PERTH, AUSTRALIA--(Marketwire - Oct 31, 2012) -


For immediate release 31 October 2012

Centamin plc ("Centamin" or "the Company")


Market update

The following market update and statement is made in light of the
comments made by an Egyptian administrative court yesterday, and
associated media reports, regarding Centamin and its wholly owned
subsidiary company Pharaoh Gold Mines (PGM).

As noted yesterday, a full written decision of the administrative court
has not yet been disclosed to Centamin, but will be delivered in due
course. Until that time it is difficult to know the precise scope of
the Court's decision, though it is understood that the Court is not
asserting that the Concession Agreement as a whole is invalid. Centamin
repeats its view that the Concession as law 222 of 1994 remains valid
and that the Court does not have jurisdiction to cancel it.

The Company is working in co-operation with the Egyptian Mineral
Resource Authority (EMRA) and the Ministry of Petroleum in taking
vigorous action to both defend its rights to continue to extract gold
from the Sukari mine in the short term and to challenge the written
decision should this be necessary. This includes lodging a notice
of"objection to enforcement", which has the effect of "staying" for a
short period the implementation of any judicial decision. Furthermore,
the Company will, if necessary, use that time to prepare and mount a
substantive legal challenge. Any such challenge would be accompanied
by a further request for the decision to be "stayed" pending the
outcome of a final court hearing.

EMRA Chairman Mr Fekry Youssef states "EMRA takes this opportunity to
re-iterate its full support of our operating partner at the Sukari gold
mine, PGM. We enjoy a positive and constructive relationship with PGM
that will see not only very substantial cash flows to the Egyptian
economy, but also the development of a world class gold mining industry
in Egypt. In light of PGM's substantial investment in the Sukari
project, we strongly believe that the terms of the Sukari Concession
Agreement are both reasonable and fair to all parties concerned; namely
the Egyptian people, the government and to our partners. We will
endeavour to work on a solution together and to keep the project

Centamin's Chairman, Josef El-Raghy states "Our Company takes very
seriously any threat to our operating title, our investment and the
livelihood of our employees. If, through our due diligence process in
the coming weeks, we do uncover any such threat we will spare no effort
in order to defend our position which at all times has been in
accordance with the terms of the Concession Agreement (law 222 of
1994), the Egyptian law and international best practice for both mining
and general investment in the country. The Sukari project has seen
Centamin invest over USD700 million in Egypt to date and, despite the
uncertain times, our Company committed a further USD287 million to the
Stage 4 expansion project since it was initiated in 2011. The Sukari
mine currently directly employs 1200 people, with a further 3000
employed indirectly. All of our mining and processing operators are
now Egyptians and mining now represents a key means of bringing
economic development into the region in which we operate. We have
demonstrated the ability to generate considerable revenue, skills and
jobs for Egypt and have done so with absolute commitment to integrity
and fair dealing. We will persist in that vein so as to encourage
continued investment, employment and revenue generation in Egypt."

We will provide further updates to the market as and when more
information is available. In the meantime normal mining operations

A 'question and answer' section has been included on our website to
help clarify the situation for investors to the extent that we are able
at the present time. This will be updated as necessary. A direct link
is below: 

For more information please contact:

Centamin plc                                          Buchanan

Josef El-Raghy, Chairman                              Bobby Morse

+44 207 569 1670                                      Cornelia Browne

Andy Davidson, Head of Business Development and       Gabriella
Investor Relations                                    Clinkard

( )                        + 44 (0) 20 7466
+44 (0) 20 7569 1671

                    This information is provided by RNS

          The company news service from the London Stock Exchange


Contact Information: