Jangada Mines plc / EPIC: JAN.L / Market: AIM / Sector: Mining

21 April 2022

Jangada Mines plc ('Jangada' or 'the Company')

Technical Report Including Titanium Potential

for Pitombeiras Vanadium Titano-Magnetite Project

Jangada Mines plc, a Brazilian focussed natural resource development company, announces an updated technical report ('Technical Report') with the inclusion of the titanium component at its 100%-owned Pitombeiras Vanadium Titano-Magnetite ('VTM') Project ('the Project') in Ceará State, Brazil.  The Technical Report was prepared by Brazilian based GE21 Consultoria Mineral ('GE21') and is compliant with National Instrument 43-101 ('NI 43-101'). The Technical Report supersedes the Preliminary Economic Assessment ('PEA') published in 2021.

The Technical Report confirms that there are no legal, technical, or geological impediments to proceeding to mine development, construction, and production, highlights the Project's robust economics and excellent potential to become a profitable producer of Ferrovanadium concentrate ('Fe 62%') and Titanium dioxide ('TiO₂').

The initial objective of the Feasibility Study considered a processing route centred on Fe 62% and vanadium pentoxide ('V₂O₅').  Whilst completing this study, it became evident that an expansion of the saleable commodity basket to include TiO₂ would likely be beneficial to the Project's economics.  Presently, the evaluation of the Fe 62% and V₂O₅ has been completed to a Feasibility Study standard, while the inclusion of the TiO₂ remains at a PEA level.  The Company is now consulting with GE21 on finalising the Feasibility Study, embracing all the three commodities to evaluate the opportunities to construct a low CAPEX direct shipping ore ('DSO') mining operation, and expects to release this in the coming months.  The Company does not anticipate that the inclusion of the titanium to feasibility standard will result in a material deviation from the Technical Report conclusions and numbers below, and there remains no geological, economic, or legal impediment to proceeding to production.

OVERVIEW

·    Robust economics inclusive of TiO₂:

o  100.3% post-tax Internal Rate of Return ('IRR')

o  US$96.5 million post-tax Net Present Value ('NPV') (8% discount rate)

o  All-inclusive CAPEX totalling US$18.45 million

o  Payback time - 13 months

·    Total Project Mineral Resource Estimation ('MRE') from only 3 of 8 known magnetic targets being Pitombeiras North, South, and Goela remains at:

·    All chapters of the Technical Report including pit design and operation, processing route, production matrix and sales route defined to feasibility level (exception being chapter relating to TiO_2. which is at PEA level)

·    The need for wet concentration to produce a high-grade saleable product, translated into a reduced input rate of 0.6ktpa compared to initial PEA - NPV and IRR remain highly attractive, and the Project is de-risked substantially with Fe 62% / V₂O₅ concentrate process route to feasibility standard

·    Positive pricing and demand forecast for both V₂O₅ and TiO₂ due to rapid utilisation in emerging renewable energy and electric vehicle sectors expected to benefit the Project - iron ore price variation impacting the Project's forecast economics

·    Brazil represents a stable and progressive mining jurisdiction for international investment

·    Simplicity of operations and processing route and the increased level of confidence provided by the depth of the report makes Pitombeiras amenable to a fast-track approach to production decision

·    With the Technical Report de-risking the Project and outlining a defined route to production, full offtake discussions can commence

·    The Board is evaluating the next steps to advance the Project and build value for shareholders

OPERATIONAL OVERVIEW

·    Annual production 186,000t of Fe 62% / V₂O₅ and 66,000t TiO₂ at production/processing rate of 600,000tpa

·    Life of Mine ('LOM') approximately 9 years based only on the current estimated minable resource of 5.5Mt - no pre-stripping foreseen

