28 September 2023

Interim Results for the six months ended 30 June 2023

Aterian Plc
("Aterian" or the "Company")

Aterian Plc (LSE: ATN), the critical and strategic metal-focused exploration and development company, is pleased to announce its unaudited interim results for the six months ended 30 June 2023.

Chairman's statement

I am pleased to announce the unaudited Interim Results of the Group for the half-year ending 30 June 2023.

These accounts relate to the Company for the first half of 2023 and reflect a loss of £636,000 arising from administrative costs; this corresponds to the Company's expenditure on overheads, operational and exploration costs. Additional expenditure was incurred on mineral exploration over the HCK project in Rwanda, establishing the mineral trading business in Rwanda, and conducting mineral exploration in Morocco.

Morocco Update

In October 2022, the Company acquired 50 licences covering 15 project areas with a total landholding of 762 km² in the Kingdom of Morocco ("Morocco"). The licences primarily target critical and strategic minerals such as copper, silver and other base metals and are held 100% by the Company's Moroccan subsidiaries. Elemental Altus Royalty Corporation has a 2.5% net smelter return ("NSR") royalty over each of the licences held by Aterian in Morocco.

In August 2023, the Company announced that 10 additional licences were granted to its Moroccan subsidiaries, expanding the overall portfolio to 17 projects, comprising 60 licences and a landholding of 897 km².

Below is a brief description of the projects explored during the reporting period.

The Agdz Project

The Agdz Project covers 34.46 km² and comprises a single mining licence, granted on 21 May 2021 for ten years. The project is located within the Souss-Massa-Drâa region of the Anti-Atlas Mountains of central Morocco, approximately 350 km south of the capital, Rabat, and approximately 35 km east of the city of Ouarzazate, where high-standard infrastructure and services exist, including a regional airport. Agdz lies approximately 14 km southwest of the Bouskour copper-silver mine, with the world-class Imiter silver mine located 80 km to the northeast.

The lithological package at Agdz broadly consists of mostly felsic-intermediate volcano-sedimentary rocks of the Ouarzazate Supergroup with large granodiorite plutons in the north and locally conglomeratic metasedimentary sequences in the south. The units are bisected by a series of sub-parallel NE and NW striking brittle faults and alteration zones, several of which have been historically mined for copper. A recent re-interpretation of the available ground-based geophysics and ground geological mapping indicates that the main prospects identified occur in a potential dilutionary jog structural setting.

Five prospects, namely Makarn, Makarn North, Amzwaro, Miniere and Daoud, have been outlined on the project based on rock chip sampling (the best of which returned grades of up to 26.5 % Cu, 448 g/t Ag, and 3.74 g/t Au). These five significant Cu-Ag prospects cover an area of approximately 8 km2:

• The 2.80 km long Makarn - Markarn North prospects, with results up to 26.5 % Cu and 448 g/t Ag

• The 2.00 km long Amzwaro prospect, with results up to 4.82 % Cu and 189 g/t Ag

• The 0.15 km long Minière prospect, with results up to 14.75 % Cu and 13.8 g/t Ag

• The 0.70 km long Daoud prospect, with results up to 2.98 % Cu, 152 g/t Ag

576 m of reconnaissance trenching has been completed in 13 trenches across two of the five prospects. Results include 14.12 m at 0.65 % Cu and 36.54 g/t Ag at Makarn North and 13.70 m at 0.36 % Cu and 13.26 g/t Ag at Amzwaro.

The Tata Project

The Tata Project covers 154.4 km2 and is located within the western Anti-Atlas Mountains of Morocco and lies 30 km south of the Company's Azrar copper-silver project. The Project is located approximately 465 km south of the capital Rabat, 165 km southeast of the port city of Agadir, and 50 km southeast of the Tizert copper mine, which Managem Group operates.

Late Ediacaran to early Cambrian Adoudou Formation carbonate-rich sediments occurs within the Project along the margins of the Palaeoproterozoic Tagragra de Tata Inlier. Exploration work on the Project has identified copper mineralisation hosted within Adoudoudian sediments and the Cambrian Tata Group sediments.

The Adoudou Formation comprises sediments known to host significant sedimentary copper deposits in the Western and Central Anti-Atlas, including the Tizert mine. The Tizert copper deposit is considered the largest copper deposit in the western Anti-Atlas, with resources estimated to be 57 Mt grading 1.03 % Cu and 23 g/t Ag.

The results indicate the presence of stratiform sedimentary copper at the Project with an unexplored strike length of c. 16 km remaining untested along the northern flank of the inlier and a further c. 9.5 km of strike along the southern margin of the same geological feature. Exploration results from rock chip sampling along 8 km of the strike of the sediments have reported up to 2.05 % Cu from a dolomite float sample located adjacent to the contact between Adoudounian sediments and the Proterozoic inlier. Other results include 0.95 % Cu from a 4 m thick dolomitic sequence and 0.87 % Cu from an 8 m thick sequence of dolomite and marl. More recent fieldwork has observed copper mineralisation along a further 7 km of strike along the northern flank of the inlier (laboratory results from this work are pending).

