15 December 2021

Tungsten West Plc

("Tungsten West", the "Company" or the "Group")

Commissioning of Aggregates Plant

Tungsten West, the mining Company focussed on recommencing production at the Hemerdon tungsten and tin mine ("Hemerdon" or the "Project") in Devon, England, is pleased to announce that its temporary aggregates plant has been commissioned. The newly installed Terex® AggWash 60 plant was commissioned at the end of November and will operate whilst the Hemerdon process plant is redeveloped and a separate full-scale aggregates plant is built. Aggregates produced at Hemerdon are a by-product of the metalliferous mining process and due to technical innovation planned at the upgraded Hemerdon process plant, now represent a secondary cash-flow opportunity as well as assisting the Company in its 'no-waste' target for the Project.

Aggregates West, a wholly owned subsidiary of Tungsten West, is currently selling an average of 1,000 tonnes per day through its partnership with GRS (Roadstone) Limited ("GRS"), a market leading construction materials supplier, into the UK construction sector. As announced in September 2021, Tungsten West has formed a mutually beneficial partnership with GRS in order to vertically integrate the Company into the UK aggregate supply chain. The materials supplied from Hemerdon are sustainably produced and will aid the country in meeting the demand for aggregate material while becoming more self-sufficient. The Company will progressively scale its aggregate operations until the full-scale aggregates plant is commissioned in 2022.

Key Highlights

·      Cash flow is being generated via the sale of aggregates, which have been produced through processing stockpiles left by Wolf Minerals (UK) Limited, the previous operator of Hemerdon

·      Cash flow is forecasted to progressively increase as the Company builds market share and product is introduced to the wider UK construction sector. Aggregate production is expected to scale in line with ramp up of the Project's mining operations

·      Introduction of X-ray transmission ore-sorting to the Hemerdon processing plant will substantially reduce processing costs by rejecting the non-tungsten and non-tin bearing ore, making up approximately 70% of the total ore mined. This by product is high quality aggregate feed and will be processed into market ready aggregates

·      Aggregates West is a wholly owned subsidiary of Tungsten West representing the sustainable use of the by-products from metalliferous mining  

·      Tungsten West's partnership with GRS, a UK leading construction materials supplier, will guarantee a long-lasting supply of aggregates to manufacturers, ensuring the UK is increasingly self-sufficient

·      Material compliance already successful following close collaboration with regulatory bodies to ensure the highest ESG credentials for construction products

Hemerdon was in operation between 2015-2018 and hosts a world class ore body, representing the third largest tungsten resource globally. Through technical innovation, Tungsten West will introduce X-ray transmission ore-sorting to its upgraded processing plant, which will substantially reduce processing cost by efficiently rejecting the non-ore bearing material, representing 70% of the ore fed to the sorters. The rejects, or by-products, will be processed further into market ready, UK aggregate manufacturer certified aggregate products, commonly used in the creation of concrete, ballast, asphalt and the wider construction sector. Tungsten West has partnered with GRS in a deal that will see a greater proportion of sustainable construction material enter the UK market and create important cash flow and local job opportunities.

Tungsten West are due to release its interim financial report and accounts for the six months ended 30 September 2021 on December 21 2021.

Max Denning, CEO of Tungsten West, commented:

"The aggregates business will be an important secondary cash flow generating operation at Hemerdon that importantly will utilise surplus material from our mining operation. The temporary operation will allow Tungsten West to build market share and demonstrate the quality of our aggregate material and, once in full scale operation, we will be one of the first mining companies in the world to implement the dual production and sale of tungsten and tin, together with aggregate product.

"Through our partnership with GRS, we will have the ability to meet growing market demand for aggregate material in the UK, aiding the country in becoming more self-sufficient. By working closely with environmental bodies and Devon council, we have ensured that our operations meet the highest ESG standards. We look forward to updating the market further on our progress as we move towards the formal restart of Hemerdon and scaling our aggregates business."

Enquiries

Further information on Tungsten West Limited can be found at www.tungstenwest.com

Overview of Tungsten West

Tungsten West is the 100 per cent. owner and operator of the past producing Hemerdon tungsten and tin mine, located near Plymouth in southern Devon, England. The Hemerdon mine is currently the world's third largest tungsten resource, with a JORC (2012) compliant Mineral Resource Estimate of approximately 325Mt at 0.12 per cent. WO₃. The Company acquired the mine out of a receivership process in 2019 after its most recent operators, Wolf Minerals, stopped production in 2018. While it was operator, Wolf invested over £170 million into the development of the site, the development of significant infrastructure and processing facilities. Hemerdon was producing tungsten and tin materials, under Wolf, between 2015 and 2018, before the Company entered administration and placed the mine into receivership due to a number of issues that have since been identified and rectified by Tungsten West.

The Company is focussed on updating the existing infrastructure and, in the near-term, restarting the Hemerdon mine at a low cost. Following the restart, Hemerdon is expected to produce significant volumes of tungsten and tin, both of which are strategically important materials, particularly in the development of new technology.