Obtala Resources : Operational Update

RNS Number : 3340O

Obtala Resources Limited

27 May 2015

27 May 2015

Obtala Resources Limited

('Obtala' or the 'Company')

(AIM: OBT)

Operational Update

Obtala Resources Limited (AIM:OBT), the vertically integrated agri-processing, farming, timber and retail company, is pleased to provide the following update and notice of Director changes.

Highlights:

• Julie Dedman engaged as an agribusiness consultant and strategic partner

• Fresh product sales demand growing in Tanzania

• Food & safety certification expected on the Tanzania farm in June

The Company is pleased to announce that, following a site visit to Tanzania, it has engaged the services of Julie Dedman and her team of food experts as a consultant and strategic partner to provide services for the facilitation of the route to market for various food products. The expertise and experience which Julie and her team brings will fast-track our certification process and quality of production leading to a more sustainable and higher level of route to market.

Julie Dedman started her entrepreneurial career in 1984 when she formed her own business, West Riding Laboratory Services with a grant of £1,000 from The Prince's Trust Youth Business Initiative. Fourteen years later, West Riding Milk Testing analysed two-thirds of the UK's milk. Julie now runs nine multi-million pound companies in a variety of sectors ranging from food manufacturing - which includes supplying sandwiches and snack foods to businesses producing airline meals and Halal meals for hospitals - to clean air facilities, facilities management and the manufacturing of surgical ophthalmology instruments for some of the leading eye hospitals and clinics across the world. Julie gives a lot of her time and money back to the trust, most recently setting up the Julie Dedman Enterprise Fund to support young women in Yorkshire and the Humber into business.

The agribusiness centred in Morogoro, Tanzania continues the process of attaining food and safety certification for the farm and drying unit. The final audit inspection by the independent consultants is expected in early June. While the audit and certification process continues the Company has been developing the fresh fruit and vegetable business opportunity with the sales of over 16 varieties of product commencing locally in Tanzania. The Company is currently supplying three companies in Dar es Salaam, first of all Food Lovers Market. Food, which is a large South African operator with more than 100 Fruit & Veg City stores throughout Southern Africa, and as far afield as Australia. The target objective is to supply +200 tonnes of fresh produce per month into Dar es Salaam, which is listed as Africa's fast growing city by the African Development Bank. The sales revenue generated will significantly reduce the overall operating cost for the dried fruit operation which will re-commence once certification is awarded.

With the full support of Obtala's Board of Directors, Stephen Murphy has stepped down from it to concentrate on African Home Stores (AHS) and its subsidiaries including Life Comfort Solutions (LCS) as Interim Managing Director of AHS, bringing his retail expertise in Ireland and the UK to the implementation of a strategic plan to restore profitability and improve the business model for its new regional store roll-out

Commenting on today's announcement, Francesco Scolaro, Chairman of Obtala, said: 'As a Board we are very pleased that following a successful site visit to the agribusiness in Tanzania, Julie has agreed to act as a consultant and strategic partner. Julie's vast expertise and experience will help fast-track our certification process and most importantly the quality of production leading to a more sustainable and higher levels of route to market. We will build our farm and production development plans around Julie's requirements, focusing on margin optimization and returns. I firmly believe that this relationship will rapidly deliver realizable benefits for all stakeholders as we build on the debt-free asset platform we have built thus far. In very much the same way Stephen Murphy will bring his retail experience to finishing the turnaround of LCS and drive its expansion.'

The company news service from the London Stock Exchange

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