Eurasia Mining : West Kytlim Update

EURASIA MINING PLC

('Eurasia' or the 'Company')

West Kytlim Update

Eurasia Mining plc, the palladium, platinum, rhodium, iridium and gold producing company, is pleased to provide an update on its West Kytlim project in the Urals, including the completion of the Technical Project report for West Kytlim, which has now been submitted to the Russian authorities, and further information in respect of the definitive feasibility ('DFS'), the approval of which was announced by the Company on 21 January 2021.

Completion of the Technical Project for the entire deposit of West Kytlim

With the successful DFS development by GIP (an independent technical and engineering consulting company) and the state approval, the Company engaged GIP to develop the Technical Project for the entire West Kytlim deposit (the 'Technical Project') including an ore schedule for all areas/pits (Malaya Sosnovka, Klyuchiki, Bolshaya Sosnovka, etc). The Technical Project prepared by GIP has been reviewed by Eurasia technical team and has been submitted to Environmental and Industrial Supervision Service (Rostechnadzor).

The Technical Project is based on concurrent production at three pits, the first two being Kluchiki and Bolshaya Sosnovka (the largest pit at the entire deposit of West Kytlim): mining at Kluchiki (mined through 2019 and 2020 seasons) is ongoing whilst Bolshaya Sosnovka is being prepared for mining (please see our website for recent photographs from site).

Minutes of the DFS Formal Approval

The highlights of the minutes of the formal meeting of the Russian State Committee on Reserves are as follows:

· A set of parameters was defined as final and permanent for the West Kytlim deposit. These include the deposits complexity: number 2 (simple) on a scale of 1 to 4, cut off grades in defining the limits of an ore block, minimal thickness of an ore block, as well as other technical deposit characteristics*.

· The DFS as submitted and now approved is not the Company's mine plan but allows for mining atseveral open pits concurrently.

· Several seasons of operational data have allowed reclassification of reserves and resources such that all of the reserves are now in B, C1 and C2 categories (i.e. ready for mining).

· The total mineable reserves B+C1+C2 are 4,477kg (of which over 65% are B and C1 categories) raw PGM (inclusive of platinum, palladium, iridium, rhodium and gold reserves and not including any resources, please see the further information on the reserves below).

· Operational data has now demonstrated exploration data to be understated both in terms of grade and dimensions of ore bodies. The total difference calculated against three years of operational data stands at 43% (i.e. the minable reserves calculated to 4,477kg raw PGM may, based on operational data, finally contain 6,402kg Raw PGM).

The last bullet above confirms the prudent and conservative approach to the minable reserves estimation by Eurasia.

* ^{Some technical calculations require a metals price basket as input and it should be noted the metals price period used for the DFS was the year from August 2019 to September 2020. The price used for Platinum, for example was 1,181RUR/g versus a current (15 March 2021; source Kitco.com) 2,836 RUR/g. For this reason the Company is afforded flexibility in determining the final mining parameters applied to the projects development.}

Current approved mineable reserves at the West Kytlim Project (Tipil and Project Flanks not included in the table)

Russian Reserves Category	Gravels	Raw PGM1,	Native Free Au2
	'000 m3	kg	Kg
В+С1	9,329	2,920	66
С2	4,430	1,557	10
В+С1+С2	13,760	4,477*	76

Notes on the above:

*The Reserves and resources stated are the minable reserves and resources of the project (while actual reserves at production are higher, please see the last point in the highlights above). Eurasia owns 68% in West Kytlim.

¹Raw PGM occurs as nuggets of iso-ferrum PGM containing platinum, palladium, iridium and rhodium as well as gold.

²Further gold occurs as native gold nuggets which are also recovered separate to gold contained in iso-ferrum PGM nuggets.

The report further states an amount of 21,600kg Raw PGM as an author's calculation of P₁ category for the metallogenic potential of the district surrounding the mine for which exploration licences have been issued or are being progressed.

Equivalence between Russian and Western resource project approval and development stages.

The DFS report submitted for approval is, per the Russian Natural Resources industry nomenclature, referred to as a TEO of Permanent Conditions ('TEO') and sets out the parameters by which the resource and reserve may be defined, a further resource and reserve calculation with which to update the state balance, and a summary project development scheme including ore beneficiation and proposed metallurgical processes. The report is considered to be equivalent in scope and detail to a Definitive Feasibility Study (DFS) as defined in for example the JORC Code. The subsequent reporting requirement which falls directly after the now approved TEO/DFS is the Technical Project as described above.

