Positive Indications of Gold Mineralization in ASCOM’s Ethiopian Concession

ASCOM Precious Metals Mining (APM) announces encouraging indications of gold mineralization from its initial 17 drill holes at the Asosa Concession in Western Ethiopia

ASEC Company for Mining — ASCOM (ASCM.CA on the Egyptian Stock Exchange), Citadel Capital’s Platform Company in the regional mining industry, announced that subsidiary ASCOM Precious Metals Mining (APM) has received encouraging indications of gold mineralization in the company’s Asosa Concession in Western Ethiopia.

“This is a major milestone for ASCOM. Two years into our Ethiopian gold exploration activities in the West, we are pleased to announce that the first 17 drill holes produced some strong results at Dish Mountain,” said ASCOM Precious Metals Mining CEO Kenneth Crichton. “The results of these initial holes have thus far identified at least three potential areas of gold mineralization along a 1.6-kilometer mineralized zone. However, the mineralized zone requires considerably more drilling to determine its economic potential. This will be confirmed by a bankable feasibility study in the future.”

Highlights of the Phase 1 drilling program and a table of significant intercepts follow in Appendix.

These early results have confirmed that initial exploration activities that began in 2009-2010 justified a first-phase, 10,000-meter drilling program that commenced in January 2011. The drilling is targeting two prospective areas: Dish Mountain for gold and Abetselo for gold and base metals. Samples from the drill holes at Dish Mountain and Abetselo have thus far been sent to South Africa’s ALS Chemex Laboratory, an internationally accredited testing facility.

APM expects to receive the remainder of the drill hole results from Dish Mountain and Abetslo within the coming two months, at which time ASCOM will make full disclosure on the details of the gold discovery. A second phase of drilling is planned to commence in May, running through June when the wet season begins. Depending on continuing exploration success, a third phase is planned to start immediately after the wet season in August 2011 through June 2012.

The positive news about Ethiopia comes on the heels of APM’s acquisition of precious metals exploration rights on a 3,000-square-kilometer concession in Sudan’s Blue Nile State. The company’s Ethiopian and Sudanese concessions are both located within the Arabian-Nubian Shield, an under-explored area that is quickly proving itself to be highly prospective for gold and base metals.

APM has promising early results in Sudan, where preliminary remote sensing satellite investigations have been completed and numerous exploration targets have been identified. Exploration in the field has commenced with a soil geochemistry program to begin to rapidly evaluate the prospectivity of these areas as potential drilling targets by 2012.

“These are promising early results,” noted Citadel Capital Managing Director Alaa El-Afifi. “We look forward to ASCOM’s receipt of further drill-hole results from Dish Mountain and Abetslo as well as to the start of the second phase of drilling.”

Citadel Capital holds a 39.22% stake in ASCOM.

APM, which is 99.9% owned by ASCOM, was established in early 2009 as part of ASCOM’s strategy to consolidate its precious metal exploration and production operations. ASCOM hired Crichton, an industry veteran with experience in both Western markets and developing economies, as CEO to spearhead the expansion of the new portfolio company.

—Ends—

Citadel Capital (CCAP.CA on the Egyptian Stock Exchange) is the leading private equity in the Middle East and Africa. Citadel Capital focuses on building regional platforms in select industries through acquisitions, turnarounds, and greenfields executed via Opportunity Specific Funds. Citadel Capital’s 19 OSFs now control Platform Companies with investments worth more than US$ 8.6 billion in 14 countries spanning 15 industries, including mining, cement, transportation, food and energy. Since 2004, the firm has generated more than US$ 2.5 billion in cash returns to its co-investors and shareholders (on investments of US$ 650 million), more than any other private equity firm in the region. Citadel Capital is the largest private equity firm in Africa by PE assets under management (2004-2010, as ranked by Private Equity International). For more information, please visit www.citadelcapital.com.

Asec Company for Mining – ASCOM S.A.E is a regional geological and mining services company that specializes in geological investigations and the management of quarry operations for the cement industry. ASCOM has also expanded into manufacturing of industrial minerals, including calcium carbonate as well as insulation materials (rock wool and glass wool). In addition, ASCOM focuses on exploration for precious metals, with a primary focus on gold. ASCOM has operations spanning from Egypt to Ethiopia, Syria, the United Arab Emirates, Algeria and Sudan. In addition to mining for precious metals, the company currently produces over 50 million tons of raw material each year, providing 65% of all raw material consumed annually by the Egyptian cement industry.

