Mineral and Financial Investments Limited

Audited Full Year Financial Results and NAV for Period ended 30 June 2023

HIGHLIGHTS

· Fiscal Year-end Net Asset Value £ 9.4M (FYE: 30/6/23) up 26.5%, from £7.5M (FYE: 30/6/22)

· Net Asset Value Per Share ("NAVPS") fully diluted 24.27p, up 21.1%, from 20.04p (FYE: 30/6/22)

· Net Asset Value has increased at Compound Annual Growth Rate of 29.1% since 30 June 2018

· Investment Portfolio now totals £9.1m, up 18.7%, Year/Year from £7.7M (FY: 30/6/22).

· NAVPS growth has exceeded that of the FTSE 350 Mining index and of the S&P GSCI since 2017

Camana Bay, Cayman Island - 20 December 2023 - Mineral & Financial Investments (LSE-AIM: MAFL) ("M&F" or the "Company")) is very pleased to announce its audited Net Asset value and fiscal year results on its activities for the 12 months ended 30 June 2023.

CHAIRMAN'S COMMENTS

During the 12-month fiscal period ending 30 June 2023 your company generated Gross Income of £2.394 million which translated into an Operating Profit of £1.806 million. Net Profit for the full year was £1.550 million or 4.35p per share basic or 4.03p per share on a Fully Diluted ("FD") basis for the period. At the year-end of 30 June 2023, our Net Asset Value (NAV) was £9.423M an increase of 26.4% from the 30 June 2022 NAV of £7.454M. The NAV per share - fully diluted (NAVPS-FD) as of 30 June 2023 was 24.27p, up 21.1% from the 30 June 2022 was 20.04p. Since 30 June 2018, our NAV FD has appreciated on average by 26.5% annually. We continue to be effectively debt free, with working capital of £9.542M.

Summary of Financial Performance (Fig. 1)

In a series of challenging years for the metals and mining sector, we believe 2023 has been the most challenging year since 2013. The industry has experienced slowing total World output (Fig. 3) from a COVID recovery high of 6% in 2021 to an estimated 3% in 2023. In 2022 total World Consumer Prices (Fig. 3) peaked at an 8.7% increase for the full year 2022. We believe cost inflation coupled with rising interest rates, mediocre metal price performance and "peak apathy" for the sector by investment markets has created a brutal environment for the sector and general investment performance. The FTSE 350 Mining Index was up 5.2% Yr/Yr. for the period ending 30 June 2023 (Fig.6). As we write this statement the month over month performance has been down for the major equity markets indices we follow, but the FTSE 350 Mining Index was up 3.9% in October 2023 over September 2023. We consider this might be a turning point. The Directors noted that US 10-year Treasuries rose 27.2% during the Company's fiscal year, ending 30 June 2023 to 3.84%, and today stand at 4.86%. US treasuries, which we believe is the reference point for most interest rate markets, have guided global rates upwards. We also have observed the Western Central Banks, to mitigate inflationary pressures, have increased their rates up along with the US Federal Reserve. We believe a secondary objective, of the central banks is a return to more historically consistent levels of treasury yields ending the prolonged period of depressed interest rates. The Directors note that according to Yale University's Professor Schiller, long term Interest Rates, although volatile over time, have averaged 4.49%.

The regular readers of our Annual Report to shareholders will note that we regularly refer to the International Monetary Fund ("IMF") bi-annual economic forecasts as a yardstick for global economic performance. Additionally, we include the IMF's economic forecast which we believe provide a sense of what the best-informed consensus estimates are for near term economic performance. The IMF is forecasting slowing economic performance from the so-called "Advanced Economies" while forecasting that "Emerging and Developing" economies should continue to generate constant growth through 2024.

IMF - WORLD ECONOMIC OUTLOOK[1] (Fig. 2)

The US dollar, as measured by the DXY Index, which is a trade weighted index of the US dollar (composed of USD vs six foreign currencies), was up 6.0% during our fiscal year, appreciating currencies in that index. This rise exceeds the DXY's compounded growth rate of 3.2% (fig. 5) since 2018 -we believe that a mean reversion will occur at some point should aid the US dollar pricing commodities.

