WRES.L Regulatory News (WRES)

30 September 2021

W Resources Plc

("W" or the "Company")

Half Year Results

W Resources Plc (AIM:WRES), the tungsten, tin and gold mining company with assets in Spain and Portugal, is pleased to announce its half year results for the six months to 30 June 2021.

HIGHLIGHTS

La Parrilla, Tungsten and Tin Project, Spain

· Revenue increased by 95% to €1.97m (H1-2020: €1.01m)

· Total concentrate production increased by 30% to 222.6 tonnes ("t") (H1-2020: 171.0t)

· Tungsten concentrate production increased by 60% to 169.9t (H1-2020: 106.5t) and 52.7t of tin concentrate (H1-2020: 64.5t)

· Plant recovery for tungsten concentrate increased by 135% to 40% (H1-2020: 17%)

· Plant recovery for tin concentrate increased by 46% to 35% (H1-2020: 24%)

· Plant utilisation increased by 43% to 87% (H1-2020: 61%)

· Completed nine shipments of tungsten concentrate, totalling 179.2t and two tin concentrate shipments totalling 39.3t. This interim report corrects the previous omission of one tungsten shipment reported for Q2 2021 in the RNS issued on 15 July 2021

· Successful completion of the Plant Improvement Programme

· Successful completion of the first water dam resulting in regaining access to the higher-grade ore in the La Parrilla open pit

· The European tungsten APT price was trading at US$312 - 318 mtu on 24 September 2021, a significant increase over the last 9 months - Source: Fastmarkets MB

· As at 24 September 2021, tin prices on the London Metal Exchange were trading at US$37,525 per tonne and have strengthened over the last 9 months Source: Fastmarkets MB

Corporate

· Strengthened the management team at La Parrilla with the appointment of Mr. Jesus Martin as Plant Manager in April 2021

· Completed a Capital Reorganisation and Share Consolidation

· Received €5.2m grant from the Junta de Extremadura Government in Spain

Michael Masterman, Chairman of W Resources, commented: "Significant progress has been made at the La Parrilla mine with increases in plant recoveries, production and sales as well as plant utilisation and this is set to continue into H2 2021 and beyond.

"The decisions taken by the Company to implement the Plant Improvement Programme and the way in which the senior management managed and implemented the forced action placed on the Company to dewater the open pit has enabled the team to achieve the tangible progress we are now making.

"Development at La Parrilla in H1 2021 has established a more robust platform for the remainder of the year to build our production run-rate towards our T2 Target of 675t of concentrate per quarter.

"Finally, I would like to take this opportunity to thank all our employees for their continued hard work and dedication especially over the last twelve months through a challenging pandemic, during which real progress has been made at the La Parrilla mine."

The information contained within this announcement is deemed to constitute inside information as stipulated under the retained EU law version of the Market Abuse Regulation (EU) No. 596/2014 (the "UK MAR") which is part of UK law by virtue of the European Union (Withdrawal) Act 2018. The information is disclosed in accordance with the Company's obligations under Article 17 of the UK MAR. Upon the publication of this announcement, this inside information is now considered to be in the public domain.

Enquiries:

CHAIRMANS STATEMENT

I am pleased to report on progress in the first six months of 2021, where our management team made solid progress at the La Parrilla tungsten and tin mine in Spain, which is now gaining traction as we build production.

This was against a backdrop of a period which was not without its challenges with the global pandemic continuing to impact communities in Spain and Portugal, in addition to unseasonal weather at La Parrilla.

Completion of the Plant Improvement Programme as well as facing and overcoming the challenges of excessively high water levels within the open-pit typifies the character and determination of the team at the mine.

Real progress has been made in all of the key areas at the mine as highlighted by the improving metrics and the increase in revenue.

With tangible production progress at the mine the team continues to introduce plant improvements which have resulted in improved efficiencies and are now increasing production towards the planned plant capacity. The mine is now well placed to take advantage of improving market conditions and extremely strong customer demand.

Alongside this, activity has continued at our Portuguese projects with progress on the full mining licence at Régua, and the application for additional licences at Tarouca and we are hopeful that the trial mining licence applied for at São Martinho in September 2018 will be granted in due course.

TUNGSTEN & TIN

La Parrilla - Spain

La Parrilla is a large-scale, low-cost, long-life tungsten and tin mine, located approximately 310km southwest of Madrid. It has Australasian Joint Ore Reserves Committee ("JORC") compliant resources totalling 49 million tonnes ("Mt") at a grade of 0.1% of tungsten trioxide ("WO3") and JORC compliant reserves of 29.8 Mt (as shown in Appendix 1 of this Interim Report for the six months to 30 June 2021).

