MET1 Metals One Plc

28 June 2024

Metals One Plc

("Metals One" or the "Company")

Final Results for the Year Ended 31 December 2023

Metals One (AIM: MET1), which is advancing strategic metals projects in Finland and Norway, announces, announces its unaudited results for the twelve months ended 31 December 2023. The full annual report and accounts are available to view on the Company's website at www.metals-one.com and are being posted to shareholders today along with a Notice of Annual General Meeting ("AGM") convening the AGM for 11.00 a.m. on Monday, 22 July 2024 at Hill Dickinson LLP, 8th Floor, The Broadgate Tower, 20 Primrose Street, London, EC2A 2EW.

Highlights

Finland - Black Schist Project (nickel, copper, cobalt, zinc)

·    Completed a 1,548m diamond drill programme across eight holes at the R1 Hook target within the Rauta 9-11 permit at the Finland - Black Schist Project

o  Designed to confirm the structure and potential for Terrafame-style Ni-Cu-Co-Zn mineralisation, initial visual and portable X‐ray Fluorescence ("pXR") assessments of the core indicated potential intersections of this style of black shale hosted mineralisation

o  Identified significant intersections of mineralised black schists and demonstrated geological continuity with existing resource at R1 which could support future resource expansion

o  Confirmed a synformal structure, indicating significant potential to the east and prompting the Company to extend the current permit area in that direction

·    Entered into an agreement in relation to the Black Schist Project, pursuant to which Gunsynd Plc (AIM: GUN) ("Gunsynd") agreed to acquire up to 25% of the project for a staged investment of up to £1 million

o  Received first stage payment of £250,000 in November 2023, with Gunsynd accordingly issued with 6.25% of the voting share capital of Metals One Finland (a subsidiary of the Company which holds the Black Schist Project)

o  Post-period end, Metals One announced an £895,000 Placing to advance the Black Schist Project independently and, simultaneously, its decision to terminate the Gunsynd farm-in, providing the Company with a three-year option to regain 100% ownership by re-acquiring the 6.25% currently held by Gunsynd for the same price

·    Post-period end, received positive re-assay results from the P5 JORC Exploration Target in the Paltamo area of the Black Schist Project - initial observations support opportunity to convert P5 target to a mineral resource

o  Engaged Mining Plus to undertake mineral resource estimate

Norway - SRH Råna Project (nickel, copper, cobalt)

·    Norway - SRH Råna Project partner/operator Kingsrose Mining (ASX: KRM) ("Kingsrose") completed 4,318m drill programme across 12 holes. Kingsrose:

o  Identified new zones of nickel sulphide mineralisation, further demonstrating the scale potential of the largely underexplored Råna Intrusion

o  Discovered mineralised bodies at the Rånbogen and Malmhaugen prospects

o  Identified multiple high‐priority targets, including areas of outcropping massive sulphide nickel mineralisation associated with conductive geophysical anomalies extending to depth

·    Post-period end, Kingsrose started the 2024 field season with geological mapping, building on its understanding of the geology of the area and, ultimately, helping to identify additional targets for core drilling later this year

Alastair Clayton, Chairman of Metals One, commented:

"Metals One has listed with interests in strategic minerals projects including substantial exploration carry exposure through farm-ins at a critical time for the development of domestic sources of the strategic minerals required to support the digital and green transitions in Europe. With European projects, experienced partners, and funded work programmes in place, our projects are well positioned for rapid advancement as we seek to establish sustainably mined sources of strategic minerals, including copper and nickel, in Europe, close to the centre of demand.

With very encouraging results from our projects in Norway and Finland, we are well positioned for our continuing project development and to grow value for shareholders. We look forward to updating shareholders and stakeholders on further news as we continue our work programmes.

I would like to thank the team at Metals One and its advisers for their hard work leading up to the IPO and project acquisitions, and also our shareholders for their continued support of the Company's strategy. I believe our strategy to focus on strategic minerals at this time and in the right jurisdiction will pay off."

