RNS Number:2684O
GMA Resources PLC
04 August 2003


For Release                         07.00                          4 August 2003

                            GMA Resources Plc

                      (" GMA Resources" or "the Company")

                            Update on operations

                                    and

            Proposal regarding the conversion of outstanding

            convertible unsecured of loan stock ("Loan Stock")


Update on operations

Following the acquisition of a 52% majority shareholding in the capital of
Entreprise d'Exploitation des Mines d'Or (ENOR) GMA Resources plc has now
assumed management control.

As part of the change in management GMA Resources have appointed a new
Operations Manager (Phil Davies) and an Exploration Manager (Jan van Graan) to
assist in the optimisation of the existing operation and to assist in the
preparation and consideration of the development options as outlined in the
Company's prospectus of 8 May 2003.

Phil Davies is a Mining Engineer. His previous position was General Manager and
Deputy Managing Director of Societe Ashanti de Guinee, operating the Siguiri
Gold Mine in Guinea, West Africa.

Jan van Graan is a Geoscientist. He previously worked in exploration management
roles for Billiton, and currently manages his own consultancy business, based
out of Johannesburg.

Loan Stock Conversion

The Board has resolved to prepare and forward proposals to the holders of
outstanding Loan Stock which will enable them to convert all of their holdings
of Loan Stock into new ordinary shares ranking pari passu with the existing
issued ordinary shares in the share capital of the Company on the basis of a
reduced conversion price of 8.5p nominal of Loan Stock per share. This compares
with the current conversion price of 10p nominal of Loan Stock per share.

It is proposed that, this reduced conversion price will be available to holders
of Loan Stock wishing to convert their entire holdings of Loan Stock for a three
week period following approval of the proposals. The proposals will require the
consent of both the holders of Loan Stock and of the shareholders.

Successful early conversion of all the outstanding loan stock will result in
annual savings of approximately #300,000 and total savings of approximately
#1.6m in interest costs over the current life of the loan stock (on the basis
that no additional loan stock is converted into ordinary shares). In addition,
it will substantially improve the strength of the Company's balance sheet.

A circular containing details of the proposals and notices convening the
appropriate meetings of Loan Stock holders and shareholders will be despatched
in due course.


Press enquiries

GMA Resources Plc
Colin Ikin, Chief Executive Officer              Tel: +33 678 389 762

Binns & Co PR Ltd
Peter Binns
Emmie Peryer                                     Tel: 020 7 786 9600


                      This information is provided by RNS
            The company news service from the London Stock Exchange

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