·    Total LOM Mineable Resources: 5.1Mt M&I plus 3.16Mt Inferred 

·    LOM average strip ratio: 1.6 t/t Waste/Ore

·    Total tonnages produced forecast of:

o  Fe/ V₂O₅: 1,740,000t

o  TiO₂: 66 kt

·    Exploration potential to increase LOM remains open

FINANCIAL OVERVIEW

·    US$96.5 million NPV @ 8% discount rate

·    100.3% post-tax IRR

·    US$415.2 million total gross revenue

·    US$145.9 million post-tax, undiscounted operating cash flow

·    Post-tax payback period of 13 months

·    US$18.45 million CAPEX (US$2.25 million for TiO₂)

·    US$1.26 per tonne mined average operating cost

·    US$19.39 per tonne of Fe V₂O₅ concentrate processed average operating cost

·    US$ 12.48 per tonne of TiO₂ processed average operating cost

Brian McMaster, Executive Chairman of Jangada, said: "We are witnessing an increase in focus on commodities that broadly fit the emerging energy and battery space.  Given this, we have gone back and optimised the development route at Pitombeiras to include the 9.85% TiO₂ component alongside the Fe 62% and V₂O₅ to obtain a clearer picture of the Project's potential. The resultant technical and economic fundamentals, including a NPV of US$96.5 million, an IRR of 100.3%, and an estimated 13-month payback, represents a positive development for Jangada as it identifies the Company as an emerging producer of highly coveted new energy metals.

"We have continued to de-risk the Project with the vast majority of this Technical Report conducted to a Feasibility Study standard, and we are now working to bring the TiO₂ element, currently at a PEA level, up to the same standards prepared to the FerroVanadium process. Importantly, GE21 has confirmed the optimal processing route and there is no impediment to continuing to production using only ore from the three exploration target areas, Pitombeiras North and South, and Goela, with a further five targets available to continue mine life expansion. 

"The variability in the iron ore price affects our economics both positively and negatively, given the importance of Fe to our commodity basket.  A positive environment is great, as we are seeing at the moment, however, in a declining pricing environment, the Fe pricing is offset somewhat by the value of the increasing global demand for vanadium pentoxide and titanium dioxide, our relatively low CAPEX and strong project economics.  Notably, with the completion of the Technical Report we can commence offtake discussions in-county, which would reduce the OPEX/transport cost, as well as internationally.

"Finally, given our extensive in-country contacts and positioning, we are continuously seeing additional projects and regularly review opportunities, particularly in the technology metal space, that may complement our existing asset suite and create further value for shareholders.

"We look forward to updating the market further as we complete the on-going Feasibility Study including the titanium."

Further Information:

GE21 Consultoria Mineral Ltda. ("GE21") was engaged by Jangada Mines Plc ("Jangada" or the "issuer") to prepare an Independent Technical Report ("ITR") for the Pitombeiras Project, based on premises of mineral processing, and first principles for mining activities. The purpose of this report ("Report" or "Technical Report") is to provide background and supporting information on the Mineral Reserves, and its economic potentiality. This Report and estimates herein comply with the requirements of the Canadian Securities Administrators' National Instrument 43-101 - Standard of Disclosure for Mineral Projects ("NI 43-101") and Form 43-101F1 - Technical Report ("Form 43-101F1").

Geology and Mineralization

The geology of the Pitombeiras Project is characterized by the presence of mafic and ultramafic rocks (metabasalts, metagabros, serpentinites and talc schists) with local intercalations of metathrondjemites as part of the Troia Unit, and also by medium to coarse-grained granite-orthogneisses, with a calc-alkaline affinity with pegmatite injections and metaultramafic lenses belonging to Pedra Branca Unit.

The vanadium mineralization at the Pitombeiras Project is closely associated with magnetite and occur in magmatic accumulations of magnetite and ilmenite bodies hosted within the Archean-age mafic-ultramafic rocks of the Troia unit that shows several similarities to other magmatic vanadium titanomagnetite ("VTM") or ilmenite deposits associated with layered mafic intrusive complexes, such as the Bushveld Complex (South Africa), the Skaergard Intrusion (Greenland), Maracas Menchen (Brazil), Panzhihua layered intrusion (China), Kachkanar massif (Russia) and in the Windimurra Complex (Australia).

