eEnergy Group Regulatory News (EAAS)

8 May 2019

Alexander Mining plc

("Alexander" or the "Company")

Deep-South Resources Inc. closes the acquisition of 75%

of the Kapili Tepe polymetallic project in Turkey

Further to the announcement by the Company on 28 June 2018, the Company notes with pleasure the announcement by Deep-South Resources Inc. ("DSR") yesterday, 7 May, 2019, on the TSX-V that it has closed the acquisition of 75% of the Kapili Tepe copper, nickel, cobalt and gold project ("KT Project") in Turkey, as set out below.

https://www.deepsouthresources.com/investors/news-releases/deep-south-resources-has-closed-the-acquisition-of-75-of-the-kapili-tepe-copper-nickel-cobalt-and-gold-project-in-turkey/

Martin Rosser, Chief Executive Officer, said: "We are delighted that Deep South Resources has completed its acquisition of 75% of the Kapili Tepe project and we look forward to working closely together with DSR on this exciting project, which has significant potential for the use of our leaching technologies."

The KT Project is primarily a copper mineralised altered and brecciated shear zone also containing nickel, cobalt and gold mineralisation. The KT Project comprises one Mining Licence and two Exploration Licences, which are contiguous. The licensed area covers approximately 5,240 hectares (52.40km2).

DSR proposes to delineate a NI 43-101 Compliant Mineral Resource Estimate and then decide on whether to conduct a Preliminary Economic Assessment ("PEA"), which would be followed by a Pre-Feasibility Study ("PFS") for the potential construction of a mine. Both the PEA and PFS work will include investigating a mineral processing plant at the KT Project using the Leaching Technologies.

Alexander has granted DSR a licence for the potential use of its Leaching Technologies on amenable mineralised materials sourced from the KT Project and also associated mineral processing technical consultancy services on the following key terms:

I. Alexander will receive a royalty of 2.5 per cent. of gross saleable metal products produced from a potential mine at the KT Project, if using Alexander's Leaching Technologies.

II. Upon completion of DSR's acquisition of the 75 per cent. interest in the KT Project and approval from the TSX Venture Exchange, DSR shall issue 500,000 common shares to Alexander.

III. For an initial period of 24 months from the start of DSR formally committing to a PEA of the KT Project, to be renewed on a mutually acceptable rolling three months' basis thereafter, a monthly technical consultancy services retainer fee of US$7,500, paid in advance.

ENDS

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