Premier African Minerals Regulatory News (PREM)

14 December 2021 

Premier African Minerals Limited

Zulu Exploration, EPO Update and Funding

Premier African Minerals Limited ("Premier" or the "Company"), is pleased to announce a placing today to raise £800,000 before expenses at an issue price of 0.16 pence per new ordinary share for the ongoing DFS at Premier's Zulu Lithium and Tantalum Project ("Zulu") and to provide an interim update on progress at Zulu and the EPO.

Highlights:

George Roach, CEO commented," Despite Covid-19 Omicron related delays at the laboratory, some limited assay results reaffirm Premier's decision to use a LIBS system at Zulu. The LIBS analysis set out in our announcement on 12 October 2021 with the independent SGS assay results will allow us to complete the fine-tuning calibration process of the LIBS system such that we expect reliable and rapid turnaround from future internal analysis that are conducted at Zulu.

Progress at Zulu is good. Over 2,000 meters of large diameter drilling has been completed and this will allow first pass geotechnical analysis and provide the material for first ore sorting test work that will be undertaken in Germany from January 2022. With the completion of this initial large diameter drilling, the ongoing resource drilling is expected to accelerate both within the existing declared resource estimate area and in adjoining extensions thereto, where we continue to intersect visibly well mineralised pegmatite intersections that give me confidence that we will see both an improved level of confidence in the declared resource estimate area, and important extensions thereto that should potentially see marked increases in the overall resource estimate.

I have made reference to a number of ongoing negotiations intended to secure funding for the balance of the DFS underway at Zulu, against a small disposal of a direct interest in the project and assurance of mine build and off-take finance. Due diligence is being undertaken by more than one capable potential off-take partner.

As much as Premier is under due diligence, so too are those seeking to conclude an off-take agreement with us. Although progress is good in my opinion, there is no certainty of outcome until final agreements are concluded and that is not the case at this time."

Lithium Results

As announced on 12 October 2021, we referred to early analysis using the LIBS system. Sample assembly for that analysis was undertaken by capture of fines resulting from core splitting at Zulu. In limited assays now received from the independent laboratory (SGS), sample preparation from split core was prepared under strict QAQC protocol and subsequently analysed. Residual material from the laboratory sample preparation is now available to the Company and will be analysed using the LIBS and will assist in any adjustment and calibration of the LIBS that may be needed to ensure that the result of an analysis conducted by the LIBS is the same as the analysis provided by the laboratory. With the installation of the additional solar power unit at Zulu, sample preparation conducted at site will be undertaken using the same procedure as that undertaken in the reference laboratory.

In regard to the specific intersections previously analysed by the LIBS before this calibration, the actual laboratory results received and a comparison with the LIBS results are set out below.

Table 1. Recent drill results - actual versus LIBS results

The SGS analysis further supports our on-site identification of mineralised pegmatite core recovered in the drilling process.

Quality Assurance/Quality Control (QA/QC)

The spatial location of the drill holes is derived by using a Global Positioning System device within the existing and historical activity tenement areas. The drill core was geologically logged, core was selected to be sampled, and was subsequently split, sample ID number given, bagged, and sent for analysis. The drill holes were surveyed downhole to provide spatial accuracy of the assay results, as we incorporate those results into the greater-known resource. All samples were analysed for lithium and tantalum by SGS Laboratory Services in South Africa using fire assay (SGS code FAA303). Multi-element scans (30 elements) were carried out by ICP-OS and ICP-MS after sodium peroxide fusion (SGS code ICM90A).

Extended Exploration work within the EPO

Satellite imagery (prepared by Southern Mapping) was used to delineate target areas over the EPO. The resulting inverted grey scale image, with potential target areas visible in red, can be viewed in the webpage link below. This "inversion of bands" method highlights the spectra of interest, enabling the technical team to create targets of potential interest, to be tested by ground follow-up work.

The target generation technique uses a density estimation method and the higher the density values, the higher the probability of mineralisation. The known Zulu deposit and the targets of potential interest are clearly identified in the image, adding to the Premier's expectation that there is much more to come from the EPO region.

