MAFL Mineral & Financial Investments Limited

MINERAL AND FINANCIAL INVESTMENTS LIMITED

Investment Update: Ascendant / Redcorp Report Significant Metallurgical Improvements at The Lagoa Salgada VMS Project, Portugal

HIGHLIGHTS:

·      Results demonstrate ability to produce saleable Zinc and Lead concentrates from the Primary Massive Sulphide domain.

·      Significant improvement in Zinc recoveries (+13% increase) and concentrate grades (+22% increase) compared to the Feasibility Study.

·      Metallurgical results, completed at coarser grind sizes supporting simplified flow sheet and lower capital and operating costs relative to the Feasibility Study ("FS").

·      Demonstrated potential to lower operating and capital costs relative to the current FS by using a proven flotation reagent suite, simplified flowsheet, and coarser primary grind.

·      Further improvement anticipated from additional ongoing metallurgical optimization test work.

Camana Bay, Cayman Islands - 10 April 2024 - Mineral and Financial Investments Limited (LSE-AIM: MAFL) ("M&F" "MAFL" or the "Company") is pleased to provide an update on its investments in Redcorp Empreedimentos Mineros Lda. ("Redcorp") and Ascendant Resources Inc. ("Ascendant") which are developing the Lagoa Salgada Polymetallic Project in Portugal (the Project). The Project is managed by Ascendant. M&F owns a conditional 20% carried interest in Redcorp and Ascendant owns the balance (please see the announcement dated 28 November 2022 for further details). Redcorp has provided an update on the optimization metallurgical test program on the primary massive sulphides ("PMS") domain at Lagoa Salgada. The Massive Sulphides are the highest margin domain and a large value driver of NPV for the Lagoa Salgada Project. Bench scale metallurgical testing on composite samples from the PMS ore body were completed by Maelgwyn Metallurgical Laboratories (South Africa) with oversight from Minepro Solutions (Spain) and DRA Global (South Africa).

Following completion of the July 2023 43-101 Feasibility Study ("FS"), Redcorp/Ascendant initiated an optimization program for metallurgical performance to improve metal recoveries, concentrate grades and characterization of the deleterious elements to enhance the revenue potential for its Lagoa Salgada Project. The initial phase of the optimization program has been focused on the Primary Massive Sulphide mineralization from its Venda Nova North Sector, as this zone is the major revenue contributor for the project and is exploited early in the mine life.  In addition to the metallurgical work, Redcorp continues to progress its environmental permitting activities and expects to be granted the permit in Q3/24 which would position Lagoa Salgada as the next mine ready project on the Iberian Pyrite belt.

Jacques Vaillancourt, President & CEO of M&F Investments Ltd. offered the following comment - "This is a very exciting step forward for the Lagoa Salgada project. The metallurgical test work optimization program carried out on the zinc and lead sulphide dominant mineralisation (PMS) has returned exceptional recoveries and grades via a simplified and straightforward flotation process. It compares favourably to current zinc and lead producers and is positioned at the higher end of benchmarks for the Iberian Pyrite Belt. Furthermore, these recoveries have been achieved at coarse grind sizes with an industrially proven reagent suite supporting a simple and conventional process flowsheet that will potentially result in lower capital and operating costs to those typically observed in Iberian Pyrite Belt operations of this scale.

Optimization of metallurgical test works continues for the remaining ore domains as we complete the optimization program for the planned updated Feasibility Study of the Lagoa Salgada VMS project."

KEY METALLURGICAL TEST WORK HIGHLIGHTS:

·     Results from the optimization phase metallurgical Locked Cycle flotation testing conducted by Maelgwyn Metallurgical Lab has achieved:

o  Zinc Concentrates at 43% Zn (+8% points or 22% higher grade than FS results) with a corresponding Zn recovery of 79% (+9% points or a 13% increase in Zn recovery to concentrate as compared to the FS); and

o  Lead Concentrates at 24% Pb with a Lead recovery of 53%, from a sample with comparatively lower contained Pb in feed, confirming the lead recovery potential demonstrated in the FS testing phase.