VTM deposits are found throughout the word and are considered the principal sources of vanadium. The main economic aspects for VTM deposits include: (i) the ore grade, (ii) the concentrate grade and (iii) the mass recovery.

Mineral Resource Estimate

The Mineral Resource Estimate ("MRE") for the Pitombeiras Project has been prepared in accordance with the Canadian Institute of Mining, Metallurgy and Petroleum ('CIM') Standards on Mineral Resources and Reserves: Definitions and Guidelines, May 10, 2014 (CIM, 2014), by Mauricio Prado, MSc. Geologist and Qualified Person, as defined by NI 43-101 guidelines, with effective date of July 20th, 2021.

This MRE includes three exploration target areas, Pitombeiras North & South, and Goela. The exploration results originated from the drilling program identified occurrences of VTM mineralization on both targets.

There are no known issues related to environmental, permitting, legal, title, taxation, socio‐economic, marketing, or political matters, which could materially affect the Mineral Resource Estimate.

The database provided follows the best practice for mineral exploration within the mineral industry. The topographic survey covers all the areas of geological model and resource estimation.

The geological model has been designed applying the geological information from core logs. Individual Domains have been created for both targets based on VTM occurrences. As for the Pitombeiras North target, the VTM Domains were subdivided on HG and LG Domains based on the predominance of massive VTM mineralization and VTM interbedded with magnetic mafic rocks (amphibolites).

The grade estimates of V2O5, TiO2 and Fe2O3 were obtained from the results of variographic analysis of data, by Ordinary Kriging.

The mineral resources are classified under the categories of Measured, Indicated and Inferred according to the CIM Guidelines, which reflects the relative confidence of the grade estimates and the continuity of the mineralization for this type of deposit.

A reasonable prospect for an eventual economic extraction of the Mineral Resources has been established through the calculation of a conceptual open pit shell, following the input parameters: 1) Selling price for iron concentrate (62%/65% Fe, + V2O5 credit) of US$105.75/t; 2) mining cost of US$2.78/t mined; 3) processing cost of US$6.00/t processed; 4) general and administrative (G&A) costs of US$1.14/t; 5) global mass recovery of 80%; 6) mining dilution of 5%, and; 7) mining recovery of 95%.

The classification of the Mineral Resource Estimation resulted in a total of measured resources of 1.75Mt at 0.48% V2O5, 9.47 % TiO2 and 47.79% of Fe2O3., an Indicated Resources of 3.35Mt at 0.45% V2O5, 8.82 % TiO2, and 45.16% of Fe2O3, and an Inferred resource of 3.16Mt at 0.44% V2O5, 9.00% TiO2 and 45.86% of Fe2O3 (Table. 1 1).

Table. 1 1 - Mineral Resource Statement of the Pitombeiras Project - Effective date: July 20th, 2021

Notes: The Mineral Resource is limited to within the tenement boundaries. Mineral Resources that are not Mineral Reserves do not have demonstrated economic viability. There has been insufficient exploration to define the Inferred Resources tabulated above as an Indicated or Measured Mineral Resource. There is no guarantee that any part of the mineral resources discussed herein will be converted into a mineral reserve in the future. The mineral resource estimate follows current CIM definitions and guidelines for mineral resources. Mineral Resources are reported using a cut-off calculated assuming only the blocks within a conceptual open pit shell optimizes by NPV Scheduler that uses the following assumptions: iron ore concentration (62%/65%Fe, +V2O5) price of 105.75 US$/t, 80% of global mass recovery of Fe to the concentrate, US$2.78/t of mining cost (ROM), processing costs of US$6.00/t, mine dilution of 5%, mine recovery 95%, and final slope angle of 56°to the open pit. Mineral Resources have been reported on a dry tonnage basis. Discrepancies may occur due to rounding. Mineral Resources are reported with an effective date of July 20th, 2021. The Qualified Person for the estimate, as defined by NI43-101, was Mauricio Prado, MSc. Geo. MAIG.