The US Equity market valuation, as measured by the S&P 500 P/E Index, peaked this cycle at 4,766 in December 2022. Our June 30 fiscal period saw the S&P 500 open at 3785, peak at 4,766, but end on 30 June 2023 at 4,450, resulting in a 17.6% yr./yr. gain. The composite measure for the European big cap stocks, the Euro Stoxx 50, appreciated by 27.3% in the period ending 30 June 2023. The Shanghai and Hong Kong equity market indices were down 14.3% and 13.5%, respectively. The Hang Seng (Hong Kong) index today is at 17,101, down 24.6% from its 27 January 2023 peak of 22,701 - Technically it is now in a "bear" market, while the Shanghai exchange is down 16.3% from its January 2023, approaching bear market territory.

Global Stock Index performance (Fig.3)

Source: Bloomberg LLP

M&FI continues to seek suitable strategic investment opportunities that we believe will generate above average returns while adhering to our standards of prudence while seeking above average investment returns. We thank you for your support and we will continue to work diligently and thoroughly to advance your company's assets and market position.

CHIEF EXECUTIVE'S OFFICER'S REPORT

The Company generated gross income of £2.394M during the year, an 84.5% improvement from the previous year's gross profit of £1.297M. The operating profit for the full year, ending 30 June 2023, improved by 135.7% to £1.806M versus last year's operating profit of £766,000.

The rise in profits is mainly due to the improved valuation of Redcorp. Previously we used historical cost accounting to value the investment, but since the publication of the feasibility study in July 2023 it was resolved that the value of the investment should be based on the estimated discounted cash flows from the Feasibility Study of the project, applying an annual discount rate of 20%. This has resulted in a £624,000 uplift in its carried value. The improvement in M&F's profits is principally linked to our investment portfolio performance and administrative costs that rose by 10.6%, less than the rise in M&F's investment performance. Per share earnings were 4.35p (basic) or 4.03p (FD), up 71% from 2.55p (basic) and 2.35p (FD) for the 2022 fiscal year. Foreign exchange rates negatively impacted our pre-tax income by £230,000. as the British Pound rose by about 5% versus the US dollar. The after-tax Net Income for the 2023 fiscal year was £1.550,000 vs. £899,000 achieved during the 2022 fiscal year. M&FI's NAVPS (FD) increased 21.1% year over year to 24.27p. The overall cash and investment portfolios increased to £9.720M or by 26.8% on a year over year basis from £7.665M.

Summary of Financial Performance (Fig.4)

The Directors believe the key to creating shareholder value for Mineral & Financial Investments is attempting to achieve positive risk adjusted investment returns while keeping operating costs low. More specifically, operating costs which grow at a slower rate than the accretion in the Net Asset Value. Our full year administrative costs totalled £588,000, an increase of 10.6% versus the previous year's costs of £531,000. General & Administrative ("G&A") costs were up nominally but declined as a percentage of year/year total assets (6.2% vs. 7.1%). The increase in yr./yr. costs were principally associated with increased share-based payments and higher operating costs for our Swiss subsidiary M&F AG.

Price Performance of Various Commodities & Indices (Fig.5)

