Corcel PLC

("Corcel" or the "Company")

Half Year Report

20 March 2023

Corcel Plc (London AIM: CRCL), the extractive industries exploration and development company, with interests in battery metals including nickel, cobalt, and rare earth elements, announces its unaudited half-yearly results for the six months ended 31 December 2022.

Board Statement

Dear Shareholders,

We believe Q1 2023 marks a pivotal moment for your Company, following an admittedly difficult period. 

Corcel is now positioned as a carried non-operator miner across multiple mineral exploration projects in its growing battery metals upstream portfolio and has recently broadened its strategy to include oil and gas alongside mining, with a particular focus on Brazil.  This reflects the significant onshore opportunity set in the oil and gas sector at attractive valuations and the Company's Executive experience and connectivity in this space.  Whilst the Company continues to have a strong belief in global electrification, with the expected supply constraints in these key metals and the associated price increases already underway, the Company has decided to take advantage of the macro tailwinds in the oil and gas sector and leverage its connections and expertise in the sector.   

To enable this strategic repositioning, the Company has taken various steps to re-position its legacy portfolio including:

o  Restructuring its PNG nickel assets, positioning them in a broader portfolio, on a fully carried basis, ready for a standalone listing which we expect to be at a highly attractive valuation

o  Acquiring and subsequently farming out the Mt. Weld project in Western Australia.  Mt Weld is a potentially significant rare earth project, located next to one of the world's largest REE mines, where the encouraging results of a magnetics inversion confirm the potential of the project, which is now preparing up to four high quality drill targets.  This interest is non-operated and fully carried with drilling expected to commence shortly with potentially transformational results

o  Completing a series of asset sales, including the Tring Road and the Burwell projects

o  Completing a substantial deleveraging programme during 2022

The Company is therefore now positioned with near term, and potentially transformational, newsflow from both Mt Weld and advantaged potential oil and gas acquisitions.  With its legacy assets now fully carried, we believe shareholders can look forward to an exciting 2023.

The Board and I want to thank our shareholders for their support.

James Parsons

Executive Chairman

Consolidated statement of financial position

as at 31 December 2022

The accompanying notes form an integral part of these financial statements.

Consolidated statement of income

for the period ended 31 December 2022

Consolidated statement of comprehensive income

for the period ended 31 December 2022

The accompanying notes form an integral part of these financial statements.

Consolidated statement of changes in equity

for the period ended 31 December 2022

The movements in equity during the period were as follows:

Consolidated statement of cash flows

for the period ended 31 December 2022

Half-yearly report notes

for the period ended 31 December 2022

9       Capital Management

Management controls the capital of the Group in order to control risks, provide the shareholders with adequate returns and ensure that the Group can fund its operations and continue as a going concern.

The Group's debt and capital includes ordinary share capital and financial liabilities, supported by financial assets.

There are no externally imposed capital requirements.

Management effectively manages the Group's capital by assessing the Group's financial risks and adjusting its capital structure in response to changes in these risks and in the market. These responses include the management of debt levels, distributions to shareholders and share issues.

There have been no changes in the strategy adopted by management to control the capital of the Group since the prior year.

10       Events after the reporting period

Mt Weld Farmout

      On 4 January 2023, the Company announced that it had entered into a farm-out and joint venture agreement with Riversgold Ltd (ASX:RGL) covering its recently acquired rare earth elements project at Mt. Weld, in Laverton, Australia.  The transaction resulted in the Company receiving AU$30,000 immediately in cash and a funded carry through an AU$500,000 initial work program covering a 12 month period, which if completed would see the Company surrendering 50% of its interest in the project to the JV partner.  A further earn-in period, with a AU$1,000,000 required spend, would allow RGL to potentially acquire an additional 20% interest in the project.  

Sale of Burwell Energy Storage Project

      On 25 January 2023 the Company announced that had completed the sale of its 100% interest in the Burwell Energy Storage project to Burwell AL Limited.  Consideration for the transaction totalled £200,000 plus reimbursement for the Company's £50,000 grid connection deposit lodged in prior years.

Debt Restructuring

      On 30 January 2023 the Company announced restructured debt totalling £673,348 by way of an immediate cash payment of £235,671, incurring a refinancing fee of 5% of principal outstanding.  The remaining principal of £471,343 is due for repayment in 8 equal monthly instalments commencing in February 2024, attracts an interest rate of 6% annually and may be converted into ordinary shares at a fixed price of £0.004 per share.  The Company retains the right to repay the loan early in cash, subject to a 5% early repayment fee. 

Option to Acquire Australian Lithium Project

On 22 February 2023 the Company announced that it had entered into an exclusive 30-day option with Huntsman Exploration Inc to acquire a 100% interest in the Canegrass Lithium Project in Australia.  Consideration for entering into the option took the form of a non-refundable cash payment of £20,000 and allows the Company to acquire the asset within the option period for consideration of £200,000, payable by the issuance of 50,000,000 new ordinary shares.

NPC JV signature

On 1 March 2023 the Company announced that it had entered into agreements with Integrated Energy Metals ("IEM") to restructure the Company's PNG battery metals assets into a new carried vehicle, Integrated Battery Metals ("IBM"). Following the transaction the Company will retain a 50% interest in the new JV vehicle, receive a $1,500,000 carried interest in the forward work program and be entitled to a gross revenue royalty of 1.5% over production from the Wowo Gap project.  It is intended that IBM will, ultimately, be listed in Asia.  An additional announcement would be made at completion of the transaction.

Wowo Gap Exploration License Renewal

On 7 March 2023, the Company announced that Exploration License 1165 (EL 1165) had been renewed for a period of four years retroactively, with the updated term now valid through February 2024. 

For further information, please contact:

Scott Kaintz                                                                               Corcel Plc CEO

020 7747 9960                                                

James Joyce / James Bavister /Andrew de Andrade             WH Ireland Ltd NOMAD & Broker

0207 220 1666                                                

Patrick d'Ancona                                                                      Vigo Communications IR

0207 3900 230                                              

The information contained within this announcement is deemed to constitute inside information as stipulated under the Market Abuse Regulation (EU) No. 596/2014 which is part of UK law by virtue of the European Union (withdrawal) Act 2018. Upon the publication of this announcement, this inside information is now considered to be in the public domain.