Mr. Maritz Smith reports

ALPHAMIN ANNOUNCES RECORD ANNUAL TIN PRODUCTION / EBITDA AND AISC GUIDANCE / US$50 MILLION TIN PREPAYMENT ARRANGEMENT SECURED

Alphamin Resources Corp. has provided the following update for the year and quarter ended December, 2023:

• Fiscal year 2023 tin production of 12,568 tonnes, up 1 per cent from the prior year;
• Q4 tin production of 3,126 tonnes;
• Q4 tin sales of 2,046 tonnes impacted by poor road conditions, which have subsequently improved FY 2023;
• EBITDA (earnings before interest, taxes, depreciation and amortization) guidance of $136-million (U.S.) at an average tin price of $26,009 (U.S.)/t, with EBITDA negatively affected by a temporary delay in Q4 tin sales volumes;
• $50-million (U.S.) tin prepayment arrangement and lower marketing commission secured.

Operational and financial performance

Contained tin production of 3,126 tonnes for the quarter ended December, 2023, was in line with the previous quarter. Tin production of 12,568 tonnes for the year ended December, 2023, exceeded market guidance of 12,000 tonnes. The Mpama North underground mine continues to deliver ore at tin grades and volumes in line with expectations. The Mpama North processing facility performed well, achieving overall recoveries of 75 per cent during FY 2023 (FY 2022: 75 per cent).

As previously reported, poor road conditions resulting from record heavy rainfall had a negative impact on truck transit times and export revenue receipts during Q4 2023. The rains have subsided significantly from mid-December, 2023, with rainfall now averaging approximately 10 per cent of that recorded in October/November, 2023. As a result of increased truck transit times, Q4 2023 contained tin sales of 2,046 tonnes was 1,080 tonnes less than the quarter's production and resulted in high levels of tin in stock. The delay in tin sales should catch up during Q1 2024 and accordingly only then report to EBITDA and revenue receipts.

Guidance for AISC (all-in sustaining cost) per tonne of tin sold is $14,259 (U.S.) and $14,645 (U.S.) for the year and quarter ended December, 2023, respectively. This is in line with that of the prior periods. On-mine operating expenditure increased by 5 per cent compared with the prior year, mainly due to a 32-per-cent increase in underground development metres at Mpama North and higher diesel prices. Additional Mpama North underground development has resulted in increased developed reserves, higher run-of-mine ore stockpiles and improved future operational flexibility.

EBITDA for FY 2023 and Q4 2023 is estimated at $136-million (U.S.) (FY 2022: $222-million (U.S.)) and $20-million (U.S.) (Q3 2023: $38-million (U.S.)), respectively. The EBITDA variance compared with prior periods is attributable to lower tin prices and a delay in tin sales in Q4 2023 (Q4 sales delay has an approximately $14-million (U.S.) impact on EBITDA for the quarter and year ended December, 2023).

Alphamin's audited consolidated financial statements and accompanying management's discussion and analysis for the year and quarter ended Dec. 31, 2023, are expected to be released on or about March 14, 2024.

Mpama South update and production guidance for the year ending December, 2024

The initial development of the Mpama South underground mine has been completed on time. In addition, the underground development should ensure sufficient developed mineral resources to ensure adequate stockpiles ahead of the processing plant's commissioning. This should allow for a rapid ramp-up of tin production following plant commissioning. As was previously reported, logistical delays due to poor inbound road conditions have deferred the commencement of processing to the end of March, 2024. The processing plant mechanical erection and installation are essentially complete with the main outstanding work relating to completion of the installation of electrical cabling, the installation of instrumentation and the commissioning of the plant.

On the basis of incremental tin production from the Mpama South plant from April 1, 2024, the company expects contained tin production of between 17,000 tonnes and 18,000 tonnes for the year ending December, 2024 (FY 2023: 12,568 tonnes).

The Mpama South capital expenditure cost to steady-state production, including operational readiness costs, is expected to exceed the $116-million (U.S.) budget by approximately 10 per cent primarily as a result of weather-related delays, higher logistical and import costs, as well as minor scope changes.

$50-million (U.S.) tin prepayment arrangement secured

Alphamin is pleased to announce that it has secured a four-year extension (Oct. 1, 2024, to Sept. 30, 2028) to its current offtake agreement with the Gerald Group on the basis of an approximately 60-per-cent reduction in tin marketing costs and an up to $50-million (U.S.) tin prepayment arrangement. The tin prepayment arrangement is effective immediately and may be utilized for tin concentrates in transit but not yet exported as well as up to $10-million (U.S.) for tin concentrates produced not yet loaded for departure. The facility carries an interest rate of CME 3M term secured overnight financing rate plus 5 per cent (calculated at 10.3 per cent currently).

Capital allocation

Alphamin's vision is to become one of the world's largest sustainable tin producers. From a capital allocation perspective, the board considers the combination of investment in growth, continuing exploration and a high dividend yield a robust value proposition. The financing of the Mpama South expansion project, shareholder distributions and Democratic Republic of the Congo income tax payments were a priority during the year ended December, 2023. The allocation of capital in FY 2024 will be prioritized toward completion of the Mpama South project in Q1 2024, significantly lower DRC income taxes on the basis of large advance provisional payments made during FY 2023 and continuing shareholder distributions. As previously reported, the company intends to make a final FY 2023 dividend decision in April, 2024, to align with the timing of holding the annual general meeting of Alphamin Bisie Mining SA (ABM), the company's DRC subsidiary, to approve ABM's annual financial statements and consideration of the declaration of a dividend for distribution to the company and other minority shareholders.

Qualified person

Clive Brown, PrEng, BSc, engineering (mining), is a qualified person (QP) as defined in National Instrument 43-101 and has reviewed and approved the scientific and technical information contained in this news release. He is a principal consultant and director of Bara Consulting Pty. Ltd., an independent technical consultant to the company.

We seek Safe Harbor.