Central Asia Metals Regulatory News (CAML)

10 April 2019

CENTRAL ASIA METALS PLC

('CAML' or the 'Company')

Q1 2019 Operations Update

Central Asia Metals plc (AIM: CAML) today provides a Q1 2019 operations update for the Kounrad dump leach, solvent extraction and electro-winning ('SX-EW') copper recovery plant in Kazakhstan ('Kounrad') and the Sasa zinc-lead mine in North Macedonia ('Sasa').

Highlights

- Production, on track to meet full year guidance for copper, zinc and lead

o Q1 2019 Kounrad

§ Copper produced, 2,952 tonnes

o Q1 2019 Sasa

§ Zinc in concentrate produced, 5,639 tonnes

§ Lead in concentrate produced, 7,212 tonnes

- Preparation of updated SRK Consulting (UK) Limited ('SRK') Mineral Resource Estimate ('updated MRE') for Sasa in accordance with Joint Ore Reserves Committee ('JORC') guidelines

o Total combined Indicated and Inferred Mineral Resources of 22.5 million tonnes with a zinc grade of 2.87% and a lead grade of 4.23%, containing 646,000 tonnes of zinc and 953,000 tonnes of lead

o Despite 18 months of mining depletion since previous Mineral Resource Estimate as of 1 July 2017 ('2017 MRE'), minimal reduction in contained metal of approximately 6,000 tonnes of zinc and 7,000 tonnes of lead due to higher resource grades (informed by recent drilling programmes)

o Golema Reka deposit Indicated Mineral Resources of 1.3 million tonnes, at a zinc grade of 1.61% and a lead grade of 3.80%, converted from Inferred Mineral Resources through the successful 2018 infill drilling programme

o Resource base to support a long mine life at Sasa of at least 19 years

CAML production summary

Nigel Robinson, Chief Executive Officer, commented:

"These production results reflect a good start to the year at Kounrad and Sasa, both of which are on track to achieve 2019 production targets. Base metals production guidance for 2019 is 12,500 to 13,500 tonnes of copper cathode, plus 22,000 to 24,000 tonnes of zinc in concentrate and 28,000 to 30,000 tonnes of lead in concentrate.

"The updated MRE underscores our belief that in Sasa we have a long-life asset with a high-quality resource base. Since the 2017 MRE, we have, in the updated MRE, demonstrated higher overall zinc and lead grades at our current mining area of Svinja Reka. At Golema Reka, our resource was previously all within the Inferred category and we now have 1.3 million tonnes within the higher confidence Indicated category out of a total Golema Reka combined Indicated and Inferred Mineral Resource of 7.6 million tonnes.

"In 2019, we will continue to drill at Svinja Reka, with the primary objective being to increase our understanding of the mineralisation at depth. We will also drill some exploratory holes into the Kozja Reka area that lies between Svinja Reka and Golema Reka, which was mined between 1966 and 1989."

Kounrad

Kounrad Q1 2019 copper production was 2,952 tonnes. Total Kounrad copper production since operations commenced in 2012 is now 85,426 tonnes.

Total copper recovered from the Western Dumps in 2019 is 1,958 tonnes, equating to approximately 66% of the amount plated.

Copper sales during Q1 2019 were 2,894 tonnes.

Sasa

Production and sales

In Q1 2019, mined and processed ore were 197,836 tonnes and 199,489 tonnes respectively. The average head grades for the Q1 2019 period were 3.26% zinc and 3.84% lead. Q1 metallurgical recoveries were 86.8% for zinc and 94.0% for lead.

Sasa produces a zinc concentrate and a separate lead concentrate. In Q1 2019, 11,447 tonnes of concentrate containing 49.3% zinc and 9,870 tonnes of concentrate containing 73.1% lead were produced.

Sasa typically receives from smelters approximately 84% of the value of its zinc in concentrate and approximately 95% of the value of its lead in concentrate. Accordingly, Q1 2019 payable production was 4,723 tonnes of zinc and 6,851 tonnes of lead. Given that deliveries from Sasa to the smelters occur on a daily basis, payable base metal in concentrate sales for the quarter were very similar at 4,754 tonnes of zinc and 6,921 tonnes of lead.

During Q1 2019, Sasa sold 88,392 ounces of payable silver that were recovered in the lead concentrate. Due to an existing streaming agreement with Osisko Gold Royalties, CAML's silver production has been pre-sold.

