Bilateral Investment Treaty Claim – Legal Opinion

16 December 2020

Pathfinder Minerals Plc

("Pathfinder" or the "Company")

Bilateral Investment Treaty Claim - Legal Opinion

Pathfinder announces the following update in relation to a possible claim against the Government of Mozambique under the Mozambique - United Kingdom Bilateral Investment Treaty (2004) ("BIT").

Pathfinder announced on 2 November 2020 that, should the Company be unable to resolve its dispute with the Government of Mozambique over the unlawful transfer of mining concession 4623C (the "Licence") (the areas under which were previously licensed to the Company under mining concessions 760C and 4623C) to an unconnected company, the Board intends to seek recourse to the BIT with the support of litigation funders. As part of this strategy, the Board commissioned, and received on 10 December 2020, an updated legal opinion (the "Opinion") from Samuel Wordsworth QC of Essex Court Chambers on the prospects of successfully establishing liability against the Government of Mozambique in a BIT claim against the Government of Mozambique in respect of the Licence. The Opinion predates the Company's licence title holder update announcement of 11 December 2020. The Board does not believe that the change of name of the Licence holder would adversely affect the prospects of establishing liability on the part of the Government of Mozambique.

The Board is pleased to note that the Opinion, which is confidential and legally privileged, is consistent with the Board's expectation that, subject to the interpretation of the facts and applicable laws as they are currently known to the Board and Counsel, there is a 55-60 percent prospect of establishing liability on the part of the Government of Mozambique in a BIT claim under Article 2(2) and 2(3) of the BIT. The Opinion adds weight to the Company's strategy of engagement with prospective strategic partners, as well as with the Government of the United Kingdom, in order to first attempt to reach a resolution with the Government of Mozambique through diplomatic channels. Should this not be possible, the Company then expects to resort to pursuing the BIT claim. The Company has already been approached by third parties who have expressed an interest in funding such a claim, and discussions with various litigation funders continue.

Peter Taylor, Chief Executive Officer of Pathfinder, commented:

"While the Opinion is confidential and subject to legal privilege, I am pleased to advise that it is consistent with the Board's expectations that there is a favourable prospect of establishing liability on the part of the Government of Mozambique in a BIT claim and supports a continuation of the Board's strategy to seek recourse to the BIT should a timely resolution not be achieved. Having obtained the Opinion, the Board will now endeavour to move forward with its discussions with a number of prospective litigation funders and strategic partners with the specific intention of identifying those who recognise the unrealised value for Pathfinder in the Licence and the future upside opportunity should a satisfactory resolution to the dispute over the unlawful transfer of the Licence be reached."

Enquiries:

Pathfinder Minerals Plc

Peter Taylor, Chief Executive Officer

Tel. +44 (0)20 3143 6748

Strand Hanson Limited (Nominated & Financial Adviser and Broker)

James Spinney / Ritchie Balmer / Jack Botros

Tel. +44 (0)20 7409 3494

Vigo Communications (Public Relations)

Ben Simons / Simon Woods

Tel. +44 (0)20 7390 0234

Email. pathfinderminerals@vigocomms.com

Novum Securities Limited (Broker)

Colin Rowbury / Jon Belliss

Tel. +44 (0)20 7399 9400

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").