Kazera Global Regulatory News (KZG)

Kazera Global plc

("Kazera" or the "Company")

Favourable Walviskop Mining Permit Decision

Kazera Global plc, the AIM quoted investment company, is pleased to advise that the Department of Mining and Mineral Resources has dismissed a third party's appeal against the grant of a mining permit to the Company's 60% owned subsidiary Whale Head Minerals (Pty)Ltd ("WHM"). WHM now expects to shortly receive final documentation allowing it to commence production operations of heavy mineral sands ("HMS") at the Walviskop mine in South Africa.

Ore production from the JORC compliant resource at the Walviskop mine is expected to generate positive cashflow from operations within six months of receipt of the Mining Permit being granted over a 5Ha beach sand deposit at Walviskop. Walviskop sits within the diamond mining operations of the Company's other South African subsidiary, Deep Blue Minerals.

 Highlights

Background on HMS Deposits

The opportunities represented by the HMS deposits in the vicinity of Alexander Bay/Port Nolloth were recognized as early as 2016. Previous access to these deposits had been made difficult by their location within the highly protected diamond mining areas on the West Coast. These HMS deposits contain substantial diamond deposits which means that HMS miners cannot obtain permission to mine them. However, conversely, the density of the HMS makes it prohibitively expensive for diamond miners to extract diamonds. With Deep Blue, a Kazera subsidiary, having the right to mine diamonds and Whale Head holding the rights to mine HMS, the Company has overcome these issues. Further efficiencies will also be gained in the mining process during the first stage in the separation process as the gravel (containing diamonds) is separated from the sand (containing Valuable Heavy Minerals).

The Company also expects that the 5-year Life of Mine of the 5 Ha deposit will be considerably enhanced due to the effect of wave action redepositing HMS on the mined areas. This wave action should also ensure that rehabilitation is constantly carried out.

Forward Strategy

The Mining Permit gives WHM the right to mine a 5 Ha deposit. This will give the company a 5-year period to mine the deposit, with the possibility of further extensions. The project has been assessed by Creo Design (Pty) Ltd an independent third party who has concluded that it contains a JORC compliant Indicated Mineral Resource of 3.11 million tons at a zero-cut-off grade of 61.2% valuable Heavy Minerals. Of these, Garnet (30.29% ROM) and Ilmenite (27.54% ROM) predominate, with some Zircon (1.2% ROM) and some Rutile (0.92% ROM). The latter two minerals have been excluded for modelling purposes due to the negligible contribution and high capital cost to separate.

The Company anticipates, within 6 months of the grant of the Mining Permit, generating 6,000 tons of HMS per month with an expected gross profit of in excess of US$ 300,000 per month. WHM have also applied for a Prospecting Right over the adjacent beach which will allow up to 5 years to conduct exploration although the intention is to apply for Mining Rights over both properties within a much shorter time frame.

Simultaneously, discussions have already commenced with independent third parties to build and operate a plant at their own cost to separate out the various component minerals, which will considerably increase profitability to WHM without increasing overhead. Prior to that, unseparated material will be sold in bulk.

In addition, and, as a by-product of the HMS operation, Deep Blue Minerals now expects to generate around 300 ct per month of additional diamond production from the HMS operation - this being incremental production to complement our existing diamond operations. Beach diamonds tend to be larger and higher quality than those found inland and so it is expected that these diamonds will attract a premium at auction. Inland diamonds typically attract prices of circa US$ 250 per carat, whereas the Company confidently expects these diamonds to exceed a price of US$ 750 per carat.

Dennis Edmonds, Kazera Chief Executive Officer, commented:

"This has been an incredible week for Kazera. We have been anticipating being granted the right to mine Walviskop since January of this year and to receive this news within a week of us concluding the Lithium investment announced last week is great timing.

The rejection of the Appeal reflects our previously expressed confidence that the correct procedures had been followed by the Department in initially approving the Mining Permit."

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

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

**ENDS**