Major Acquisition on the Obonga Greenstone Belt

NOT FOR RELEASE, PUBLICATION OR DISTRIBUTION, IN WHOLE OR IN PART, DIRECTLY OR INDIRECTLY IN OR INTO AUSTRALIA, CANADA, JAPAN, THE REPUBLIC OF SOUTH AFRICA, THE UNITED STATES OR ANY OTHER JURISDICTION WHERE TO DO SO WOULD CONSTITUTE A VIOLATION OF THE RELEVANT LAWS OF SUCH JURISDICTION

THIS ANNOUNCEMENT CONTAINS INSIDE INFORMATION FOR THE PURPOSES OF ARTICLE 7 OF REGULATION 2014/596/EU WHICH IS PART OF DOMESTIC UK LAW PURSUANT TO THE MARKET ABUSE (AMENDMENT) (EU EXIT) REGULATIIONS (SI 2019/310) ("UK MAR"). UPON THE PUBLICATION OF THIS ANNOUNCEMENT, THIS INSIDE INFORMATION (AS DEFINED IN UK MAR) IS NOW CONSIDERED TO BE IN THE PUBLIC DOMAIN.

PANTHER METALS PLC

("Panther" or the "Company")

(Incorporated in the Isle of Man with company number 009753V)

2 August 2021

Acquisition, issue of equity, grant of options and total voting rights

Canada - Major Acquisition on the Obonga Greenstone Belt

Panther Metals PLC (LSE:PALM) the company focused on mineral exploration in Canada and Australia, is pleased to announce the acquisition of 1,128 claims, constituting an almost exclusive exploration holding over the Obonga Greenstone Belt located approximately 80km north of the Lac Des Iles Mine and 160km north of Thunder Bay in the Province of Ontario Canada.  The acquisition of claims, consolidating Panther's new Obonga Project (the "Project"), results from an agreement with Broken Rock Resources Ltd ("BRR" or "Broken Rock") and Panther's own claim staking strategy which provides the Company with control of an important mineral belt with identified and permitted high prospectivity drill-ready base and precious metal targets.

Darren Hazelwood, Chief Executive Officer, commented:

"Panther Metal's strategy of building an exploration business supported by a world class team, with highly prospective assets, is now firmly in place, with multiple assets that could each, on their own, transform the Company.

Structuring the Company's business in such a way that we can access the required exploration funds to make discoveries, without negatively impacting our capital structure and shareholder value is a core principle of Panther.,

The Obonga Greenstone Belt, now almost entirely controlled by Panther, would likely have yielded discoveries to BHP in the 1990s, had they not curtailed their Canadian activities. Following the extraordinary data driven geological investigation and follow-up conducted by Broken Rock Resources, the Obonga Project will now witness the exploration it deserves.

This deal is built around drilling, the hard miles at surface are complete on our first two targets with drill permits in place. Agreeing on a deal structure that witnesses the vendor only seeing true upside on discovery, speaks volumes for the potential being seen by everyone who has reviewed the Obonga Greenstone Belt."

Obonga Project Overview

The Project covers the Obonga Greenstone Belt ("Obonga") which consists of a 32km long by up to 9km wide, broadly east-west striking, tract of Archean age metamorphosed volcanic, sedimentary and intrusive rocks.  It is a highly prospective setting for the formation of orogenic shear-hosted gold deposits, volcanogenic massive sulphide ("VMS") copper-lead-zinc-silver deposits, komatiite/ultramafic associated nickel-copper-platinum group metal ("PGM") deposits and porphyry style base metal mineralisation.

Panther's newly acquired claims constitute 88% coverage of Obonga and the Project includes seven high prospectivity targets for gold, nickel, PGM and base metals identified  by Broken Rock. The remaining ground over the belt is either (i) designated as environmental reserves; or (ii) not otherwise available for exploration; or (iii) under minor landholding by third parties.

Broken Rock Resources Ltd is a Canadian registered private exploration company with a number of exploration interests in north-west Ontario.  Broken Rock is headed up by Liane Boyer who is a well-respected and experienced exploration and resource geologist who has worked at a number of mines in Ontario including Barrick Gold Corp's Hemlo gold mine, Newmont's Musselwhite gold mine,  Impala Platinum's Lac Des Iles PGM mine and consulted on an extensive portfolio of exploration projects and mines internationally.

Importantly, Broken Rock has a good working relationship with First Nation communities in the Project area which Panther is committed to maintaining and developing. Panther's aim is to create  shared value that benefits local communities and to explore and develop projects in an environmentally sensitive manner.

Wishbone VMS - Base Metals & Gold

The Wishbone VMS Prospect, targeting copper ("Cu"), lead ("Pb"), zinc ("Zn), silver ("Ag") and gold ("Au"), is located in the west of the Obonga Project and consists 34 claims staked by BRR over a highly magnetic geophysical anomaly that has a similar signature to  Perseverance, McFaulds and other VMS deposits. The magnetic anomaly is also coincident with a strong electromagnetic ("EM") geophysical anomaly.

Wishbone is situated in a similar geological environment to the nearby Mattabi VMS camp, approximately 75km due west, which reportedly produced 13.5 Mt of ore with an average grade 7.5% Zn, 0.88% Cu, 0.77% Pb and 3.10 oz/t (96.42g/t) Ag in the period 1970-1983.