Source: Bloomberg LLP

During our fiscal year global commodity price performances were mixed. Precious metals were up modestly, base metals were down with zinc being down 27.5%, which led to reduced mine production from several mines. We also believe that temporary mine closures are critical, and often needed, market reactions to return markets to more favourable supply demand balances. Lead, the standout exception amongst base metals, was up 10.6%. Oil (WTI) prices was up 6.1%, above its 5-year growth trend. Uranium surprised with the creation of several physical U₃O₈ investment funds, and or ETF's and the growth in energy insecurity caused by the energy shortfalls caused by the Russian/Ukrainian conflict. We admit to not having missed the boom in the Lithium market and chose not to chase the sector. Lithium, carbonate prices peaked late in 2022 at US$82.00/kg and are now US$23.00/kg. It is our considered belief that Lithium will be an important part of energy storage as we transition away from hydrocarbon usage. However, we believed that the market was "over exuberant" for Lithium which is the 25^th most abundant mineral on the planet. The US Geological Survey estimated in 2021 that there was 88M/t of Lithium, and total global Lithium consumption in 2023 was 134,000 tonnes (i.e. 0.15% of currently estimated reserves). It should be noted that current estimates are that 80% to 90% of Lithium in EV's will be recycled. The Directors understand that a little-publicized clause in the U.S. Inflation Reduction Act ("IRA") has had US companies scrambling to recycle electric vehicle batteries in North America, which they also believe will put the region at the forefront of a global race to undermine China's dominance of the field. The Directors also understand that IRA includes a clause that automatically qualifies EV battery materials recycled in the U.S. as American-made for subsidies, regardless of their origin. The Directors consider that, if this is correct, it is important because it could potentially qualify automakers using U.S.-recycled battery materials for EV production incentives, although there is no guarantee that this will be the case. In summary, we take the view that it is unlikely that we will experience a shortage of Lithium, however, much like oil, we consider we may run out of very cheap Lithium sometime in the future.

We have been overweight in precious metals, notably gold and to a lesser extent silver as well as platinum group metals ("PGM"). We remain confident that the decision was correct, and the relative performance of precious metals to date supports this. Gold is up 5.7% yr/yr, while silver has appreciated 11.3% for the period ended June 30, 2023. However, the share performance of the underlying mining companies has been below our expectations due to cost inflation exceeding metal price appreciation. We believe that this will reverse itself and the underlying companies will outperform metal prices. It is also our considered view that when a sector has been out of favour, but its fundamentals are improving - the larger cap companies will receive the first wave of investments attention, followed by mid-caps and the small caps are last to benefit from the markets' attention. We continue to look for that change in trend across our portfolios.

Precious metals represent 39.2% of our asset allocation, down from 44.9% of our assets in 2022, however, the overall value of the investment in the sector is up 10.9% yr/yr. Base metals now represent 39.5% of our asset allocation and, as of our YE were up 35.8% to £3.844M. Food, Energy and Technology increased as a percentage of our total investable assets to 12.5% , but also on an absolute dollar amount (+12.1%), due to increased investment into food and fertilizer stocks, a graphite producer as well as a small new Strategic investment in the Environmental, Social and Governance ("ESG") auditing as well as digitizing global project data.

Commodity Class Investment Allocation

2023-Q4 vs. 2022-Q4 (Fig. 6)

For the past year we have seen and experienced mining indices underperforming commodity indices. Equity markets have been afflicted with a disconnect between metal prices and the performance of the shares of the companies that explore and produce these metals. For the first time in many years, we are seeing the FTSE 350 mining index outperform average commodity prices. The market is anxious about the mediocre metal price performances and the increases in production costs, led upwards by energy costs and soon to be followed by labour costs. We also believe that inflation above Central banks' inflation targets will be a fact of life for a few more years. The US dollar's out-performance is, we believe, unlikely to continue as it did in 2023. Lastly, we continue to maintain the view that commodity prices will have to rise, or capacity will have to close, which will lead to metal price rises. Although not the most robust setting for mining companies, there is, we believe, good cause for bullishness that more broadly based metal price rises will define 2024 and that the inflationary pressures of 2022 will moderate, but nevertheless remain stubbornly higher than desirable.

INVESTMENT PORTFOLIOS

We have high expectations and rarely exceed those expectations. However, FYE 2023 has been challenging for the whole of the metals and mining sector. Our performance in 2023 was relatively strong, but below our expectations for the year. Our NAV rose 26.5% year over year while NAVPS rose by 21.2%. The variance was mostly due to the issuance of 1.44 million shares via a small capital raise at 21.0p (see announcement dated 24/5/2023). These results exceed the performance yardsticks by which we measure our performance as can be seen in Fig. 1.

