Project G Acquisition and Power Update

Jubilee Metals Group PLC

Registration number (4459850)

AIM share code: JLP

Altx share code: JBL

ISIN: GB0031852162

("Jubilee" or "the Company" or "the Group")

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Project G Acquisition and Power Update

Jubilee, a diversified metals producer with operations in Zambia and South Africa, is pleased to provide a further update on the roll-out of its Copper Strategy in Zambia which is centred around achieving an initial production capacity target of 25 000 tonnes of copper per year.

The Company has successfully concluded its due diligence of Project G, an open pit copper mining operation in Zambia and has elected to acquire a majority interest in Project G under revised terms increasing the Company's holding to 65% from 51%, as previously announced on 21 August 2024  (Agreement). Project G marks the second open-pit copper operation acquired in Zambia following the implementation of Project Munkoyo.

In addition, the Company is pleased to announce that it has increased the allocation of power under the recently announced (23 September 2024) private power purchase agreement (LHPC agreement) to secure an additional 2MW of power in order to ensure that all of the Zambian operations are fully supplied under the LHPC agreement. The increased power allocation allows the Roan Concentrator (Roan) to operate at full capacity in respect of its newly commissioned front-end module and its existing milling and floatation plant. The Company's Zambian operations have now fully transitioned its power requirements onto renewable energy sources.

Highlights

·    Project G Agreement implemented to secure an increased 65% interest in the operations

·    The Company will settle the acquisition value of US$2.0 million in cash instead of in shares, with a commitment to invest a further US$500 000 into the upgrading of the Project G operations

·    Project G targeted to commence operations and delivery of pre-concentrated run-of-mine (ROM) to the Sable Refinery (Sable) by December 2024

·    Under the Agreement, Jubilee is appointed manager and operator of the open-pit operations with immediate effect

·    Project G will ramp up over a 6 month period to reach 3 000 tonnes per month of pre-concentrate material through a Jubilee on-site module, and delivery of an additional 350 copper units per month (4 200 per annum) to Sable for further refining

·    Resource drilling program currently underway, targeting a potential increase of production to 20 000 to 25 000 tonnes of ROM ore per month

·    LHPC private power agreement increased by a further 2MW power allocation effective immediately

Leon Coetzer, CEO of Jubilee commented:

"I am pleased to announce this transaction as our second open-pit mining operation in Zambia. As I mentioned when we first announced these proposed acquisitions, the strategic acquisition of two open-pit operations serves as an example of our ability to leverage our process capability and early mover advantage to secure significant near-surface copper resources which are already in operation.

These assets' predictable, high grades and our ability to owner manage the operations allowing us to control the optimal blend of feed ore to achieve the 25 000 tonne per annum copper target we have set for ourselves.

Zambia holds numerous similar near surface resource opportunities which we are actively pursuing.

We are equally pleased to have converted our entire power supply requirement to renewable energy in the form of hydro and solar power in future which is vital for the green energy transition to ensure that the copper we produce has as low a carbon footprint as possible."

Zambian Copper Strategy

The increased processing capacity of 25 000 tonnes of copper per annum will be achieved through the upgraded Roan and the second copper tank house addition to Sable.

The Sable upgrade is currently underway and expected to be fully integrated into the existing operations over the next 10 months. The Company's focus is now shifting towards bringing secured copper resources into full production to fully utilise this upgraded capacity.

Copper Resources

Open Pit Mining Operations

Project G is the second open-pit mining operation acquired by Jubilee. The Company's due diligence included full-scale processing trials at the Sable Refinery. Under the transaction agreement Jubilee is appointed manager and operator of the open-pit operations. Under the Agreement Jubilee will pay a total of US$2 million dollars of which US$1 million payment is deferred until after the transfer of the mining licences. Additionally, Jubilee has committed to invest a minimum of US$500 000 into the expansion and development of the operations.

The project plan for Project G targets to expand the existing open-pit operations to achieve an initial mining rate of 10 000 tonnes per month by February 2025. Project G includes an on-site upgrading facility capable of pre-concentrating the mined ROM material with an immediate capacity to produce 3 000 tonnes of copper concentrate per month, containing 10% to 15% copper. The lower grade copper reef will initially be stockpiled at source for future processing through the targeted regional processing hub. 

Project G and Project Munkoyo open-pit mines are located within 55 kilometres of the Sable. Project Munkoyo commenced operations in July 2024 and continues to ramp up to an initial target of 15 000 tonnes per month of ROM of which 5 000 tonnes per month are to be delivered directly to Sable for refining. Project Munkoyo remains on track to reach its initial target of 15 000 tonnes per month mined ROM ore by December 2024.

A resource drilling program is currently underway and, depending on the confirmation of resource continuity, will target an increase of production to 20-25 000 tonnes of ROM ore per month.

ENDS

7 October 2024

For further information visit www.jubileemetalsgroup.com, follow Jubilee on Twitter (@Jubilee_Metals) or contact below:

Jubilee Metals Group PLC 

Leon Coetzer (CEO)

Tel: +27 (0) 11 465 1913 

Nominated Adviser - SPARK Advisory Partners Limited 

Andrew Emmott/James Keeshan 

Tel: +44 (0) 20 3368 3555 

PR & IR Adviser - Tavistock 

Jos Simson/ Gareth Tredway

Tel: +44 (0) 207 920 3150 

Joint Broker - RBC Capital Markets

Farid Dadashev/Jamil Miah

Tel +44 (0) 20 7653 4000

Joint Broker - Zeus Capital

Harry Ansell/Katy Mitchell  

Tel: +44 (0) 20 7220 1670/+44 (0) 113 394 6618 

JSE Sponsor - Questco Corporate Advisory Proprietary Limited 

Alison McLaren

Tel: +27 (0)11 011 9207

About Jubilee

Jubilee is a low-cost, diversified producer, specialising in the recovery and processing of metals from previously overlooked resources, such as unprocessed historical waste rock, run-of-mine materials and tailings in Zambia and South Africa. The Company's low-capex, modular processing facilities are deployed close to these various types of material, producing high-grade concentrates for sale or further refining to finished metal at the Company's downstream facilities. Production currently consists of copper, chrome, and platinum group metals (PGMs). The modular processing facilities offer a platform for growth and the rapid expansion of Jubilee's operational footprint in Zambia and South Africa. Jubilee's success is derived from operational and technical excellence, an experienced management team and a pioneering Technical Development Centre.

Jubilee's Zambia Strategy

Jubilee has adopted an integrated copper strategy to achieve production in excess of 25 000 tonnes of copper per annum. This strategy focuses on expanding in-country processing capacity, securing and developing new copper resources, and evaluating the potential of large-scale waste rock processing to drive growth in Zambia's copper sector.   

Jubilee's targeted copper resources are classed into three groups namely:

·    Previously Processed Material

Tailings and partially processed discarded low-grade materials

·    Open-Pit Mining Operations

Operationalise copper resources to fully utilise installed processing and refining capacity to access near surface copper reefs that are accessible through open-pit mining

·    Previously Mined Waste Rock

Process low grade stockpiled material from historical mining operations