AVZ Minerals Limited (ASX: AVZ, OTC: AZZVF) (AVZ) provides an update regarding the various arbitration proceedings relating to the Manono Project.

As previously disclosed to ASX, the arbitration proceedings involve: Dathcom Mining SA (Dathcom) which is the entity that holds PR 13359 in respect of the Manono Project and the grant of an exploitation licence (PE) in respect of that licence; AVZ International Pty Ltd (AVZI) which is the wholly owned subsidiary of AVZ that holds 75% of the shares in Dathcom pursuant to the Dathcom joint venture agreement dated 27 January 2017, as amended from time to time (Dathcom JVA); La Congolaise d'Exploitation Miniere (Cominiere) which is the state-owned entity holding a minority shareholding in Dathcom; Dathomir Mining Resources SARLU (Dathomir) which is a former minority shareholder in Dathcom and Jin Cheng Mining Company (Jin Cheng) which is the subsidiary of Zijin Mining Limited (Zijin) which alleges it acquired a minority shareholding in Dathcom from Cominiere. The arbitration proceedings comprise: 1. the three ICC arbitration proceedings involving Cominiere and/or Jin Cheng in relation to Cominiere's purported sale of a 15% shareholding in Dathcom to Jin Cheng in breach of AVZI's pre-emptive right and other issues of compliance with the Dathcom JVA; 2. the two ICC arbitration proceedings involving Dathomir in relation to its attempts to dispute the sale of its 15% shareholding in Dathcom and 3. the ICSID arbitration proceedings against the Democratic Republic of the Congo (DRC) in relation to its failure to procure the expeditious grant to Dathcom of an exploitation permit in respect of the Manono Project

AVZ believes Jin Cheng, Dathomir and Cominiere are acting in concert to crystalise disputes with AVZ and disrupt and delay the development of the Manono Project with the aim of seizing control of the Manono Project. Their conduct has contributed to the delay by the DRC in granting the exploitation permit and therefore led to the commencement of the ICSID proceedings.

Cominiere & Jin Cheng Disputes The Cominiere/Jin Cheng dispute comprises three separate but related proceedings: ICC arbitration proceeding (ICC No. 26986/SP) issued by Jin Cheng seeking orders to the effect the articles of association of Dathcom reflect the fact Jin Cheng is a 15% shareholder of Dathcom; ICC arbitration proceedings (ICC No. 27720/SP) issued by AVZ International Pty LTD (AVZI) against Cominiere seeking (i) declarations that the purported sale by Cominiere to Jin Cheng of a 15% shareholding in Dathcom was ineffective and that the purported termination of the Dathcom JVA by Cominiere was invalid and (ii) damages for Cominiere's various disrupting actions made in breach of the Dathcom JVA and ICC arbitration proceedings (ICC No. 27769/SP) issued by Cominiere and Jin Cheng against AVZI seeking a declaration that the Dathcom JVA was terminated and damages for breach of the Dathcom JVA.

ICC proceedings by Jin Cheng

On or about 22 April 2022, Jin Cheng issued proceedings at the ICC seeking orders to the effect the articles of association of Dathcom reflect the fact Jin Cheng is a 15% shareholder of Dathcom. In these proceedings, AVZI has disputed that the ICC has jurisdiction on the basis Jin Cheng is not entitled to have recourse to arbitration because it is not a shareholder of Dathcom because the purported acquisition of its 15% shareholding from Cominiere was ineffective because it occurred in contravention of AVZI's pre-emptive right. The ICC Tribunal is determining the issue of jurisdiction as a preliminary question. That preliminary question was originally listed for hearing in July 2023, but Jin Cheng sought a postponement of the hearing to give it an opportunity to address allegations raised by AVZI that the sale from Cominiere to Jin Cheng was also tainted by corruption. The preliminary question is currently listed for hearing on 5 and 6 October 2023. AVZ is confident AVZI's jurisdictional challenge will be successful, which will affirm that Jin Cheng does not have the right to instigate the ICC arbitration proceedings against AVZI as it is not (and never has been) a shareholder in Dathcom.

Contact:

Tel: +61 (0) 412 124 833

Email: admin@avzminerals.com.au

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