Celsius Resources : Opuwo Project Update and Board Changes

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OPUWO PROJECT UPDATE AND BOARD CHANGES

Celsius Resources Limited ("Celsius" or "the Company") wishes to provide an update on the status of its 95% owned Opuwo Cobalt Project ("Opuwo Project") in Namibia.

As announced in late 2018, the Company has been completing trade-off and optimisation studies as an initial phase of the Pre-Feasibility Study ("PFS") for the Opuwo Project, with a view to providing an updated Scoping Study to the market during Q1, 2019. Work currently in progress includes updated resource modelling to incorporate new drilling completed since the declaration of the maiden Mineral Resource, and metallurgical test work aimed at verifying assumptions made in the Scoping Study about recovery of the value metals from the Opuwo Project mineralisation using conventional sulphating roast techniques.

A positive economic outcome from the Scoping Study is highly dependent on both a robust cobalt price and successful results from the metallurgical test work. The initial results from the current metallurgical program have demonstrated that further test work is required to optimise the process for recovery of the value metals (including cobalt) from the mineralisation.

In light of this and given the current and near term forecast pricing for cobalt, the Company has decided it is the best interests of shareholders to significantly slow work on the evaluation of the Opuwo Project, until such time as the cobalt price improves markedly from current levels.

Studies with long lead times, such as environmental studies as part of the Environmental Impact Assessment required for the PFS will be continued, as will relatively low cost metallurgical process and mine planning work required to confirm the optimum mining and processing scenarios for the project.

The Opuwo Project hosts a substantial cobalt resource located in an excellent jurisdiction for mining and the Company remains confident that the project continues to represent a key opportunity when the cobalt price improves and/or with successful optimisation of metallurgical recovery of the value metals from the mineralisation. One or both of these outcomes could significantly change the Board's view about the Opuwo Project and, should they occur, the Board will reassess the status of the Opuwo Project and accelerate work programs in response.

As part of these changes, given the significantly reduced executive time commitment required for the Company in the forthcoming period, and in the interests of preserving the Company's strong cash position, Managing Director Brendan Borg will step down to a Non-Executive Director role, effective March 1, 2019, and additionally, will consult to the Company during a 3 month handover period, and thereafter on an ad-hoc basis. The Company's other current Executive Director, Mr. Pine van Wyk, will remain as Project Director to oversee the limited ongoing work associated with the Opuwo Project, and ongoing corporate matters.

Separately, Laurent Raskin, has tendered his resignation from his position as Non-Executive Director. The Company would like to thank Mr.Raskin for his service and wish him well in his future endeavours.

The Company remains in a very strong cash position, with approximately $9.6 million in cash reserves as at December 31, 2018, and plans to evaluate additional, complementary opportunities in the battery minerals space.

Level 2, 22 Mount Street,	P: [phone]
Perth WA 6000	F: [phone]
PO Box 7054, Cloisters Square,	[e-mail]
Perth WA 6850	www.celsiusresources.com.au