Keras Resources Regulatory News (KRS)

Keras Resources plc / Index: AIM / Epic: KRS / Sector: Mining

17 October 2018

Keras Resources plc ('Keras' or the 'Company')

Calidus Resources Secures Strategic A$3.7 million Placement with Gold Producer Alkane Resources

Keras Resources plc, the AIM listed mineral resource company, is pleased to provide an update released by Calidus Resources Limited (ASX:CAI) ('Calidus') regarding the strategic placement of 125m Calidus shares at an issue price of A$0.0295 per share ( 'Placing Shares') to Alkane Resources Ltd ('Alkane') (ASX:ALK) to raise proceeds of approximately A$3.7m.

Calidus reports that the proceeds of this capital raising, together with Calidus' existing cash position, will provide sufficient funding for it to complete the upcoming resource update and pre-feasibility study ('PFS') at its Warrawoona Gold Project in the Pilbara of Western Australia.

Keras currently has 458m shares in Calidus, representing approximately 35% of the current issued share capital of Calidus. Following the admission of the Placing Shares to trading, Keras will have a shareholding of approximately 32.3% of the enlarged issued share capital of Calidus. On successful completion of the aforementioned PFS, an additional 265m performance shares of Calidus ('Performance Shares') owned by Keras will be converted into ordinary shares of Calidus.

HIGHLIGHTS

· Calidus to raise an initial A$3.7m via the placement of 125m shares to Alkane at A$0.0295 per share representing a premium of 13.5% over the last Calidus closing price and in line with the 5-day VWAP.

· Calidus to issue Alkane 70m free-attaching unquoted options, exercisable at A$0.035 each on or before 01 November 2019 - this has the potential to deliver another A$2.45m of funds to Calidus (if exercised)

· Strategic technical alliance as part of funding allows Calidus to leverage Alkane's operational experience and cost base to assist in its upcoming studies

· Alkane operates the Tomingley Gold Mine in New South Wales that last year produced 78,533oz Au

· Alkane has just approved the development of an underground mine at Tomingley and has embarked on an aggressive exploration programme to expand resources in the region

Russell Lamming, Chief Executive Officer of Keras, commented, "Calidus has successfully secured the requisite financing to progress Warrawoona up through the development curve to the completion of its pre-feasibility study. For Keras, this will not only provide a more tangible sense of the value and optimum path towards production, but it will also trigger the issue of our additional 265m performance shares.

"Alkane also brings to the table considerable expertise in the Australia gold development and production industry, and I am sure the Calidus board will find their support invaluable as the Calidus team look to issue the updated resource estimate, publish the PFS and advance Warrawoona towards first gold production."

The information in this RNS has been extracted from the ASX announcement made by Calidus Resources Limited on 17 October 2018. To view a full version of the Calidus announcement, which includes figures and maps, please click here: https://www.calidus.com.au/investors/asx-announcements/. For more information on Calidus and Warrawoona, please visit www.calidus.com.au.

For the purposes of MAR and Article 2 of Commission Implementing Regulation (EU) 2016/1055, this announcement is being made on behalf of Russell Lamming, Chief Executive Officer. This announcement contains inside information for the purposes of Article 7 of Regulation (EU) 596/2014.

**ENDS**

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Notes

Keras Resources plc is focused on building a strategic portfolio of resource assets. The Company provides investors with exposure to a strategic portfolio of development assets, including manganese, cobalt and nickel in Togo, West Africa, and also has a significant interest in a highly prospective gold exploration and development portfolio in Australia.

Keras benefits from a highly skilled management team, which has extensive operational experience in Africa and Australia with proven success in advancing assets up the value curve.