Mr. Karim Nasr reports

HORIZONTE MINERALS PLC ANNOUNCES CORPORATE UPDATE

After a period of discussions to restructure the group's debt in conjunction with seeking a fully financed solution for its 100-per-cent-owned Araguaia nickel project and actively engaging existing and new potential investors, Horizonte Minerals PLC has been unable to secure interest in the full financing needed to complete the project or in a group acquiring the project. In the absence of a financing solution, Horizonte must now consider alternative options for the company's subsidiaries in the interest of its secured creditors, which may include raising financing at the subsidiary level, a sale of the project whilst in care and maintenance, the liquidation of the assets of the project, or other options available under Brazilian laws. The company does not believe that any of these options are likely to recover any value for the company's shareholders.

Since the end of November, 2023, the new management team has stabilized the business and undertook a comprehensive audit of the cost to complete and business plan to critically assess the current viability of the project. The results of this audit demonstrated Araguaia's project fundamentals as a robust first-quartile operating cost asset, but also highlighted a significant increase of the cost to complete compared with previous estimates. Following an extensive engagement and global road show where over 150 parties, including over 39 which entered into non-disclosure agreements (NDAs), were approached across both debt and equity, the company has been unable to secure the full financing needed to complete the project at this time. The majority of investors who conducted detailed due diligence on the project, after signing NDAs, cited the unfavourable nickel market environment as the reason for declining to pursue the opportunity further. Despite nickel's long-term outlook being strong, investor sentiment has been dampened by low spot prices and near-term uncertainties, which include: the supply surplus from Indonesia, and the consequent downward shift in the cost curve; risks to global nickel demand; and market dynamics of Class I and Class II nickel products.

Discussions with secured creditors, and existing and new potential investors, on alternative scenarios will continue to be held with a view to a potential restructuring solution to attempt to achieve some recovery value to the company's creditors. These include raising financing at the subsidiary level, or disposing of the project whilst in care and maintenance, thereby maintaining the prospect of the project as a going concern, liquidation of the assets of the project, or the consideration of other options available under Brazilian laws to attempt to achieve the best possible recovery to the company's creditors while minimizing potential liabilities. As at April 10, 2024, the company had a cash balance of $16.2-million (U.S.) (excluding cash that is segregated for the development of the Vermelho project).

Furthermore, given the lack of more favourable scenarios to deal with the company's liabilities, the board is continuously reviewing the options alongside its professional advisers.

Karim Nasr, interim chief executive officer of Horizonte, commented: "The board and management are extremely disappointed by the results of our effort to attract financing into the company. While we received commendation on the quality of the project and of the comprehensive work put together by the company's team, and supportive attitude of the company's creditors and cornerstone shareholders, the lack of prospects in a recovery of the ferronickel market considering Indonesian supply dynamics have impeded the confidence of investors in earlier-stage projects with high capital intensity, including Horizonte.

"We regret the impact this outcome will have on our many stakeholders. I want to thank everyone involved, especially the Horizonte team, for their efforts through this very challenging period."

We seek Safe Harbor.