Alien Metals Regulatory News (UFO)

THIS ANNOUNCEMENT CONTAINS INSIDE INFORMATION FOR THE PURPOSES OF ARTICLE 7 OF THE MARKET ABUSE REGULATION (596/2014/EU) AS THE SAME HAS BEEN RETAINED IN UK LAW AS AMENDED BY THE MARKET ABUSE (AMENDMENT) (EU EXIT) REGULATIONS (SI 2019/310). UPON THE PUBLICATION OF THIS ANNOUNCEMENT, THIS INSIDE INFORMATION IS NOW CONSIDERED TO BE IN THE PUBLIC DOMAIN.

NOT FOR RELEASE, PUBLICATION OR DISTRIBUTION IN WHOLE OR IN PART, DIRECTLY OR INDIRECTLY IN, INTO OR FROM ANY JURISDICTION WHERE TO DO SO WOULD CONSTITUTE A VIOLATION OF THE RELEVANT LAWS OR REGULATIONS OF SUCH JURISDICTION.

Trading Symbols

AIM: UFO

FWB: I3A1

29 April 2024

Alien Metals Ltd

("Alien Metals" or "the Company")

Alien Executes up to A$4 million Farm-Out Joint Venture for Lithium Rights on Pinderi Hills Project, including A$0.5 million Subscription

Alien Metals (AIM: UFO) (Alien or Company), a company focused on the exploration and development of the Hancock iron ore Project ("Hancock Project") and the Pinderi Hills project in Western Australia ("Pinderi Hills Project"), is pleased to announce that it, via its wholly owned subsidiary Alien Metals Australia Pty Ltd ("AMA"), has entered into a joint venture with Errawarra Resources Ltd (ASX: ERW) ("Errawarra") (together with AMA, the "Parties") (the "Agreement") in respect of the lithium rights on the Pinderi Hills Project located in the West Pilbara (the "Project").

Highlights:

• Errawarra, the joint venture party, has the potential to earn up to a 50% interest in the lithium rights in the Project by spending up to A$4 million with the first A$500,000 being by way of a subscription for common shares in the capital of the Company ("Common Shares").

• Alien Metals has undertaken limited exploration for lithium in this area, however the Agreement provides an opportunity to facilitate the development of the Project whilst allowing the Company to remain focussed on the development of the Hancock Project and Pinderi Hills nickel, copper, and platinum group metals projects.

• The Pinderi Hills area covers a major ultramafic/mafic complex which is potentially prospective for lithium bearing pegmatites.

• The West Pilbara is a prospective emerging lithium province, with interpreted pegmatite dykes (see Figure 2) which the Directors of Alien believe are comparable to the recently discovered Lithium Caesium Tantalum ("LCT") pegmatites within the Andover intrusive mafic-ultramafic Complex located 35km to the north-east.

Joint Venture Terms and Additional Details

Under the terms of the Agreement, Errawarra is to spend up to a total of A$4,000,000 to earn up to a 50% participating interest in the joint venture which will hold the lithium rights on the Project over a period of 60 months, from entering into the Agreement, as follows:

• Upon execution of the Agreement, a one-off payment of A$500,000 to Alien by way of a subscription for 130,000,000 new Common Shares at a price of 0.2p (the "Subscription Shares"), being the VWAP over the ten trading days prior to the date of the Agreement (the "Subscription"). The proceeds of the Subscription will be applied to general working capital purposes.

• Stage 1: Errawarra will earn-in for a 25% participating interest in the joint venture by spending A$1m on the Project within 24 months of the date of entering into the Agreement; and

• Stage 2: Errawarra will earn-in for a further 25% participating interest in the joint venture by spending a further A$2.5m on the Project within 60 months of the date of entering into the Agreement.

At the conclusion of Stage 2, Errawarra's interest in the Project will be 50% and from that point, the Parties will contribute towards any Project related expenditure on a pro-rata basis.

If Errawarra does not meet the required spend (as noted above) in either Stage 1 or Stage 2, its interest in the joint venture will reduce proportionally.

If AMA chooses not to contribute on a pro-rata basis following the completion of Errawarra's Stage 2 earn-in, AMA's 50% interest will dilute on a pro rata basis, and in the event that AMA's interest in the joint venture falls below 10% then its remaining holding will convert to a 2% gross revenue royalty (the "Royalty").

