Alba Mineral Resources Regulatory News (ALBA)

Alba Mineral Resources plc

("Alba" or "the Company")

Share Placing

Alba Mineral Resources plc (AIM: ALBA) is pleased to announce that it has raised £450,000 (before expenses) through the issue of 692,307,692 new ordinary shares at a price of 0.065 pence per ordinary share (the "Placing"), conditional on the admission of such new ordinary shares to trading on AIM ("Admission").

Share warrants will also be issued to each subscriber in the Placing, with one warrant to be issued for every two shares subscribed for, for a total of 346,153,846 warrants.

The warrants will have an exercise price of 0.13p per share and an expiration date of 24 months from the date of issue. The warrants will also be subject to an accelerator provision, such that if at any time during the 24 month duration of the warrants the 10-day volume-weighted average price (VWAP) of Alba ordinary shares exceeds 0.26p per share, the Company may give warrant holders notice to exercise their warrants within 10 business days following the Company's notice and to pay the exercise price in full within 15 business days following the Company's notice, failing which the warrants will automatically expire.

The warrants will not be traded on any exchange and will otherwise be issued subject to the terms and conditions set out in a warrant instrument to be executed by the Company.

With the price of gold currently at an all-time high of almost US$2,000 per ounce, as announced on 22 July 2020 the Company's near-term work activities will be very much focused on the Clogau Gold Project. The proceeds from the Placing will be used to accelerate work activities at Clogau including the following activities:

- the bulk sampling of several tonnes of ore from several targets within the existing mine workings;

- the drilling of a number of targets from underground, with the first phase expected to involve 5-10 holes for up to 500 metres of drilling;

- the establishment of a bespoke gold pilot processing plant at or close to the mine site;

- further underground chip and channel sampling and 3D scanning; and

- the surface trenching of a selection of the 10 new gold targets previously identified by Alba over a six-mile section of the Dolgellau Gold Belt.

The Company also intends to complete the next phase of metallurgical testwork on the high-grade Amitsoq Graphite Project and to commission an independent scoping study on the Melville Bay Iron Ore Project (JORC resource 67Mt at 31.4% Fe). All work activities are subject to timely receipt of regulatory and third-party approvals and contractor availability, however the process for obtaining approvals and finalising contracts with key contractors is well underway.

The proceeds from the Placing will also be used for general working capital purposes.

The Company will exercise its right to postpone by 60 days the closing of the next tranche of funding under the financing arrangement entered into with U.S. based institutional fund, Bergen Global Opportunity Fund, LP (see the Company's announcement of 24 February 2020), such that the next tranche will not now close until the end of October 2020.

Admission to AIM

Application will be made for the new ordinary shares to be admitted to trading on AIM ("Admission"). It is expected that Admission of the new ordinary shares will become effective at 8.00 a.m. on or around 7 August 2019. The new ordinary shares will be issued credited as fully paid and will rank in full for all dividends and other distributions declared, made or paid after Admission and will otherwise rank on Admission pari passu in all respects with the existing ordinary shares.

Total Voting Rights

Following Admission, the total number of ordinary shares in issue will be 4,834,409,638. The Company does not hold any ordinary shares in treasury. Therefore, the total number of ordinary shares with voting rights will be 4,834,409,638. This figure may be used by shareholders in the Company as the denominator for the calculations by which they will determine if they are required to notify their interest in, or a change to their interest in, the share capital of the Company under the Financial Conduct Authority's Disclosure and Transparency Rules.

This announcement contains inside information for the purposes of Article 7 of EU Regulation 596/2014.

Forward Looking Statements

This announcement contains forward-looking statements relating to expected or anticipated future events and anticipated results that are forward-looking in nature and, as a result, are subject to certain risks and uncertainties, such as general economic, market and business conditions, competition for qualified staff, the regulatory process and actions, technical issues, new legislation, uncertainties resulting from potential delays or changes in plans, uncertainties resulting from working in a new political jurisdiction, uncertainties regarding the results of exploration, uncertainties regarding the timing and granting of prospecting rights, uncertainties regarding the Company's or any third party's ability to execute and implement future plans, and the occurrence of unexpected events. Actual results achieved may vary from the information provided herein as a result of numerous known and unknown risks and uncertainties and other factors.

For further information, please contact:

Alba's Project and Investment Portfolio