Kodal Minerals PLC provided an update on project development activities and general progress at its Bougouni Lithium Project in southern Mali. As announced on 15 November 2023, Kodal has received all funds related to the funding transaction for USD 117.75 million agreed between the Company and Hainan Mining Co. Limited ("Hainan"), comprising a USD 100 million investment from Hainan to acquire 51% of the Bougouni project company, Kodal Mining UK Limited ("KMUK"), and a further USD 17.75 million received for the subscription for new ordinary shares in Kodal Minerals plc at 0.5 pence per share.

Highlights: KMUK Management team established and completed review of project development plan, confirming USD 65 million capital expenditure estimate for Bougouni Lithium Project Stage 1 (using a dense media separation ("DMS") approach). Long lead items of DMS units and dual stream crushing modules ordered and work commenced on build of items. Mining contract finalised with a consortium consisting of Malian mining contractor EGTF Mining SARL ("EGTF") and Auxin Mining Services Mali SARL ("Auxin"), with costs consistent with feasibility study. The Mali Minister for Environment visited the Bougouni Lithium Project and endorsed the Company's development programme and development of the DMS processing site.

All weather access roads to the Ngoualana open pit and DMS processing site are complete. Mining contractor to mobilise to site in March to commence the earthwork and civil engineering works. Updated ESIA for Bougouni Project Phase 1 DMS approved by Mali's Department of the Environment in February; negotiations with local community groups on land compensation also progressing well.

Bougouni Project on track to commence production in Fourth Quarter '24 following the achievement of key milestones in First Quarter '24. Bougouni Stage 1 (DMS) is fully financed with all permitting in place, including environmental and social permits, with Kodal's Community Development Plan also recently approved by Mali's Environment Ministry.