Mawson West Announces Q1 Financial and Operating Results

Mawson West Limited (TSX:MWE) ("Mawson West" or "the Company") is pleased to
announce it has released its financial results and related Management's
Discussion and Analysis (MD&A) incorporating the three months ("the Quarter" or
"Q1") to 31 March 2014.


Highlights:



--  Copper sales of 1,138 tonnes and silver sales of 39,446 ounces 
--  Revenue of US$6.8 million 
--  Cash of US$23.0 million at the end of the Quarter (following debt
    retirement of US$7.5m, US$5.2m of Dikulushi tax payments and continued
    investment in Kapulo long lead items) 
--  Subsequent to the Quarter end, executed offtake arrangement with
    Trafigura Pte Ltd ("Trafigura") 
--  Trafigura offtake arrangement included a prepayment facility of US$50.0
    million, which was fully drawn-down in April 2014. 



Mawson West Chief Executive Bruce McFadzean said: "During the Quarter we
continued to focus on production from the Dikulushi underground operation,
having transitioned from processing high grade open pit material in the previous
quarter. Given this transition, we experienced a scheduled reduction in our
copper and silver output. 


"However as we continue to ramp up production from the Dikulushi underground
mine we remain confident of realising our FY 2014 production target of 7-9k
tonnes of copper in concentrate. In addition, underground exploration drilling
currently underway has the potential to significantly increase the underground
resource at Dikulushi, extending the life of mine beyond Q3 2014.


"It was very pleasing to announce, subsequent to the end of the Quarter, Mawson
West had secured with Trafigura an offtake agreement and a US$50 million
prepayment facility. Executing such an agreement enables us to complete the
remaining development of our Kapulo project and we now expect to commence
commissioning in Q4 2014, bringing on projected annualized production of 20k
tonnes of copper in concentrate.


"With continued production from Dikulushi and the Kapulo development advancing
towards production Mawson West remains strongly positioned for growth."


Conference Call 

Mawson West will host a Q1 results conference call on Tuesday 20, May 2014 at
10.00am (North American Eastern Standard Time) (1.00pm London; 10.00pm Perth;
12.00am Sydney).


Chief Executive Officer and Managing Director, Bruce McFadzean, and Chief
Financial Officer, Mark Di Silvio will discuss the Company's financial and
operating results for the Quarter, followed by questions from analysts and
shareholders.


Dial in details for the conference call have been provided on page three (3) of
this announcement.


Key highlights of the Quarter include:

Financial



                                             -------------------------------
(in thousands of US dollars except as                                       
 otherwise noted)                                Three months ended March 31
                                             -------------------------------
                                                          2014          2013
----------------------------------------------------------------------------
Revenue                                                  6,810        44,482
Gross profit/(loss)                                     (1,070)       18,074
Profit/(Loss) after income tax                          (4,761)       11,949
Earnings (Loss) per Share (basic) (cents) (1)             (2.9)          6.4
Realised copper price ($/tonne)                          6,993         7,893
Copper sales (tonnes)                                    1,138         4,698
C1 cost per pound ($)                                     3.47          0.31
----------------------------------------------------------------------------



Operational



--  Processing of Dikulushi underground ore commenced in mid-February as the
    Dikulushi underground mine continued to ramp up. Underground mining is
    expected to extend production from the Dikulushi operation until at
    least Q3 2014 while providing the opportunity for Mawson West to
    evaluate additional underground mining potential. 
    
--  A total of 9,957 tonnes of ore was hauled at an average grade of 3.65%
    copper and 72g/t silver. 
    
--  Production for the Quarter totalled 879 tonnes of copper in concentrate
    and 65,863 ounces of silver in concentrate.  
    
--  C1(1) costs were US$3.47 per pound of copper in concentrate produced
    (US$3.65 excluding silver credit) during the Quarter. 



Development 



--  Construction activities at the Kapulo project continued during the
    Quarter with further orders of long lead items placed. As at the end of
    the Quarter, cumulative construction expenditure totalled US$80.8
    million (including owner's costs but before evaluation, pre-stripping
    and funding costs), with forecast total construction expenditure of
    US$124 million. Commissioning is expected for Q4 2014. 



Exploration and Resource Definition



--  A total of US$0.9 million was spent on exploration and resource
    definition during the Quarter. 
    
--  Resource definition drilling to target upgrades to the Dikulushi
    underground deposit commenced during the Quarter. 
    
--  Exploration prospects in both Dikulushi and Kapulo districts were ranked
    and prioritised, with detailed programs for the 2014 field season
    finalised. Field work is scheduled to accelerate mid-year, following the
    end of the wet season.



(1) The term "C1 cost" is a non-IFRS financial performance measure reported in
this MD&A. See "Non-IFRS Financial Measures" on page 12. 


Subsequent Events



--  In April 2014, Mawson West announced that it had entered into an offtake
    agreement, through its 90% owned subsidiary Anvil Mining Congo SARL
    ("AMC"), with Trafigura to sell 100% of the copper concentrate produced
    at the Dikulushi and Kapulo mines for a period of 48 months from the
    commencement of commercial production at Kapulo. As part of the offtake
    arrangements Trafigura provided a prepayment facility of US$50.0
    million, which was fully drawn-down in April 2014. 
    
--  Mr. Louis Rozman resigned as a Non-Executive Director on April 4, 2014. 
    
--  Mr. Mark Hohnen and Ms. Susie Corlett were appointed as Non-Executive
    Directors of the Company on April 5, 2014.



Conference Call 

Interested parties may access the conference call by using the following dial-in
numbers.




--  Canada 1866 307 0658 
--  United States 1866 307 0659 
--  United Kingdom 0808 238 9067 
--  Australia 1800 153 721 
--  New Zealand 0800 442 709 
--  International Toll 612 8212 8333 



Participant PIN Code: 29244# 

Dial-in access details for other countries can be obtained from the below web
address: 

http://www.arkadin.com/beamon/ITFS/ANZ_Jan_2013.pdf. 

Please connect approximately 10 minutes prior to the beginning of the call. 

A recorded playback of the conference call can be accessed from the below web
address after the event:
http://www.mawsonwest.com/irm/content/webcasts.aspx?RID=317.



FOR FURTHER INFORMATION PLEASE CONTACT: 
Mawson West Limited
Bruce McFadzean
Chief Executive Officer and Managing Director
+61 8 9485 9800
bmcfadzean@mawsonwest.com


Mawson West Limited
Mark Di Silvio
Chief Financial Officer
+61 8 9485 9800
mdisilvio@mawsonwest.com


MAGNUS Investor Relations
Kusal Meemeduma
+61 2 8999 1010
kmeemeduma@magnus.net.au


Roth Investor Relations Inc.
Michelle Roth
+1 732 792 2200
michelleroth@rothir.com
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