Alphamin Resources Corporation (JSE:APH) News - Alphamin announces an updated Mpama South mineral resource estimate and the decision to commence with development

Alphamin Resources Corp.
Continued in the Republic of Mauritius
Date of incorporation: 12 August 1981
Corporation number: C125884 C1/GBL
TSX-V share code: AFM
JSE share code: APH
ISIN: MU0456S00006

        ALPHAMIN ANNOUNCES AN UPDATED MPAMA SOUTH MINERAL RESOURCE
           ESTIMATE AND THE DECISION TO COMMENCE WITH DEVELOPMENT

29 March 2022 – Alphamin Resources Corp. (AFM:TSXV, APH:JSE AltX, “Alphamin” or the
“Company”), a producer of 4% of the world’s mined tin1 from its high-grade operation in the
Democratic Republic of Congo, is pleased to announce an updated Mpama South Mineral
Resource estimate and the decision to commence with the development of the Mpama South
mine and processing plant.

HIGHLIGHTS

     - Mpama South updated Inferred Resource up 75% to 3.42Mt based on assays from 22
       additional drillholes. Mpama South Mineral Resource now stands at:-
                •    0.85Mt @ 2.55% Sn for 21.5kt contained tin in the Indicated category; and
                •    3.42Mt @ 2.45% Sn for 83.7kt contained tin in the Inferred category

     - Significant additional resource growth potential at Mpama South - drilling is on-going
       with considerable mineralisation intercepted beyond the updated Mineral Resource
       boundary

     - Decision to commence with the development of Mpama South:-

                o    Targeted first tin production by December 2023
                o    Estimated annual contained tin production of 7,232 tonnes3 at an estimated
                     AISC2 of US$15,188/t tin (Based on an assumed US$40,000/t tin price)
                o    Estimated annual EBITDA2 of US$187m3 at an assumed tin price of US$40,000/t

1 Data obtained from International Tin Association Tin Industry Review 2020.
2 This is a non-GAAP financial measure, is not standardized and may not be comparable to similar financial measures of other issuers. See “Use
of Non-IFRS Financial Performance Measures” below for a further explanation of this performance metric and how it is calculated.
                  o    Estimated capital development cost of US$116m3 providing a projected short
                       payback in relation to annual EBITDA potential
                  o    De-risked project execution with similar mining method, mining fleet and
                       processing route as currently applied at Alphamin’s adjacent Mpama North Mine
                  o    Capital development cost to be funded from cash reserves
     - Mpama South’s development is expected to increase annual contained tin production from
       the current 12,000tpa to ~20,000tpa, approximating 6.6% of the world’s mined tin1

Chief Executive Officer, Maritz Smith comments:
“The development of Mpama South as a brownfields expansion is expected to increase
Alphamin’s annual tin production by 65% to a targeted 20,000t from FY2024. Tin and technology
are inter-linked and consequently global demand for tin continues to increase despite constrained
supply. This development decision and the resultant additional production expected by the end of
2023, positions us to deliver more tin into this widening market deficit.”

Mpama South Updated Mineral Resource Estimate
The updated Mineral Resource for Mpama South follows three weeks after the announcement of
the maiden Mineral Resource in the Company’s announcement of 7th March 2022. The update is
based on the receipt of assays for a further 22 drillholes to the original 79 drillholes on which the
Maiden Mineral Resource estimate was based.
The updated Mineral Resource presented in Figure 1 closely follows the spatial position of
reported assays which Alphamin presented in its 22nd March 2022 Company announcement. This
practice of regularly plotting intercepted visual cassiterite and assays in news announcements,
as an early indication of where Mineral Resources may potentially extend to and then following it
up with regular Mineral Resource updates, is planned to continue during 2022.

    Figure 1: Updated Mpama South Mineral Resource and visual cassiterite intercepts
    awaiting assay

3   Data obtained from Preliminary Economic Assessment study announced on 7 March 2022.
    Source: Alphamin 2022

Following the receipt of assays for the additional 22 drillholes, an updated Mineral Resource
Estimate (MRE) for the Mpama South project was completed. The MRE, which now includes
results from 102 drillholes, was estimated using the Canadian Institute of Mining, Metallurgy and
Petroleum (CIM) Best Practice Guidelines (2019) and is reported in accordance with the 2014
CIM Definition Standards.

