BAKER STEEL RESOURCES TRUST LIMITED

(the "Company")

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

6 January 2023

LEI: 213800JUXEVF1QLKCC27

Completion of Bilboes Gold Transaction

Caledonia Mining Corporation Plc ("Caledonia") announced today that, following the satisfaction of all conditions, it has today completed the acquisition of Bilboes Gold Limited ("Bilboes") announced on 21 July 2022.

The Company's share of the consideration for its 24.2% shareholding in Bilboes will be 800,000 shares in Caledonia and a 1% Net Smelter Royalty ("NSR"). Based on yesterday's closing bid price on the AIM Market of the London Stock Exchange of £10.40 per share for Caledonia shares, the Company's share consideration is valued at £8.0 million after allowing for an 8% discount to half the shares which are subject to a 6 month lock-up. The royalty will be valued based on the Company's policy of a development risk adjusted economic model. It is expected that the share consideration will be received in time that they will qualify for the US$0.14/share dividend declared by Caledonia on 30 December 2022.

Caledonia is a profitable NYSE, AIM and Victoria Falls Exchange listed gold producer whose primary asset is the Blanket Mine in Zimbabwe producing at the rate of around 80,000 ounces of gold per annum. On completion the Company will hold approximately 4.4% of the issued share capital of Caledonia.

At the beginning of 2022, 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 168,000oz 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.

Caledonia will conduct its own feasibility study to identify the most judicious way to commercialise the project including a phased development approach which would minimise the initial capital investment and reduce the need for third party funding. In addition, Caledonia is planning to re-start oxide operations at Bilboes from February 2023 such that the Company will start to receive a small amount of income under its NSR in the meantime. Once the full production rate of 168,000 ounces per annum is achieved the NSR would generate around US$2.6 million per annum for the Company at current gold prices.

Under the Transaction, 5% of the consideration shares (40,000 shares) will be retained by Caledonia in order that any customary adjustments to the purchase price can be calculated after completion to account for any extraordinary liabilities incurred prior to completion.  This calculation is expected to be completed in the next few weeks.

The Company believes that the completion of the acquisition of Bilboes when combined with its successfully producing Blanket mine will provide Caledonia with the foundation to become a significant mid-tier gold producer. In addition, Caledonia's recent acquisition of the much earlier stage Motapa exploration project, which is contiguous to Bilboes, has the potential to double the resources of a combined project, significantly increasing both the size and life of the mine which is already projected to be the largest gold mine in Zimbabwe's history.

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)

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.