Trading Symbols

AIM: UFO

FWB: I3A1

23 August 2023                                                                                                                                 

Alien Metals Ltd

("Alien" or "the Company")

Preferred Construction and Operations Contractor Secured

Alien Metals Ltd (AIM: UFO), a minerals exploration and development company, is pleased to announce that its wholly-owned subsidiary Iron Ore Company of Australia Pty Ltd ("IOCA") has awarded REGROUP Australia ("REGROUP") as its preferred primary contractor to undertake the construction works, mining operations and haulage services for its flagship Hancock Iron Ore Project ("Hancock" or the "Project") in the Pilbara region of Western Australia.

IOCA has conducted a competitive market engagement over the previous six months to identify commercially and technically adept contractors to undertake works as part of the Hancock development and operations. This process has involved pre-qualified and targeted proponents submitting bids for specific scopes of works and agreeing to key commercial terms.

REGROUP are a highly renowned and experienced civil construction, mining operator and haulier, having executed projects that exceed A$100 million on multiple occasions. It operates one of the largest privately and independently owned fleets in Western Australia, with clients that include Newcrest Mining, Roy Hill and Element 25. The selection of REGROUP allows the Company to update its financial model as part of the Definitive Feasibility Study work streams.

Highlights

·    REGROUP has been selected as the preferred construction contractor for:

o Construction of an intersection of the Project area at the Great Northern Highway; and

o Construction of an access track from the Great Northern Highway to the Mine Site.

·    REGROUP has been selected as the preferred operations contractor for:

o Mining Services (that is inclusive of any drilling and blasting activities); and

o Haulage Services for the haulage of ore from the Mine Site to Port Hedland.

·    The selection of REGROUP as the primary contractor for construction and operations for the Hancock Project significantly de-risks the Project and removes inherent interface and delay risk across the mine construction and operational activities.

·    REGROUP are a highly experienced civil construction, mining and haulier group, noted for its prioritisation of environmental consciousness and partnerships with traditional owners and communities.

·    The pricing submitted by REGROUP's bid supports:

o The potential for capital savings when compared to those forecasted in the scoping study; and 

o It is consistent with the assumptions made by the Scoping Study to deliver direct cost of production of approximately US$60 per tonne.

·    The award of this contract remains subject to the completion of a positive DFS, approvals, funding and the Board making a final investment decision.

Troy Whittaker, Chief Executive Officer of the Company, commented:

"Securing REGROUP as a key contractor for the Hancock Project is a significant milestone for the company as it further de-risks the Hancock Project. This is the first step in locking in relationships with contractors on the back of the IOCA sourcing process, securing competitive pricing from contractors, which moves planning for the project forward.

"We are excited to partner with REGROUP, a company that shares our values. REGROUP has set the goal of becoming carbon neutral via the use of a fully battery-powered fleet and the utilisation of solar and wind to help power their sites. That combined with their commitment to advancing indigenous businesses, notably through the championing of Maramara in Western Australia, a majority Indigenous-owned PTY LTD company, is one of the reasons why we teamed up with REGROUP."

Michael Still, Managing Director of REGROUP, commented:

"REGROUP is looking forward to working with IOCA, firstly in the establishment of their mine, as well as the long-term success of the operations from pit to port. We also see a great opportunity to support first nations business, Maramara, in delivering the civil scope of this exciting project. We would utilise our expertise as a Pilbara-based business and being a partner of a values-based miner such as IOCA, we are eager to see the impact we know this project will have on the Pilbara communities.

"In being a Greenfields site, the Hancock Project lends itself well to autonomous and electrified solutions for both the mining and bulk haulage fleet. We will continue to work with our partners in Scania and Janus to integrate new and emerging technologies where practical, both on-site and in Port Hedland. The consolidation of the construction and operational activities under one group will facilitate speed to market for IOCA and provides us with the opportunity to embed our expertise early in the project."

Further Information

Figure 1: Location of Hancock Iron Ore Project, Western Australia

Figure 2: Overview of the Intersection at the Great Northern Highway

Figure 3: Close up, overview of intersection at the Great Northern Highway

Figure 4: Proposed Access Track, Great Northern Highway to Mine Site

Figure 5: Example of REGROUP Mining Fleet operating in the Pilbara

Figure 6: Example of REGROUP Haulage Fleet operating in the Pilbara

For further information please visit the Company's website at www.alienmetals.uk, or contact:

Alien Metals Limited Troy Whittaker

T: +44 (0) 20 7138 3204 (c/o BlytheRay)

Beaumont Cornish Limited (Nomad)

James Biddle / Roland Cornish

Tel: +44 (0) 207 628 3396

WH Ireland Ltd (Joint Broker)

Harry Ansell / Katy Mitchell

Tel +44 (0) 207 220 1666

BlytheRay (Financial PR)

Tim Blythe / Megan Ray / Said Izagaren

Tel: +44 (0) 20 7138 3204

Notes to Editors:

Alien Metals Ltd is a mining exploration and development Company listed on the AIM market of the London Stock Exchange (LSE: UFO). The Company's focus is on delivering a profitable, long life direct shipping iron ore operation based out of the Pilbara in Western Australia. In 2019, the Company acquired 51% of the Brockman and Hancock Ranges high-grade (Direct Shipping Ore) iron ore projects and in December 2022 moved to 90% legal and beneficial ownership. The Company also acquired 100% of the Vivash Gorge Iron Ore project in the west Pilbara in July 2022.

The Company acquired 100% of the Elizabeth Hill Silver Project, which consists of the Elizabeth Hill Historic Mining Lease and the 115km² exploration tenement around the mine.

In March 2022 the Company acquired 100% of the former joint venture interest in the Munni Munni Platinum Group Metals and Gold Project in the West Pilbara, Western Australia, one of Australia's major underexplored PGE and base metals projects. Munni Munni holds a historic deposit containing 2.2Moz 4E PGM: Palladium, Platinum, Gold, Rhodium.

The Company also holds silver, copper and base metal projects in various locations around the world however is currently looking at the best way to divest these for the benefit of shareholders.