Mineral Reserves Estimation

The existing resources and the amount of current data do not allow for the conversion of the Mineral Resources into Mineral Reserves. As such, GE21, making use of its own methodology, has put forth herein an economic evaluation, in the form of a Preliminary Economic Assessment, in accordance with what is established by the CIM.

A "Preliminary Economic Assessment" means a study, other than a pre-feasibility or feasibility study, which includes economic analysis of the potential viability of Mineral Resources. A PEA level study is of insufficient accuracy to establish Mineral Reserves.

Mining Methods

An ultimate pit and mine plan were developed to optimize plant feed for 0.6 Mtpa of production.  The Pitombeiras Project will be an open pit operation utilizing a contract mining fleet of hydraulic excavators, front-end loaders, 30t haul trucks, rotary drill rigs and ancillary equipment.

The waste dump will be in an area close to the pit. The site shall be adequately prepared to include drainage at its base and channels to direct the flow of water with the aim of aiding geotechnical stability and mitigating the erosion of the stockpiled material.

Table. 1 2 - Pit Design Results

Mineable Resources were estimated using the Geovia Whittle 4.3 software and following the economic parameters: Sale price for iron ore concentration (62%/65%Fe, +V2O5): US$/t conc.= 105.75. Exchange rate US$ 1.00 = R$ 5.25. Mining costs: US$2.78/t mined, processing costs: US$20.00 /t milled and G$A: US$1.14/t conc. ROM are the economic portion of the Measured, Indicated and Inferred mineral resources. Dilution 5% and Recovery 95%. Final slope angle: 56º. Waste = 8.81Mt. Strip Ratio = 1.60 t/t - (Waste)/Ore (measured+ indicated +inferred). The Qualified Person Responsible by the PEA is Porfirio Cabaleiro Rodrigues, BSc. (MEng), FAIG, an employee of GE21.

Mine Schedule

The mine production scheduling was generated in Geovia Whittle 4.7 software, where the following assumptions were used:

·    Production rate: 0.6 Mtpa; and

·    ~186kt of product (Fe 62%) per year.

This study consisted of establishing annual production schedules for the Run-of-mine (ROM) and waste mining sequence, as well as the evolution of the geometries throughout the life of the mine (LoM).

For the development of the production program, the areas to be mined annually were established, thus generating operational plans for years 1 to 9. No pre-stripping is foreseen.

Table. 1 3 - Mining Schedule Production

*Designed Pits

**Grade diluted by 5%.

Mine Fleet Sizing

The mining services will be outsourced and are based on a small-scale equipment projection to meet the selectivity requirements of the proposed mining. A CAT 340 hydraulic excavator equipped with a 2.4 m³ bucket was selected, as well as Scania P420 30-ton trucks, equipped with a hard rock type bucket. DX800 rotary type drills, with a 4" diameter drill bit, were selected for the perforation of the rock. A CAT 930 front-end loader equipped with a 2.1 m³ bucket was selected for loading tailings at the plant area.

GE21 has estimated the required yearly mine fleet to achieve the mine schedule and the results are shown at Table. 1 4 below.

Table. 1 4 - Mine Equipment

Recovery Methods

The mine pre-concentrate (cobbing) will be fed into a ball mill (Mo) in a closed circuit with a hydrocyclone battery (C1). The overflow (C1) will feed the wet roller magnetic concentrator (M1), rougher stage, with an intensity of 1,500 Gauss.

Magnetic concentrate from (M1) will go to (M2), wet roller magnetic concentrator in cleaner stage also with an intensity of 1,500 Gauss. The magnetic concentrate (M2) will represent the final product and will be sent for dewatering in thickener and the underflow in a disposal pile or pond. The overflow of the thickener is the recovered water.

Both (non-magnetic) tailings from M1 and M2 will be thickened by the hydrocyclone battery (C2), whose underflow will feed the wet roller magnetic concentrator, in rougher stage (M3), with an intensity of 7,500 Gauss. The magnetic concentrate (M3) will go to (M4), cleaner stage with the same intensity of 7,500 Gauss. The M4 concentrate will be a final medium intensity magnetic concentrate, which will also be drained into a thickener and the underflow in a disposal pile or pond. The overflow of the thickener is the recovered water.

