Mr. Patrick Chambers reports

HORIZONTE MINERALS PLC ANNOUNCES CORPORATE UPDATE

As part of the interim financing package Horizonte Minerals PLC announced on Dec. 27, 2023, pursuant to which the existing senior lenders had agreed to waivers including the deferral of interest originally due at Dec. 31, 2023, to the end of February, 2024, such senior lenders have now agreed to extend the waivers until the March 29, 2024.

The company will continue to work closely with its major shareholders and senior lenders on a full funding solution, targeted for the end of Q2 2024. While a strong focus remains on controlling costs during this period, as announced on Feb. 19, 2024, the company expects that it will require an additional interim financing to implement such full financing solution. As at Feb. 27,2024, the company had a cash balance of $24.8-million (U.S.) (excluding cash that is segregated for the development of the Vermelho project) which is currently expected to provide sufficient working capital until mid-April, 2024. However, this may vary depending on the progress of discussions with creditors, the cash expenditure profile of the Araguaia project and potential working capital saving measures being explored by the company.

At this time, there can be no guarantee that a refinancing and restructuring solution will lead to a positive outcome for existing shareholders and noteholders of the company, nor that senior lenders will continue to extend the waivers (including interest deferral) until a full funding solution is completed. Further updates will be provided in due course.

In the meantime, the company's Brazilian subsidiary, Araguaia Niquel Metais Ltda. (ANML), which is the borrower of the senior loan facilities, may need to resort to certain protective measures to negotiate indebtedness and work on a restructuring plan to be approved by its creditors. This would be sought by ANML to allow it a longer period to negotiate or mediate with creditors and would be aimed at ensuring the negotiations can be undertaken in a balanced and transparent manner, whilst assisting to protect its cash in the short term during the relevant period in which protective measures are in force.

The company considers that an application for protective measures by ANML would not directly impact Horizonte Minerals' current financial condition. However, as a guarantor of ANML's debt under the senior loan facilities, if claims are made in relation to the guarantee, the company may also need to consider applying for protective measures that may be available to it, in the event that a refinancing and restructuring solution for the group is not achieved or if no agreement is reached with senior lenders with respect to further extensions of the abovementioned waivers.

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.

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