.3m
New Rare-Earth Phosphate Project - diversifies outside of Zimbabwe African Consolidated Resources announces that it has acquired the Nkombwa Hill phosphate project in Zambia.

The company will now initiate an in-house programme targeting a phosphate resource, and has also formed a JV with Australian company Rare Earth International (REI) to explore the project for rare earth elements (REE). The project centres of a carbonatite intrusion, and historic work has defined a resource of 200Mt @ 4.6% P2O5.

Historically presence of a high-magnesium mineral that responds poorly to flotation has deterred miners, but the company believes that more modern techniques will overcome this issue.

Under the REE JV, REI has 90 days to commit to a 30% earn-in through spend of US$0.75m over two years for a JORC resource, followed by US$0.6m over 18 months to earn in to 50% through delineation of an indicated resource.

African Consolidated can then co-fund to stay at 50%, or allow REI to earn in to up to 75% through completion of a BFS. Comment Todays move is a savvy one from African Consolidated for three reasons; (1) it diversifies the company out of Zimbabwe while retaining a focus on acquisition and development of exploration projects, (2) it focuses on phosphate, a commodity that is readily developable, the company has experience in, and for which there is a ready appetite in Africa for fertilizers, and (3) a JV has been formed to bring in experts in the more lucrative, but trickier to process, REEs. There is currently a significant focus on REE following recent moves by China, the worlds largest supplier or REE, to restrict exports.

This has led to companies like Lynas Corporation (LYC AU Equity) to refocus on development on long-dormant projects - Lynas is developing the Mt Weld carbonatite in Australia and currently has a market cap of A$827m. Recommendation We retain our Speculative BUY recommendation.

Upcoming news flow on phosphates will be the commitment of REI to the Nkombwa Hill project, as well as a JORC resource by year end on African Consolidateds other phosphate project, Chishanya Hill in Zimbabwe (pending successful metallurgical tests underway currently).
Brock Salier, +44 (0)20 7634 4765
Ambrian acts as Nomad and Broker to and as a Market Maker in this company ________________________________ African Consolidated Resources plc / Ticker: AFCR / Index: AIM / Sector: Mining 11 June 2010 African Consolidated Resources plc (ACR or the Company) Nkombwa Hill Rare Earths and Phosphate Project, Zambia ACR, the AIM listed resource development company, is pleased to provide the following update in respect of its recently acquired Nkombwa Hill project in Zambia (the Project) including the signing of a joint venture agreement for the exploration of the Project for rare earth minerals and the commencement of an in-house work programme with the aim of defining a phosphate resource. The Nkombwa Hill project lies in North Eastern Zambia, 23km east of the Lusaka-Tanzania bitumen highway near the town of Isoka, within ACRs 720 sq km Large Scale Prospecting Licence No 12198-HQ-LPL which was granted on 16 January 2010.

This licence covers Proterozoic metasediments and basement gneisses, intruded by the Nkombwa Hill carbonatite and at least six of the Isoka swarm of kimberlite pipes, explored by De Beers in 1959-1973.

The Carbonatite has historically been explored for phosphate, rare earths, and niobium. The Project complements ACRs Chishanya Hill phosphate project in Zimbabwe, where considerable expertise has already been developed, investigating the geology and metallurgy of a similar carbonatite intrusion.

ACR believes the demand in southern Africa for phosphate fertilisers for food and biofuel production will create strong markets for rock phosphate concentrates. RARE EARTH MINERALS JOINT VENTURE AGREEMENT ACR is pleased to announce that it has signed a joint venture heads of agreement (Joint Venture Agreement) with Australian-based private exploration company, Rare Earth International Ltd (REI), to explore the Project specifically for Rare Earth minerals. The Joint Venture Agreement will enable REI, in conjunction with ACR, to explore for rare earth minerals, drawing upon the specialist exploration skills of the REI management.

REI CEO Dr.

Jock Harmer and consultant Dr.

Paul Nex, both have world class academic and commercial experience in carbonatite hosted rare earth Nkombwa mineralisation. Pursuant to the Joint Venture Agreement, REI has been granted a period of 90 days in which to complete its due diligence of the Project after which it will then have a binding, exclusive right to explore the Project for Rare Earth minerals.

In Stage 1 of the agreement REI must spend a minimum of $750,000 over two years to define an initial Inferred Resource (to the Australian JORC standard) at which point they will earn 30% equity in the Project.

A further Stage 2 expenditure of $600,000 over 18 months and the definition of an Indicated JORC Resource will increase REIs equity interest in the Project to 50%. Upon receipt of a Phase 2 Completion Notice, ACR may elect to co-fund Phase 3 (completion of pre-feasibility) and Phase 4 (bankable feasibility) with REI so that each party maintains a 50% interest in the Project.

If ACR does not elect to co-fund after Phase 2 then after Stage 3 and Stage 4, REI will earn 65% and 75% respectively if they continue with sole funding. PHOSPHATE AND NIOBIUM POTENTIAL ACR retains 100% rights for minerals other than Rare Earths at Nkombwa Hill.