The Mineral Resource is classified into the Indicated and Inferred categories and is reported at a
base case tin grade of 1.0%, which satisfies reasonable prospects for economic extraction.
Mpama South Inferred Resources increased by 75% to 3.42Mt. The Mineral Resource Statement
with an effective date of 28 March 2022 is presented in Table 1:-
Table 1: Updated Mpama South Mineral Resources effective 28 March 2022
                                                                                                                        Sn Tonnes
    Classification                     Tonnes (millions)                                Sn %
                                                                                                                        (thousands)
    Indicated4                                      0.85                                2.55                                21.5
    Inferred5                                       3.42                                2.45                                83.7

Mineral Resources that are not Mineral Reserves do not have a demonstrated economic viability
and require advanced studies and economic analysis to prove their viability for extraction.

4 CIM Definition: An Indicated Mineral Resource is that part of a Mineral Resource for which quantity, grade or quality, densities, shape and
physical characteristics are estimated with sufficient confidence to allow the application of Modifying Factors insufficient detail to support mine
planning and evaluation of the economic viability of the deposit.
5 CIM Definition: An Inferred Mineral Resource is that part of a Mineral Resource for which quantity and grade or quality are estimated on the

basis of limited geological evidence and sampling. Geological evidence is sufficient to imply but not verify geological and grade or quality
continuity.

The MRE for Mpama South does not include a substantial quantity of subsequent drilling
containing characteristic high grade visual cassiterite. Around 30 additional drillholes and over
~10,000 metres beyond and within the limits of the updated MRE at Mpama South have been
completed. Subsequent Mpama South MRE updates are expected to be released throughout the
remainder of the drilling phases in 2022 and beyond as assays are received.
The MRE has been completed by Mr. J.C. Witley (BSc Hons, MSc (Eng.)) who is a geologist with
33 years’ experience in base and precious metals exploration and mining as well as Mineral
Resource evaluation and reporting. He is a Principal Resource Consultant for The MSA Group
(an independent consulting company), is registered with the South African Council for Natural
Scientific Professions (SACNASP) and is a Fellow of the Geological Society of South Africa
(GSSA). Mr. Witley has the appropriate relevant qualifications and experience to be considered
a “Qualified Person” for the style and type of mineralisation and activity being undertaken as
defined in National Instrument 43-101 Standards of Disclosure of Mineral Projects.

Preliminary Economic Assessment (PEA) Results on Mpama South
Summary results from the PEA announced on 7 March 2022 are tabulated below. The PEA was
based on the maiden Resource estimate and excludes Resources from the updated MRE
included in this announcement.

 Description                                                                 Unit                  Value
 Avg. Annualised ROM mined and processed                                    ‘000t                    468
 Avg. Annualised ROM grade                                                   %Sn                    2.21
 Processing recovery                                                          %                     70.0
 Avg. Annualised Contained tin produced                                    tonnes                  7,232
 Avg. Annualised AISC per tonne contained tin sold (At                     $/t tin                15,188
 US$40,000/t tin price)
 Avg. Annualised AISC per tonne contained tin sold (At                     $/t tin                14,326
 US$30,000/t tin price)
 Avg. Annualised EBITDA (At US$40,000/t tin price)                         US$’000               187,310
 Avg. Annualised EBITDA (At US$30,000/t tin price)                         US$’000               121,220
 Development Capital Estimate                                              US$’000               115,970
* The outputs are based on 100% of the project. Alphamin indirectly owns 84,14% of the project.

The PEA is preliminary in nature, it includes Inferred Mineral Resources that are considered too
speculative geologically to have economic considerations applied to them that would enable them
to be categorized as Mineral Reserves. There is no certainty that the PEA results will be realized.
Mineral Resources are not Mineral Reserves and do not have demonstrated economic viability,
nor is there certainty that the Mineral Resource will be converted into Mineral Reserves.

