Advancing Mining Lease and Expanded Footprint

Armadale Capital Plc / Index: AIM / Epic: ACP / Sector: Investment Company

8 February 2022

Armadale Capital Plc

('Armadale' the 'Company' or the 'Group')

Advancing Mining Lease and Expanded Footprint

Armadale, the AIM quoted investment company focused on natural resource projects in Africa, is pleased to announce that it has made further progress developing the mining lease at the Mahenge Liandu Project in Tanzania, as part of ongoing plans to hasten the road to commissioning commercial operations. Furthermore, the Board has applied for three incremental exploration licences which are prospective for graphite mineralisation and materially enhance the Mahenge Liandu Project's exploration potential.

Mining Lease

The Board has advanced the development of the mining lease at the Mahenge Liandu Project on several fronts, which collectively aid progressing the path towards commercial operations. This includes the following areas:

Ø Environmental compliance: To ensure compliance with environmental criteria, the team in Tanzania have installed several instruments for monitoring weather conditions and surface water events. The resultant data will be used in various environmental monitoring studies.

Ø Geotechnical studies: These are now underway, as the team has identified the location of several geotechnical holes. Currently, a bulldozer is being mobilized to site to commence clearing the pads.

Ø Ground water monitoring: This dovetails in with the completion of the geotechnical pads, as boreholes for ground water monitoring have already been identified. The next phase is to complete clearing the drill-pads so that once the environmental studies are completed, the ground water monitoring boreholes can be drilled.

Ø Early Works Development Program: The ongoing work program is focused on planning the early works construction phase of the project development, to allow for a faster development time as funding is secured.

Ø Project economics and free carry interest: A local private consultancy, Above Ground Advisory, has been engaged to initiate talks with the Tanzanian government to progress the economics and free carried interest of the Mahenge Liandu Project.

Enlarged Footprint

To ensure Armadale has the potential ability to scale up the Mahenge Liandu Project, the Board has applied for three incremental exploration licences, which lifts the total to four across 177.8 sq km (from 28.4 sq km previously). Two of the licences are contiguous to the Mahenge Liandu Project, while the third is circa 15km south. Encouragingly, all of the new ground captured by the licences is highly prospective for graphite mineralisation and significantly elevates Armadale's exploration potential in Tanzania.

Nick Johansen, Director of Armadale, said: "Our vision to become a significant low-cost graphite producer in Tanzania continues to take shape having secured the mining lease in September 2021. We are steadily making progress with all necessary regulatory requirements as we push ahead with plans to commence commercial mining operations in a timely manner. Concurrently, we are thinking beyond the horizon and have expanded the footprint significantly which collectively enhances Armadale's overall exploration potential in Tanzania."