30 December 2024

Issue of Convertible Bond and Warrants
Update on Trading and Financing Discussions

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

Aterian Plc (LSE: ATN), the critical metal-focused exploration and development company, is pleased to announce the issuance of a convertible bond and warrants to some key existing shareholders and the commencement of discussions with a potential partner to expand its operational and financial capability regarding its trading business.

The Company has completed the issue of £150,000 of three-month convertible bonds (the "Convertible Bond") alongside the granting of associated warrants to existing key shareholders (the "Warrants"). The Convertible Bond due on 29 March 2025 is structured to provide Aterian with short-term funding to support its strategic and operational objectives while the Company continues discussions regarding a larger financial commitment. This larger trade finance package will not be equity dilutive. The issued Convertible Bonds have a 12% per annum coupon rate and convert into new ordinary shares of £0.10 each in the Company ("Shares") at a fixed price of £0.70 (70 pence) per share. The Convertible Bond subscribers will receive 231,429 three-year warrants allowing for exercise into an equivalent number of Shares at £0.70 (70 pence) per Share, as provided for by the Convertible Bonds' terms.

Additionally, the Company is pleased to announce that discussions are progressing positively with a new potential partner regarding operational support and a larger financing package for the minerals trading business. If successfully concluded, this financing package is anticipated to provide Aterian with increased available trading capital, providing logistical and operational support resources needed to accelerate its trading growth initiatives. As previously stated, revenue from trading is ultimately intended to be utilised to advance the Company's exploration projects and fund operating overheads. While discussions remain ongoing, the Company is confident in the progress made to date. Aterian expects to provide further updates in due course in conjunction with the recommencement of the metals trading business which is anticipated early in the 2025 new year.

Mr. Charles Bray, Chairman of Aterian plc, commented:

"The issuance of the Convertible Bond and Warrants to our existing shareholders demonstrates the strong commitment of our shareholders to assist us in reaching our aim to create shareholder value with minimal dilution while maintaining financial discipline. The Board views the existing share price as seriously undervalued and we could not support a new equity issue below our most recent equity issue price of 70 pence per share. Simultaneously, our ongoing partner discussions reflect our serious ambitions to advance Aterian's objectives of having a revenue-generating arm of the business to fund exploration and overheads and advance exploration partnerships. We sincerely appreciate our shareholders continued support and patience in these difficult capital markets and very much look forward to updating the market as to many key exploration and trading milestones we anticipate being met in 2025."

- 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 Joint Broker:

Novum Securities Limited

David Coffman / George Duxberry

Colin Rowbury

Tel: +44 (0)207 399 9400

Joint Broker:

SP Angel Corporate Finance LLP

Ewan Leggat / Adam Cowl 

Tel: +44 20 3470 0470

Financial PR:

Bold 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 metals projects.

Aterian plc is actively seeking to acquire and develop new critical metal resources to strengthen its existing asset base while 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, which 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 to explore and develop a lithium-tantalum-niobium-tin mining operation. The Company also holds an exploration licence in Rwanda. Aterian has a portfolio of multiple copper-silver (+ gold) and base metal projects in Morocco. In January 2024, the Company announced the acquisition of a 90% interest in Atlantis Metals. This private Botswana registered company holds one mineral prospecting licence for copper-silver in the Kalahari Copperbelt and three for lithium brine exploration in the Makgadikgadi Pans region.

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