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viewMetal Tiger PLC

Further Investment of US$1.5m in Kalahari Metals Limited and grant of 2% NSR

--(BUSINESS WIRE)--  LONDON

14 February 2020

Metal Tiger plc

("Metal Tiger" or the "Company")

of in and grant of 2% NSRFurther InvestmentKalahari Metals LimitedUS$1.5m

(AIM:MTR), the London Stock Exchange AIM listed investor in natural resource opportunities, is pleased to announce a further equity investment into focused explorer, (“KML”) (the “Investment”). Following the Investment, Metal Tiger will be interested in approximately 62.2% of KML.Metal Tiger plcKalahari Metals LimitedUS$1.5mBotswana

As part of the Investment, Metal Tiger has been conditionally granted a 2% net smelter royalty over all of KML’s wholly owned licences, being seven licences covering, in aggregate, 6,650km (together, the “Royalties”). The five exploration licences owned by (in which KML has a 51% interest) do not form part of the Royalties.2Triprop Holdings (Pty) Limited

The Royalties will fall away should Metal Tiger invest a further amount at a lower valuation than the Investment, subject to a cap of . In other words, any further investment by Metal Tiger up to must be at the same valuation as the Investment if the Royalties are to be maintained.US$500kUS$500k

KML will utilise the proceeds of the Investment to fund exploration drilling programmes at the Kitlanya East (‘KIT-E’), (‘OCP’) and Kitlanya West (‘KIT-W’) projects, located in the portion of the Kalahari Copper Belt.Okavango Copper ProjectBotswana

Environmental approvals are now in place for drilling on all of KML’s projects. Drilling and soil sampling programmes are planned to start at KIT-E in , followed by further target drilling at the OCP and KIT-W project.March 2020

, Chief Executive Officer of Metal Tiger, commented:Michael McNeilly

“This investment will allow the KML team to progress exploration and prove up other targets at KIT-E, Kit-W and OCP, and also increases Metal Tiger’s exposure to the highly prospective Kalahari Copper Belt, which currently includes our interest in KML, as well as in Sandfire’s and , where MTR has a capped NSR and a 2% uncapped NSR respectively.T3 ProjectA4 ProjectUS$2m

“In the context of our expectation of an increasing global requirement for copper production, and therefore exploration, we expect the Kalahari Copper Belt to become an increasingly more valuable area to be situated and are delighted to increase our interest in the area.”

KIT-E Project

Drilling at KIT-E will initially consist of four scout diamond holes, which will target fold hinge structures identified in a recently completed detailed airborne electromagnetic (‘AEM’) survey, which may represent carbonaceous marker units in the lower D’Kar formation (‘DKF’) above the contact with the underlying Ngwako Pan formation (‘NPF’). This contact is host to the bulk of identified Cu-Ag mineralisation in the Kalahari Copper Belt. Intersection of the prospective DKF-NPF contact will significantly upgrade the potential for discovery of exploitable mineralisation on this project. Further sampling and a more extensive reverse circulation (‘RC’) drilling programme are expected to be initiated after assessment of results from the diamond drilling. It is worth noting that Sandfire’s is circa 5km away from the border of the northern licence of Kit-E where drilling is planned.T3 Project

Soil sampling traverses are planned over additional anticlinal targets, where Cu-Ag mineralisation may be upgraded. Results from the soil sampling are expected to assist in advancing these targets for geophysical follow-up and drill testing.

OCP

Recently completed drilling at OCP has demonstrated the effectiveness of targeting the prospective DKF-NPF contact using AEM modelling as a stratigraphic guide. Further diamond drilling is planned to target extensions of the contact from Cupric Canyon’s Zone 5 and Zone 5 north deposits after completion of the KIT-E drill programme.

Assays are still awaited from the previous drill programme.

KIT-W

AEM surveys have identified three prominent conductors located in fold hinge zones interpreted from magnetic data providing possible analogues to Sandfire Resources T3 deposit. In addition to testing for mineralisation, drilling these targets will provide important stratigraphic information for the project area. Diamond drilling is planned at KIT-W after completion of target drilling on OCP.

