Cadence Mineral Regulatory News (KDNC)

Cadence Minerals Plc

("Cadence Minerals", "Cadence", or "the Company")

Investment Update

Cadence Minerals (AIM/NEX: KDNC; OTC: KDNCY) is pleased to update shareholders on the progress of its principal investments.

Highlights:

· Completion of Amapa Ore Reserve Estimate supports planned 15-year mine life

· Cadence increases Amapa stake to 30% through conversion of loans, capitalisation of management, consultancy, admin and cash investment. No additional capital raising required.

· European Metals Holdings ("EMH") reports significant developments with the Cinovec Lithium Chemical Plant ("LCP") extraction process, which is expected to is expected to reduce both Capex and Opex in the LCP by 10-20%.

· Following the sale of stakes in Lithium Technologies and Lithium Supplies ("LT & LS"), Evergreen Lithium Pty Ltd is progressing with its listing on the Australian Stock Exchange.

· Following the sale in working interests in the Yangibana Rare Earths project ("Yangibana") tenements to Hastings Technology Metals (ASX: HAS), we expect various regulatory approvals to be completed by the end of the year.

Cadence CEO, Kiran Morzaria, commented: "I am delighted to report that we have taken several significant steps forward with our flagship Amapa project. The decision to convert loans and other costs into an increased stake in Amapa was almost a formality following successful completion of the ORE and the consequential progress with the PFS. With the steady increase in project value, your board are genuinely excited at the development prospects of Amapa."

I look forward to reporting further progress across all our projects in the coming months."

Amapa Iron Ore Project ("Amapa" or the "Project")

Cadence announced in early October the completion of an upgraded and increased Mineral Resource Estimate ("MRE"). The Measured and Indicated portion of this MRE has been used to calculate the Ore Reserve Estimate ("ORE"). The ORE represents the economically mineable part of a Measured and Indicated Mineral Resource. It includes diluting materials and allowances for losses, which may occur when the material is mined or extracted and is defined by our Pre-Feasibility Study ("PFS").

We are happy to report that the ORE has been completed, and the results support the planned 15-year mine life. The JORC 2012 compliant statement and supporting disclosures will form part of the PFS publication, which is still scheduled for publication this quarter.

Given the excellent progress at Amapa and the economics of the asset, Cadence intends to increase its stake from 27% to 30% while still retaining its previously announced first right of refusal to acquire 49% of the asset.

Cadence will earn this additional three per cent via the conversion of loans that the Company has made to the Project, the capitalisation of management, consultancy and other admin cost and further cash investment in the Project. The total value of these three items is approximately US$3.3 million. Cadence requires no additional capital raising to increase its stake

Once complete, Cadence will have acquired 30% of Amapa for approximately US$9.3 million. Anglo-American valued its 70% stake in Amapa at US$ 462 million (100% US$ 660 million).

European Metals Holdings ("EMH")

EMH has announced significant developments in the processing flowsheet for the Cinovec vertically integrated battery metals project ("Cinovec") in the Czech Republic.

Highlights

• The simplified Lithium Chemical Plant ("LCP") extraction process has delivered exceptionally clean battery-grade lithium carbonate

• LCP has the capability to deliver very high-purity lithium hydroxide, lithium carbonate, lithium sulphate or lithium phosphate

• The simplified process is expected to reduce both Capex and Opex in the LCP by 10-20%.

• LCP recoveries of 88-93% lithium proven in locked-cycle testwork, an outright recovery improvement of 3-6% over locked-cycle testwork for earlier, more complex flowsheet

• LCP pilot programme to commence in 4Q CY22 with marketing samples available to offtake partners in 1Q CY23; pregnant leach solution containing 48kg of lithium carbonate equivalent is ready to be processed

Link here for the full EMH announcement: https://www.investi.com.au/api/announcements/emh/a4072882-271.pdf

Other Investments

In July 2022, Cadence sold its 31.5% stake in Lithium Technologies and Lithium Supplies ("LT & LS") to Evergreen Lithium Pty Ltd ("Evergreen"). This was for an initial consideration of AS$3.16 million (£1.81 million)in Evergreen shares, with a further AS$6.63 million (£3.80 million) due in Evergreen equity on the achievement of certain performance milestones Evergreen is progressing with its listing on the Australian Stock Exchange. We anticipate that this will be completed by the end of this year.

The full announcement concerning the LT & LS sale is available here.

In June 2022, Cadence entered into a binding agreement to sell its working interests in the Yangibana Rare Earths project ("Yangibana") tenements to Hastings Technology Metals (ASX: HAS) ("Hastings") for A$9 million (£5.1 million) to be satisfied by the issue of fully paid ordinary Hastings shares. Cadence's 30% interest in tenements covers a small portion of Yangibana and potentially represents one year of the 16-year mine life. Cadence and Hastings are awaiting various regulatory approvals, and we anticipate that this will be completed by the end of the year.

The full announcement concerning the Yangibana sale is available here

Qualified Person

Kiran Morzaria B.Eng. (ACSM), MBA, has reviewed and approved the information contained in this announcement. Kiran holds a Bachelor of Engineering (Industrial Geology) from the Camborne School of Mines and an MBA (Finance) from CASS Business School.

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.

Forward-Looking Statements

Certain statements in this announcement are or may be deemed to be forward-looking statements. Forward-looking statements are identied by their use of terms and phrases such as "believe" "could" "should" "envisage" "estimate" "intend" "may" "plan" "will" or the negative of those variations or comparable expressions including references to assumptions. These forward-looking statements are not based on historical facts but rather on the Directors' current expectations and assumptions regarding the Company's future growth results of operations performance, future capital and other expenditures (including the amount, nature and sources of funding thereof) competitive advantages business prospects and opportunities. Such forward-looking statements reect the Directors' current beliefs and assumptions and are based on information currently available to the Directors. Many factors could cause actual results to differ materially from the results discussed in the forward-looking statements including risks associated with vulnerability to general economic and business conditions competition environmental and other regulatory changes actions by governmental authorities the availability of capital markets reliance on key personnel uninsured and underinsured losses and other factors many of which are beyond the control of the Company. Although any forward-looking statements contained in this announcement are based upon what the Directors believe to be reasonable assumptions. The Company cannot assure investors that actual results will be consistent with such forward-looking statements.