MTR.L Regulatory News (MTR)

28 April 2021

Metal Tiger plc

("Metal Tiger" or the "Company")

Sandfire Resources Update

Metal Tiger plc (AIM: MTR), the London Stock Exchange AIM listed investor in natural resource opportunities, is pleased to announce an update in relation to its investment in Sandfire Resources Limited ("Sandfire") which also contains material information regarding Metal Tiger's 2% uncapped net smelter royalty over circa 8,000km2 of Sandfire's licence holdings in the Kalahari Copper Belt including PL190/2008 (excluding the T3 Motheo Project area), which hosts the A4 deposit. Metal Tiger also has a capped US$2m 2% net smelter royalty over production from the T3 Motheo mine.

Sandfire has today announced its quarterly report for the period ended 31 March 2021 and an associated presentation.

Metal Tiger is currently interested in 6,179,057 Sandfire shares representing approximately 3.5% of Sandfire's issued share capital. As announced on 31 July 2020, 2,842,667 of the Sandfire shares held by the Company are subject to an equity derivative financing arrangement with a global investment bank.

Highlights extracted from Sandfire's quarterly report for the period ended 31 March 2021:

Corporate and Financial:

- Group cash on hand as at 31 March 2020 of A$463.6 million and no debt (excluding lease liabilities).

Degrussa Operation (Australia):

- 16,803 tonnes of contained copper production in the March 2021 quarter at a C1 cost of US$0.87/lb along with 9,100oz Au with guidance given to meet the upper end of 67-70kt Cu and 36- 40koz Au.

- Continued multi-pronged exploration progams continued across the Doolgunna Province. A circa 2,400m deep diamond hole is in progress at Red Bore to provide a platform for down-hole geophysical surveys to test the conceptual feeder zone down-plunge of the C5 deposit.

- Current phase of drilling completed at the Old Highway Gold Prospect. Work continues on studies for the Company's gold transition strategy.

Tshukudu (Botswana):

- Initial site activities commenced at the T3-Motheo Project with sterilisation drilling underway, clearing for a 15km access road and for the construction of a 200 - person camp. Orders placed for all key process equipment and tenders for the mining contract and other key items well advanced.

- Mining Licence for the T3 Project expected to be awarded in the June 2021 Quarter (April - June), clearing the way for major construction activities to commence.

- Resource drilling program completed at the A4 deposit to allow upgrading of the existing Inferred Resource to Indicated status. The upgraded Resource will underpin the completion of a Feasibility Study and maiden Ore Reserve, which are on-track for delivery in the September 2021 Quarter.

- Exploration focus shifted to other priority targets within the Motheo Expansion Project as part of a major step up in drilling of new targets commencing in the June 2021 Quarter.

Notable excerpts from the body of the quarterly:

T3 Motheo Project:

o Presentations were made to the Department of Mines as part of the Mining Licence approval process and to the Ghanzi Regional Council, with additional information requested by and supplied to the Department of Mines in April.

o Pre-development activities continued during the Quarter at the T3-Motheo Project, with a program of sterilisation drilling undertaken across key infrastructure locations (Tailings Storage Facility and Plant Site). 24 sterilisation holes (2,880m) planned and started in mid-March and expected to be completed in May (note more details in section 5.2 of Sandfire's release).

o The Government of Botswana has not notified Sandfire of its intention regarding the acquisition of an ownership stake (can own up to 15% fully contributing interest).

o Power Supply Agreement for the High Voltage Power Supply from the Botswana Power Corporation (BPC) is in its final stages of negotiation and expected to be completed in the June 2021 Quarter. Expressions of Interest have also been received for the build, own, operate and transfer (BOOT) of a solar generation plant to supply up to 30% of the mine's electrical load.

o Proposals to provide debt financing for the T3-Motheo Project were received from nine participating banks, with the proposals currently being analysed and short-listed.

o Recruitment has commenced for a number of senior positions, including Executive Head of Botswana and General Manager Motheo Operations, with appointments expected in coming months.

A4 Resource Drilling and Feasibility Study

o A maiden JORC 2012 compliant Inferred Mineral Resource for the A4 deposit in December 2020, comprising 6.5 million tonnes grading 1.5% copper and 24g/t Ag for an estimated 100,000 tonnes of contained copper metal and 4.9 million ounces of silver was announced on 1 December 2020.

o During the Quarter, Sandfire completed in-fill and extensional drilling at the A4 Copper-Silver deposit, located 8km west of the planned Motheo processing plant, aimed at upgrading the existing Inferred Resource to Indicated status to underpin the completion of a Feasibility Study.

o Work also commenced on the A4 Feasibility Study with a target of completing the study and submitting the ESIA for the A4 project in the December 2021 Quarter.

o Given its location to the planned processing plant and infrastructure at T3, the A4 deposit has the potential to become an important source of higher grade ore for the Motheo Production Hub and supports the potential expansion from the Base Case of 3.2Mtpa to 5.2Mtpa for the Motheo Production Hub.