The broader equity markets rose during our fiscal year: The Euro Stoxx 50 was up strongly by 27.3%; The S&P 500 was up 17.6%, the CSI 300 (Shanghai) was down 14.3%, while the FTSE 100 did manage a gain of 5.1%. The more specific comparable measures, such as - the S&P/TSX Global Mining Index was down 11.5% during our fiscal period, while FTSE 350 Mining Index, was down 55.2% - although it must be noted that we believe the FTSE 350 Mining Index was dragged down by the Ukrainian conflict and the sanctions imposed on Russian companies, which are part of the Index.

CASH As a percentage of Total Investments: 8.2%

Our cash as of 30 June 2023, was £796,000 a rise of 65.3% from the £481,000 as at the end of fiscal 2022. We view Cash as an investment. In FY 2023 we received the final US$2.5M payment from Ascendant as part of their earn-in on the Lagoa Salgada project. The intention is to keep the cash somewhere between 5% and 20% of our NAV so that we may take advantage of investment opportunities quickly when they present themselves. Since 2017 our average cash holding has been around 10%. Moreover, as a rule of thumb we like to have a combined value of our cash and the Tactical portfolio to range between 25 and 60 percent depending on our market perspective. For the past 3 years we have been at 35% as of the end of 2021 and ended 2022 at 35% of NAV and as at FYE 2023 we were at 31%. At the current time we believe that our greatest performance risk is under investment to the mining sector. As the mining cycle evolves, we would like to gradually evolve to a higher cash & tactical holding as we monetise our strategic investments and marshal our cash holdings to protect our overall performance record.

M&F Portfolio Performance 2017 - 2023 (Fig.7)

TACTICAL HOLDINGS As a percentage of Total Investments: 22.7%

The Tactical portfolios declined by 1.5% to end the year at £2.203M. We have seen a compression of public company valuations which we believe is due to higher interest rates, increased inflation, and commodity price movements largely below the rate of inflation. As we advance through the mining cycle, we believe the tactical portfolio should grow more quickly than the strategic portfolio, as we monetise some of our strategic investments and convert them into either cash or tactical investments. The tactical portfolio now comprises 22 distinct investments of our total portfolio of 29 investments.

STRATEGIC PORTFOLIO As a percentage of Total Investments: 69.1%

Our Strategic Portfolio are longer term holdings, that we strongly believe will outperform given sufficient time and capital. We believe we made these "Strategic" investments at the bottom of the cycle. These investments were in out-of-favour assets that we considered had high potential but were, we acknowledge, higher risk and less liquid. We believe our competitive advantage was that we were capable and willing to invest when others would, or could, not invest in what we believe are good geologic assets. We believe that the best return to risk ratio is to invest in good assets when these are out of favour. Our Strategic Portfolio now totals £6.097M and represents 67% of our Net Investable funds. The Strategic Portfolio was up 23.3% yr./yr. in FY 2023 and has grown by 41.9% compounded annually since 2017. The next phase of our strategy is to gradually "harvest" these investments when and where it makes sense and redeploy these funds into more liquid investments that are out of favour but have strong long term investment merits. The following are some of the most noteworthy holdings in our Strategic Portfolio. All values are as of June 30, 2023

Redcorp Empreedimentos Mineiros Lda.: As a percentage of Total Investments: 24.4%

Redcorp is a Portuguese company whose main asset is 85% ownership of the Lagoa Salgada project. Our investment in Redcorp, held through our subsidiary, represents 19.2% of our investment portfolios. In 2018 our subsidiary entered into a sale and earn-in option agreement with a Canadian listed company, Ascendant Resources ("Ascendant"). Ascendant has met all its financial and operational obligations to date. The Board consider that they have been good partners, running the exploration program for which, we are appreciative. On 25 May 2022, Ascendant increased its ownership of Redcorp to 50% by completing US$9,000,000 of exploration work on the project and making a US$1.0M payment to M&FI's subsidiary (in accordance with the terms of the agreement between the parties). Ascendant has now earned 80% of the overall project by making a final US$2.5M payment to M&FI in June 2023 and completing a Definitive Feasibility Study post year end in July 2023.

