Corporate update - Circum

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

For immediate release

30 August 2019

Premier African Minerals Limited

Corporate update - Circum

Premier African Minerals Limited ("Premier" or the "Company") announces that the Board of Directors has today decided to adopt a formal Board policy in respect of its investment in Circum Minerals Limited ("Circum").

Premier beneficially owns 5,010,333 shares in Circum which, as reported in the Company's audited report and accounts for the year ended 31 December 2019, currently have a carrying value of US$6,262,916.

As reported on 10 June 2019, the Company had received a Circum shareholder update that is available from the Company's website. The update indicated that the preferred route to a liquidity event remains the project development in association with its equity and debt funders. In line with previous disclosures, Circum expects clarity on the development route by the year end.

In anticipation of a liquidity event, the Board has today adopted a formal policy setting out how the Board would apply the proceeds ("Circum Policy"). Under the Circum Policy, providing the proceeds of the liquidity event is greater than US$6,262,916 in respect of the Company's entire current holding in Circum ("Circum Interest"), then:

1.    The Board of Directors would convene a general meeting at which shareholders will be asked to approve the disposal of the Circum Interest ("Circum Disposal").

2.    Conditional on the approval of the Circum Disposal, Premier will first repay all existing debts and liabilities incurred in the ordinary course of business as at the date of the liquidity event of the Circum Interest.

3.    Shareholders will be further asked to approve either of the following options to facilitate a fair and equitable distribution to Premier's shareholders of its Circum Interest;

-      Direct distribution to existing shareholders by way of either a share dividend, share buyback scheme or such other scheme of arrangement that would be the most reasonably tax efficient for shareholders; or

-      The retention by the Company of the disposal proceeds to allow Premier to investment into existing or new projects of Premier.

The Board of Premier is committed to ensuring that the management of the Circum Interest is conducted transparently and efficiently.

About Circum 

Circum is a private company developing the Danakil Potash Project in north-eastern Ethiopia. With a reported mineral resource of 4.9 billion tonnes at 18.1% KCl (potassium chloride) and seismic data suggesting an overall resource size of 12 to 14 billion tonnes of potash-bearing salt beds, the Danakil Project is one of the world's largest undeveloped potash resources.

This announcement contains inside information for the purposes of Article 7 of EU Regulation 596/2014. The person who arranged the release of this announcement on behalf of the Company was George Roach.

Enquiries:

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, encompassing brownfield projects with near-term production potential to grass-roots exploration. In addition, the Company holds 5,010,333 shares in Circum Minerals Limited ("Circum"), the owners of the Danakil Potash Project in Ethiopia, which has the potential to be a world class asset.

ENDS