Update on Corporate Strategy for Zulu Lithium

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

18 March 2021

Premier African Minerals Limited

("Premier" or the "Company") 

Update on Corporate Strategy for Zulu Lithium

Premier African Minerals Ltd ("Premier" or the "Company"), is pleased to provide this update on progress and strategy to be applied in the future development of both Premier and Zulu Lithium and Tantalum Limited ("Zulu").

George Roach, Chief Executive of Premier commented: 

"With both the emerging short supply and simultaneous escalating price and demand for spodumene and the grant of the Exclusive Prospecting Order ("EPO") as announced on 17 March 2021, Premier's prospects are today fundamentally different. And whereas the Board was of the view historically that on grant of the EPO, development of Zulu would almost certainly follow a path of ultimate joint venture development with a surrender of a significant direct equity stake in Zulu, Premier's present market value suggests that retention of 100% of Zulu is now potentially a better option. The strategy related to the divestment of our Zimbabwe assets may no longer be appropriate. Accordingly, Premier will focus on the development of Zulu and realisation of the potential true value of this asset and proper exploration of the upside potential in the EPO.

Complementing this, Premier and MN Holdings Limited ("MNH") continue to develop our mutual interests in the operating Otjozondu Manganese Mine in Namibia. It is also worth noting that anything that the Board of Premier considers to be of value and in the best interest of the Company will attract an overall lower cost in terms of any existing dilution for Premier shareholders as underpinned by the potential value in Zulu.

The Definitive Feasibility Study ("DFS") timeline is estimated at 14 months and this is unlikely to change. Subsequent to completion of our Zulu resource estimate, further drilling identified additional prospective zones as announced on 2 February 2018 and supported the mine plan included in the scoping study prepared by Bara Consulting of 1,000,000 tonnes run of mine ore per annum with a projected grade of 1.39% Li in the first year.

Subsequent to the awarding of the EPO for Zulu, Premier has received multiple approaches both proposing direct funding for the Zulu DFS as well as investment linked to product take off and future mine development. Premier is evaluating these and now expects to be able to update our shareholders on the way forward by the end of this month.

In closing, it is worth noting that the Zimbabwean Government's award of the EPO at Zulu and several other EPO applications, is a clear signal that Zimbabwe is truly open for business and is taking steps to achieving their long-term mining goals."

This announcement contains inside information for the purposes of Article 7 of EU Regulation No. 596/2014 on market abuse.   The person who arranged for the release of this announcement on behalf of the Company was George Roach, Director.

A copy of this announcement can be found on the Company's website www.premierafricanminerals.com

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 and lithium and gold in Mozambique, encompassing brownfield projects with near-term production potential to grass-roots exploration. The Company holds 5,010,333 shares in Circum Minerals Limited, the owners of the Danakil Potash Project in Ethiopia, which has the potential to be a world class asset.

In addition, the Company holds a 19% interest in MN Holdings Limited, the operator of the Otjozondu Manganese Mining Project in Namibia.

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