Expansion of Australian Cobalt Interests

MetalNRG plc

('MetalNRG' or the 'Company')

Expansion of Australian Cobalt Interests

MetalNRG plc (NEX:MNRG) the natural resource investing company quoted on the NEX Exchange Growth Market in London is pleased advise that the Company has added additional cobalt prospective ground to augment the original licence applications announced on 29 June 2017.

The additional ground will form a new project area to be named Palomino North, and materially increases the area under licence application.

The Company continues to examine, with its partners, additional cobalt opportunities in the area and therefore for commercial sensitivity reasons has limited the specific licence information revealed in this announcement.

Further information will follow at the appropriate time.

Licence areas included have been selected utilising historic work undertaken on the properties which has demonstrated cobalt prospectivity notably through the identification of high grade stream sediment results. Moreover, the licence application area has been secured following the statutory reduction in ground holding by another company who themselves were focused on the development of non-cobalt opportunities.

The Company can also confirm that MetalNRG Australia Pty Limited has now been incorporated and going forward this will act as the repository for future acquisitions and ultimately, on granting of licences, for the housing of Palomino and Palomino North projects.

Paul Johnson, Chief Executive Officer of MetalNRG commented: “Work has been continuing throughout the summer in Australia to process the original applications announced on 29 June 2017, to add to those interests with equally or more prospective additional ground and to establish our wholly owned Australian operating vehicle MetalNRG Australia Pty Limited.

The cobalt commodity is currently priced at just short of US$60,000/t which is an increase of approximately 170% since the start of 2016, but some way short of the US$120,000/t high achieved in 2008. Arguably recognising the importance of cobalt in the burgeoning battery technology environment, the forward demand dynamic is impressive and capable of maintaining considerable support for cobalt pricing, unless and until a considerable amount of additional cobalt production comes on stream. Overall we are optimistic in the future of this important commodity and the explorers focused on development of cobalt opportunities.

We are extremely pleased to see the growth of our interests in Australia, a safe and viable operating environment for innovative growth resource companies. We anticipate further news flow in respect of our Australian interests in the near term.

Furthermore our due diligence work in respect of the US Cobalt opportunity announced in July 2017 continues, following a field trip to review ground exploration work in Nevada and subsequent submission of sampling results for assay. We look forward to releasing the results of this programme in the near term.”

The Directors of the Company accept responsibility for the contents of this announcement.

Contact Details:

MetalNRG plc
Paul Johnson (Chief Executive Officer) +44 (0) 7766 465617
NEX Exchange Corporate Adviser
PETERHOUSE CORPORATE FINANCE LIMITED +44 (0) 20 7469 0930
Guy Miller
Mark Anwyl
Corporate Broker
SI CAPITAL +44 (0) 1483 413500
Nick Emerson
Andy Thacker

Notes for Editors:

MetalNRG is quoted on the NEX Exchange Growth Market in London with the stock code MNRG and is a natural resource investing company.

NEX Exchange:

Investors wishing to consider trading in NEX Exchange Growth Market quoted shares can access this market from numerous brokers, a full list of which can be accessed through the following link:

http://www.nexexchange.com/for-investors/find-a-broker/

The list accessed through the link above includes certain brokers offering online trading of NEX Exchange quoted shares.

The Investing Policy of the Company is as follows:

The Company’s proposed new Investing Policy is to invest in and/or acquire companies and/or projects within the natural resources and/or energy sector with potential for growth and value creation, over the medium to long term. The Company will also consider opportunities in other related sectors if the Board considers there is an opportunity to generate an attractive return for Shareholders. This will include natural resource technologies and fintech opportunities offering leverage to resource identification, processing, recording, storage and trading businesses.

Where appropriate, the Board may seek to invest in businesses where it may influence the business at a board level, add their expertise to the management of the business, and utilise their significant industry relationships.

The Company’s interests in a proposed investment and/or acquisition may range from a minority position to full ownership and may comprise one investment or multiple investments. The proposed investments may be in either quoted or unquoted companies; be made by direct acquisitions or farm-ins; and may be in companies, partnerships, earn-in joint ventures, debt or other loan structures, joint ventures or direct or indirect interests in assets or projects.

The Board may focus on investments where intrinsic value can be achieved from the restructuring of investments or merger of complementary businesses. The Board expects that investments will typically be held for the medium to long term, although short term disposal of assets cannot be ruled out if there is an opportunity to generate an attractive return for Shareholders. The Board will place no minimum or maximum limit on the length of time that any investment may be held. The Company may be both an active and a passive investor depending on the nature of the individual opportunity.

Where the Company builds a portfolio of related assets it is possible that there may be cross-holdings between such assets. The Company does not currently intend to fund any investments with debt or other borrowings, but may do so if appropriate. Investments in early stage assets are expected to be mainly in the form of equity, with debt potentially being raised later to fund the development of such assets. Investments in later stage assets are more likely to include an element of debt to equity gearing. The Board may also offer new Ordinary Shares by way of consideration as well as cash, thereby helping to preserve the Company’s cash for working capital and as a reserve against unforeseen contingencies including, for example, delays in collecting accounts receivable, unexpected changes in the economic environment and operational problems.

The Board will conduct initial due diligence appraisals of potential business or projects and, where they believe further investigation is warranted, intend to appoint appropriately qualified persons to assist. The Proposed Board believes its expertise will enable it to determine quickly which opportunities could be viable and so progress quickly to formal due diligence. The Company will not have a separate investment manager. The Company proposes to carry out a comprehensive and thorough project review process in which all material aspects of a potential project or business will be subject to rigorous due diligence, as appropriate.

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