THIS ANNOUNCEMENT CONTAINS INSIDE INFORMATION FOR THE PURPOSES OF ARTICLE 7 OF REGULATION 2014/596/EU WHICH IS PART OF DOMESTIC UK LAW PURSUANT TO THE MARKET ABUSE (AMENDMENT) (EU EXIT) REGULATIONS (SI 2019/310) ("UK MAR"). UPON THE PUBLICATION OF THIS ANNOUNCEMENT, THIS INSIDE INFORMATION (AS DEFINED IN UK MAR) IS NOW CONSIDERED TO BE IN THE PUBLIC DOMAIN

17 June 2024

MetalNRG plc

(the "Company" or "MetalNRG")

Update on Kyrgyzstan Uranium Project

Kyrgyzstan Parliament removes prohibition on uranium mining  

MetalNRG plc (LON:MNRG), the natural resources and energy investment company, is pleased to announce that the Parliament of Kyrgyzstan has approved a bill lifting the ban on prospecting, exploration, development and  mining uranium and thorium in the Kyrgyz Republic.

MetalNRG has a significant interest in the Kamushanovskoye Uranium Deposit, a uranium clean up project in the Kyrgyz Republic, with low CAPEX requirements (the "Project"). The Project is currently owned by International Mining Company Invest Inc ("IMC). MetalNRG holds a 9.9% stake in IMC, with an option to increase that interest.  The value of MetalNRG's stake in IMC was fully impaired in 2022, and is held at zero value, due to the prohibition on uranium mining in the Kyrgyz Republic. This valuation will be reviewed in due course.

Project Highlights:

·      The Project is in the Kamushanov community, Sokuluksky District, Chuy Province, 48km from Bishkek the capital city of the Kyrgyz Republic.

·      The State Reserve Committee of Kyrgyzstan had previously granted an application for a mining licence in January 2019 (the "Mining Licence") for 3,371.1 tonnes uranium reserves (8.731 million lbs uranium 308) which had an in-situ value of approximately US$253.1 million at uranium spot prices on that date. The uranium price has since increased fourfold from approximately US$22/lb to approximately US$86/lb.

·      The Project offers a potential exploration upside of an additional 2.58 million lb of uranium from a partially explored zone (subject to being brought into a compliant resource), plus as yet untested prospective ground.

·     The Project was intended to be developed on an In-Situ Recovery ("ISR") basis providing for lower initial capital outlay and operating cost of production. The pilot using this technique was completed and reported on in the Competent Persons Report ("CPR") carried out during the Company's due diligence of the Project in 2019 and can be found on the Company's web site www.metalnrg.com

·      Infrastructure around the Project includes road access, together with electricity and water supplies.

·      There were three uranium refineries within 550km of the Project before the ban was imposed, the closest being at Kara Balta, 60km away, demonstrating that the region was familiar with development of uranium production opportunities. There will be a need to establish the current state of these refineries before decisions can be made on how and if to progress the Project.

·      MetalNRG's internally estimated NPV of the Project is approximately US$250m (based on current prices of US$91/lb for U3O8). The figure is subject to revision after the reversal of the uranium ban comes into force.

·      Based on the previously completed CPR and internal assessment, the estimated initial costs to complete the build-up of the operations, CAPEX/OPEX, is around US$11 million. Further validation of this figure will be required to determine the best way forward.

·      MetalNRG's Board will be reviewing the Project to determine the most appropriate way to progress this opportunity.

Rolf Gerritsen, Executive Director of MetalNRG, commented:

"The removal of the ban on exploiting uranium in the Kyrgyz Republic is very welcome news. We will look carefully at how we can achieve the best value for our shareholders from the Project, recognising there is a lot of work that would need to be done if we are to develop the Project to a commercially viable producing asset."

Christian Schaffalitzky, FIMMM, PGeo, CEng, a director of the Company, has reviewed the update and consents to the inclusion of the exploration information and commercial estimates in the form and context in which they appear. He is a Competent Person for these purposes.

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