Kazera Global Regulatory News (KZG)

21 June 2022

Kazera Global plc

("Kazera" or the "Company")

Acquisition of Rare Earth Elements Project in Kenya

Kazera Global plc, the AIM quoted investment company, is delighted to announce the signature of Binding Heads of Terms for the proposed acquisition of a 71% interest in Great Lakes Graphite (PTY) Ltd ("Great Lakes Graphite"), which owns 100% of 3 exploration licenses covering the Homa Bay and Buru Hill Rare Earth Elements projects (the "Project") in Kenya.

This is in accordance with the Company's investing policy to achieve shareholder returns through direct investments in companies and accretive projects in Africa within the mining and resource sectors.

Transaction Highlights

· Acquisition of controlling interest in the Homa Bay and Buru Hill exploration licenses in Kenya which comprises of Rare Earth Element exploration opportunities

o  Rare Earth Elements are a major constituent material in the manufacturing of magnets which are used for electronic vehicles and turbines

· New country entry, in an area of significant local and national infrastructure, supported by a new, progressive Mining Act and fast-growing exploration and mining presence

· Two initial exploration targets:

o  Buru Hill's PL305 license, which has a previous JORC compliant exploration target of 27Mt @1.89% grade for 510Kt Total Rare Earth elements ("TREO's") and;

o  Kuge area, PL303 licence, which has demonstrated extensive zones of elevated Light Rare Earth Elements within drilling along a strike length of 500m

· At-surface mineralisation presents highly favourable conditions for economic recovery

· JORC Compliant Resource and Scoping Study expected within 6 months

· Planned, low-impact work programme to progress licences to the granting of a Definitive Feasibility study for a cost of up to US$2.5m, funded via future cash flows

· Historic detailed data estimates approximately 65,000 tonnes of Ce, 52,000 tonnes of Lanthanum and 18,000 tonnes of Nd from an assumed low recovery rate of 50% of the top 50m layer of the resource

· Terms of the acquisition are found below

Dennis Edmonds, Chief Executive Officer of Kazera commented:

"At Kazera, we are continually looking at new and exciting opportunities to deliver shareholder value both through operational delivery, but also through accretive acquisitions. The acquisition of a 71% interest in Great Lakes Graphite, gives the Company a unique exposure to three highly exciting exploration licenses which have demonstrable potential for economic delivery of some of the most important materials for the 21st century.

"With our diamond operation already in production, tantalum about to come on stream and the expected imminent resolution of the issues around our HMS licence, the Company will soon have three separate revenue streams. This acquisition represents an exciting new opportunity for our Company to utilise its increasing cash flow to deliver material growth and a step change in outlook for our shareholders."

Rationale and Background to the Acquisition

Kenya is a stable country with an established infrastructure. Great Lakes Graphite own 3 licences in near proximity to each other in Kenya, covering a total area of 346 square kilometres. The majority of historical work has only been done in one licence area, Buru Hills, which has a JORC compliant exploration target of 27Mt at a grade of 1.89% Total Rare Earth Elements. The licence areas are all near established rail and road transport links and proximate to large towns.

Establishing a JORC compliant Resource and Scoping Study will only take approximately 6 months and will require a detailed survey as well as resampling of the core samples and revised modelling to calculate revised tonnages and grades. We anticipate having a Definitive Feasibility Study in hand within 24-30 months. Extensive historical work has been already been undertaken and a vast amount of information on the project already exists.

Transaction Details

As per the terms of the acquisition, Kazera will acquire a 71% interest in Great Lakes Graphite. The acquisition is for in aggregate £750,000 to be paid for in three stages with all consideration to be satisfied by the issuance of shares in Kazera to the vendors. Completion of the various stages of the planned work programme are as follows:

· First tranche, of £250,000 at 1.5p per share, locked in for one year.

· Second Tranche, of £250,000 at completion of the Definitive Feasibility Study ("DFS"), at the lower of 2.5p per share or the 10 days VWAP preceding the DFS RNS announcement, also locked in for one year.

· Third Tranche, of £250,000 on initial ore production at the lower of 2.5p per share or the 10 days VWAP preceding the RNS announcement of initial production. No share lock in.

Identified exploration milestones will be funded by Kazera and will lead to completion of a DFS and facilitate the granting of a Mining License over the project. Cumulatively, these technical milestones are expected to cost up to US$2.5m and will be funded through the Company's cash flows. Completion of all milestones is expected to take 24-30 months.

As part of the transaction, Kazera will also grant an option to Caracal Investments Limited ("CI") to acquire 20% of Great Lakes Graphite Pty Ltd for the sum of $1m. This option period will run for 18 months from the period of execution. Assuming the exercise of the option the shareholding of Great Lakes Graphite will be 51% Kazera, 20% CI and 29% current shareholders.

If CI elect to not exercise the option, the current shareholders in Great Lakes Graphite can take over the option on the same terms.

This announcement contains inside information for the purposes of Article 7 of Regulation (EU) No. 596/2014 ('MAR').

For further information on the Company, visit: www.kazeraglobal.com

**ENDS**