Tailings (non-magnetic) from M3 and M4 will be pumped to a battery of hydrocyclones (C3). The underflow (C3) will feed a tailings pond, and the overflow will be thickened by EP1, a vertical thickener, for water recovery. The underflow from the EP1 to a tailings pond.

The plant was sized to be fed by 600 kt of ROM/year at the cobbing stage. This means that the wet plant will receive 450 kt/year of pre-concentrate. The annual production of concentrate will be 180 kt/year, dry basis, meaning 200 kt/year to be transported to the port, considering 10% moisture.

The ball mill sizing was performed following Work Index determination of all 3 samples sent to Fundacão Gorceix. Bond Method was the base for these calculations. This 3.5 diameter x 5.0 m long mill will have 850 kW of installed power, representing the most expensive equipment of this project.

Mineralogical characterization studies show that titanium is associated with the mineral ilmenite. Based on available literature and results from other similar projects, the use of carboxylic acid-as based collector flotation (eg Flotinor 10068) and non-ionic polymer co-collector (eg DP-OMC-1178), and fluosilicic acid (H2SiF6) to regulate the pH to about 4, is capable of selectively recover the ilmenite present in the non-magnetic waste from wet magnetic separation.

The power demand was estimated in 600 kVA for the Dry circuit, at the mine site supplied by diesel generators. The wet plant power demand is estimated in 1,600 kW.  Water requirement for the wet plant is 31m3/h + losses. 50 m3/h supply is advisable.  Grinding media consumption was estimated in 50 g/kWh, a typical figure that has still to be confirmed in the actual operation.

The chemicals considered are only the flocculants, however some caustic soda may be necessary to reduce grinding media consumption. Since there will be no liquid effluents, there is no need of neutralization.

Titanium Recovery

Titanium concentrate recovery estimates were based on the results of mineralogical studies and pilot and laboratory tests to obtaining vanadium and iron concentrates.

Mass Balance - Magnetic Separation and Flotation

Considering the contents (Fe, TiO2 and V2O) of the ore, the mass balance of the low and medium intensity magnetic separation was simulated based on the results of the pilot tests carried out at Fundação Gorceix, as shown in Table. 1 5 below.

Table. 1 5 - Mass Balance - Magnetic Separation - Simulation

Fe, TiO2 and V2O5 contents of the samples used in the pilot-scale tests at Fundação Gorceix presented higher contents in relation to the contents of the ore: Oxide (Fe= 52.60%; TiO2 = 15.50%; V2O5 = 0.84%); Transition (Fe = 45.10%; TiO2 = 13.40%; V2O5 = 0.69%); Fresh (Fe = 48.90%; TiO2 = 13.20%; V2O5 = 0.76%). So, in addition to the simulation, it was necessary to make an adjustment in the mass balance of the low and medium intensity magnetic separation, as shown in Table. 1 6 below.

Table. 1 6 - Mass Balance - Magnetic Separation - Simulation and Adjustment

The tailings, non-magnetic from low and medium intensity magnetic separation, with an average content of 14.01% TiO2, will be treated in a battery of hydrocyclones to remove the ultra-fines, and the deslimed product (underflow) will be fed into a traditional flotation circuit in Rougher, Scavenger and Cleaner stages, as shown in Figure 1 5 below. The overflow of this cyclone battery, final tailings, will be dewatered, filtered and disposed of in piles together with the flotation tailings, also final tailings.

Mineralogical characterization studies show that titanium is associated with the mineral ilmenite. Based on available literature and results from other similar projects, the use of carboxylic acid-as based collector flotation (eg Flotinor 10068) and non-ionic polymer co-collector (eg DP-OMC-1178), and fluosilicic acid (H2SiF6) to regulate the pH to about 4, is capable of selectively recover the ilmenite present in the non-magnetic waste from wet magnetic separation. Table 1.7 presents the Mass Balance - Magnetic Separation - Simulation.

