Avenira : Baobab Commences First Phosphate Production

HIGHLIGHTS:

• First production underway
• Product is being stockpiled on drying pad
• Mining activity continues to plan - overburden and mineralisation
• Project is moving through the commissioning phase to steady-state operations

Avenira Limited (Avenira or Company) is pleased to advise that it has reached a transformational milestone with the first production being achieved at the 80%-owned Baobab Phosphate Project in Senegal.

The Baobab process plant is going through its commissioning procedures and the first phosphate product is being stockpiled ahead of trucking to port in the next few weeks. Maiden product shipment is expected to take place in late September or October, somewhat dependent upon the regional wet season.

The first production marks a critical step in Avenira's move into the agri-nutrient sector, coming just five months after mining activities commenced.

Stage 1 of the Baobab project is designed to produce 500,000 tonnes per annum of phosphate concentrate. The successful $US15 million development of Stage 1, which was delivered on time and on budget, paves the way for Avenira to continue to pursue its strategy of multiple stages of expansion across the Baobab Project.

Managing Director, Cliff Lawrenson commented; ''The Baobab Phosphate Project continues to progress steadily and it is fantastic to see first production at this time. The Project has moved from the construction stage to commissioning and is proceeding through production ramp-up with appropriate procedures and protocols being phased in progressively. To have achieved first production in August, after starting mining activities in March, is outstanding by any measure and is a testament to the focussed and committed teamwork from the board to the project operators.''

Figure 1: First product being discharged off of the Product Discharge Conveyor at the Wet Screening facility,

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Figure 2: First production at the Wet Screening Plant with power generating plant to the left of picture.

Figure 3: Stage 1 open pit to the right of picture showing phosphate mining operations, with overburden stripping of Stage 2 open pit in the background to the left of picture.

Figure 4: Team Photo Mr Mohamadou Sow, Mr Issa Seck, Mr Paul Richardson, Mr Tourki Nouri and Mr Cheikh Marone

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Cliff Lawrenson Managing Director