Amur Minerals Regulatory News (AMC)

30 June 2021

AMUR MINERALS CORPORATION

("Amur" or the "Company")

AUDITED FINAL RESULTS FOR THE YEAR ENDED 31 DECEMBER 2020

2020 Highlights:

• Work on Permanent Conditions TEO ("TEO") continued, with a one year extension to delivery date

• Metallurgical test work confirmed Kun-Manie ores can produce two separate saleable concentrates which could materially increase project's gross revenue

• Investment in Nathan River Resources Pte Limited convertible loan note

• Board and executive management restructuring

Chairman's Statement

It is with pleasure that I update you on the activities of the Company for the twelve months period to 31 December 2020. Along with all worldwide corporate entities, Amur Minerals Corporation (the "Company") has had to balance and endure the challenging year given the Covid-19 pandemic, despite which the Company progressed its Federation of Russia Kun-Manie Nickel/Copper sulphide project ("Kun-Manie"). In addition, the Company established a source of income generated through its ownership of 14% interest Convertible Loan Notes ("CLN"") supporting the resumption of Nathan River Resources' ("NRR") Roper Bar iron ore production located in the Northern Territories of Australia.

We present the Annual Report and Accounts for the year to 31 December 2020. It is noted that over the course of the year 2020, the Company continued to remain debt free and its cash reserve increased by 600% from US$398,000 (1 January 2020) to US$2,800,000 (31 December 2020). Going forward, the NRR CLN will generate interest revenue through to Q3 2023 and at the rate of approximately US$170,000 per quarter.

Looking forward, we continue our work toward the completion of the funded Permanent Conditions TEO ("Feasibility Study level work") for identification of reserves per the Russian mineral classification system. Subsequent Russian Federation and western required documentation allowing for production approvals, development and compilation of the necessary information to provide both a Russian compatible Bankable Feasibility Study ("RBFS") and western BFS standard studies shall be undertaken. This binary study approach should provide the Company with the flexibility to evaluate and identify the best approaches to develop and advance the Company.

Kun-Manie Nickel-Copper Sulphide project

The 2019 Kun-Manie project focus of the Company has been and continues to be the Kun-Manie nickel copper sulphide project in the far east of Russia. Despite the disruption of the global pandemic, work on the TEO continued throughout the year with a one year extension to the delivery date being granted. The TEO is a mandatory Russian feasibility study, independently compiled, addressing the physical and operating project considerations and paving the way for registration of a project's mineral reserve by the State Committee on Reserves ("GKZ"). Reserve registration is a necessary milestone for all companies to undertake detailed engineering, procurement and construction designs suited for compilation of a Russian Bankable Feasibility Study ("RBFS").

Planned for delivery in December 2020, the impact of having to work remotely meant that the Company had to request an extension for the delivery date of the TEO to 1 December 2021. Approved by the Russian Federation, the Company still accomplished the majority of its TEO related tasks including:

· Russian grade estimates for nickel, copper, cobalt, platinum, palladium, gold and silver. Maiden estimates for gold and silver were generated;

· Hydrological assessment determined that a more than sufficient water supply is available to support the project;

· Rock mechanics study work confirmed that open pit and/or underground operations can be successfully implemented;

· Base Line Environmental Assessment have defined the base line preproduction environmental settings and operational considerations;

· Metallurgical test work confirming that individual copper sulphide and nickel sulphide concentrates can be generated using standard industry sulphide floatation methods;

· Key equipment list of the key components based the global metallurgical test works has establish specific equipment lists;

· The 10 tonne representative bulk sample, (as well as multiple test programmes conducted over the years), had established the nickel and copper can be recovered in individual sulphide concentrate streams improving revenue generation streams for the project;

· Process flow sheets and estimated operating costs have been substantially refined;

· Non-binding off-take terms and conditions by a confidential metals trader have provided guidance to assist in the determination of revenue generation;

· Pit designs at four cut-off grades have been generated for each of the three deposits. Reserve resource models indicate an as yet uncertified potential mine life ranging from 24 to 41 years based on a 6.0 mtpa nominal operating capacity;

· A comprehensive mine site layout has been identified.

Oreall (a Moscow based independent company licenced to compile TEO study results) has compiled the document to be provided to the GKZ for reserve certification. As with the Temporary Conditions TEO done in the past, the Company is independently verifying the draft results including independent reviews and the inclusion of the newly acquired metallugical test work results.

