Sale Of Crow Springs Diatomite Claims

Further to its announcement of 2 April 2024, Sunrise Resources plc is pleased to announce that it has received a payment of US$75,000 from Dicalite Management Group ("Dicalite"), being the balance of the purchase price for mining claims sold to Dicalite earlier this year in the Crow Springs area of Nevada, USA (the "Claims").

Key Points

• The purchase price of US$150,000 is now received in full.
• The Claims cover surface deposits of diatomite which Dicalite is evaluating as a feed source for its Basalt diatomite processing plant some 85km distance by road.
• Dicalite has applied to mine an initial 1,000-ton sample and is preparing to submit a mine plan of operations.
• Sunrise retains a royalty of US$6/dry ton of diatomite mined and removed from the Claims.

Commenting today, Executive Chairman Patrick Cheetham said:

"This payment is being made as Dicalite moves forward with its plans to start mining on the Crow Springs Diatomite Claims and takes us a step closer to the receipt of royalty payments. Raw diatomite mined from the royalty area will be processed in Dicalite's existing processing plant at Basalt and we hope to be able to say more about future royalty payments once Dicalite's mining plans become public. We are delighted that Dicalite is pushing ahead so quickly."

Nominated Adviser

Additional Information

The Crow Springs diatomite claims were acquired by staking in March 2021 and up to the point of sale the Company incurred costs of US$24,695 in staking and maintaining the Claims.

The proceeds from sale of the Claims are being applied towards working capital.

About Diatomite

In its raw form, diatomite (aka diatomaceous earth) is a valuable industrial rock formed by the accumulation in marine and freshwater lake environments of vast quantities of skeletal material from single celled aquatic algae called diatoms. Diatoms have hollow and lattice-like silica skeletons and the mass accumulation of these skeletons during algal blooms forms a rock with very high porosity.

After processing, which can include heating to a high temperature (calcining) to improve quality, diatomite is used, for example, in filtering beer, liquor, wine, fats, fruit juices, and solvents. Commercial deposits of diatomite have a high brightness, a low bulk density and chemical inertness which also make it a suitable filler or carrier material in various industrial and domestic products.

About Dicalite

Dicalite Management Group is a vertically integrated international industrial minerals company founded in 1928. It produces and processes diatomite (diatomaceous earth), perlite and vermiculite from 17 facilities in the U.S. and Europe comprising five strategic mines and twelve processing facilities. This includes a diatomite processing plant and associated mining operations at Basalt, Nevada, the fourth oldest continually operated mine in the state of Nevada. Two varieties of diatomite are made at Basalt, calcined and natural.

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