Denarius Metals Corp. announced the results of a Pre-Feasibility Study that supports the restart of the Aguablanca Nickel-Copper Project located within the Monesterio municipality, Extremadura, Spain, approximately 88 km SW from the Company's Lomero Project. The Company owns 50% of the Aguablanca Project through its wholly-owned Spanish subsidiary, Alto Minerals S.L.U. The PFS was prepared in accordance with the Canadian Institute of Mining Metallurgy and Petroleum Definition Standards incorporated by reference in National Instrument 43-101 with an effective date of March 24, 2024.

All dollar amounts are quoted in U.S. dollars, unless otherwise noted. The Aguablanca Project is located in southwestern Spain, approximately a 45 minute drive north of Seville. Aguablanca is one of the only deposits in Spain able to produce nickel and copper.

The mine operated for 11 years from 2005 through 2015, much of that time by Lundin Mining, milling over 14 million tonnes of ore. The mine and its associated 5,000 tpd processing plant have remained idle since 2015 but have been well maintained. Underground mining has been approved by the state mining authority and the Environmental Impact Study approved in 2017 is still in force.

Capital costs over the LOM are projected to total $36.2 million, including a 10% contingency. The Aguablanca Project is currently in a position to quickly restart mining and processing operations. The 5,000 tpd processing plant has been maintained in good condition over the years since it was last operated by Lundin Mining.

Total capital expenditures in 2024 of $6.1 million include approximately $2.7 million to restart the processing plant, $1.3 million for surface mobile equipment and underground infrastructure and $1.6 million to dewater the existing open pit to gain access to the underground mine workings. Dewatering is expected to commence in the second quarter of 2024 following receipt of the permit for the Water Use Concession. Capital expenditures in 2024 also include approximately $0.5 million associated with the commencement of underground mine development.

From the start of production in 2025 through 2030, capital expenditures are projected to total $30.1 million, of which the majority represents an ongoing mine development program amounting to $22.5 million and an ongoing exploration and delineation drilling program totaling $4.2 million. The remaining $3.4 million of capital expenditures over this period include a cemented rock fill plant, tailing facility lift, surface mobile equipment and underground infrastructure. Development and exploitation activities in the underground mine will be carried out by a local mine contractor, alleviating the need for a significant upfront investment in underground mining equipment.

The approximately 2,403 tpd production profile is sourced from up-hole sublevel extraction and traditional long-hole open stoping employing cement rock fill. The top half of the mineralization is scheduled to be extracted on 25-meter lifts day-lighting to the bottom of the pit. When four horizons have been exhausted, surface backfill will be hauled from the existing waste dump to backfill the pit to the 181-meter elevation.

The processing plant will produce a nickel-copper concentrate from the material sourced from the Aguablanca underground mine and will operate four days per week at an average feed rate of 199 tph. This schedule will result in the processing of 877,200 tonnes per year, approximately 50% of the plant's total capacity. The remaining plant capacity is expected to be used in the future for material to be sourced from the Company's Lomero Project.

The total process department workforce, including operations, maintenance and lab services, will include 63 employees. While operating with this schedule, annual electrical power consumption will be in the 39,650 MW-hours range. Ore crushing will include primary and secondary stages in an open circuit.

Ore will be ground in two stages. A SAG mill will be the primary grind stage with over size discharge product going to pebble crushers, then returning to the SAG mill. SAG mill undersize product reports to the cyclone bank.

Cyclone underflow will flow to the second grind stage ball mill which will run in closed circuit with cyclones. Cyclone overflow product will be conditioned with reagents prior to copper flotation. Cleaned copper concentrate will report to the concentrate thickener.

Copper flotation tailing will again be conditioned with reagents before reporting to the nickel flotation circuit. Cleaned nickel concentrate will report to the same concentrate thickener as the copper concentrate. Final nickel flotation tailing will be pumped to the tailing thickener with the underflow product being pumped to the tailing storage facility.

Concentrate thickener underflow will be dewatered with filter presses. The dewatered concentrate will be stored in a concentrate shipping area prior to being shipped to the smelter. Concentrate production over the LOM at the Aguablanca Project is estimated to total 406,359 tonnes with average grades of 6.4% nickel, 6.4% copper, 1.42 ounces of gold, 2.89 ounces of platinum and 2.52 ounces of palladium.

The Company is currently carrying out an international tender process to identify a long-term offtake arrangement suitable for the sale of these concentrates. The PFS assumes that the concentrates will be delivered FOB to the port of Huelva in Southern Spain. The payable quantities of nickel (75%), copper (60%), gold (40%), platinum (40%) and palladium (40%) included in the PFS are based on early indicative terms received through this process.

Actual terms may vary when the long-term offtake arrangement is finalized. In conjunction with the PFS, the Company announced a MRE for the Aguablanca underground mine with an effective date of March 24, 2024. Mineral resources in this news release were estimated in accordance with the CIM Definition Standards for Mineral Resources and Reserves, prepared by the CIM Standing Committee on Reserve Definitions and adopted by the CIM Council on May 14, 2014.

The MRE is based on 496 diamond drillholes containing 25,025 assay intervals. Drilling includes two exploration holes which were recently drilled in 2023. Outlier grades were capped prior to compositing to 24,250 two-meter intervals.

Nickel, copper and cobalt mineralization was estimated using ordinary kriging techniques based on detailed variography analysis of the mineral deposit. Gold, platinum and palladium mineralization was interpolated using inverse distance estimation techniques.