EASTINCO MINING AND EXPLORATION PLC

("EME" OR THE "COMPANY")

INTERIM RESULTS FOR THE SIX MONTHS ENDED 30TH JUNE 2021

Chairman's Statement

I am pleased to announce the unaudited Interim Results of the Company for the half-year ending 30th June 2021.

These accounts relate to the Company for the first half of 2021 and reflect a loss of £252,000 from administrative costs, corresponding to the Company's expenditure on overheads, operational costs, legal and professional expenses primarily related to the Musasa JV operation in Rwanda.  Over the period, management maintained its COVID-19 protocols for cash management and refrained from receiving salaries. We anticipate shortly the grant of Employee Benefit Trust options and/or shares to the management who have worked tirelessly over this period.

The Company received approximately £150,000 (or $200,000) of share subscription for cash and services from the issue of 11,604,934 new ordinary shares and 11,604,934 3-pence warrants (expiring in August 2024) by a new shareholder, and two existing shareholders. 

Eastinco Update

In January, the Company announced the advanced negotiation for an Offtake Agreement for the Musasa mine tantalum and tin production. The potential offtake partner is a wholly owned subsidiary of multi-national Noble Group Holdings. At the time of this announcement metal prices in Kigali were around $110/kg, and now tantalum is commanding prices in excess of $165/kg. We look forward to completing negotiations with the restart of operations.

During the reporting period the COVID-19 pandemic seriously impacted the potential for Musasa mine operations. Numerous positive modifications have been completed on the wash plant, however the workflow has been severely hampered and adversely effected by Government imposed restrictions and lockdowns as a result of the COVID-19 pandemic. We have re-designed the water reticulation system including the recycling of plant water and the management of the river dam. We have also installed a large capacity water pump, imported from the UK, to ensure stable and consistent flow rates. Towards the end of the half year period, we were able to bring in international based process and geological consultant engineers to provide further guidance on the Musasa operation. The focus continues to be on metallurgical test work on plant feed material and selective wash plant samples to build on the knowledge database. As a direct result we have ordered six new slurry pumps and arrival is pending. These pumps will improve material flow dramatically and provide for improved recoveries.

In May the Company, together with its partner on the Musasa Project the Kuaka Cooperative, submitted an application to covert the existing small-scale 50-hectare licence into a 400-hectare large-scale mining licence. As of today, this application is still pending.

In June, the Company announced a new Joint Venture project in southern Rwanda. The Agreement was concluded with a Rwandan entity to explore and develop mineral opportunities over an area covering 2,750 hectares, which the JV Partner holds a newly issued license for the exploration and development of tantalum, niobium, tin and tungsten metal resources. Under the terms of the Agreement, EME will incorporate a new JV Company in Rwanda and hold 70% of the issued share capital with the JV Partner holding 30% as a free-carried interest and entitled to Board representation on the new JV Company.

The licence area has encouraging elements of an existing pegmatite swarm, with two identified occurrences readily available for immediate geological prospecting and evaluation. This is highly promising. The known pegmatites form an encouraging exploration target with considerable upside exploration potential if the tantalum grade distribution along the strike and depth extensions can be proven. If so, then EME's landholding in southern Rwanda will comprise a significant new pegmatite field in Rwanda.

Currently the operations in-country have unfortunately been suspended until the COVID restrictions are lifted, and free movement of staff is allowed, and also pending the additional wash plant equipment deliveries.

In February 2021, Mr. Simon Rollason was appointed as a director of the Company and Mr. Michael Staten stepped down as director of the Company.

Charles Bray

Executive Chairman

20 September 2021

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EASTINCO MINING AND EXPLORATION PLC

UNAUDITED CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME

EASTINCO MINING AND EXPLORATION PLC  

UNAUDITED CONSOLIDATED STATEMENT OF CHANGES IN EQUITY

FOR THE SIX MONTHS ENDED 30 JUNE 2021

   EASTINCO MINING AND EXPLORATION PLC

   UNAUDITED CONSOLIDATED STATEMENT OF FINANCIAL POSITION