Afarak Group Plc - Company Announcement

NEW FERROALLOY REFINING AND GRANULATION PLANT IN OPERATION

07:30 London, 09:30 Helsinki, 17 December 2014 - Afarak Group Plc, Stock
Exchange Release

NEW FERROALLOY REFINING AND GRANULATION PLANT IN OPERATION

Further to the announcements of 12 August 2014 and 1 July 2013, Afarak Group Plc
("Afarak" or the "Company") (LSE: AFRK, OMX: AFAGR) is pleased to announce that
the Company's subsidiary Mogale Alloys (Pty) Ltd ("Mogale Alloys") has completed
the installation of ferroalloy refining and granulation plant and the plant is
in operation.

Significant  part of the current ferrochrome  production can now be converted to
granulated  medium carbon ferrochrome, a niche product, which affects positively
the  profitability of  Mogale Alloys  and moves  the Company further into mature
markets.  The Company has  already secured several  long term sales contracts of
the new specialty alloy material.

The total cost of the investment was approximately ZAR 185.1 million
(approximately EUR 12.9 million or GBP 10.3 million) and the monthly production
capacity of the plant is expected to be 1,500 tonnes of medium carbon
ferrochrome.

Visual material of the new plant can be found at
http://www.afarak.com/en/investors/media-bank/.


AFARAK GROUP PLC
Danko Koncar
CEO


For additional information, please contact:

Afarak Group Plc
Danko Koncar, CEO, +44 (0)20 7376 1175, danko.konchar@afarak.com

Afarak Group is a chrome mining and minerals producer focused on delivering
sustainable growth with a speciality alloys business in southern Europe and a
ferro alloys business in southern Africa. The Company is listed on NASDAQ OMX
Helsinki (AFAGR) and the Main Market of the London Stock Exchange (AFRK).
www.afarakgroup.com

Distribution:
NASDAQ OMX Helsinki
London Stock Exchange
main media
www.afarakgroup.com

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