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

14 March 2014

BAOBAB RESOURCES PLC

EXERCISE OF THIRD TRANCHE OPTIONS FOR £3,125,000

Baobab Resources plc ('Baobab' or the 'Company'), the pig iron and vanadium developer with a portfolio of mineral projects in Mozambique, is pleased to report that further to the announcement which was made on 10 December 2013, Redbird Investments Ltd. ('Redbird'), a fully owned investment vehicle of African Minerals Exploration & Development Fund SICAR SCA ('the Fund') has exercised 27,000,000 options over the Company's Ordinary Shares ("Ordinary Shares") at an exercise price equal to the volume weighted average price ("VWAP") over the 5 trading days preceding the 6th of March
2014 of 11.023 pence per share plus a premium of 5%. The exercise price of 11.574 pence will result in proceeds to the
Company amounting to £3,125,061.14. After exercising these options the Fund's total investment in the Company has increased to approximately £12 million.
The net funds received from Redbird will be used to continue funding the Company's Definitive Feasibility Study work programme which is on schedule for completion towards the end of 2014.
Application will be made to the London Stock Exchange for the 27,000,000 new Ordinary Shares to be admitted to trading on AIM and it is expected that Admission will become effective and trading will commence on 18 March 2014. 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 342,338,426 Ordinary Shares and Redbird will hold 121,193,158
Ordinary Shares representing 35.4% of the Company's total voting rights.
Commenting today, Jeremy Dowler, Baobab's Chairman, said "The funds raised through this exercise of options, at a premium to the current share price, will assist greatly towards the finalisation of the Definitive Feasibility Study. We are fortunate in having continued support from both Redbird and the IFC".
CONTACT DETAILS

Baobab Resources PLC

Ben James: Managing Director Tel: +258 21 415200

Frank Eagar: CFO Tel: +258 21 415200

Jeremy Dowler: Chairman Tel: +44 1372 450529

Grant Thornton UK LLP

Philip Secrett/David Hignell/Jamie Barklem Tel: +44 20 7383 5100

Shore Capital Group

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

Fortbridge Consulting

Matt Beale Tel: +44 7966 389 196

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