Memorandum of Understanding

31 August 2021

GCM Resources plc

("GCM" or the "Company")

MOU with Sion Corporation, Versatech Energy Innovation Ltd, and AC Biode Co Ltd

GCM Resources plc (LON: GCM), an AIM quoted mining and energy company, is pleased to advise that it has agreed a memorandum of understanding ("MOU") with Sion Corporation of Japan ("SION"), Versatech Energy Innovation Limited ("VERSATECH"), and AC Biode Co. Ltd ("AC BIODE") for providing a suitable and effective environmental solution for the management of the fly-ash waste product that will be produced by the Phulbari Coal and Power Project ("the Project"). This will include, inter alia, investigations into the production of the composite material CircuLite from fly-ash produced by the Project and the application of CircuLite to various environmental and agricultural improvements within Bangladesh.

The primary objective of this MOU is to establish a cooperative relationship between the Parties, and to pursue an agreed objective to improve the environmental performance of the Project and extend the Project's benefits for Bangladesh through the application of CircuLite. 

Under the MOU, the parties have agreed to the following salient terms:

· GCM, SION, VERSATECH, and AC BIODE, shall:

o review the coal properties and fly-ash production for the Project;

o draft a proposal for the management and treatment of the fly-ash utilizing their technology;

o include in that Proposal, the application of CircuLite to environmental and agricultural improvement projects in Bangladesh; and

o include in that Proposal, production scale and financial estimates so that the Parties may be in a position to prepare a draft business structure and business plan for managing the fly-ash production and utilisation and, maximising the benefits.

The MOU has a term of 12-months, with the intention that it will be superseded, in due course, by a more detailed working arrangement between the parties, but may be terminated earlier under certain prescribed conditions.

SION is a Japanese research and development corporation, based in Japan. Its primary focus is developing and transferring technology to support the "Circular Economy" aimed at eliminating waste and protecting the environment and its natural resources. Sion is listed on the United Nations Industrial Development Organisation's web site ("UNIDO") and recognised for its development of the multi-functional composite material, CircuLite, that has potential to improve the natural environment through its application for water purification, air pollution control and soil decontamination and improvement for agriculture. CircuLite, which can be manufactured from fly-ash, was registered by the UNIDO on 31 October 2019.

Versatech is a Hong Kong based environmental company and the authorized representative of Sion with responsibility for overseeing the development of CircuLite outside of Japan. Under the MOU it will provide technical support, in conjunction with SION, for the planning and development of environmental solutions for the Project.

AC BIODE is a chemistry-based start-up in Japan and Luxembourg, cooperating with SION on CircuLite, develops the world's first AC battery systems, Zn-Air batteries, and chemical recycling catalysts for plastic waste. AC BIODE is backed by EIT InnoEnergy, a body of the EU.

Michael Tang, CEO of GCM, commented: "We are pleased to announce our evolving relationship with SION and its partner organisations, VERSATECH, and AC BIODE, and the exciting prospect of being able to convert the fly-ash from the Phulbari Coal and Power Project in to CircuLite, a composite material with wide-ranging environmental applications. Traditionally, the market for fly-ash, being the main waste product from coal-fired power generation, is the cement industry. However, CircuLite is potentially a significant value-adding opportunity for the Project, as it has far-ranging applications from water and air pollution treatment to soil conditioning with ensuing agricultural production improvements. GCM and its mine and power plant development partners look very much forward to working with SION, VERSATECH, and AC BIODE to integrate CircuLite production with the Project and unleash further significant benefits for Bangladesh."

About GCM Resources

GCM Resources plc (LON: GCM), an AIM listed mining and energy company, has identified a high-quality coal resource of 572 million tonnes (JORC 2004 compliant) at the Phulbari Coal and Power Project (the "Project") in north-west Bangladesh.

Utilising the latest highly energy efficient power generating technology, the Phulbari coal mine is capable of supporting power plants of up to 6,000MW. GCM is awaiting approval from the Government of Bangladesh to develop the Project. The Company has a strategy of combining the Company's mine proposal with up to 6,000MW of power generation, together with credible, internationally recognised strategic partners. GCM aims to deliver a practical power solution to provide the cheapest coal-fired electricity in the country, in a manner amenable to the Government of Bangladesh.