The Azrar Project

The Azrar Project is situated in the western Anti-Atlas Mountains. It comprises an area of 99.3 km², located 155 km southeast of the port city of Agadir and 45 km southeast of the Tizert copper mine, which Managem Group operates. The western Anti-Atlas is dominated by Palaeoproterozoic to Neoproterozoic age inliers overlain unconformably by Cambrian to recent sedimentary and volcanic sequences.

Preliminary fieldwork has covered 50% of the project area, with copper and silver mineralisation identified over 5 separate zones, with several historic hard rock artisanal mining occurrences recorded. One target is an ENE-WSW trending fault zone traced along strike for c. 1.5 km, and remains open-ended, cross-cutting dolomitic sediments, and up to 8 m wide, with one sample returning 1.41 % Cu and 41 g/t Ag. The maximum copper value from samples collected along this structure is 3.45 % Cu. High-grade copper and silver have been reported from additional outcrop sampling, including 3.79 % Cu and 23 g/t Ag from a separate fault breccia sample. Results support earlier observations that prospective geological formations for stratiform sediment-hosted copper deposits occur within the project area, in addition to structurally controlled mineralisation features, such as fault zones.

The Jebilet Est Project

This Project covers 73.6 km² and lies approximately 200 km south of the capital city of Rabat, 35 km northeast of Marrakech, and 15 km from a rail line to the port of Casablanca. The Project occurs approximately 15 km east of the historic Bir N'Hass copper mine, with several known base metal and copper deposits and occurrences identified within the district (mineralisation hosted at Bir n Hass is not necessarily indicative of mineralisation at Jebilet Est).

The Jebilet Est Project is underlain by Palaeozoic metamudstones and quartzites proximal to Variscan (Hercynian)-age granite and mafic intrusive bodies. Initial reconnaissance has identified a significant network of copper-bearing veins and breccia zones. Multiple parallel quartz-carbonate veins with a general ENE orientation are mapped across the licences with the largest vein zone, up to 10 m wide, striking discontinuously for over 3 km. High copper grades, including 4.43 % Cu and 3.11 % Cu, have been returned from outcrop sampling, with an extensive vein system mapped in the western project area.

The Jafra Project

The Jafra Project covers 29.0 km² in the Western Meseta of north-central Morocco, 36 km northeast of Marrakech, 35 km east of the former Roc Blanc silver mine, and 32 km from the rail line to the port of Casablanca. The project is located on the eastern margin of an intrusive pluton within the metamorphic aureole. It hosts a historically mapped lead occurrence, coincident with apparent former artisanal mining associated with fault zones and a quartz-carbonate vein system. The Project lies 14km south of the Company's Jebilet Est Copper Project.

Reconnaissance has concentrated on two areas within the centre of the project, where several artisanal workings are identified on a prominent topographic feature trending across the project. All mapped workings appear to exploit quartz veins and fault zone breccia with visible sulphide mineralisation.

Surface scree covers much of the high ground; however, individual structures can be traced over 100 m along strike from the workings. Several breccia zones with variable widths up to 3 m have been identified and are typically composed of roughly parallel quartz-carbonate veins and breccia. Veins range from 1 to 30 cm wide with a general NE trend, cross-cutting the host metasiltstones. Rock chip sampling has reported high-grade silver and lead values up to 170 g/t Ag, 22.2 % Pb and 157 g/t Ag, 21.2 % Pb.

Rwanda Update

Aterian, through its 100% owned Rwanda registered subsidiary, Eastinco Limited, is actively engaged in mineral exploration and developing its portfolio of critical metals in Rwanda. The Company has three partnerships exploring and developing the lithium-tantalum(+niobium)-tin opportunities hosted within intrusive pegmatite dykes and sills. Eastinco Limited also holds a metal trading licence issued by the authorities in Rwanda, which will allow for trading metal concentrates from internal supply and third-party producers and suppliers.

Below is a brief description of the operational projects during the reporting period.

The HCK Project

The HCK Project covers 2,750 hectares in southern Rwanda with the licence held by Kinunga Mining Ltd, a Rwanda-registered joint venture company owned 70% by Eastinco Limited and 30% by HCK Mining Company Ltd. Aterian recently entered an earn-in Joint Venture Agreement with Rio Tinto Mining and Exploration Ltd ("Rio") over this project, where Rio can earn up to a 75% interest in the project through funding a two-stage US$ 7.5 million exploration programme. 

Work conducted during the reporting period by the Company comprised a multi-method geophysical survey, sampling and geological mapping and the completion of an aerial drone topographic survey. From work completed, 19 individual pegmatite zones have been identified, with the main target, HCK-1, having an indicated strike length of c 2,500 m with widths up to 100 m in places.

The ground-based multi-method geophysical survey covered an area of 2.36 km2 over the HCK-1 target and comprised magnetometry, induced polarisation ("IP"), and electrical IP tomography ("IPT"). The survey was designed to provide information on the main geological controlling structures for the emplacement of the pegmatite bodies, the depth of weathering and recommended targets for detailed follow-up. Four sub-cropping pegmatite bodies were identified from the survey, further highlighting the strong structural control on pegmatite emplacement with the interpretation of at least three deformation events.