Decision to commence with the development of Mpama South
PEA studies are conceptual in nature and are most commonly applied to projects at an early stage
of exploration to conceptualise potential viability. A PEA is not a pre-feasibility or feasibility study
and the Company does not purport the PEA results to be equivalent to a feasibility study.
However, notwithstanding the very preliminary and conceptual nature of the PEA, based on the
Company’s experience at Mpama North and knowledge base, including regarding underground
conditions, the mining method and processing route, and the proximity and very similar
characteristics of the deposits, the Company believes that Mpama South represents an
immediately accessible adjacent Resource to the current producing Mpama North mine.
The Board has approved the commencement of development of Mpama South without delay
taking account of:

   •   the opportunity to take advantage of the current and forecasted supply deficit in the tin
       market;
   •   the Company’s ability to self-fund its development from current and short-term forecasted
       cash reserves;
   •   the continued exploration success at Mpama South which has immediate potential for
       further resource extensions and successful conversion of inferred resources;
   •   the expected short payback on this capital investment;
   •   the potential significant value any additional production has to the operating profits of the
       Company in the near term.

The lead time to project completion and commissioning is estimated at 20 months with first tin
production targeted by December 2023. The surface infrastructure and processing plant
construction will be executed under an EPCM contract model, using contractors who are familiar
with the Mpama North mine, and who have proven their competence at the mine to date. The
underground mine development will be executed by a dedicated Alphamin mining team who will
progress from developing the project to planned production mining.

Qualified Persons
Mr Jeremy Witley, Pr. Sci. Nat., B.Sc. (Hons.) Mining Geology, M.Sc. (Eng.), is a qualified person
(QP) as defined in National Instrument 43-101 and has reviewed and approved the scientific and
technical information relating to Mineral Resources contained in this news release. He is a
Principal Mineral Resource Consultant of The MSA Group (Pty.) Ltd., an independent technical
consultant to the Company.

Mr. Clive Brown, Pr. Eng., B.Sc. Engineering (Mining), is a qualified person (QP) as defined in
National Instrument 43-101 and has reviewed and approved all scientific and technical information
other than relating to the mineral resources contained in this news release. He is a Principal
Consultant and Director of Bara Consulting Pty Limited, an independent technical consultant to
the Company.
____________________________________________________________________________

FOR MORE INFORMATION, PLEASE CONTACT:
Maritz Smith
CEO
Alphamin Resources Corp.
Tel: +230 269 4166
E-mail: msmith@alphaminresources.com

JSE Sponsor
Nedbank Corporate and Investment Banking, a division of Nedbank Limited
____________________________________________________________________________

CAUTION REGARDING FORWARD LOOKING STATEMENTS
Information in this news release that is not a statement of historical fact constitutes forward-
looking information. Forward-looking statements contained herein include, without limitation,
statements relating to the results of the Mpama South PEA, including estimated development
costs, estimated quantities of materials to be mined and processed, estimated grades,
metallurgical recoveries and quantities of tin to be produced, and estimated costs of production
and EBITDA, estimated time for mine construction, the merit and potential viability of the project,
estimated Mineral Resources for Mpama South, development of a mine at Mpama South and
anticipated exploration activities and outcomes. Forward-looking statements are based on
assumptions management believes to be reasonable at the time such statements are made.
There can be no assurance that such statements will prove to be accurate, as actual results and
future events could differ materially from those anticipated in such statements. Accordingly,
readers should not place undue reliance on forward-looking statements. Although Alphamin has
attempted to identify important factors that could cause actual results to differ materially from
those contained in forward-looking statements, there may be other factors that cause results not
to be as anticipated, estimated or intended. Factors that may cause actual results to differ
materially from expected results described in forward-looking statements include, but are not
limited to: uncertainties inherent in estimates of Mineral Resources, mine development and
operating costs, mining volumes, grades and processing recoveries, particularly in light of the
very early stage at which some of these estimates are being made, global economic uncertainties,
volatility of metal prices, uncertainties with respect to social, community and environmental
impacts, uninterrupted access to required infrastructure, adverse political geopolitical events,
impacts of the global Covid-19 pandemic on mining, global supply chain issues which may cause
longer lead-times to procure critical equipment and consumables which may delay project
implementation as well as those risk factors set out in the Company’s Management Discussion
and Analysis and other disclosure documents available under the Company’s profile at
www.sedar.com. Forward-looking statements contained herein are made as of the date of this
news release and Alphamin disclaims any obligation to update any forward-looking statements,
whether as a result of new information, future events or results or otherwise, except as required
by applicable securities laws.

