PYX Resources Limited / EPIC: PYX / Market: Standard / Sector: Mining

30 July 2024

Pyx Resources Limited

("PYX" or "the Company")

PYX receives new three-year licence to extract and process up to

88,800 tonnes of minerals from its Tisma Project in Indonesia

PYX Resources Ltd (NSX: PYX | LSE: PYX), the third largest publicly listed zircon producing mining company globally by zircon resources,¹ is pleased to announce that it has received a three-year licence to extract and process up to 88.8kt minerals from its Tisma Project ("Tisma") in Central Kalimantan, Indonesia. With a 27 per cent. recovery factor, this enables the production of circa 8ktpa of premium zircon of which 6.4ktpa may be exported and 1.6ktpa sold to domestic Indonesian markets.

The Company's Work Programme & Budget / Rencana Kerja dan Anggaran Biaya ("WP&B"/ "RKAB") received from the Indonesian Energy and Mineral Resources Department ("ESDM") is valid for three years, 2024 - 2026. It includes mining operations; processing and refining; marketing and shipping; environment; mining safety; training; and community development and empowerment.

Commenting on the receipt of approval for the Budget and Work Plan, PYX Resources' Chairman and Chief Executive Officer, Oliver B. Hasler, said: "I am delighted to announce that the Indonesian ESDM has granted Tisma a three-year work programme licence, which allows us to strategically plan our operations for the coming years. I would like to extend my gratitude to the Indonesian authorities for their support and look forward to keeping our shareholders informed with updates on Tisma in the months ahead."

Tisma

Tisma is a licenced concession covering 1,500 hectares in Central Kalimantan, Indonesia, approximately 50km northwest from the regional capital Palangkaraya. The project has 137 million tonnes of JORC complaint inferred resources with 4% heavy mineral, containing approximately 4.5 million tonnes of zircon in combination with valuable by-products including titanium minerals (rutile and ilmenite). ²

The terms of the recently renewed permit includes payment of Indonesian taxes and the honouring of other financial obligations of PYX's subsidiary PT Global Nusantara. A summary of some of the key provisions includes:

·    Royalty on zircon exported of 1.5%;

·    Fixed rent payable to the Government of Indonesia at a rate of US$4 per hectare per annum;

·    Corporate tax of 22% payable and set by the Government of Indonesia;

·    Land and building taxes payable to the local government at a rate of 0.5% based on taxable sales value; and

·    Environmental obligations, including reclamation bonding and plans, approved by the local government as part of the mine approval process.

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About PYX Resources

PYX Resources Limited (NSX: PYX | LSE: PYX) is a producer of premium zircon dual listed on the National Stock Exchange of Australia and on the Main Market of the London Stock Exchange. PYX's key deposits, Mandiri and Tisma, are large-scale, near-surface open pit deposits both located in the alluvium-rich region of Central Kalimantan, Indonesia. PYX, whose Mandiri deposit has been in production since 2015, is the 3rd largest publicly traded producing mineral sands company by zircon resources globally. Determined to mine responsibly and invest in the wider communities where we operate, PYX is committed to fully developing its Mandiri and Tisma deposits, with the vision to consolidate the mineral sands resources in Kalimantan and explore and acquire mineral sands assets in Asia and beyond.

This announcement contains inside information for the purposes of Article 7 of the UK version of Regulation (EU) No 596/2014 which is part of UK law by virtue of the European Union (Withdrawal) Act 2018, as amended ("MAR"). Upon the publication of this announcement via a Regulatory Information Service, this inside information is now considered to be in the public domain.

^[1] according to publicly available information as of 30 June 2023

^[2] Compliance Statement

The Tisma mineral sands deposit hosts a 4.5 Mt Inferred JORC Resource of zircon. The Company originally announced this resource in its Announcement "PYX Resources Limited Agrees to Acquire Tisma Development (HK) Limited, a World-Class, Fully Licensed Mineral Sands Deposit" on 13 January 2021 (refer website: https://pyxresources.com/wp-content/uploads/2021/01/NSX-Annonucement-Acquisition-of-Tisma-by-PYX.pdf) and confirms that it is not aware of any new information or data that materially affects the information included in the Announcement. All material assumptions and technical parameters disclosed in the Announcement that underpin the estimates continue to apply and have not materially changed.