Production at La Parrilla started to improve in H2 2020 and progress has continued into H1 2021 as a consequence of the Plant Improvement Programme and further refinement of the production process.

In H1 2021, plant recoveries for tungsten concentrate increased to 40% and to 35% for tin concentrate with plant utilisation increasing to 87%.

With the challenges of unseasonal rainfall to contend with, the main priority in Q2 was to resolve the high water levels at the mine in order for the team to safely access high-grade ore. Following completion of the first 500,000m3 water dam, the dewatering of the open-pit was completed on 24 June 2021 and the Company was then able to continue mining and processing the higher-grade ore.

As previously outlined, the key objective for the La Parrilla mine remains to reach the target to mine 2mtpa ("million tonnes per annum") of run of mine ore ("ROM").

Grant Received

In March 2018, the Junta de Extremadura in Spain awarded a Grant of €5.3m to W's 100% owned subsidiary, Iberian Resources Spain SL. The conditions set in order to be able to receive the Grant, were a minimum investment in plant and equipment of €16.6m and the creation of at least 20 full time positions. In May 2021, W received €5.2m from the Junta de Extremadura Government in full settlement of the original Grant.

Tungsten and Tin Sales

In H1 2021, the Company completed nine shipments of tungsten concentrate, totalling 179.2 tonnes ("t") and two tin concentrate shipments totalling 39.3t. This interim report corrects the previous omission of one tungsten shipment reported for 2Q 2021 in the RNS issued on 15 July 2021.

Importantly, the quality of tungsten and tin concentrate produced consistently meets or exceeds customer offtake requirements and we have seen consistent increases in concentrate quality and, in producing up to 65% WO3 from the plant, we have shown that we are comfortably able to exceed our benchmark grades of 60%.

PORTUGUESE PROJECTS

Régua Tungsten Mine Project

This high-grade, development-ready tungsten project with low capital cost and an updated JORC compliant mineral resource of 4.47 Mt at a grade of 0.27% WO3, including an indicated resource of 3.74 Mt at a grade of 0.28% WO3, which was completed by Golder Associates Pty Ltd ("Golder") in January 2020.

Mining operations at Régua commenced early March 2020 with the commencement of mining in the first of two adits with skarn ore zones intersected in the initial development. However, following an extension in Portugal of COVID-19 related restrictions, mining activity suspended.

Plant design and procurement activities were near completion in advance of construction activities which had to be rescheduled because of the impact of COVID-19.

After this enforced period of inactivity due to the pandemic and the passing of new mining legislation in Portugal, the Company is pleased to state that the General Directorate of Energy and Geology ("DGEG") has confirmed that it has presented the documents for the Régua Full Mining Licence (tungsten project) for the approval of the Director General and has indicated that the Company should expect this license to be awarded shortly. Once the full mining licence has been awarded, the Company plans to recommence its mining activities at Régua. The DGEG has confirmed that they have prepared the draft contract for the licence, and this is currently being reviewed by the Director General. The Company, expects to receive the final approval for this licence during Q4 2021. In parallel, the environmental study is being completed and will be submitted during Q4 2021. Its approval will allow the release of the underground mining works authorisation, following the granting of the full mining licence.

The Company looks forward to being able to announce progress with Régua which has an ore grade of 0.28% WO3 , almost three times that of the ore grade at La Parrilla. Production at Régua will increase W's total concentrate production, reduce average costs per tonne and increase sales.

Tarouca Exploration

While the development focus has been on Régua we have also applied for a new exploration licence at Tarouca. W expects to be able to tie in operations at Tarouca to the Régua mining and processing operations once the updated licence is granted. The draft exploration licence is being prepared by the DGEG following new publication of new Mining Law Regulations.

CAA Portalegre - Gold

São Martinho Trial Mining Licence Application

São Martinho currently has a JORC 2012 gold resource of over 110,000oz. Results from the drilling campaigns in 2017 and 2018 provided a solid base to drive extension drilling with the potential for a materially larger resource.

Following the successful drilling programme at São Martinho, the team submitted an application for a trial mine and gold production licence in September 2018. Although the COVID-19 crisis and associated state of emergency in Portugal has further delayed the final approval process, the Company expects the trial mine licence to be granted in due course. The trial mine licence, once granted, will allow W to pursue a drilling programme to expand the resource and resolve the geological interpretations of a flat lying structure (Golder) and a deeply dipping structure (SRK) which have partially arisen due to the combination of structural complexity and multistage mineralising events.

Importantly, a trial mine is a key level of licence tenure and will provide the authority to mine shallow ore and produce gold on a pilot basis. We are actively exploring opportunities to bring in Joint Venture parties and monetise the gold discovery. New expenditure on this project is pending grant of the trial mining licence.