Concurrently and separate from the TEO work, RPM Global has recently completed (post 2020) an update to the JORC resource estimates including all drilling and trenching. The resource for all categories of Measured, Indicated and Inferred has been increased from the most recent resource number by as much as 14.1% to 15.4% for tonnage of ore and tonnages of nickel and copper. With regard to Measured and Indicated resources used to define reserves, these have been increased from 25 to 31% by tonnage of ore and tonnages of nickel and copper.

A 0.3% Nickel cut-off grade has been used to calculate the JORC Resource compared to a 0.4% Nickel cut off-grade. The reduction in the COG is primarily due to the metallurgical test results by Gipronickel which confirmed that two revenue generating concentrate products (Ni and Cu) could be produced. Previous resource estimates were based on a single nickel only payable concentrate being produced with zero revenue contribution being derived from the copper.

Below is a summary of the newly reported JORC resource within the global mineral resource within the 100% owned (and the operator) Kun-Manie licence area. These results have only recently been obtained from RPM Global.

Kun-Manie Nickel Copper Sulphide Mineral Resource Estimate

(0.3% Ni Eq COG)

Notes;

1. Totals may differ due to rounding, Mineral Resources reported on a dry in-situ basis.

2. Mineral Resources are reported in accordance with the Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves (The Joint Ore Reserves Committee Code - JORC 2012 Edition).

NRR Rope Bar Iron Ore Operation

On 25 August 2020, the Company completed an equity placing of £6,100,000 and an investment of US$4,670,000 to hold a Convertible Loan Note ("CLN") on Nathan River Resources Pte Limited ("NRR") which owns the Roper Bar Iron Ore Project ("Roper Bar"). Roper Bar is a large established iron ore deposit in the Northern Territory of Australia with a defined JORC resource of 446,000,000 tonnes at 39.9% Fe and a JORC reserve of 4,760,000 tonnes at 60.1% Fe. NRR has re-established the mining and shipping of iron ore to China under an offtake agreement with Glencore.

The Company is paid on the 14% coupon of the CLN which is convertible into 17% of the current issued share capital of NRR. During 2020 the Company was due US$205,000 in interest payments, of which US$43,000 was received during the year and US$162,000 post year end. These notes have a three year maturity life.

Financial Overview

As at 31 December 2020 the Company had cash reserves of US$2,800,000 up from US$398,000 at the start of 2020 and remains debt free.

The Company undertook a number of funding initiatives during 2020 providing total funds from equity placings of approximately US$10,000,000 net of issue costs. In addition, on 12 March 2020, the Company entered into a £1,500,000 fixed term loan with Plena Global securities LLC ("Plena") with an immediate initial advance of £500,000. As part of this loan facility, the Company also granted Plena 52,447,552 warrants with an exercise price of 1.43 pence per ordinary share.

On 16 April 2020, the Company completed an equity placing of 75,000,000 new ordinary shares at a price of 1p per share to raise gross proceeds of £750,000. Funds raised from this placing were used to repay in full the initial advance of the Plena loan facility on 4 May 2020.

On 27 May 2020, the Company completed an equity placing of 47,619,048 new ordinary shares at a price of 1.05 pence per share to raise gross proceeds of £500,000.

During 2020, Plena has exercised 47,723,776 warrants providing £682,450 of additional funding for the Company. As at time of writing this report, Plena has 4,723,776 warrants outstanding.

On 19 June 2020, the Company held an Extraordinary General Meeting during which a resolution was passed to increase the number of shares which the Company is authorised to issue to 2,000,000,000.

On 25 August 2020, the Company completed an equity placing of $6,100,000 and an investment of US$4,670,000 in a Convertible Loan Note ("CLN") in NRR.

On the 13 February 2020, the Company appointed Mr. Adam Habib as Advisor to the Board. As part of his appointment, Mr. Habib was granted 12,809,630 options with an exercise price of 1.95 pence per share, with a further 12,809,630 options subject to the successful completion by the Company of a non-binding off-take agreement, for the completion of a producing asset investment.

On the 3 April 2020, the Company made a grant of 30,000,000 options with an exercise price of 1.75 pence per ordinary share to Directors, executives and employees. As at 31 December 2020, the Company has 55,619,260 options outstanding.

