BAKER STEEL RESOURCES TRUST LIMITED

(Incorporated in Guernsey with registered number 51576 under the provisions of The Companies (Guernsey) Law, 2008 as amended)

21 July 2022

Sale of Bilboes Gold to Caledonia Mining

Baker Steel Resources Trust Limited (the "Company") announces that it and the other shareholders of Bilboes Gold Limited ("Bilboes") have signed an agreement to sell Bilboes to Caledonia Mining Corporation Plc ("Caledonia") (NYSE: CMCL; AIM: CMCL; VFEX: CMCL) for a total consideration of 5,123,044 Caledonia shares and a 1% net smelter royalty ("NSR") on Bilboes's gold project. Completion of the transaction is subject to a number of conditions precedent in particular Zimbabwean Government approvals which are expected to be satisfied before the end of 2022.

The Company's share of the consideration for its 24.2% shareholding in Bilboes will be 800,000 shares in Caledonia and instead of receiving all its consideration in shares the Company negotiated part of it in the form of a 1% NSR. Valuing the royalty as if the Company is receiving the same value per Bilboes share as the other Bilboes shareholders and the closing Caledonia share price on the New York Stock Exchange on 18 July 2022 of US$10.40 values the Company's consideration at US$14.3 million. However, in future the royalty will be valued based on the Company's policy of a development risk adjusted economic model.

Caledonia is a profitable NYSE, AIM and Victoria Falls Exchange listed gold producer whose primary asset is the Blanket Mine in Zimbabwe which is on target to produce 73,000-80,000 ounces of gold during 2022 and Caledonia currently pays a quarterly dividend of 14 cents a share (approx. 5.5% yield) and trades on a P/E of 6 times prospective 2022 earnings (source: Bloomberg).

Earlier this year independent consultant DRA Africa Holdings (Pty) Ltd ("DRA") completed a feasibility study on Bilboes' Isabella/McCays/Bubi gold project in Matabeleland, Zimbabwe indicating the potential for an open pit gold mine with average annual production of approximately 168koz per annum with a 10-year life at a projected all-in sustaining cost (AISC) of US$826/oz. According to the study, the project has a Net Present Value at a 10% discount rate of US$323 million at a gold price of US$1,650/oz. However, Caledonia has indicated that it will re-engineer the feasibility study to a phased development approach which would entail lower up-front capital and initial production.

Although the headline consideration for the Company's share of Bilboes is approximately 10% lower than the Company's carrying value at 30 June 2022, largely due to the recent fall in Caledonia's share price in line with other gold producers, there are significant synergies with the transaction. Not only will financing the development of Bilboes' mine be easier in a larger cash generative group but also Caledonia's technical team has demonstrated its ability to operate successfully in Zimbabwe having recently increased the production capacity at its Blanket mine from 50,000 ounces to 80,000 ounces gold per annum. With the acquisition of Bilboes, there is now a clear path for Caledonia to move to become a 250,000 ounce per annum gold producer with the potential for a significant re-rating of its shares.

The Company believes that the Bilboes project has a very good prospect of becoming a successful gold mine in the near term, with potential to expand its reserves and extend its mine life over the medium term. It has thus opted for an ongoing direct interest in the mine through the NSR. This could start as early as next year from initial oxide mining albeit at a considerably lower rate but should the full production rate of 168,000 ounces per annum be achieved the NSR would generate around US$2.6 million per annum for the Company at current gold prices. Together with the other royalties in the portfolio it is hoped that this will become the basis for regular cashflow to the Company which in turn can be passed on as dividends to shareholders

Further details of the proposed transaction can be found in Caledonia's RNS made today available on its website www.caledoniamining,com .

Further details of the Company and its investments are available on the Company's website www.bakersteelresourcestrust.com

Enquiries:

Baker Steel Resources Trust Limited             +44 20 7389 8237

Francis Johnstone
Trevor Steel

Numis Securities Limited                               +44 20 7260 1000

David Benda (corporate)

James Glass (sales)

The Net Asset Value ("NAV") figure stated is based on unaudited estimated valuations of the underlying investments and not necessarily based on observable inputs. Such estimates are not subject to any independent verification or other due diligence and may not comply with generally accepted accounting practices or other generally accepted valuation principles. In addition, some estimated valuations are based on the latest available information which may relate to some time before the date set out above.

Accordingly, no reliance should be placed on such estimated valuations and they should only be taken as an indicative guide. Other risk factors which may be relevant to the NAV figure are set out in the Company's Prospectus dated 26 January 2015.