Premier African Minerals Limited / Ticker: PREM / Index: AIM / Sector: Mining

For immediate release

25 August 2023

Premier African Minerals Limited

Funding of Zulu Project

The Board of Premier African Minerals Limited ("Premier" or the "Company") is pleased to announce a placing and subscription today to raise £4,000,000 before expenses at an issue price of 0.35 pence per new ordinary share for the ongoing Zulu Lithium and Tantalum Project ("Zulu") Pilot Optimisation where the Company is targeting revenue generating production by November 2023.

George Roach, CEO commented: "Based on current projections this funding and the arrangements set out below is expected to see Zulu pass through the current interim remedial situation and allow the Company to reach target nameplate production at Zulu. 

I am appreciative of the support from our investors and from our Contractors who effectively are making their own statement of confidence going forward with this investment."

Contractor Settlement

The two biggest costs associated with Zulu ongoing development are in respect of the open pit mining contractor, JR Goddard Contracting (Pvt) Ltd and the Zulu design, procurement, installation, and commissioning contractor, Stark International Projects Limited (collectively the "Contractors"), who have now both agreed to collectively accept payment of a limited number of future invoices until the end of December 2023 ("Term") in new ordinary shares of the Company at the closing middle market price on the day prior to settlement ("Settlement Shares").

Placing

Premier has today issued by way of a placing and direct subscription ("Placing"), conditional on admission, 1,142,857,143 new ordinary shares of nil par value ("Placing Shares") at a Placing price of 0.35 pence per Placing Share. The Placing Shares will, when issued, rank pari passu in all respects with the existing ordinary shares. The placing was undertaken by CMC Markets UK Plc ("CMC Markets") acting as the Company's sole placing agent in respect of the Placing, and the direct institutional subscription was arranged by Fox-Davies Capital Limited.

For further details about CMC Markets UK Plc including their CMC CapX platform please visit https://www.cmcmarkets.com/capx.

Application will be made for the Placing Shares to be admitted to trading on AIM and admission is expected to take place on or around 31 August 2023.

The Placing has been arranged within the Company's existing share authorities. Premier intends to use the proceeds of the placing principally to assist with the ongoing optimisation of the plant at Zulu and general working capital. In particular, Premier anticipates using the proceeds to meet the costs associated with the interim mill installation and associated thickener that is expected to collectively increase production to approximately 50% of design capacity from October 2023, ongoing pit development to clear the weathered zone, and general operational costs to cover the current interim period until the end November when first revenues are anticipated at Zulu.

Total Voting Rights

Following the issue of the Placing Shares, the Company's issued share capital consists of 23,978,906,266 Ordinary Shares, with voting rights. This figure may be used by shareholders in the Company as the denominator for the calculation by which they will determine if they are required to notify their interest in, or a change to their interest in, the share capital of the Company under the Financial Conduct Authority's Disclosure and Transparency Rules.

The information contained within this announcement is deemed by the Company to constitute inside information as stipulated under the Market Abuse Regulations (EU) No. 596/2014 as it forms part of UK Domestic Law by virtue of the European Union (Withdrawal) Act 2018 ("UK MAR").

The person who arranged the release of this announcement on behalf of the Company was George Roach.

A copy of this announcement is available at the Company's website, www.premierafricanminerals.com

Enquiries:

Important notice

Beaumont Cornish Limited ("Beaumont Cornish"), which is authorised and regulated in the United Kingdom by the Financial Conduct Authority, is acting as nominated adviser to the Company in connection with the Placing and Subscription and will not regard any other person as its client and will not be responsible to anyone else for providing the protections afforded to the clients of Beaumont Cornish or for providing advice in relation to such proposals. Beaumont Cornish has not authorised the contents of, or any part of, this document and no liability whatsoever is accepted by Beaumont Cornish for the accuracy of any information or opinions contained in this document or for the omission of any information. Beaumont Cornish as nominated adviser to the Company owes certain responsibilities to the London Stock Exchange which are not owed to the Company, the Directors, Shareholders or any other person.

Forward Looking Statements

Certain statements in this announcement are or may be deemed to be forward looking statements. Forward looking statements are identified by their use of terms and phrases such as ''believe'' ''could'' "should" ''envisage'' ''estimate'' ''intend'' ''may'' ''plan'' ''will'' or the negative of those variations or comparable expressions including references to assumptions. These forward-looking statements are not based on historical facts but rather on the Directors' current expectations and assumptions regarding the Company's future growth results of operations performance future capital and other expenditures (including the amount. Nature and sources of funding thereof) competitive advantages business prospects and opportunities. Such forward looking statements reflect the Directors' current beliefs and assumptions and are based on information currently available to the Directors. A number of factors could cause actual results to differ materially from the results discussed in the forward-looking statements including risks associated with vulnerability to general economic and business conditions competition environmental and other regulatory changes actions by governmental authorities the availability of capital markets reliance on key personnel uninsured and underinsured losses and other factors many of which are beyond the control of the Company. Although any forward-looking statements contained in this announcement are based upon what the Directors believe to be reasonable assumptions. The Company cannot assure investors that actual results will be consistent with such forward looking statements.

Notes to Editors:

Premier African Minerals Limited (AIM: PREM) is a multi-commodity mining and natural resource development company focused on Southern Africa with its RHA Tungsten and Zulu Lithium projects in Zimbabwe.

The Company has a diverse portfolio of projects, which include tungsten, rare earth elements, lithium and tantalum in Zimbabwe and lithium and gold in Mozambique, encompassing brownfield projects with near-term production potential to grass-roots exploration. The Company has accepted a share offer by Vortex Limited ("Vortex") for the exchange of Premier's entire 4.8% interest in Circum Minerals Limited ("Circum"), the owners of the Danakil Potash Project in Ethiopia, for a 13.1% interest in the enlarged share capital of Vortex. Vortex has an interest of 36.7% in Circum.

In addition, the Company holds a 19% interest in MN Holdings Limited, the operator of the Otjozondu Manganese Mining Project in Namibia.

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