The potential target density estimation heatmap and their relationship to the EPO area can be viewed on the webpage link below:

http://www.rns-pdf.londonstockexchange.com/rns/5157V_1-2021-12-13.pdf

Ground follow-up field work is ongoing within the exploration area, and thus far two outcropping areas have been chosen for future drill work. The main emphasis of this programme is to identify and increase the known resource of the Zulu.

Placing

Premier has today issued by way of a placing ("Placing"), conditional on admission, 500,000,000 new ordinary shares of nil par value ("Placing Shares") at a Placing price of 0.16 pence per Placing Share to raise £800,000 before expenses. The Placing Shares will, when issued, rank pari passu in all respects with the existing ordinary shares. Monecor (London) Ltd, trading as ETX Capital ("ETX Capital"), acted as the Company's sole placing agent in respect of the Placing.

Application will be made for the Placing Shares to be admitted to trading on AIM and admission is expected to take place on or around 20 December 2021.

The Placing has been arranged within the Company's existing share authorities. Premier intends to use the proceeds of the placing to assist with further funding of the ongoing works associated at the DFS at Zulu, the exploration of the EPO area surrounding Zulu and general working capital purposes necessary for the Company.

Total Voting Rights

Following the issue of the Placing Shares, the Company's issued share capital consists of 19,418,009,831 Ordinary Shares, with voting rights. This figure may be used by shareholders in the Company as the denominator for the calculation by which they will determine if they are required to notify their interest in, or a change to their interest in, the share capital of the Company under the Financial Conduct Authority's Disclosure and Transparency Rules.

Qualified Person:

Chris Male, Geologist with Premier, has reviewed and approved this release to the extent that reference is made to Zulu. Mr. Male is a SACNASP and GSSA registered geoscientist with 13 years' experience in exploration and project management, in multicommodity projects throughout Africa.

The information contained within this announcement is deemed by the Company to constitute inside information as stipulated under the Market Abuse Regulations (EU) No. 596/2014 as it forms part of UK Domestic Law by virtue of the European Union (Withdrawal) Act 2018.

The person who arranged the release of this announcement on behalf of the Company was George Roach.

Forward Looking Statements:

Certain statements in this announcement are or may be deemed to be forward looking statements. Forward looking statements are identified by their use of terms and phrases such as ''believe'' ''could'' "should" ''envisage'' ''estimate'' ''intend'' ''may'' ''plan'' ''will'' or the negative of those variations or comparable expressions including references to assumptions. These forward-looking statements are not based on historical facts but rather on the Directors' current expectations and assumptions regarding the Company's future growth results of operations performance future capital and other expenditures (including the amount. Nature and sources of funding thereof) competitive advantages business prospects and opportunities. Such forward looking statements reflect the Directors' current beliefs and assumptions and are based on information currently available to the Directors. A number of factors could cause actual results to differ materially from the results discussed in the forward-looking statements including risks associated with vulnerability to general economic and business conditions competition environmental and other regulatory changes actions by governmental authorities the availability of capital markets reliance on key personnel uninsured and underinsured losses and other factors many of which are beyond the control of the Company. Although any forward-looking statements contained in this announcement are based upon what the Directors believe to be reasonable assumptions. The Company cannot assure investors that actual results will be consistent with such forward looking statements.

Notes to Editors:

Premier African Minerals Limited (AIM: PREM) is a multi-commodity mining and natural resource development company focused on Southern Africa with its RHA Tungsten and Zulu Lithium projects in Zimbabwe.

The Company has a diverse portfolio of projects, which include tungsten, rare earth elements, lithium and tantalum in Zimbabwe and lithium and gold in Mozambique, encompassing brownfield projects with near-term production potential to grass-roots exploration. The Company holds 5,010,333 shares in Circum Minerals Limited ("Circum"), the owners of the Danakil Potash Project in Ethiopia, which has the potential to be a world class asset. This holding represents 4,8% of Circum shares in issue.

In addition, the Company holds a 19% interest in MN Holdings Limited, the operator of the Otjozondu Manganese Mining Project in Namibia.

Enquiries:

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Ends