Mineral & Fin Regulatory News (MAFL)

The following amendments have been made to the 'Quarterly Net Asset Value and Operational Update' announcement released on 21 February 2019 at 7:00 am under RNS No 6735Q.

Mineral and Financial Investments Limited announces that the historical 2017 data was not correctly stated. Therefore the comparative NAV, NAV per share and respective growth in NAV were not correctly stated.

The changes are as follows:

- NAV as at 31 December 2017 was £2,602,816

- NAV per share as at 31 December 2017 was 7.43p

- The NAV per share increased 67.3% from 31st December 2017

All other details remain unchanged. The full amended text is shown below.

MINERAL AND FINANCIAL INVESTMENTS LIMITED

Quarterly Net Asset Value and Operational Update

HIGHLIGHTS:

· Acquisition of TH Crestgate completed - NAV positively and materially impacted by the transaction.

· NAVPS as at Dec 31 2018 was 12.54p, or £4,392,940, up 67.3% from 1 yr ago, to a new all time high for M&FI

· Zinc Prices continue to weigh down the Stategic Portfolio and NAV performance

· Redcorp's Lagoa Salgada's Resource update doubled the resource tonnage to 20.7Mt [1]and increased Gross Zinc Eq.[2] metal content by 89.5% during the period.

· Several new investments initiated in the gold sector in Q4 and Q1

George Town, Cayman Islands - February 21, 2019 - Mineral and Financial Investments Limited (LSE-AIM: MAFL) ("M&FI" "MAFL" or the "Company") is very pleased to provide an unaudited quarterly update of its Net Asset Value and also provide an operational update for the quarterly period ending 31st December, 2018. The Company's tactical portfolio continues to face headwinds due to the continued softness in base metals prices generally, and zinc specifically with its effect on our Ascendant Resources (TSE:ASND) investment, but the Company looks forward to potential increases in the value of the Company's investment in Redcorp as work on site progresses. During the period the Company completed the acquisition of 51% of TH Crestgate GmbH, which M&FI now owns 100%. TH Crestgate's main asset is a 75% ownership in Redcorp Empredimentos Mineiros while Ascendant Resources owns the remaining 25%.

NET ASSET VALUE[3]

As at 31st December, 2018, the fully diluted, unaudited, Net Asset Value per share was 12.54p or £4,392,940. The increase in the NAV is largely due to the completion of the acquisition of TH Crestgate GmbH, which as disclosed, was accretive to NAV. Over the past four years M&FI's NAV has risen from £908,476, at a compounded rate of 68.2% per annum. We have referenced in several press releases the progress made through exploration by TH Crestgate, and subsequently through Ascendant's exploration and operatorship of Redcorp. The completion of the acquisition now requires us to attribute a value to our holding in Redcorp, and we have done so cautiously, but we look forward to potential increases in value as work on site progresses.

The NAV was impacted by the decline in the market value of the Company's total holding of 2,052,546 shares of Ascendant Resources in the period under review, against the previous period. The decline in ASND's market cap has cost M&FI's NAVPS 1.96p in performance. The Company's cash position, as at year end is £425,779, while its working capital is £2,396,320[4].

The following is a summary of the NAV, updated to include this unaudited NAV calculation:

ECONOMIC OVERVIEW

M&FI uses the IMF Economic studies to assess global economic performance due to its consistent, disciplined and global span. The global economic performance, as measured by economic output, continues to be positive. Economic performance rose by 3.8%[5] in 2017 and is expected to have risen by 3.7% for 2018. The International Monetary Fund's (IMF) World Economic Outlook, released in January 2019 and contains a downward revision to the IMF's expectations of 2019 forecast economic growth 3.5% in 2019 and to 3.6% in 2020. The report notes that the modest decline in the forecast is twinned with a significant increase in economic risk due to, amongst other matters, Europe's slowing german economic performance and turbulent Brexit. Additionally there are growing signs of economic decelaration in Asian economic performance.

Although the US economy remains the world's largest economy, unsurprisingly, its global dominance diminishes annually. Nevertheless, its current economic trade policies to redress perceived inequities through the initiation of a variety of punitive trade tariffs have, in the observation of the directors, been costly to global economic growth. It is the directors opinion that the objective of the various trade disputes initiated in 2018 by the USA are to bring China and a few other countries to heal so as to re-negotiate trade agreements. The IMF forecasts' US Economic output growth to decline from +2.3% in 2018 to +2.0% in 2019 and to 1.7% in 2020. In the last quarter of 2018 virtually all bond yields declined, as an aknowledement of of a slowing outlook, but US 10 Year government bond yields declined by 19% to 2.68%". The directors have observed that the result has been a general slowing of global economic activity and specifically causing pressure on metal prices. Base metals were all down in the final quarter of 2018. Those which MAFL track, Copper, Nickel, Aluminium, Zinc and Lead, were all down in the period, with an average price decline of 6.56% in the fourth quarter. The directors continue to believe that global growth will be positive, but the directors do not have a sense of when the US will relax its provocative trade position. Therefore MAFL will continue to gradually favour precious metals investments over base metal investments.

