Cyprium Metals : Nifty Copper Project Restart Study

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	Not for release to US wire services or distribution in the United States
11 March 2022	ASX ANNOUNCEMENT

Nifty Copper Project Restart Study

HIGHLIGHTS

• Current copper price ~USD4.60/lb
• Oxide C1 costs of USD1.91/lb and C3 costs of USD2.82/lb
• Average production of 25,000 tpa copper cathode
• Oxide cathode production 146,100 tonnes copper metal
• Pre-productioncapital AUD149M
• Positive engagement with Financiers now accessing final study and extensive data room
• NPV @7% of AUD277M with an IRR of 37% (post tax)
• Mineral Resource Estimate (MRE) to include 2021 drilling & inferred resource conversion
• Oxide mine life 2023-29 at ~6.3 years (pre-MRE upgrade) with sulphide potential +20yrs
• Metallurgical testwork confirms 85% recovery in Retreat and 90% in Oxide Pit material
• Free cashflow AUD544M
• Payback in 3 years
• Regulatory approvals submitted and on track
• Sulphide heap leach metallurgy testwork commenced

NEXT STEPS

• Finalise the Financing of the project during Q2 2022
• Update the Mineral Resource and in pit inventory, including expansion options
• Complete financing and final government approvals post FID
• Commence refurbishment and construction post finance and government approvals
• Plate copper metal in the second half of 2023

Cyprium Metals Limited (ASX: CYM, Cyprium, or the Company) is pleased to announce the results of the Restart Study for the Nifty Copper Project which has highlighted a robust initial oxide project with the potential for strong financial returns.

The Nifty Copper Project is 100% owned by Cyprium and the Restart Study results are reported on a project post-tax basis with all currency quoted in Australian dollars (AUD) unless otherwise specified.

ABN 48	002 678 640	1/437 Roberts Road
T +61	8 6374 1550	Subiaco, WA, 6008
	ASX: CYM	www.cypriummetals.com

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The basis of the analysis is the JORC 2012 Mineral Resource Estimate released in November 2021 (refer to CYM ASX release dated 17 November 2021 titled 'Updated Nifty Copper Mineral Resource Estimate') and does notinclude the recent released drilling results from the within the South-West and South-East of the presented pit shape. The study considers and includes measured and indicated resources and does not include inferred resources contained within the pit shape.

Managing Director Barry Cahill commented:

"We are very pleased to announce the results of the Nifty Copper Project Restart Study. The fundamentals of the project are robust, which excludes the addition of an updated Mineral Resource Estimate to be completed in the coming months and the conversion of inferred resources during the pit mining.

Metallurgical optimisation continues to have success with our heap leach metallurgy knowledge clearly showing an improved treatment path for the oxide material considering over 200,000 tonnes of copper metal cathode has already been extracted and produced using a heap leach process on this site.

A great effort by the team to get this study completed within a year of acquiring the project. We now look forward to getting the finance completed and accelerating construction to plating copper metal by the second half of next year."

Cautionary Statement

The Restart Study referred to in this ASX announcement is intended to be used for the process of financing the construction of the Nifty Copper Project by outlining the technical, commercial and profit potential aspects of the Project. The technical and economic study has a number of sections of study that have accuracy ranges from ± 5% to ± 20% depending on the materiality of the section. The overall accuracy of the Study is judged to be in the order of ± 10% which would enable the estimate of ore reserves. Notwithstanding that the information contained in this release is accurate in presenting the investment case determined from the Study it remains a summary and it is not possible to release to the market all the background data and studies undertaken to compile it. Further there is information omitted from this summary (and from the background data) that directly relates to Cyprium's intellectual property in the project, which it is therefore not possible to release.

The project NPV and favourable economic outcome considers and includes re-treatment of and copper production from the historical heap leach material, however the 2012 JORC Code is unable to be applied to accommodate the existing historical heap leach material in terms of Mineral Resource classification. The tonnes and grade of the material is based on historical production reconciliation as a heap leach quantity ought to be, that is a stockpile of material less the physical metal extracted thereof.

The open pit ore mined has been calculated and considered as applicable to be quoted as an open pit reserve including only measured and indicated resources used in the determination of the quantity and grade. However, under the JORC 2012 Code, the Company is unable to quote as such as the economics are linked to the treatment of heap leach material which is outside a JORC classification as described in the point above.

The directors of the Company consider this to be a fair and balanced summary of the study undertaken. However, given the uncertainties involved in any study of this type, and the assumptions made, investors should not make any investment decisions based solely on the results of the Restart Study and/or the summary contained herein.

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Forward Looking Statements

All dollar amounts are in Australian dollars unless otherwise indicated.

This announcement may contain certain statements and projections provided by or on behalf of Cyprium Metals Limited with respect to the anticipated future undertakings. These forward-looking statements reflect various assumptions made by or on behalf of Cyprium.

Accordingly, these statements are subject to significant business, economic and competitive uncertainties and contingencies associated with the mining industry which may be beyond the control of Cyprium which could cause actual results or trends to differ materially, including but not limited to price and currency fluctuations, geotechnical factors, drilling and production results, development progress, operating results, reserve estimates, legislative, fiscal and regulatory developments, economic and financial market conditions in various countries, approvals and cost estimates, environmental risks, ability to meet funding requirements, share price volatility. Accordingly, there can be no assurance that such statements and projections will be realised. Cyprium makes no representations as to the accuracy or completeness of any such statement of projections or that any forecasts will be achieved.

