Corcel PLC

("Corcel" or the "Company")

Partial Sale of Mt. Weld

5 May 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 that it has agreed the sale of a 20% interest in its Mt. Weld Rare Earth Element project to Extraction Srl, an Italian private company controlled by Mr Antoine Karam, for cash consideration of AUD$1,000,000 payable by 31 May 2023.  Extraction Srl is a shareholder in Corcel, currently holding an interest of 9.61%, and, as previously announced, Mr Antoine Karam (a shareholder in Extraction Srl) is expected to join the Board following regulatory checks, which are underway.

Riversgold Ltd (RGL) has agreed to waive its pre-emption rights over the sale of this interest, and Extraction Srl, will now become a party to the joint venture agreement originally announced on 4 January 2023.  Following this transaction CRCL will have an 80% interest in the project pending the results of the first earn in period, where RGL may, by funding the current work programme and spending AUD 500,000 over a twelve-month period, earn in to 50% of the project.  If the first earn in period is completed, which is expected to be the case, the resulting shareholdings would be RGL 50%, CRCL 30% and Extraction Srl 20%, at which time all parties would be responsible to pay their proportional share of future costs at the project. 

The Board of Corcel is currently considering the use of proceeds from the partial sale of Mt. Weld and additional announcements will be made as appropriate.  For the period ended 31 December 2022, the 20% interest in Mt. Weld being sold was held in in the Company's interim accounts balance sheet at £43,000, leaving a profit net of costs on disposal of the interest of approximately £475,472.              

As announced on 2 May 2023, the joint venture partners have recently initiated a drilling programme at Mt. Weld, and additional announcements on these developments will be made in due course. 

James Parsons, Corcel's Chairman, commented:

"I am delighted to announce this partial de-risking of our Mt Weld asset ahead of drilling results at the project.  The Company will now focus on its first transaction following its recent pivot to oil and gas".

About the Mt. Weld REE Project

The "Mt Weld (P38/4489) Project," consists of granted mineral tenement, located 1.4 km (0.9 miles) west-north-west of Lynas Rare Earths Limited's Mt. Weld REE Mine near Laverton in Western Australia.  The Project covers 171 hectares in size and the tenement straddles the mine access road to Lynas's Mt. Weld Mine.  The tenement is predominantly covered by recent transported sediments obscuring the underlying geology. Four discrete undrilled magnetic features, potentially representing carbonatite intrusive complexes have been interpreted from open file high resolution magnetic surveys and warrant further investigation.  

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.