The potential phosphate resource at Nkombwa adds a second important asset in addition to ACRs Chishanya Hill phosphate deposit in Zimbabwe, where ACR is seeking to define a maiden JORC resource before the end of 2010. Previous explorers for phosphate including Chartered Exploration Ltd, Roan Selection Trust Ltd, Mindeco Ltd, Zimco Ltd and the Food and Agriculture Organisation (FAO) have variously estimated Non-JORC/NI43-101/SAMREC reserves of the Nkombwa phosphate-bearing rocks at more than 200 million tonnes with a grade of 4.6% P2O5, however the depth extent and calculation methods of this estimate is not known (Van Straten P.

H.

2002.

Rocks for Crops). Much of the phosphate is contained in a rare mineral Isokite, a Ca-Mg Phosphate, which in past metallurgical studies (to 1991) was not easy to concentrate by conventional flotation processes due to the Magnesium content.

Modern flotation chemistry however may be able to solve the processing difficulties and ACR will investigate this opportunity. Niobium occurs widely disseminated in the carbonate as the mineral pyrochlore, (NaCa)2Nb2O6, at a "fairly constant" grade of 0.16% Nb205 (Chartered Exploration Ltd 1953-63), with individual samples reported over 1% Nb205.

It may be possible to float off the pyrochlore as a by-product in a phosphate flotation circuit. Proposed Work Programme Data compilation of a large volume of historical reports is nearly complete, and field visits are scheduled for June-July, ahead of extensive mapping and geochemical sampling programmes.

Drilling and metallurgical-extraction studies will be required to assess the resources at depth once technical and environmental planning is completed. FURTHER INFORMATION Rare Earth Mineralisation at Nkombwa Hill Rare Earth elements (REEs) comprise the family of Lanthanides on the periodic table of elements, and are separated into light rare earths - Lanthanum La), Cerium (Ce), Praseodymium (Pr), Neodymium (Nd), and Samarium (Sm) - and the less common heavy rare earths such as Yttrium, Europium, Terbium and Gadolinium. The major REE-bearing minerals at Nkombwa Hill belong to the light REE group, and are bastn�site, monazite and pyrochlore with minor daqingshanite-(Ce), rare-earth bearing isokite, strontian apatite, strontianite and other rare earth carbonates.

REEs reported from the carbonatite by Roan Selection Trust, Leeds University and others include Cerium, Lanthanum, Neodymium, Praseodymium and Gadolinium. Within the carbonatite complex, bastn�site - (Ce,La)CO3F, has been identified as an abundant mineral in xenoliths hosted by late-stage ferrocarbonatite sills and dykes (Touret, Leeds University, 1991).

Bastn�site-(Ce) occurs as fibrous yellow crystals, about 1 �m in size, replacing monazite and in association with baryte, in a matrix of dolomite.

In common with bastn�site-(Ce) from other locations, the bastn�site-(Ce) of Nkombwa Hill contains up to 70% light rare-earth oxides.

However, Nkombwa Hill bastn�site-(Ce) is relatively deficient in La and enriched in Pr and Nd. Cerium oxide assay results ranging from 0.78 to 9.28% CeO2 were recorded from five samples of drill core obtained by Roan Selection Trust Ltd in 1968-69.

Individual rock chip samples from various workers in the 1980s yielded 2.5% Ce, 3.3% La and 0.6% Nd; 7.1% Ce, 7.2% La and 1.1% Nd and 5.6% Ce, 5.5% La and 2.3% Nd. REE uses and markets Light rare earth elements are essential components of fuel refinery catalysts, catalytic converters, fuel cell alloys, batteries, high quality optical glass, fluorescent lights and TV screens, and high strength alloys for aircraft engines and lighter cars.

Neodymium and Samarium permanent magnets have wide applications in the aerospace industry, cellphones, CDs, computers and sound systems where miniaturization of components is a key feature.

Emerging green technologies such as wind turbines, hybrid vehicles and fuel cells all require rare earth magnets, catalysts and specialized REE alloys. China controls approximately 97% of the worlds rare earth element market and 57% of current known Reserves.

A March 2010 report by the Institute for the Analysis of Global Security (a Washington based think-tank), predicts Chinese domestic demand will absorb almost 100% of Chinas REE production by 2012, and increasing government control and restrictive export quotas are already in place.

The study predicts global demand to reach 200,000 tonnes of rare earth elements a year in 2014, up from about 150,000t in 2010, leading to a 40,000t annual shortfall by 2015.

Current world production is dominated by the giant Bayan Obo mine in Inner Mongolia and will remain so even after production ramps up from Mountain Pass (California), Mt Weld (Australia), Thor Lake and Hoidas Lake (Canada) and Steenkampskraal in South Africa, between 2010 and 2013. By 2014 the two largest and most advanced projects outside China, Mountain Pass and Mt Weld, will each only be contributing about 20,000t or 10% of the estimated demand.

Mt Weld owner Lynas Corp.

Ltd estimates 2010 supply of La, Ce, Pr and Nd is already falling behind demand by 27%, 15%, 29% and 10% respectively. **ENDS** For further information visit www.acrplc.com or please contact: Andrew Cranswick African Consolidated Resources plc +44 7920 189010 Roy Tucker African Consolidated Resources plc +44 1622 816918 +44 7920 189012
Richard Greenfield Ambrian Partners Limited +44 20 7634 4700
Hugo de Salis St Brides Media & Finance Ltd +44 (0) 20 7236 1177 Susie Callear St Brides Media & Finance Ltd +44 (0) 20 7236 1177
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.