MMG Limited announced that the Board has approved the development of the Kinsevere Expansion Project at the Company's Kinsevere mine in the Democratic Republic of the Congo. This project will mine and process the copper sulphide and cobalt resource located at the Kinsevere mine and includes the installation of new facilities and associated processing methodology involving a flotation plant, roaster system and cobalt processing circuit into which the existing SX-EW plant will be integrated. The project will extend the life of the Kinsevere operation for at least 13 years from 2022 and, once fully ramped up, will result in total annual production of up to 80,000 tonnes of copper cathode and between 4,000 - 6,000 tonnes of cobalt in cobalt hydroxide.

Construction will commence in 2022, with first cobalt production expected in 2023, and first cathode production from the sulphide orebody utilising the new processing facilities expected in 2024. Kinsevere will continue to produce copper cathode from the remaining oxide orebody during the construction phase, with annual copper production expected to remain around 2021 levels of approximately 50,000 tonnes over this time. Total capital expenditure for the project is expected to be in the range of USD 550 - USD 600 million and will be funded through a combination of available cash reserves and borrowings.

The Company expects to achieve C1 costs of USD 1.30 - USD 1.40/lb when at a steady state of operation. As a result of the completion of the Feasibility Study and Board approval of the Kinsevere Expansion Project, MMG has also released an updated Mineral Resource and Ore Reserves for Kinsevere to the Hong Kong Stock Exchange. The key changes are that Kinsevere's copper Ore Reserves (contained metal) have increased by 600%, (and approximately 33 million tonnes of ore) and adding cobalt Ore Reserves of approximately 29,000 tonnes (contained metal).

The Board has authorised MMG Kinsevere SARL (MMG Kinsevere) to enter into certain major contracts including for the construction of plant, development of infrastructure and purchase of equipment to progress the Kinsevere Expansion Project. Some of these contracts may be connected transactions for purposes of Chapter 14A of the Listing Rules that will be subject to the approval of the Board. The Company will comply with any applicable announcement and/or shareholders' approval requirements under the Listing Rules in respect of those contracts.

The Board is also pleased to confirm that the previously announced litigation between MMG Kinsevere and Mining Company Katanga SARL (MCK) has been settled and the parties have agreed that all legal proceedings be withdrawn. In partial consideration of such settlement, a contract for mining services at the Kinsevere mine has been awarded to an affiliate of MCK.