Harvest Mi (di) Regulatory News (HMI)

3 February 2017

Harvest Minerals Limited

("Harvest" or the "Company")

Exercise of Warrants, Issue of Warrants and TVR

Harvest Minerals Limited ("Harvest" or the "Company") announces that it has received notice from Edwards Family Holdings Ltd ("EFH") for the exercise of its entire holding of 11,020,500 warrants over ordinary shares of no par value in the capital of the Company ("Ordinary Shares") ("Warrants") (the "Warrant Exercise"). All the Warrants exercised had an exercise price of 8.8 pence per Warrant and were issued to EFH as part of the placing announced by the Company on 12 November 2016. Accordingly, 11,020,500 new Ordinary Shares have been issued to EFH.

The Warrant Exercise will result in a gross cash inflow to the Company of approximately £970,000, which will be included in the Company's treasury.

Application has been made for admission of these 11,020,500 new Ordinary Shares to trading on AIM ("Admission") and it is expected that Admission will take place at 8.00 a.m. on 9 February 2017.

Following Admission, EFH will be interested in 33,061,500 Ordinary Shares, representing approximately 28.4 percentage of the Company's issued share capital as enlarged by the Warrant Exercise.

Issue of New Warrants and Related Party Transaction

The Company has issued, subject to approval by Shareholders (other than EFH), 2,755,125 new warrants to EFH, exercisable at 14.0 pence per Ordinary Share at any time before 31 December 2019 ("New Warrants"). The Company intends to convene the necessary shareholder meeting to approve the issue of the New Warrants shortly and will notify shareholders accordingly.

Following the Warrant Exercise and, assuming the issue of the New Warrants is approved, the Company will have a total of 3,518,125 warrants in issue.

As a result of the size of EFH's shareholding in the Company, it is deemed a related party of the Company under the AIM Rules for Companies. The issue of the New Warrants to EFH is therefore classified as a related party transaction. The Directors consider, having consulted with Strand Hanson, the Company's Nominated Adviser, that the issue of the New Warrants is fair and reasonable insofar as Shareholders are concerned.

Total Voting Rights

Following Admission, there will be a total of 116,508,589 Ordinary Shares in issue. The Company holds no shares in treasury. Shareholders should therefore use the figure of 116,508,589 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 Company, under the FCA's Disclosure and Transparency Rules.

Commenting on the update, Executive Chairman of Harvest, Brian McMaster stated:

"Harvest made significant progress last year, surpassing all our stated objectives including commencing trial mining and signing a LOI with a major offtake partner. This has been recognised by our major shareholder and its decision to exercise all of its warrants, not only endorses our ongoing strategy but allows us to strengthen our balance sheet."

This announcement contains inside information for the purposes of Article 7 of EU Regulation 596/2014.

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