Kazera Global Regulatory News (KZG)

5 July 2023

Kazera Global plc ("Kazera" or "the Company")

Corporate And Operational Update

Kazera Global plc, the AIM-quoted investment company, is pleased to provide an update on key corporate and operational developments.

Highlights

· Strategic shareholder African Mineral Sands Pte Ltd Singapore ("AMS") purchased a further tranche of Kazera's Ordinary shares from an existing shareholder at 1.5p per share, triggering the transfer of voting rights to AMS over 29.9% of the Company's Ordinary Shares currently in issue

· Pilot plant at Whale Head Minerals showing very promising Heavy Mineral Sand ("HMS") results with sample and test results forming the basis for informed strategic discussions with potential offtake partners

· HMS samples indicate presence of higher value minerals including rutile, zircon, and monazite. Samples identified to have raised levels of radioactivity and the Company has engaged with the National Nuclear Regulator to determine whether any specific permitting is required

· Aggregate proceeds received to date of US$4.2 million from Hebei Xinjian Construction ("Xinjian") in respect of the sale of African Tantalum (Pty) Ltd in Namibia ("Aftan"), as announced on 22 December 2022. The situation remains under review

· Strengthened relationship and cooperation with Alexkor RMC JV ("Alexkor RMC JV"), a joint venture between Alexkor and the Richtersveld Mining Company, a company formed to represent the interests of Alexkor and the Richtersveld community

· New heavy equipment on site at Deep Blue Minerals diamond project, providing greater flexibility on mining locations

Dennis Edmonds, Kazera Chief Executive Officer, commented: "The Company continues to make significant progress at both a corporate and operational level. Of particular importance is the increased cooperation and positive relationship between Kazera's subsidiaries and Alexkor RMC JV, as we work together to create job opportunities for the local Richtersveld Community.

"The completion of the acquisition of a further tranche of Kazera shares by AMS is also a significant, positive development for Kazera. AMS now holds voting rights through shares it has acquired to date, and via agreements with Catalyse Capital Ltd and its related parties, of more than 29.9% of the shares in the Company. Kazera has already begun exploring potential new investment opportunities put forward to the Company by AMS.

"Whilst the presence of radiation in HMS samples may be seen by some as an issue, it is a situation that is not uncommon in the Heavy Mineral Sands sector and has, equally importantly, helped highlight the presence of higher value minerals in our HMS samples. The detailed baseline study that has been conducted and other associated work will allow us to seek clarification on permitting, as well as tailor our operations and inform our approach to environmental management and rehabilitation. Whilst on a basic level any delay is frustrating, the testing and sampling work we have undertaken has highlighted the economic case for separation as it will ultimately result in the sale of higher value HMS constituents, rather than a lower price for the basic HMS product.

"We will ensure we use the time (whilst gaining clarification from the relevant authority) to continue with the procurement of equipment, site preparation and construction, and in progressing discussions with potential offtake partners, so that we put ourselves in the strongest possible position for the commencement of HMS sales."

New Strategic Shareholder

The Company was notified on 29 June 2023 that African Mineral Sands Pte Ltd Singapore ("AMS") has completed the purchase of a further tranche of shares from Catalyse Capital Ltd and its related parties, including R S & C A Jennings and Align Research Ltd, and that the completion of this tranche means that voting rights over all shares still owned by Catalyse Capital Ltd and its related parties have transferred to AMS.

As per the terms of the transaction referenced in the Company's RNS dated 16 March 2023, AMS is purchasing up to 280 million Ordinary Shares (representing up to 29.9% of the Ordinary Shares currently in issue) in a series of tranches during 2023 at a price of 1.5p per Ordinary Share.

The completion of this tranche of shares means AMS now owns 60,00,000 Ordinary Shares in the Company representing 6.4% of Ordinary Shares in issue.

AMS and its associated partners have extensive experience in mining and infrastructure projects in Southern Africa and the Company believes the addition of AMS as a strategic investor is a positive development, which will provide Kazera with new opportunities for growth and development. AMS and its partners have been investors and offtake partners in the HMS business over the past five years.

Whale Head Minerals ("WHM") (60% interest) - Heavy Mineral Sands

The Company continues to make good progress on the Heavy Mineral Sands("HMS") project at Walviskop. The pilot plant, which incorporates an HMS circuit and double decker Horizontal Vibrating Screen, was installed in May 2023 and testing has revealed very promising results which the Company has been continually including in process alternatives, whilst also allowing the Company to determine the exact make-up of its HMS and guide its initial thinking on processing plant design.

Samples and test results from the pilot plant have also formed the basis for informed strategic discussions with industry experts and off-take partners on the short and long term potential of the Company's HMS. From these discussions, initial findings suggest that the Company's HMS has a heavy mineral content of approximately 62%, with around 55% of the resources classified as "saleable heavy minerals". Indicative pricing for the basic (unseparated) product is $160 per ton, but by undertaking further separation the price is expected to be approximately double this whilst, importantly, transport costs would remain at the same.