Financial Statements and Notes to the Accounts

For access to the full Financial Statements and Notes to the Accounts for the year ended 31 December 2023, please click on the following link: http://www.rns-pdf.londonstockexchange.com/rns/4087U_1-2024-6-28.pdf

Extracts are set out below.

METALS ONE PLC

CHAIRMAN'S STATEMENT

FOR THE YEAR ENDED 31 DECEMBER 2023

I am pleased to present the first annual financial report of Metals One since its admission to the London Stock Exchange Alternative Investment Market (AIM).

The twelve-months ended 31 December 2023 were an incredibly busy period for the Company as it completed its AIM Initial Public Offering (IPO) and concurrent acquisitions of European strategic minerals projects.

On 31 July 2023, the Company completed both the acquisition of Metals One Finland, formerly FinnAust Mining Northern OY which holds 100% interest in the Paltamo and Rautavaara Nickel-Zinc-Copper-Cobalt ("Ni-Zn-Cu-Co") projects in the Kainuu Black Schist Belt in eastern Finland acquired from AIM-listed Bluejay Mining Plc (AIM: JAY), and the acquisition of Scandinavian Resource Holdings, which holds 80% of the shares in Narvik Nikkel AS which in turn holds 100% of the Råna Project in Northern Norway through a Joint Venture ("JV") with Kingsrose Mining Ltd (ASX: KRM) ("Kingsrose"). On the same date, the Company also completed its listing on the AIM market of the London Stock Exchange, having raised £2.2 million for working capital for its projects.

Finland - Black Schist Project

Inferred Mineral Resource of 28.1 Mt Ni-Zn-Cu-Co

The Project in Finland comprises three exploration permits and four reservations, together with three pending exploration permit applications and one pending reservation application. The project is located across the Kainuu (Paltamo) and Northern Savonia (Rautavaara) regions of eastern Finland, and is adjacent to one of Europe's largest nickel miner, Terrafame. The primary project development model Metals One is pursuing at the Black Schist Project is for Terrafame-style shale-hosted Ni-Zn-Cu-Co resources.

The Black Schist Project contains an existing JORC Inferred Resource (at the R1 target) of 28.1 Mt at a grade of 0.19% Ni (53,800t), 0.10% Cu (27,900t), 0.01% Co (3,400t) and 0.38% Zn (180,000t), and a JORC Exploration Target (at the P5 target) of 16-24 Mt. The Company's strategy for the project is to show a clear path to the economic extraction of its assets. This includes a longer‐term ambition of potentially defining a 200 Mt resource, the scale of which could underpin a significant supply of strategic minerals to the European market at what Metals One expects to be a low cost of production and low carbon intensity.

On 25 July 2023 the Company entered into an agreement during the year in relation to its Black Schist Project, pursuant to which AIM-listed Gunsynd Plc (AIM: GUN) agreed to acquire up to 25% of the projects for a staged investment of up to £1 million. On 16 November 2023 the Company announced that it had received the first stage payment of £250,000 from Gunsynd and accordingly Gunsynd was issued with 6.25% of the voting share capital of Metals One Finland (a subsidiary of the Company which holds the Black-Schist Project). Post-period end, Metals One announced on 20 May 2024 an £895,000 Placing to advance the Black Schist Project and, simultaneously, its decision to terminate the Gunsynd farm-in. As part of the termination agreement, Metals One has been granted a three-year option to re-acquire the 6.25% of Metals One Finland currently held by Gunsynd.

The Company commenced a drilling programme at the Black Schist Project in November 2023 and completed 1,548m of diamond drilling across eight holes at the R1 Hook target. This target is a highly prospective extension to the R1 target in the Rauta 9‐11 Resource bearing licence area at the Black Schist Project.   Diamond drilling was designed to confirm the structure and potential for Terrafame‐style Ni‐Cu‐Co‐Zn mineralisation. Pleasingly, initial visual and portable (X‐ray Fluorescence (""pXR")") assessments of the core indicated potential intersections of this style of black shale hosted mineralisation.