Rehabilitation

Rehabilitation activities have been ongoing every year since 2016 with the rehabilitation programme for 2020 successfully completed to date.

Environment, Social and Governance (ESG) Standards Adopted

West Kytlim is a unique operation due to the following:

· open pit nature of the operations

· no blasting

· stripping, excavation and hauling

· no chemicals used in the production process

· water being fully recycled

· ongoing rehabilitation with recovery back to previous land use within 5 to 10 years post mining.

The above-mentioned factors make West Kytlim not only a low cost PGM producer (on the bottom of the global cost curve), but also an environmentally friendly (green) operation that is important for Eurasia's focus on best practice Environmental and Social Governance principals.

The environmentally friendly nature of Eurasia's mining process and indeed of PGMs themselves (in terms of their applications as catalysts reducing emissions and in fuel cells) have already been recognised by the inclusion of Eurasia into the relevant ESG indexes and portfolios as announced via RNS on 17 February 2021. Eurasia's full ESG compliance is a focus of institutional investors including BlackRock, Fidelity, KLP, Premier Miton, TIAA and others that have become shareholders in the Company within the last 12 months.

West Kytlim Flanks license application progress

The Company would like to clarify that it is in the advanced approvals of the license surrounding the West Kytlim license referred to as the West Kytlim Flanks, a final award of the license is expected soon. The outline of the area was revised to the east of the license and resubmitted in August 2020. The second application has to date received all the approvals and awaits a sign off by Federal Ministry for Natural Resources. The Company will continue to pursue this approval so that the further resources in the area may be developed, however in the medium-to-long term Eurasia's production expansion program is covered by the fully approved and issued Tipil license (24.5km²) and the current production license (21.5km²) valid till 2040.

More information about the Tipil license is set out in the Company's announcements of 10 August 2020, 9 April 2020, 4 December 2019 and 17 June 2019.

More information about the West Kytlim Flanks is set out in the Company's announcements of 25 August 2020, 4 Dec 2019 and 17 Dec 2019.

Comments

Christian Schaffalitzky, Executive Chairman commented: 'We are pleased to be making very significant progress in building out the mine at West Kytlim. The Company is delivering on a phased expansion with careful and minimal capital outlay at a fully de-risked low cost PGM mining asset, quite unique globally being the largest of its kind. We welcome the recent growth in our metals price basket especially in iridium and rhodium and look forward to updating further from West Kytlim in due course. The Directors are also delighted with the institutional investors recognising the fundamentals of Eurasia and its compliance with the ESG standards, while the Company with its advisers are making progress with the strategic options available for Eurasia. Further announcements will be made in due course'.

Christian Schaffalitzky, FIMMM, PGeo, CEng, is a director of the Company. He has reviewed the update and consents to the inclusion of the exploration information in the form and context in which it appears here. He is a Competent Person for the purposes of the reporting of these results.

About Eurasia Mining Plc

Eurasia Mining plc is a palladium, platinum, rhodium, iridium and gold producing company, operating the established West Kytlim Mine in the Urals, and also the operator of the Monchetundra Project comprising two predominantly palladium open pit deposits located 3km away from Severonickel, one of Norilsk Nickel's largest base metals and PGM processing facilities, near the town of Monchegorsk on the Kola Peninsula.

Glossary and further notes;

The Russian state commission on mineral resources (GKZ), prescribes the grid density for drilling and trenching, based on the type of deposit, size, shape and complexity.

For deposits of Complexity group 2, such as West Kytlim, B and C1 category reserves may be considered equivalent to a Proved mineral reserve as defined in the JORC Code, while C2 reserves may fall into the Proved or Probable Reserve categories.

A GKZ P1 Resource is generally considered to be equivalent to an Inferred Mineral Resource. For more information see for example a 2016 study by Micon International Mineral Industry Consultants https://www.micon-international.com/ru/mineral-resource-reporting-differences-between-cim-jorc-and-others/.

Milligrams per cubic metre, (abbreviated to mg/m³), is a unit measure of ore grade in platinum and gold placer deposits.

ENQUIRIES:

Eurasia Mining Plc

Christian Schaffalitzky/ Keith Byrne

[phone]

SP Angel Corporate Finance LLP (Nomad and Joint Broker)

Ewan Leggat / David Hignell / Adam Cowl

[phone]

Optiva Securities (Joint Broker)

Christian Dennis

Tel: [phone]

Market Abuse Regulation (MAR) Disclosure

Certain information contained in this announcement would have been deemed inside information for the purposes of Article 7 of Regulation (EU) No 596/2014 until the release of this announcement.