Afarak Group Plc - Other information disclosed according to the rules of the Exchange

ADDITIONAL INFORMATION RELATED TO QUARTERLY REPORT

15:00 London, 17:00 Helsinki, 17 May 2017 - Afarak Group Plc ("Afarak" or "the
Company") (LSE: AFRK, NASDAQ: AFAGR)


               ADDITIONAL INFORMATION RELATED TO QUARTERLY REPORT

The  company wishes to make available to all shareholders certain clarifications
discussed  and/or  requested  during  the  investor  call, relating to the first
quarter  results (published  on May  12, 2017) and with  respect to: 1) currency
movements  that  were  being  accounted  for  in  equity and moved to the income
statement; and, 2) tax charge.

1.   Currency movements
The  Company  is  simplifying  and  improving  its  corporate structures and its
balance  sheet  making  it  also  more  transparent  in  order to pursue further
investments  in the development  of its mining  operations in South Africa. This
restructuring  included the repayment  of the internal  loans originated back in
2010 and  2011, with  the  foreign  exchange  difference  arising  from the time
differences  in South African  rand against hard  currencies, calculated between
the  origination  and  repayment  dates.  This  cumulative  unrealised  exchange
difference   has   been   recorded  in  the  "Other  Comprehensive  Income"  and
"Translation  reserve" in equity. Following  IFRS, when realised the accumulated
exchange  loss of EUR 3.2 million is recognised as a finance cost in the "Income
Statement",  and  the  corresponding  offsetting  reduction  in the "Translation
Reserve"  is recognised within  the change in  the Translation Reserve in "Other
Comprehensive  Income".  This  realised  exchange  difference and the offsetting
positive  movement  in  the  Translation  difference,  has  no net impact on the
shareholders  equity and, as a result, the Group's total comprehensive income is
EUR 8.3 million.

2.   Tax charge
The  reported tax charge of EUR 2.7 million  during the first quarter was higher
than  usual on the back of the significantly improved result achieved during the
period.  The tax charge also included a  one-off write-off of deferred tax asset
amounting  to EUR 1.1 million  on foreign exchange  difference on the historical
intragroup  loans  that  are  unlikely  to  be  utilised  in the taxation of the
relevant  subsidiary in the  short to medium  term. The effective  tax rate when
excluding  the write-off was  23.2%. The reported tax  charge is provisional for
the   period   and   will   fluctuate  going  forward,  depending  on  Company's
profitability in the coming quarters.


The  necessary charges and currency movements, due to compliance with IFRS, have
also  not  influenced  the  proposed  capital  redemption  of EUR 0.02, which is
reflective  of strong operating cash flows, rather than the declared bottom line
profit figure, affected by these book entries.

Further the Company wishes to inform that the Capital redemption proposed to the
AGM will be paid, if accepted, on 9 June and not on 10 June as previously
communicated.



Guy Konsbruck
CEO
Afarak Group plc
www.afarak.com

For additional information, please contact:

Guy Konsbruck, CEO, +356 2122 1566, guy.konsbruck@afarak.com
Predrag Kovacevic, CFO, +356 2122 1566, pedja.kovacevic@afarak.com
Melvin Grima, Finance Director, +356 2122 1566, melvin.grima@afarak.com
Jean Paul Fabri, PR Manager, +356 2122 1566, jp.fabri@afarak.com

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