Premier African Minerals Regulatory News (PREM)

Premier African Minerals Limited / Ticker: PREM / Index: AIM / Sector: Mining

For immediate release

18 January 2024

Premier African Minerals Limited

Zulu Lithium Update

The Board of Premier African Minerals Limited ("Premier" or the "Company") is pleased to provide an update on Zulu Lithium and Tantalum ("Zulu").

Resource Development

Mining operations at Zulu are currently focussed on a limited area of the existing claims blocks and EPO. That area is our North and South Pit. Premier plans to release a resource statement based on this area and focussed on the tonnage of contained Spodumene in Q1 of 2024.

Classification of the economic Mineral of Interest at Zulu in the Mineral Resource

The new mineral resource estimate for Zulu will primarily consider the tonnage of Spodumene contained within the area of interest. With respect to Zulu, Li2O grade alone without an understanding and estimation of the mineral assemblage in the deposit, is a limited guide for mine planning and value assessment purposes.

As background, Pegmatites as a source of Spodumene can be classified into subtypes and contained Li2O associated with the minerals of economic interest. In the case of Zulu, the main mineral of economic interest is Spodumene and Zulu is classified as Petalite-subtype, Spodumene Quartz Intergrowths ("SQI") dominant. Extensive powder XRD ("X-Ray Diffraction Analysis"), careful visual logging and supportive elemental analysis show that more than 85% of the Li2O reported at Zulu is attributable to Spodumene and that the only other lithium bearing mineral of any significance is Lepidolite. At Zulu within the North and South Pit Premier is able to estimate with reasonable confidence the Spodumene tonnage contained in the deposit based on reported Li2O grade. Work undertaken in both the Zulu laboratory and from independent historic test work has indicated that the minimum economically viable and recoverable percentage of Spodumene contained in Zulu ore body, is 4%. When Spodumene is the only lithium bearing mineral in an ore body, the minimum economically viable Li2O grade would be 0.37%.

SQI forms from the conversion of Petalite during the slow cooling of the pegmatitic hydrothermal fluids. The Spodumene contained in the SQI is made up of small crystals and is recoverable after milling and floatation, the process followed at Zulu. Typically, a SQI dominant deposit with an overall Li2O grade of 0.8% with 90% of this grade attributable to Spodumene, will contain significantly more Spodumene than a Petalite subtype subordinate SQI deposit made up of dominantly Petalite with a corresponding lower percentage of Spodumene, even though the Li2O grade may be considerably higher. Recovery of the Spodumene from a Petalite subtype subordinate SQI deposit is likely to require a dense medium separation circuit and then may still need milling and floatation.

It should be noted that the SQI dominant deposit at Zulu contains a low Iron content, and this contributes to the anticipated production of technical grade Spodumene concentrates.

Plant upgrades and optimisation

Major concerns with the plant over the past year have been well documented and Premier now can confirm that Stark International Projects Limited has undertaken to upgrade the UV sorters to include colour-based detection to complement the use of XRT. The upgrade is expected to be installed and operational before startup. A technical team from Germany is expected at Zulu from 23 January 2024 to optimise the sorters and in so doing facilitate the removal of waste material that has previously led to contamination of concentrates. At the same time, a new thickener is under installation, and this is expected to complement the floatation circuit by improving the density and flow of slurry to the float plant.

Ball mill and material sizing

The new ball mill that has been custom built for Zulu is expected to depart from South Africa in in the last week of January 2024 and will represent the last major item to be positioned and connected for a restart of production that is still anticipated late February 2024. By this time, an additional hydrosizer, mill discharge screen, and associated tanks, sumps and pumps are expected to have been installed.

Production costs, Spodumene pricing and sustaining Capital

Premier's internal budgets (which have not been independently verified) predict an average production cost on a mine gate basis of US$800 per ton of SC6. At present SC6 selling prices, and after an allowance for freight charges of US$152 per ton, production at this point in time of basic SC6 standard product is marginally profitable. However, Zulu is expected to produce a low iron higher grade Spodumene concentrate in the normal course from clean ore as previously indicated by Anzaplan in original test work, and as demonstrated in Premier's laboratory at site. This Spodumene concentrate currently attracts a substantial price premium which is expected to buffer the effects of the lower SC6 prices at present.

The significant expansion in mining operations to facilitate delivery of ore with less country waste and to compensate for any residual issues with the sorters, together with the minor delay with the mill delivery has further constrained Premier's cash resources. It is likely that additional funding will be needed in the near term. Premier's contractors and suppliers are assisting and alternatives to equity-based funding are under investigation. With a project as well advanced as Zulu with a fully developed mine, and market in place, this remains the only significant obstacle.

George Roach, CEO, commented" We have set out above a summary of the status quo. The entire focus of our Company is on our Zulu project and unless there are unforeseen circumstances that I have overlooked, and provided our plant suppliers deliver as expected, we remain on target to produce late in February 2024."

Qualified Person

Bruce Cumming, geologist with Premier, has reviewed and approved this release to the extent that reference is made to the geology of the Zulu pegmatites. Mr. Cumming is a SACNASP and GSSA registered geoscientist with 48 years' experience in exploration and project management, in multicommodity projects throughout Africa.

Market Abuse Regulations

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 ("UK MAR").

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

A copy of this announcement is available at the Company's website, www.premierafricanminerals.com

Enquiries:

Nominated Adviser Statement

Beaumont Cornish Limited ("Beaumont Cornish"), which is authorised and regulated in the United Kingdom by the Financial Conduct Authority, is acting as nominated adviser to the Company in connection with this announcement and will not regard any other person as its client and will not be responsible to anyone else for providing the protections afforded to the clients of Beaumont Cornish or for providing advice in relation to such proposals. Beaumont Cornish has not authorised the contents of, or any part of, this document and no liability whatsoever is accepted by Beaumont Cornish for the accuracy of any information or opinions contained in this document or for the omission of any information. Beaumont Cornish as nominated adviser to the Company owes certain responsibilities to the London Stock Exchange which are not owed to the Company, the Directors, Shareholders, or any other person.

Forward Looking Statements

Certain statements in this announcement are or may be deemed to be forward looking statements. Forward looking statements are identi?ed 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 re?ect 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 has accepted a share offer by Vortex Limited ("Vortex") for the exchange of Premier's entire 4.8% interest in Circum Minerals Limited ("Circum"), the owners of the Danakil Potash Project in Ethiopia, for a 13.1% interest in the enlarged share capital of Vortex. Vortex has an interest of 36.7% in Circum.

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