o Localised high grade vein intersections were not included in the maiden Inferred Mineral Resource and will be included in the updated Mineral Resource estimate for A4 expected in the June 2021 Quarter. The results also demonstrate the potential for further high-grade mineralisation potentially occurring elsewhere along the A4 Dome and in other untested targets in the T3 Expansion Area where drilling is being stepped up.

o A maiden Ore Reserve Estimate is expected to be completed in the September 2021 Quarter and a Feasibility Study in the December 2021 Quarter.

o An extensive geotechnical drilling program commenced at the A4 deposit in March, with approximately 47% of the 2,340m program completed by Quarter-end. Preliminary mining studies were also completed, with key outcomes from a Scoping Study on the A4 deposit confirming the potential of the project to substantially increase cash-flows from the T3 Project with the inclusion of ore from a two-stage open pit at A4.

o Metallurgical testwork commenced, along with groundwater studies and water bore drilling. Work also commenced on the potential consolidation of environmental approvals within the Motheo Hub.

Tshukudu Exploration

o Targeting high-grade satellite discoveries within the Motheo Expansion Project area with the potential to increase the scale of the Motheo Production Hub;

o Delineating additional Resources with the potential to extend mine life; and

o Targeting major new regional discoveries to unlock the copper belt's broader potential.

o With the completion of in-fill drilling at the A4 deposit, the focus of exploration drilling has shifted to other targets within the Motheo Expansion Project with drilling underway at TG02, south of the A4 deposit, and TG07, located 3km west of the planned T3 open pit. Drilling at a third target, TG06, 8.5km west of T3, is planned as soon as access is available.

o Other priority targets within the Motheo Expansion Project include A1, A27, T1 and T2 East, which are located within circa 30km north and north-east of T3 on private farms. Access to these targets is currently being negotiated.

o During the Quarter, Sandfire commenced deep drilling to test the mineralised NPF contact at the western end of the A4 Dome, approximately 1km west of previously reported copper intersections. Hole MO-A4-150D intersected a wide down-hole interval of weakly disseminated chalcocite and bornite mineralisation, with true width unknown. The hole lifted significantly and failed to intersect the NPF contact and a follow-up hole with a rig more suited to controlled drilling is currently being planned.

Black Butte (USA)

- Exploration drilling program completed to identify additional Mineral Resources in close proximity to planned infrastructure, with assay results expected in May 2021.

Notable excerpts from management statement by Sandfire's Managing Director and CEO, Karl Simich:

- "Government of Botswana is expected to award the Mining Licence for the T3 Project in the coming weeks, clearing the way for full-scale construction of the US$259 million project development to commence."

- "The delivery of an upgraded Resource at A4 will underpin a Feasibility Study targeted for completion in the September 2021 Quarter. The A4 deposit represents a key element of our strategy to rapidly expand production at the Motheo Production Hub from the initial base case rate of 3.2Mtpa up to 5.2Mtpa."

- "Regional exploration across the Kalahari Copper Belt is also moving into top gear, both within the Motheo Expansion Area and further afield, including across our licences in Namibia."

Links to Sandfire's announcements released today are set out below:

Sandfire March 2021 Quarterly Report

https://cdn-api.markitdigital.com/apiman-gateway/ASX/asx-research/1.0/file/2924-02367715-6A1030062?access_token=83ff96335c2d45a094df02a206a39ff4 

Sandfire March 2021 Quarterly Report Presentation

https://cdn-api.markitdigital.com/apiman-gateway/ASX/asx-research/1.0/file/2924-02367717-6A1030063?access_token=83ff96335c2d45a094df02a206a39ff4 

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

Enquiries:

Notes to Editors:

Metal Tiger PLC is admitted to the AIM market of the London Stock Exchange AIM Market ("AIM") with the trading code MTR and invests in high potential mineral projects with a base, precious and strategic metals focus.

The Company's target is to deliver a high return for shareholders by investing in significantly undervalued and/or high potential opportunities in the mineral exploration and development sector. Metal Tiger has two investment divisions: Equity Investments and Project Investments.

Equity Investments invests in undervalued natural resource companies. The majority of its investments are listed on AIM, the TSX and the ASX, which includes its interest in Sandfire Resources Limited (ASX: SFR). The Company also considers selective opportunities to invest in private natural resource companies, typically where there is an identifiable path to IPO. Through the trading of equities and warrants, Metal Tiger seeks to generate cash for investment for the Project Investments division.

Project Investments is focused on the development of its key project interests in Botswana, where Metal Tiger has a growing interest in the large and highly prospective Kalahari copper/silver belt through its interest in Kalahari Metals Limited.

The Company actively assesses new investment opportunities on an on-going basis and has access to a diverse pipeline of new opportunities in the natural resources and mining sectors. For pipeline opportunities deemed sufficiently attractive, Metal Tiger may invest in the project or entity by buying publicly listed shares, by financing privately and/or by entering into a joint venture.