Corcel PLC Operations Update (7626P)

TIDMCRCL

RNS Number : 7626P

Corcel PLC

22 June 2022

Corcel PLC

("Corcel" or the "Company")

Operations Update

22 June 2022

Corcel, the natural resource exploration and development company with interests in battery metals and flexible energy generation and storage announces an update across its various interests and operations.

Wowo Gap Nickel/Cobalt Project (100% Interest)

As initially announced on 10 January 2022, the Company has entered into a non-binding memorandum of understanding ("MOU") with Shandong New Powder Cosmo AM&T ("NPC") for the supply of nickel from the Company's Mambare and Wowo Gap nickel projects in Papua New Guinea, where the Company owns 41% and 100% respectively.

As of mid-June 2022 and following the opening up of regional travel post COVID constraints, a representative of Sentient Equity Partners ("SEP"), one of the three main investors and the mining specialists amongst NPC shareholders, has returned from a visit to Cosmo AM&T in Korea; a publicly listed Korean company with a US$1.3bn market capitalization and the fourth largest lithium battery cathode producer in the country. This meeting of NPC shareholders successfully advanced discussions covering the MOU signed earlier this year as well as addressing the broader requirement for NPC to secure long-term supplies of critical battery metals. While NPC's current revenues are robust, access to reliable and reasonably priced raw materials remains an ongoing challenge for the plant and the sector generally.

NPC is currently preparing a detailed report on the Mambare and Wowo gap projects for review by its shareholders, and COSMO AM&T has invited Corcel's management to Korea to advance discussions and move the MOU to a binding agreement. Further announcements will follow as appropriate.

Mambare Nickel/Cobalt Project (41% Interest)

The Mambare JV partners recently concluded a 3-day visit with the Papua New Guinea Mineral Resource Authority in Popondetta. This visit was primarily conducted for stakeholder awareness purposes as well as to provide broad-based background and education on the project to local government officials and landowners.

At Gona and Port Harvey (located next to Oro Bay), the JV has recently concluded water depth soundings designed to confirm the appropriateness of each location for direct shipping ore ("DSO") export to bulk carrier vessels for onward transfer to Asia. A variety of transfer options are currently being considered and initial reports indicate that Port Harvey would likely be a very adequate back-up site to the primary Oro Bay export option currently under consideration.

Meanwhile the JV's representatives will remain in PNG for the next ten days to advance the current workplans as PNG begins to enter a period of national elections.

Flexible Grid Solutions

The Company is reviewing a number of sizeable battery storage opportunities in the UK, and following continued discussions with the landlord of the 50MW Avonmouth gas peaker site, Altana Social Impact Partnership ("ASIP") and the Company, all parties have mutually agreed to end the Company's marketing rights and the funding efforts associated with the Avonmouth project.

The Company and Altana, given the strong bias of Altana and investors more generally towards non fossil fuel projects, will now focus on energy storage opportunities across the UK, which both parties believe to be significantly more fundable in the present environment. Further announcements will be made in due course.

Chief Executive Officer, Scott Kaintz commented: "It is highly encouraging to see our progress maturing offtake arrangements for Wowo Gap and Mambare and we much look forward to meeting Cosmos over the summer to take forward these discussions on offtake and working together more broadly.

Whilst it is of course disappointing to end our negotiations on Avonmouth after many months of effort, we recognize the practical dominance of ESG sentiments with infrastructure and energy investors and see significant value from our peaker project efforts having identified our funding partnership with Altana. We expect to have further news on our battery storage portfolio shortly."

For further information, please contact:

Scott Kaintz 020 7747 9960 Corcel Plc CEO

James Joyce / Andrew de Andrade 0207 220 1666 WH Ireland Ltd NOMAD & Broker

Simon Woods 0207 3900 230 Vigo Communications IR

The information contained within this announcement is deemed to constitute inside information as stipulated under the retained EU law version of the Market Abuse Regulation (EU) No. 596/2014 (the "UK MAR") which is part of UK law by virtue of the European Union (Withdrawal) Act 2018. The information is disclosed in accordance with the Company's obligations under Article 17 of the UK MAR. Upon the publication of this announcement, this inside information is now considered to be in the public domain.

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June 22, 2022 02:00 ET (06:00 GMT)