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Central African Mining and Exploration Company Plc ('CAMEC' or 'the Company')

CFM/ Index: AIM/ Sector: Mining & Exploration

4 September 2009

Central African Mining & Exploration Company Plc

Completes Acquisitions of South African Fluorspar Projects

Central African Mining and Exploration Company Plc, the Africa-focused emerging mining company, is pleased to announce that it has finalised the acquisition of 51% of the shares in SA Fluorite (Proprietary) Limited ('SA Fluorite') following positive results from a recent scoping study and has acquired a 74% interest in Southern Palace Investments 398 (Proprietary) Limited ('Southern Palace').

The acquisition of the interest in SA Fluorite, which was originally announced in April 2006, is for a total consideration of US$5.2 million. Approximately half of the consideration was paid in cash in 2006 and the balance is now to be satisfied by the issue of 12,602,880 new ordinary shares in CAMEC and by the payment of US$250,000 in cash.

The SA Fluorite transaction provides the Company with 51% control of the Doornhoek Fluorspar Project ('Doornhoek'), which comprises the Doornhoek property and an additional five other farms in the immediate vicinity. Positive results from a recently completed revised scoping study doubled the SAMREC compliant indicated and inferred resource from a previous exercise at Doornhoek to circa 30 million tonnes at 20% CaF2. Doornhoek is believed to be one of the world's largest fluorspar deposits, with potential to contain in excess of 50 million tonnes of CaF2 at similar grades to those in the scoping study. This potential was identified by historical drilling, and remains to be classified under modern reporting codes. The underground orebody has grades more than double that of the adjoining Sallies Witkop Mine and resources sufficient to justify an initial life of mine in excess of 20 years. Importantly, the project is expected to fall within the lower quartile of production costs giving it the ability to withstand fluctuations in market conditions.

The consideration for the acquisition of the interest in Southern Palace is US$ 7 million which is to be satisfied by the issue of 36,008,230 new ordinary shares in CAMEC.

This acquisition provides the Company with control of additional prospecting rights for fluorspar resources on three properties; Rhenosterfontein 304JP, Strydfontein 326 JP and Witrand 325 JP, which are immediately contiguous with those of Doornhoek. The Board of CAMEC believes that these properties have the potential to provide significant shallow resources amenable to open pit mining methods. Historic drilling programmes have completed over 800 boreholes across the three properties and the immediate surrounding area and the Company now intends to initiate further drilling and analysis to verify and define a resource statement compliant with the modern SAMREC code. 

Application has been made for the aggregate of 48,611,110 new ordinary shares in CAMEC to be admitted to AIM and admission is expected to occur on 9 September 2009.

Potential offeror consent has been obtained for the two transactions referred to in this announcement for the purposes of Rule 21.1 of the City Code on Takeovers and Mergers.

**ENDS**

For further information please visit www.camec-plc.com or contact:

Andrew Groves	CAMEC Plc	Tel: 0845 108 6060
Jeremy Gray	CAMEC Plc	Tel: 020 3205 1469
Jonathan Wright	Seymour Pierce Ltd	Tel: 020 7107 8000
Ben Brewerton	Financial Dynamics	Tel: 020 7831 3113

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