AVZ Minerals Limited : - Activities Report for the Quarter ending 30 June 2021

AVZ Minerals Limited (ASX: AVZ or 'the Company') is pleased to provide the following report on its activities for the Quarter ended 30 June 2021.

AVZ Managing Director, Mr. Nigel Ferguson said: 'The Company has been extremely busy during the June Quarter progressing its flagship Manono Project on multiple fronts, with significant achievements reported in July in terms of a 2012 JORC Ore Reserves upgrade, a highly successful A$40 million (before costs) Placement and completion of the Manono FEED Study.

'Much work has also been undertaken with officials in the DRC Government with respect to securing the critical Mining Licence, as well as a Collaboration Agreement, Mpiana Mwanga HEPP Agreement and the Manono Special Economic Zone Agreement.' 'The Company acknowledges some previously reported indicative timelines for the issue of the above licence and agreements are taking longer than initially forecast due mostly to shifting Government timelines however, it must be said AVZ enjoys a supportive and collaborative working relationship with the DRC Government and as such, it expectsto secure all of the above licences and agreements in Q3/Q4 this year.' 'A significant amount of work has also been undertaken by AVZ's management team in relation to securing funding for the development of the Manono Project. As I have said on several occasions, the Company is actively engaging with various commercial banks, finance brokers, private equity investors and non-commercial lenders such as Pan-African Development Finance Institutions ('DFIs') to progress debt and equity funding agreements for the Manono Project.'

'The awarding of a Mining Licence for the Manono Project will be a significant catalyst to deliver binding project finance agreements and, ultimately, a Final Investment Decision ('FID') by the AVZ Board.' 'In the 21 July 2021 operational update, we indicated that the optimised DFS update will be released in July 2021, however the Board has decided to defer the document release as it undergoes further internal reviews ahead of a decision regarding the award of the Mining Licence.'

Mining Licence, Mpiana Mwanga Hydro-Electric Power Plant ('HEPP') Agreement, Collaboration Agreement and Manono Special Economic Zone ('MSEZ') During the June Quarter, AVZ's majority-owned DRC company, Dathcom Mining SA, lodged all the required documentation to supports its application for a Mining Licence for the Manono Project.

The DRC Government approved the draft inter-ministerial Decree relating to the draft Co-operation Agreement, the Company's Feasibility Study for the Mpiana Mwanga HEPP was validated by the Ministry of Hydraulic Resources and Electricity and positive negotiations continued around the Manono Special Economic Zone ('MSEZ') Agreement. The Company is confident of being granted the Mining Licence for the Manono Project during Q3/Q4 2021, together with the HEPP Agreement, Collaboration Agreement and a favourable MSEZ Agreement.

Project Finance Negotiations AVZ's management team continued to engage with various commercial banks, finance brokers, private equity investors and non-commercial lenders such as Pan-African Development Finance Institutions ('DFIs') to progress debt and equity funding agreements for the development of the Manono Project. The grant of a Mining Licence for the Manono Project will be a significant catalyst to finalise binding finance agreements and, ultimately, a Final Investment Decision from the Board of AVZ.

Updated Mineral Resource and Reserves

The Company updated its Mineral Resource of the Manono Project after including results from its nine-hole pit floor drilling program. The geological modelling confirmed the presence of high-grade, fresh pegmatite in all nine holes drilled on sections 7100mN to 7300Mn at Roche Dure. The additional information resulted in an upgrade of some 12 million tonnes of Inferred Resources to Indicated Resources. Subsequent to the end of the June Quarter, the Company upgraded its JORC Proved and Probable Ore Reserves estimate to 131.7Mt - an increase of 41.6% from the 93Mt reported in its April 2020 DFS. The average lithium grade increased by 3.1% from 1.58% to 1.63% Li2O while the tin grade of 990ppm remained the same but reported a 41% increase in contained tin metal to 130.3kt

Initial Exploration Target for Alluvial Placer Hosted Tin

The Company announced its initial Exploration Target defining the potential for alluvial tin hosted resources at its Manono Project. This statement was based on an independent review of historical exploration records produced by Zairetain, the previous operators of the historical mining operations at the Manono Project. The review was conducted by independent geological and mining consultants, Behre Dolbear International Limited. The Exploration Target was in addition to the existing JORC 2012 compliant hard rock tin and tantalum Mineral Resource Estimates of 125 million tonnes @ 175ppm Sn and 26ppm Ta (low-grade tin domain) and 275 million tonnes @ 962ppm Sn and 38ppm Ta (high-grade tin domain) at a 0.5% Li20 cut off published in the 21 April 2020 DFS Study.

Kabondo Dianda Intermodal Staging Station

AVZ's 100% owned DRC logistics and haulage company, Nyuki Logistics ('Nyuki'), secured a 1,227-hectare site at Kabondo Dianda that will play a major part of the Company's plans to export products from the Manono Lithium and Tin Operation ('MLTO') through the ports of Lobito in Angola and Dar es Salaam in Tanzania. Nyuki was formed as a dedicated logistics arm for MLTO, responsible for commercial and operational management of MLTO's logistics requirements, including road haulage, rail and port services and logistics infrastructure maintenance under a service agreement with Dathcom Mining SA.

Placement

The Company completed a $40M placement just days after the end of the June Quarter with strong support received from high-quality institutional, sophisticated and professional investors. Proceeds from the placement, will allow the Company to increase its interest in the Manono Project from 60% to 75%, negotiate project financing from an enhanced balance sheet position, assist to establish a working capital and contingency cost buffer during project development and enhance AVZ's limited early capital works program prior to making a Financial Investment Decision.

Contact:

Mr. Jan de Jager

Tel: [phone]

Email: [e-mail]

(C) 2021 Electronic News Publishing, source ENP Newswire