For more information, please contact:

Ms. Ghada Hammouda
Head of Corporate Communications
Citadel Capital (S.A.E.)
g...@qalaaholdings.com (click to reveal this email)
Tel: +20 2 2791-4440 • Fax: +20 22 791-4448
Mobile: +20 16 662-0002

Appendix

Highlights
  • An initial Phase 1 drilling program of 78 reverse circulation (RC) drill holes has been completed.
  • Preliminary gold assay results from this drilling have confirmed that significant near-surface gold mineralization appears present at Dish Mountain
  • The currently identified mineralized envelope at Dish Mountain (DM) consists of multiple mineralized gold zones over 1.6km strike length, and with potential to extend to the north, south and deeper than current drilling
  • Significant intercepts of gold mineralization for the first 17 RC holes and surface trenching are:
    RC drilling- DMRC001: 46m @ 1.64 g/t Au
    including: 10m @ 5.38 g/t Au
    - DMRC005: 37m @ 2.67 g/t Au
    including: 15m @ 5.17 g/t Au
    - DMRC006: 9m @ 1.91g/t Au
    - DMRC008: 12m @ 2.46g/t Au
    - DMRC008: 10m @ 1.88g/t Au
    NOTE: DMR# =RC drill hole identification number. It should be noted that a drill hole typically contains different lengths of varying gold content. When a continuous intersection is identified with varying gold content throughout, a weighted average of all the different gold content intercepts is calculated.
    Surface Trenching:- DMTR001: 34m @ 3.12 g/t Au
    including: 14m @ 5.54 g/t Au
    - DMTR002: 17m @ 3.03 g/t Au
    - DMTR002: 34m @ 2.07 g/t Au
    including: 21m @ 2.54 g/t Au
    - DMTR004: 18m @ 2.58 g/t Au
    NOTE: DMT# =Trench identification number. Again as above, where surface trenching has revealed continuous lengths of gold in soil, a weighted average is used to calculate the overall gold content.
  • Drilling has commenced at Abetselo with 26 holes; visual observations confirm a wide massive sulphide zone. Assay results are pending.

Significant Intercepts Table

Hole ID From

(m)

To

(m)

Interval

(m)

Au

(g/t)

RC DRILLING:        
DMRC001 7 53 46 1.64
including: 7 13 6 1.48
and: 25 35 10 5.38
  65 73 8 1.39
DMRC002 10 12 2 1.55
  34 37 3 3.01
  54 56 2 1.40
DMRC003 4 6 2 0.98
  52 56 4 1.40
  68 74 6 1.51
DMRC004 27 30 3 2.15
DMRC005 0 37 37 2.67
including: 6 21 15 5.17
DMRC006 4 8 5 1.59
  16 25 9 1.91
  31 33 2 1.37
DMRC007 59 63 4 1.02
DMRC008 21 33 12 2.46
  87 97 10 1.88
DMRC009 4 8 4 0.78
  25 27 2 7.36
DMRC010 0 7 7 1.26
DMRC011 5 7 2 1.84
  45 47 2 5.18
DMRC012 0 3 3 1.03
DMRC013 40 43 3 1.62
DMRC014 0 2 2 1.36
DMRC015 4 7 3 1.08
  12 15 3 2.82
  62 74 12 0.70
DMRC016 19 21 2 2.71
  27 29 2 0.92
  38 42 4 0.65
DMRC017 13 35 22 2.07
including: 24 34 10 3.69
  64 72 8 1.07
TRENCHING:        
DMTR001 18 52 34 3.12
including: 37 51 14 5.54
  87 131 39 1.32
including: 89 97 (1 )6 1.96
and: 102 106 4 3.54
DMTR002 70 87 17 3.03
  150 184 34 2.07
including: 155 176 21 2.54
and: 181 184 3 4.57
  271 285 14 2.29
including: 276 281 5 3.48
  321 326 5 4.16
DMTR003 28 33 5 2.92
  147 150 3 0.86
DMTR004 7 15 8 0.62
  112 115 3 1.11
  241 259 18 2.58
including: 244 251 7 3.33
and: 253 259 6 3.13
DMTR005 3 13 10 0.58
  87 93 6 1.37
DMTR006 31 40 9 0.62
  57 60 3 0.92
  124 155 20 0.46
  184 190 6 0.49
DMTR008 237 238 1 1.21
DMTR014 84 87 3 0.66
  113 116 3 1.33
  131 135 4 3.49
DMTR015 4 10 6 0.60
  34 39 5 0.54
  97 104 7 0.56
DMTR016 0 4 4 1.24
  150 153 3 1.33
DMTR017 381 384 3 0.45
DMTR018 69 105 36 0.20