Name and Location
Tschudi copper project, Namibia.

Client
Weatherly International.

Project Description
A bankable feasibility study (BFS) on the Tschudi project has indicated a robust project. Tschudi has mineral resources of 50.1-million tonnes at 0.86% copper and a reserve of 22.7-million tonnes at 0.95% copper.

The BFS envisages an openpit mine and an estimated mining rate of 17-million tonnes a year.

The ore will be processed using solvent extraction electrowinning at a rate of 2-million to 2.6-million tonnes a year of ore.

The mine is expected to produce 17 000 t/y over an 11-year mine life.

Net Present Value/Internal Rate of Return
Not stated.

Value
Initial capital required to develop the project is estimated at $81-million.

Duration
First copper production is expected to start in the second quarter of 2015.

Latest Developments
Weatherly announced in February this year that in accordance with market expectations, the first copper cathode was produced from the Tschudi project's electrowinning circuit on the sixteenth of the month.

However, while copper cathode has been produced in accordance with the project schedule, there are several operational and technical issues relating to initial recovery of copper from the heap-leach pads, which require the company to undertake further investigative work and the evaluation of these results. These are being assessed for their potential to affect the performance of the project.

The company is investigating these issues and will also be discussing them with Orion Mine Finance, its project lender, who has a secured loan for the Tschudi project.

Subject to the results of the investigative work, Weatherly will be defining a course of action, in conjunction with the company's project lender whose consent is required under the terms of the company's financing arrangement, and accordingly the company's current financial position is subject to significant uncertainty.

A further announcement is expected to be made in due course, but for the reasons stated the directors requested the suspension from trading of the shares on the AIM market, which was effective from 13:35 on  February16, 2015. The company's shares will remain suspended in the interim.

Key Contracts and Suppliers
Basil Read Namibia (mining operations); B & E International North (crushing, agglomeration and stacking contract) and Logiman (engineering, procurement and construction).

On Budget and on Time?
The project is ahead of schedule and within budget.

Contact Details for Project Information
Weatherly International, tel +44 207 917 2989, fax +44 207 439 0262 or email info@weatherlyplc.com.
Basil Read, tel +27 21 946 4664 or fax +27 21 946 4669.
B & E International North, tel +264 63 233 229.
Logiman, tel +27 11 011 9260 or email info@logiman.co.za.