Drilling in the in the 1970's intersected massive stringer and disseminated sulphide 800 m north of the Wishbone anomaly and drilling by BHP in the 1990's intersected massive stringer and disseminated sulphide 600 m south of the anomaly. BHP ranked the anomaly a high priority for follow up in 1992 however no further work was completed.

Permits are in place for drilling.

Awkward Conduit - PGM & Nickel-Copper

The Awkward Conduit Prospect is targeting intrusive hosted palladium ("Pd"), platinum ("Pt"), nickel ("Ni") and Cu. The prospect consists of 30 claims covering an interpreted feeder conduit to the Awkward Lake zoned mafic intrusive body. The geophysical expression of this target is a strong electromagnetic anomaly which crosscuts stratigraphy coincident with mapped gabbro which feeds into the awkward intrusion. Additionally there is a very strong remnant magnetic anomaly coincident with mapped norite at the north end of the target where it feeds into the layered intrusion.

Notably the Awkward remnant magnetic feature has distinct similarity to geophysical signatures at the Lac Des Isle mine, the Clean Air Metals Inc (TSXV: AIR) Thunder Bay North PGM Co-Cu-Ni resource stage project (Indicated 16.3Mt@ 3.5 g/t Pd _Equivalent and Inferred 9.9Mt @ 2.1 g/t Pd _Equivalent) and the Lundin Mining (TSX:LUN) Eagle mine which is a 2,000 tonnes per day underground nickel-copper operation.

Historical records show shallow drilling, in 1971, on the edge of Awkward anomaly intersected both massive and disseminated sulphides including chalcopyrite hosted in gabbro, but assay results were not reported.  Surface samples also show anomalous Pd and Pt.

Permits are in place for targeted diamond drilling, stripping and additional ground-based EM and induced polarisation ("IP") geophysics surveys which are planned to refine additional targets.

Tommyhow Gold

The Tommyhow Gold Prospect is targeting shear hosted orogenic gold mineralisation and consists five claims in the south-east of the Obonga Project. The gold showing is identified on a government geologic map from 1965 and is coincident with a large mapped structure at the boundary of this greenstone belt. Like much of this belt this target has seen little to no exploration and will be high priority for early follow up.

Transaction Details

The acquistion agreement for the 80 claims held by Broken Rock Resources Ltd, together with associated exploration data and permits, entails Panther delivering combined cash and stock consideration together with a right to an additional deferred consideration and a net smelter return ("NSR") royalty as summarised below.  In addition, as part of the agreement, Panther has made an exploration commitment which will be directed towards drilling and associated exploration works and will designate the 1,084 claims it has staked directly into the Obonga Project.

Deal Summary:

·    CAD$50,000 in cash;

·    228,925 Panther shares credited as fully paid;

·    the right to receive deferred consideration (as described below); and

·    1.5% NSR royalty (which has provision for Panther to reduce the royalty to 1.0% NSR through a CAD$3,000,000 buy-back).

The Deferred Consideration consists of four tranches of CAD$30,000 in cash each payable within 30 days of the annual anniversary of the acquisition agreement, followed by a final payment of CAD$250,000 in cash payable within 30 days of the fifth anniversary of the date of the acquisition agreement.

The 1.5% NSR royalty is on the net value of all ores, minerals, metals and materials mined and removed from the Property and sold or deemed to have been sold by or for the Royalty Payor and a 1.5% a gross overriding royalty for diamonds. The royalty applies to all 1,128 claims consisting the Obonga Project with a provision for a future 1.5% NSR royalty on 1,048 claims staked by Panther in the event Panther meets certain exploration commitments but elects not to progress with exploration.

As part of the transaction Panther will also award 500,000 share options with an exercise price of 13p per share and a life of five years.

The Panther exploration commitment entails funding 8,000 meters of drilling on the area covered by the claims (and all associated costs including assay results and core storage) (at an estimated cost of CAN$250 per metre and spread over three years); and to make available a budget of not less than CAN$1,000,000 over the initial three year period to fund all other operating costs on the area covered by the Claims (including trail building, field work, community relations, access rights and personnel costs).

Broken Rock has also provided Panther with a first right of refusal to meet any sale or farm-out offer for Broken Rock's other claim holdings and exploration interests. 

The Company has made applications for 228,925 new Ordinary Shares to be admitted to listing on the standard segment of the Official List of the Financial Conduct Authority and to trading on the main market for listed securities of London Stock Exchange plc under the TIDM "PALM".

Admission is expected to take place at 8.00am on 5 August 2021.

The total number of Ordinary Shares in issue following Admission will be 61,591,339 and no shares are held in treasury. This number may be used by shareholders as the denominator for the calculations by which they will determine if they are required to notify their interest in, or a change to their interest in, the Company under the FCA's Disclosure Guidance and Transparency Rules.

For the purposes of UK MAR, the person responsible for arranging for the release of this announcement on behalf of Panther is Darren Hazelwood, Chief Executive Officer.

For further information please contact:

Panther Metals PLC:

Darren Hazelwood, Chief Executive Officer:  +44(0) 1462 429 743

                                                                       +44(0) 7971 957 685

Mitchell Smith, Chief Operating Officer:         +1(604) 209 6678

Broker:

SI Capital Limited

Nick Emerson                                                  +44(0) 1438 416 500