Fulcrum Metals - Uranium Asset Disposal

Panther Metals PLC (LSE:PALM) the company focused on mineral exploration in Canada, is pleased to note the Fulcrum Metals PLC ("Fulcrum", LON: FMET) announcement that it has entered into a letter of intent with Terra Balcanica Resources Corp for the sale of Fulcrum's Saskatchewan uranium projects.

Panther currently holds a total of 9,971,839 ordinary shares in Fulcrum representing a 19.99% interest in the entire issued share capital of Fulcrum, plus 714,286 warrants exercisable at 17.5p with a two-year life from 14 February 2023 and a further 476,190 warrants exercisable at 26.25p with a three-year life. Panther also retains a 2% net smelter return royalty over the Big Bear Project.

CEO, Darren Hazelwood, commented:

"I congratulate Ryan and his team in getting this deal to the letter of intent stage. The indication within Fulcrum's announcement is an expected completion by the 1st May providing some insight into a positive and progressive working relationship with the purchaser and I look forward to its completion.

Fulcrum continue to advance and grow as a company and the proposed divestment of its uranium portfolio on terms that allow the business to benefit from upside is encouraging. This streamlining of its assets provides the business with additional capacity at an exciting time in its development as the team focus on delivering via its tailings business."

Fulcrum News Summary

Fulcrum Metals have entered into a non-binding Letter of Intent ("LOI") with Terra Balcanica Resources Corp. (CNSX: TERA) ("Terra" or the "Optionee"), a mining explorer with projects in Bosnia and Herzegovina and Serbia. Pursuant to the LOI, Terra, through an Option Agreement (the "Option Agreement"), will be granted the option to acquire a 100% interest in Fulcrum's uranium projects (the "Uranium Projects") located in Saskatchewan, Canada.

Terra will have the option to acquire the Uranium Projects, consisting of the Charlot-Neely, Fontaine Lake, Snowbird and South Pendleton projects by completing four years of exploration programmes and making a series of cash and equity payments as outlined below:

The new shares in Terra that could be issued to Fulcrum under the terms of the Option Agreement will be issued at the 10-day Volume Weighted Average Price ("VWAP") prior to the date of issuance. The shares issued to Fulcrum on closing of the Option Agreement will be capped at CA$0.065 per share, pre-consolidation by Terra.

In addition, and following the exercise of the option, Fulcrum will retain a 1 per cent. Net Smelter Return ("NSR") royalty on all claims with a buydown option of 0.5 percent NSR for CA$1 million. As part of the Option Agreement, and for terminating the existing agreement (the "Prior Agreement") between Fulcrum and Global Energy Metals Corp. ("Global Energy"), (details of which were announced by Fulcrum on 30 January 2024), Global Energy will be compensated with CA$150,000 to be satisfied through the issue of new shares in Terra on the closing of the Option Agreement and a 0.5 per cent. NSR on all claims.

Completion of the transaction outlined in the LOI is conditional on the completion of due diligence, Board approval by Fulcrum and Terra, receipt of all required third party consents and execution of the Definitive Option Agreement. The Company anticipates the completion of the definitive agreement to take place by 1st May 2024.

The LOI is non-binding and sets out the intention of both parties to enter into a definitive agreement on the terms set out in the LOI, the key terms of which are summarised in this announcement. There can be no guarantee that a definitive agreement in relation to the Option Agreement will be entered into nor that the terms will be the same as set out in the LOI and this announcement.

Addition terms of the LOI

* Certain claims comprising properties that are owned by Gary Clayton Dunn and Jonathan Stewart Dunn who granted an option to acquire a 100% interest in them to Fulcrum pursuant to a mining option agreement

Ryan Mee, Chief Executive Office of Fulcrum, commented:

"We have experienced significant interest from third parties over our uranium assets in Saskatchewan and are pleased to be able to announce the signing of this non-binding LOI with such a strong operational partner in Terra to apply their technical expertise to advance these Uranium projects. The completion of the option agreement will facilitate four years of exploration on these highly prospective licence areas, at a time when uranium prices, driven by the energy transition, continue to rise.

The terms outlined in the LOI, and consequent Option Agreement will enable Fulcrum shareholders to benefit from the potential upside of these projects, via the net smelter royalty and Terra shares, whilst providing Fulcrum with an injection of cash which we can use to advance other projects."

"At Fulcrum we are fortunate to have an outstanding team and this agreement not only endorses the strategy deployed by Fulcrum but is an important step for Fulcrum to execute the next stage of the strategy with a clear focus on gold, and in particular more so on gold tailings and mine waste in Ontario.

The gold tailings and mine waste in Ontario combines established mining jurisdiction with low discovery risk, and potential for earlier cash-flow opportunities. Teck-Hughes is Fulcrum's first gold tailings project, located in Kirkland Lake, Ontario for which sampling was complete in January and testing is underway at Extrakt Process Solutions testing facility. In addition to this the company is working on a framework with Extrakt Process Solutions and their alliance partners including Bechtel Corporation on licensing opportunities in Ontario.

Fulcrum has significant opportunities opening up, and I look forward to updating the market at the appropriate time as we progress these."

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Conclusion