BACKGROUND TO THE PROPOSED TRANSACTIONAs announced on 16 June...

BACKGROUND TO THE PROPOSED TRANSACTION
As announced on 16 June 2022, the Company has entered into a share purchase deed with Metal
Tiger PLC (MTR) (SPD) to acquire the remaining 49% of the issued shares in Kalahari Metals Limited
(KML) (Proposed Transaction) that it does not already own.
The Company currently holds a 51% ownership interest in KML, via its wholly owned subsidiary,
Cobre Kalahari Pty Ltd (Cobre Kalahari). Under the terms of the Proposed Transaction:
• the Company (or its nominee) will initially acquire 24.5% of the shares in KML (Sale Shares)
from MTR (increasing its interest to 75.5%) for total cash consideration of GBP £750,000
(Initial Acquisition); and
• MTR will grant the Company a call option for it (or its nominee) to acquire the remaining
24.5% of shares in KML (Option Shares), exercisable for either GBP £750,000 in cash or the
equivalent in Shares, for a period of 12 months after completion of the Initial Acquisition (Call
Option), providing the Company a pathway to 100% ownership of KML. Subject to the 30%
limit in Resolution 2, the consideration in respect of the Call Option may be paid by a
combination of cash and shares.