EASTINCO MINING AND EXPLORATION PLC

("EME" or the "Company")

FINAL RESULTS FOR THE YEAR ENDED 31 DECEMBER 2020

Eastinco Mining and Exploration plc (AQSE: EM.P) announces its full year results for the 2020. 

Chairman's Statement

2020 was a year of investment, development and COVID-related operational delays for Eastinco Mining and Exploration Plc ("EME" or "Eastinco") specifically at our Musasa mine site which is operated by our Rwandan registered, 100% owned subsidiary company, Eastinco Limited ("EME Ltd").

It has been an extremely challenging year for EME and everyone globally, as we live and operate in unprecedented times. Our priority and responsibility have, and will continue to be ensuring the safety and well-being of our on-site team; and so we closely follow the national and local authority health guidelines as mandated by government authorities.

Amidst the various lockdowns and restrictions which have slowed our development at the Musasa mine, we nevertheless believe that a significant milestone was achieved with the completion of the wash plant assembly in Q4 2020.

Importantly, we significantly improved our operational and acquisitional capability with the addition of Mr. Simon Rollason as the Chief Executive Officer from the 2nd November 2020. Mr. Rollason made significant contributions to the Company's progress with both the Musasa and Huye sites in Rwanda and we look forward to his contribution as we develop and progress on our corporate strategy.

Financial Review

During the period under review the Group made a loss before taxation of £466,687 (2019: loss £846,320 as restated).

In June (and November 2020) we announced to shareholders that Eastinco had received approximately £997,000 of consideration in the form of cash and services with approximately £767,000 in cash. Additionally, we announced the suspension of cash salary payments to EME and EME Ltd management teams to preserve cash. These efforts have served the company and its viability well as Covid related restrictions and their impact have significantly impacted on EME Ltd's ability to begin full scale operations.

The Company had anticipated revenue generation would have begun in 2020. Unfortunately due to a number of important processing changes required to optimise efficiency, the Musasa mine revenues have been delayed. We have adjusted our accounting procedures relating to invested capital on site and capitalised the expenditure relating to the mine wash plant. Upon the start of operations we will be depreciating this investment on a straight line basis over expected capital lifetimes. As a result we have adjusted prior year accounts to be consistent in our approach and the accounts reflect these changes.

Post Balance Sheet Events

In May 2021 we are able to bring external processing consultants onto the mine site which resulted in several process flow changes and equipment modification recommendations. We have ordered additional slurry pumps as per the recommendations, for the recycling of material for improved recovery rates. Delivery of the equipment is pending, and in the interim, we have taken the decision to temporarily suspend processing any additional material until the new system configuration is completed.

In June 2021 we announced a new Joint Venture Agreement to explore and develop exciting new mineral opportunities in southern Rwanda. The licence covering 2,750 hectares, hosts at least two identified outcropping mineralised occurrences available for immediate geological evaluation. These 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.

COVID-19 Statement

In March 2020, Rwanda's Office of the Prime Minister, in response to the emerging global pandemic, suspended mining operations in Rwanda and imposed strict lockdown measures which included the restriction of movement across district boundaries and closing of the airport and land borders. These measures were eased in late Q3 but restrictions remain in place through mid 2021.

The safety and wellbeing of EME's employees is the highest priority for the Company at this time. The management of EME continues to actively monitor the situation and local government guidance being given as it evolves. We are working, in some cases remotely, to progress operations and discussions to ensure that we protect and advance the long-term value of our Company and the interests of our stakeholders.

Strategic shift

EME is an investment company focused on African mineral resource investment opportunities. Our objective is to create and build a critical and strategic mineral development company to meet the expected shortfall in the supply of "green" metals required to fill the global demand for renewable energy sources and decarbonisation targets. We will continue to review and evaluate new opportunities that will allow us to meet these goals and objectives.

Director Changes

Mike Staten resigned as an Executive Director; and subsequently, Simon Rollason joined the Board  of Directors as a Director and the company's CEO.

Outlook

I remain firmly optimistic for the Company's prospects going forward. We are working towards building a strong asset portfolio of metals with strong underlying market fundamentals. The business model in Rwanda is to work with our partners to modernise, mechanise and improve mine efficiencies, and to significantly upgrade the current safety standards and practices. The assets in Rwanda are growing and capable of being brought into production quickly, within a few years with modest capital expenditure, whereas typical mines can take 5-7 years to commence production. This bodes well as we gain valuable experience and a stronger working relationship with the various stakeholders in the Rwandan mining industry.

