Empire Metals Regulatory News (EEE)

Empire Metals Limited / AIM: EEE / Sector: Natural Resources

24 November 2020

Empire Metals Limited ('Empire' or the 'Company')

Placing to Raise £2M to Exercise Option to Acquire 75% of the High-Grade Eclipse Gold Project, Update on Sale of Georgian Projects

Empire Metals Limited, the AIM-quoted resource exploration and development company, is pleased to announce that it has raised £2,000,000 before expenses by way of an oversubscribed placing of 61,538,462 new ordinary shares of no par value in the capital of the Company (the 'Placing Shares'), with new and existing shareholders in the Company, at a price of 3.25 pence per Placing Share (the 'Placing').

The net proceeds of the Placing will be primarily used to exercise the Company's option to acquire a 75% interest in the high-grade Eclipse Gold Mining Licence in Western Australia (the 'Project'), to complete the work programme that has commenced at the Project, and to continue the Company's efforts to identify and secure additional compelling assets in which the Company can add value in the short term, as well as for general working capital purposes.

Please see the announcement of 12 August 2020 for further details of the Eclipse Gold Project and the acquisition terms for the project.

Mike Struthers, CEO, said, "The support that we have received from new and existing shareholders in completing this placing is an endorsement of our confidence in the potential for significant high-grade gold resource development at the Eclipse Gold Project. The results achieved to date from Eclipse have been very encouraging, with the latest set confirming that the mineralisation remains open at depth and along strike, with high-grade drill results along strike of existing historical workings confirming an extension to the main high-grade lode.

"With Eclipse, we are operating in what is generally considered the highest ranked mining jurisdiction globally and are developing this project in a region which already hosts numerous world-class gold mines and development assets. I am enthusiastic about our opportunity to develop a new standalone gold mine at Eclipse and I look forward to providing further updates as we continue to interpret the data."

Sale of Bolnisi Copper and Gold Project

As announced on 11 November 2020, the final condition for closing of the transaction is the waiving of a right-of-first-refusal ('ROFR') in favour of Empire's Georgian partners, Caucasian Mining Group ('CMG'). CMG have indicated a potential interest in exercising the ROFR, however, the Company is in the process of clarifying a number of aspects related to a possible transaction with CMG and will provide further updates in due course.

Application for Admission

The Placing Shares will rank pari passu in all respects with the existing ordinary shares of no par value in the capital of the Company. Application has been made to the London Stock Exchange for the Placing Shares to be admitted to trading on AIM ('Admission'). It is expected that Admission will become effective on or around 27 November 2020. As a result of the issue of the Placing Shares as described above, the issued share capital of the Company now consists of 314,683,361 ordinary shares of no-par value.

Market Abuse Regulation (MAR) Disclosure

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. In addition, market soundings (as defined in MAR) were taken in respect of the matters contained in this announcement, with the result that certain persons became aware of inside information (as defined in MAR), as permitted by MAR. This inside information is set out in this announcement. Therefore, those persons that received inside information in a market sounding are no longer in possession of such inside information relating to the company and its securities.

**ENDS**

For further information please visit www.empiremetals.co.uk or contact:

About Empire Metals Limited

Empire Metals' primary focus is on the Eclipse Gold Project in Western Australia which produced 954 tonnes @ 24.6 g/t Au for 754.25 oz Au from the Eclipse shaft which operated up to 1910. In addition to the known mineralisation at and surrounding the Eclipse old workings, recent geophysics and geochemistry work has highlighted further potential mineralisation at two additional targets north-west of Eclipse, the Houdini and Easy prospects.

The Company also has a 50% joint venture in Georgia which covers an area of over 860 sq km and has a 30-year mining licence. The joint venture covers a variety of targets and projects ranging from greenfield exploration / target definition phase through intermediate target-testing phases to more advanced projects including Kvemo Bolnisi East which is due to advance to Feasibility Study.

The Board continues to evaluate opportunities through which to realise the value of its wider portfolio and reviews further assets which meet the Company's investment criteria.