Cadence Mineral Regulatory News (KDNC)

Cadence Minerals Plc

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

Progress at the Amapá Iron Ore Project and Corporate Update

Cadence Minerals (AIM/NEX: KDNC; OTC: KDNCY) is pleased to provide an update on the developments at the Company's flagship Amapá Iron Ore Project in Brazil ("Amapá Project"), with updates also provided on our other investments.

Highlights:

· Optimisation studies to reduce Amapá plant capital expenditure are nearing completion.

· An additional processing flow sheet is being developed to increase product quality to 67% iron ore concentrate.

· Operational environmental licensing at the Amapá Project is on schedule, with the expected grant of the installation licenses over the mine, wholly owned port, railway, beneficiation plant and mine during 2024.

· Project financing discussions continue, with expressions of interest in project equity financing. This is in addition to the current MoU with TCIDR for the debt financing of the Amapá Project.

Cadence CEO Kiran Morzaria commented: "I am delighted to report that the Amapa project has taken a substantial series of steps forward since we announced the MoU with TCIDR in October 2023. The Board fully expects to be able to deliver cost savings once the capital and operating expenditure review is complete, added to which the engineering team have identified a flowsheet which can produce a 67% concentrate product instead of the previously proposed 62% and 65% product mix. This will mean an improvement in margins and project economics, building upon an already robust U$949 million net present value."

"As we remain on schedule to secure the installation licences by the end of this year, we are seeing expressions of interest from potential partners to invest into the project equity finance element. Once completed, the recommissioned Amapá mine can restart production."

"Your Board have also completed the sale of Hastings Technology Metal shares, delivering a 30% realised return, which has been immediately reinvested into Amapá, with the cancellation of our Aquis listing also delivering a further cost saving. I look forward to reporting on our further investment, our equity stake and on operational progress at Amapá in the coming weeks."

Amapá Project Optimisation Studies

During 2023, our joint venture company Pedra and Branca Alliance ("PBA") made significant progress in the development of the Amapá Project, including the publication of a Pre-Feasibility Study ("PFS") on the project with a US$949 million net present value.

Late last year, PBA engaged an engineering firm to review the processing plant flowsheet to reduce capital and operating expenditure and, if possible, improve the product quality, all of which, if successful, would further improve the project economics. The Board are pleased to report that the capital and operating expenditure review is nearing completion, and we envisage that this review will deliver capital and operating cost savings.

In addition, the engineering consultants are developing a flowsheet to increase product quality to 67% iron ore concentrate. To report this at a PFS level, PBA will need to send approximately two tonnes of run-of-mine samples to verify the viability of the proposed flowsheet and to finalise capital and operating costs, which, on a preliminary basis, do not appear materially different to those forecast in the PFS.

We expect to be able to fully report on the capital savings in the next quarter, although the improved product quality will take longer given the flow sheet testing required. If successful, the latter's impact will be significant, as a 67% product would represent a premium of between US$10 and US$15 per tonne over our proposed 62% and 65% product mix.

Given the above potential improvements and discussions with potential development partners, we have determined that it is best for the timeline to incorporate the feasibility study into the project's implementation phase.

Amapá Project Licensing Update

In September last year, we announced PBA's timeline for obtaining installation licences for the construction and rehabilitation of the mine, plant, rail, and port at the Amapá Project. We are pleased to report that this is on track at the time of writing, and we expect all the licences to be awarded during 2024. The grant of installation licenses is a prerequisite for any material rehabilitation or construction.

Amapá Project Equity Financing

In October 2023, the Amapá Project executed a Memorandum of Understanding ("MoU") with Tianjin Cement Industry Design & Research Institute Co., Ltd ("TCIDR") for the debt financing of the project. PBA is now focusing on equity project financing, has received expressions of interest, and continues to advance these. The Board will report further as these discussions progress.

Amapás Development of Joint Venture Iron Ore Mineral Resources on the Tucano Gold Mine

In addition to the Amapá Project's current inventory of 276.24 million tonnes of measured, indicated and inferred mineral resources at 38.33% Fe there is further 143.5 million tonnes at 36.77% of historical resource on the adjacent concessions owned by the Tucano Gold Mine. In addition, during the mine's operation, the previous owners identified four areas within the Tucano Gold Mines tenement with a mineral potential of around 500 million tonnes of iron ore.

The Amapá Project has a right to explore and mine these areas for iron ore, which are governed by various joint operating agreements

Now that the Tucano Gold Mine plans to restart its operations, we have been in discussions and have requested the complete set of geological data, including drill data and assay results, to review the historic mineral resource, with the target of bringing these mineral resources into the mine plan, extending the mine and improving the economics.

Cadence Interest in the Amapá Project

At the end of September 2023, Cadence's total investment in the Amapá Project stood at approximately US$12.1 million, with the equity stake in the project standing at 32.6%. Since then, Cadence has continued to invest in the Amapá Project, and a further updated equity position will be provided at the end of March 2024.

Cadence's Interest in Hastings Technology Metals ("Hastings")

On 25 January 2023, Cadence completed the sale of its 30% interest in several mineral concessions forming part of the Yangibana Rare Earths Project for 2.45 million Hastings shares. At the end of February 2024, Cadence disposed of its interest in Hastings Technology Metals. The realised return on our original acquisition of 30% of the mineral concessions is approximately 30% and the proceeds of the sale have been reinvested into the Amapá project.

Notice of Cancellation of Trading on the AQSE Growth Market ('Aquis')

The Company currently has a dual listing on the AIM market of the London Stock Exchange and the AQSE Growth Market of the Aquis Stock Exchange. The Board has decided to seek the cancellation of its dual listing on Aquis, in order to improve operational and financial efficiencies.

As the Company will retain its AIM listing on the London Stock Exchange, the Company is not required to send a circular and seek shareholder approval of a resolution to cancel in accordance with Rule 5.3 of the AQSE Growth Market Rule Book.

In accordance with the procedures of the AQSE Growth Market, the Board anticipates that the cancellation will be completed on or around 5 April 2024.

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.

Cautionary and Forward-Looking Statements

Certain statements in this announcement are or may be deemed to be forward-looking statements. Forward-looking statements are identi?ed 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 re?ect 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.

The information contained within this announcement is deemed by the company to constitute Inside Information as stipulated under the Market Abuse Regulation (E.U.) No. 596/2014, as it forms part of U.K. domestic law under the European Union (Withdrawal) Act 2018, as amended. Upon the publication of this announcement via a regulatory information service, this information is considered to be in the public domain.