RMM.L Regulatory News (RMM)

5 March 2018

Rambler Updates Reserves at its Producing Canadian Copper & Gold Mine

Demonstrating a Profitable 20 Year Mine Life

London, England & Baie Verte, Newfoundland and Labrador, Canada - Rambler Metals and Mining plc, a Canadian copper and gold producer, explorer and developer (TSXV: RAB, AIM: RMM) ("Rambler" or the "Company") today reports that it has completed a new mineral resources and reserves estimate for the Ming copper-gold mine in Newfoundland and Labrador, Canada. Contained copper in the mineral reserves is estimated at 329 million pounds with gold of 114 thousand ounces, fully replacing reserves after two years of mining. Mineral resource tonnes (M+I) have declined from the 2015 estimate by 18%, however, the copper grade has improved 9% and gold grade by 14%. The change in measured and indicated resources is a result of an extensive diamond drilling program in an underexplored area of the Lower Footwall Zone.

The mineral resource and reserve estimations were performed by WSP Consultants, an independent third party, and will be documented in a NI43-101 Technical Report to be filed on SEDAR within 45 days of this release. The effective date of the reserve estimate is January 1, 2018 and the resource estimate is September 1, 2017. All currency is expressed in US dollars (USD) unless otherwise noted. The estimation was based on long term metal pricing of $2.99 per pound of copper, $1300 per ounce of gold and $17 per ounce of silver with a USD:CAD exchange rate of 1:0.80.

Norman Williams, President and CEO of Rambler, commented:

"The updated NI43-101 Technical Report documents the twenty year reserve mine life and expected financial outcomes of the Ming Copper-Gold Mine, operating at an average of 1,250 metric tonnes of ore mined and processed per day ('mtpd'). We expect to be able to sustain production at 1,250 mtpd after completion of the ventilation upgrade later in March, 2018. The Nugget Pond milling facility has proven that it can maintain the target throughput at the planned recovery rates and in January it achieved record throughput of 1,360 mtpd over a twenty four hour period.

"Once the ventilation upgrade is complete, our attention will turn towards optimizing production at the reserve grade to further reduce costs to the 1,250 mtpd optimized design. The focus of the cost improvement efforts will be; maintenance practice improvements to increase equipment availability in the mine; cycle time improvements for improved productivity in the mine; improving grade control and upgrading low grade material by crushing, screening and possibly dense media separation; rehabilitating the shaft for reduced haulage cost as mining proceeds deeper; and improving gold and silver recovery in the plant.

"Given the exceptional surface exploration drill results reported for the Lower Footwall Zone, which are several hundred meters down plunge of the current mining front, we are also planning on accelerating our exploration efforts. These drill intersections, which are outside of the resource model, confirm that the mineralization in the LFZ improves in grade and continuity at depth. As we complete the 1,250 mtpd expansion and move into positive cash flow, we will continue to evaluate resource, reserve, and production expansion opportunities to improve upon the life-of-mine reported here."

Table 1: Mineral Reserve Estimate Summary for the Ming Copper-Gold Mine*

Table 2: Mineral Resource Estimate Summary for the Ming Copper-Gold Mine* (Resources are inclusive of reserves)

LIFE OF MINE PRODUCTION, COST AND FINANCIAL HIGHLIGHTS

· Over a planned 20 year life-of-mine, ending 2037, the project will produce 514 thousand tonnes of high-grade copper concentrate containing saleable metal of 312 million pounds of copper and 57 thousand ounces of gold. Average annual sales is 26 thousand tonnes of copper concentrate containing an average of 16 million pounds of saleable copper and 2,800 ounces of saleable gold.

· Average annual cash operating cost of $1.98 per pound of copper net of byproduct credits ('C1'), with an all-in pre-tax costs of $2.37 per pound of copper and after-tax cost of $2.49 per pound.

· Net undiscounted cash flow from operations of $277 million. Net pre-tax cash flow of $195 million (after-tax $157 million).

· Project pre-tax net present value ('NPV7%') of $100 million (CAD $125 million). After-tax NPV7% of $83 million (CAD $104 million).

· With the investment made by CEII in 2016 this expansion is fully funded and expected to start generating free cash flow mid-2018.

NI43-101 Technical Report Notes

The twenty year life-of-mine will see underground mining from both the high grade massive sulphides and the Lower Footwall Zone. With the current infrastructure in place and the ventilation upgrade nearing completion in the coming weeks, the Phase II expansion of the mining and milling processes to 1,250 mtpd is expected to be completed in March, 2018.

The LOM envisages steady state production from 2018 onwards with majority of the planned tonnage coming from longhole bulk mining of the LFZ. Paste backfill augmented with waste rock from underground development will be the primary filling mechanism with access to each of the zones made possible through existing and new development with extensions to existing ramps and raises.

The Technical Report has been developed through a number of independent consultants; WSP Canada Inc. out of Sudbury, Montreal were responsible for the mineral resource and reserve estimates, mining, civil, structural and project economics; Thibault & Associates Inc. out of New Brunswick were responsible for all processing aspects of the project; while GEMTEC Consulting Engineers and Scientists Limited, based out of Newfoundland and Labrador, were responsible for all environmental aspects of the project.