SRK Mineral Resource Statement

During 2018, CAML undertook diamond drilling at both Svinja Reka, the location of current Sasa mining operations, and Golema Reka, which was mined between 1981 and 2010. The assay results of these holes were released on 9 January 2019. Approximately 3,000 metres of drilling were undertaken at each deposit, with the aim of verifying previous exploration programmes and converting a portion of the Inferred Mineral Resources into the Indicated category.

The Svinja Reka and Golema Reka deposits have been explored and sampled using appropriate methodologies and are sufficiently understood to support the estimation of Indicated and Inferred Mineral Resources.

The Mineral Resource Statement below demonstrates Sasa's resources as of 31 December 2018. The statement has been prepared in accordance with JORC (2012) guidelines by Competent Person, Mr Guy Dishaw (P.Geo.). Mr Dishaw is a consultant employed by SRK who is independent of CAML.

SRK Mineral Resource Statement for combined Svinja Reka and Golema Reka deposits of the Sasa mine, as of 31 December 2018, reported at $35.0 and $40.0 per tonne net smelter return ('NSR') cut-off for each deposit respectively.

· CAML owns 100% of the Sasa mine and is the operator

· All Indicated Mineral Resources are reported within the Exploitation Licence, although approximately 600kt (22%) of reported Inferred Resources at Svinja Reka exist outside the current Exploitation Licence

· Mineral Resources are reported as undiluted. No mining recovery has been applied in the Statement.

· Tonnages are reported in metric units, grades in per cent (%) or grammes per tonne (g/t), and the contained metal in metric units. Tonnages, grades, and contained metal totals are rounded appropriately. Rounding, as required by reporting guidelines, may result in apparent summation differences between tonnes, grade and contained metal content.

Svinja Reka

The updated MRE has demonstrated a 4% increase in overall zinc grade to 3.59% and a 7% increase in lead grade to 4.58% when compared to the 2017 MRE. This improvement in reported grades is largely a result of the intersection of mineralisation that was both thicker and higher grade than expected in the drilling between the 830 metre and 750 metre levels. This increase in grade has resulted in only a relatively small decrease in contained metal since the 2017 MRE of approximately 7,000 tonnes of lead and 6,000 tonnes of zinc, despite production during the period of 33,378 tonnes of zinc and 44,390 tonnes of lead. 

The total Svinja Reka combined Indicated and Inferred Resources of 15.1 million tonnes reflects removal from the model of 1.46 million tonnes of material that was mined or not recovered, 0.45 million tonnes of Inferred Resources that were converted to Indicated Resources and 0.45 million tonnes of new Inferred Resources that were identified through the drilling programme.

Golema Reka

At Golema Reka, combined Indicated and Inferred Mineral Resources of 7.6 million tonnes reflect an increase of 0.2 million tonnes since the 2017 MRE as a result of the drilling programme. 1.3 million tonnes of the total have been upgraded from the Inferred to Indicated category, demonstrating an increased level of confidence in this material, as a result of the 2018 drilling programme.

For further information contact:

Review by Competent Person:

The Mineral Resource Estimate has been completed by Guy Dishaw, a Principal Consultant (Mining Geology) with SRK Consulting (UK) Ltd., who is a Member of the Association of Professional Engineers and Geologists of Saskatchewan. Guy Dishaw has some twenty years' experience in the exploration, definition and mining of precious and base metal Mineral Resources. Guy Dishaw has sufficient experience which is relevant to the style of mineralisation and type of deposit under consideration, and to the type of activity which he is undertaking to qualify as a "Competent Person" as defined by JORC and as required by the June 2009 Edition of the AIM Note for Mining and Oil & Gas Companies. Guy Dishaw has reviewed, and consents to, the inclusion in the announcement of the matters based on their information in the form and context in which it appears and confirms that this information is accurate and not false or misleading. The technical information contained within this announcement has also been reviewed and approved by Scott Yelland, CAML COO, a qualified Chartered Engineer and Fellow of the Institute of Materials, Minerals and Mining (FIMMM).

Note to editors:

Central Asia Metals, an AIM-listed UK company based in London, owns 100% of the Kounrad SX-EW copper project in central Kazakhstan and the Sasa zinc-lead mine in North Macedonia. For further information, please visit www.centralasiametals.com.

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