BAKER STEEL RESOURCES TRUST LIMITED

(Incorporated in Guernsey with registered number 51576 under the provisions of The Companies (Guernsey) Law, 2008 as amended)

2 July 2025

Polar Acquisition Limited ("PAL") - Sale of Prognoz Royalty Interest

Baker Steel Resources Trust Limited (the "Company" or "BSRT") announces that PAL, in which it holds a 49.99% interest, has signed a binding agreement to divest its net smelter royalty related to the Prognoz silver project ("Prognoz Royalty") for a cash consideration of US$11 million (or its Euro equivalent on closing at the buyer's election).

The sale of the Prognoz Royalty is by way of assignment to the buyer, a private Omani registered company. Solidcore Resources plc (previously Polymetal International PLC ("Polymetal")) was the sole counterparty to the Prognoz Royalty Agreement, and has declined to exercise its right of first refusal to acquire the Prognoz Royalty on the sale by PAL. The cash consideration is due to be paid within 5 business days and PAL intends to distribute the net proceeds after transaction expenses, accruals and a provision for the subsequent winding up of PAL as soon as practical thereafter.

As a result, BSRT can expect to receive approximately US$5.16 million in cash during the third quarter. This is approximately 4.1 times the US$1.24 million carrying value of its holding PAL as at the last published NAV on 30 May 2025.

The Prognoz Royalty was acquired by PAL as part of its sale to Polymetal in 2017 of its 50% interest in the Prognoz Silver asset which consideration comprised shares in Polymetal and the Prognoz Royalty. BSRT subsequently disposed of its shares in Polymetal at favourable prices and retained the Prognoz Royalty through PAL. Despite the unforeseen adverse geopolitical events reducing the valuation of the Prognoz Royalty the overall return for BSRT including the earlier sale proceeds will have provided for a total return of US$48.9 million or around 3 times the total US$15.9 million invested. The earlier sale of the Polymetal shares previously funded a tender offer of £4.9 million.

The Investment Manager and Board regard the monetisation of its interest in the Prognoz Royalty as a satisfactory outcome given the uncertainty of information supporting fair calculation of, and risks associated with receiving, royalty payments based on a privately owned project located in Russia, which had led to the valuation being heavily discounted.

In light of the expected receipt of PAL proceeds, and other prospective capital payments which may come through later this year, the Board continues to review its capital allocation policy, with its primary objective being the reduction of the discount of the share price to net asset value. A further update will be provided in due course. 

Further details of the Company and its investments are available on the Baker Steel Capital Managers website www.bakersteelcap.com

Enquiries:

Baker Steel Resources Trust Limited             +44 20 7389 8237

Francis Johnstone
Trevor Steel

Shore Capital                                                 +44 020 7408 4050

Henry Willcocks (Corporate Broking)

Gillian Martin, Daphne Zhang (Corporate)

Adam Gill (Sales)

The Net Asset Value ("NAV") figure stated is based on unaudited estimated valuations of the underlying investments and not necessarily based on observable inputs. Such estimates are not subject to any independent verification or other due diligence and may not comply with generally accepted accounting practices or other generally accepted valuation principles. In addition, some estimated valuations are based on the latest available information which may relate to some time before the date set out above.

Accordingly, no reliance should be placed on such estimated valuations and they should only be taken as an indicative guide. Other risk factors which may be relevant to the NAV figure are set out in the Company's Prospectus dated 26 January 2015.