Prospecting Right Application Update

20 September 2021

URU Metals Limited

("URU" or "the Company")

Commencement of Public Participation Process and Environmental Impact Assessment in support of the application for a new Prospecting Right adjacent to the Zebediela Project

URU is pleased to announce that, further to the announcement of 13 September 2021, the Company's appointed environmental consultants, Tshifcor Investment and Resources (Pty) Ltd ("Tshifcor"), an independent environmental practitioner, have commenced with an Environmental Impact Assessment ("EIA") and a public participation process in support of the application for a Prospecting Right over ten portions of the farm Piet Potgietersrust Town and Townlands 44 KS totalling 246 hectares ("Prospecting Right").

The following activities will take place during the week of the 20^th to 25^th September 2021:

1.    Advertisements in the local community newspaper have been booked, notifying Interested and Affected Parties ("I&AP's") of the Prospecting Right application;

2.    Site Notices will be erected;

3.    Site visits will be conducted by Tshifcor;

4.    A Background Information Document ("BAR") will be distributed identified IAPs and relevant South African government departments;

5.    A draft BAR will be placed on Tshifcor's website, https://www.tshifcor.co.za, for stakeholder review and comment.

These activities are required in order for the Company to complete the EIA for the Prospecting Right application, which will allow the South African Department of Mineral Resources to grant the Prospecting Right.

In addition URU is pleased it has agreed Boothbay Absolute Return Strategies LP to extend/ amend the notice period relating to the Convertible Loan Note (the "Loan Note") as announced on 26 May  2020  until 31 March 2022.  All other terms related to the Loan Note remain the same. The key terms of the Loan Note are as follows:

All other terms related to the Loan Note remain the same. The key terms of the Loan Note are as follows:        

(i)        conversion price is a 35 per cent. discount to the Volume Weighted Average Price ("VWAP") per share in the 5 trading days prior to the noteholder serving a conversion notice);

 (ii)         a voluntary conversion price triggered on the noteholder serving a conversion notice (being £0.85 per share for a period of 90 days from the date of the Loan Note and now from 305 days following from Amended Loan Note Instrument of 31 May 2021; and following expiry of the 305 day period, a 35 per cent. discount to the Volume Weighted Average Price ("VWAP") per share in the 5 trading days prior to the noteholder serving a conversion notice);

(ii)       on a fund raising, a 35 per cent. discount to the price per share paid by investors on the fund raising;

(iii)       on a share sale (meaning a sale of Ordinary Shares giving control of the Company, whether for cash and/or by way of exchange for shares in another company and/or for other consideration, and whether or not control of the Company changes as a result of such transaction), a 35 per cent. discount to the price per share paid on the share sale; or

(iii)        if there is no conversion notice served, fund raising or share sale prior to the maturity date, at a 35 percent. discount to the VWAP per share in the 5 trading days prior to the maturity date.

CEO of URU Metals, Mr John Zorbas, commented: " We are excited to be moving forward with the Prospecting Right approval process. Being the adjoining property to the Zebediela Nickel Property, owned by Zeb Nickel Corp (TSXV: ZBNI)   increases the exposure of URU to the massive nickel sulphide and PGE exploration potential on the Northern Limb of the Bushveld Complex. Subject to the approval of the Prospecting Right Application by the South African Department of Mineral Resources we look forward to fast tracking the exploration of this project in order to quickly understand any economic potential the ground may hold.

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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