BAOBAB RESOURCES PLC

£1,023,000 Drawdown on Equity Line
2 January 2013

Baobab Resources Plc ("Baobab" or the "Company") is pleased to announce that it has drawn down £1,023,000 of its £17 million Equity Line Facility ("ELF") with Dutchess Opportunity Cayman Fund Ltd ("Dutchess"), announced on 25 October 2010. The funds will be used to accelerate certain aspects of the Definitive Feasibility Study of the Company's flagship pig iron project at Tete and following this drawdown the outstanding balance of the ELF will be £13,825,800.
Under terms of the ELF, the Company has allotted, conditional on admission, 7,135,526 Ordinary Shares to Dutchess at a price of 15.25 pence per share (14.34 pence net of commission). This price is calculated by a formula under the terms of the ELF based on the prevailing market price between 7th December and 27th December 2012.
Application has been made to the London Stock Exchange for 7,135,526 shares to be admitted to AIM and it is expected that dealings will commence on 8th January 2013. These shares will rank pari passu in all respects with the existing issued Ordinary Shares in the Company. The total issued share capital of Baobab following this allotment will be 271,773,426 Ordinary Shares. The Company does not hold any Ordinary Shares in treasury so the total number of voting rights in the Company is 271,773,426.
Jeremy Dowler, Chairman, commented:
" Baobab is very pleased to announce this small but significant funding initiative which enables the Company to accelerate time critical components of the impending Definitive Feasibility Study and in particular seasonal baseline studies and metallurgical drilling. The additional capital will also enable the Company to move rapidly on any corporate opportunities that may arise.
The funding was completed at a pre-commission value of 15.25p which is substantially higher than Baobab's previous funding at 8p per share and leaves the Company with a significant cash balance at the start of 2013"
Download of this announcement will be available from the Baobab website at: www.baobabresources.com

CONTACT DETAILS

Baobab Resources PLC

Ben James: Managing Director Tel: +61 8 9430 7151

Jeremy Dowler: Chairman Tel: +44 1372 450529

Grant Thornton Corporate Finance

Gerry Beaney / David Hignell Tel: +44 20 7383 5100

Shore Capital

Jerry Keen / Toby Gibbs Tel: +44 20 7468 7964

Fortbridge Consulting

Matt Beale Tel: +44 7966 389 196

BAOBAB RESOURCES PLC

27/28 Eastcastle Street London W1W 8DH United Kingdom

BAOBAB MINING SERVICES Pty Ltd Unit 25 South Terrace Piazza Fremantle

Western Australia 6160

Australia

Post: PO Box 1229 Fremantle Western Australia 6959 Australia Tel: (+61) 8 9430 7151

Fax: (+61) 8 9430 7664

Web: www.baobabresources.com

AIM : BAO

AIM ANNOUNCEMENT | 3 DECEMBER 2012 Page 1 of 1

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