Calidus Resources - Company Update

Keras Resources plc / Index: AIM / Epic: KRS / Sector: Mining

15 May 2019

Keras Resources plc ('Keras' or the 'Company')

Calidus Resources' Pre-Feasibility Study on Track for Completion in July

Keras Resources plc, the AIM listed mineral resource company, notes the announcement released by Calidus Resources Limited (ASX:CAI) ('Calidus'), in which it currently holds a c.32.3% interest, regarding an update at the Warrawoona Gold Project in the Pilbara of Western Australia ('Warrawoona' or the 'Project').

Highlights

· On track to complete Pre-Feasibility Study ('PFS') at the Project in July 2019

· Low capex, simple layout and processing route indicated

· Open pit mine design based on a base load of a single 2km-long open pit at Klondyke

· Underground investigation below the Klondyke open pit commenced

· Geotechnical investigations completed

· Processing route finalised consisting of a simple primary crush, Semi-Autogenous Grinding ('SAG') mill comminution circuit and a gravity gold and conventional carbon-in-leach (CIL) recovery plant

· Valley fill tails dam designed, minimising capital requirements for the tailings storage facility

· Water exploration drilling completed - bore field sites identified near plant

· Final environmental baseline studies being completed in current quarter; submission for permits on track for Q3 2019

Russell Lamming, Chief Executive Officer of Keras, commented, "Calidus is fast-tracking development at the Warrawoona project with completion of its PFS targeted for July 2019. This is extremely positive and serves to underpin the robust economics of this already highly prospective asset, which currently has a 1.25 million-ounce JORC compliant gold resource. Importantly, the PFS is expected to deliver a simple layout and processing route, which highlights the Project's low capex potential and its ability to generate significant value for shareholders."

Keras currently holds 458 million shares in Calidus, representing approximately 32.3% of the current issued share capital of Calidus. On successful completion of Calidus' PFS, an additional 265 million performance shares of Calidus ('Performance Shares') owned by Keras will be converted into ordinary shares.

The information in this RNS has been extracted from the ASX announcement made by Calidus Resources Limited on 11 April 2019. To view a full version of the Calidus announcement, which includes figures and maps, please click here: https://www.calidus.com.au/investors/asx-announcements/. For more information on Calidus and Warrawoona, please visit www.calidus.com.au.

For the purposes of MAR and Article 2 of Commission Implementing Regulation (EU) 2016/1055, this announcement is being made on behalf of Russell Lamming, Chief Executive Officer. This announcement contains inside information for the purposes of Article 7 of Regulation (EU) 596/2014.

**ENDS**

For further information please visit www.kerasplc.com, follow us on Twitter @kerasplc or contact the following:

Notes

Keras Resources plc is focused on building a strategic portfolio of resource assets. The Company provides investors with exposure to a portfolio of development assets, including manganese, cobalt and nickel in Togo, West Africa. It also has a significant interest in Calidus Resources Limited ('Calidus'), a highly prospective gold exploration and development company in Australia, which is currently undertaking a Pre-Feasibility Study at its Warrawoona gold project. Keras benefits from a highly skilled management team, which has extensive operational experience in Africa and Australia and proven success in advancing assets up the value curve.