Xtract Resources: Xtract Resources plc Signs an Exclusive Collaboration Agreement with Chilibwe Mining Limited

The Board of Xtract Resources Plc announced that it has signed an exclusive collaboration agreement with Chilibwe Mining Limited (Chilibwe) in relation to large scale exploration licence 22118-HQ-LEL in Zambia (the Licence). Xtract will earn a 25% shareholding in Chilibwe Mining and /or 25% interest in the Project by preparing a work programme and budget for the exploration and development of the Licence and assisting in obtaining funding for the Project. Licence Information: As set out in the Zambia Mining Cadastre on 7 October 2024,Licence 22118-HQ-LEL is a large-scale exploration licence covering 27,202 ha in the name of Chilibwe Mining Limited (the Licence). The Licence was granted on 7 February 2018 and has an expiry date of 6 February 2025. The Licence is for cobalt, copper, gold and nickel. The Licence is currently subject to Zambian Court proceedings in respect of a dispute between Chilibwe and its previous joint venture partner which has restricted Chilibwe to date from developing the Project (the Existing Joint Venture). Chilibwe has lodged a case with the High Court for Zambia to have the Existing Joint Venture terminated such that it would retain a 100% interest in the Licence. The Licence may nevertheless in the future be subject to further or new challenges or other disagreements. The Licence is located in the North Central province of Zambiaand is located to the northwest of Eurasian Resources Group's Frontier mine which is situated on the Zambian-DRC border and to the southeast of the historic Mufulira copper mine. There has been historic exploration and Xtract has commenced the process of assessing the data currently available and assessing in-country archives and is planning a site visit as part of its initial assessment of establishing a work programme. Chilibwe Mining exclusive collaboration agreement: On 10 October 2024 Xtract entered into an exclusive collaboration agreement with Chilibwe Mining Limited (Chilibwe) in relation to large scale exploration licence 22118-HQ-LEL in Zambia (the Licence) to prepare a work programme and budget for the exploration and development of the Licence and assist in obtaining funding for the Project (Agreement). Services to be provided by Xtract: Xtract has been appointedto assist Chilibwe on an exclusive basis for 24 months in preparing a work programme and budget for the exploration and development of the Licence and management of the subsequent exploration programme or any renewal of the Licence with a view to obtaining a mining licence (the Project) and in obtaining funding for the Project (the Business) (the Services). Xtract are to commence the Services within 15 days of the Agreement. Commencement is defined as both physical activity within the Licence boundaries and desktop studies related to the Services which will include technical, financial and legal due diligence in relation to a project of this nature. The fee for the Services payable to Xtract is as follows: a 25% shareholding in Chilibwe and /or 25% interest in the Business (Xtract Fee Shares), and in the event of a Trigger Event will be due to be issued early as set out further below; and 25% of any dividends due to be paid by Chilibwe in relation to the Business (the Fees). Exclusivity & break fee: Chilibwe has appointed Xtract as its sole and exclusive agent for 24 months in relation to the Services (the "Exclusivity Period"). If Chilibwe accepts funding from another party in the Exclusivity Period then it shall within 7 days: (i) pay a break fee to Xtract of USD 500,000 (the "Break Fee"); (ii) issue the Xtract Fee shares (if not already issued); and (iii) issue any Loan Conversion Shares /or make any Xtract Loan repayments.