We expect that the critical and strategic metals sector will have a strong future as demand for these technology metals grows in parallel with the growth of renewable energy sources and electric vehicles

While the prevailing Covid-19 pandemic continues to present a number of challenges, most notably the Company, workers, and advisors' ability to travel to key sites, we believe that we have put policies and procedures in place to cope with many of these challenges and continue to believe that progress will be made during the year ahead.

On behalf of the Company, I would like to take this opportunity to thank my fellow Board members, and I would like to personally thank our shareholders for their continued support and patience.

Charles G Bray

Chairman

Date: 17 August 2021

This announcement contains information which, prior to its disclosure, was inside information as stipulated under Regulation 11 of the Market Abuse (Amendment) (EU Exit) Regulations 2019/310 (as amended).

The directors of Eastinco Mining and Exploration plc accept responsibility for this announcement.

Enquiries:

For further information, please visit http://www.eastinco.com/ or contact:

Eastinco Mining & Exploration Plc:

Charles Bray, Executive Chairman - charles.bray@eme-plc.com

AQSE Growth Market Corporate Adviser:

Novum Securities Limited

David Coffman / Lucy Bowden

Tel: +44 (0)207 399 9400

CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME

YEAR ENDED 31 DECEMBER 2020

All activities relate to continuing operations.

CONSOLIDATED AND COMPANY STATEMENTS OF FINANCIAL POSITION

AS AT 31 DECEMBER 2020

CONSOLIDATED AND COMPANY STATEMENTS OF CASH FLOWS

YEAR ENDED 31 DECEMBER 2020

NOTES TO PRELIMINARY RESULTS FOR THE YEAR ENDED 31 DECEMBER 2020

1.  The financial information set out below does not constitute the Group's statutory accounts for the year ended 31 December 2020 but is derived from those accounts.

The financial information has been extracted from the statutory accounts of Eastinco Mining and Exploration Plc and is presented using the same accounting policies, which have not yet been filed with the Registrar of companies, but on which the auditors, Adler Shine LLP, gave an unqualified report on 17 August 2021. The audit report included the following modification:-

"Material uncertainty relating to going concern

The financial statements have been prepared on a going concern basis. The Group has not yet earned revenues and is still in the exploration phase of its business. The operations of the Group are currently financed from funds raised from shareholders. In common with many exploration entities, the Group will need to raise further funds in order to progress the Group from the exploration phase into feasibility and eventually into production of revenues.

The Directors are reasonably confident that funds will be forthcoming as and when they are required and have received assurances to this effect as described in the Chairman's Statement. However, the Group has cash and cash equivalents of £52,000 at 31 December 2020. In January 2021, an additional £150,000 was raised of which £74,074 was in cash. The Directors are of the view this is sufficient to fund the Group's committed expenditure and maintain good title to the exploration licences over the next    12 months from the date of approval of these financial statements.,.

As part of their assessment, the Directors have prepared cash-flow forecasts on the basis that cost reduction and deferral measures are implemented over the going concern period as a result of the current worldwide COVID 19 pandemic. The Directors have agreed, if circumstances require, to defer payment of their fees until such time as adequate funding is received and if necessary, scale back discretionary exploration activity.

The Directors have a reasonable expectation that the Group has adequate resources to continue in operational existence for the foreseeable future. Thus, they continue to adopt the going concern basis of accounting in preparing the financial statements."

The Annual Report of Eastinco Mining and Exploration Plc for year ended 31 December 2020 is available upon request from the Company's registered office at Finsgate, 5-7 Cranwood Street, London EC1V 9EE.

The financial statements for the year ended 31 December 2020 were approved by the Board on 17th August 2021.

2.   Loss per Share

The calculation of the basic and diluted loss per share is based on the following data:

The potential number of shares which could be issued following the exercise of options and warrants currently outstanding amounts to 19.2 Billion (see note 17). Dilutive earnings per share equals basic earnings per share as, due to the losses incurred, there is no dilutive effect from the existing share options and warrants.

3.     Prior Year Adjustment

The Group's 2019 figures have been restated as Eastinco Ltd has changed its accounting policy and now capitalised expenses that are directly attributable to the acquisition, construction, or production of mining site, under mining assets rather than immediately expense these costs. The effect of the prior year adjustment can be seen in the Statement of Comprehensive Income and the Consolidated Statement of Financial Position.

Impact of restatement on-

Consolidated statement of comprehensive income-

following restatement Losses for the year 2019 reduced to £742,000 from £934,000.

Consolidated statement of financial position-

following restatement Net assets as at 31.12.2019 increased from £2,612,000 to £2,793,000.