Kodal Minerals Regulatory News (KOD)

The information contained within this announcement is deemed by the Company to constitute inside information as stipulated under the UK Market Abuse Regulation.

Kodal Minerals Plc / Index: AIM / Epic: KOD / Sector: Mining

20 January 2025

Kodal Minerals plc

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

Power Generation Plant Installed and Operational at Bougouni Lithium Project

Kodal Minerals, the mineral exploration and development company, is pleased to announce that at its flagship Bougouni Lithium Project in Southern Mali ("Bougouni" or the "Project") the power generation plant is now operational and this "Power-On" milestone paves the way for full commissioning of the Stage 1 Dense Media Separation ("DMS") processing plant in the coming weeks. The construction and commissioning of the DMS processing plant at the Ngoualana open pit mine at the Project continues ahead of lithium Spodumene production, which is expected in the first quarter of 2025. The Project is fully funded through the US$117.5m Hainan funding transaction (as announced by the Company on 15 November 2023). This funding transaction includes a US$100m investment into Kodal Mining UK Limited ("KMUK"), a company owned 51% by the Hainan Group and 49% by Kodal, which is the developer of the Project.

Highlights:

· The power generation plant was efficiently installed at Bougouni and this important "Power-On" milestone paves the way for full commissioning of the DMS processing plant.

· Commencement of commercial production is on track for the first quarter of 2025 and construction costs remain within the US$65 million capital development budget.

· Both crushing modules are now installed, and all drives have been cabled to the power plant via the motor control centre ("MCC").

· The electrical cabling to the various drives within the DMS processing plant and cable terminations at the MCC are close to completion.

· Erection of structural steelwork at the DMS processing plant is fully completed.

· Electrical cabling in the field, motor terminations and piping installations are nearing completion in advance of full commissioning.

· Permits for the pumping of water from the Baoulé River are in place, and the water pump and piping system are now operational.

· All equipment, materials and spares are on site.

· Open pit mining activities at the Ngoualana deposit continue to advance ahead of commissioning. At last count, a total of just over 240,000 tonnes of ore with average grade of 1.17% Li2O, were mined in preparation for commissioning, representing almost three months of ore processing.

· The on-site laboratory is now fully operational.

Bernard Aylward, CEO of Kodal Minerals, remarked: "The team on site has performed fantastically to successfully finish the installation of the power generation plant and achieve the important "Power-On" milestone at Bougouni. Piping and electrical cabling has also continued to advance, and we are looking forward to commissioning of the DMS processing plant in the coming weeks ahead of first commercial production later this quarter. Achieving this crucial "Power-On" milestone is a critical step for Kodal and its aim of being one of the first Lithium producers in West Africa and the first London-listed lithium producer. We look forward to delivering on these firsts and continuing the growth of the Company."

FURTHER INFORMATION

Construction and Commissioning

A fully functional power generation plant is the first important step in the DMS processing plant commissioning phase. It provides the means to test all the drives, electrical and instrumentation systems within the DMS processing plant. The power plant generators arrived on site in mid-December 2024, and the site team worked tirelessly to successfully complete the installation, cabling and testing of the equipment, to achieve this important "Power-On" milestone.

Both crusher modules are now fully installed, and cabling for all drives has been terminated at the MCC. Both modules can now be operated via the power generation plant and provides the Company with the opportunity to build a stockpile of crushed ore in advance of the full commissioning of the DMS processing plant.

Construction is close to completion and design verification checks have commenced. This will be followed by directional testing of all the drives via the MCC. Once all drives are operational and instruments tested, the DMS processing plant will be commissioned using water and air to ensure all systems and control loops operate as designed.

When these tasks are complete, full commissioning will start with the introduction of ore.

The water supply system has been commissioned and is now operational. This process included obtaining the permit from local authorities, installation of the Baoulé River water pump and piping, and completion of the raw water pond adjacent to the plant.

Mining

Mining activities have continued to progress smoothly. A total of just over 240,000 tonnes of ore, grading on average 1.17% Li2O, has been mined in preparation for commissioning. That represents almost three months of ore processing and provides the advantage that the DMS processing plant commissioning will not be hampered by insufficient mined ore.

There are also just over 50,000 tonnes of low-grade ore (grading circa 0.40% Li2O) that has been stockpiled separately from the high grade. The low-grade ore will be used initially during the early commissioning phase to bed down the circuit performance before introducing high grade ore. Longer term, the low-grade stockpile will provide a buffer that can be blended with the high-grade ore in the unlikely event that mining operations are impacted. The mining plan objective is to ensure that mined ore is always a step ahead of processing rates throughout the mine's life.

The on-site laboratory is now operational and will improve the efficiency of ore mining in the pit as grade control samples will not need to be sent off-site for analysis. The laboratory will also provide all testing required for the operation of the DMS plant.

**ENDS**

For further information, please visit www.kodalminerals.com or contact the following:

The exploration results and activity reported in this announcement have been reviewed by Mr Bernard Aylward who is a Member of the Australasian Institute of Mining and Metallurgy. Mr Aylward has sufficient experience that is relevant to the style of mineralisation and type of deposit under consideration and to the activity being undertaken to qualify as a Qualified Person as defined in the AIM Note for Mining and Oil & Gas Companies dated June 2009. Mr Aylward consents to the inclusion in this announcement of the matters based on his information in the form and context in which it appears.