Big news out in London AIM market after 4.30PM today Zulu Scoping Study Concentrate option US$127.3M NPV10 and 85.9% IRR, Lithium Carbonate option US$718.9m NPV10 and 80.4% IRR Premier African Minerals Limited ("PREM" or the "Company") is pleased to announce the results of a scoping study completed on its Zulu Lithium and Tantalum Project ("Zulu" or "Zulu Project") in Zimbabwe ("Scoping Study"). The Scoping Study has been prepared in compliance with the guidelines of SAMREC by independent South African mine planning consultants, Bara Consulting (Pty) Limited ("Bara Consulting"). The Scoping Study is the first study undertaken by PREM to evaluate the economics of developing: - An open pit mine and processing facility to directly produce spodumene and petalite concentrate (Concentrate Sales Option); and - A processing facility for a lithium carbonate plant (Lithium Carbonate Option) Results of the Scoping Study demonstrate excellent potential for developing a robust, low capital cost lithium project with low operating costs, strong cash flow generation capacity and significant upside potential through further Resource growth. Scoping Study (Concentrate Sales Option) Highlights: • Target annual production of 84,000 tonnes of spodumene concentrate and 32,500 tonnes of petalite concentrate • Pre-tax Net Present Value ("NPV") of US$127 million (10% discount rate) • Pre-tax Internal Rate of Return ("IRR") of 86% • Gross Revenue of US$1 billion (US$800/tonne spodumene concentrate price and US$400/tonne petalite concentrate price over Life of Mine • Initial Capital Cost of US$64 million • C1 Operating cost of US$486 per tonne of concentrate • Peak Funding Requirement US$38 million • 2-year payback (After-tax from the start of production) • Robust mine plan derived from Mineral Resources Estimate • Initial 15+ year mine life at an average strip ratio of 5.5:1 • Significant potential for additional mineralization close to the Main Zone
