Pembridge Resources (PERE.L) NI 43-101 PEA Report

Minto Explorations Ltd – NI 43-101 Preliminary Economic Assessment Technical Report

London, United Kingdom – Pembridge Resources plc (LSE: PERE) (“Pembridge” or the “Company”) is pleased to announce the key results from Minto Exploration Ltd. (“Minto”) NI 43-101 Preliminary Economic Assessment Technical Report (“Technical Report”) and the resulting estimate of Minto’s mine life and Net Present Value (“NPV”).

Highlights

– Life of mine extended from initial 4 years previously announced (up to 2023) to 8 years (up to 2028) while processing 10,893 kt of a total Indicated and Inferred Resources of 24,105 kt.

– Total Resources have been increased from 22,554 kt1 (including 1,4171 kt of Reserves) to 24,105 kt with a resulting change in Cu Metal Resources from 7122 Mlbs (including 602 Mlbs of Reserves) to 727 Mlbs; Au Metal Resources from 394 koz (including 312 koz of Reserves) to 396 koz; Ag Metal Reserves and Resources from 3,5522 koz (including 3032 koz of Reserves) to 3,947 koz.

– Economic model presented in the Technical Report evaluates Minto NPV after tax using 8% discount rate of USD$84 million (using long term copper price at $3.10 per pound and USD CAD exchange rate of 1.315)

– Average annual production of 38 million lbs and average annual EBITDA in excess of US$40 million between 2021 and 20253

– Using a flat copper price of US$4.50 per lb over the life of mine and USD CAD exchange rate of 1.250, the Minto NPV after tax using 8% discount rate is USD$265 million3

– C1 cash Cost per lb of Cu is US$2.20

– All In Sustaining Cost (AISC) per lb of Cu is USD$2.65 for life of mine after by-product credits and before closure costs

The report may be accessed and downloaded from the Company website: https://www.pembridgeresources.com/investors/financial-reports-and-presentations

43-101 Preliminary Economic Assessment Report Resources

In February 2021, JDS Engineering & Mining Inc. (“JDS”) was commissioned by Minto to prepare a Technical Report, which updates the results of the Competent Person’s Report commissioned by Pembridge and delivered in June 2019 with mineral deposits assessment as at 31 May 2019.

The Technical Report confirms the following Mineral Resources as at 31 March 2021:

Total Resources have been increased from 22,554 kt1 (including 1,4171 kt of Reserves) to 24,105 kt with a resulting change in Cu Metal Resources from 7122 Mlbs (including 602 Mlbs of Reserves) to 727 Mlbs; Au Metal Resources from 394 koz (including 312 koz of Reserves) to 396 koz; Ag Metal Reserves and Resources from 3,5522 koz (including 3032 koz of Reserves) to 3,947 koz. Production at Minto restarted in October 2019 with the following table showing the change in Reserves and Resources after considering production for the period from restart to 31 March 2021:

According to the Canadian Institute of Mining the public disclosure of a Mineral Reserve must be demonstrated by a Pre-Feasibility Study or Feasibility Study and therefore the Technical Report identifies Minto’s mineral deposits as Resources only.

The Resources modelled in the Technical Report were based on an 8 year mine life. Given the utilisation of only 45% of the total Resources in the projected 8 year mine life and the fact that inferred resources lack sufficient drilling and mine planning and the significant unexplored areas within the Minto claim package, management expects to increase the life of mine to over 15 years, subject to successful results of such drilling and applicable mine planning.

Economic model

The Technical Report includes an economic model that has been developed by JDS using the following key assumptions:

– Long term copper price of US$3.10/lb; gold price of US$1,550/oz and silver price of US$18.50/oz

– Agreed upon terms for new amendment of streaming agreement with Wheaton Precious Metals Corp for gold produced by Minto expected to be signed shortly

– Long term USD to CAD exchange rate of 1.316

– Ore quantities mined and grades for copper, gold and silver as per the latest mine plan developed as part of the Technical Report

– NPV discount rate of 8%

The economic model presented in the Technical Report shows a NPV after Canadian taxes and royalties of US$84 million and average annual EBITDA in excess of US$40 million beween 2021 and 2025 when applying the following price assumptions:

The NPV after Canadian taxes and royalties exhibits strong sensitivity to copper and exchange rates as illustrated in the table below, prepared as part of the Technical Report, to the following:

Project After-Tax NPV8 (CAD$) Sensitivity Based on Fixed Copper Price and FX Rate

(Gold = US$1,550/oz and Silver = 18.50/oz) 4

The Technical Report has been approved by the Joint Advisory Committee of Minto and is only subject to comments from the Canadian Regulatory bodies.