Table 1.7: Mass Balance - Magnetic Separation - Simulation

Project Infrastructure

The project site infrastructure will have a waste dump, a dry tailings dump, and a dry beneficiation plant for the processing of ROM resulting in an iron-titanium pre-concentrate. This material will be transported through federal road for 350 km to a second processing plant, located near the port, where a titanium concentrate will be produced.

Power Supply

The power line in the area is adequate to supply the office, laboratory, restaurant, facilities and plant. The company responsible for supplying electric power in the Project region is Companhia Energética do Ceara - ENEL (previous COLECE). A 69 kV power line connects the Senador Pompeu substation located in the municipality of Pedra Branca to the Tauá municipality. The mine will use generators and electrical energy for power supply. It is estimated that the annual energy consumption of the plant will be approximately 10 147MW.

Buildings

The construction project considered the use of semi-permanent buildings for the administrative facilities. The proposed system, which will be used in the construction and operation phases, uses container structures, which is characterized by being strictly rational, because the material has industrial characteristics and standardized sizes, and can thus be thought of as a modular architecture. Such structures can be mounted directly on level ground, requiring relatively little preparation (just leveling and eventually slab construction). This type of structure can provide adequate facilities with a faster deployment schedule, lower environmental impact and lower cost.

Explosives Magazine

The explosives will be delivered in the mining area just in time of blasting. The storage and transportation of this material will be the responsibility of the contracted company.

Communications

An internet tower will be installed to cover the throughout the offices and plant area. The mine and mill operations will use portable radios. Communication towers will be installed to cover the entire site.

Access and Roads

The pre concentrated will be transported by trucks on unpaved road for about 5 km until the federal road BR-020.

Site roads are designed to connect facilities in the mine and process area. The following roads are accomplished:

·    Mine Haulage access road:  No pavement internal roads will connect mine to waste dump and a process plant and process plant to a tailing dump will be built with a 12 m width and maximum 10% of inclination.

·    Deforestation as well as earthworks necessary for building roads or for improvements on existing roads are accomplished in engineering project.

Waste and Tailing Management

The ROM with grades below the minimum acceptable by the Processing Plant, even though mineralized, will be excavated, loaded, transported and disposed in the waste dump, following the respective project of each dump. All fleets for mining activities have been selected and sized for both mining and waste removal.  Waste rock will be loaded, transported and disposed in the corresponding waste dump. All the layout must to be in conformity with the waste stockpiles project and in accordance with the projected disposal sequencing to the waste rock.

Market Studies

Price Forecast

Price forecast is based on a Platts62 CFR China price of US$ 165.64/dmt (September 1st, 2021), with a 25% V2O5 premium of US$ 45.64/dmt. Internal freight costs were estimated to be US$ 10.00/dmt and sea freight costs of US$ 20/dmt. GE21 used a flat long-term price starting in 2021 with a price of US$165,64 CFR China in the economic analysis (Base price of V2O5 - US$ 9.2/lb).

Table 1 8 - Composition of Concentrate Prices (FOB Mine Site)

Environmental Studies

CONAMA sets the conditions, limits and the control and use procedures for natural resources and permits implementation and operation of projects. Licenses are issued by either a federal, state or a municipal agency.

The National Environmental Council through resolution CONAMA 237/97 has established a three-stage licensing process for mining projects in Brazil:

·    Issuance of a Preliminary License (LP) at the planning stage of development. Obtainment of an LP requires approval by the relevant Environmental Authority of the project Environment Impact Assessment and Report (EIA-RIMA) and plan for the recovery of degraded areas (PRAD)

·    Issuance of an Installation License (LI), which authorizes construction according to specifications contained in the approved Environmental Impact Assessment (EIA) or Environmental Assessment (EA), as well as the Environmental Control Plan (PCA)

·    Issuance of the Operation License (LO). The LO is required to mine, process and selling of mineral substances, and is granted once the Environmental Authority has inspected the site and verified that construction was completed in keeping with all the requirements of the LI, and that the environmental control measures and other conditions of the LI have been satisfactorily implemented.

