Kazera Global PLC (KZG.L) Diamond Production, HMS Extension and Investment

Kazera Global plc (“Kazera Global”, “Kazera” or “the Company”), the AIM-quoted investment company, is pleased to provide the following update.

Highlights:

· Diamond production closed for February at 242 carats, which means that assuming a sale price of $200 per carat, the South African diamond division will be operating on a profitable basis once sales are achieved.

· The Company anticipates that the higher grades from the new block, together with receipts from the joint venture, both referenced in the Company’s RNS of 23 February 2021, will render the diamond operations materially profitable going forward.

· Completion date for acquisition of Whale Head Minerals extended at the Company’s request to 30 June 2021.

· Investment package agreed subject only to banking due diligence. Total investment of €9,130,000 via equity and convertible loans at a price of €0.03142 per share.

· Progress continues to be made concerning the banking due diligence between the sending bank and the Namibian receiving bank, with the EU based sending bank having now completed its due diligence procedures.

Diamond Production

· The Company is pleased to announce that its final tally of sorted diamonds has increased from the 220 carats referred to in the previous RNS, to 242 carats. This month’s carat production, once sold and assuming an average price of $200 per carat, will cover the costs of the South African operation.

Initial results from the new block continue to justify the hopes expressed in the RNS of 23 February.

The necessary permitting has now been obtained for the joint venture operation referred to in the previous RNS and the intention is to start operations there before the end of March 2021.

These two areas of activity coming into full operation are expected to materially contribute to the Company’s financial performance going forward.

Heavy Mineral Sands Project

Following the Company’s RNS on December 2021 in which it announced that the completion date for the acquisition of a 90% stake in Whale Head Minerals (Pty) Ltd had been extended to 31 March 2021, the Company is pleased to report that Tectonic have agreed to a further extension to 30 June 2021.

The delays in processing mining rights applications have recently been raised in the South African Parliament and local expectation is that a number of pending cases will now be expeditiously resolved.

Financing update

Progress continues to be made on the proposed investment by a local Namibian investor referenced in previous announcements. The terms of the investment package have now been agreed for an overall investment of €9,130,000 which will be made in two tranches:

· the first tranche, payable on completion of banking due diligence, is for €6,640,000, being:

o €2,490,000 of new ordinary shares in the Company at a price of €0.03142 per share (the “Issue Price”) and

o €4,150,000 of loan with a 7 year term, 5% per annum coupon and convertible at the Issue Price at the Company’s discretion;

· the second tranche is for €2,490,000, via a further convertible loan on the same terms as above, drawable on or before 30 June 2021.

This investment into Kazera by the Namibian investment partners is part of a much larger group of strategic investments which is expected to complete at the same time. The consequence of the large sums involved is that the Namibian Central Bank and the participating commercial banks are undertaking significant due diligence procedures, which has been the cause of the continued delay in completing the transaction. The Company now understands that the transaction has been approved by the Central Bank and that the sending bank, which is EU based, has similarly completed its due diligence processes.

Dennis Edmonds, Kazera Executive Director managing the South African projects, commented :

” The latest diamond results mean that our South African operation is now covering its own overheads. The additional revenues from the gravel stockpile and the two new areas of operation indicate that this project should be a major cash generator for the Company in the near future.

I am also very pleased that Tectonic have continued to show their support for the HMS project by agreeing to this extension. The fact that the South African government have intervened indicates that the problems we have experienced are not unique to us. An end to these delays is now hopefully in sight and we already know that we have the strong support of the local community for getting this project operational.”

Larry Johnson, Kazera Chief Executive Officer, commented:

“The proposed investment will be transformational in allowing us to build the water pipeline, construct the tailings dam that will enable us to recover water whilst facilitating waste storage in an environmentally sound manner, and to bring the processing plant back on line. It will also allow us to continue to explore the vast property with a third phase core drilling program, so adding further valuable resource to our world class tantalum and lithium assets.

We will also be able to continue exploring other opportunities available to us and to accelerate progress on our recent investments in South Africa.

The process has taken longer than anyone expected but reflects the structured and disciplined way in which Namibia approaches foreign investment, ensuring strict global compliance is met through rigorous documentation and KYC.”

This announcement contains inside information for the purposes of Article 7 of Regulation (EU) No. 596/2014 (‘MAR’).


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