The project has advanced from an initial resource of approximately 4.4Mt with Zinc Equivalent grade of 6.0% in 2015 to a resource totalling 27.5Mt with a ?7.5% Zinc Equivalent grade today. On November 8, 2021 Redcorp and Ascendant announced that they have secured a mine development licence from the Portuguese government. As announced on 26 July 2023 Redcorp and Ascendant completed a Feasibility Study after our year end indicating that the Lagoa Salgada Project has, based on 100% ownership, a pre-tax NPV^@8% of US$188.8.M resulting in a pre-tax IRR of 47% with a 2-year pre-tax payback based on its planned 14-year life of mine. After tax NPV^@8% is US$147.1M with a 39% IRR and should generate a Life of Mine Cash Flow of US$261M.

In November 2022 Ascendant entered into a streaming agreement to fund the completion of the feasibility study for Redcorp's Lagoa Salgada project and for general corporate and working capital purposes. In connection with this agreement M&FI and Ascendant amended the terms of their shareholders agreement in respect of Redcorp on November 28, 2022. It was agreed that M&FI should have the right and option, but not the obligation, to exercise an option within 6 months (plus 10 business days) of the Stage Two Option Exercise Date (being the date when Ascendant has earned 80% of Redcorp and being no later than 22 June 2023) to require Ascendant to purchase all, but not less than all, of the shares in Redcorp at a defined price. The price would be an amount in US dollars, payable in cash, equal to 5% of the post-tax net present value of the Project provided in the feasibility study completed prior to the date of exercise using a 10.5% discount rate (the "Put Option"). On 23 June 2023 M&FI and Ascendant announced that they had agreed to an extension to the final delivery date of the feasibility study, pursuant to the Earn-in Option Agreement for the Lagoa Salgada project. As a result of the extension, the final delivery date of the feasibility study would be on or before 3 August 2023. In consideration for the extension, Ascendant agreed to grant M&FI 500,000 common share purchase warrants. Each Warrant is exercisable into one common share in Ascendant at any time for a period of 30 months at a price of $0.20 per share. On 26 July 2023 (after the M&FI's year end) Ascendant announced the results of the feasibility study and with its completion Ascendant completed the option earn-in requirements to move its ownership of Redcorp to 80%.

FINANCIAL STATEMENTS

Consolidated Income Statement

Consolidated Statement of Financial Position

Consolidated Statement of Changes in Equity

Consolidated Statement of Cash Flows

Notes to the Financial Statements

1. Operating Profit

2. Other Gains and Losses

3. Income Tax Expenses

4. Earnings Per Share

5. Investments Held at Fair Value Through Profit or Loss

6. Subsidiary companies

All intergroup transactions and balances are eliminated on consolidation.

7. Trade and other receivables

1

8. Trade and other payables

9. Convertible unsecured loan notes

10. Deferred taxation provision

11. Employee share schemes

12. Share capital

13. Loan note equity reserve

14. Reserve for employee share schemes

15. Risk management objectives and policies

15. Risk management and objectives

16. Financial instruments

17. Contingent liabilities and capital commitments

18. Post year end events

19. Related party transactions

20. Ultimate controlling party

FOR MORE INFORMATION:

Jacques Vaillancourt, Mineral & Financial Investments Ltd. +44 780 226 8247

Katy Mitchell and Sarah Mather?, WH Ireland Limited +44 207 220 1666

Jon Belliss, Novum Securities Limited +44 207 382 8300

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) as in force in the United Kingdom pursuant to the European Union (Withdrawal) Act 2018. Upon the publication of this announcement via Regulatory Information Service (RIS), this inside information is now considered to be in the public domain.