Quicklime Project Update

Firering Strategic Minerals plc, an emerging quicklime production and critical mineral exploration company, is pleased to announce an operational update with regards to its quicklime project in Zambia ("Limeco"), which is being fast-tracked towards the start of phased commissioning in Q4 2024.

HIGHLIGHTS

• Key modifications to the first of eight kilns are nearly complete, which will significantly improve operational efficiency and lower the plant's operating costs.
• Aggregate crushing operation continues to perform well, supporting positive cash flow.
• Positioned to commence production immediately on commissioning of Kiln 1 in Q4 2024 with kiln stockpile now standing at +15,000 tonnes.
• Newly built pilot kiln performing effectively, with promising burn test results.
• Positive off-take discussions progressing well, driven by Limeco's strong production capacity and commitment to quality control, attracting notable market interest.
• Updated JORC-compliant Mineral Resource Estimate anticipated in November 2024.

Yuval Cohen, Chief Executive of Firering, said: "We are delighted by the rapid progress at Limeco, including the installation works for the first gasifier, which marks a key milestone in the plant renovation strategy. Modifications to the first kiln are nearly complete, with commissioning of both the kiln and gasifier targeted for Q4 2024. Laboratory test work has also accelerated, supported by the completion of a pilot kiln, which has yielded initial quicklime (CaO) results between 92% and 94%. This progress is driving productive discussions with prospective clients, and accordingly we are optimistic about securing long-term offtake agreements.

"The upcoming two months promise to be extremely busy as we work toward the production start target, with a steady stream of news expected. This includes the release of an updated Mineral Resource Estimate as Limeco positions itself to meet the rising demand from Zambia's growing copper production market."

DETAILS

Limeco's quicklime project remains on track for phased commissioning to start in Q4 2024 with critical modifications to the first of eight kilns largely complete. Key to this is the conversion of the fuel source for these kilns from Heavy Fuel Oil ("HFO") to coal gasification, which will significantly enhance the operational efficiency and reduce operating costs of the plant.

Additionally, the aggregate crushing operation is continuing to perform very well, underpinning positive operational cashflow as well as providing an increasing stockpile for the kilns, which is now in excess of 15,000 tonnes.

Coal gasifier

The first gasifier arrived on site and is now being erected.

Figure 1: Parts of gasifier arriving at Limeco, 29 October 2024.

Figure 2: Parts of gasifier being off loaded at lime plant, 29 October 2024.

Figure 3: Erection of gasifier

Modifications to Kiln 1

Work is progressing well for the commissioning of Kiln 1 by the end of Q4 2024 with the following activities concluded or in progress:

Figure 4: View of refurbished hoist structure (blue) and refurbished skip (orange).

Coal storage facility

Work on the coal storage facility, from where the coal will be conveyed to the coal gasifier, is 40% completed.

Figure 5: View of incline ramp from coal storage facility to coal gasifier.

Crushing plant

The newly installed impact crusher is performing well with over 60,000 tonnes of limestone crushed. The kiln feed, sized -90mm to +60mm, is stockpiled near the lime plant and now totals 15,000 tonnes. Furthermore, aggregate production from the minus 60mm stream is also going well and contributing 50% to Limeco's positive operational cashflow.

Figure 6: View of part of the kiln feed with lime plant in the background.

Laboratory

The recently constructed pilot kiln is performing well with burn tests giving good results; initial test results showed available quicklime ranging between 92% and 94%.

Figure 7: Burnt limestone from the pilot kiln awaiting further testwork to determine available quicklime (CaO).

Mineral Resource Estimate

Earthlab Exploration and Mining Consulting ("Earthlab") has been engaged by Firering to update the current Mineral Resource Estimate ("MRE") of 73.7Mt @ 95.3% CaCO3 produced by Golder Associates in October 2017. This update, incorporating data from the recently awarded 392.51 hectare exploration licence adjacent to Limeco's current licence (see RNS dated 3 September 2024), has the potential to increase the MRE by between 60Mt to 70Mt at similar grades. Earthlab's updated JORC compliant report is expected in November 2024.

Long-term offtake agreements

Discussions are advancing with clients across various sectors for long-term offtake agreements. This includes negotiations with local and regional industries currently reliant on imported quicklime, principally from South Africa. Limeco's robust production capacity, combined with its commitment to quality control, is generating considerable market interest.

Firering Strategic Minerals plc is an AIM listed resource company set to commence commissioning a significant quicklime project in Zambia in Q4 2024 to produce 600-800 tonnes of quicklime per day along with ancillary products. With over US$100 million in historical investment, the project is strategically positioned to support the expanding copper producers in the Zambian Copper Belt, which are currently reliant on imported quicklime from South Africa. Firering currently holds an SPA over a 20.5% stake in Limeco Resources Limited ("Limeco") with 10% already paid and an option to increase this to 45%. Additionally, the Company is advancing the Atex Lithium-Tantalum Project in northern Côte d'Ivoire, an exploration project rich in lithium and tantalum-niobium, with drilling results indicating significant resource potential in this established mining jurisdiction.