Harvest Mi (di) Regulatory News (HMI)

Harvest Minerals Limited / Index: LSE / Epic: HMI / Sector: Mining

29 June 2021

Harvest Minerals Limited ('Harvest' or the 'Company')

Q2 2021 KP Fértil® Sales

Harvest Minerals Limited, the AIM listed remineraliser producer, is pleased to provide an update on sales of its organic, multi-nutrient, direct application fertiliser, KP Fértil®, during Q2 2021 from its 100% owned Arapua Fertiliser Project in Brazil ('Arapua').

Highlights:

· 17,854 tonnes of KP Fértil® sold in Q2 2021:

o 12% higher than management target of 16,000 tonnes.

o Represents a 174% increase in total tonnage compared to Q2 2020.

· Q2 sales performance keeps Company on track to meet 2021 sales target.

o Accumulated 2021 sales at 26,726 tonnes compared to 9,861 tonnes in H1 2020, or 171% increase.

o In 2020, 82% of the total sales were placed in the second half of the year, which has stronger sales seasonality.

· Further step-up in sales of KP Fértil® targeted:

o Marketing campaign for coffee, sugarcane, and other crops launched in May 2021.

o Initial sales of newly added higher margin 25kg bag option.

Brian McMaster, Chairman of Harvest, said: "Having sold 26,726 tonnes of KP Fértil® in the first half of the year, which represents a 171% increase over the same period of 2020, I am delighted to have outperformed our internal target and pleased to report that we remain on track to sell 80,000 tonnes for 2021. While much of this performance reflects the positive momentum of the agriculture sector in Brazil, credit should also be awarded to the operational accomplishments delivered over the past two years at the mine site including production, marketing, and logistics. I look forward to a robust performance over the second half of the year, which is seasonally the strongest period for the business."

Review of Operations

During the second quarter of 2021, Harvest sold 26,726 tonnes of its KP Fértil®, representing a 174% increase over the sales realised in the same period of 2020, and despite the continuing challenges imposed by the pandemic. The total accumulated sales in the first half of the year achieved 26,726 tonnes compared to 9,861 tonnes in H1 2020, a 171% increase. It should be noted that the Company is now entering a traditionally strong sales period; in 2020, 82% of the total sales were placed in the second half of the year. With this in mind, the Company is maintaining its year-end sales target of 80,000 tonnes of KP Fértil®.

The Company's team includes 12 associates/agronomists split into two regional teams, which is now also supported by its third-party network comprising 20 resales' centres. In May 2021, this team launched a new marketing campaign for coffee, sugarcane, and other crops, and boosted the Company's efforts towards the new marketing channels opened since it added the higher margin 25kg bag option that targets small to medium sized farmers and resellers. The Company has also started to actively market its KP Fértil® in other regions beyond its immediate market in Minas Gerais and Sao Paulo.

In terms of market fundamentals, notwithstanding the impacts of the COVID-19, the performance of the Brazilian agriculture sector continued to be robust over the period and several sector associations forecast double digit growth in most of the crops targeted by Harvest.

**ENDS**

For further information, please visit www.harvestminerals.net or contact: