The information contained within this announcement is deemed by the Company to constitute inside information for the purposes of Regulation 11 of the Market Abuse (Amendment) (EU Exit) Regulations 2019/310. Upon the publication of this announcement via a Regulatory Information Service ("RIS"), this inside information is now considered to be in the public domain.

19 December 2024

Panthera Resources PLC

("Panthera" or the "Company")

Interim Results - Six months ended 30 September 2024

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 2024.

 Highlights

·      Total loss for the reporting period of $1,127,096 loss or $0.01 per share (2023: $1,010,983 loss or $0.01 per share) reflecting our ongoing commitment to our exploration activities during the period

·      Notice of Arbitration ("NoA") was submitted to India with arbitration panel subsequently constituted

·      At the Kalaka and Bido Projects, the Company completed successful drilling programmes

·      During and subsequent to the half year, the Company secured $1.5 million from the issue of equity and convertible notes

Mark Bolton, Managing Director of Panthera Resources, commented:

"During the half year, the Company has continued its focus on realizing value from its investment in the Bhukia Gold Project in Rajasthan, India.  Following unsuccessful negotiations with the Government of India, the Company has moved quickly to enforce its rights under the Australia-India bilateral investment treaty.  In July 2024, the Company submitted the NoA to India and more recently announced that the arbitration tribunal has been constituted as well as details of the first arbitral tribunal hearing. In 2025, the Company expects to settle the calendar for the arbitration proceedings including the lodgement of the statement of claim."

Contacts

Panthera Resources PLC

Mark Bolton (Managing Director)                                                                                      +61 411 220 942

                                                                                                                    contact@pantheraresources.com

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

John Depasquale / Vivek Bhardwaj (Corporate Finance)

Guy McDougall / Kelly Gardiner (Sales & Corporate Broking)

Novum Securities Limited (Joint Broker)                                                                +44 (0) 20 7399 9400

Colin Rowbury

VSA Capital Limited (Joint Broker)                                                                            +44 (0) 20 3005 5000

Andrew Monk / Andrew Raca

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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.

Interim results statement

Bhukia Project (India)

Background

The Bhukia project comprises legal rights that the Company holds via its Australian subsidiary, Indo Gold Pty Ltd ("IGPL"), in respect of an area that was the subject of a rejected Prospecting Licence Application in Rajasthan lodged by Metal Mining Pvt Ltd ("MMI"), a wholly owned subsidiary of IGPL. 

The Company made its initial investment in the Bhukia project (through IGPL) in or around 2004.  IGPL provided substantial funding and managed the joint venture exploration programmes. IGPL's right to be granted a Prospecting Licence over the Bhukia project, through its joint venture holding, was denied and frustrated over an extended period by the Government of Rajasthan ("GoR").  In 2021, India passed a new act ("MMDR2021") to amend the Mines and Minerals (Development and Regulation) Act of 2015 ("MMDR2015").  Under Clause 13 of the MMDR2021, the preferential right to a Prospecting Licence and a Mining Lease was revoked.

This and other measures of the GoR resulted in the total loss of IGPL's investment, whereby India breached the 1999 Agreement between the Government of Australia and the Government of India on the Promotion and Protection of Investments (the "Treaty"), including but not limited to, Article 3 (Promotion and Protection of Investments), Article 4 (Treatment of Investments) and Article 7 (Expropriation and Nationalisation). IGPL is now seeking damages from India.

Arbitration

On 27 September 2023, the Company announced that the High Court of Rajasthan ("HCR") had dismissed MMI's writ petition based on the recent the passing of the MMDR2021.  Following the decision by the HCR to dispose of MMI's legal proceedings, on 2 January 2024 the Company announced that its subsidiary, IGPL had issued a Notice of Dispute ("NoD") against India over the latter's breaches of its obligations under the Treaty.

As the parties did not reach an amicable settlement, on 26 July 2024, IGPL has delivered the NoA to the Government of India.

Under the Treaty, an arbitral tribunal comprising three members, including a Chair, is to be constituted. On 26 November 2024, the Company advised that the arbitration tribunal had been constituted.

The Company is aware that on 30 September 2023 the Times of India reported that, based on information from the Geological Survey of India and the Additional Chief Secretary of Mines, the gold deposit at the site could be worth over US$1 billion. This valuation has not been independently verified by the Company. The Company will in due course announce the actual quantum of damages that IGPL will claim from India. This quantum may differ from that reported by third parties, including but not limited to, the Times of India.

In addition, the Company notes that the preferred bidder in the auction process run by the GoR in early 2024 for the Bhukia-Jagpura block was selected with a 'Highest Final Price Offer' of 65.3%. In effect, the auction process binds the preferred bidder to a future payment schedule to the GoR of 65.3% of the gross value of gold (and other valuable metals) produced from any future mining operation over the life of mine. We also note that the GSI has reported a mineral resource of 7.2 Moz of gold with a calculated inground value of US$16.7 billion based on the closing gold price of US$2,329/ounce on 24 June 2024. In addition to the Highest Final Price Offer, an upfront payment and a performance security of approximately ₹1000 (~US$120 million) must be provided by the preferred bidder on or before the completion of the Auction.

Litigation Financing Facility

The Company has a US$13.6 million non-recourse litigation financing facility in place with LCM Funding SG Pty Ltd ("LCM Funding" or the "Funder") to support IGPL's claims against India arising from the Treaty. If no award and/or recovery are achieved, then LCM Funding is not entitled to any repayment of the Facility.

LCM Funding is a subsidiary of Litigation Capital Management Limited ("LCM"), a firm quoted on the AIM Market of the London Stock Exchange. LCM is a leading global disputes funder with significant expertise in international arbitration and cross-border disputes, including bilateral investment treaty claims over mineral resource assets.

If there is an award and/or recovery, LCM Funding shall be entitled, in the first instance, to the amounts it has deployed from the Facility, as well as the greater of:

a)     approximately US$1.36 million being 10% of the Funding Limit (which is the amount of the Facility);

b)    a Funder's commission (the "Commission") of between 5% and 15% of the damages recovered, based upon the number of years that have passed from the date of the Funding Confirmation Notice; or

c)     a multiple (the "Multiple") of between 2 and 4.25 times the total of the Facility, based upon the number of years that have passed from the date of the Funding Confirmation Notice.

If the settlement or award includes the value or benefit of any property other than cash, pursuant to the terms of the AFA, IGPL is required to realise and convert a portion of its interest in the property, or secure external finance, to secure sufficient cash and then apply it in accordance with the above.

West Africa Activities

During the half year the Company conducted drilling campaigns at the Bido and Kalaka Projects.

Bido (Burkina Faso)

The Bido permit in Burkina Faso is located on the Koudougou quadrangle some 125km WSW of the capital Ouagadougou. The tenement lies within the Boromo greenstone belt which also hosts the Poura gold deposit (1 to 2 Moz), situated about 50 km to the SSW of the area, as well as numerous gold occurrences.

The Company holds an 80% interest in the Bido Project and may acquire the remaining 20% by expenditure of a further US$1,000,000 on exploration and development within two years, subject to the vendor's rights of a buy-back right of 1% interest in the Bido Project for the price of US$1,000,000. A royalty will be payable to the vendor on all minerals produced calculated at the rate of 1% of the net smelter returns ("NSR") capped at US$3 million in total.

On 17 July 2024, the Company commenced a drilling programme at Bido with the results announced on 8 November 2024. Highlights of the drilling programme include:

·      Programme of 2,483 metres of RC drilling completed at Beredo-Kiekouyou and Somika Hill (Kaga vein system) prospects

·      At Somika Hill, significant intersections included:

BD24-RC-051        13 m to 27 m        (14 metres) @ 0.91 g/t Au; incl. 10 m @ 1.15 g/t from 17 m

BD24-RC-054        23 m to 35 m        (12 metres) @ 0.56 g/t Au

BD24-RC-057        19 m to 28 m        (9 metres) @ 0.79 g/t Au; incl. 6 m @ 1.0 g/t from 19 m

·      At Beredo-Kiekouyou prospect, significant intersections included:

BD24-RC-004        2m to 4m               (2 metres) at 4.45g/t Au

BD24-RC-034        17 m to 20 m        (3 metres) @ 1.17 g/t Au

BD24-RC-043        48 m to 53 m        (5 metres) @ 1.79 g/t Au

BD24-RC-044        64 m to 66 m        (2 metres) @ 2.16 g/t Au

Kalaka Project (Mali)

The Kalaka Project is in southeast Mali, between Morila and Syama gold mines and is approximately 260 km southeast of Bamako. It lies approximately 80 km south of the Morila gold mine (8m oz) and 85 km northwest of Resolute's Syama gold mine (6m oz) and is situated adjacent and to the east of the regional Banifin Shear Zone.

In the previous financial year, Panthera acquired DFR's interest in Maniger Limited, the entity that holds an 80% interest in Kalaka. The remaining 20% interest is owned by a local partner, Golden Spear Mali SARL ("GSM"). Panthera is the operator of the project.

On 6 June 2024, the Company announced it had further restructured the joint venture agreements with GSM over the Kalaka and Bassala gold projects in Mali.

Under the new JV agreements, Panthera's interest in the Kalaka and the Bassala Projects has increased from 80% to 85% respectively with the remaining 15% interest continuing to be owned by our local partner, GSM. Furthermore, GSM will be entitled to a 'carry' of costs by Panthera until the commencement of construction for the commercial development of mining operations.  Any carry amount outstanding is to be repaid to the Company from profits distributed from the future mining operations.  GSM is required to contribute its share of the development costs or dilute its interest in the joint venture.

On 13 June 2024, the Company announced the results of bottle roll metallurgical tests on samples of crushed diamond drill core.

·      These test results showed recoveries between 67% and 88%, a positive result for the coarse size tested (minus 10mm);

·      All samples tested show relatively fast cyanide leaching with most gold extracted within 12 hours of leaching; and

·      The initial tests show an ore amenable to simple cyanide leaching and build on previous encouraging Leachwell analysis which also returned positive cyanide extractable gold recovery results.

On 9 July 2024, the Company commenced a diamond drilling programme at Kalaka with the results announced on 8 November 2024. Highlights of the drilling programme include:

·      drilling three diamond core holes for 755.95m to twin the historical drill holes K1AD001 and K1RC003 to verify the historical drill results;

·      755.95 metres of diamond core drilling completed;

·      Significant wide intersections returned;

KDD-24-001          71m to 106m (EOH)             (35 metres) @ 0.54 g/t Au

KDD-24-002          58m to 322m                        (264 metres) @ 0.38 g/t Au

KDD-24-003          50.3m to 289m                     (238.7 metres) @ 0.49 g/t Au

·      Drilling has confirmed that the Kalaka K1A prospect is at least 150 metres wide (true width) and now drilled to 240 metres vertical depth.

Events Post Balance Date

In November 2024, the Company arranged for the issue of unsecured convertible loan notes ("CLNs") to raise approximately US$250,000. The CLNs have a term until 31 January 2025, are unsecured and carry simple, non-compounded interest at a rate of 10% per annum. The CLNs are convertible into new ordinary shares of 1 pence each in the Company ("Ordinary Shares") at the price of 5.5 pence per new Ordinary Share and are convertible at the option of the holder from the date of issuance. However, unless otherwise agreed, the CLNs will automatically convert into new Ordinary Shares on 31 January 2025, subject to the requirements for an application being made to the London Stock Exchange Plc for admission of the new Ordinary Shares to trading on AIM. Until any such conversion, the Convertible Loan Notes do not give the holder voting rights over Ordinary Shares.

In November 2024, the Company received its assay results for the drilling programmes completed at the Kalaka Project in Mali and the Bido Project in Burkina Faso.

In November 2024, a Chair was appointed with the arbitral tribunal panel now fully constituted, following the delivery of the NoA in relation to the Bhukia Project in July 2024.

In December 2024, the Company announced that the initial tribunal hearing was held. Amongst other matters, the hearing considered the procedural timetable inclusive of submissions and hearing(s) and the legal place or seat of the arbitration together with the physical location for in-person hearings.

Panthera Resources PLC

Unaudited Interim Financial Information for the period ended

 30 September 2024

Set out below are the unaudited result of the group for the six months to 30 September 2024.