Marula Mining (AQSE:MARU) Kinusi Copper Project Update

Marula Mining (AQSE: MARU), an African focused mining and development company, is pleased to provide an update on its Kinusi Copper Project (“Kinusi” or “the Project”), located in the Mpwapwa District in the Dodoma Region of central Tanzania, where the Company recently increased its commercial interest in the Project to 75% through an amended agreement with Tanzanian mining company, Takela Mining Tanzania Limited (“Takela”), as announced on 20 February 2023.

Marula, together with Takela and its mineral processing consultants, Southern Metal Processing Pty Limited (“SMP”), are advancing plans to install a copper processing plant at Kinusi with initial design and capital and operating costs works well underway and in line with the Company’s strategy to advance the Project to production in H2 2023. In parallel with this, the Company is advancing its discussions on copper offtake arrangements with four short-listed global trading commodity groups for the sale and purchase of copper from the Project.

Highlights:

• Detailed design work being completed for the installation and commissioning of a copper processing plant at Kinusi by mineral processing consultants SMP
• Site works are set to commence at Kinusi in April 2023 and which will include the establishment of mine offices, and associated mine and operations support infrastructure
• Planned upgrades to access roads are in progress, and mobile mining equipment and ancillary vehicles and equipment are being secured
• Negotiations also advancing with four short listed parties for an initial copper offtake agreement for the sale and purchase of all copper and precious metals product produced from the Project
• Approximately 100 kilogrammes of representative samples from Kinusi to be delivered to these groups for analyses, and finalisation of offtake and payment terms
• Additional samples being sent for assay and analyses as part of optimisation metallurgical and process plant test work
• Takela to commence initial small-scale mining in late April 2023, focusing on the Takela 1, 2, 3, 4 and 12 pits
• Mined material to be stockpiled ahead of commissioning of the proposed copper processing plant in H2 2023
• Initial mining and site upgrade works to run in parallel with the ongoing exploration work to be undertaken by the Company’s on site geological team and by experienced Tanzanian geological and mining consultancy group Geofields Tanzania Limited
• Work by the Company’s geological team to also include preparation of initial drilling and establishment of drill pads for an initial diamond drilling program, comprising holes to depths of 100 to 150 metres to allow a better understanding of the structural controls to high-grade copper mineralisation and also to determine the depth extensions of the mineralisation

Jason Brewer, Marula Mining PLC CEO, commented:

“We are excited about the progress being made and our plans with Takela Mining at the Kinusi Copper Project. Our recent transaction to increase our commercial interest in the Project to 75%, demonstrates our commitment to this promising venture and following a recent site visit with them and representatives of Q Global Commodities, we are now fast preparing our programs to commence site works later this month.

“The Takela team are already advancing on site activities and plans to commence initial mining operations in Q2 2023 and the stockpiling of high-grade copper mineralisation ready for processing.

“Discussions with European based global commodity groups for the offtake of the high-grade copper and precious metals from Kinusi have intensified over the past month, and no doubt partly driven by the ever strengthening copper market and supply and price outlook. Our first delivery of samples to these groups will take place this week, allowing us to then formalise the pricing terms and arrangements for the delivery of material in H2 2023.

“We continue to engage with local communities and are proud of the community-based programs and initiatives that we will look to jointly implement this year and going forward, in the surrounding communities. As we advance the development at Kinusi, we remain focused on ensuring that the Kinusi Copper Project delivers value for all our shareholders, partners, and stakeholders.”

Process Plant Design:

SMP, the Company’s mining and processing contractor, is finalising the process plant design and detailed costings for the installation of a copper processing plant at the Kinusi Copper Mine.

Site works are set to commence in April 2023, which will include the installation of a processing plant, offices, and associated mine infrastructure. Planned upgrades to the mine and processing plant access roads are in progress, and mobile mine equipment and ancillary vehicles are being sourced.

Community consultation continues, with several community-based programs and initiatives underway.

Offtake Discussions:

Discussions with four shortlisted commodity trading groups are ongoing for an initial offtake agreement and copper prepayment facility to fund 100% of the processing plant acquisition, installation costs, and working capital requirements through to first copper sales. Offtake pricing negotiations are underway, with pricing models being reviewed by Marula’s executive management. The Company expects offtake discussions and copper prepayment facility discussions to be completed in Q2 2023.

Samples of high-grade copper ore from a recent site visit will be delivered to potential offtake parties for final analyses of copper grades and associated by-product precious metals credits. Further samples will be dispatched to laboratories in South Africa for additional assay and analyses, and to form part of the final metallurgical and process plant test work.

About the Kinusi Copper Project:

The Kinusi Copper Project is located in the Kinusi area in Mpwapwa District, Dodoma Region of central Tanzania. Takela holds 10 Primary Mining Licences covering approximately 91 hectares, with 8 of the licenses contiguous. The licenses are valid until 30 September 2029 and allow the holder to prospect and mine for copper.

The Directors of Marula are responsible for the contents of this announcement. This announcement contains inside information for the purposes of UK Market Abuse Regulation.

About Marula Mining

Marula Mining (AQSE: MARU) is an African focused battery metals investment and exploration company and has interests in several high value mine projects in Africa; Blesberg Lithium and Tantalum Mine in South Africa, Nkombwa Hill Project in Zambia and Kinusi Copper mine, Bagamoyo Graphite Project and Nyorinyori Graphite Project in Tanzania. As we advance operations at these battery metals focused projects, Marula will continue to build and expand its interests in other high-quality projects in Africa.

Marula’s strategy is to identify and invest in advanced and high-value mining projects throughout East, Central and Southern Africa that the Directors believe would deliver returns for its shareholders. The Board and management team aims to establish Marula as a socially and environmentally responsible, sustainable, and profitable producer of critical metals and commodities that are of increasingly strategic importance to modern technologies and the global economy.

Marula’s shares are traded on the AQUIS Stock Exchange (AQSE), Marula is exploring opportunities to admit its shares to trading on AIM, the market operated by the London Stock Exchange Group plc, and Kenya’s Nairobi Securities Exchange.

Caution

Certain statements in this announcement, are, or may be deemed to be, forward looking statements. Forward looking statements are identi?ed by their use of terms and phrases such as ”believe”, ”could”, “should” ”envisage”, ”estimate”, ”intend”, ”may”, ”plan”, ”potentially”, “expect”, ”will” or the negative of those, variations or comparable expressions, including references to assumptions. These forward-looking statements are not based on historical facts but rather on the Directors’ current expectations and assumptions regarding the Company’s future growth, results of operations, performance, future capital and other expenditures (including the amount, nature and sources of funding thereof), competitive advantages, business prospects and opportunities. Such forward looking statements re?ect the Directors’ current beliefs and assumptions and are based on information currently available to the Directors.

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