Bluejay Mining : 230630 Bluejay Mining Plc interim Accounts - v9 - CLEAN

Bluejay Mining plc / EPIC: JAY / Market: AIM / Sector: Mining

29 September 2023

Bluejay Mining plc ('Bluejay' or the 'Company')

Interim Results

Bluejay Mining plc, the AIM and FSE listed, and OTCQB traded, exploration company with projects in Greenland and Finland, is pleased to announce its Interim Results for the six months ended 30 June 2023 (the 'Period').

Highlights in H1 2023

• Executive Chairman, Robert Edwards, released a strategic review of Bluejay and its current portfolio of assets and new development strategy
• Positive results from the 2022 airborne geophysical survey at Kangerluarsuk refined existing suite of drill-ready targets
• Drill programme at Enonkoski consisting of follow-up drilling at the Laukunlampi target
• Drilling commenced at Hammaslahti with assays underway
• £1.3 million (US$1.65 million) raised through the issuance of shares to new and existing shareholders primarily for the advancement of Hammaslahti

Post Period

• Finland strategy update where Bluejay retains 100% of Enonkoski Project
• Director equity subscription of £30,000
• Metals One commences trading on AIM
• Placing to raise £600,000
• Dundas project no longer deemed core to Bluejay portfolio
• Supportive analytical results from the 2022 field-season at Disko

Chairman's Statement

The half year under review saw the Company assess its strategy, and upon further reflection of the relative merits of the assets within the portfolio and the results achieved to date, Bluejay aligned its focus on those assets that it felt offered the best risk/reward profile, of particular importance in a market environment that is not cyclically supportive for mineral explorers and developers. Our key objective is to enhance shareholder value by developing commercial critical mineral discovery opportunities in Greenland and Finland. I am both encouraged and assured in the knowledge that Bluejay is

fortunate to have more than one opportunity within its current asset base to achieve this. Realising value from such world class prospects like the Disko-NuussuaqNickel-Copper-Cobalt-Platinum Group Metals Joint Venture ('JV') Project ('Disko') with KoBold Metals and the Kangerluarsuk Zinc-Lead-Silver±Cu-Ge Project ('Kangerluarsuk') in Greenland, and the "re-discovery" of previously exploited licences like the Hammaslahti Copper-Zinc-Silver-Gold Project ('Hammaslahti'), the Enonkoski Nickel- Copper-Cobalt Project ('Enonkoski') and the Outokumpu Copper-Nickel-Cobalt-Zinc-Gold-Silver Project in Finland are all opportunities which we aim to demonstrate. We are, by definition of our broad base and critical metals exposure, now very much part of the energy transition value chain. This in itself can and will illicit very capable and credible partners given the global focus on security of supply of such elements. Whilst we retain exposure to illmenite (titanium feedstock) through our ownership of the Dundas Ilmenite (Titanium) Project ('Dundas'), this can now be considered "non-core". We can only express regret that this clarity was not achieved earlier in the life of the project, but studies needed to be concluded in order to determine whether the project would work economically or not.

During our strategic review published in February 2023, both Kangerluarsuk and Hammaslahti (both 100% held by Bluejay) strongly met the technical criteria to be able to drive shareholder value within a relatively short time frame. We can report that we were able to progress one of these projects in the period under review.

Following the publication of positive results from the previous year's airborne survey and the release of a detailed technical presentation for Bluejay's exciting Kangerluarsuk Project, where we believe that we are dealing with a large-scale mineralised system, the prospect of conducting a maiden drill campaign was compelling. Historical chip sample results of 41.1% zinc and 45.5% lead and grab samples of 9.3% lead, 1.2% copper and 596 grams per tonne ('g/t') silver confirm that we have a very high potential district under our control, hosting what we believe to be a major palaeoproterozoic sedimentary basin immediately to the house and hosted within this basin is the former Black Angel Zinc-Lead-Silver Mine. This mine produced 11 million tonnes of ore grading at 12.6% zinc, 4.1% lead and 29 g/t silver for its former operators, Cominco (now Teck Resources) and Boliden.

In addition, the Geological Survey of Denmark and Greenland ('GEUS') has acknowledged Kangerluarsuk as containing the strongest cluster of stream sediment zinc anomalies in Greenland, with samples up to 2,200 parts per million zinc.

Sadly, unseasonal weather constraints prevented the commencement of the field-season as we would have wished. Nonetheless, and as a direct demonstration of our portfolio's flexibility, the Company was subsequently able to pivot greater operational focus onto Hammaslahti, and our other brownfield assets in Finland.

Previous work conducted by the Company several years ago delineated the high potential E-lode which is located parallel to historical mine workings. Historically, Hammaslahti produced a total of seven million tonnes of high-gradecopper-zinc-silver-gold ore between 1971 and 1986, with all ore lodes remaining open at depth. The discovery and expansion of E-lode makes for a compelling exploration and development platform. At the end of May, the Company commenced drilling at Hammaslahti. A 2,000 metre ('m') drill programme conducted on the E-Lode confirmed the continuity of the high-gradecopper-zinc-silver-gold ore lode. Further indication of the high-grade mineralisation present at Hammaslahti is the presence of polymetallic mineralisation which is interpreted to be a partially re- mobilised volcanogenic massive sulphide ('VMS'). The historical high-grade production, coupled with the presence of polymetallic mineralisation, indicates the potential of the project to enhance shareholder value, in accordance with the Company's new strategy. Elsewhere in Finland at Enonkoski, a total of 951m was drilled out of the planned 1,000-1,500m campaign, and was followed- up by another drilling programme consisting of a single drill depth of 400m targeting the Laukunlampi intrusion all funded by our then partner, Rio Tinto. However, post period end, the JV agreement with Rio-Tinto at Enonkoski ended, with Bluejay retaining 100% of the project. The JV enabled Bluejay to significantly advance its knowledge of the project through US$4.65 million in exploration expenditure and it has opened up the potential of targets along the Enonkoski belt. Specifically, the Company, when appropriate, will focus on assessing the wealth of the as-yet-untested targets at Makkola.

