First Class Metals (LON:FCM) Zigzag Lithium Update, Issue of Equity & Interview

First Class Metals PLC the UK metals exploration company seeking economic metal discoveries across its extensive Canadian Schreiber-Hemlo, Sunbeam and Zigzag land holdings is pleased to announce the launch of systematic exploration campaign at the Zigzag Lithium project in the Province of Ontario Canada. (“Zigzag” or the “Project”).

Highlights:

·      The Zigzag project is considered highly prospective for the discovery of economic pegmatite hosted lithium mineralisation. Historically several outcropping lenses of a potentially cohesive lithium-tantalum bearing pegmatite has been sampled across the property with encouraging results.

–Historic grades at surface up to 1.68% lithium (Li₂0) over 7.9m and 0.168% tantalum (Ta₂0₅) over 2.54m. The claim group covers the historic Tebishogeshik occurrence.

–Sampling by Nuinsco returned highly anomalous lithium (Li), tantalum (Ta), and rubidium (Rb), peaking at 3.55% Li₂0 , 836 ppm Ta₂O5, and 4,003 ppm rubidium Rb2O.

-Several shallow historic drill holes along the occurrence have returned encouraging results, including, (in separate drill holes) an intersection grading 1.08% Li₂O over 6.1m and a separate intersection of 399.8ppm Ta₂O₅ over 2.92m.

·      First pass limited sampling whilst achieving access  returned samples with a peak of 1.7% Li20 and 346ppmTantalum, 104 ppm Niobium and >3000ppm Rubidium.

·      Currently an experienced geological team is on the project, undertaking a prospecting and mapping of the known exposures.

·      In parallel with this initial systematic sampling programme the team has initiated a sawn channel sampling programme along strike at intervals across the exposed pegmatite outcrop.

·      Marc J Sale CEO visited the project in the last week to oversee the commencement of operations.

·      A further thirty-nine grab samples have been collected and are at the laboratory for assay and will be reported as soon as available.

Figure 1-Historical drill holes and sampling results from the Zigzag project.

Marc J Sale First Class Metals CEO Commented:

“The initial, non-systematic grab samples collected by FCM, myself included, have demonstrated and validated the potential indicated by the historic samples from the Zigzag showing. Having visited the property and walked the outcrop I am confident that drilling will support the tenor of assays reported to date. Whilst we await further assays, FCM has embarked on a prospecting and systematic sampling programme including sawn channel sampling of ‘exposed’ outcrop in the central zone. I am confident that further outcrops in this zone and along strike will be identified. The focus of the current, ongoing programme is to bring Zigzag to a drill ready status in a ‘fast track,’ but diligent manner.’

Photograph of pegmatite sample exhibiting significant spodumenes crystals Li [AlSi2O6]

2023 Sample Results to date:

Table of the sample results to date. Note these are ‘non-systematic samples collected during access appraisal. (Values rounded for clarity).

Background & Location

The project is less than 100km from Armstrong in northwest Ontario in the Seymour Lake area (See figure 2 ), a district already proved to be prospective for hard rock, pegmatite hosted lithium. Existing infrastructure currently in place in the local area is expected to be further bolstered in the future by the planned Jackfish Hydro project and a spodumene Process Plant at the Green Technology Metals, Seymour site which is just over 10km away.

The six-unit claim group includes a mapped structure of 800m (Tebishogeshik occurrence) and is wholly contained within the claim block, the lithium-tantalum mineralization is pegmatite-hosted with significant rubidium and niobium mineralisation also reported. All of which are ‘critical minerals’ as identified by the ¹Canadian and United Kingdom Governments.

Previous workers of the Tebishogeshik occurrence have identified Li₂O and Ta₂O₅ mineralization along the entire strike of the known outcrop from sampling at surface, grading up to 1.68% Li₂O over 7.9m and 0.168% Ta₂O₅ over 2.54m in separate channels samples. Several shallow historic drill holes along the known outcrop have returned significant intersections, including, (in separate drill holes) an intersection grading 1.08% Li₂O over 6.1m and  399.8ppm Ta₂O₅ over 2.92m. Both intersections were less than 20m down hole. The structure is open along strike and to depth and remains to be fully evaluated.

Lithium-ion battery production capacity pipeline globally to 2030 increases up to 8.1 TWh and North American EV battery production is forecast to reach 1 TWh annually by 2030. Even if production from known current assets were to double against planned capacities, expected North American demand alone would exceed supply by 40%.

¹ Minister Wilkinson Releases Canada’s $3.8-billion Critical Minerals Strategy to Seize Generational Opportunity for Clean, Inclusive Growth – Canada.ca

Figure 2-Location of the Zigzag property within a ‘key’ area for Ontario’s rapidly expanding lithium industry.

Issue of Equity & Total Voting Rights

159,735 new ordinary shares are being issued to Nuinsco Resources Limited in respect of the year one Zigzag ‘option to earn in’ (²see news release 9^th March), they will rank pari passu with the Company’s existing issued ordinary shares. The issue price is 11.15p which represents $30,000CAD, being the consideration for the year one share element fees of the option.

The Company intends to allot and issue these new ordinary shares under its existing authorities on a non-pre-emptive basis.

The Company will be making its application to admit the new ordinary shares to the Official List of the FCA and to trading on the Main Market (Standard List) of the LSE. Admission is expected to occur on the 20^th of September 2023.

²https://polaris.brighterir.com/public/first_class_metals/news/rns/story/x8eolox