Cadence Mineral Regulatory News (KDNC)

Cadence Minerals Plc

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

Bacanora Lithium (BCN) Feasibility Study Estimates €428 million NPV and 27.4% IRR for Zinnwald Lithium Project.

Cadence Minerals (AIM/NEX: KDNC; OTC: KDNCY) is pleased to note the announcement today by Bacanora Lithium (AIM:BCN) ("Bacanora") regarding the results of the NI 43-101 Feasibility Study ('FS') for the Zinnwald Lithium Project in Germany ('Zinnwald' or 'the Project') which confirm the positive economics and favourable operating costs for the production of 5,112 tonnes per annum ('tpa') (~7,285 tpa LCE) of battery grade Lithium Fluoride ('LiF'), a high value, downstream product used in the manufacture of lithium battery electrolytes for the European electric vehicle industry. With a long life of project of 30 years, the FS estimates a pre-tax project Net Present Value ('NPV') of €428 million (8% discount rate); an Internal Rate of Return ('IRR') of 27.4%; favourable Life of Mine ('LOM') operating costs and a 46% EBITDA operating profit margin.

Bacanora is a lithium exploration and development company. Cadence holds approximately 1.7% of Bacanora's equity and 30% of Mexalit and Megalit joint venture companies. Mexalit is the owner of the El Sauz, El Sauz 1, El Sauz 2, Fleur and Fleur 1 mineral concessions, which forms part of the 20-year mine plan of the Sonora Lithium Project in Northern Mexico.

Announcement Highlights:

Confirmed strong economic potential

· Estimated Project pre-tax IRR of 27.4%; NPV of €428 million (8% discount rate)

· Estimated Project post-tax IRR of 21.5%, NPV of €270 million with a project payback of 6.1 years

· Average LOM annual earnings before interest, taxes, depreciation and amortisation ('EBITDA') estimated at €58.5 million per annum

· Long life project with the 30 year FS mine plan equating to less than 50% of the current identified mineral resources

· Base case 30 years revenue and EBITDA estimated at €3.86 billion and €1.75 billion respectively

Zinnwald: a significant lithium deposit, strategically positioned in Germany's industrial heartland

· Total Mineral Reserve (Proven and Probable) estimate of 31.20 million tonnes ('Mt') of ore at a grade of 3,004 ppm containing 94 thousand tonnes ('kt') of contained lithium ('Li')

· Demonstrated Mineral Resource (Measured and Indicated) estimate of 35.51 Mt of ore at a lithium grade of 3,519 ppm, containing 125 kt of Li

· Deutsche Lithium also owns the exploration licences for the lithium deposits of the claims "Falkenhain" and "Altenberg DL" which have the potential to significantly increase Zinnwald's resource base and Project life

· Conventional flow sheet uses established sulphate route processing technology

· Integrated plant designed to process approximately 570,000 tpa of ore (LOM average)

· Capital cost estimate of €159 million includes mining, processing plant, infrastructure, tailings management, general administration costs as well as the requisite contingencies

· FS includes sale of 32,000 tpa of by-product potassium sulphate ('SOP', 'K2SO4') to the European fertiliser industry

Next Steps: advance Zinnwald towards production to satisfy expected continued growth in demand for lithium driven by growing sectors such as electric vehicles and energy storage

· Subject to Board approvals and other key milestone events, project detailed design is expected to commence in H1 2020

The full release can be found at: https://www.londonstockexchange.com/exchange/news/market-news/market-news-detail/BCN/14098768.html

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

- Ends -

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.

Forward-Looking Statements:

Certain statements in this announcement are or may be deemed to be forward-looking statements. Forward-looking statements are identified 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 reflect 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.