Uranium Option Update & Granting Mining Licence

THE INFORMATION CONTAINED IN THIS ANNOUNCEMENT IS DEEMED BY THE COMPANY TO CONSTITUTE INSIDE INFORMATION AS STIPULATED UNDER THE EU MARKET ABUSE REGULATION (596/2014). UPON PUBLICATION OF THE ANNOUNCEMENT VIA A REGULATORY INFORMATION SERVICE, THIS INFORMATION IS CONSIDERED TO BE IN THE PUBLIC DOMAIN.

24 January 2019

MetalNRG plc

(The "Company" or “MetalNRG”)

UPDATE ON OPTION TO ACQUIRE ADVANCED URANIUM PROJECT
&
GRANTING OF MINING LICENSE

MetalNRG plc (NEX:MNRG), the natural resource investing company quoted on the NEX Exchange Growth Market in London is pleased to follow up on its previous announcement of 16 August 2018 (the “August 2018 Announcement”) concerning its option to acquire an interest in the Kamushanovskoye Uranium deposit in Kyrgyzstan (the “Uranium Project”).

MetalNRG today announces that the State Reserve Committee of Kyrgyzstan has granted the application for a mining license dated 22 January 2019 (the “Mining License”) for 3,371.1 tonnes U reserves (8.731 million lbs U308) which has an in-situ value of approximately US$253.1 million at current uranium spot prices.

Uranium Project Highlights:

    --  The Uranium Project is in the Kamushanov community, Sokuluksky District,
        Chuy Province, 48km from Bishkek the capital city of the Kyrgyz
        Republic;

    --  The Uranium Project held an exploration license 2276 MP, which covers an
        area of 4,078 hectares (40.78 km2) which will now be converted into the
        Mining License granted;

    --  Additionally, the Uranium Project offers a potential exploration upside
        of an additional 2.58Mlb of uranium from a partially explored zone (to
        be brought into Compliant Resource) plus as yet untested prospective
        ground;

    --  The Uranium Project is intended to be developed on an In-Situ Recovery
        (“ISR”) basis providing for lower initial capital outlay and operating
        cost of production. The pilot using this technique was completed and
        reported on in the Competent Persons Report carried out during the
        Company's due diligence of the Uranium Project and can be found on our
        web site www.metalnrg.com
    --  Infrastructure around the Uranium Project includes 12-month road access,
        together with electricity and water supplies;

    --  There are 3 uranium refineries within 550km of the Uranium Project, the
        closest being at Kara Balta, 60km away, demonstrating that the region is
        familiar with development of uranium production opportunities;

    --  The Uranium Project is currently owned 94.7%% by International Mining
        Company Invest Inc ("IMC") incorporated and registered under the laws of
        Nevada whose registered office is at 111 La Costa Court, Holmdel, NJ
        07733, USA. The remaining interest in the Uranium Project is held by
        MetalNRG through its 5.3% stake in IMC;

    --  The Option (as defined in the August 2018 Announcement) provides for the
        formation of a new holding company (“Newco”) into which the project
        vendor will transfer the Uranium Project (including the Mining License)
        in full and MetalNRG will inject the agreed acquisition funds, ensuring
        that any acquisition consideration is spent on project development
        rather than vendor compensation; and

    --  To date, MetalNRG has supported IMC financially in relation to the
        Mining License application process. Once Newco is set up and funded,
        MetalNRG will own at least 51% of Newco (and, indirectly, the Uranium
        Project). MetalNRG intends to pay a further US$45,000 in the coming
        weeks. To attain 51% the Company will fund a further US$813,500.

Rolf Gerritsen, Chief Executive Officer of MetalNRG commented: "Uranium is a key commodity and market dynamics make it an extremely interesting time for uranium. Our project is moving towards production and we are all extremely pleased with the progress. The financials around the project make it an outstanding opportunity and we look forward to the ongoing working relationship with IMC who are doing a great job."

The Option Agreement:

As described in the August 2018 Announcement, MetalNRG paid a fee of US$50,000 to enter into an option agreement with IMC (the “Option Agreement”) and complete due diligence on the Uranium  Project. MetalNRG has decided to pursue the joint venture and the initial transaction completion deadline of 28 December 2018 has been extended.

On 5 December 2018, MetalNRG entered into an agreement with IMC amending the Option Agreement (the “Amended Option Agreement”) to restructure the cash payments paid by MetalNRG in order to progress the application of the Mining License.

Under the Amended Option Agreement, it was acknowledged that MetalNRG had, as at the date of the Amended Option Agreement, made a payment of US$100,000 to IMC, representing 5% of the equity in the capital of Newco. It was agreed that each additional payment of US$50,000 made by MetalNRG to IMC would represent an additional 2.5 per cent of the equity in the capital of Newco.  To date an additional US$7,500 has been paid to IMC, posted amended agreement date, bringing the Company's position to 5.3%, additional payments will be made to secure the mining license.

The person who arranged for the release of this announcement on behalf of the Company was Rolf Gerritsen, Chief Executive Officer.

The technical information contained in this announcement has been read and approved by Mr Nick O'Reilly (MSc, DIC, MAusIMM, FGS), who is a qualified geologist and who acts as Competent Person. Mr O'Reilly is a Principal consultant working for Mining Analyst Consulting Ltd which has been retained by MetalNRG PLC to provide technical support.

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

Contact details:


MetalNRG PLC
Rolf Gerritsen (Chief Executive Officer) +44 (0) 20 7796 9060

NEX Exchange Corporate Adviser
PETERHOUSE CAPITAL LIMITED
Guy Miller/Mark Anwyl                    +44 (0) 20 7469 0930

Corporate Broker
SI CAPITAL
Nick Emerson                             +44 (0) 1483 413500



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