Bushveld Minerals Regulatory News (BMN)

Market Abuse Regulation (MAR) Disclosure

Certain information contained in this announcement would have been deemed inside information for the purposes of Article 7 of Regulation (EU) No 596/2014 until the release of this announcement.

21 December 2017

Bushveld Minerals Limited

("Bushveld" or the "Company")

Completion of Acquisition and Readmission to AIM

Bushveld Minerals Limited (AIM: BMN), a mineral project development company with a portfolio of vanadium and coal assets in Southern Africa and a minority investment in tin, is pleased to announce the Completion of the acquisition of 55 percent of Bushveld Vametco, Limited ("BVL") ("the Acquisition"), the issue of of 54,766,364 new ordinary shares in the Company (the "Consideration Shares") to Yellow Dragon Holdings Limited ("Yellow Dragon" or the "Seller") and the admission to trading on AIM of the enlarged issued share capital will be effective at 8 a.m today ("Admission").

Fortune Mojapelo, Chief Executive of Bushveld commented:

"We are delighted to have completed this acquisition before the end of the year. Vametco has, to date, illustrated its strong cash generation capability and, with the expansion initiatives underway, the drive towards a lower cost base which, in a rising vanadium price environment, ensures the transaction is value accretive to our shareholders. We go into 2018 in a strong position and look forward to the future with confidence."

Highlights of the Acquisition:

Acquisition details:

· The Company has acquired all of the ordinary shares in BVL not currently owned by the Group from Yellow Dragon for an initial purchase price of US$11.1 million to be satisfied on Admission

· The initial purchase price of US$11.1 million consists of a cash payment of US$4.5 million and the issue of the Consideration Shares, credited as fully paid, at 9.06 pence per share. The Consideration Shares will represent 6.25 per cent. of the enlarged issued share capital of the Company and will be issued credited fully paid.

· In addition, there will be two deferred payments of US$0.6 million each, payable following publication of the accounts for Vametco Holdings Limited for respectively the years ending 31 December 2018 and 31 December 2019, and a further payment to be made on publication of the Vametco Holdings Limited accounts for the year ended 31 December 2020 to be calculated by reference to the EBITDA of Vametco Holdings Limited for the period covered by its 2020 accounts.

· Following completion of the Acquisition, Yellow Dragon will hold 79,766,364 shares representing 9.11 per cent of the Enlarged Issued Share Capital

Rationale for the Acquisition

The Acquisition will increase the Company's indirect interest in Vametco Holdings from 26.6 per cent. to 59.1 per cent enabling it to fully consolidate the Strategic Minerals Corporation ("SMC") Group in its financial statements. The Directors believe that the Acquisition will benefit the Company and its shareholders for the following reasons:

· Increased exposure to vanadium, a commodity with a robust and growing demand profile amid a constrained and concentrated supply environment resulting in a sustained structural deficit with no significant new supply anticipated in the near future;

· Bushveld will own a majority shareholding in a high grade, low-cost open-cast and simple mining proposition with access to brownfield processing infrastructure that is being acquired for considerably less than its replacement cost;

· Vametco enjoys a significant c.3.5 per cent. share of the global vanadium market;

· The Vanadium Price has enjoyed a strong performance in 2017 with prices increasing by 54% (source: Metal Bulletin) and the trading price being in excess of US$40/kgV (at the end of November 2017)

· The production base has the potential to expand within 3 years to over 5,000 mtV per annum, supported by one of the largest primary vanadium resource base in the world (under the ownership of Bushveld);

· Productivity initiatives targeting further production cost efficiencies

· Vametco has the potential to diversify its product range beyond its Nitrovan® product; and

· The Acquisition is further aligned with the Company's aspirations in the global energy storage space by providing capacity for potential electrolyte manufacturing.

Substantial shareholders in Bushveld on Admission:

As far as the Company is aware, set out below is a list of substantial shareholders following Admission:

Enquiries: info@bushveldminerals.com

ABOUT BUSHVELD MINERALS LIMITED

Bushveld Minerals is an AIM listed mineral project development company with a portfolio of vanadium and coal assets in Southern Africa and a minority investment in tin.

The Company's flagship vanadium platform includes a 59.1% controlling interest in Bushveld Vametco Alloys (Pty) Ltd a primary vanadium mining and processing company; the Mokopane Vanadium Project and the Brits Vanadium Project. The coal platform comprises the wholly-owned Imaloto Coal Project, which is being developed as one of Madagascar's leading independent power producers. The Company's tin interests are held through its shareholding in AIM listed AfriTin Mining Limited.

Bushveld's vision is to become a significant, low cost, integrated primary vanadium producer through owned high grade assets. This incorporates development and promotion of the role of vanadium in the growing global energy storage market through Bushveld Energy, the Company's energy storage solutions provider. Whilst the demand for vanadium remains largely anchored in the steel industry, Bushveld Minerals believes there is strong potential for an imminent and significant global vanadium demand surge from the fast-growing energy storage market, particularly through the use and adoption of Vanadium Redox Flow Batteries.

The Company's approach to project development recognises that, whilst attractive project economics are imperative, they are insufficient to secure capital to bring them to account. A clear path to production within a visible timeframe, low capital expenditure requirements and scalability are important factors in ensuring a positive return on investment. This philosophy is core to the Company's strategy in developing projects.

Detailed information on the Company and progress to date can be accessed on the website: www.bushveldminerals.com