Metals One reported drilling assay results from the drilling programme post period end.  Significant intersections of mineralised black schists were identified in all eight drillholes, whilst drilling also demonstrated geological continuity with the Company's existing Resource at R1 which could support future resource expansion.  Significantly, Hole RAU0002 intercepted 14.7m of mineralised black schists from 50m (0.18% Ni, 0.01% Cu, 0.01% Co, 0.57% Zn) and Hole RAU0003 intercepted 11m of mineralised black schists from 199.5m (0.22% Ni, 0.01% Cu, 0.01% Co, 0.55% Zn).

The results confirmed a synformal structure, indicating significant potential to the east and prompting the Company to extend the current permit area in that direction.

Post-period end, Metals One's work programme has centred on its P5 JORC Exploration Target in the Paltamo area of the project. Underpinned by positive assay results and using the funds raised in May 2024, Metals One intends to progress its resource upgrade programme, targeting an anticipated increase in resource from the current 28.1 Mt of Terrafame-type mineralisation. The Company is on track to share its interpretation and updated resource in the coming weeks and expects the updated resource to underpin a Scoping Study in the second half of 2024 which would represent a key milestone in the Company's transition from exploration and discovery to project development.

Norway - SRH Råna Project

Brownfield exploration of Råna Intrusion - fully carried

The Company's assets in Norway consist of an indirect 80% interest in the Råna Project (Ni-Cu-Co), via its Joint Venture Narvik Nikkel AS, located on the southern shores of the Ofotfjord and situated approximately 20 km to the southwest of the port town of Narvik. The Råna Project consists of contiguous exploration permits with a total area of 18.14 km² that cover the northern and northwestern parts of the Råna mafic to ultramafic Intrusion ("Råna Intrusion"). The project has proven potential for massive sulphide Ni-Cu-Co mineralisation.

The Company's interest in the Råna Project is owned through a JV with Kingsrose, who are operator of the project and have a right to earn up to 75% over eight years through staged expenditure of up to A$15 million.  We announced in early February 2024 that Kingsrose had received all analytical results from the 2023 core drilling programme, where a total of 4,318m were drilled across 12 holes.

The identification of new zones of nickel sulphide mineralisation at our SRH Råna Project further demonstrates the scale potential of the largely underexplored Råna intrusion. In addition to the discovery of mineralised bodies at the Rånbogen and Malmhaugen prospects, the drill programme identified multiple high‐priority targets, including areas of outcropping massive sulphide nickel mineralisation associated with conductive geophysical anomalies extending to depth. The operator is aiming to drill these key targets as part of its 2024 exploration programme alongside further geophysical surveying across the broader intrusion. They continue to test the true potential of the Råna intrusion to host one, if not more, nickel‐copper‐cobalt‐PGM deposits of economic tenor.

Conclusion

Metals One has listed with interests in strategic minerals projects including substantial exploration carry exposure through farm-ins at a critical time for the development of domestic sources of the strategic minerals required to support the digital and green transitions in Europe. With European projects, experienced partners, and funded work programmes in place, our projects are well positioned for rapid advancement as we seek to establish sustainably mined sources of strategic minerals, including copper and nickel, in Europe, close to the centre of demand.

With very encouraging results from our projects in Norway and Finland, we are well positioned for our continuing project development and to grow value for shareholders. We look forward to updating shareholders and stakeholders on further news as we continue our work programmes.

I would like to thank the team at Metals One and its advisers for their hard work leading up to the IPO and project acquisitions, and also our shareholders for their continued support of the Company's strategy. I believe our strategy to focus on strategic minerals at this time and in the right jurisdiction will pay off.

Alastair Clayton

Chairman

28 June 2024

METALS ONE PLC

CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME

FOR THE YEAR ENDED 31 DECEMBER 2023

The accompanying notes on pages 36 to 63 of the full annual report and accounts form an integral part of these consolidated financial statements.