Errawarra retains a first right of refusal to buy back the Royalty, should Alien wish to sell and Errawarra will have first right of refusal to acquire all the remaining mineral rights to the Pinderi Hills nickel, copper, and platinum group metals projects.

The lithium rights the subject of the Agreement ("Rights") incurred no revenue or costs in the last 12-month period, and accordingly there are no attributable profits or losses. Further the Rights have a zero carrying value in the Company's financial statements.

AMA and Errawarra have agreed to negotiate a full form joint venture agreement incorporating the above terms within three months from the date of the Agreement.

Lithium Pegmatite Targets Identified

The Pinderi Hills tenements are in an area believed to be prospective for lithium bearing pegmatites due to the presence of granites belonging to the Orpheus suite of rocks. These granites are associated with lithium pegmatite emplacement in the significantly mineralised lithium pegmatite corridor located some 20km to the north.

LCT pegmatite target areas have been identified near "hot" granites in greenstone mafic-ultramafic rocks terrane within the Alien tenements.

A large number of pegmatite type features were identified in the Maitland Intrusive Complex which are interpreted as possible pegmatite dyke swarms. These interpreted pegmatite dykes are shown in more detail in Figure 2 and appear comparable to the recently discovered LCT pegmatites within the Andover Intrusive Complex located 35km to the north-east.

Admission and Total Voting Rights

Application will be made to the London Stock Exchange for the Subscription Shares to be admitted to trading on AIM ("Admission"). Assuming receipt of the proceeds of the Subscription have been received, it is expected that Admission will become effective and that dealings in the Placement Shares on AIM will commence at 8.00 a.m. on or around 3 May 2024.

The Subscription Shares will be issued fully paid and will rank pari passu in all respects with the Company's existing Common Shares.

Following Admission, the total number of Common Shares in the capital of the Company in issue will be 6,491,794,174 with voting rights. This figure may be used by shareholders as the denominator for the calculations by which they will determine if they are required to notify their interest in, or a change to their interest in, the Company's issued share capital pursuant to the Company's Articles.

Guy Robertson, Executive Director, commented:

"This farm-out of the lithium mineral rights to Errawarra provides Alien with the opportunity to expand its multi commodity portfolio while continuing to focus on the development of its Hancock Iron Ore, and Pinderi Hills platinum, nickel, and copper projects.

"Errawarra has immediate plans to commence exploration for lithium on the project." 

For further information please visit the Company's website at www.alienmetals.uk or contact:

Strand Hanson (Financial and Nominated Adviser)

James Harris / James Dance / Robert Collins Tel: +44 (0) 207 409 3494

WH Ireland Ltd (Broker)

Harry Ansell / Katy Mitchell Tel: +44 (0) 207 220 1666

Yellow Jersey (Financial PR)

Charles Goodwin / Shivantha Thambirajah / Zara McKinlay Tel: +44 (0) 203 004 9512

Notes to Editors

Alien Metals Ltd is a mining exploration and development company listed on the AIM market of the London Stock Exchange (AIM: UFO). The Company's focus is on delivering a profitable direct shipping iron ore operation from it 90% Hancock iron ore project in the central Pilbara region of Western Australia. The Hancock tenements currently contain a JORC-compliant resource of 8.4Mt iron ore @ 60% Fe and offer significant exploration upside which is targeted to deliver a mining operation of 2Mtpa for 10 years.

These tenements have direct access to the Great Northern Highway, which provides an essential export route to export facilities at Port Hedland, from where more than 500Mt of iron ore is exported annually (30% of global production). The Company also has an interest in two iron ore exploration projects Brockman and Vivash, located in the West Pilbara.

The Company owns the Elizabeth Hill Silver Project, located near Karratha in the Pilbara, which consists of the Elizabeth Hill Mining Lease and exploration tenements surrounding the historical silver mine which has produced some of Australia's highest-grade silver ore during the late 1990's. The Company also owns one of Australia's largest PGM deposits, Munni Munni which hosts a deposit containing a historic resource of 2.2Moz PGM (Palladium, Platinum, Gold, and Rhodium).