Baker Steel Regulatory News (BSRT)

BAKER STEEL RESOURCES TRUST LIMITED

(Incorporated in Guernsey with registered number 51576 under the provisions of The Companies (Guernsey) Law, 2008 as amended)

4 December 2019

29 November 2019 Unaudited NAV Statement

Net Asset Value

Baker Steel Resources Trust Limited (the "Company") announces its unaudited net asset value per share at 29 November 2019:

Net asset value per Ordinary Share: 68.4 pence

The NAV per share has decreased by 0.6% against the NAV at 31 October 2019, primarily due to a fall in the share price of Polymetal International Plc on the London Stock Exchange.

The Company has a total of 106,462,502 Ordinary Shares in issue with a further 700,000 shares held in treasury as at 29 November 2019.

Portfolio Update

The Company's top 12 investments at 29 November 2019 were as follows as a percentage of NAV:

Investment Update

Tungsten West Limited ("Tungsten West") 

On 29 November 2019, the Company invested £5 million in secured convertible loan notes in Tungsten West. These funds form part of a raising of up to a maximum £25 million. The funds raised to date have been used by Tungsten West to exercise its option to acquire the Hemerdon Tungsten Mine, 7 miles northeast of Plymouth in Devon, England with the remainder to be used to fund a definitive feasibility study on the project. The Company's investment was funded through the sale of shares in Polymetal International Plc which has had the effect of adding further diversity to the portfolio both geographically and by commodity.

During this year, the Company facilitated the foundation of Tungsten West which was initially formed to acquire an option over the Hemerdon Tungsten Mine from Hargreaves Services Plc. Hargreaves Services Plc had been the mining contactor at Hemerdon under the previous owner Wolf Minerals Limited ("Wolf"), and acquired the mine and its assets from the Official Receiver after Wolf was forced to close the mine following financial difficulties in October 2018.

Wolf commenced production at Hemerdon in 2015 but never achieved the designed recovery of tungsten from its plant. During 2019 Tungsten West has undertaken extensive mineralogical and metallurgical testwork on ore from Hemerdon and engaged independent mineral consultants, Wardell Armstrong, to prepare a Competent Persons Report on the project. These studies suggest that sorting of the ore before processing and the use of magnetic separation could significantly increase tungsten recovery and reduce costs.

A revised Mineral Resources Estimate has been prepared by independent consultants Mining Plus for the granite and killas lithologies using cut-off grades of 0.04 WO3 and 0.09% WO3 respectively, conforming to the JORC Code (2012 Edition). Measured and Indicated resources total 116 million tonnes at a grade of 0.13% WO3 with a further 110 million tonnes at a grade of 0.12 WO3. This makes Hemerdon one of the largest tungsten deposits outside China and once back in full production is expected to produce 4% of global mine production for this strategic metal.

Tungsten West intends to undertake further testwork to refine its proposed process flowsheet before building a pilot plant on site which will form the basis of a definitive feasibility study in 2020.

Further details of the Company and its investments are available on the Company's website www.bakersteelresourcestrust.com 

Enquiries:

Baker Steel Resources Trust Limited +44 20 7389 8237

Francis JohnstoneTrevor Steel

Numis Securities Limited +44 20 7260 1000

David Benda (corporate)

James Glass (sales)

The Net Asset Value ("NAV") figure stated is based on unaudited estimated valuations of the underlying investments and not necessarily based on observable inputs. Such estimates are not subject to any independent verification or other due diligence and may not comply with generally accepted accounting practices or other generally accepted valuation principles. In addition, some estimated valuations are based on the latest available information which may relate to some time before the date set out above.

Accordingly, no reliance should be placed on such estimated valuations and they should only be taken as an indicative guide. Other risk factors which may be relevant to the NAV figure are set out in the Company's Prospectus dated 26 January 2015.