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SUCCESSFUL GREEN PIG IRON PRODUCTION

Highlights:

Magnum Mining and Exploration Limited has completed its first biochar pig iron test using 100% biochar. The SGS test result shows that our green pig iron is a premium feed for Electric Arc Furnace (EAF) steel making.

As announced on 28 September 2021, Magnum Mining and Exploration Limited ("Magnum" or the "Company") (ASX:MGU) has undertaken an extensive test work program over the past few months.

The Company is pleased to confirm:

that it is on track to become a leading producer of green pig iron products for sales to US and export markets at premium prices.

extensive test work was completed by Beijing Shougang International Engineering Technology Company (BSIET) (see here - bisect.com) at its pilot plant in China and included:

production of a dry iron ore concentrate at 63%Fe (SGS tested);

reduction in the rotary kiln using 100% Biochar to produce Direct Reduction Iron (DRI) and

melting the DRI in an Electric Furnace to produce the end product, green pig iron (SGS tested). SGS China tested and has confirmed the quality of the iron ore concentrate and green pig iron produced.

that Magnum green pig iron with low silica & high carbon offers premium value in use for EAF steel makers.

the process of dry concentration with minimal water consumption compared to a 'wet' concentrate and the utilisation of Biomass/Biochar in a 'carbon neutral' process are also significant contributions to a healthier environment when compared to other steel making processes.

this success is an important step in the Company's strategy of moving up the value chain to green pig iron with a significant Carbon Credit premium.

Magnum with its wholly owned low-cost iron ore resource is now well positioned to take advantage of the rapidly increasing demand in high value green pig iron. There is a US$400 per ton value difference between iron ore & pig iron, with iron ore prices currently around US$100/t delivered China and pig iron delivered into the US is around US$550/t.

the US steel industry is rapidly expanding with over 80% using EAFs. Relevantly, the Company advises that a global shortage of quality steel scrap and pig iron supply is forecasted and considers that Magnum is well placed to supply quality pig iron both domestically and internationally.

Magnum Mining & Exploration Ltd

ABN: 70 003 170 376

Level 11, 52 Phillip Street, Sydney 2000 Tel: +61 02 8316 3989

Email: info@mmel.com.au Web: www.mmel.com.au

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TEST WORK RESULTS

1. Dry Concentrate Results:

The iron ore sample from the Buena Vista Project was crushed and sized before undergoing a dry magnetic separation process. As announced on 28 September 2021, the Company has decided to use a 'dry concentrate' process to produce the iron ore that is required as feed to the rotary kiln at the Buena Vista Project. The planned dry magnetic beneficiation plant is a cost-effective and efficient setup that provides added savings in water consumption in what is an increasingly arid region. This will further strengthen the Company's vision of being a green pig iron producer.

SGS has confirmed the test work was successful with a concentrate product grade of 63%Fe.

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Figure 1 SGS Iron Ore Concentrate Quality Report - Page 1

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Figure 1 SGS Iron Ore Concentrate Quality Report - Page 2

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BSIET have proposed a 'plug & play' off the shelf Dry Magnetic Beneficiation Plant with an annual output of 1 million tonnes of 63%Fe concentrate using a feed grade of 15-20%Fe ROM. This feed grade optimizes the resource tonnes available for mining as well as allowing a lower strip ratio and hence reduces the overall mining costs.

The outcome from this work will feed into the detailed engineering design and estimates of the capital and operating costs of the dry concentrator.

Figure 2 Proposed Dry Magnetic Beneficiation Plant

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Magnum Mining and Exploration Limited published this content on 01 December 2021 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 01 December 2021 02:00:08 UTC.