Giyani Metals Corp. (TSXV:EMM, GR:A2DUU8) (“Giyani” or the “Company“) is pleased to announce its updated preliminary economic assessment (“UpdatedPEA”) to its previously published PEA update in Q1 2020. The Updated PEA incorporates a 36% increase in the Inferred Mineral Resource estimate resulting in a 21% increase in after-tax NPV from US$275 million to US$332 million (at a 10% discount rate) and are driven by changes in the following parameters:

1. Change in final saleable product from High Purity Electrolytic Manganese Metal (“HPEMM”) to High Purity Manganese Sulphate Monohydrate (“HPMSM”). HPMSM requires fewer processing steps and consumes less energy compared to production of HPEMM. Based on feedback from battery manufacturers during the last year, the Company believes HPMSM is the preferred precursor material for the production of the Nickel-Cobalt-Manganese (“NCM”) cathodes used in lithium-ion batteries, especially for the Electric Vehicle (“EV”) market and aligns with the Company’s strategy to be a low or zero carbon footprint producer.
2. Associated changes in process flow, CAPEX and OPEX for the production of HPMSM.
3. A comprehensive remodelling of the geological model, wireframes, and block model incorporating all previously available drilling results as well as the results from 11 holes from the recently completed infill drilling program available at the time of reporting.
4. Reducing the cut-off grade to 7.3% MnO.
5. More accurate determination of the depletion caused by historical mining.

The Updated PEA NI 43-101 Technical Report will be filed on SEDAR under the Company’s profile by April 30, 2021.

Robin Birchall, CEO of the Company commented:

“We are delighted with the results of the work by our team on the ground in Botswana and our team of consultants working on the revised process flowsheet and costing of the HPMSM salt option. The significant increase in the resource base is extremely pleasing and we hope to add additional tonnes as we complete the assaying of the resource holes and commence our exploration programs at the K.Hill extension and at Otse. I would like to thank the team for all their hard work.”

Updated PEA Highlights

• Eight (8) year mine life and ten (10) year project operating life, producing 891,000 tonnes of HPMSM.
• Incorporates the 1.7 million tonnes Inferred Mineral Resource estimate for K.Hill.
• Pre-tax NPV of US$431 million (C$573 million) and Post-tax NPV of US$332 million (C$442 million), using a 10% discount rate.
• Estimated US$153 million (C$203 million) in life of mine capital requirement, of which US$118 million (C$157 million), is pre-production capital.
• After-tax IRR of 80% and three (3) year payback period.

Updated Mineral Resource Estimate

The updated Mineral Resource estimate is now 1.7 million tonnes grading 25.7% manganese oxide (“MnO”) at a cut-off grade of 7.3% MnO. The table below summarizes the K.Hill Inferred Mineral Resource:

K.Hill Mineral Resource Statement – April 2021

Footnotes:

(1)  The Inferred Mineral Resource Estimate is reported above a cut-off grade of 7% MnO.
(2)  Tonnages are considered to be dry.
(3)  The Mineral Resource Estimate is constrained within grade based solids and within a Lerchs-Grossman Optimised pit shell based on a HPMSM price of US$1,588 / t and the following parameters:

1. Mining cost – US$3.46 / t rock
2. Processing cost – US$213 / t ore
3. Selling cost – 3% Royalty and freight costs of US$60 /t HPMSM
4. G&A cost – US$20 / t ore
5. Discount rate – 10%
6. Processing recovery – 90.7%
7. Mining recovery – 95%
8. Mining dilution – 5%
9. Geotechnical slope angle – 45°

(4)  All figures are rounded to reflect the relative accuracy of the estimate.
(5)  Mineral Resources are not Mineral Reserves and do not have demonstrated economic viability.
It is uncertain if further exploration will convert Inferred Mineral Resources to higher confidence categories

Comparison to Previously Reported Resource Statements

Comparing the above mentioned Mineral Resource estimate (“MRE”) to the previously reported MRE dated April 2020, it can be seen that, by optimizing fundamental parameters, the Company has been able to increase the Resource at K.Hill. Specifically, as new data becomes available from the metallurgical test work, a lower cut-off grade could be applied. This is evident in the reduced average grade in the latest MRE.

Comparison of K.Hill Mineral Resource Statement with Previous Revisions.

Comparison to Previously Reported PEA Economics

The economics are based on a projected average price of US$1,588 / tonne for HPMSM of 32% purity over the project life. The average price of the product is based on an independent market study commissioned by the Company.

The following table compares the values of key indicators from the updated and amended PEA alongside those from the technical reports filed in September 2019 and April 2020.

The PEA is considered preliminary in nature and includes Inferred Mineral Resources that are considered too speculative geologically to have the economic considerations applied to them that would enable them to be categorized as Mineral Reserves, and accordingly there is no certainty that the preliminary economic assessment will be realized. The expected accuracy of costs in the PEA is within a -35% to +45% level of confidence, as is appropriate for the level of study and accuracy of the input data provided.