Marula Mining PLC – Assays Confirm High Grade Manganese Ore at Kilifi

Marula Mining PLC (AQSE: MARU A2X: MARU) an African focused mining and development company, is pleased to announce that it has received assay results from channel samples taken from manganese ore within licensed areas that will provide run-of mine material to the recently acquired Kilifi Manganese Processing Plant (the “Kilifi Plant”) located in the Tezo Area, Kilifi County in Kenya.

The assay results have confirmed an high-grade zone of manganese ore of up to 1.0 metres (“m”) in thickness and with assay results of between 44.13% and 71.01% manganese (“Mn”). This high-grade zone is located at depths of approx. 5m and below the base of the low to medium grade manganese ore deposits that are located in the Ganze Region of Kilifi County and which have been identified to extend along a 30 kilometre (“km”) strike length.

Manganese ore from the Ganze Region is anticipated to be supplied at monthly rates of 10,000 tonnes per month (“tpm”) to the Company’s Kilifi Plant under the Manganese Ore Supply Agreement (“Ore Agreement”) signed with Kitmin Holdings Limited (“Kitmin”), as announced on 1 August 2024.

The assays results confirm the potential for the Company’s wholly owned subsidiary, Muchai Mining Kenya Limited (“MMK”), to process this high-grade manganese ore at the Kilifi Plant to either produce a dedicated high grade manganese product or blend with the lower to medium grade manganese ore, and produce a higher grade/higher value saleable final product.

Highlights:

·    a total of six channel samples were taken from exposed manganese ore within licensed areas in the Ganze Region of Kilifi County

·    samples were from areas designated to supply 10,000 tpm of manganese ore to the Kilifi Plant under the Ore Agreement signed with Kitmin in August 2024

·    assay results recorded high-grade manganese, with an average grade of 61.95% Mn obtained and the lowest and highest reported grades of 44.13% Mn and 71.01% Mn, respectively

·    the assay results for the six samples included 44.13% Mn, 51.69% Mn, 66.04% Mn, 68.41% Mn, 70.38% Mn and 71.01% Mn

·    the samples were assayed by Kenya’s State Department for Mining at their laboratory facilities in Nairobi

·    the samples were taken from the lower sections of the manganese rich deposits found in the Ganze Region of Kilifi County, more specifically from the base of the unit where larger manganese-bearing rock fragments are found

·    under the terms of the existing Ore Supply Agreement, manganese ore is anticipated to be delivered to the Kilifi plant, which is located approx. 60km from the Port of Mombasa, at monthly rates of 10,000tpm

·    the Company and MMK are currently negotiating additional manganese ore supply agreements and looking at acquiring a number of projects to allow the Kilifi Plant to operate on a double shift basis with the potential to produce between 15,000tpm and 20,000tpm

·    the Company is due to commence processing operation at the Kilifi Plant in early September 2024 and continues to target run of mine ore feed to the Kilifi Plant of +20% Mn which will be upgraded to +30% manganese after processing through the Kilifi Plant

·    under the Company’s current budgets, cash flow projections and contracted operating costs for the supply of material, transportation and logistics for its export, the Kilifi Plant is expected to generate approx. US$250,000 to US$400,000 of monthly free cash flow commencing from mid Q4 2024 and that will be utilised by the Company to further expand its operating activities in Kenya and East Africa

Assay Results – August 2024

Jason Brewer, Marula Mining PLC CEO said:

“It’s extremely encouraging to receive such high-grade assay results of samples from one of the key areas of the manganese ore supply that has been secured to feed the Kilifi Plant.

“This high-grade zone of mineralisation that’s been identified beneath the main ore zone, has the potential to have a material impact on the underlying project economics of this operation and further demonstrates the potential that exists in Kilifi County.

“As we look to commence processing operations at the Kilifi Plant in September 2024, we also look forward to finalising the terms of additional manganese ore supply agreements and possible acquisitions, as well as finalising  the logistics and sales agreements.

“I look forward to updating shareholders further on our activities at the Kilifi Plant.”

The Directors of Marula are responsible for the contents of this announcement. This announcement contains inside information for the purposes of UK Market Abuse Regulation.

About Marula Mining

Marula Mining (AQSE: MARU A2X: MARU) is an African focused battery metals investment and exploration company and has interests in several high value mining operations and mine development projects in Africa: the Blesberg Lithium and Tantalum Mine, Northern Cape Lithium and Tungsten Project, Korridor Lithium Project and Kruisrivier Cobalt Mine, all in South Africa; the Larisoro Manganese Mine and Kilifi Manganese Processing Operation both in Kenya; the Kinusi Copper Mine, the Nyorinyori Graphite Project, the NyoriGreen Graphite Project and the Bagamoyo Graphite Project all in Tanzania and the Nkombwa Hill Project in Zambia. As we advance operations at these battery metals focused projects, Marula will continue to build and expand its interests in other high-quality projects in Africa.

Marula’s strategy is to identify and invest in advanced and high-value mining projects throughout East, Central and Southern Africa that the Directors believe would deliver returns for its shareholders. The Board and management team aims to establish Marula as a socially and environmentally responsible, sustainable, and profitable producer of critical metals and commodities that are of increasingly strategic importance to modern technologies and the global economy. Marula’s shares are traded on AQUIS Stock Exchange (AQSE) in London and A2X Markets in South Africa. Marula is exploring opportunities to admit its shares to trading on Kenya’s Nairobi Securities Exchange and South Africa’s Johannesburg Stock Exchange.

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