Horizonte Minerals Plc reported that it is continuing to make good progress on the construction of its 100%-owned Araguaia Nickel Project (‘Araguaia’ or ‘the Project’) in Brazil which remains on-budget and on-schedule to commence production in first quarter-2024. As of 30 November 2022, approximately 28% of the total Project construction programme has been completed. Earthworks are significantly advanced and due to be concluded in January 2023.

The detailed engineering works are 87% complete and due to be concluded during first quarter 2023. Approximately 75% of capital expenditure has been awarded to date, amounting to over USD 415 million, and the key long lead items are running to schedulewith the furnace shell due on site in late December and the rotary kiln due to be delivered in early first quarter 2023. Horizonte's Management will host a webinar on, 15 December 2022, at 10:00am GMT to discuss the construction progress.

CONSTRUCTION PROGRESS SUMMARY: Health and Safety: The lost-time injury frequency rate (‘LTIFR’) at Araguaia in October 31, 2022 was 0.00 and the total recordable injury frequency rate (‘TRIFR’) was 1.45 based on a 12-month rolling average, which are calculated per million hours worked. Company have continued focus on embedding the critical risk controls with growing workforce and reinforcement of the Horizonte Golden Rules. To complement these activities, Company continued to implement tools to increase involvement and participation by contracting partners in safety systems and processes.

Year to date over 1,600 internal safety audits have been conducted and over 1,550 safety plan observations have been completed. In the quarter, the Company conducted a campaign of occupational hygiene monitoring where worker exposure to particulates, gases, noise and vibration were monitored. These activities, combined with routine medical surveillance, ensure that workforce remain fit and healthy.

Construction activities: The reinforced primary crusher wall has now been completed, the next stage is to contour and hydroseed the pad sides and install the reinforced concrete base where the primary crusher will be mounted. civil works are making good progress, where the electric arc furnace foundations have been successfully completed and the furnace baseplate, which is already on site, is due to be mounted in the coming weeks, marking the beginning of the electro-mechanical instillation phase. The construction of the main 125 kilometre, 230kV powerline to power the process plant, is advancing along four work fronts.

Pre-assembly of the tower structures is ongoing with drilling and concreting of the tower foundations progressing to schedule. Construction of the main substations at the mine site and connection point has commenced. Environmental activities: In the Company's second quarter of active construction, environmental programs remained focussed on avoidance and mitigation of impacts.

Fauna protection programs included active relocation of animals ahead of clearing for construction activity. To date over 140 individuals of 55 species have been rescued through this program. The Company's teams also continued collecting plant propagules (seeds, seedlings and similar) to ensure species and genetic diversity is maintained in the nursery plant generation programs. The biodiversity conservation centre construction and plant nursery expansion are now largely complete.

The nursery is expected to deliver 50,000-60,000 native tree seedlings per year for rehabilitation and the generation of new green corridors. As part of the Company's activities towards net positive impact on biodiversity, Horizonte commenced afforestation of pasture affected creek lines that had been impacted by long term agriculture and over-grazing. Associated with the Company's biodiversity objectives, a study of invasive plant species was completed, forming part of the ongoing update of Horizonte's Biodiversity Action Plan.

Social activities: In December 2022, Horizonte was proud to be recognised at the Brazilian Association of Human Resources awards as the winner in the ESG category for local professional training program - Transforming Horizons. The program, conducted in partnership with Brazil's leading national industrial training provider, Serviço Nacional de Aprendizagem Industrial (SENAI) has delivered over 20 accredited training courses (12 completed to date), with over 200 graduates, 32% of whom are female and 14% are youth. In just seven months since inception, the Company has already employed 28 graduates at Araguaia.

POWER PURCHASE AGREEMENTS In November, binding power purchase agreements were executed covering the first 10 years of Araguaia's production, locking in globally competitive prices, 30% below the Feasibility Power cost assumption. Representing approximately a third of Araguaia's operational cost, these competitive electricity prices will help establish the Company in the lowest cost quartile globally. Further, in line with the Company's target of operating in the lowest quartile of CO2 emissions, Horizonte will leverage the abundant hydropower available in Brazil.

Through this, Horizonte is able to not only differentiate itself against global peers from a cost perspective, but also from an environmental standpoint. PROJECT FINANCING ACTIVITIES: As announced on 8 December 2022, Horizonte satisfied all conditions precedent for the first utilization under the previously announced senior secured project finance debt facilities ofUSD 346.2 million (the ‘Senior Debt Facilities’) and is now in receipt of the first tranche of funds from the Senior Lenders. This milestone demonstrated that the Company has made significant progress on the Project development schedule and that is has been able to satisfy to the Senior Lenders that the Company has: made significant progress with construction, and in line with the schedule; awarded all of the key material contracts, including equipment supply, Engineering Procurement and Construction Management (EPCM), port access and power supply; have a long-term offtake in place for 100% of Araguaia's production from line 1 with a high quality counterparty in Glencore; and have built out a high-quality team to deliver the Project.