Zambia Exploration Update

Arc Minerals (LSE: ARCM), an exploration company forging partnerships to discover and develop Tier 1 copper deposits, is pleased to provide an update on exploration activities at its Joint Venture with a subsidiary of Anglo American in Zambia.

Highlights

• Copper mineralisation observed at all targets drilled
• Priority target confirmed
• Alteration consistent with known deposits in the Domes Region with copper mineralisation observed
• Three new targets identified and drilled
• Drilling at fourth target underway

Nick von Schirnding, Executive Chairman of Arc Minerals, commented:

"I am very encouraged by the progress made during the drilling campaign by our JV partner, Anglo American, notably the identification of a new priority target and the fact that drilling is set to continue into the wet season.

One new target in particular, close to Muswema, has moved to the top-ranked priority and exhibits alteration mineralogy comparable to known deposits within the Domes Region, with visible copper mineralisation observed in the core.

I look forward to reporting back on assay results from the core sent to the laboratory as they become available."

Drilling

Drilling commenced this year at the first new target approximately 1km east of the oxide occurrence at Cheyeza. The first hole targeted a Cu-Ni anomaly generated by the latest soil sampling programme. Anomalous copper mineralisation over a downhole thickness of around 45m was observed in the saprolite zone. Pending results from the laboratory, this hole demonstrates the potential to significantly expand the known oxide mineralisation at Cheyeza.

Two holes were drilled at the new target Nkwazhi that is located between Cheyeza and Muswema, testing a thickened Lower Roan unit in this part of the basin. The first hole intersected copper mineralisation of over 20m at the base of the Upper Roan along with anomalous nickel in a marker talc-schist unit in the Lower Roan, below which currently no further mineralisation has been observed. The second hole drilled 400m away did not intersect mineralisation.

The third target tested is located approximately 4km to the south-east of Muswema where a second order soil geochemical anomaly is present.

Initial observations from this first hole are encouraging with lithologies and alteration styles akin to known deposits within the Domes Region of the Copperbelt being intersected. Copper mineralisation is also observed in parts of the drill core with multiple generations of chalcopyrite observed. This target is being prioritized for follow-up drilling.

Soil Sampling

During the campaign, an extensive soil sampling programme was completed along traverses and focussed on the basin margin and in particular the Lower Roan. Over 12,000 samples were collected and analysed with the principal aim being to better understand the architecture of the Roan stratigraphy, source rocks and vectors to potential reductants.

The information garnered from this soil sampling program, integrated with historical data has resulted in a more robust surface geological map for the basin and has supported the current drill targeting.

Investor Call

An investor call will be held via Zoom at 12:00 UTC on Thursday, 7 November 2024 which will be presented by Nick von Schirnding (Executive Chairman) and Vassilios Carellas (Chief Operating Officer) to provide an update on the Company's upcoming drilling programmes in Botswana and Zambia. Investors can join the investor call by using the following link:

Qualified Persons

Background on the Anglo American Joint Venture

Arc Minerals has entered into a Joint Venture Agreement with Anglo American on its Zambian Copper Project (ZPC) comprising a number of licenses covering circa 870km2 ha in the North Western Province, in the Domes region of the Zambian Copperbelt near world-class mines such as First Quantum Minerals' Sentinel and Kansanshi copper mines and Barrick's Lumwana mine.

• Phase 1 - Anglo will pay $14.5M in staged cash payments to Unico Minerals Ltd (67% owned by Arc) and invest up to $24m in exploration expenditures (total $38.5M) within three years and 180 days of the signing of the Agreement (RNS 20.04.23) to secure a 51% interest in ZCP.
• Phase 2 - Anglo may elect to increase its interest in the ZCP to 60% by investing a further $20M (total $58.5M) within two years of the completion of Phase 1.
• Phase 3 - Anglo may elect to increase its interest in the ZCP to 70% by investing a further $30M (total $88.5M) within two years of the completion of Phase 2.

Appendix A - Glossary of Technical Terms