24 December 2021

Panthera Resources PLC

(Panthera or the Company)

Interim Results - Six months ended 30 September 2021

Panthera Resources PLC (AIM: PAT), the gold exploration and development company with key assets in West Africa and India, is pleased to announce its unaudited interim results for the half-year ended 30 September 2021.

Highlights

·           Total loss for the reporting period of $1,943,501 or $0.02 per share, reflecting a substantial expansion of our exploration activities during the period as compared to the previous corresponding period profit of $2,224,437 or $0.03 per share

·           Moydow completed a 4,739 metre RC drilling campaign at Labola culminating in the release of a maiden mineral resource estimate (MRE) of 635,000 Au ounces in accordance with National Instrument 43-101 ("NI 43-101")

·           Completed an Induced Polarisation (IP) survey of 135 line kilometres at the Bassala Project which identified 23 targets

·           Drill tested 13 of the 23 targets at Bassala including 164 air-core (AC) drill holes for 9,997 metres. In addition, 4 reverse circulation (RC) drill holes, were completed for 392 metres

·           Moydow completed an IP survey of 150 line kilometres at the Kalaka Project which identified a further 10 new targets

·           Entered an agreement with Diamond Fields Resources Inc (DFR) to restructure its ownership interests in Moydow Holdings Limited ("Moydow") and provide up to US$18 million in funding for the Labola Project

·           Continued to pursue the grant of the Prospecting Licence over the Bhukia project through both commercial resolution and the legal proceedings ongoing in the High Court of Rajasthan (Court). 

Events Post Balance Date

·           In November 2021, Moydow completed 94 AC drill holes for 2,437 metres.  Five targets were tested with a further two partially tested with assay results now expected on or around early January 2022.

·           In December 2021, drilling has re-commenced at the Bassala project focusing on the remaining targets that include the most intense artisanal workings in the project area as well as testing extensions to the more significant drilling results from earlier in the year

·           Acquired Metal Mining India Private Limited ("MMI"), the Company's joint venture ("JV") partner in India, in respect of the Bhukia project

·           In November 2021, the Company has completed an equity capital raising of £1,000,000 at 10 pence per share

Mark Bolton, Managing Director of Panthera Resources, commented:

"The year to date has been one marked by a considerable increase in field activity where the Company has focussed on delivering on its promises, particularly on our extensive West African assets.  Our initial investment at the Bassala and Kalaka projects have delivered exceptional drill targets which we have now proceeded to drill with very encouraging results reported to date.

At Labola, Moydow has delivered their initial drilling programme and reported a maiden mineral resource of 635,000 ounces of gold.

With the initial Kalaka drilling programme now complete and the Bassala drilling underway, we can look forward to an exciting few weeks ahead of the assays.

In 2022 and upon the completion of the Moydow restructure, we look forward to a significant drilling programme at Labola and material expansion in the mineral resource estimate."

Project Activities

Labola (Burkina Faso)

During the period, Moydow completed a 4,739 metre RC drilling campaign at Labola culminating in the release of a maiden mineral resource estimate ("MRE") in accordance with National Instrument 43-101 ("NI 43-101").

The RC drilling programme comprised two parts: first, confirmatory "twin" drilling (24 holes, including one re-drill, for 3,804 metres) focused on the two better-defined zones of gold mineralisation identified by previous explorers; and second, exploration (5 holes, including one re-drill, for 721 metres) and infill (2 holes for 214 metres) drilling in two areas with no previous drilling, targeted to identify additional mineralisation.  The results of the exploration drilling along strike of known mineralisation have returned excellent results including fire assay intercepts of:

·           4m @ 19.7g/t Au from 92m

·           3m @ 3.46g/t Au from 48m followed by 4m @ 3.09g/t Au from 57m

The MRE has been prepared using gold assay data with top-caps applied to grades in a fairly standard grade ordinary kriged estimation.  Assay data for historical holes that had been twinned were removed and replaced with the new drill data, but estimates were also cross-checked with just the old data, with very similar results.  This provided significant confidence in the historical data.  The validation included visual and statistical evaluations and was considered to be good.  Classification of the maiden MRE was based on the guidelines of the CIM and NI 43-101 to define Indicated and Inferred Resources for the project.

Mineral Resource for the Labola Gold Project, October 2021*

(Cut-off grade of 0.50 g/t Au)

Additional Mineral Resource Estimate Disclosures*

1.         Contained metal and tonnes figures in totals may differ due to rounding.

2.         Mineral Resources, which are not Mineral Reserves, do not have demonstrated economic viability. The estimate of Mineral Resources may be materially affected by environmental, permitting, legal, marketing, or other relevant issues. The Mineral Resources in this note were reported using CIM (2014) Standards on Mineral Resources and Reserves, Definitions and Guidelines and adopted by CIM Council.

3.         ^ The quantity and grade of reported Inferred Resources in this estimation are uncertain in nature and there has been insufficient exploration to define this Inferred Resource as an Indicated or Measured Mineral Resource. It is uncertain if further exploration will result in upgrading the Inferred Resource to an Indicated or Measured Mineral Resource category.

4.         The Mineral Resource has been constrained by an open pit evaluation using a gold price of US$1,900 per ounce, and then reported at a cut-off of 0.5 g/t Au.

5.         Contained metal and tonnes figures in totals may differ due to rounding.

6.         Moydow has estimated the amount of the resource that has been depleted by artisanal mining to be approximately 341,000 tonnes at 3 g/t Au.  The quantity of mined material has been calculated from estimates of dump and leach pad volumes. The grade of the material mined has been estimated in the range of 1.5-3.0 g/t and is based on an evaluation of extensive rock chip, channel sampling of artisanal workings and selective sampling of adjacent dumps. The location of where the material has been mined from is not known with any degree of accuracy. As such, artisanal mining has not been deducted from the Mineral Resource but noted here for reference.

Three mineralised zones have been outlined from the various drilling programs and each zone is open in all directions.  Extensive target generative work demonstrates many opportunities for resource expansion which include: extensions to the current pit constrained resources; zones with only widely spaced drilling; extensions of known mineralised zones with no drilling; untested artisanal sites and potentially new mineralised zones.

Preliminary metallurgical results from historical metallurgical samples, supported by extensive LeachWELL data from Moydow drilling samples, indicate that gold is readily treatable by conventional cyanide leaching techniques. 

A significant exploration program is planned for 2022 that will focus on resource expansion opportunities to produce an updated MRE and completion of a Preliminary Economic Assessment ("PEA").  

Bassala Project (Mali)

An IP survey of 135 line kilometres was completed at the Bassala Project which identified 23 targets for follow up drill testing.  In July 2021, 13 of the 23 targets were drill tested by 164 air-core (AC) drill holes for 9,997 metres. In addition, 4 reverse circulation (RC) drill holes, were completed for 392 metres.

That drilling identified widespread gold mineralisation in very widely spaced drill traverses with better intercepts from the 5m composite sampling including:

•              20m @ 2.12g/t Au from 10m incl. 10m @ 3.79g/t Au from 20m

•              10m @ 3.45g/t Au from 60m incl. 6m @ 6.59g/t Au from 60m

•              5m @ 5.10g/t Au from 15m

•              5m @ 2.75g/t Au from 55m

•              45m @ 0.57g/t Au from 25m incl. 5m @ 2.53g/t Au from 40m

•              30m @ 0.88g/t Au from 20m incl. 5m @ 3.18g/t Au from 20m

•              20m @ 0.75g/t Au from 15m incl. 5m @ 1.92g/t Au from 15m

•              10m @ 0.96g/t Au from 35m incl. 5m @ 1.44g/t Au from 35m

•              25m @ 0.51g/t Au from 15m incl. 5m @ 2.07g/t Au from 20m

•              5m @ 1.98g/t Au from 40m

•              6m @ 1.59g/t Au from 70m (end of hole)

•              5m @ 1.41g/t Au from 35m (end of hole)

In December 2021, drilling has re-commenced at the Bassala project focusing on the remaining targets that include the most intense artisanal workings in the project area as well as testing extensions to the more significant drilling results from earlier in the year.

Kalaka Project (Mali)

During the period, Moydow completed an expanded 150 line kilometre IP survey at the Kalaka Project in Mali.  The survey has enhanced the definition of existing targets as well as identified several additional targets.  The largest anomalies exceed 4km in strike length with many chargeability highs associated with geochemical anomalies and artisanal mining activity.

The previous IP survey, in early 2021, delineated several high order chargeability anomalies.  One of these, the K1A gold prospect, has been drilled by previous explorers and is coincident with disseminated sulphides that represent the alteration system associated with a large, low-grade gold deposit with drill intercepts including: 

•              249.3m @ 0.54g/t Au from 52m (to end of hole) including 8m @ 3.17g/t Au from 107m

•              191.8m @ 0.52g/t Au (to end of hole)

•              176.4m @ 0.49g/t Au from 24m (to end of hole)

The chargeability highs are all considered to be excellent exploration targets.  Several of the IP anomalies have higher chargeability responses than those seen at the K1A prospect, suggesting a higher sulphide content and hence possibly more intense alteration.  One target in the far south is high order and is close to a zone of extensive artisanal workings targeting the base of laterite.  It is interpreted that the workings are targeting slightly transported gold mineralisation shedding from mineralisation directly associated with the chargeability high.

Subsequent to the end of the period, Moydow completed a 94 AC drill hole programme for 2,437 metres.  Five targets were tested with a further two partially tested.  Strong iron oxide after sulphides (box works), quartz veining and shearing has been logged in the target zones.  The samples have been submitted to the laboratory with assay results expected in late December 2021

Bido (Burkina Faso)

The Bido project, previously referred to as the Naton Project and comprising the same area as the latter, was granted in October 2020 with the support of the Ministry of Mines of Burkina Faso and our joint venture partner.

Subsequent to the grant of the Licence, a regional gold-in-soil sampling programme consisting of 1,166 samples at 200m x 50m spacing was completed over all areas considered suitable for surface sampling.  This returned numerous moderate to high order gold in soil anomalies, with several samples returning over 1,000ppb (1g/t) Au:

·    26,500ppb Au (22.6g/t Au)

·    16,700ppb Au (16.7g/t Au)

·    4,150ppb Au (4.15g/t Au)

·    3,720ppb Au (3.72g/t Au)

·    3,060ppb Au (3.06g/t Au)

·    2,100ppb Au (2.1g/t Au)

These are extremely high for gold in soil samples and are interpreted as reflecting the residual nature of the soil profile and the common occurrence of nuggety gold in the region.  One of the modus operandi of the local artisanal miners is the use of metal detectors which prove to be very useful for locating the coarse gold nuggets.

However, these high-grade samples are located in areas that have not as yet been targeted by the artisanal miners, indicating significant untested exploration potential.  Interestingly, while the new artisanal gold rush at the Tiekouyou Rush prospect shows anomalous gold in soil, much higher values and more consistent anomalies are noted elsewhere.

While conducting the soil sampling programme, it was noted that a "gold-rush" had commenced in the centre of the area, with several hundred artisanal miners concentrating on an area of about 170m x 170m (Tiekouyou Rush).  The miners are currently obtaining gold from eluvium, quartz veins and altered host rock consisting of dolerite, diorite and metavolcanics. 

In addition, during this sampling, an area of quartz veining was identified in the northeast of the planned survey area (Beredo Target).  The zone appears to extend in a north-northeast direction trending from the area of proposed soil sampling.  In light of this, a re-evaluation of the Beredo area, immediately to the north of the proposed sampling area, was undertaken.  This highlighted numerous rock chip samples that have returned significant gold mineralisation, with twenty-eight of sixty samples assaying over 0.5g/t Au (average 4.7g/t Au) with some very high grades returned including 17.3g/t, 11.1g/t, 8.91g/t, 8.38g/t and 8.21g/t Au.  These are generally from quartz veins with evidence of box works after sulphides and tourmaline alteration.  Significantly, several of these have not been targeted by artisanal miners to date.

As part of a general re-evaluation of the entire area, the previous drilling undertaken at the Kwademen prospect has also been re-examined.  It is apparent that the previous drilling was very broadly spaced (~200m to 300m line spacing) and perhaps inaccurately located, nevertheless still returned significant gold mineralisation including:

·           16m @ 1.07g/t Au from 69m

·           10.4m @ 2.14g/t Au from 191m

·           23m @ 1.53g/t Au from 143m

·           2.25m @ 7.74g/t Au from 155.8m

·           1.45m @ 16.0g/t Au from 52m

·           1m @ 40.0g/t Au from 90m

It is apparent that this was targeting an area to the west of the main soil anomaly defined by Panthera's previous soil sampling.  This anomaly is also the focus of intense artisanal workings and is thus considered to be an excellent, poorly tested drill target.

After this work, a local company objected to the grant of the Bido licence to the Mines Department.  This objection was dismissed but is subject to an appeal.  As such, Panthera has suspended all work on the project until this appeal has been dealt with by the courts.  Our advice is that the appeal has a very low chance of succeeding but Panthera is being cautious and will not recommence work until the process has run its course.

Paimasa (Nigeria)

Drilling was completed at Paimasa in January 2021.  Two Diamond Core holes (294 metres) and 17 Reverse Circulation holes (1,369 metres) were completed for an aggregate of 1,663 metres.

Logging has identified 4 generations of veining, the third generation consisting of quartz-tourmaline veins and veinlets.  These are targeted by the local artisanal miners and are often auriferous.  While a lot of quartz veining was intersected, panning of RC cuttings yielded visible gold grains over only limited intervals suggesting that not all of the quartz is carrying significant gold mineralisation.

Fire Assays were completed on 914 individual samples,  536 of which represented one metre intervals. The remaining 378 samples were 3 metre composited reverse circulation samples (3 x 1m intervals).

Significant results include:

·           PM93RCH-007        66-69 metres, 3 metres at 1.06g/t

·           PM93RCH-014        48-54 metres, 6 metres at 3.16g/t including 48-49 metres, 1 metre at 15.5g/t and
                                   67-76 metres, 9 metres at 1.24g/t

·           PM93RCH-013        73-82 metres, 9 metres at 0.28g/t

Twenty-five samples were despatched to SGS laboratory in Tarkwa in March for bottle roll confirmation.  These returned similar grades to the original fire assay results.

Dagma (Nigeria)

A significant "gold rush" consisting of hundreds of artisanal miners was noted in this licence during mid-2021.  Nuggets over 200g in size have been found.  The area of mining is to the west of the area of pits and quartz veining previously drill tested by Moydow.  Soil sampling has recently been completed over this area and its southern extensions and, while gold results are not yet to hand, a significant copper in soil anomaly has been identified associated with the workings and their extensions.  IP surveying is proposed as the next step, designed to identify sulphides below the anomaly.

A new licence has recently been granted immediately south of Dagma, covering the southern continuation of the artisanal mining areas.

Bhukia Project (India)

The Company continued its efforts to secure an amicable outcome with the Government of Rajasthan (GoR). In parallel, the Company has continued to seek the enforcement of its rights through the High Court of Rajasthan. 

The Company made its initial investment in Bhukia, through its 95% owned Australian subsidiary, Indo Gold Pty Limited (IGPL), in 2005.  The Company's rights to be granted a Prospecting Licence over Bhukia, through its joint venture partner, have been consistently frustrated over an extended period by the Government of Rajasthan (GoR).  More recently, the Prospecting Licence Application over Bhukia was again rejected by the GoR in August 2018 on various spurious and legally untenable grounds.  The Company subsequently obtained an interim Stay Order from the Hon'ble Rajasthan High Court which remains in place subject to ongoing proceedings there.

During the period the Government of India has passed a new act (MMDR2021) to amend the Mines and Minerals (Development and Regulation) Act of 2015 (MMDR2015).  Under Clause 13 of the MMDR2021, any pending PLAs have lapsed, therefore, potentially impacting the Company's rights to the Bhukia and Taregaon projects.  Furthermore, under Clause 13, the holder of a reconnaissance permit or prospecting licence whose rights lapsed shall be reimbursed the expenditure incurred towards reconnaissance or prospecting operations in such manner as may be prescribed by the GoI.  This expenditure on account of reimbursement may increase in case any foreign investor invokes Bilateral Investment Promotion and Protection Agreements executed between India and other countries.

On 18 February 2021, the Company announced that it had appointed Fasken to advise the Company on a potential dispute with the Republic of India concerning the Bhukia Joint Venture Project (Bhukia).  Specifically, Fasken is advising the Company on its potential dispute under the Australia-India Bilateral Investment Treaty of 26 February 1999 (AIBIT) in relation to Bhukia, which includes past, present and any future acts and/or omissions by India and its state entities and actors.

Subsequent to the end of the period, the Company acquired Metal Mining India Private Limited ("MMI"), the Company's joint venture ("JV") partner in India, in respect of the Bhukia project.  Accordingly, the ownership interest in the Bhukia project in India, via IGPL, will increase to 100% (giving Panthera a 95% relevant interest) if the Bhukia prospecting licence (PL) is granted in the future.  The Company continues to engage with a potential new joint venture partner and secure its rights to the Bhukia project.

IGPL has also secured cooperation from the former MMI shareholders in relation to a potential claim under the AIBIT together with their rights to bring a claim under the AIBIT.  Fasken, Panthera's AIBIT legal adviser, advises that a potential claim under the AIBIT has legal merit.  The Company continues to engage with several potential litigation funders to support a potential claim under the AIBIT.

Diamond Fields Transaction

In August 2021, Panthera announced that it has entered into agreements to restructure its ownership interests in Moydow and underlying assets (together the "Proposed Transaction").  Upon completion, the Proposed Transaction will result in:

•              US$18 million farm-out agreement on Labola Project with DFR;

•              Spin-out of Kalaka and Nigeria projects from Moydow into a new entity ("Maniger"); and

•              Panthera secures 50% interest and operatorship of Maniger

The Proposed Transaction with DFR provides significant finance to progress the Labola Project to the next stage, primarily the bankable feasibility study.  Panthera's significant ongoing interest in Labola of up to 30% ensures that the Company will benefit from any success, while not diluting shareholders' exposure to the Company's other assets including Bassala, Bido and India.  The 'spin out' of the Kalaka and Nigeria projects into Maniger preserves our interest in Kalaka independent of Labola.

In summary, the DFR transaction secures significant multi-year financing for Labola, ameliorates potential concentration of risk and maximises shareholder exposure to the growth opportunity from our wider asset portfolio.

Funding

Based on current expenditure levels, all funds will be used within the next 6 months. The Group's ability to continue as a going concern is dependent upon raising additional capital.

Panthera Resources PLC
Unaudited Interim Financial Information for the period ended

 30 September 2021

Set out below are the unaudited result of the Group for the six months to 30 September 2021.

Group Statement of comprehensive income

For the six months ended 30 September 2021

Group Statement of financial position

As at 30 September 2021

Group Statement of changes of equity

For the six months ended 30 September 2021

Group Statement of cash flows

For the six months ended 30 September 2021

NOTES TO THE FINANCIAL STATEMENTS

Contacts

Panthera Resources PLC

Mark Bolton (Managing Director)                                                                                      +61 411 220 942

                                                                                                                    contact@pantheraresources.com

Allenby Capital Limited (Nominated Adviser & Broker)                                       +44 (0) 20 3328 5656

John Depasquale / Vivek Bhardwaj (Corporate Finance)                                                                             

Financial Public Relations

Vigo Consulting Ltd                                                                                                        +44 (0)20 7390 0230

Oliver Clark / Chris McMahon

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Qualified Person

The technical information contained in this disclosure has been read and approved by Antony Truelove (BSc (Hon), MAusIMM, MAIG), who is a qualified geologist and acts as the Competent Person under the AIM Rules - Note for Mining and Oil & Gas Companies.  Antony Truelove is the COO of Panthera Resources PLC.

Forward-looking Statements

This news release contains forward-looking statements that are based on the Company's current expectations and estimates. Forward-looking statements are frequently characterised by words such as "plan", "expect", "project", "intend", "believe", "anticipate", "estimate", "suggest", "indicate" and other similar words or statements that certain events or conditions "may" or "will" occur. Such forward-looking statements involve known and unknown risks, uncertainties, and other factors that could cause actual events or results to differ materially from estimated or anticipated events or results implied or expressed in such forward-looking statements. Such factors include, among others: the actual results of current exploration activities; conclusions of economic evaluations; changes in project parameters as plans continue to be refined; possible variations in ore grade or recovery rates; accidents, labour disputes, and other risks of the mining industry; delays in obtaining governmental approvals or financing; and fluctuations in metal prices. There may be other factors that cause actions, events, or results not to be as anticipated, estimated, or intended. Any forward-looking statement speaks only as of the date on which it is made and, except as may be required by applicable securities laws, the Company disclaims any intent or obligation to update any forward-looking statement, whether as a result of new information, future events, or results or otherwise. Forward-looking statements are not guarantees of future performance and accordingly, undue reliance should not be put on such statements due to the inherent uncertainty therein.

**ENDS**