Mr. Patrick Chambers reports

HORIZONTE MINERALS PLC ANNOUNCES ARAGUAIA PROJECT UPDATE

Discussions with Horizonte Minerals PLC's cornerstone shareholders on an interim financing package continue to progress. Discussions were initiated to provide sufficient liquidity for the company to complete the required re-estimation and risk reduction work necessary to implement a full financing solution for its flagship Araguaia nickel project.

Line 1 operational and financing update

As announced on Nov. 14, 2023, the company reduced construction activities at Araguaia, progressing only critical work streams in order to manage the company's liquidity, whilst continuing discussions with the company's cornerstone shareholders and senior lenders. Based on the cash preservation measures undertaken to date, and continuing conversations with suppliers, the company now estimates to have sufficient working capital until the end of January, 2024. If successful, the discussions with the cornerstone shareholders and senior lenders should avail further interim financing to extend this period.

As of Dec. 15, 2023, the group had a cash position of $42-million (U.S.), of which $19-million (U.S.) is held in secured accounts relating to Araguaia's project financing and $16-million (U.S.) is segregated for the development of Vermelho, with the balance of $7-million (U.S.) spread amongst other entities for the continuing running of the group.

The company's cornerstone shareholders and senior lenders are continuing to undertake their respective due diligence as part of a full financing solution, which includes working with the company and independent consultants who are undertaking a review of the outstanding project capital expenditure and schedule. It is expected that this due diligence process and independent review will be finalized in Q1 2024, with a full financing solution targeted for early Q2 2024.

During this slowdown period, the company continues to advance construction of two workstreams, the water storage reservoir and the 230-kilovolt power line, both critical components of rotary kiln electric furnace (RKEF) operations, while maintaining a strong focus on safety and cash preservation measures.

In conjunction with the above, the company continues to be focused on minimizing the impacts of the deceleration and demobilization of construction activities on site, as well as taking the necessary actions to secure a safe and sustainable resumption of construction activities following the slowdown.

Line 2 feasibility study

Due to the continuing review of the outstanding project capital expenditure and schedule for Araguaia Line 1, the Line 2 feasibility study has been placed on hold given the intrinsic relationship between Araguaia Line 1 and Line 2.

About Horizonte Minerals PLC

Horizonte Minerals is developing two 100-per-cent-owned, Tier 1 projects in Para state, Brazil -- the Araguaia nickel project and the Vermelho nickel-cobalt project. Both projects are high grade, low cost, with low carbon emission intensities and are scalable. Araguaia is under construction and when fully ramped up with both Line 1 and Line 2, is forecast to produce 29,000 tonnes of nickel per year. Vermelho is at feasibility study stage and is expected to supply nickel to the critical metals market. Horizonte's combined production profile of over 60,000 tonnes of nickel per year positions the company as a globally significant nickel producer. Horizonte's top three shareholders are La Mancha Investments sarl, Glencore PLC and Orion Resource Partners LLP.

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