CAA Exploration Licence Application

While the application process for the trial mining licence proceeds, the Company has also applied for a new exploration licence in the Assumar area. This expansive area (267 km2), covering the ground adjacent to the trial mining licence area, has been applied for to include potential extensions of the known mineralised system and new potential areas.

Finance

With the issues faced by the Company of high-water levels at the open-pit and the need to regain access to higher-grade ore bodies, the team has continued to ensure W maintains a strong buffer of additional financial resources to mitigate against the resulting delayed production and also to ensure W remains resilient in the year ahead.

In January 2021, the Company drew-down its second tranche of £500,000 from the £4.0 million Atlas Capital Markets ("Atlas") convertible bond facility. These funds were used to advance the Régua development and provide additional working capital for the Company.

Also in January 2021, the Company agreed a six month extension to the €5.0 million loan facility with the Spanish bank, Santander. This loan was secured against the €5.3 grant awarded by the Extremadura regional Grant and was repaid in May 2021.

In March 2021, the Company completed a Share Reorganisation and Share Consolidation. The Board believed that this action should improve the liquidity and marketability of the Company's shares to a range of investors, including institutional investors through the creation of a higher price per Ordinary Share.

In May 2021, the Grant from the Junta de Extremadura Government, which was initially awarded in March 2018 for the sum of €5.3m, subject to one amendment, was paid and the total proceeds of €5.2m received in full. These funds were then used to repay the €5.0 million loan facility with the Spanish bank, Santander.

Also in May 2021, the Company announced a placing to raise £2.5m which was duly completed. Subscribers under the Placing were offered warrants to subscribe for new ordinary shares ("Warrants") in conjunction with the Placing Shares on the basis of 1 Warrant for every 2 Ordinary Shares subscribed for. The Warrants are exercisable at any time in the two years following admission of the Placing Shares to trading on AIM at an exercise price of 12p per share. The placement brought new institutional investors on to the register, and the majority of the funds raised from the Placing were used to achieve the permanent solution to high water levels thereby giving access to higher-grade ore and significantly increasing tungsten and tin production at the La Parrilla mine as well as providing additional working capital to cover the ramp-up in production.

Post half year end

Blackrock Financial Management Inc. ("BlackRock") continues to show its support for W with regard to agreeing Payment in Kind ("PIK") payments for several quarterly interest payments. The Company and BlackRock are finalising an amendment agreement to allow payment of interest by PIK for the February, May, August and at W Resources' option, the November 2021 interest payments. Under the agreement a number of warrants of W Resources will be issued for the 2021 PIK payments. Once the amendment to the agreement has been finalised the Company will update the market on the number of warrants to be issued.

Tungsten and Tin Market

Tungsten and tin demand and supply has been disrupted by a number of factors over the last twelve months, ranging from COVID-19, supply problems in China, the world's largest producer of tungsten and the shortage of available container space aboard international shipping.

As the world economy emerges from the COVID-19 pandemic we expect an increase in global demand to further support market pricing for both tungsten and tin.

The European tungsten APT price was trading at US$312 - 318 mtu on 24 September 2021, a significant increase of 36% from the beginning of the year - Source: Fastmarkets MB.

As at 24 September 2021, tin prices on the London Metal Exchange were trading at US$37,525 per tonne and have strengthened over the last 9 months Source: Fastmarkets MB. Tin plays a pivotal role in all modern technology and has a large role to play in the electric vehicle market and the scarcity of supply is expected support a solid and perhaps strengthening market conditions going into 2021.

COVID-19 and Safety

We continue to focus on the health and safety of our staff and diligently follow the policies implemented by the Spanish government as well as those introduced by the management team at the La Parrilla mine.

Board and Management Changes

In February 2021, Non-Executive Director, Mr Oscar Marin Garcia stepped down from the Board to focus on increased commitments in his business.

In April 2021, Mr. Jesus Martin was appointed Plant Manager at the La Parrilla Mine. Jesus brings more than 40 years' experience operating metallurgic and gravimetric plants in Spain, most recently the Barruecopardo tungsten mine in Western Spain.

Outlook

W entered H2 2021 with good momentum at La Parrilla with a clear focus on working towards the T2 production target of 2,700t of concentrate per annum. After a challenging period, the team are building consistent traction with production now increasing quarter on quarter. With work on the second dam at La Parrilla expected to be completed later this year, W are confident that we have mitigated any future water issues. Having access to a better quality and a better grade of ore will see production increase, helped of course by moving to operating on a 24 hour, 7 day a week basis earlier this month.

