Afarak Group Plc - Company Announcement

AFARAK BOARD RESOLUTION ON DIRECTED SHARE ISSUE

12:00 London, 14:00 Helsinki, 10 July 2014 - Afarak Group Plc, Stock Exchange
Release


AFARAK BOARD RESOLUTION ON DIRECTED SHARE ISSUE

The  Board of  Afarak Group  Plc ("Afarak"  or the  "Company") (LSE:  AFRK, OMX:
AFAGR)  announces that it has, on  10 July 2014 resolved to offer 11,130,434 new
ordinary shares in the Company ("New Shares") to the vendors of Mogale Alloys (a
company   acquired in May 2009) under the  settlement agreement announced on 11
October  2012. A  maximum  of  3,478,261 shares  remain  to be offered under the
agreed settlement.

The New Shares represent approximately 4.48 per cent of the current issued share
capital  and  approximately  4.56 per  cent  of  the  total voting rights of the
Company  prior to the share  issue. The New Shares  are offered in derogation of
the  pre-emptive subscription  right of  shareholders and  Board approval of the
share  issue  is  pursuant  to  the  authorisation granted by the Annual General
Meeting  to the  Board of  Directors 8 May  2014. The subscription price will be
recognized under the invested unrestricted equity fund.

The  subscription period  for the  New Shares  commences on immediately and will
continue  until 17 July 2014. The New Shares  are expected to be registered with
the  Finnish Trade Register in  July 2014. Following registration an application
will  be made  to the  UK Listing  Authority and  the London  Stock Exchange for
admission  to (i)  the Official  List and  (ii) to  trading on  the London Stock
Exchange's and NASDAQ OMX Helsinki's markets. A further update will be issued in
due  course. The New Shares carry shareholder rights as of the registration date
with  the Finnish  Trade Register  and will  rank pari  passu with the Company's
existing issued ordinary shares.

Following  issue of the New Shares, the total  amount of shares in issue will be
increased  by 11,130,434 from  248,432,000 to 259,562,434 ordinary  shares of no
par value 4,244,627 ordinary shares are held in treasury.


AFARAK GROUP PLC
BOARD OF DIRECTORS


For additional information, please contact:

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

Investec Bank Plc
Jeremy Wrathall, +44 (0)20 7597 5970

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



[HUG#1820715]

Attachments:

Terms_and_Conditions.pdf