Farm-in Agreement update on Uranium Project

THE INFORMATION COMMUNICATED IN THIS ANNOUNCEMENT CONTAINS INSIDE INFORMATION FOR THE PURPOSES OF ARTICLE 7 OF THE MARKET ABUSE REGULATION (EU) NO. 596/2014 AND UPON PUBLICATION OF THE ANNOUNCEMENT VIA A REGULATORY INFORMATION SERVICE, THIS INFORMATION IS CONSIDERED TO BE IN THE PUBLIC DOMAIN.

3 May 2019

MetalNRG plc

(the "Company" or “MetalNRG”)

Farm-in Agreement update on Uranium Project

MetalNRG plc (NEX:MNRG) today announces that it has suspended the terms of the farm-in agreement with IMC (the “Farm-in Agreement”), announced on 27 March 2019 (the “March Announcement”) in relation to the Kamushanovskoye uranium deposit in Kyrgyzstan with a side letter dated 3 May 2019 (the “Side Letter”).

Capitalised terms used but not defined herein shall have the meanings given to such terms in the March Announcement.   

On 2 May 2019, the parliament of the Kyrgyz Republic voted to ban all uranium exploration and mining in Kyrgyzstan indefinitely (the “Uranium Ban”). The government of Kyrgyzstan has been instructed to draft legislation to put the Uranium Ban into effect.  Pursuant to the Side Letter, the parties agree to suspend the Farm-In Agreement and all obligations of MetalNRG and IMC thereunder for the duration of the Uranium Ban. 

Under the Side Letter, MetalNRG and IMC agree that:

    --  IMC will waive the obligation of MetalNRG under the Farm-In Agreement to
        transfer to IMC the Initial Payment of $400,000, payable upon MetalNRG’s
        proposed Admission to the Official List.

    --  From the date hereof, and throughout the duration of the Uranium Ban,
        IMC will waive the obligation of MetalNRG under the Farm-In Agreement to
        make the Tranche Payments on each of the Agreed Dates.

    --  From the date hereof, and throughout the duration of the Uranium Ban,
        the Right of First Refusal (as defined in the Farm-In Agreement) shall
        continue to apply in favour of MetalNRG.

    --  If the Uranium Ban continues for a period of 12 months from the date
        hereof, MetalNRG shall have the right to terminate the Farm-In Agreement
        in its entirety by written notice to IMC and MetalNRG shall not be
        liable for any unpaid payments thereunder.

    --  If, within 12 months of the date hereof, either (i) the Uranium Ban
        ceases to be in force or (ii) the government of the Kyrgyz Republic
        allows IMC to progress work under its existing mining license for the
        sole purpose of processing waste (an exemption under the Uranium Ban),
        MetalNRG may, in its sole discretion, elect to re-enter the Farm-In
        Agreement, subject to the adjustment, if necessary, of the Agreed Dates
        in relation to the Tranche Payments and valuation of the Uranium
        Project.

        IMC has continually held that its activities at the Uranium Project of
        ‘cleaning’ the peat and contained groundwater, which carries high levels
        of uranium (such uranium often contaminating the local water supplies),
        amount to those of processing waste.

        IMC holds a mining licence with concomitant rights. The license was
        officially granted by the government of Kyrgyzstan in April 2019.
        MetalNRG’s current economic interest in the Uranium Project, as a result
        of its total investment to date of US$170,650, is 8.5%

        Rolf Gerritsen CEO of MetalNRG said "The decision announced by the
        government of the Republic of Kyrgyzstan is extremely disappointing,
        especially so after recent reassurances.. On a positive note, we have
        been able to eliminate our financial exposure to the Farm-In Agreement
        and will be talking to investors to get their input over the next few
        days.”

        Rolf Gerritsen, CEO of MetalNRG, arranged for the release of this
        announcement.

        For further information, please contact:



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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