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August 31, 2021

Pensana Plc

(“Pensana“or the”Society“)

Update on Site Development, Funding and Investor Webinar

Pensana Plc is pleased to provide an update to investors following a recent Board of Directors meeting held at Saltend Chemicals Park (“Saltend”) in Humber Freeport, North of England.

Pensana US $ 125 million will be the first large rare earth separation plant to be built in over a decade and the first to be located in a Free port. It will become an important hub in establishing an independent magnetic metal supply chain for the UK and beyond, creating over 100 direct high value-added jobs and over 500 jobs during construction.

Site improvements in progress at Saltend and Longonjo

At the Saltend project in Humber, UK:

  • Front End Engineering Design (FEED) is progressing on schedule and is expected to be completed in October. Subsequently, the EPCM contracts should be awarded.

  • Pensana has entered into a 25-year lease with pxGroup and Associated British Ports (ABP) for the initial nine hectare Saltend site with potential for expansion.

  • Geotechnical drilling and trenching work has started. These will confirm the input data for the completion of the design of the foundations of the buildings and the infrastructure of the processing plant.

  • Wood, the international engineering group, is working with pxGroup to optimize the handling arrangements for reagents and materials from the jetty to the site, as well as the supply of electrical power, water, steam and fuel. play ”.

  • Pensana is also in talks with Free port stakeholders from pxGroup, ABP and KPMG to finalize government submissions to clarify the benefits and incentives applicable to the Free port tax enterprise zone and customs zone for the Saltend Chemicals Park.

To the Longonjo project at Angola:

  • Front End Engineering Design (FEED) is progressing again on schedule and is expected to be completed in October with EPCI contracts awarded thereafter.

  • The Lidar study for the whole site (including the surrounding bulk service infrastructure and the transmission line connecting to the hydroelectric power) is now complete, as well as the hydrological studies of the water supply. and 100-year flood line ratings.

  • A detailed geotechnical study, under the supervision of SRK global specialists, was mobilized. It will confirm the final design of the plant foundations and infrastructure, the tailings storage facility and the pit stability criteria which were based on earlier larger campaigns.

ATF financing

The company’s expression of interest in the UK government’s Automotive Transformation Fund (“ATF”) of up to £ 1bn has been welcomed by the program’s board. The application for a subsidy or other forms of financial support is currently under consideration by the government.

The Company has no indication of the timing of a potential grant, but will notify shareholders as soon as the notice is received.

Bond Financing for Saltend Rare Earth Separation Facility in Humber, UK

Pensana hired ABG Sundal Collier (ABGSC), a leading Nordic investment bank headquartered in Oslo, Norway, advance debt financing.

ABGSC is a leading investment bank in the Nordic market with extensive experience in the Nordic high yield market and extensive expertise in the natural resources sector and debt structuring. The transaction will be supported by ABGSC’s premier credit research team, providing unique investor education and credit history marketing.

With extensive expertise in the natural resources sector, capital markets and experience in debt structuring as well as extensive abilities in negotiating intercreditor terms with government agencies, ABGSC is well positioned to assist in the execution of the proposed bond issue.

The senior debt facilities contemplated in discussion include a senior secured senior facility in an amount of up to US $ 250 million over a period of five years.

ABGSC will begin its detailed due diligence review shortly and will seek to be able to target a bond issue in the fourth quarter of 2021, once FEED and site preparation is complete.

Harvesting and marketing agreements

Discussions have started with a number of potential direct debit partners to secure direct debit and / or marketing agreements to support core funding. To date, non-disclosure agreements have been signed with three interested parties and discussions have been initiated with several others.

Investor webinar

Pensana will host an investor webinar at 8:00 am in the UK on Wednesday September 8th. Investors can register and submit questions prior to the webinar using this link:

https://www.investormeetcompany.com/pensana-plc/register-investor

President Paul Atherley commented “We continue to work closely with the UK Government’s Automotive Transformation Fund to support the world-class rare earths processing center in Saltend, which will create over 500 jobs during construction and over 100 permanent high-value jobs. once in service.

Saltend will be the first large rare earth separation plant to be developed in over a decade and the first to be located in a Free port. The facility will process raw materials from the company’s Longonjo Project and other sources around the world, producing the magnetic metal oxides essential for supply chains for electric vehicles and offshore wind turbines.

For more information:

Pensana Plc

Website:
Paul Atherley, President / Tim George, CEO

www.pensana.co.uk
[email protected]

About Pensana

The electrification of the driving force is the most important part of the energy transition and one of the greatest energy transitions in history. Magnetic metals are at the heart of the transition and essential for high value-added manufacturing applications such as electric vehicles and offshore wind turbines.

Pensana plans to make Saltend an independent and sustainable supplier of leading magnetic metal oxides in a market currently dominated by China. the US $ 125 million The Saltend facility is designed to produce approximately 12,500 tonnes per year of rare earth oxides, of which 4,500 tonnes will be neodymium and praseodymium (LoPr), representing approximately 5% of the global market in 2025.

The Saltend facility is located in the world-class grounds of Saltend Chemicals, a leading chemical and renewable energy group of companies in the heart of the UK’s energy estuary, and is home to a range of companies including BP Petrochemicals Technology, INEOS, Air Products, Triton Power, Nippon Gohsei and Tricoya.

Pensana’s plug and play installation will create over 500 jobs during construction and over 100 direct jobs once in production. It will be the first major separation facility to be established in over a decade and will become one of only three major producers located outside China.

The initial feedstock will be shipped as clean, high purity mixed rare earth sulfate (MRES) from the company’s longonjo low impact mine in Angola. The surface mine, state-of-the-art concentrator and proprietary MRES processing plant are designed by Wood to the highest international standards. They will be powered by low carbon hydroelectric power and linked to the port of Lobito by the recently modernized Benguela railway line.

Pensana believes that the source of critical rare earth material supply, life cycle analysis, and Scope 1, 2 and 3 GHG emissions will all become important factors in the supply chains of companies. Principal clients. The Company intends to offer its customers an independent and sustainable supply of metal oxides and carbonates of increasing importance for a range of central applications in the energy transition, industrial, medical, military and communications sectors.

For many miners around the world looking to access European and US supply chains, it is becoming increasingly clear that the proposed taxation at the EU and UK carbon borders would mean it won’t It is more acceptable for manufacturers to source materials that are extracted or processed in an unsustainable manner. .

Pensana aims to make Saltend an attractive alternative to mining companies that might otherwise be limited to selling their products to China, having designed the installation to easily adapt to a range of rare earth raw materials.