Exclusivity Agreement for Donovan 2 Farm Out

Trading Symbols

AIM: UFO

FWB: I3A1

9 September 2020

Alien Metals Ltd

("Alien Metals" or "the Company")

Execution of Exclusivity Agreement for Donovan 2 Farm Out

Alien Metals Ltd ("Alien Metals" or "the Company"), a minerals exploration and development company, is pleased to announce that it has entered into an Exclusivity Agreement in respect of the potential farm out of an interest in its Donovan 2 Copper-Gold project in Mexico.

The Exclusivity Agreement, with the mid-tier North American mining company Capstone Mining Corp. ("Capstone") (TSX: CS), provides for a 45-day period for Capstone to undertake due diligence to their satisfaction. During the due diligence period the parties intend to enter into a definitive agreement, which will provide for a staged earn-in to the Donovan 2 Project, through a combination of carried expenditure and cash payments ("Definitive Agreement"). The parties are currently finalising the commercial terms of the farm-out .

Bill Brodie Good, CEO & Technical Director of Alien Metals, commented:

"The signing of the Exclusivity Agreement is the result of many months of discussions between the parties and fits with the Company's stated strategy of unlocking value in its project portfolio.   

"We have been impressed by the process undertaken to date and the commitment shown by Capstone Mining Corp. and I am looking forward to working closely with them to promptly finalise outstanding due diligence matters and move to definitive agreements as soon as possible."

The Company will provide updates on the due diligence process and the finalisation of the Definitive Agreement in due course.    

For further information please visit the Company's website at www.alienmetals.uk, or contact:

Notes to Editors

Alien Metals Ltd is a mining exploration and development company listed on AIM of the London Stock Exchange (LSE: UFO). The Company's focus is on precious and base metal commodities.

Alien Metals has embarked upon an acquisition-led strategy headed by a high-quality geological team to build a strong portfolio of diversified assets including two recent acquisitions in 2019. These include the Brockman and Hancock Ranges high-grade (Direct Shipping Ore) iron ore projects and the Elizabeth Hill Silver projects both located in the Pilbara region, Western Australia.

In addition to progressing and developing its portfolio of assets and following its strategic review of its portfolio of silver and precious metals projects in Mexico, Alien Metals has identified priority exploration targets within its 9 mining concessions which it is working to advance systematically. The Company's silver projects are located in the Zacatecas State, Mexico's largest silver producing state which produced over 190m oz of silver in 2018 alone accounting for 45% of the total silver production of Mexico for that year.