13 September 2021

URU Metals Limited

("URU" or "the Company")

 Zeb Nickel Corp to commence drilling at the Zebediela Project ("Zebediela" or the "Project")

Focus will be on upgrading of the historical resource and simultaneous exploration for higher grade footwall nickel sulphide mineralisation

URU is pleased to announce that ZEB Nickel Corp (TSX-V:ZBNI) ("ZEB") has confirmed it will shortly be commencing geological exploration drilling  at the Zebediela Project, targeting high grade nickel-sulphide mineralisation to the east of the existing Zebediela historical nickel-sulphide resource.

To view the full Zeb Nickel Corp announcement visit www.zebnickel.com or www.sedar.com.

PROJECT HIGHLIGHTS

·      8^th largest known sulphide nickel resource globally

·      Located in a major Ni-PGE (nickel-platinum group element) producing area adjacent to Ivanhoe Mines Platreef Project and along strike from the world's largest open pit platinum mine, Anglo American Platinum's Mogalakwena Mining Complex

·      Recent exploration drilling has identified high grade nickel mineralisation in the footwall to the existing historical resource

ABOUT THE PROJECT

The Zebediela Project, located in South Africa, contains a historical resource as follows*:

*Source: Independent NI 43-101 Technical Report on the Zebediela Nickel Sulphide Project (March 31, 2021). Report prepared by Caracle Creek International Consulting Inc. The historical mineral resource estimates presented above used categories that conformed to CIM Definition Standards on Mineral Resources and Mineral Reserves (CIM, 2010) at the time of completion of the estimates, as outlined in NI 43-101. However, a qualified person has not done sufficient work to classify any of the historical estimates as current mineral resources and as such the Company is treating them as historical resource estimates. Readers are cautioned that the historical mineral resource estimates do not mean or imply that economic deposits exist on the Zebediela Project.

A 2011 Preliminary Economic Assessment by MSA Geoservices demonstrated that the Project has the ability to produce over 500,000 tons of nickel using an open-pit mining method (Croll, R., Clarke, B., Hall, M. and Sexton, J. (2012). Preliminary Economic Assessment for the Zebediela Nickel Project. Report prepared by MSA Geoservices (Pty) Ltd on behalf of Umnex Minerals Limpopo (Pty) Ltd).

The historical resource ranks as the 8^th largest nickel sulphide resource globally in terms of contained nickel (Mudd, G.M. and Jowitt, S.M. (2014). A detailed assessment of global nickel resource trends and endowments. Economic Geology, 109 (7), 1813-1841).

HIGH GRADE NICKEL TARGET

Zeb Nickel Corp has identified a target geological zone directly east and adjacent to the existing historical resource that has from historical drilling done in 2017 produced results of 0.56% nickel ("Ni") over an average width of approximately 5m from exploration drilling, with significant cobalt and PGE credits, resulting in a nickel equivalent grade of 2,75% nickel.

Drillhole Z017 intersected approximately 1.7% Ni and 0.7 g/t 3PGE+Au over a width of 2.25 m, 20m below the existing historical resource. Assays were conducted by SGS South Africa, an accredited laboratory for the analytical methods used being used to report these results.

A 3,600m diamond exploration drill programme is expected to commence in September 2021. This drilling programme will target higher grade nickel sulphide mineralisation recently discovered in the footwall of the historical estimate, and is expected to enable the Company to estimate the amount of infill drilling required to classify the historical resource as a current mineral resource.

The footwall target is estimated to be approximately 5,000 metres in strike length and varies in thickness between 1.8 and 10m, from depths of 30 m below the surface down to depths of greater than 400 m below surface. This footwall target is thought to be a similar geological horizon to that being developed at the adjacent Ivanhoe Mines Platreef Project (Figure 1 and 2). If successful, this drilling will result in increasing the overall grade of the project.

LOCATION IN A MAJOR NICKEL-PGE PRODUCING DISTRICT

The Zebediela Project is located on the Northern Limb of the Bushveld Complex, South Africa, and is in a major nickel and platinum group element producing area. The project is immediately adjacent to, and up-dip from, Ivanhoe Mines $1.5 billion Platreef Project, and about 15 km along strike from Anglo Platinum's flagship Mogalakwena Mining Complex.

Ivanhoe Mines' Platreef Project contains a total resource of 852 million tons at 0.31% nickel, 0.16% copper and 3.5 g/t 3PGE+Au (platinum + palladium + rhodium + gold). Information for this Project is publicly available through Ivanhoe Mines' website and technical reports filed on SEDAR (www.ivanhoemines.com/projects/platreef-project/).

Anglo American Platinum's Mogalakwena Mining Complex has an estimated resource of 3.8 billion tons at 0.18% nickel, 0.10% copper and 2.4 g/t 3PGE+Au, as reported in their publicly available Annual Resource and Reserve Report on their website, www.angloamericanplatinum.com.

CEO of URU Metals, Mr John Zorbas, commented: "We are excited to see that based on URU's previous drill program that Zeb Nickel is moving forward with the objective of identifying and quantifying higher grade nickel sulphide and PGE mineralisation in the footwall. We see the next steps as identifying the extent of the higher-grade mineralisation, classifying the historical resource as current, and then updating the PEA which could ultimately translate into better project economics with reduced project capital requirements with a higher life of mine head grade, assisted by PGE by-products."

Certain information contained in this announcement would have been deemed inside information for the purposes of Article 7 of Regulation (EU) No 596/2014 until the release of this announcement.

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