Additionally, Cyprium makes no representation or warranty, express or implied, in relation to, and no responsibility or liability (whether for negligence, under statute or otherwise) is or will be accepted by Cyprium or by any of their respective officers, directors, shareholders, partners, employees, or advisers as to or in relation to the accuracy or completeness of the information, statements, opinions or matters (express or implied) arising out of, contained in or derived from this announcement or any omission from this announcement or of any other written or oral information or opinions provided now or in the future to any interested party or its advisers. In furnishing this announcement, Cyprium undertakes no obligation to provide any additional or updated information whether as a result of new information, future events or results or otherwise.

Nothing in this material should be construed as either an offer to sell or a solicitation of an offer to buy or sell securities. It does not include all available information and should not be used in isolation as a basis to invest in Cyprium.

Not For Release or Distribution in the United States of America

This announcement has been prepared for publication in Australia and may not be released to US wire services or distributed in the United States. This announcement does not constitute an offer to sell, or a solicitation of an offer to buy, securities in the United States or any other jurisdiction. Any securities described in this announcement have not been, and will not be, registered under the US Securities Act of 1933 ("US Securities Act") and may not be offered or sold in the United States except in transactions exempt from, or not subject to, registration under the US Securities Act and applicable US state securities laws.

Refer to the Investor Presentation accompanying this announcement for further Important Notices and Disclaimers

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Nifty Copper Project Restart Study Summary

Cyprium Metals is pleased to present the Restart Study for the Nifty Copper Project. The study demonstrates a robust heap leach solvent extraction-electrowinning(SX-EW) operation in the initial stage of the project. The Restart is focused around the first phase of heap leach retreat and oxide open pit, and it is envisaged that the life will extend to the sulphide stage of the open pit with a considerably larger resource available. The sulphide study has already commenced with design optimisation and metallurgical testwork currently being undertaken.

Introduction to Nifty

The Nifty Copper Project comprises ~266km2 of mineral tenements of which ~234km2 is granted as a State Agreement Act Mining Lease (M271SA) and the remainder are pending conversions from three mining lease applications (covering the East Nifty bore field extensions) to mining leases. There are many miscellaneous licenses held by third parties which co-exist on the properties covering existing bore fields, and other essential mine infrastructure including a gas spur pipeline.

The tenure is held via Cyprium's 100%-owned subsidiary, Paterson Copper Pty Ltd, with the Nifty mine and infrastructure and associated tenure held by Cyprium's operating subsidiary Nifty Copper Pty Ltd. The Paterson Copper Pty Ltd assets are in the northeast Pilbara region of Western Australia, approximately 330km east-southeast of Port Hedland and 65km west of the Telfer Gold Mine.

The Nifty operation has produced more than 700,000 tonnes of copper metal between commencement of the oxide operation in 1993 and November 2019, when the mine was placed into care and maintenance. The single deposit is still ranked in the top twenty copper mineral resources by insitu copper metal tonnes in Australia, with considerable potential to increase this further.

A 2012 JORC compliant Mineral Resources estimate of 732,200 tonnes contained copper within an open pit mine, with substantial infrastructure including:

• 2.8 Mtpa sulphide concentrator (in care and maintenance since November 2019).
• 25 ktpa copper cathode heap leach SX/EW facility (in care and maintenance since January 2009).
• 21 MW gas turbine power station and gas pipeline.
• Water supply and reticulation systems including multiple bore fields.
• Mine village with a capacity of approximately 400 persons.
• Sealed all weather airstrip.
• Upgraded 4G communications infrastructure.

Restart of the heap leach SX/EW facility at the historic Nifty Copper Operation will involve the following:

• Recommencement of open pit mining.
• Refurbishment of existing heap leach agglomeration, stacking/materials equipment, and irrigation systems.
• Refurbishment of the existing leach pads to place new oxide material on for leaching.
• Construction of additional leach pad capacity for retreatment of the existing heap leach pad material.
• Refurbishment of existing SX-EW facilities.
• Re-instatementof supporting reagent/utility systems.

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Table 1: Summary of Project Metrics

Mineral Resource
-	Oxide		Mt	11.9
-	Sulphide		Mt	33.9
-	Total		Mt	45.9
-	Oxide Contained Copper	1.1%	Kt	135.5
-	Sulphide Contained Copper	1.8%	Kt	596.7
-	Total Contained Copper	1.6%	Kt	732.2
Open Cut Waste mined	Strip ratio 6.0	Mt	52.9
Open Cut Ore mined		Mt	8.8
Re-treat ore tonnes stacked		Mt	17.1
Total ore stacked		Mt	25.9
Average Grade		%	0.65
Average Recovery		%	87.3
Copper Metal Cathode Production Capacity		Ktpa	25.0
Copper Metal Cathode Produced		Kt	146.1
Copper Metal Cathode Produced		Mlbs	322.0
Life of Oxide Heap Leach Operation (post		Years	6.3
construction)
Revenue		USD/lb	4.08
C1 Costs		USD/lb	1.91
C2 Costs		USD/lb	2.56
C3 Costs		USD/lb	2.82
M1 Margin		%	113
M2 Margin		%	59
M3 Margin		%	45
Pre-production Capital Expenditure		AUDM	149.3
Operating Cash Flows (EBITDA)		AUDM	822.8
Free Cash Flows (EBIT)		AUDM	543.7
NPV Pre-Construction (after tax) @7% discount rate		AUDM	277.3
IRR (after tax)		%	37
Project payback post construction		Years	3.0

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