Cadence Minerals Plc - Amapa Project - Municipal Settlement, Technical Engagement and Development Progress Update

About this update from Cadence Minerals Plc

'The resolution of these historic municipal matters represents an important step in resetting the Project's operating environment and removing long-standing administrative uncertainty inherited from prior ownership. While all regulatory decisions continue to follow Brazil's established statutory processes, this settlement provides clarity and stability as we advance the next stage of Amapa's staged redevelopment. Together with recent progress on Azteca financing and ongoing licensing work, these developments reinforce our disciplined strategy focused on risk management, capital discipline and long-term value creation.' Cadence Minerals provides an update on the Amapa Iron Ore Project ('Amapa' or the 'Project'), covering the resolution of long-standing municipal legacy matters, recent technical engagement with representatives of the State of Amapa , and continued progress across the Company's staged redevelopment strategy. Technical Engagement and Capital Pathway Context As announced previously, Cadence, together with Pedra Branca Alliance Ltd. ('PBA'), hosted a technical programme in London with Wandenberg Pitaluga Filho, President of the Economic Development Agency of Amapa . The programme provided an opportunity to outline the Project's long-term development pathway, integrated infrastructure potential and the typical financing frameworks applicable to large-scale mining developments. Discussions were technical and introductory in nature and were intended to support understanding of the Project's scale, sequencing and capital requirements. Meetings were held with groups active across equity investment, institutional debt, royalty and streaming, offtake and prepayment finance, and logistics and infrastructure. All discussions were non-binding and exploratory, focused on capital availability, financing structures and customary requirements at different stages of project development. The technical engagement was constructive and met its stated objectives, providing the State with increased visibility on the Project's staged development pathway and the depth and diversity of capital pools typically available in the London market for projects of this nature. Judicial Settlement with the Municipality of Pedra Branca do Amapari Cadence confirms that DEV Mineracao S.A. ('DEV'), the owner and operator of the Amapa Project , has executed and completed the first payment under a Judicial Settlement Agreement (the 'Agreement') with the Municipality of Pedra Branca do Amapari (the 'Municipality'). The Agreement has been ratified by the Court and is supported by the State within the applicable judicial and regulatory framework. The Agreement resolves long-standing municipal legacy matters inherited from previous operators and establishes a stable and predictable administrative framework for DEV's activities within the Municipality, materially improving the operating environment for the Project. Under the Agreement, DEV will provide R$10 million in social compensation, including an initial R$5 million payment. In return, the Municipality has lifted prior embargoes, confirmed that following execution of the Agreement DEV has no outstanding municipal liabilities covered by the settlement, and agreed to process and issue, where applicable, the routine municipal authorisations and certificates customarily required to support licensing and operational activities, strictly in accordance with applicable legislation. The Agreement removes historical administrative constraints that previously affected municipal permitting activities and lifts restrictions on ore transport, restoring operational and logistical flexibility as the Project advances. Settlement Funding Context In accordance with DEV's 2019 Judicial Recovery Plan, a historic prepayment creditor was previously settled through the transfer of iron-ore stockpiles. The stockpile owner has advanced the funds required to enable the first payment under the Agreement, with subsequent instalments also expected to be advanced in the same manner. Cadence has not made any direct payments to the Municipality in connection with the Agreement. Licensing Status and Regulatory Process Progression of the Amapa Project requires completion of Brazil's environmental and operational licensing processes at municipal, state and federal levels. The Agreement provides administrative clarity at the municipal level and removes historical uncertainty that previously constrained routine permitting activities. In line with the Company's staged redevelopment strategy, current efforts remain focused on the grant of the mine's Installation Licence ('LI'). As part of this process, DEV has submitted the supplemental archaeological study to the Instituto do Patrimonio Historico e Artistico Nacional ('IPHAN'), whose clearance is required as part of the LI process. While the Company welcomes recent public statements from representatives of the State of Amapa regarding the importance of the Project to regional development, all environmental licensing decisions remain subject to technical review and regulatory approval in accordance with Brazil's established legal framework. The Company is not deviating from the statutory process. Staged Development Strategy The Company continues to advance Amapa through a disciplined staged redevelopment strategy designed to manage technical, permitting and capital risk. As announced earlier this month, the Azteca processing plant has secured US$4.6 million of funding to complete the relevant licence applications and undertake refurbishment and recommissioning activities. Subject to the grant of the required licences, initial works will focus on the restart of the Azteca processing plant and associated infrastructure required for Azteca operations. The Azteca plant is forecast to produce approximately 380,000 to 400,000 tonnes per annum of iron ore concentrate grading approximately 65% Fe, providing an initial operational platform to support further technical and feasibility work across the broader Project. In addition, the Company has previously evaluated a potential intermediate development scenario capable of producing approximately 2.5 to 3.5 million tonnes per annum of DR-grade iron ore concentrate, utilising existing rail infrastructure and third-party port facilities. This scenario remains conceptual, has not been the subject of a Definitive Feasibility Study, and is not currently the focus of development activity. The longer-term development plan for Amapa envisages production of up to 5.5 million tonnes per annum of DR-grade iron ore utilising integrated mine, processing, rail and port infrastructure under the Project's control. Any expansion beyond the Azteca plant would remain subject to completion of Definitive Feasibility Studies ('DFS'), receipt of the relevant environmental licences and financing decisions. Contact: Tel: +44 (0) 20 3582 6636 Cautionary and Forward-Looking Statements Certain statements in this announcement are or may be deemed to be forward-looking statements. Forward-looking statements are identi?ed by their use of terms and phrases such as 'believe', 'could', 'should', 'envisage', 'estimate', 'intend', 'may', 'plan', 'will', or the negative of those variations or comparable expressions including references to assumptions. These forward-looking statements are not based on historical facts but rather on the Directors' current expectations and assumptions regarding the company's future growth results of operations performance, future capital, and other expenditures (including the amount, nature, and sources of funding thereof) competitive advantages business prospects and opportunities. Such forward-looking statements re?ect the Directors' current beliefs and assumptions and are based on information currently available to the Directors. Many factors could cause actual results to differ materially from the results discussed in the forward-looking statements, including risks associated with vulnerability to general economic and business conditions, competition, environmental and other regulatory changes actions by governmental authorities, the availability of capital markets reliance on key personnel uninsured and underinsured losses and other factors many of which are beyond the control of the company. Although any forward-looking statements contained in this announcement are based upon what the Directors believe to be reasonable assumptions. The company cannot assure investors that actual results will be consistent with such forward-looking statements. (C) 2025 Electronic News Publishing, source ENP Newswire

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