Critical Min Regulatory News (CMRS)

16 November 2021

Caerus Mineral Resources PLC

('Caerus' or the 'Company')

Extension of Option Agreement with Jubilee Metals Group PLC

Caerus Mineral Resources (LON: CMRS), the exploration and resource development company focused on developing mineral resources in Europe to support the global "Clean Energy" initiative, is pleased to inform shareholders of the signing of an extension to the Option Agreement (the "Option" or "Agreement") between the Company and Jubilee Metals Group PLC ("Jubilee").

Highlights

· Jubilee and Caerus have agreed to extend the agreement for a further period of 18 months within which window a positive Joint Venture decision is anticipated.

· With the recent acquisition by Caerus of highly prospective new licences and assets, the Parties recognise that the scale of the opportunity has increased significantly

· Good progress has been achieved during the initial Option period and the companies have jointly identified dumps and properties that warrant further detailed investigation with a view to forming a Joint Venture for development

· The main focus remains the Troulli - Kokkinapetra Project where both Parties are working towards a possible joint venture early in 2022

· Work programmes and in-country design and engineering support are expected to increase as Jubilee advances test work towards finalising a processing plant for production purposes

Commenting on the extension of the Option Agreement, Chief Executive Officer Martyn Churchouse said "The main focus of our Waste to Revenue development remains the Troulli Project and a large number of samples are currently being assayed whilst bulk samples are subject to metal recovery test work by Jubilee. Very good progress has been made and we look forward to a swift and positive conclusion comprising a first Joint Venture with Jubilee. In this context, plans have been made for a team of Jubilee engineers to visit site before the end of November. The positive feedback from initial test work and the innovative approach adopted by Jubilee has incentivised Caerus to review and assess a much wider range of resource types than originally targeted. Both oxide and sulphide mineralisation are under the spotlight and the number of potential targets has increased significantly.

The extension of the Option period provides Caerus with the ability to complete more detailed reconnaissance on the enlarged suite of licences including the collection of samples from the recent major trenching exercise and ongoing drilling. This will provide Jubilee with the raw materials required for their extended metallurgical test work programme. It also means Jubilee can focus on the more advanced work being undertaken on the Troulli - Kokkinapetra Project in the knowledge that the extension allows for further investigation on the remaining prospective projects in the Caerus portfolio. We are working closely with Jubilee and their test work and original thinking is opening-up new avenues for investigation of different resource types and new opportunities for Caerus".

Summary of the Terms of the Option Agreement ("Option" or "Agreement")

· The 18-month extension is effective immediately

· All operational costs to be met by Jubilee with no material cost to Caerus

· 18-month extension providing both the required time for detailed test work for the Troulli Project in parallel with assessment and both mineralogical and metallurgical test work of all other prospective projects within the Caerus portfolio of licences

· Jubilee has the exclusive option to elect to convert one or more projects to a Joint Venture under terms to be agreed and at any time within the extended Option period

· If a Joint Venture is agreed, Jubilee will design, finance and execute construction of any processing plant and become its operator

· Any Joint Venture will operate on a profit-sharing basis after recovery by Jubilee of its initial capital expenditure and other "up-front" costs

Option Agreement Rationale 

· This Option Agreement extension enables Caerus and Jubilee to expand the previously agreed Work Programme to investigate and assess the multiple waste stockpiles bearing residual copper and gold from the 16 mines that operated historically on Caerus' concessions and, sulphide resources occurring either as residual ore left by previous operators or newly discovered mineralisation where Caerus is currently undertaking exploration and resource drilling and conversion to Mineral Resources.

· The targeted wastes were discarded in an era when metal market dynamics were very different from today, and there was no incentive to optimise recoveries from ore feeds, nor any commercial or environmental benefits from doing so. The dramatically changed commodity price environment for copper in today's world is driven mainly by the global decarbonisation of the transport and energy sectors. This creates an opportunity for Caerus to form a working relationship with Jubilee and utilise their skills and experience in materials reprocessing. These will form the foundation of the Work Programme under the Agreement that will be delivered jointly with Caerus personnel.

· The ultimate objective is to identify and define projects within the Caerus portfolio that can be 'scaled-up' and prioritised into one or more Joint Ventures targeting profitable production using modern designs and waste processing technologies guided and financed by Jubilee.

For further information, please visit www.caerusmineralresources.com or contact:

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About Caerus Mineral Resources

Caerus Mineral Resources is a European focused copper-gold resource development and exploration company with a portfolio of mineral exploration licences located in Cyprus. The Country has a well-developed infrastructure and history of mineral exploration and production, which has been dormant over the last 50 years and provides significant undiscovered value.

With investors recognising copper as one of the cornerstone metals for the Clean Energy Transition centred upon the Electric Vehicle and Stationary Energy sectors, Caerus is working to rapidly expand its copper exploration and production objectives. The Caerus licence portfolio includes 16 former mines which operated with an average head grade of approximately 2% copper. 

Caerus' licence portfolio comprises brownfield sites, where historic mining has taken place, and greenfield licences, where there has been no systematic exploration. The Brownfield sites and the former high-grade copper-gold mines they host are evidence of rock types and structures conducive to Volcanogenic Massive Sulphide ("VMS") mineralisation. As VMS deposits characteristically occur in camps or clusters, it is the Company's view that its licences are prospective for both extensions to existing or mined-out orebodies together with new discoveries. 

The combination of brown and greenfield exploration provides optionality and the opportunity for the Company to quickly build a resource portfolio that can be commercially developed. 

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.

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