Administration expenses for the 2020 year totalled US$3,000,000 (2019: US$2,000,000). The main reason for the increase in administration expenses was caused by the hiring of a new Officer and Adviser and modest employee salary increases totalling US$1,400,000 (2019: US$1,100,000) and professional fees of US$874,000 (2019: US$402,000) associated with TEO activities. Other Comprehensive income was charged with a translation loss of US$4,100,000 (2019: gain of US$2,900,000) was due to the weakening of the Russian rouble to the US dollar. Expenditure on exploration was US$1,200,000 (2019: US$1,300,000) as the Company remained focused on the completion of the TEO. Exploration assets realized an exchange loss of US$3,800,000 (2019: exchange gain US$2,700,000) also due to the weakening of the Russian rouble to the US dollar.

As detailed in the notes to the financial statements, the Kun-Manie asset value have been restated by US$486,000. This is due to certain exploration costs that were incurred and were capitalised within the Parent Company, whereas these costs should have been capitalised within Russian operating subsidiary in its functional currency, with resulting foreign exchange gains or losses being recognised at the end of each reporting period end.

Covid-19

Since the start of January 2020, Covid-19 created significant disruption to the global markets and economies, including Russia. To keep safe its personnel, the Company has put in place special measures to protect its workforce while at the same time ensuring business continuity. Prior to the outbreak, the Company had the facilities in place to allow remote working for most members of staff. This capability was enhanced to ensure that the Company can now operate effectively over an extended period of time without requiring regular access to physical offices. The Company maintains close contact with its contractors working on the Permanent Conditions TEO as the contractors have also put in place procedures to work effectively over the coming months in order to ensure that these projects are delivered within their original schedules. As an additional assurance to shareholders, the Russian Federation subsoil law allows for and was granted extensions to filing dates.

As of the date of this report, Covid-19 also created significant uncertainty and disruption in the financial markets. The Company has not realised a negative impact of Covid-19 on its ability to raise funds, having completed equity placements in April 2020 of £750,000, May 2020 of £500,000 and £6,100,000 in August 2020. However, the Directors are cognisant that conditions in the financing market are changeable and will continue to monitor developments.

Outlook

The Company's primary objectives for 2021 are the completion of the TEO and continued work on the commencement of the Bankable Feasibility Study and the required incumbent study work.

The BFS provides the necessary technical, environmental and economic detail for institutional investors to advance funding for construction and into production. The BFS is itself a considerable undertaking and the Amur team has been working on the detailed planning and costing of the BFS programme. This has required considerable interaction with both Russian and international organisations qualified in conducting BFS level work.

In conjunction with the development of the BFS work programme, the Company has also been maintaining open discussions with potential offtake partners which the Company believes will provide access to the types of institutional investors who provide financing, principally through debt, for BFS programmes.

The Company is well placed to take advantage of the growing interest in the global development of low carbon economies and the key battery materials, especially nickel and copper, that underpin this movement. We believe shareholders have a good cause to be optimistic about the future of the Company, and we thank them for their patience and continued support.

On behalf of the Board of Directors, I would like to thank all the staff for their dedication and hard work throughout this period in getting the TEO programme organised and progressing toward its completion.

Market Abuse Regulation (MAR) Disclosure

This announcement contains inside information for the purposes of Article 7 of the Market Abuse Regulation (EU) 596/2014 as it forms part of UK domestic law by virtue of the European Union (Withdrawal) Act 2018 ("MAR"), and is disclosed in accordance with the Company's obligations under Article 17 of MAR.

Enquiries:

CONSOLIDATED STATEMENT OF FINANCIAL POSITION

AS AT 31 DECEMBER 2020

CONSOLIDATED INCOME STATEMENT

FOR THE YEAR ENDED 31 DECEMBER 2020

Loss per share (expressed in cents)

Basic and diluted (0.25) (0.32)

CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME

FOR THE YEAR ENDED 31 DECEMBER 2020

CONSOLIDATED STATEMENT OF CASH FLOWS

FOR THE YEAR ENDED 31 DECEMBER 2020

CONSOLIDATED STATEMENT OF CHANGES IN EQUITY

FOR THE YEAR ENDED 31 DECEMBER 2020

1. Basis of prePARATION

a) General Information

Amur Minerals Corporation is incorporated under the British Virgin Islands Business Companies Act 2004. The registered office is Kingston Chambers, P.O. Box 173, Road Town, Tortola, British Virgin Islands.

