Cloudbreak Regulatory News (CDL)

("Cloudbreak" or the "Company")

Amendment to the Stateline Option Agreement

Grant of Options and Warrants

Drawdown of Equity Line

Cloudbreak Discovery Plc (LSE: CDL), a leading natural resources project generator with a focus on commodities required for the energy transition, announces that the Company and Alianza Minerals Ltd (TSX-v: ANZ) have agreed to amend the terms of the Stateline option agreement with Allied Copper Corp (TSX-v:CPR) ("Allied") entered into on 9 February 2022. 

Under the terms of the modified option agreement Allied will be able to delay the issuance of shares ("Allied Shares") and warrants ("Allied Warrants") whilst keeping the agreement in good standing should the issuance of the Allied Shares or Allied Warrants make Cloudbreak or Alianza an insider of Allied as defined by the TSX Venture Exchange. Additionally, the outstanding Allied Shares will become payable to Alianza and Cloudbreak should either party reduce its equity holding through sale or other type of divestiture, or if additional shares are issued in Allied which would dilute either party's holdings.

Grant of Options and Warrants

The Company has granted 7,250,000 options ("Options") and 2,950,000 warrants ("Warrants") over ordinary shares of 0.1 pence each in the Company to certain of its directors, PDMRs, and other members of staff and consultants. The Options and Warrants have an exercise price of 2.25 pence per share (being a premium of 26.8% to the closing price on 8 August 2022). The Options can be exercised at any time until the third anniversary of grant while the Warrants can be exercised until the first anniversary of grant.

Following the grant of the Options and Warrants, the Company has 21,900,000 shares under option, and 26,171,692 warrants in issue, representing 4.09% and 4.88% of the current issued share capital respectively.

Drawdown of Equity Line

Additionally, the Company has elected to draw down £0.179 million of the £10 million Equity Line with Crescita Capital LLC ("Crescita") entered into on 16 February 2021. The shares have been issued at 1.79 pence per share resulting in 10,000,000 million new ordinary shares being issued. The remaining capital available to Cloudbreak through the Equity Line is £8.7 million.

The capital drawn down will be used to advance the Company's acquisitions of energy royalties, lithium assets and bauxite projects globally.

The new ordinary shares will rank pari passu with the existing ordinary shares of the Company. In accordance with the FCA's Disclosure Guidance and Transparency Rules, the Company's issued share capital consists of 536,001,976 Ordinary Shares of 0.1p, each with one voting right. The Company does not hold any Ordinary Shares in treasury. Therefore, the total number of voting rights in the Company is 536,001,976.

The above figure of 536,001,976 should be used by shareholders in the Company as the denominator for the calculations by which they will determine if they are required to notify their interest in, or a change to their interest in, the share capital of the Company under the Financial Conduct Authority's Disclosure Guidance and Transparency Rules.

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.

-ENDS-

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About Cloudbreak Discovery PLC

Cloudbreak Discovery PLC is a leading natural resources project generator building value by evaluating and acquiring quality projects with a particular focus on resources key to the energy transition. Our projects are developed and managed by an experienced team with a proven track record of delivering on mineral and energy investments. Cloudbreak's generative model enables a multi-asset approach to investing and exploration with diversification across commodities and jurisdictions as the key to withstanding the cycles of natural resources investing.