Alien Metals Limited (UFO.L) Termination of Donovan2 Earn-in agreement

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Alien Metals Ltd (LSE AIM:UFO), a minerals exploration and development company, has been advised by Capstone Mining Corp of the termination, with effect from 9 July 2021 (the “Termination Date”), of the Earn-in Agreement signed between Alien, Estrella de Plata, Capstone Mining Corp. and Capstone Gold S.A. de C.V. (together, “Capstone”) on 22 October 2020 (the “Agreement”). The Earn-in Agreement relates to the Company’s Donovan 2 Copper-Gold project (the “Project”) in Mexico.

Bill Brodie Good, CEO & Technical Director of Alien Metals, commented:

“Capstone have decided not to proceed with the exploration on Donovan 2 advising that their corporate strategy has shifted and also that they did not receive sufficient confidence from their maiden drilling recently completed on Donovan 2 to continue. Capstone advised that their work was not exhaustive and with coincidental work just done a couple of days ago by Alien we are already starting to think about how we may approach further exploration work. It has been great working with the Capstone team and we appreciate their input to date which we hope to build and develop on for the future of the project.”

Figure 1: Location of Donovan 2 Project, Zacatecas Region, Mexico in relation to TECK San Nicolas VMS Copper deposit, June 2021

Capstone will provide Alien with all the technical data generated during their tenure as well as a final report outlining their findings as per the agreement and as referenced below. Once all received, Alien with review this and combine with its own technical views to make a decision on the way forward and will update the market as soon as this is available.

Figure 3 below shows a fresh sample of mineralised material taken from the Los Alamos water well target only a couple of days ago by Alien as part of a follow up piece of work to aid in further targeting work. This is from the location of the historic sample that returned 3.3% copper (as announced on 29 April 2019 and 27 June 2019) and is part of the current review and planning process.

Capstone will arrange for a revocation of the transfer agreement. Alien will revert back to being the Project operator and retain a 100% interest in the Project as a result.

The Company announced on 1 March 2021 that Capstone had commenced drilling the first hole of the maiden drilling programme on the Project. Whilst Alien is yet to be formerly notified of the full results of this drill programme, Capstone has advised in its communications with the Company a summary table of results as per Table 1 below.

Figure 2: Location of Capstone Drill holes over Chargeability anomalies at 100m depth, Donovan 2, June 2021, (Capstone) (red areas indicate potential areas of interest)

Table 1: Summary of significant intersections, Capstone Drilling, Donovan 2, June 2021

Figure 3: Malachite and sulphide bearing quartz from Los Alomos Prospect, Donovan 2, June 2021

Once all data is received and reviewed Alien will be in a position to report more fully on the work done by Capstone and the conclusions and plans for next stage work by Alien.

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