Harvest Mi (di) Regulatory News (HMI)

4 August 2022

Harvest Minerals Limited

("Harvest" or the "Company")

Miriri Phosphate Project Update

Following on from the Company's announcement on 29 November 2021, Harvest Minerals Limited, the AIM listed fertiliser producer provides the following update in relation to the Miriri Phosphate Project (the 'Project') in the State of Pernambuco, Brazil.

As announced on 29 November 2021, Harvest entered into a share purchase agreement to acquire the entire issued share capital of BF Mineração Ltda, which owned the Project.  Following the acquisition, Harvest's in house geological team has undertaken detailed due diligence in respect to the geology including a total of 38 auger and drill holes and additionally Harvest has completed a marketing and feasibility assessment of the Project's economic merits.

Following this due diligence process, Harvest has made the decision to not proceed with the Project because both the geological and economic merits did not reach Harvest's minimum investment criteria. Specifically, Harvest concluded that a direct shipping operation would not be possible as the majority of the ore is at depth and the extraction of the ore and corresponding over burden rendered the Project relatively uneconomic.

Accordingly, Harvest has terminated its agreement with the Vendors (as defined in the Company's 29 November 2021 RNS) and relinquished its interest in the Project. No further payments are due to the Vendors.

Brian McMaster, Chairman of Harvest, said: "Since identifying the Arapua Project in 2015, Harvest has been actively looking for further greenfield and advanced projects to expand our reach. It is proving very difficult to identify and secure appropriate projects which illustrates the importance of Arapua as a secure, organic, domestic fertiliser source. We had high hopes for Miriri project, and it is disappointing that the detailed due diligence didn't reconcile to the historical data. That said, we will continue to look for greenfield and advanced projects as we grow our position within Brasil. We have said for a long time now and it continues to be true, we have the right commodity, in the right place at the right time.".

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