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Roy Pitchford, Chief Executive of Vast, commented:

"I am delighted to report that the turnaround of operations at Manaila has continued, despite the extreme weather conditions experienced at site. With this in mind, the achievements of the period are even more notable, however we are not resting on our laurels and are introducing systems by which to alleviate these problems in future years. In particular, heating systems are being installed in the flotation circuits in order to enhance recoveries from now on. These initiatives, in addition to the utilisation of spare processing capacity at the Iacobeni Metallurgical Complex, should improve operations throughout the rest of the current quarter.

"A primary focus in this and future quarters will be the continued ramping up of zinc production and grade. We are currently producing approximatley 80 tonnes per month of zinc concentrate, however our objective is to increase this by up to 85% and to achieve a grade of over45%, which would greatly enhance revenue per tonne moving forward.

"The period also saw severe weather impact our operations in Zimbabwe, where unusually high rainfall in December and January resulted in lower milling and production at the Pickstone-Peerless Gold Mine. Despite the operational challenges experienced during the period, the mine still delivered production of 4,356 ounces of gold at an impressively low cost of US$619/oz versus an average sales price of US$1,231/oz.

"The Pickstone-Peerless mine has now returned to normal production levels and we remain optimistic about future production, which is being conducted in conjunction with the construction of the sulphide processing plant. This will enable production from the high-grade sulphide pit in addition to the oxide pit."

Quarterly Conference Call

Roy Pitchford, Chief Executive of Vast, will host a conference call for shareholders at 10.00 a.m. today in conjunction with this Quarterly Production Summary & Operations Update.

To participate in this conference call, please dial 0808 109 0701, or +44 (0) 20 3003 2701 if you are calling from outside of the UK, and enter participant code 8163920# when prompted to do so. Please note that all lines will be muted with the exception of Vast`s management, however the Company invites shareholders to submit questions to its public relations adviser, St Brides Partners Ltd, ahead of the call via email to shareholderenquiries@stbridespartners.co.uk or through the online chat function.

To access the online chat function, please use the link below and log in as a participant using the event number 952 745 377 followed by the password, `vast`:

https://sbmf.webex.com/sbmf/onstage/g.php?MTID=e8c3f37aaf4d187aaf13e63c0181b7cce

On the right-hand side of the screen you will find an option to submit questions during the call. The Q&A function will only be made live once the call has commenced.

The management team will strive to answer as many questions as possible during the course of the call. A recording of the call will also be made available on the Company`s website.

If you have any problems accessing the call, please contact St Brides Partners Ltd on shareholderenquiries@stbridespartners.co.uk or call +44 (0) 20 7236 1177.

A copy of the presentation will also be uploaded to the Research, Media & Presentations page of the website at www.vastresourcesplc.com shortly before the call commences.

Further Information

Manaila Polymetallic Mine
The Manaila Mine performed encouragingly during the quarter despite extreme cold weather, which necessitated the cessation of operations in December. Normal operations resumed at the end of January and it is anticipated that the utilisation of spare processing capacity at the Iacobeni Metallurgical Complex should allow for the decreased January production to be recovered in February and March.

The following production and sales figures were achieved during the quarter ended 31 December 2016:

• 9% decrease in ore mined to 25,269 tonnes (September 2016: 27,848 tonnes) - the decrease was due to a cessation of operations in December occasioned by extremely cold weather. Normal mining operations resumed at the end of January and heating systems for the flotation circuits are to be installed in order to reduce or eliminate future stoppages caused by the extreme cold weather.

• 8% increase in ore milled to 29,435 tonnes (September 2016: 27,274 tonnes). The increase in milled tonnages was achieved notwithstanding extremely cold conditions at the Iacobeni Metallurgical Complex.

• 44% increase in copper concentrate produced to 889 tonnes (September 2016: 616 tonnes) due to a greatly improved throughput in the copper float line. Production was also augmented by 165 tonnes of zinc concentrate produced in the quarter equating to a 371% increase (September 2016: 35 tonnes).

• 12% increase in sales price of US$1,120 per tonne achieved for combined copper and zinc sales (September 2016: US$1003 per tonne); copper only concentrate sales price of US$1,237 reflected a sustained improvement in concentrate grades produced rising 23% in sales per tonne achieved (September 2016 $1,003 per tonne). Average monthly copper sales prices of US$1,204 per tonne at a grade of 19.8%, US$1,254 per tonne at a grade of 19.2% and US$1,218 per tonne at a grade of 19.6% were realised in October, November and December respectively. A zinc concentrate grade of circa 30% was achieved on zinc sales in December.

• Operating costs decreased by 3% to US$32 per tonne milled (September 2016: US$33), but declined by 40% to US$901 per tonne of concentrate produced (September 2016: US$1,504 per tonne).

• The decrease in cost per tonne milled was due to the higher throughput at the plant.

• The decline in concentrate cost per tonne as compared to the September quarter was due to the greatly increased production levels. Production from the separate zinc concentrate line, commissioned during the previous quarter, also enabled an improved recovery of processing overheads.

• Processing specialists Minxcon Group is currently engaged to further enhance the quantity and quality of the zinc concentrate and reduce operational costs. The planned heating of the flotation circuits should assist in achieving this.

• Currently approximately 80 tonnes per month zinc concentrate is being produced. The Company`s immediate objective is to increase zinc production by up to 85% by June 2017 and to increase zinc concentrate grades to >45%.

  • An increase in zinc grades will favourably impact sales revenue per tonne for zinc concentrate in future quarters.

• A gravity recovery circuit is being installed to increase gold and silver recoveries.

Quarterly Production Figures

December 2016 Quarterly Production Summary

Competent Person`s Review:
This announcement has been reviewed by Mr. Craig Harvey, Group Chief Geologist at Vast, and a member of the Geological Society of South Africa and the Australian Institute of Geoscientists. Mr Harvey meets the definition of a "qualified person" as defined in the AIM Note for Mining, Oil and Gas Companies.

**ENDS**

For further information visit www.vastresourcesplc.com or please contact:

The information contained within this announcement is deemed by the Company to constitute inside information as stipulated under the Market Abuse Regulations (EU) No. 596/2014 ("MAR").

This announcement is distributed by NASDAQ OMX Corporate Solutions on behalf of NASDAQ OMX Corporate Solutions clients.

The issuer of this announcement warrants that they are solely responsible for the content, accuracy and originality of the information contained therein.
Source: Vast Resources plc via GlobeNewswire
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