URU Metals Limited Regulatory News (URU)

URU Metals Limited

("URU Metals" or "the Company")

Placing

URU Metals (AIM:URU), the base metals and uranium explorer and development company, is pleased to announce that it has raised £770,000 from institutional and other investors through a placing of 171,111,110 new Ordinary Shares at 0.45p per share ("Placing Shares") ("the Placing").

Reasons for the Placing

The Placing proceeds will be applied:

· to advance the Zebediela Project, in anticipation of positive results from the drill testing programme which is due to commence this month. The aim of this scope of work is to increase the confidence on the potential magnetite resource that has been identified in the oxide and sulphide Zones of the orebody. As previously announced, certain key aspects are of work are required to assess this for the two zones: Exploration drilling to delineate the magnetite resource, Assaying for total iron content based on new and existing drill core material (which in turn allows for SAMREC and JORC Compliant Resource Modelling), Metallurgical Test work for a scoping study level mass pull, recovery and concentrate grade figures and Updating of the Financial Model using the resource and recovery figures;

· to re-commence work on the Burgersfort Project (in which the Company last invested in late 2012). The Company owns 50 per cent. of the Burgersfort nickel project ("the Burgersfort Project"). The Company's JV partner will be co-investing in the Burgersfort Project to maintain its equity interest. The Burgersfort Project, which is located in the Mpumalanga Province of South Africa, has the possibility of being the twin sister project to the Zebedelia Project. Previous exploration of this site by Goldfields and Falconbridge identified several shallow disseminated nickel targets and three deeper massive sulphide nickel targets where diamond drilling was undertaken. Work on the property will be advanced initially with metallurgical work by SGS following additional diamond drilling. The results of the metallurgical work will be used in the scoping study; and

· to finance the Company's working capital requirements

In addition, the placing proceeds will also allow the Company to consider new acquisition targets.

Update on Zebediela Nikel Project

Drill testing of potential extensions of the nickel mineralization, infill drilling and metallurgical work will be conducted in the next few weeks, with results expected to be announced within 8 to 10 weeks of completion.

Details of the Placing

Niketo Co.Ltd ("Niketo"), which owns a shareholding of 17.6 per cent. of the Company's issued share capital, has agreed to subscribe for 24,444,444 Placing Shares.

The participation of Niketo in the Placing is a related party transaction under the AIM Rules for Companies. Mr Jay Vieira and Mr David Subotic, the independent directors, having consulted with the Company's nominated adviser, Northland Capital Partners Limited, consider that the terms of Niketo's participation in the Placing are fair and reasonable so far as the shareholders of the Company are concerned.

Proposed Subscription by Directors

In addition to the Placing, the Board has been advised that John Zorbas and David Subotic, directors of the Company each intend to subscribe for 3,333,333 new Ordinary Shares on the same terms as the Placing, following the announcement of the Placing.

Commenting on the placing, John Zorbas, CEO of URU Metals Limited commented:

"This placing, at a 12.5% premium to the placing price in November 2016, represents a further show of confidence by investors in the Company's assets. The new funds raised will allow the Company to advance the Zebediela nickel project, and also allow it to re-commence work on its sister nickel project, Burgesfort, and also consider new acquisition or investment opportunities. We expect the next six months to be a time of significant progress and development for the Company and its project portfolio and look forward to updating shareholders with key milestones and regular news over this period."

A further announcement will be made in due course.

This announcement contains inside information for the purposes of Article 7 of Regulation 596/2014.

Zebediela Nickel Sulphide Project, South Africa 

The prospecting rights that make up the Zebediela Nickel Project are held by URU's wholly owned South African Subsidiary Lesego Platinum Uitloop ("LPU"). The Project is situated approximately 7km north east of Mokopane (formerly Potgietersrus), in Limpopo Province, South Africa. The project area is located less than 5km from the N1 national highway linking two major cities, and access onto the farms is by all-weather tar and dirt roads. In addition, the national Johannesburg to Polokwane railway line has a siding on the property.

A previously completed NI 43-101 Mineral Resources Estimate at the Project defined:

• An Indicated resource of 485.4 Mt at a grade of 0.245% Ni

• An Inferred resource of 1.115.1 Mt at a grade of 0.248% Ni

Burgersfort Nickel Sulphide Project, South Africa

50% ownership of Burgersfort, located in the Mpumalanga Province of South Africa. Previous exploration identified disseminated nickel targets and three deeper massive sulphide nickel targets.