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Sandfire Resources – Publishing of Quarterly Report & Presentation

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LONDON, October 28, 2021--(BUSINESS WIRE)--

28 October 2021

Metal Tiger plc

("Metal Tiger" or the "Company")

Sandfire Resources – Publishing of Quarterly Report & Presentation

Metal Tiger plc (AIM: MTR, ASX: MTR), the AIM and ASX listed investor in natural resource opportunities, is pleased to announce that Sandfire Resources Limited ("Sandfire") has published a Quarterly Report for the quarter ended 30 September 2021 and an accompanying presentation.

Highlights

  • FY 2022 guidance: 64-68kt Cu and 30-34koz Au; C1 costs ~US$1.00-$1.10/lb

  • Sandfire continues to maintain appropriate protocols to minimise the transmission of COVID-19, with no significant disruption to the Company’s operations to date.

  • Maiden Mineral Resource estimate pending and Scoping Study in progress for the Old Highway Gold Prospect and expected to be completed in March 2022 Quarter

Kalahari

  • Construction activities continued to ramp up at the Motheo Copper Mine with the 200-person construction camp operational, construction of the access road continuing and bulk earthworks underway. Detailed process plant engineering design is now completed.

  • Maiden Probably Ore Reserve estimation completed for the A4 Deposit, located 8km west of Motheo, confirming A4 as a high-grade source of additional ore feed for Motheo:

    • 9.7Mt at 1.2% Cu and 18g/t Ag for 114kt of contained copper metal and 5.7Moz of contained silver, representing 85% of the contained copper in the updated A4 Mineral Resource announced last quarter.

  • Pre-Feasibility Study (PFS) completed to inform the A4 Ore Reserve indicates outstanding project economics from an expanded 5.2Mtpa Motheo mining operation, compared to the initial 3.2Mtpa base case development scenario:

    • 116% increase in pre-tax NPV7% to US$672 million (A$937 million) and IRR of 36%

    • Mine life of 10.5 years, peak production of 60ktpa of copper-in-concentrate, strip ratio of 6.5 waste to ore.

    • 15% decrease in LOM all-in sustaining costs to US$1.56/lb.

  • Opportunities identified to further enhance the outcomes of the A4 PFS through integrated mine scheduling and pit optimisations, with these enhancements to be incorporated in a Definitive Feasibility Study (DFS) for the 5.2Mtpa Motheo Expansion. The DFS is expected to be completed in Q3 of FY2022.

  • Total pre-production development capital increased to US$366 million (A$504 million), incorporating development costs for the A4 open pit to first Motheo production plus updated cost forecasts.

  • Outstanding potential for further resource growth confirmed, with step-out drilling confirming high-grade mineralisation ~1.2km south-west of the A4 Mineral Resource envelope:

    • 45m at 2.2% Cu and 42.6g/t Ag from 439m in MO-A4-207D

Black Butte (USA)

  • Sandfire Resources America Inc. took another important step in advancing the fully-permitted Black Butte Copper Project with the acquisition of key property covering the proposed surface infrastructure.

  • US$12 million Bridge Loan Agreement finalised with Sandfire Resources America to complete proposed work programs at Black Butte and provide working capital.

Corporate and Financial

  • Sandfire announced the transformational US$1.865 billion (A$2.572 billion) acquisition of the MATSA Mining Complex in Spain, delivering a world-class mining complex comprising three underground mines feeding a 4.7Mtpa central processing facility producing 100-120ktpa Cu Eq.

  • The transaction immediately transforms Sandfire into one of Australia’s largest copper-focused producers, with pro-forma FY2022 production of 170-194kt Cu Eq at a MATSA C1 cost of US$0.40-0.50/lb and DeGrussa C1 cost of US$1.00-1.10/lb

  • The transaction is fully-funded following completion of a A$1.248 billion (US$905 million) fully underwritten equity raising (institutional entitlement offer and placement completed on 27 September and retail entitlement offer completed on 18 October) and committed debt facilities.

  • Record A$170.1 million net annual profit for FY2021, underpinning a record final dividend of 26cps fully-franked, which was paid on 22 September 2021.

  • Group cash on hand at 30 September 2021 of A$405.5 million (unaudited) following US$100M initial deposit for the MATSA acquisition.

  • Sale of Sandfire’s 16% investment in Adriatic Metals Plc (ASX:ADT) subsequent to quarter-end for gross proceeds of A$97 million.

As previously announced, following completion of the Company’s investment as part of the Sandfire MATSA acquisition equity raising, Metal Tiger is interested in 8,462,057 Sandfire Shares, representing approximately 2% of Sandfire’s issued share capital (post institutional raise). Of this holding, 2,842,667 Sandfire Shares are subject to an equity derivative financing arrangement with a global investment bank.

A link to Sandfire’s Quarterly Report, is set out below:

https://cdn-api.markitdigital.com/apiman-gateway/ASX/asx-research/1.0/file/2924-02442667-6A1058939?access_token=83ff96335c2d45a094df02a206a39ff4

A link to Sandfire’s Quarterly Report presentation, is set out below:

https://cdn-api.markitdigital.com/apiman-gateway/ASX/asx-research/1.0/file/2924-02442668-6A1058940?access_token=83ff96335c2d45a094df02a206a39ff4

For further information on the Company, visit: www.metaltigerplc.com

Enquiries:

Michael McNeilly

(Chief Executive Officer)

Tel: +44 (0)20 3287 5349

Mark Potter

(Chief Investment Officer)

James Dance

Robert Collins

Strand Hanson Limited (Nominated Adviser)

Tel +44 (0)20 7409 3494

Paul Shackleton

Steve Douglas

Arden Partners plc (Broker)

Tel: +44 (0)20 7614 5900

Gordon Poole

James Crothers

Rebecca Waterworth

Camarco (Financial PR)

Tel: +44 (0)20 3757 4980

Notes to Editors:

Metal Tiger PLC is admitted to the AIM market of the London Stock Exchange AIM Market ("AIM") and the ASX Market of the Australian Securities Exchange Market ("ASX") with the trading code MTR and invests in high potential mineral projects with a base, precious and strategic metals focus.

The Company's target is to deliver a high return for shareholders by investing in significantly undervalued and/or high potential opportunities in the mineral exploration and development sector. Metal Tiger has two investment divisions: Equity Investments and Project Investments.

Equity Investments invests in undervalued natural resource companies. The majority of its investments are listed on AIM, the TSX and the ASX, which includes its interest in Sandfire Resources Limited (ASX: SFR). The Company also considers selective opportunities to invest in private natural resource companies, typically where there is an identifiable path to IPO. Through the trading of equities and warrants, Metal Tiger seeks to generate cash for investment for the Project Investments division.

Project Investments is focused on the development of its key project interests in Botswana, where Metal Tiger has a growing interest in the large and highly prospective Kalahari copper/silver belt through its interest in Kalahari Metals Limited.

The Company actively assesses new investment opportunities on an on-going basis and has access to a diverse pipeline of new opportunities in the natural resources and mining sectors. For pipeline opportunities deemed sufficiently attractive, Metal Tiger may invest in the project or entity by buying publicly listed shares, by financing privately and/or by entering into a joint venture.

View source version on businesswire.com: https://www.businesswire.com/news/home/20211028005601/en/

Contacts

Metal Tiger plc

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