During the Company's testing, several samples were identified to have raised levels of radioactivity resulting from the presence of minerals such as rutile, zircon, and monazite, which typically have a much higher commercial value than ilmenite. Whilst radioactivity in HMS is not an uncommon occurrence, it does mean that the Company has engaged with the National Nuclear Regulator ("NRR") to determine whether any specific permitting is required prior to the production and sale of the Company's HMS products.

To guide this discussion and any possible application for exemption / additional permitting, a comprehensive baseline study of radioactivity has been conducted across all areas of Walviskop, including areas where the Company's HMS will be stored, processed, and transported. In addition, a Workers Safety Report and Operating Procedures are being compiled by a third party and should be completed by mid-August 2023 at the latest.

If a permit is required, the application could take between three and nine months whereupon the Company will immediately commence production and sales of the higher value HMS products.

 The Company is using this time to undertake more sampling to confirm previous results and continue construction and area preparation for both the plants in Walviskop Bay. This includes the erection of a Trommel screening plant which is under construction by a third party in South Africa and remains on track for completion by the end of September 2023.

Further, the Company is in the process of creating drying, bagging, and loading facilities within a secure area recently supplied to the Company by Alexkor RMC JV. Alexkor RMC JV recognises the value of the project in terms of opportunities for the local community and the Company's increasingly positive and collaborative relationship with Alexkor RMC JV has also resulted in it being provided administration buildings, entrance /exit facilities and a sheltered and secure workshop facility for the repair, maintenance and storage of the Company's plant and machinery.

The provision of these secure sites and facilities will benefit both the Company's HMS operation and diamond project and should result in significant cost savings going forward.

Sale of Aftan

Under the terms of the agreement announced on 20 December 2022 in respect of the sale of the Company's interest in Aftan (the "Agreement"), Xinjian was due to have paid US$3.0 million not later than 31 January 2023 and a further US$3.1 million (excluding interest) by the end of June 2023 (aggregate c.$6.1 million).

To date, Hebei Xinjian Construction ("Xinjian") has arranged aggregate payments of US$4.2 million (including c.US$0.6 million deemed to have been paid in respect of a Contribution and Exclusive Marketing and Sales Agency Agreement).

Xinjian is currently not in compliance with the Agreement, with payment arrears of c.US$1.9 million (excluding interest). Nonetheless, at this time the Company has elected not to exercise its contractual rights to terminate the contract given that:

· Under the terms of the sale agreement with Xinjian, Kazera retains ownership of 100% of the shares in Aftan as security until all amounts owed by Xinjian have been paid in full.

· All ongoing operation costs in respect of the Aftan business have been borne by Xinjian since the beginning of 2023

· Communication between Kazera and Xinjian remains positive and constructive, with the Company believing that outstanding balances will be forthcoming

· Outstanding balances are accruing interest at a rate of 8% per annum.

Nonetheless, the Company is also exploring alternatives avenues for the future of Aftan should Xinjian not be able to fulfil its contractual obligations, including seeking an alternative buyer.

Payments from Xinjian to date have been received, and are held in, multiple currency denominations. In determining the amounts stated as received, the Company has applied the exchange rate of 18.8275 being the NAD:USD exchange rate quoted as at 30 June 2023. The weighted average exchange rate quoted for the period, was 17.6212. The exchange rate quoted on a given date is not usually the actual exchange rate achieved.

Deep Blue Minerals (60% interest) - Diamonds

The Company has purchased new heavy plant, including a Front-end Loader and a 75 ton Low-bed transporter, to allow the sharing of equipment between Deep Blue Minerals' diamond project and Whale Head Minerals' HMS project. Whist clarification is sought on the next steps on its HMS project, this equipment will be used to target areas which contain prospective high quantities of diamond gravel.

Deep Blue Minerals will then bring in its 70 ton excavator to remove overburden, which is several meters deep in places, and move it on to do the same at the next site. A smaller excavator will then follow to remove the gravels and place them in Deep Blue Minerals' screening process, which is now in operation, with screened product then being subject to secondary screening at Alexkor RMC JV' Muisvlak plant before going to the Final Sorting Plant in Alexander Bay.

The Company believes that this will create a very cost-effective approach to focussing on potentially rich diamond deposits which the Company anticipates will contribute substantially to cashflow and cover operating costs of WHM.

In the meantime, diamond production continues from the existing site and plant with processing of DMS concentrates being undertaken at Muisvlak, for final sorting at Alexkor. The most recent Alexkor cycle closed on 4 July 2023; processed diamond stocks will now be sold by Alexkor on open tender, on behalf of Deep Blue Minerals, per Alexkor's usual process.

ENDS

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

Notes

Kazera is a global investment company focused on developing early-stage assets towards meaningful cashflow and production in the resource sector. Its current assets include a diamond mine and heavy mineral sands production in South Africa. The Company intends to leverage its unique board expertise, investment capability and operational proficiency, to facilitate exceptional cash generation and shareholder growth.