Project Background

KML, which was incorporated in & on , holds interests in 12 highly prospective exploration licences covering a total area of 8,595km in the Kalahari Copper Belt of , comprising two 100% owned exploration licences, five exploration licences subject to a binding earn-in agreement with (includes the ), and five exploration licences held by 100% owned subsidiary, (see Table 1).EnglandWalesBotswana3 May 20172Triprop Holdings (Pty) LimitedNgami Copper ProjectKitlanya Limited

Notwithstanding Metal Tiger's majority shareholding in KML, KML does not fall to be treated as a subsidiary of Metal Tiger as an agreement between the shareholders of KML precludes Metal Tiger from exercising control.

The net assets and net loss of KML incorporated into the Group’s results for the year ended were £796,000 and £73,000 (loss) respectively.31 December 2018

Table 1: 100% with Granted Metal Tiger RoyaltiesKalahari Metals LimitedOwned Exploration Licence Holdings

Link to Figure 1: Map of licences subject to the Royalties

http://www.metaltigerplc.com/images/LicencesSubjecttoRoyalties.png

This announcement contains inside information for the purposes of the market abuse regulation (EU No. 596/2014) (“MAR”).

For further information on the Company, visit: :www.metaltigerplc.com

Enquiries:

Notes to Editors:

is admitted to the AIM market of the London Stock Exchange AIM Market ("AIM") with the trading code MTR and invests in high potential mineral projects with a base, precious and strategic metals focus.Metal Tiger plc

The Company's target is to deliver a high return for shareholders by investing in significantly undervalued and/or high potential opportunities in the mineral exploration and development sector. Metal Tiger has two investment divisions: and Direct Projects.Direct Equities

invests in undervalued natural resource companies. The majority of its investments are listed on AIM, the TSX and the ASX, which includes its 3.5% interest in (ASX: SFR). The Company also considers selective opportunities to invest in private natural resource companies, typically where there is an identifiable path to IPO. Through the trading of equities and warrants, Metal Tiger seeks to generate cash for investment in the Direct Projects Division.The Direct Equities DivisionSandfire Resources NL

is focused on the development of its key project interests in , Kalahari copper/silver belt through its interest in . In , Metal Tiger has interests in two potentially near-production stage lead/zinc/silver mines as well as license applications and critical historical data covering antimony, copper, gold, lead, zinc and silver opportunities.The Direct Projects DivisionBotswanaThailandKalahari Metals Limited

The Company actively assesses new investment opportunities on an on-going basis and has access to a diverse pipeline of new opportunities in the natural resources and mining sectors. For pipeline opportunities deemed sufficiently attractive, Metal Tiger may invest in the project or entity by buying publicly listed shares, by financing privately and/or by entering into a joint venture.

Metal Tiger plc

Source:Metal Tiger plc

Licence Number

Registered licence holder

Issue date

Area (km)2

Metal (NSR)Tiger Net Smelter Royalty

PL148/2017

Kalahari Metals Ltd

1-Jul-17

999

2%

PL149/2017

Kalahari Metals Ltd

1-Jul-17

1,000

2%

PL342/2016

Kitlanya Pty Ltd

1-Jan-17

942

2%

PL343/2016

Kitlanya Pty Ltd

1-Jan-17

956

2%

PL070/2017

Kitlanya Pty Ltd

1-Apr-17

994

2%

PL071/2017

Kitlanya Pty Ltd

1-Apr-17

914

2%

PL072/2017

Kitlanya Pty Ltd

1-Apr-17

845

2%

Michael McNeilly

(Chief Executive Officer)

Tel: +44 (0)20 7099 0738

Mark Potter

(Chief Investment Officer)

 

Richard Tulloch

James Dance

Jack Botros

Strand (Nominated Adviser)Hanson Limited

Tel +44 (0)20 7409 3494

Paul Shackleton

Steve Douglas

Arden Partners plc (Broker)

Tel: +44 (0)20 7614 5900

Gordon Poole

James Crothers

Monique Perks

Camarco (Financial PR)

Tel: +44 (0)20 3757 4980

Quick facts: Metal Tiger PLC

Price: 1.125

Market: AIM
Market Cap: £17.12 m
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