·   Results demonstrate the potential to produce saleable and highly marketable Lead and Zinc concentrates from the PMS domain.

·   Demonstrated potential to lower operating and capital costs relative to the current FS as a result of using a proven flotation reagent suite, simplified flowsheet, and coarser primary grind.

·   Optimization bench scale test work is ongoing for the Stockwork domain, where initial open circuit test work has also demonstrated improved Zinc recovery and concentrate grades, with an efficient separation of Copper and Lead for discrete concentrate production.

·   Further optimisation work on the Gossan and Transition domains to commence shortly.

Metallurgical Test Update

The recent metallurgical testing on a composite sample from the PMS ore body at Lagoa Salgada was conducted by Maelgwyn Laboratories, with oversight from Minepro and DRA Global. Composite head grades are presented in Table 1.

PMS COMPOSITE SAMPLE CHEMICAL ASSAYS

(Table 1)

Through the implementation of an optimized circuit configuration, along with a new reagent suite and coarser primary grinding, the test work has yielded enhanced Zinc concentrate grades and recoveries. Additionally, it has showcased the potential to streamline the process flow sheet, decrease grinding size, and diminish penalty elements. These modifications are anticipated to lead to cost savings in operations owing to a simplified process compared to the feasibility study.

Seven flotation tests were carried out in open circuit, alongside two locked cycle tests, utilizing the described composite sample. The most successful open circuit test identified the circuit configuration and reagent regimes for the locked cycle tests, with performance metrics outlined in Table 2 below:

HIGHLIGHTED METALLURGICAL RESULTS

(Table 2)

The Zinc circuit performance indicates that a concentrate with saleable grade can be produced with a recovery ranging around 79%. Based upon the calculated grade/recovery curves a concentrate grade +45% Zinc with slightly lower recoveries is expected to be achieved at an industrial scale. Additionally, selectivity and cleaning have notably improved compared to previous works, leading to lower penalties content. The Zinc concentrate now exhibits arsenic levels below 1.5% and antimony levels in the range of 500 ppm (0.05%). Mercury grades are awaiting confirmation as the reconstructed head grade reveal a lower mercury concentration than the initial head grade sample analysis.

Lead concentrates at 24% Pb with a lead recovery of 53% align with previous works completed for the FS, as the head grade of the current composite sample exhibits lower contained metal (1% less Pb content than the FS sample), confirming the lead recovery potential demonstrated in the FS testing phase. However, these results have been achieved at bench scale only and there can be no guarantee at that stage that these results will be achieved on a larger scale. Additional testing on the remaining orebodies is currently underway, with completion of the Stockworks testing expected in the next few weeks and the results for the remaining lesser valued domains expected to be incorporated into a planned updated Feasibility Study scheduled towards Q3 of this year.

Review of Technical Information

The scientific and technical information in this press release has been reviewed and approved by Joao Barros, BSc (Engineering), MSc (Geology), who has more than 18 years of relevant experience in the field of activity concerned. Mr. Barros is a Member of the Portuguese Engineers Association. Mr. Barros is employed by Redcorp Empreedimentos Mineiros, Lda., a 50% owned subsidiary of M&FI, and has consented to the inclusion of the material in the form and context in which it appears.

The scientific and technical information contained in this release in relation to metallurgical test work has been approved and verified by Mr. David Castro López (MIMMM), who serves as Process Engineer at Minepro Solutions and is a "Qualified Person" in accordance with National Instrument 43-101 - Standards of Disclosure for Mineral Projects.

FOR MORE INFORMATION:

Jacques Vaillancourt, Mineral & Financial Investments Ltd.          +44 780 226 8247

Katy Mitchell and Sarah Mather, WH Ireland Limited                    +44 207 220 1666

Jon Belliss, Novum Securities Limited                                          +44 207 382 8300

The information contained within this announcement is deemed by the Company to constitute inside information as stipulated under the Market Abuse Regulations (EU) No. 596/2014 (MAR) as in force in the United Kingdom pursuant to the European Union (Withdrawal) Act 2018. Upon the publication of this announcement via Regulatory Information Service (RIS), this inside information is now considered to be in the public domain.