The procedures used for the resource and reserve estimation processes are consistent with the Canadian Institute of Mining and Metallurgy ('CIMM') best practices and in compliance with NI43-101. All operational data from the ongoing mining and milling at the Ming Copper-Gold Mine was made available to the independent consultants for review and inclusion.

Tim Sanford, P.Eng., is the Qualified Person responsible for the technical content of this release and has reviewed and approved it accordingly. Mr. Sanford is an employee of Rambler Metals and Mining Canada Limited. Tonnes referenced are dry metric tonnes unless otherwise indicated.

The NI43‐101 technical report has been complied by a number of independent, third party, consultants. Including:

Joanne Robinson, P.Eng., WSP Canada Inc.: Project economics;

Dean Thibault, P.Eng., Thibault & Associates Inc.: Metallurgical processing;

James Powell, P. Eng., Gemtec Consulting Engineering and Scientist Limited: Environmental;

Aubrey Sargeant, P.Eng., WSP Canada Inc.: Reserve Estimation and mining methodology;

Todd McCracken, P.Geo., WSP Canada Inc.: Resource estimation;

Sébastian Bertelegni, P.Eng., WSP Canada Inc.: Civil and Structural

Neither TSX Venture Exchange nor its Regulation Service Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

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 ('MAR'). Upon the publication of this announcement via Regulatory Information Service ('RIS'), this inside information is now considered to be in the public domain.

Rambler is dual listed in London under AIM:RMM and in Canada under TSX-V:RAB.

For further information, please contact: 

Website: www.ramblermines.com 

Caution Regarding Forward Looking Statements:

Certain information included in this press release, including information relating to future financial or operating performance and other statements that express the expectations of management or estimates of future performance constitute "forward-looking statements". Such forward-looking statements include, without limitation, statements regarding copper, gold and silver forecasts, the financial strength of the Company, estimates regarding timing of future development and production and statements concerning possible expansion opportunities for the Company. Where the Company expresses or implies an expectation or belief as to future events or results, such expectation or belief are based on assumptions made in good faith and believed to have a reasonable basis. Such assumptions include, without limitation, the price of and anticipated costs of recovery of, copper concentrate, gold and silver, the presence of and continuity of such minerals at modeled grades and values, the capacities of various machinery and equipment, the availability of personnel, machinery and equipment at estimated prices, mineral recovery rates, and others. However, forward-looking statements are subject to risks, uncertainties and other factors, which could cause actual results to differ materially from future results expressed, projected or implied by such forward-looking statements. Such risks include, but are not limited to, interpretation and implications of drilling and geophysical results; estimates regarding timing of future capital expenditures and costs towards profitable commercial operations. Other factors that could cause actual results, developments or events to differ materially from those anticipated include, among others, increases/decreases in production; volatility in metals prices and demand; currency fluctuations; cash operating margins; cash operating cost per pound sold; costs per ton of ore; variances in ore grade or recovery rates from those assumed in mining plans; reserves and/or resources; the ability to successfully integrate acquired assets; operational risks inherent in mining or development activities and legislative factors relating to prices, taxes, royalties, land use, title and permits, importing and exporting of minerals and environmental protection. Accordingly, undue reliance should not be placed on forward-looking statements and the forward-looking statements contained in this press release are expressly qualified in their entirety by this cautionary statement. The forward-looking statements contained herein are made as at the date hereof and the Company does not undertake any obligation to update publicly or revise any such forward-looking statements or any forward-looking statements contained in any other documents whether as a result of new information, future events or otherwise, except as required under applicable security law.

APPENDIX 1 - Mineral Reserve and Mineral Resource Statements

Table 3: Mineral Reserve Estimate for the Ming Copper-Gold Mine - January 1, 2018 

Mineral Reserve Notes

All figures are rounded to reflect the accuracy of the estimate; numbers may not total due to this rounding. This reserve statement reflects changes to reserves in the massive sulphides based on depletion due to mining and additions due to new exploration drilling results. The NSR for the reserve material was calculated using an all-in cost of $72 per tonne of ore milled.

Commodity prices for 2018 are reflective of the Company's fiscal forecast; $3.06 per pound copper, $1,305 per ounce of gold and $17.65 per ounce of silver. Long term metal prices of USD$2.99 per pound copper, USD$1300 per ounce gold and USD$17.00 per ounce silver with a long term USD/CDN FX rate of 1:0.80.

Mineral Resource Notes

Mineral Resources are not Mineral Reserves and have not demonstrated economic viability. All figures are rounded to reflect the accuracy of the estimate. Cut‐off grades of 1.0 % copper for the massive sulphides, 1.25 grams per tonne gold for any gold zones and 1.00 % copper for the stringer sulphides have been used in the estimate.

Cut‐offs are based on an NSR model and forecast long term metal prices of USD$2.99 per pound copper, USD$1,300 per ounce gold and USD$17.00 per ounce silver with a long term USD/CDN FX rate of 1:0.80. Resources are inclusive of reserves.

Table 4: Mineral Resource Estimate for the Ming Copper-Gold Mine - September 1, 2017 (Resources are inclusive of reserves.)

APPENDIX 2: Summary of updated NI43-101 Technical Report

Table 5: Project Economics

Table 6: Summary of Economic Parameters