USE OF NON-IFRS FINANCIAL PERFORMANCE MEASURES
This announcement refers to the following non-IFRS financial performance measures:

EBITDA
EBITDA is profit before net finance expense, income taxes and depreciation, depletion, and
amortization. This measure assists readers in understanding the cash generating potential of the
project including liquidity to fund working capital, pay taxes, service debt, and funding capital
expenditures and investment opportunities.

This measure is not recognized under IFRS as it does not have any standardized meaning
prescribed by IFRS and is therefore unlikely to be comparable to similar measures presented by
other issuers. EBITDA data is intended to provide additional information and should not be
considered in isolation or as a substitute for measures of performance prepared in accordance
with IFRS.

AISC

This measures the costs to produce a tonne of contained tin plus the capital sustaining costs to
maintain the mine, processing plant and infrastructure. AISC includes mine operating production
expenses such as mining, processing, administration, indirect charges (including surface
maintenance and camp and tailings dam construction costs), smelting costs and deductions,
refining and freight, distribution, royalties and product marketing fees. AISC does not include
depreciation, depletion, and amortization, reclamation expenses, borrowing costs and exploration
expenses. Contractual product marketing fees terminate in August 2024, following which date
zero marketing fees have been included in estimated AISC and EBITDA.

Sustaining capital expenditures are defined as those expenditures which do not increase
contained tin production at a mine site and excludes all expenditures at the Company’s projects
and certain expenditures at the Company’s operating sites which are deemed expansionary in
nature.

Risks relating to Mineral Resource Estimates

The figures for Mineral Resources contained in this news release are estimates only and no
assurance can be given that the anticipated tonnages and grades will be achieved, that the
indicated level of recovery will be realized or that the Mineral Resources could be mined or
processed profitably. There are numerous uncertainties inherent in estimating Mineral Resources,
including many factors beyond the Company’s control. Such estimation is a subjective process,
and the accuracy of any resource estimate is a function of the quantity and quality of available
data and of the assumptions made and judgments used in engineering and geological
interpretation. Short-term operating factors relating to the Mineral Resources, such as the need
for orderly development of the ore bodies or the processing of new or different ore grades, may
cause the mining operation to be unprofitable in any particular accounting period. In addition,
there can be no assurance that metal recoveries in small scale laboratory tests will be duplicated
in larger scale tests under on-site conditions or during production. Lower market prices, increased
production costs, the presence of deleterious elements, reduced recovery rates and other factors
may result in revision of its resource estimates from time to time or may render the Company’s
resources uneconomic to exploit. Resource data is not indicative of future results of operations.
If the Company’s actual Mineral Resources are less than current estimates or if the Company fails
to develop its resource base through the realization of identified mineralized potential, its results
of operations or financial condition may be materially and adversely affected.

Neither the TSX Venture Exchange nor its regulation services provider (as that term is defined in
the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of
this news release.

Appendix 1: SAMPLE PREPARATION, ANALYSES AND QUALITY CONTROL AND QUALITY
ASSURANCE (QAQC)
After receipt of diamond drill core from the drillers at the drill rig in marked core trays, core was
transported to the Company’s core shed by the site geologist for logging and sampling. After
sample mark up, lithological and geotechnical logging and photography, the core was split
longitudinally in half using a water-cooled rotating diamond blade core saw. The cut core was
replaced into the core tray with the half to be sampled facing upward. The Archimedes method of
weight in air vs weight in water was used to provide relative density measurements on the whole
length of the half core that was to be sampled and then replaced in the core trays.

Air dried samples were placed in pre-numbered sample bags together with pre-printed numbered
sample tickets, which were cross-checked afterwards to prevent sample swaps. Sample bags
were sealed using a plastic cable tie and then placed into poly-weave sacks which were in turn
sealed with plastic cable ties. Each poly-weave sack was marked with a number and the sample
numbers contained within, ready for delivery to the on-site Alphamin-Bisie laboratory (managed
by Anchem) for sample preparation.