In Ceará State the environmental licensing or permitting is responsibility of SEMA - Secretaria do Meio Ambiente, which is the institution that regulates, approves, and issues environmental licenses (LP, LI and LO).

Capital and Operating Costs

The Preliminary Economic Assessment completed by GE21 on behalf of Jangada Mines during the first quarter of 2022, produced a Class 4 Capital Cost estimate as defined by AACE estimate classification system.

Class 4 estimate is usually carried out using indicated or measured resources defined by drilling confirmation of the mineralized zone(s). A preliminary geological model and detailed mine plan are required, including supporting pit optimization, geotechnical and hydro-geological studies, etc. The metallurgical test work should determine the probable process flow sheet and approximate material balance and identify the major equipment. Engineering would comprise at a minimum: general arrangement (GA) drawings, equipment lists for major equipment, nominal plant capacity, block schematics, and process flow diagrams (PFDs) for the main process systems.

The costs for the project include the capital expenditures (CAPEX) and the operational expenditures (OPEX). All costs are expressed in US Dollars at an exchange rate of US$ 1.00 = R$ 5.25.

Total CAPEX

The Capital Expenditure (CAPEX) estimated for the project was based on the following items:

·    Beneficiation Plant

·    Mine Infrastructure

·    Other Infrastructure

·    Working Capital

Table. 1 9 - Total Capex

Mine and Plant OPEX

The Project Operational Expenditures (OPEX) includes costs for mine and plant operations. The Mine OPEX was based on actual mining projects in Brazil with similar operation where the roads, climate, infrastructure and topography, haulage distances, load/haul costs, production scale and other features are similar to those envisaged for the Pitombeiras Project. The level of confidence is consistent with the current phase of the study.

Jangada provided the OPEX estimative of the processing plant. The estimation was based on a 600 ktpa processed ore. After evaluating the information provided by Jangada, GE21 considered the values acceptable to be presented in the report.

The average operating mining costs were estimated for outsourced mine operations.

Table. 1 10 - Mine and Plant Opex

Economic Analysis

An after-tax cash flow scenario was developed to evaluate the project based on economic-financial parameters, on the results of the mine scheduling and on the OPEX estimate that was presented above. Table. 1 11 presents the results of the Discounted Cash Flow for the Pitombeiras Project.

Table. 1 11 - Cash Flow Results

Qualified/Competent Person Review

The resource information in this announcement has been reviewed by Mr. Paulo Ilidio de Brito, who is a member of the Australian Institute of Geoscientists (MAIG #5173) and a member of AusIMM - The Australasian Institute of Mining and Metallurgy (MAusIMM #223453). Mr. Brito is a senior professional geologist with +35 years of experience in the mining industry, which is relevant to the style of mineralisation and type of deposit under consideration and to the activity which he has undertaken to qualify as a Competent Person as defined in the 2012 edition of the JORC Code. Mr. Brito also meets the requirements of a competent person under the AIM Note for Mining, Oil and Gas Companies. Mr. Brito has no economic, financial or pecuniary interest in the Company, and he consents to the inclusion in this document of the matters based on his technical information in the form and context in which it appears.

The 31 June 2021 updated Mineral Resource Estimate ("MRE") for the Pitombeiras Project has been prepared by Mr. Mauricio Prado, MSc. Geo., MAIG, Qualified Person as defined by NI 43-101 guidelines, independent geological consultant contracted by Jangada Mines Plc. Mr. Prado is an independent consultant based on Goiânia, Brazil.

The report, entitled "Technical Report - Pitombeiras Project, Ceará State, Brazil", having an effective date of January 31th of 2022, was prepared on behalf of Jangada Mines Plc by GE21 Ltda and authored by Porfírio Cabaleiro Rodriguez - BSc (Min Eng), FAIG, Leonardo de Moraes Soares - BSc (Geology), MAIG and Maurício Prado - MSc (Geology), MAIG.

**ENDS**

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