Ann: Redmoor Mining Study Update, page-3

Economics aren't as great as I thought they would be. Discounting any future resource expansion/s of course.

They are still using overs for assumed commodity prices, which is a concern (for SML that is) imo. Tin is currently circa $19600, Cu circa $2.75 and tungsten is mostly guess work. Basically this study relies on these prices being met in the future, which is quite likely/possible, but not guaranteed.

Capex, sustaining capital, capital development, mining costs all potentially look a little underdone imo. Add that to using higher than current commodity prices and it starts to look a little worse. IRR of 19.4% is not amazing by any means.

I think the higher level PFS and BFS won't quite be as rosy imo. That's not to say it won't provide positive economic returns. The AIM investors don't appear to be convinced yet either.

Highlights:-

· Positive outcome from scoping level underground mining study completed by regionally based consultants WAI; resultant indicative mine schedule confirms economic potential of project.

· Study suggests an indicative production rate of 600ktpa; potential mine life of 10+ years.

· Life of Mine production schedule indicates 7.1Mt @ 1.09% tin equivalent grade.

· The results of the study have been modelled internally by CRL and already show strong positive returns, together with potential for further optimisation.

· Metallurgical testwork carried out in parallel confirms amenability of ore to gravity pre-concentration with good potential recoveries and grades.

· Significant upside has been identified with exploration target likely to extend the existing mine life as well as targeting high margin ores early in the production schedule.

Key results of the mining study include;

· Life of mine schedule includes 7.1Mt @ 0.58% WO₃, 0.10% Sn, 0.38% Cu for a Tin equivalent grade of 1.09%

· Average mining cost of US$46.9/tonne ore

· Initial underground development length of 2.0 km

· Capital development cost estimated at US$2,770/metre

Preliminary evaluation indicates the following key (after tax) results:

· NPV (@8%): US$94M

· IRR (%): 19.4%

· Life of Mine operating margin: 46%· Payback time (from first ore): 3.4 years



https://irs.nbtrader.co.uk/ir/StrategicMinerals/newsArticle.php?id=2785420&ST=SML