TACTICAL PORTFOLIO

MAFL have initiated several new positions in the precious metal sector in December 2018 and in January 2019 including in Barrick Gold, Alamos Gold, Trevali and latterly Cabral Gold and Avrupa. During the period MAFL sold its position in Imperial Metals. Additionally MAFL have also added a Copper ETF to the tactical portfolio. During the quarter, M&FI initiated an investment position in a private company called Cerrado Gold Inc. Cerrado's main project - Monte do Carmo is located in Brazil's province of Tocantins. The project has an internal, unverified, estimated resource of 581,470 oz. with a grade of 2.07 g/t (using a 0.5 g/t cut-off) over a 17,000-hectare tenement at the Serra Alta zone. Having completed a recent drill programme, the objective is to publish a 43-101 technical report in which the formal resource calculation is expected to demonstrate an increase to about 1.0M oz of resource in the Q4 2018 period, although at this stage there can be no guarantee what that resource calculation will show. Cerrado is currently aiming to raise capital for further drilling to increase the resource. The current indications from Cerrado is that the fund raise will be at a 50% premium to our participation price in the Q4-2018 period.

STRATEGIC PORTFOLIO

M&FI determined almost 4 years ago that Zinc would outperform other metals and sought out a zinc investment. The Company is now fully invested in zinc with 2,052,000 shares of Ascendant Resources and 75% of Redcorp, which owns the Lagoa Salgada project in Portugal. Ascendant has an earn-in that would increase its interest to 80% of the Lagoa Salgada Project by spending US$9.0M and paying M&FI a further US$5.75M (US$250K received in December). Since announcing the earn-in, the Lagoa Salgada project's resource estimate has benefited from an aggressive exploration program. Ascendant has expended US$2.2M in exploration costs during the first 6 months following their initial investment. On 13 February 2019 M&FI & Ascendant announced the results of an updated National Instrument 43-101 Mineral Resource Estimate (CIM compliant resource) at the Lagoa Salgada polymetallic VMS Project located on the Iberian Pyrite Belt ("IPB") in Portugal. The new Mineral Resource Estimate demonstrates material growth in both the North Zone (Main Massive Sulphide) and the South Zone (Stockwork) deposits. Both zones sit on an estimated geological strike length of 1.6km and have been delineated by less than a total of 50 holes combined. The work completed by Redcorp Empreedimentos Mineiros Lda. (Redcorp), is funded and guided by Ascendant Resources (Ascendant) as part of Ascendant's previously announced earn-in agreement with TH Crestgate, Mineral and Financial's 100% owned subsidiary. The resource update, completed by Micon International Limited defined 20.66Mt of Measured, Indicated and Inferred ore with and average zinc equivalent1 grade of 7.13%. This update was announced to the market on February 13, 2019.

The share price of Ascendant Resources has declined from a high of C$1.20 when the transaction was announced to a current price of C$0.49. During that time, the price of zinc has declined from US$1.45/lb to US$1.19/lb. The directors understand that the 100% owned El Mochito mine in Honduras has successfully reduced its operating costs by 31% and increased its production 81% during the course of 2018. The directors remain confident in its investment as they believe Ascendant has the potential to increase production, reduce costs, and generate cash flow. Moreover, we are very pleased to be working with Ascendant as our partner on Lagoa Salgada.

MAFL are currently reviewing several other investment opportunities. The directors look forward to providing shareholders with more information on all the investments, in due course if they progress. Several of these opportunities are private.

FOR MORE INFORMATION:

Jacques Vaillancourt, Mineral & Financial Investments Ltd. +44 780 226 8247

Katy Mitchell and Jessica Cave, WH Ireland Group Limited +44 161 832 2174

Jon Belliss, Novum Securities Limited +44 207 382 8300

Notes: All listed investments, including investments on ISDX, are valued at the closing bid price as at 31st December 2018. The Company has investments in unquoted companies which are valued at the price at which these companies last raised money, although this is subject to review.