In addition, as part of our strategic review, Outokumpu was deemed a potentially short term value producing prospect. Bluejay recently increased its licence areas and is now the largest landholder on the highly prospective Outokumpu belt, that hosts three past producing high-grade, polymetallic mines. Low-cost ground gravity and magnetic surveys are the next stage of work to be completed, after which Bluejay will develop an optimal strategy for development. Low-cost ground gravity and magnetic

surveys to progress the high-priority Haapovaara target are the next stage of work to be completed, subject to funding, after which Bluejay will develop an optimal strategy for the development of the project. Haapovaara is located only a few kilometres along strike, to the North East, of Boilden's Kylylahti Mine. The target is coincident with two gravity highs in existing regional gravity data that have never been drill tested.

In the post period the conditional divestment of the Company's Black-Shales assets to Metals One was concluded with the successful IPO of Metals One plc, in which Bluejay is now a significant equity investor holding c. 29% of the listed equity.

Moving forward in 2023 and into 2024, Bluejay will continue to use its new strategy to explore and develop its projects with the aim to increase their value to, in turn, maximise value for its shareholders.

Financial

In February, Bluejay announced an equity subscription where up to US$6 million would be received from Towards Net Zero ('TNZ'), consisting of three tranches of US$2 million. However, shortly following the receipt of the first tranche, the Company took the decision with the pragmatic agreement from TNZ, to terminate the arrangement. The decision to return US$2 million of capital in April 2023 was not taken lightly but was driven by the view that the original benefits of the structure were outweighed by the risks created by entering into it in the first place, and a simpler funding route was pursued thereafter.

In June 2023, following the unforeseen weather conditions that prevented workable access to Kangerluarusuk, the Company successfully raised £1.3 million in new equity from new, and importantly, existing shareholders, to instead further the development of Hammaslahti. These funds immediately went towards finalising a Mineral Resources Estimate ('MRE') on Hammaslahti's E-Lode as well as general corporate purposes. At this time, executive management agreed to take significant cuts to salaries and non-executive directors have taken no fees whatsoever in the form of cash or shares. This was followed in the post period with a further capital increase raising £600,000 to ensure that the Company is best positioned to ensure it can deliver on its strategy for the second half of 2023, setting us up for what we believe could be a transformational 2024. Bluejay has received credit notes from some suppliers that were paid during the period under review but for which Bluejay could not take delivery of goods or services due to delayed exploration programmes. The Company continues to scrutinise its cost base and have cut costs wherever possible without damaging the core technical competencies of the business.

With respect to the recent management and Board decision to curtail activities at Dundas, the obligatory impairment test will be carried out on Dundas at the appropriate time to determine the extent, if any, of any impairment that is due. In the interim and in line with our public disclosure, the Company will seek commercial alternatives for the project and will be better placed to make a judgement on book value once this initiative has been progressed.

Outlook

The first half of the year marked a significant change in strategy for the Company. One that I have no doubt in my mind will take Bluejay on an upward trajectory. We still find ourselves at the early stages of the shift, but we are already realising the value it is creating. Value that will continue to grow as we continue to implement our new ideas.

Although the strategy has taken a new turn, the metals in which our portfolio of projects are associated with continue to be essential to the global energy transition and the jurisdictions in which they are found continue to be world class. With all of this considered, Bluejay is still extremely well positioned to deliver on its strategy.

Prior to our JV with Rio Tinto, Enonkoski was one of the least visible projects within Bluejay's portfolio. The value in which that partnership has provided means the Company now has a project that is significantly further up the value curve, and one where it can utilise its own inhouse expertise to further develop.

These in house expertise are currently being deployed at Hammaslahti, where we believe the development of a MRE is the first milestone of many, as we continue to seek short term value creating

opportunities. Kangerluarsuk is another short term value creating opportunity for the Company and remains a high priority with planning activities aiming for exploration at the project in 2024 underway.

Our ability to pivot and focus on other promising projects when events arise that are out of our control speaks volumes of the strength of Bluejay's project portfolio.

The updated results at Disko increase our confidence that the Company is in possession of a potential world class asset and we will know more in 2024.

Bluejay is progressing positive discussions with four strategic entities with complimentary attributes which we believe have the ability to strengthen both the financial and technical capabilities of the business as we explore and develop our portfolio of projects. This is aimed to both financially de-risk the business as well as create a unique and powerful combination of skills. Despite the positive discussions, and as previously mentioned, there can be no certainty that any binding agreements will be entered into, although we hope to conclude at least one of these before the end of the year.

As always, I would like to thank those who have supported the Company both internally and externally, as we continue to steer Bluejay in a direction that should see significant progression across the entire business. The rest of the year will see us deliver further on our strategic goals, as we ensure the Company is well positioned going into 2024. I look forward to updating shareholders in that respect.

Robert Edwards

Non-Executive Chairman

Market Abuse Regulation (MAR) Disclosure

The information contained within this announcement is deemed by the Company to constitute inside information as stipulated under the Market Abuse Regulations (EU) No. 596/2014 ('MAR') which has been incorporated into UK law by the European Union (Withdrawal) Act 2018.

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