The Company and its subsidiaries ("Group") locates, evaluates, acquires, explores and develops mineral properties and projects in the Russian Far East.

The Company owns 100% of the share capital of Carlo Holdings Limited, which was acquired in the year. The Company is the 100% owner of Irosta Trading Limited ("Irosta"), an investment holding company incorporated and registered in Cyprus. Irosta holds 100% of the shares in ZAO Kun-Manie ("Kun-Manie"), an exploration and mining company incorporated and registered in Russia, which holds the Group's mineral licences.

The Group's principal place of business is in the Russian Federation.

The Group's principal asset is the Kun-Manie production licence, which was issued in May 2015. The licence is valid until 1 July 2035 and allows the Company's subsidiary, ZAO Kun-Manie, to recover all revenues from 100% of the mined metal that specifically includes nickel, copper, cobalt, platinum, palladium, gold and silver. The Company's management are evaluating the project with a view of determining an appropriate model for the development and ultimate exploitation of the project.

b) Basis of Preparation

These financial statements have been prepared under the historical cost convention, except for the valuation of derivative financial instruments, on the basis of a going concern and in accordance with International Financial Reporting Standards (IFRS) and IFRIC interpretations issued by the International Accounting Standards Board (IASB) as adopted by the European Union.

The financial statements are presented in thousands of United States Dollars.

The principal accounting policies adopted in the preparation of the financial statements are set out below. The policies have been consistently applied to all the years presented, unless otherwise stated.

The preparation of financial statements in conformity with IFRS requires management to make judgements, estimates and assumptions that affect the application of policies and reported amounts of assets and liabilities, income and expenses. The estimates and associated assumptions are based on historical experience and factors that are believed to be reasonable under the circumstances, the results of which form the basis of making judgements about carrying values of assets and liabilities that are not readily apparent from other sources. Actual results may differ from these estimates. The areas involving a higher degree of judgement or complexity, or where assumptions and estimates are significant to the consolidated financial statements, are disclosed in note 3.

The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised if the revision only affects that period, or in the period of revision and future periods if the revision affects both current and future periods.

c) Going concern

The Group operates as a natural resources exploration and development group. To date, it has not earned any revenues and is considered to be in the final stages of exploration and evaluation activities of its Kun-Manie project.

The Directors have reviewed the Group's cash flow forecast for the period to 31 December 2022 and note that the Group's ability to continue to meet its obligations as and when they fall due is dependent on a variety of factors, one being the receipt of quarterly interest payments from NRR in respect of the convertible loan facility. Should no further quarterly interest payments be received from the date of this report, it is foreseen that cash will run out in April 2022.

As the Group approaches bankable feasibility, an alternative funding option will need to be secured in order to adequately fund this step. The Directors are currently in negotiations with a number of parties in respect of raising further funds. Whilst progress is being made on a number of potential transactions which would provide adequate funding to the Group, there are no binding agreements in place. The Company was successful in completing three equity placements in 2020 and while the Directors are confident of raising additional funding should it be required, their ability to do this is not completely within in their control.

These conditions indicate the existence of a material uncertainty which may cast significant doubt over the Group's ability to continue as a going concern. Based on the current progress of the negotiations with potential investors and providers of finance the Directors believe that the necessary funds to provide adequate financing to continue with the current work program on its Kun-Manie project will be raised as required and accordingly they are confident that the Group will continue as a going concern and have prepared the financial statements on that basis.

The financial statements do not include the adjustments that would result if the Group was not able to continue as a going concern and, therefore, that it may be unable to realise its assets and discharge its liabilities in the normal course of business.

c) Loss per share

Basic and diluted loss per share are calculated and set out below. The effects of warrants and share options outstanding at the year ends are anti-dilutive and the total of 90.1 million (2019: 27.1 million) of potential ordinary shares have therefore been excluded from the following calculations:

d) Prior year restatement

Since incorporation in 2005 costs incurred by Amur Minerals Corporation (the "Company"), relating to exploration and mining activity, have been capitalised on the Group Statement of Financial Position as Exploration and Evaluation costs. During the year ended 31 December 2020 management has undertaken an exercise to reassess these costs and has determined that, given the parent company does not hold the overarching exploration and mining licences of the Group or directly controls these assets, the capitalisation of these costs as Exploration and evaluation costs in the parent company was done in error. These costs have been incurred on behalf of the Parent company's subsidiaries and should have been capitalised within the Russian Operating subsidiary's functional currency with resulting foreign exchange gains or losses being recognised at each reporting period end on consolidation into the Group's presentation currency. These costs would have been capitalised using the subsidiaries' functional currency, which is the Russian Rouble. A cumulative adjustment has been calculated to reflect the translation of these costs into Russian Rouble and then back to the Group's presentation currency of USD on consolidation. This has had the following impact -