At the laboratory, samples were first checked off against the submission list supplied and then
weighed and oven dried for 2 hours at 105 degrees Celsius. The dried samples were crushed by
jaw crusher to 75% passing 2mm, from which a 250g riffle split was taken. This 250g split was
pulverised in ring mills to 90% passing 75?m from which a sample for analysis was taken.
Samples were homogenised using a corner-to-corner methodology and two samples were taken
from each pulp, one of 10g for on-site laboratory preliminary assaying and another 150g sample
for export and independent accredited 3rd party laboratory assaying.

For the initial on-site laboratory assay, 10 grams of pulverised sample is mixed with 2 grams of
binder before press pellet preparation at 20t/psi for 1 minute. Press pellets are analysed in a
desktop Spectro Xepos XRF analyser, twelve at a time, for Sn, Fe, Zn, Cu, Ag, Pb and As along
with a standard, duplicate and blank. The analytical method conducted on the pressed pellet has
an expected 10% precision and an upper detection limit of 70,000ppm and lower detection limit
of 500ppm. Over-limit samples are titrated by wet chemistry with an upper limit validation of 70%
Sn. The on-site laboratory assays are merely an exploration tool and were not used for reporting
the exploration results or Mineral Resource estimation, which are based solely on the ALS assays.

The 150g sample is packaged in sealed paper sample envelopes and packed in a box for export
in batches of approximately 500 samples and prepared for export authorisation with national
authorities. Once authorisation is received, samples are air-couriered to ALS Global in
Johannesburg South Africa, a subsidiary of ALS Limited, which is an independent commercial
analytical facility. ALS operations are ISO 9001:2015 certificated and the Johannesburg office is
ISO 17025 accredited for Chemical Analysis by SANAS (South African National Accreditation
System, facility number T087), although the accreditation does not extend to the methods used
for tin.

Received samples at ALS Johannesburg are checked off against the list of samples supplied and
logged in the system. Quality Control is performed in the way of sieve tests every 50 samples and
should a sample fail, the preceding 50 samples are ground in a ring mill pulveriser using a carbon
steel ring set to 85 % passing 75?m. Samples are analysed for tin using method code ME-XRF05
conducted on a pressed pellet with 10% precision and an upper limit of 5,000ppm. The over-limit
tin samples are analysed as fused disks according to method ME-XRF15c, which makes use of
pre-oxidation and decomposition by fusion with 12:22 lithium borate flux containing 20% Sodium
Nitrate as an oxidizing agent, with an upper detection limit of 79% Sn.

Method code ME-ICP61 (HF, HNO3, HClO4 and HCl leach with ICP-AES finish) is used for 33
elements including base metals. ME-OG62, a four-acid digestion, is used on ore grade samples
for lead, zinc, copper and silver. Both methods are accredited by SANAS.

The program is designed to include a comprehensive analytical quality assurance and control
routine comprising the systematic use of Company inserted standards, blanks and field duplicate
samples, internal laboratory standards and analysis at an accredited laboratory. The pulps were
accompanied by blind QAQC samples inserted into the sample stream by the Alphamin-Bisie
geologists. These comprised blank samples, certified reference materials and pulp duplicates
each at an insertion rate of approximately 5%.

The QAQC results demonstrate that the assay results are both accurate and precise with an
insignificant amount of contamination (in the order of 10pmm Sn on average) and negligible
sampling errors.

Laboratory verification work was conducted by check assays conducted at SGS South Africa (Pty)
Ltd. This included 105 check samples submitted in November 2021. These samples comprised
duplicated pulps from the maiden resource drillholes derived from the sample preparation at the
on-site laboratory. CRMs and blanks to an appropriate level also formed part of the 105-sample
submission. Check assay results showed that there was a near zero overall bias and that inter-
lab precision, after removal of  1% is less than 1%.
                                          o Tendency for ALS to be higher (~5%) for the grade ranges
                                              less than 1%.
                                    •    Inter-lab precision (after removal of