Armadale Capital Regulatory News (ACP)

Armadale Capital Plc / Index: AIM / Epic: ACP / Sector: Investment Company

28 June 2021

Armadale Capital Plc

('Armadale' or 'the Company')

Block Admission

and

Total Voting Rights

Armadale Capital plc, the AIM quoted investment group focused on natural resource projects in Africa, announces that application has been made for the block admission ("Block Admission") of 43,333,333 ordinary shares of 0.1 pence each in the capital of the Company ("Ordinary Shares"), ranking pari passu with the Company's existing Ordinary Shares. It is expected that admission of the Block Admission Ordinary Shares will become effective on 2 July 2021. These new Ordinary Shares may be issued from time to time pursuant to the exercise of existing warrants by their respective holders.

Total Voting Rights

Furthermore, the Company announces that, prior to the issuance of any Ordinary Shares pursuant to the Block Admission above, it's current issued share capital consists of 501,167,161 Ordinary Shares, and not 501,167,889 as announced on 28 May 2021. There are no shares held in Treasury, therefore the figure of 501,167,161 should be used as the denominator for the calculations by which shareholder can determine if they are required to notify their interest in, or a change to their interest in the Company.

Notes

Armadale's wholly-owned Mahenge Liandu Graphite Project is located in a highly prospective region, with a high-grade JORC compliant indicated and inferred mineral resource estimate announced February 2018 - 59.5Mt at 9.8% TGC. This includes 11.5Mt @ 10.5% Measured 32.Mt Indicted at 9.6% and 15.9Mt at 9.8% TGC, making it one of the largest high-grade resources in Tanzania.

The work to date has demonstrated the Project's potential as a commercially viable deposit, with significant tonnage, high-grade coarse flake and near surface mineralisation (implying a low strip ratio) contained within one contiguous ore body.

The Company's updated Definitive Feasibility Study (June 2020) confirmed Mahenge as a long-life low-cost graphite project with a US$430m NPV and IRR of 91% based on a two-stage expansion strategy comprising:

· Stage One - processing plant and infrastructure at a nominal design basis rate of 0.4-0.5 Mt/pa to produce a nominal 60,000t/pa graphite concentrate in the first three years of production

· Stage Two - a second 0.5 Mt/y plant and associated additional infrastructure doubling throughput to 1 Mt/y from Year 5 of operation

The DFS shows that Armadale can be a significant low-cost supplier to the graphite industry with the potential to generate pre-tax cashflows of US$985m over an initial 15 year mine-life and scope for further improvement as this utilises just 25% of the current resource, which remains open in multiple directions.

Projected timeline to first production is expected to be approximately 10-12 months from the start of construction and the capital cost estimate for Stage 1 is US$39.7m, which includes a contingency of U$S4.1m or 15% of total direct capital cost, with a 1.6 year payback for Stage 1 (after tax) based on an average sales price of US$1,112/t. Stage 2 expansion is expected to be funded from cashflow.

More information can be found on the website www.armadalecapitalplc.com.