Mr. Richard Williams reports

CORNISH METALS PROVIDES AN ACTIVITIES UPDATE AND 2024 OUTLOOK

Cornish Metals Inc. has provided an update on the progress of activities and outlook for 2024.

Highlights

• Important milestones achieved in 2023:
  • Updated mineral resource estimate (MRE) for South Crofty mine with a 31.6-per-cent increase to contained tin in the indicated mineral resource category for the lower mine;
  • Construction and commissioning of the water treatment plant (WTP);
  • Installation and commissioning of submersible pumps in New Cook's Kitchen (NCK) shaft;
  • Commencement of dewatering of South Crofty mine with the water level currently down to 257 metres below the NCK shaft collar level;
  • Completion of metallurgical test work drilling program;
  • Better-than-expected results from X-ray transmission (XRT) ore sorting test work confirming the potential to materially reduce tonnes milled, and reduce process plant capital and operating costs;
  • Installation of two single drum winders for shaft reaccess;
  • Commencement of an exploration drilling program at the Wide Formation target.
• 2024 outlook:
  • Mine dewatering:
    • Dewater to 195-fathom level (approximately 360 metres below surface) and refurbish the pump station;
    • Progress to the second stage of dewatering of the deeper levels of the mine;
  • Commence underground infill drilling;
  • Advance the South Crofty feasibility study; all study components, with the exception of infill drilling, expected to be completed in H1 2024;
  • Preliminary economic assessment (PEA) for South Crofty planned before end of H1 2024 to provide interim guidance prior to the publication of the feasibility study;
  • Complete the 14-hole/9,000-metre Wide Formation exploration drill program.

Richard Williams, chief executive officer and director of Cornish Metals, stated: "The Cornish Metals team worked tirelessly in 2023, achieving numerous important milestones, while further advancing and derisking the South Crofty project. Chief among these are the construction of the WTP and commencement of dewatering of the mine that continues to progress extremely well with water levels drawing down as expected. Activity levels are expected to remain high through 2024 with more important milestones to be met as we work to further progress the South Crofty project towards a construction decision."

Mine dewatering progressing well:

• Mine dewatering and water treatment to remove dissolved metals and suspended solids prior to discharge have been under way since early November, 2023, with up to 25,000 cubic metres per day of water being pumped and treated from South Crofty mine.
• Progress is good, with the water level in the mine currently ahead of projections despite the recent wet weather.
• On Jan. 17 the water level stood at 257 metres below the NCK shaft collar level.
• Water levels in historic mines adjacent to South Crofty remain unchanged while South Crofty water levels fall, confirming that South Crofty is not hydrologically connected to neighbouring historic mines and that the dewatering only comprises South Crofty mine.
• Treated water from the WTP is being discharged into the Red River, having a positive effect on the water quality of the river downstream of the discharge point.
• The treated water from South Crofty passes through a 75-kilowatt hydro-turbine located ahead of the discharge point that generates up to 20 per cent of the power consumed by the WTP. Other renewable energy opportunities are being explored.
• At current rates, the first stage dewatering to the 195-fathom level (approximately 360 metres below surface) is anticipated to be completed in early Q2 2024.
• Refurbishment of the 195-fathom pump station and installation of permanent pumps is planned to take place during Q2/Q3 2024.
• Lowering of the submersible pumps to below the 400-fathom level (approximately 730 metres below surface) and commencement of the second stage of dewatering are planned to commence in Q3 2024.
• The company maintains guidance of 18-months (from the commencement of dewatering in November, 2023) to complete dewatering of South Crofty mine to the 400-fathom level.

Feasibility study progress

The company is making good progress advancing the South Crofty feasibility study with a substantial amount of the study completed. All study components, with the exception of infill drilling, are expected to be finalized in H1 2024.

The following feasibility study components have been completed:

• Geotechnical test work -- televiewer investigations and geotechnical rock testing to confirm known historical structural and rock mass property data;
• Headframe structural modelling and refurbishment;
• Schedule and costing for the refurbishment and recommissioning of NCK and New Roskear shafts;
• Numerical modelling of the proposed underground mining methods and stope designs;
• Phase 1 of the metallurgical test work program (mineralogy, physical competency, characterization XRT, heavy liquid separation and gravity response test work);
• Concept engineering on paste backfill options and sighter test work;
• Ground investigations for the new mineral processing plant;
• Mineral processing plant design and layout, incorporating the results of the metallurgical test work program and potential future throughput expansions.

The following feasibility study components are under way:

• Underground mine design and optimization using the September, 2023, South Crofty updated mineral resource estimate;
• A mine ventilation study, underground infrastructure design and hoisting analysis;
• A feasibility-study-level engineering design for the paste backfill plant;
• Hydrogeology, environmental, social, market and closure studies;
• Underground drilling options review started.

Wide Formation target exploration drilling:

• A 14-hole/9,000-metre drilling program at the Wide Formation target in the Carn Brea South exploration area commenced in late summer 2023;
• Drill program to test the geometry and the continuity of tin mineralization within the Wide Formation target -- testing an area measuring 2,500 m along strike (northeast to southwest) and 500 m down dip (north to south);
• Two drills are on site with holes No. 7 and No. 8 currently under way;
• Great Flat lode and Wide Formation mineralization structures have been intersected where expected;
• 4,700 metres drilled to date and assays will be reported when available;
• Drilling program expected to be completed in summer 2024.

About Cornish Metals Inc.

Cornish Metals is a dual-listed company focused on advancing the South Crofty high-grade, underground tin project through to a construction decision, as well as exploring its additional mineral rights, all located in Cornwall, United Kingdom.

The mineral resource estimate for South Crofty is available in a report titled "South Crofty Tin Project -- Mineral Resource Update NI 43-101 Technical Report," dated Oct. 27, 2023, co-authored by N. Szebor (MCSM, MSc, BSc, CGeol, EurGeol, FGS) and R. Chesher (FAusIMM (CP), RPEQ, MTMS), of AMC Consultants, and can be accessed on the company's SEDAR+ page.

Technical information

The technical information in this news release has been compiled by Owen Mihalop who has reviewed and takes responsibility for the data and geological interpretation. Mr. Mihalop (MCSM, BSc (honours), MSc, FGS, MIMMM, CEng) is chief operating officer for Cornish Metals and has sufficient experience relevant to the style of mineralization and type of deposit under consideration and to the activity which he is undertaking to qualify as a competent person as defined under the JORC Code (2012) and as a qualified person under National Instrument 43-101. Mr. Mihalop consents to the inclusion in this announcement of the matters based on his information in the form and context in which it appears.

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