METALS ONE PLC

COMPANY NUMBER 13158079

CONSOLIDATED STATEMENT OF FINANCIAL POSITION

AS AT 31 DECEMBER 2023

The accompanying notes on pages 36 to 63 of the full annual report and accounts form an integral part of these consolidated financial statements.

The financial statements were approved by the board on 28 June 2024 and were signed on its behalf by:

Alastair Clayton

Chairman

Going concern

The Group and Company's financial statements have been prepared on the going concern basis, which contemplates that the Group and Company will be able to realize its assets and discharge liabilities in the normal course of business. Despite this, there can be no assurance that the Group or the Company will either achieve or maintain profitability in the future and financial returns arising therefrom may be adversely affected by factors outside the control of the Group and the Company.

The Group and Company has had recurring losses since incorporation, and its continuation as a going concern is dependent on the Group and Company's ability to successfully fund its operations by generating sufficient cash flow from operations. As it is unlikely to generate a positive operating cashflow in the near the future the Group and Company will be required to obtain additional financing from equity injections and / or the raising of cash through bank loans or other debt instruments, to meet any working capital deficits and fund the Group and Company's exploration activities and new mine developments.

This indicates that a material uncertainty exists that may cast significant doubt over the Group and Company's ability to continue as a going concern and therefore their ability to realise their assets and discharge their liabilities in the normal course of business.

Whilst acknowledging this material uncertainty, the directors consider it appropriate to prepare the consolidated financial statements on a going concern basis for the following reasons:

·    As disclosed in the after balance sheet events note 27, the group completed a fundraising to raise £895,000 to fund the planned development scoping and exploration activities in Finland along with working capital commitments for the year ahead;

·    The Group has no committed exploration expenditure on its granted mining licenses and has the ability to reduce all spend in the event that it needs to conserve cash balances;

·    The Group can reduce most discretionary administrative expenditure; and

·    The Group's Board of Directors have significant experience in the debt and equity capital markets and specifically have a successful track record in funding mining operations, new mine development and exploration activities and are further considered capable of securing ongoing debt and equity capital financing for the Group.

The consolidated financial statements do not include the adjustments that would result if the Group and Company were unable to continue as a going concern.

The auditors have made reference to going concern by way of a material uncertainty within the financial statements.

Enquiries:

About Metals One

Metals One is developing strategic metals projects in Finland (Black Schist Project) and Norway (SRH Råna Project), with approximately £9 million of exploration carry exposure through a farm-in agreement. Metals One is aiming to help meet the significant demand for critical minerals by defining resources on the doorstep of Europe's major electric vehicle OEMs and battery manufacturers. Metals One's Black Schist Project in Finland, totalling 706 km² across three licence areas, has an Inferred Resource of 28.1 Mt nickel-copper-cobalt-zinc and is located adjacent to one of Europe's largest nickel mines operated by Terrafame. Metals One's fully carried SRH Råna Project in Norway covers 18.14 km² across three contiguous exploration licences, with significant opportunity for exploration of the Råna Intrusion, and proven potential for massive sulphide nickel-cobalt-copper mineralisation.

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Market Abuse Regulation (MAR) Disclosure

The information set out below is provided in accordance with the requirements of Article 19(3) of the Market Abuse Regulations (EU) No. 596/2014 which forms part of UK domestic law by virtue of the European Union (Withdrawal) Act 2018 ('MAR').

Nominated Adviser

Beaumont Cornish Limited ("Beaumont Cornish") is the Company's Nominated Adviser and is authorised and regulated by the FCA. Beaumont Cornish's responsibilities as the Company's Nominated Adviser, including a responsibility to advise and guide the Company on its responsibilities under the AIM Rules for Companies and AIM Rules for Nominated Advisers, are owed solely to the London Stock Exchange. Beaumont Cornish is not acting for and will not be responsible to any other persons for providing protections afforded to customers of Beaumont Cornish nor for advising them in relation to the proposed arrangements described in this announcement or any matter referred to in it.

Glossary