1. Ore reserves and resources based on 31 May 2019 technical report adjusted for production up to 31 March 2021.

2. Metal reserves and resources based on 31 May 2019 technical report adjusted for production up to 31 March 2021.

3. Based on USD CAD exchange rate of 1.316

4. 43-101 preliminary economic assessment technical report page 23-11

Gati Al-Jebouri, Chief Executive Officer and Chairman of the Board of Pembridge said:

“The Technical Report prepared by JDS confirms our expectations for the Minto life of mine as well as the potential for further development. The imbedded value of Minto is now clearly identified, and the Minto team is very excited to realise and grow this value for all the Minto stakeholders.”

Cautionary Statement

This News Release includes certain “forward-looking statements” which are not comprised of historical facts. Forward-looking statements include estimates and statements that describe the Company’s future plans, objectives or goals, including words to the effect that the Company, or management, expects a stated condition or result to occur. Forward-looking statements may be identified by such terms as “believes”, “anticipates”, “expects”, “estimates”, “may”, “could”, “would”, “will”, or “plan”. Since forward-looking statements are based on assumptions and address future events and conditions, by their very nature they involve inherent risks and uncertainties. Although these statements are based on information currently available to the Company, the Company provides no assurance that actual results will meet management’s expectations. Risks, uncertainties and other factors involved with forward-looking information could cause actual events, results, performance, prospects and opportunities to differ materially from those expressed or implied by such forward-looking information. Forward-looking information in this news release includes, but is not limited to, the Company’s intentions regarding its objectives, goals or future plans and statements. Factors that could cause actual results to differ materially from such forward-looking information include, but are not limited to, the Company’s ability to predict or counteract the potential impact of COVID-19 coronavirus on factors relevant to the Company’s business, failure to identify additional mineral resources, failure to convert estimated mineral resources to reserves with more advanced studies, the inability to eventually complete a feasibility study which could support a production decision, the preliminary nature of metallurgical test results may not be representative of the deposit as a whole, delays in obtaining or failures to obtain required governmental, environmental or other project approvals, political risks, uncertainties relating to the availability and costs of financing needed in the future, changes in equity markets, inflation, changes in exchange rates, fluctuations in commodity prices, delays in the development of projects, capital, operating and reclamation costs varying significantly from estimates and the other risks involved in the mineral exploration and development industry, and those risks set out in the Company’s public documents. Although the Company believes that the assumptions and factors used in preparing the forward-looking information in this news release are reasonable, undue reliance should not be placed on such information, which only applies as of the date of this news release, and no assurance can be given that such events will occur in the disclosed time frames or at all. The Company disclaims any intention or obligation to update or revise any forward-looking information, whether as a result of new information, future events or otherwise, other than as required by law.

NOTES TO EDITORS

About Pembridge Resources plc

Pembridge is a mining company that is listed on the standard segment of the Official List of the FCA and trading on the main market for listed securities of London Stock Exchange plc. Pembridge has an investment in Minto Explorations Ltd, a British Columbia incorporated business operating the Minto mine in Yukon, Canada.

About Minto Explorations Limited

Minto operates the underground copper-gold-silver mine located in central Yukon, approximately 240 kilometres north of the capital Whitehorse along the Klondike Highway. In excess of US$350 million of capital expenditure has been invested into Minto operations since site construction began in 2006. The Minto mine was in continuous production between 2007 and 2018, when the mine was placed onto temporary care and maintenance. Pembridge acquired Minto from Capstone Mining Corporation in June 2019 and restarted operations in October 2019.


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