Bushveld Minerals Regulatory News (BMN)

Bushveld Minerals Ltd

("Bushveld" or the "Company")

Completion of Bushveld supported BEE transaction

Bushveld Minerals Limited (AIM: BMN), the diversified mineral development company with a portfolio of vanadium, titanium, iron ore, tin and coal assets in Southern Africa, today provides the following update on the completion of the change in ownership of Vametco Holdings (Proprietary) Limited's ("Vametco") Black Economic Empowerment ("BEE") partners.

Highlights:

· Jaxson 640 (Proprietary) Limited's ("Jaxson 640") BEE stake acquisition in Vametco completed with payment of ZAR 8.522 million (US$ 0.655 million) to the Avacap (Proprietary) Limited consortium ("Avacap Consortium");

· Bushveld agrees to vendor finance Jaxson 640 for the above amount of ZAR 8.522 million;

· Bushveld completes a Settlement and Undertaking Agreement with Gingko Trading (Proprietary) Limited ("Gingko") ("Gingko Agreement") and pays ZAR 7.678 million (US$ 0.59 million) and replaces Gingko as lender to Vametco's BEE shareholding structure;

· Avacap Consortium's nominated directors on the board of directors of Vametco and Vametco Alloys (Proprietary) Limited ("Vametco Alloys") resign and are replaced by Jaxson 640 nominees.

Further to the Company's announcement on 22 February 2017 ("Supported Acquisition of BEE Shareholding"), Bushveld can now confirm that Jaxson 640 has completed the acquisition of the Avacap Consortium's interest in Vametco and will now replace the Avacap Consortium as major BEE partner to Strategic Minerals Corporation ("SMC"). Jaxson 640 together with the local communities, on whose land the Vametco mine deposit and processing plant are located, will now hold a 26% shareholding in Vametco.

Under the terms of the acquisition, as previously announced, Jaxson 640 agreed to purchase the Avacap Consortium's interest in Vametco for a total sum of ZAR 8,522,103 (US$ 655,189), comprising a purchase consideration of ZAR 5,000,000 (US$ 384,405), the settlement of a shareholder loan, with interest, of ZAR 2,000,000 (US$ 153,762) principal and an additional ZAR 1,000,000 (US$ 76,881) premium. In addition, Jaxson assumed its share of the existing debt of approximately ZAR 39.5 million (US$ 3.04 million) historically incurred in establishing the existing BEE shareholding in Vametco.

The acquisition was conditional on, among others,

· The completion of the acquisition of SMC by Bushveld Vametco Limited;

· Bushveld entering into the Gingko Agreement in terms of which Bushveld would settle all demonstrable funding (and accumulated interest thereon) that Gingko advanced to the Avacap Consortium as part of the 2014 acquisition of the BEE shareholding in Vametco;

· Consent to the transaction being granted by Nedbank Limited, the lenders to the Avacap Consortium's original BEE transaction with Vametco.

The Company confirms that this transaction is now complete. Furthermore, the Company announces that it has reached a vendor funding agreement with Jaxson 640 in terms of which Bushveld has provided to Jaxson 640 funding totalling ZAR 8,522,103 (US$ 655,189) to enable it to complete the transaction. The funding has been provided in the form of a vendor loan and will be repaid to Bushveld from dividends due to Jaxson 640 from Vametco over a period of 5 years.

As announced on 28 March 2017, Bushveld entered into the Gingko Agreement in terms of which Bushveld would replace Gingko as lender to the BEE shareholders of Vametco. Accordingly, Bushveld has paid Gingko a total of ZAR 7,677,983.49 (US$ 590,292), comprising a principal and accumulated interest amount of ZAR 6,427,983.49 (US$ 494,190) and a ZAR 1,250,000.00(US$ 96,101) premium for the settlement.

The total outlay by Bushveld in respect of the BEE transaction was ZAR 16,200,087 (US$ 1,245,480).

Pursuant to the completion of the Jaxson BEE transaction, the directors representing the Avacap Consortium on the boards of directors of Vametco and Vametco Alloys have since resigned and will be replaced by Jaxson 640's representatives.

Jaxson 640 is led by Bill Chipane, an investment professional with more than ten years in the metals and mining investment banking experience. Mr Chipane is well known to Bushveld Minerals and has been a consultant to the group for some time.

Fortune Mojapelo, CEO of Bushveld Minerals, commented:

"We are delighted to announce, now that all the conditions have been satisfied, that the Jaxson 640 transaction Bushveld supported and vendor financed is now complete. We are pleased to have the Jaxson 640 team and the local land-owners and communities, who are beneficiaries of this transaction, as our partners at Vametco and look forward to working with them in future."

The information contained within this announcement is deemed by the Company to constitute inside information under the Market Abuse Regulations (EU) No. 596/2014.

Enquiries: info@bushveldminerals.com

Bushveld Minerals Limited

Fortune Mojapelo +27 (0) 11 268 6555

Strand Hanson Limited (Nominated Adviser)

Andrew Emmott / Ritchie Balmer +44 (0) 20 7409 3494

Beaufort Securities (Joint broker)

Jon Bellis +44 (0) 20 7382 8300

SP Angel Corporate Finance (Joint broker)

Ewan Leggat +44 (0) 20 3470 0470

Blytheweigh (Public Relations)

Tim Blythe / Camila Horsfall +44 (0) 20 7138 3204

Gabriella von llle +27 (0) 711 121 907

ABOUT BUSHVELD MINERALS LIMITED

Bushveld Minerals is a diversified AIM listed mineral development company with a portfolio of vanadium, titanium, iron ore, tin and coal greenfield assets in Southern Africa and Madagascar. The Company's flagship platform, the vanadium platform, includes the Mokopane Vanadium Project, the Brits Vanadium Project, and the Bushveld Iron Ore & Titanium Project. The tin platform comprises the Mokopane Tin Project whereas the Imaloto Coal Project, which is being developed as one of Madagascar's leading independent power producers, makes up the Company's coal platform.

The Company's vision is to become the largest low cost integrated primary vanadium producer through owned low-cost 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 a slow growing steel industry, Bushveld Minerals believes there is a strong potential for imminent significant global vanadium demand surge from the fast-growing energy storage market, particularly through the use and adoption of Vanadium Redox Flow Batteries.

Bushveld Minerals' 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 with a visible timeframe, low capex requirements and scalability are important factors in retaining an attractive exit option. 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