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Investment in ASX listed South Korean Gold Explorer and Spain Write Off

--(BUSINESS WIRE)--LONDON

Metal Tiger plc

("Metal Tiger" or the "Company")

Investment in ASX listed South Korean Gold Explorer and Spain Write Off

(AIM:MTR), the London Stock Exchange AIM listed investor in natural resource opportunities, is pleased to announce that, following several months of due diligence and negotiations, it has signed a binding subscription agreement to invest (c.£.1.7 million) into Australian-based and South Korean-focused gold explorer, Southern Gold Limited (“Southern Gold” or “SAU”) at per share as part of SAU’s (c.£.5.2 million) fundraise, which is subject to SAU shareholder approval (the “Placement”). Assuming Southern Gold shareholders approve the Placement, Metal Tiger will be interested in circa 14.90% of the company.Metal Tiger plcA$3.33 millionA$0.14A$10 million

Highlights of Southern Gold investment:

SAU Review:

The key goals of the SAU Review include, but are not limited to, SAU using reasonable endeavours to:

a) establish a detailed and optimised strategy to ensure the Company has 70% of its annual expenditure on exploration in the 2020/2021 financial year, of which 40% of total annual expenditure is to be expended on drilling;

b) establish 3-4 project generation teams, of which a minimum of 2 project generation teams will undertake the task of generating targets for licence applications for a minimum of six months;

c) outline and prepare a revised marketing strategy, which shall include an in-depth analysis of epithermal deposits with the purpose of providing education to the market of the potential value of epithermal deposits; and

d) establish three site visits per year with key specific targeted individuals (for example, analysts, news writers, corporate/strategic advisers etc.) invited to attend each of the site visits.

Placement:

In addition to Metal Tiger, the Placement has been supported by SAU’s four largest shareholder, and several of its directors as well as attracting institutional support in . The new share issuance will be subject to shareholder approval at a general meeting of SAU shareholders, expected to be held in early to mid-March, with a Notice of Meeting expected to be sent to SAU shareholders imminently.Australia

The Company will provide a link to Southern Gold’s announcement relating to the Placement in a separate RNS, which is expected to be tomorrow.

Further information on Southern Gold

Southern Gold is listed on the ASX under symbol SAU. Southern Gold owns 100% of a portfolio of high-grade gold projects in that are largely greenfield epithermal gold-silver targets in the south-west of the country.South Korea

For the year ended , SAU reported a loss before tax of . As at , SAU reported net assets of .30 June 201930 June 2019A$10.1 millionA$7.6 million

Spain Write Off

The Board reviews its existing investment on an ongoing basis and, following its latest review, has decided to write off its Spanish assets, being its Logrosan joint venture.

: “Southern Gold was first identified as a possible investment opportunity for Metal Tiger in through an encounter with . Recognising Doug’s technical talent, experience and success, we immediately started to undertake a significant amount of corporate and technical due diligence on SAU. Following a site visit by and I in , the true scale of the exploration opportunity presented itself. The realisation that the company had successfully built a team that could operate in-country gave us the comfort to put a deal to the . In this deal we have obtained commitments that SAU would run a strategic review process to focus on areas where we believed there could be room for improvement. The existing investor support in the Placement gives us added comfort. We believe Southern Gold represents a unique area / country exploration play with significant exploration upside potential.”, Chief Executive Officer of , commentedMichael McNeillyMetal Tiger plcJuly 2019November 2019Douglas KirwinTerry GrammerBoard of SAU

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

  • Cornerstone investment by Metal Tiger for approximately 33% of the institutional fundraise to support a lift in Southern Gold’s gold exploration efforts in to a more significant level, including a doubling of field teams and diamond drilling rate.South Korea
  • Metal Tiger has obtained the right to nominate one director to the Board of Southern Gold for so long as it holds an interest in the SAU of at least 10%. is expected to join as Metal Tiger’s nominee following SAU shareholder approval of the Placement.Terry Grammer
  • Metal Tiger has negotiated as a condition precedent of its investment the appointment of prominent geologist to the Board. Doug is expected to join upon announcement of the Placement by Southern Gold.Douglas Kirwin
  • has committed to hold within 3 months of completion of the Placement a strategic review session (the “SAU Review”) which will be attended by members of the Board (including and ) as well as senior management.The Board of SAUTerry GrammerDouglas Kirwin
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 LimitedTel +44 (0)20 7409 3494
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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on 07/31/2019