Extension of Warrants

Phoenix Copper Limited / Ticker: PXC / Sector: Mining

24 June 2020

Phoenix Copper Limited (the "Company" or "Phoenix")

Extension of Warrants

Phoenix Copper Limited (AIM: PXC; OTCQX: PXCLF), the AIM quoted North American focused base and precious metals exploration and development company, today announces that it has extended the expiry date on three classes of warrants by an additional two years.

The expiry date on 1,068,500 warrants (as consolidated in August 2018) (the "Warrants") has been extended to 30 June 2022 (the "Warrant Extension"). Of these Warrants, 641,157 have an exercise price of 40 pence per share and an expiry date of 28 June 2020, and 427,343 have an exercise price of 35 pence per share and an expiry date of 30 June 2020.

In addition, a further 127,962 Warrants which had an exercise price of 21 pence per share and expired on 16 June 2020 have been reissued with the same exercise price and an expiry date of 30 June 2022.

Existing Warrant certificates will remain valid and the new expiry date will be reflected on the Company's Register of Warrant Holders. The exercise price will remain unchanged. Of these Warrants, 134,231 are held by Marcus Edwards-Jones (Executive Chairman).

Related Party Transaction

Certain of the Warrants are held by Marcus Edwards-Jones, a director of the Company. The Warrant Extension therefore constitutes a related party transaction under Rule 13 of the AIM Rules. All the other directors, being independent of the transaction, having consulted with SP Angel Corporate Finance LLP, the Company's nominated adviser, consider that the terms of the Warrant Extension are fair and reasonable insofar as the shareholders of the Company are concerned.

Market Abuse Regulation (MAR) Disclosure

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.

For further information please visit www.phoenixcopperlimited.com or contact:

Notes

Phoenix Copper Limited is a North American focused, base and precious metal explorer and developer, which has carried out a drilling programme and generated a copper, gold, silver and zinc resource on which it is carrying out a feasibility study to bring the historically producing Empire Mine in Idaho, USA, back into production. It is also evaluating the silver and gold resources around three other past producing mines within the 23 km²  Empire claims block as well as cobalt in two claims blocks north of Empire in Idaho.

Phoenix's primary operations are focused near Mackay, Idaho in the Alder Creek mining district. This district includes the historical Empire, Horseshoe, White Knob and Blue Bird Mines, past producers of copper, gold, silver, zinc, lead and tungsten from underground mines in the first half of the twentieth century. Additionally, the district includes Navarre Creek a Carlin-trend gold discovery which hosts a 6.1 km gold strike length within a 9.8 km² area.

Phoenix acquired an 80% interest in the historical Empire Mine property in 2017 and, based on a total of 320 drill holes, an oxide resource was completed in late 2017. A NI 43-101 compliant PEA (preliminary economic assessment) for an open pit heap leach solvent extraction and electrowinning ("SX-EW") mine was completed in April 2018. In 2018 a further 8,600 metres in 93 holes was completed to upgrade the oxide resources, provide samples for ongoing metallurgical test work, geotechnical and hydrological studies and condemnation drilling for the heap leach pad site, waste dump and plant site. An updated NI 43-101 compliant resource was completed in early May 2019, which was generated for a heap leach copper SX/EW operation where only copper was recovered. A further updated NI 43-101 compliant resource was generated in May 2020 for all metals, which resulted in an increase of measured and indicated resources of +56% gold, +11% copper, +13% silver and +26% zinc.  Present contained metal in all NI 43-101 compliant categories of resources, measured, indicated and inferred, stand at 343,249 ounces of gold, 129,923 tonnes of copper, 9,502,494 ounces of silver and 50,550 tonnes of zinc. 

Since acquiring the Empire project, Phoenix has increased the claim area from 818 acres to 5,717 acres, mainly to the northwest and west, and in so doing has increased the potential for additional oxide and sulphide copper resources, as well as the potential for stand-alone gold and silver resources, along a strike length of approximately 5.4 km towards the other brownfield mines of the Horseshoe, White Knob and Blue Bird Mines now within the property boundary.  In particular, a new discovery at Red Star, 330 metres north west of the Empire Mine proposed open pit, has revealed sulphide ore and from three shallow exploration drill holes a NI 43-101 compliant maiden resource of 1.6 million silver equivalent ounces was reported.

At Empire, it is estimated that less than 1% of the potential ore system has been explored to date and, accordingly, there is significant opportunity to increase the resource through phased exploration.

More details on the Company, its assets and its objectives can be found on PXC's website at www.phoenixcopperlimited.com.