A pegmatite fertility analysis of the multi-element geochemistry from samples collected across the licence was conducted by an external consultant. The study involved analysing data by assessing metal ratios and associations to predict the lithium prospectivity of the pegmatites occurring on the licence. The study indicates that the HCK-1 pegmatite has encouraging evidence for Li-Ta enrichment, even though the Ta grades generally seem to be < 200 ppm; however, the Ta grades were not unexpected given the irregular metal distribution within these weathered and kaolinised pegmatites, with the samples collected from the near-surface environment. Given the deep tropical weathering, the enrichment of Li (16 samples > 150 ppm) is seen as encouraging for locating Li pegmatites at depth (below the weathering zone). The indicated presence of tourmaline and beryl from several localised zones along the strike of the HCK-1 pegmatite implies internal zonation and that the bedrock source pegmatite may comprise a more 'complex' pegmatites (which are generally the targets in LCT pegmatite exploration). The low Rb levels associated with anomalous Li may imply a non-mica lithium source and the low levels of phosphorus vectors toward a more spodumene-rich bedrock target.

Metal Trading   

In January 2023, the International Tin Supply Chain Initiative ("ITSCI") programme for responsible mineral supply chains approved the Eastinco Limited ("Eastinco") application in Rwanda and granted Membership Status. The ITSCI programme supports better governance, human rights, and stability in conflict-affected areas and monitors supply chains allowing metal users to demonstrate responsible sourcing of raw materials within the framework of the ITSCI principles, aligned with the OECD Due Diligence Guidance for Responsible Supply Chains of Minerals from Conflict-Affected and High-Risk Areas (2016).

Since January, The Company has worked to establish a trading facility in Kigali, where concentrate products from small-scale miners and cooperatives can be received, upgraded and cleaned, processed and packaged for export in compliance with international guidelines. In tandem, the trading team has been building a potential supply chain by visiting and understanding the production capacity of over 30 small-scale mining operations in Rwanda.

Aterian's trading business model is to partner with several suppliers in Rwanda to support their mining operations by providing mining and processing equipment, capital investment and training. The first partner projects have been identified, and the Company is now conducting additional due diligence and technical planning. Basic mineral processing systems will be installed under a lease agreement, with the development of new access tunnels into the deeper levels of the mining areas. This new infrastructure and technical support should result in an immediate uplift in production by processing existing tailings material and a longer-term sustainable production uplift from accessing the deeper mineralised structures.

Charles Bray

Executive Chairman

28 September 2023

- ENDS -

This announcement contains information which, prior to its disclosure, was inside information as stipulated under Regulation 11 of the Market Abuse (Amendment) (EU Exit) Regulations 2019/310 (as amended).

For further information, please visit the Company's website: www.aterianplc.com or contact:

Aterian Plc:

Charles Bray, Executive Chairman - [email protected]

Simon Rollason, Director - [email protected]

Financial Adviser and Broker:

Novum Securities Limited

David Coffman / George Duxberry

Tel: +44 (0)207 399 9400

Financial PR:

Bald Voodoo - [email protected]
Ben Kilbey
Tel: +44 (0)7811 209 344

Notes to Editors:

About Aterian plc

www.aterianplc.com

Aterian plc is an LSE-listed exploration and development company with a diversified African portfolio of critical and strategic metals/minerals projects.

Aterian plc is actively seeking to acquire and develop new critical and strategic metal resources to strengthen its existing asset base whilst supporting ethical and sustainable supply chains as the world transitions to a sustainable, renewable future. The supply of these metals is vital for the development of the renewable energy, automotive and electronic manufacturing sectors that are playing an increasing role in reducing carbon emissions and meeting climate ambitions globally.

The Company recently entered into a joint venture agreement with Rio Tinto Mining and Exploration Limited for Rio Tinto to earn into the HCK project in southern Rwanda and holds two further partnerships in Rwanda exploring and developing lithium-tantalum-niobium-tin mining operations. In October 2022, the Company acquired Aterian Resources Limited, a wholly owned battery metals-focused subsidiary of Elemental Altus Royalties Corporation. Aterian currently holds a portfolio of 17 copper-silver and base metal projects with a project area of 897 km2 in the Kingdom of Morocco. 

The Company's strategy is to seek new exploration and production opportunities across the African continent and to develop new sources of strategic and critical mineral assets for exploration, development, and trading.

UNAUDITED CONDENSED CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME

SIX MONTHS ENDED 30 JUNE 2023

All activities relate to continuing operations.

The accompanying notes form part of these interim condensed financial statements.

UNAUDITED CONDENSED CONSOLIDATED STATEMENT OF FINANCIAL POSITION

AS AT 30 JUNE 2023

The Interim Condensed Financial Statements were approved and authorised for issue by the Board of Directors on 28 September 2023.

UNAUDITED CONDENSED CONSOLIDATED STATEMENT OF CHANGES IN EQUITY

FOR THE SIX MONTHS ENDED 30 JUNE 2023