Michael Masterman

Chairman

30 September 2021

W RESOURCES PLC

UNAUDITED CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME

FOR THE SIX MONTHS TO 30 JUNE 2021

W RESOURCES Plc

UNAUDITED CONSOLIDATED STATEMENT OF FINANCIAL POSITION

AT 30 JUNE 2021

W RESOURCES PLC

UNAUDITED CONSOLIDATED STATEMENT OF CHANGES IN EQUITY

FOR THE SIX MONTHS TO 30 JUNE 2021

W RESOURCES PLC

UNAUDITED CONSOLIDATED STATEMENT OF CASH FLOWS

FOR THE SIX MONTHS TO 30 JUNE 2021

W RESOURCES PLC

NOTES TO THE INTERIM RESULTS

FOR THE SIX MONTHS TO 30 JUNE 2021

1. BASIS OF PREPARATION

The unaudited consolidated Interim Report of the Group has been prepared under the historical cost convention.

As an AIM listed Company the company is entitled to exemption from adopting IAS 34 and this exemption has been taken to the effect that segment information is not disclosed.

The Interim Report has been prepared using the accounting policies used in the audited consolidated financial statements for the year ended 31 December 2020, and which will continue to be used for the financial statements for the year ended 31 December 2021.

The Interim Report is unaudited. The consolidated financial statements herein do not amount to full statutory accounts within the meaning of Part 15 of the Companies Act 2006.

These unaudited consolidated financial statements were approved on 30 September 2021.

Going Concern

The Directors are satisfied that the Group has sufficient resources to continue its operations and to meet its commitments in the foreseeable future. These unaudited consolidated financial statements have therefore been prepared on the going concern basis.

Directors Responsibilities

The Directors are responsible for preparing the Interim Report and the unaudited consolidated financial statements in accordance with applicable law and regulations. The Directors have elected to prepare the unaudited consolidated financial statements in accordance with International Financial Reporting Standards.

In preparing these financial statements, the Directors are required to:-

- select suitable accounting policies and apply them consistently

- make judgements and accounting estimates that are reasonable and prudent

- prepare the unaudited consolidated financial statements on the going concern basis unless it is inappropriate to presume that the company will continue in business.

The Directors are responsible for keeping adequate accounting records that are sufficient to show and explain the Company's and the Group's transactions and disclose with reasonable accuracy at anytime the financial position of the Company and the Group.

2. INCOME TAX

There is no income tax arising on the loss on ordinary activities for the six months ended 30 June 2021.

3. LOSS PER ORDINARY SHARE

W RESOURCES PLC

APPENDIX 1

JORC COMPLIANT MINERAL RESOURCE ESTIMATES

La Parrilla Proven and Probable Mineral Reserves - JORC 2012

Note: The La Parrilla mine reserves are set out in the following table based on the optimal LOM Pit. Estimate for La Parrilla Deposit using a 330 ppm WO3 Cut-Off Grade and 5% dilution. All tonnes quoted are dry tonnes. Differences in the addition of tonnes to the total displayed is due to rounding.

The La Parrilla JORC-compliant mineral reserves update was fully disclosed, with JORC Table 1 in a Company news release on 14 June 2017. Mr Adén Muñoz of AYMA Mining Solutions SL, a Spanish Mining Engineering company based in Seville was the Competent Person responsible for the La Parrilla Proven and Probable Mineral Reserves. The mineral reserves are based on indicated and measured resources prepared by Golder Associated in March 2017 (RNS, 11 May 2017).

Mineral Resources for La Parrilla Deposit Using a 400 ppm WO3 Cut-Off Grade within Mineralised Domains - JORC 2012

The La Parrilla JORC-compliant mineral resource update was fully disclosed, with JORC Table 1 in a Company news release on 11 May 2017. Mr Andrew Weeks (Golder Associates Pty Ltd) was the Competent Person responsible for the Mineral Resource Estimate for the La Parrilla deposit.

Régua JORC Compliant Mineral Resource Estimate reported at a 0.1% WO3 cut-off grade

The Régua JORC compliant mineral resource update was fully disclosed, with JORC Table 1 in a Company news release on 5 February 2020. Mr Andrew Weeks (Golder Associates Pty Ltd) was the Competent Person responsible for the Mineral Resource Estimate for the Régua deposit.

São Martinho Maiden JORC Compliant Mineral Resource Estimate

The São Martinho maiden JORC-compliant mineral resource update was fully disclosed, with JORC Table 1 in a W Resources Plc RNS announcement on 8 June 2016. Mr Jorge Peres (Golder Associates Pty Ltd) was the Competent Person responsible for the Mineral Resource Estimate for the São Martinho deposit.

The Company confirms that it is not aware of any new information or data that materially affects the information included in the original market announcements and, all material assumptions and technical parameters underpinning the Mineral Resource and Reserve estimates continue to apply and have not materially changed. The Company confirms that the form and context in which the Competent Persons' findings are presented have not been materially modified from the original market announcements.