W Resources PLC - Atlas Facility and La Parrilla Update

26 August 2020

W Resources Plc

("W" or the "Company")

Atlas Facility and La Parrilla Update

W Resources Plc (AIM:WRES), the tungsten, tin and gold mining and exploration company with assets in Spain and Portugal, is pleased to provide an update on the Atlas Capital Markets LLC ("Atlas") facility, and the La Parrilla project.

·      Atlas has converted a small part of its loan to equity under the terms of the agreement.

·      The La Parrilla management team has implemented a revised and more comprehensive plan to boost production and move to an operating cash flow positive position, which subject to continued improvement in operations and some modest strengthening of metal prices is expected in the first half of 2021.

·      Recoveries of tungsten and tin have continued to improve at La Parrilla following a realignment of the mine plan around the high recovery ore in the main fast track mining area and in the pit in general. Under the new management, plant availability and performance has increased.

·      The external environment with COVID-19 and global metal prices remains challenging and cost control and working capital management remains a priority.

Atlas Capital Markets Facility

Atlas has issued a Conversion Notice for £100,000 of Convertible Bonds, a small portion of the first £500k tranche drawn from this £4m facility. W will issue 75,187,969 ordinary shares of 0.1p per share ("Ordinary Shares") at a conversion price of 0.1330p per Ordinary Share.

Application has been made for the admission of the Ordinary Shares. Following admission of the new Ordinary Shares, which is expected on or around 1 September 2020, the Company's enlarged issued share capital will comprise 6,775,230,746 Ordinary Shares with voting rights. The Company has no shares held in Treasury. This figure of 6,775,230,746 Ordinary Shares may be used by shareholders in the Company as the denominator for the calculations by which they will determine if they are required to notify their interest in, or a change in their interest in, the share capital of the Company under the FCA's Disclosure Guidance and Transparency Rules.

La Parrilla Tungsten and Tin Project, Spain

Over the last three months an extensive programme of metallurgical and geological work has been underway to refine a plan to substantially increase the production of tungsten and tin from the La Parrilla mine. An updated plan has been agreed and commenced, with the objective of increasing production and moving to a cash flow positive position in the first half of 2021 subject to metal prices.

A key focus, as reported in the Q2 2020 report, has been to increase tungsten recoveries which have lagged behind the solid performance with tin recoveries and production. In addition to implementing an improved maintenance programme to fundamentally increase plant operation and availability, the key focus has been one of realigning the mine plan around the high recovery ore in the main fast track mining area and in the pit in general. Ore mined at the southern edges of the mining area exhibited lower recoveries due to mineralogical alteration and low-grade vs recovery properties. Ore feed from the core areas of the mine has demonstrated much stronger recoveries and henceforth will be the focus of mining activities. Recovery is increasing with the deeper benches as the near surface oxidised material has been exhausted and geo-metallurgical grade control improved.

The programme has commenced with the objective of increasing production and moving to a cash flow positive position in H1 2021.

COVID-19 and Tungsten and Tin Prices

The tungsten market remains subdued with the European APT price sitting at US$200-210/mtu while tin prices have strengthened to around US$17,500 per tonne. Demand in China has improved, however demand in Europe and the USA remains weak reflecting the economic dislocation caused by COVID-19.

COVID-19 cases have increased in Spain and remain an operational challenge. La Parrilla continues to export both tungsten and tin to its customers. During July, while an extensive programme of metallurgical and geological work to boost recoveries was being completed, the plant was run on a limited shift basis to conserve costs while recovery issues were investigated.

Michael Masterman, Chairman of W Resources commented: "In these unprecedented and volatile times we are pleased to have the facility in place with Atlas.

"At La Parrilla, tungsten recoveries have started to improve with mining moving to the deeper benches and with the focus on the core areas of the mine. With the implementation of the programme underway and with patience we expect to be able to move to higher production rates."

Investors Webinar

Michael Masterman will host an investor webinar on Thursday 3 September 2020 at 12.00pm. For those wishing to participate, please register your interest with details of your name and questions to [email protected]. The connection details will be sent ahead of the call.

The information communicated within this announcement is deemed to constitute inside information as stipulated under the Market Abuse Regulations (EU) No. 596/2014. Upon the publication of this announcement, this inside information is now considered to be in the public domain.

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