Group Balance Sheet (2019)

Exploration and Evaluation assets has decreased by $486,193 to an adjusted balance of $26,227,000.

The Foreign Currency translation reserve within equity has increased by $486,193 to an adjusted balance of $13,351,000. A third balance sheet has been included in the financial statements to demonstrate the effects of this adjustment on prior periods.

Group Statement of Comprehensive Income/(Loss) (2019)

The Exchange difference on translating foreign operations has increased by $319,104 to $2,931,000.

We note that these adjustments have had no impact upon the Group Profit after Tax.

e) Events after the reporting date

The terms and conditions for the Company's Kun-Manie "Detailed Exploration and Mine Production Licence" ("DEMP"), were amended and registered with Rosnedra, the State Licencing Agency. The certified modification to the DEMP was received 9 February 2021 from Amurnedra and is dated effective 30 November 2020. The Company submitted the application to amend the delivery date of the 1 December 2020 TEO which has now been successfully extended to 1 December 2021 for its delivery.

Annual Accounts

Copies of the Group's Annual Accounts will be posted to the Amur shareholders today and are available for download from the Company's website at www.amurminerals.com.

Notes to Editors

The information on exploration results and Mineral Resources contained in this announcement has been reviewed and approved by the CEO of Amur, Robin Young. Mr. Young is a Geological Engineer (cum laude) and is a Qualified Professional Geologist, as defined by the Toronto and Vancouver Stock Exchanges and a Qualified Person for the purposes of the AIM Rules for Companies.

Glossary

DEFINITIONS OF EXPLORATION RESULTS, RESOURCES & RESERVES

EXTRACTED FROM THE JORC CODE: (December 2012) (www.jorc.org)

A 'Mineral Resource' is a concentration or occurrence of material of intrinsic economic interest in or on the Earth's crust in such form, quality and quantity that there are reasonable prospects for eventual economic extraction. The location, quantity, grade, geological characteristics and continuity of a Mineral Resource are known, estimated or interpreted from specific geological evidence and knowledge. Mineral Resources are sub-divided, in order of increasing geological confidence, into Inferred, Indicated and Measured categories.

An 'Inferred Mineral Resource' is that part of a Mineral Resource for which tonnage, grade and mineral content can be estimated with a low level of confidence. It is inferred from geological evidence and assumed but not verified geological and/or grade continuity. It is based on information gathered through appropriate techniques from locations such as outcrops, trenches, pits, workings and drill holes which may be limited or of uncertain quality and reliability.

An 'Indicated Mineral Resource' is that part of a Mineral Resource for which tonnage, densities, shape, physical characteristics, grade and mineral content can be estimated with a reasonable level of confidence. It is based on exploration, sampling and testing information gathered through appropriate techniques from locations such as outcrops, trenches, pits, workings and drill holes. The locations are too widely or inappropriately spaced to confirm geological and/or grade continuity but are spaced closely enough for continuity to be assumed.

A 'Measured Mineral Resource' is that part of a Mineral Resource for which tonnage, densities, shape, physical characteristics, grade and mineral content can be estimated with a high level of confidence. It is based on detailed and reliable exploration, sampling and testing information gathered through appropriate techniques from locations such as outcrops, trenches, pits, workings and drill holes. The locations are spaced closely enough to confirm geological and/or grade continuity.

An 'Ore Reserve' is the economically mineable part of a Measured and/or Indicated Mineral Resource. It includes diluting materials and allowances for losses which may occur when the material is mined. Appropriate assessments and studies have been carried out, and include consideration of and modification by realistically assumed mining, metallurgical, economic, marketing, legal, environmental, social and governmental factors. These assessments demonstrate at the time of reporting that extraction could reasonably be justified. Ore Reserves are sub-divided in order of increasing confidence into Probable Ore Reserves and Proved Ore Reserves.