Agreement with Jubilee Metals Plc

04 May 2021

Caerus Mineral Resources PLC

("Caerus" or the "Company") (Ticker: CMRS)

Agreement with Jubilee Metals Plc

Caerus Mineral Resources, the exploration and resource development company focused on developing mineral resources in Cyprus to support the global "Clean Energy" initiative, is pleased to announce a binding and exclusive Option Agreement ("the Agreement") with London Listed Jubilee Metals Plc (AIM: JLP) ("Jubilee"), a leading company in the processing of waste materials for the recovery of metals.

Highlights

·    Option Agreement is exclusive to Jubilee, whereby they have six months to assess the technical merits, development and economic prospects of Caerus' mining assets in Cyprus

·    The Agreement allows Jubilee, at its sole discretion, to identify one or more of Caerus' assets to be converted into Project(s) under a Joint Venture arrangement

·    Jubilee's recent record demonstrates a rapid-growth and diversified metals processing company with strong technical management and a proven ability to move projects forward at a fast pace

·    Caerus is a copper and gold development and exploration company focussed on Cyprus, and the owner of substantial stockpiles of copper and gold-bearing remnant ore and mining residues at-surface

·    Caerus believes that the multiple large tonnage stockpiles of mining residues from the 16 former mines within its licence areas offer significant Joint Venture potential

·    Jubilee's current market capitalisation is approximately GBP 400 million

Strategy and Assets

Jubilee Metals is a successful metals processing company with which it is opportune for Caerus to engage through the mutually beneficial Option Agreement announced today. Whilst Caerus is still focused on its advanced exploration objective(s) of defining NI 43-101 compliant Ore Reserves from its core flagship properties of Kalavasos, Mathiatis and Mala, and the advanced assets of the recently acquired PR Ploutonic Resources Ltd., this Agreement with Jubilee is a step towards achieving a parallel goal.

Alongside advanced exploration, Caerus has a second key objective, namely to pursue a 'waste to revenue' strategy and monetise the residual metals embedded in its substantial, 100% owned surface stockpiles of high-grade remnant ore as well as associated copper-and gold-bearing marginal ore, waste rock and tailings. The Company's in-house and uncertified estimates are ca. 15 million tonnes ("Mt") in all categories of material within its portfolio, not including the >3Mt within licences owned by PR Ploutonic Resources.

Option Agreement

The main elements of the Option Agreement are as follows:

·    Operational costs are to be met by Jubilee with no material cost to Caerus

·    6-month duration providing a rapid turn-around of samples and progressive release and reporting of results

·    Jubilee has the exclusive option to elect to convert one or more projects to a Joint Venture under terms to be agreed

·    If a Joint Venture is agreed, Jubilee will design, finance and execute the construction of any processing plant and become its operator

·    Any Joint Venture will operate on a profit-sharing basis after recovery by Jubilee of its initial capital expenditure and other 'up-front' costs

Option Agreement Rationale

This Option Agreement enables Caerus and Jubilee to engage in an agreed Work Programme to investigate and assess the remnant ore and multiple waste stockpiles from the 16 mines that operated historically on Caerus' concessions, including those of the recently acquired PR Ploutonic Resources Ltd. The targeted wastes were discarded in an era when metal market dynamics were very different from today, and there was no incentive to optimise recoveries from ore feeds, nor any commercial or environmental benefits from doing so. The dramatically changed commodity price environment for copper in today's world is driven mainly by the global decarbonisation of the transport and energy sectors. This creates an opportunity for Caerus to form a working relationship with Jubilee and utilise their skills and experience in materials reprocessing. These will form the foundation of the Work Programme under the Agreement that will be delivered jointly with Caerus personnel.

The ultimate objective is to identify and define projects within the Caerus portfolio that can be 'scaled-up' and prioritised into one or more Joint Ventures targeting profitable production using modern designs and waste processing technologies guided and financed by Jubilee.

Martyn Churchouse, CEO of Caerus Mineral Resources, commented: "We are delighted to be able to engage with Jubilee at a time when the market demand for copper is so vibrant and is forecast to remain so for many years. We are fortunate to have within our wholly-owned tenements the mineralised waste from many of Cyprus' former copper mines. This enables us to pursue a dual strategy of exploring for new underground VMS resources whilst striving to become a producer by exploiting our stockpiles of copper and gold-bearing waste. Since Jubilee is a recognised market leader in the recovery of metals from a diverse range of waste and feedstocks, they are a natural partner with which to progress our revenue-generating ambitions."

For further information, please visit www.caerusmineralresources.com or contact:

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About Caerus Mineral Resources plc

Caerus Mineral Resources is a copper-gold resource development and exploration company with mineral exploration licences located in Cyprus. 

Cyprus is a member of the European Union that operates to English common law. The Country has a well-developed infrastructure and a climate conducive to year-round exploration.

With investors recognising copper as one of the cornerstone metals for the Clean Energy Transition centred upon the Electric Vehicle and Stationary Energy sectors, Caerus is working to rapidly expand its copper exploration and production objectives. The Caerus licence portfolio includes 14 former mines which operated with an average head grade of approximately 2% copper.

Caerus' licence portfolio comprises brownfield sites where historic mining has taken place and greenfield licences where there has been no systematic exploration. The Brownfield sites and the former high-grade copper-gold mines they host are evidence of rock types and structures conducive to Volcanogenic Massive Sulphide ("VMS") mineralisation. As VMS deposits characteristically occur in camps or clusters, it is the Company's view that its licences are prospective for both extensions to existing or mined-out orebodies together with new discoveries.

The combination of brown and greenfield exploration provides optionality with multiple target types and the opportunity for the Company to quickly build a resource portfolio that can be commercially developed.

Qualified Person and Disclosure Statement:

The scientific and technical data contained in this news release was reviewed and approved by H. Andrew Daniels, P.Geo, a non-independent Qualified Person and non-executive Director of Caerus Mineral Resources, who is responsible for ensuring that the geologic and resource information provided in this news release is accurate.  Mr. Daniels acts as a "Qualified Person" under National Instrument 43-101 Standards of Disclosure for Mineral Projects.

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 (as in force in the United Kingdom pursuant to the European Union (Withdrawal) Act 2018). Upon the publication of this announcement via Regulatory Information Service (RIS), this inside information is now considered to be in the public domain.