MRG Metals Limited announced the results of the Scoping Study and Preliminary Economic Assessment by IHC Mining for the Corridor Central (11142C) and Corridor South (11137C) Projects, specifically the Koko Massava, Nhacutse and Poiombo deposits. The Scoping Study and Preliminary Economic Assessment referred to in this announcement has been undertaken to determine the potential viability of an open pit mine and ilmenite processing plant constructed onsite at the Corridor Sands project in Mozambique and to reach a decision to proceed with more definitive studies. The Scoping Study and Preliminary Economic Assessment has been prepared to an accuracy level of +30-35%.

The results should not be considered a profit forecast or production forecast. The Scoping Study and Preliminary Economic Assessment is a preliminary technical and economic study of the potential viability of the Corridor Sands project. In accordance with the ASX Listing Rules, the Company advises it is based on low-level technical and economic assessments that are not sufficient to support the estimation of Ore Reserves.

Further evaluation work including infill drilling and appropriate studies are required before MRG Metals Ltd. (MRG) will be able to estimate any Ore Reserves or to provide any assurance of an economic development case. 82% of the scheduled throughput over the first 11 years of production, at Nhacutse and Poiombo deposits, is in the Indicated Mineral Resource category, with 18% in the Inferred Mineral Resource category. 50% of the scheduled throughput over years 12 to 25 of production, at Koko Massava deposit, is in the Indicated Mineral Resource category, with 50% in the Inferred Mineral Resource category.

The Company has concluded that it has reasonable grounds for disclosing a production target which includes a modest amount of Inferred material. However, MRG, in consultation with IHC Mining, intends to conduct infill drilling to increase the confidence of the Inferred Mineral Resources to Indicated Mineral Resources and to increase the confidence of the Indicated Mineral Resources to Measured Mineral Resources. There is a low level of geological confidence associated with Inferred Mineral Resources, and there is no certainty that further exploration work will result in the determination of Indicated Mineral Resources or that the production target itself will be realised.

The Scoping Study and Preliminary Economic Assessment is based on the material assumptions outlined elsewhere in the announcement. These include assumptions about the availability of funding. While MRG considers all the material assumptions to be based on reasonable grounds, there is no certainty that they will prove to be correct or that the range of outcomes indicated by the Scoping Study and Preliminary Economic Assessment will be achieved.

To achieve the range of outcomes indicated in the Scoping Study Preliminary Economic Assessment, initial funding in the order of USD 239 million will likely be required. Investors should note that such funding may only be available on terms that dilute or otherwise affect the value of MRG's existing shares. Debt funding via offtake pre-funding will be investigated.

It is also possible that the Company could pursue other value realization strategies such as a sole, partial sale or joint venture of the project. If it does, this could materially reduce the Company's proportionate ownership of the project. The Company has concluded it has a reasonable basis for providing the forward-looking statements included in this announcement and believes that it has a reasonable basis to expect it will be able to fund the development of the Project.

Given the uncertainties involved, Investors should not make any investment decisions based solely on the results of the Scoping Study Preliminary Economic Assessment. This Scoping Study and Preliminary Economic Assessment Report (Report) has been prepared for MRG Metals Limited (MRG) by IHC Mining (IHC), based on assumptions as identified throughout the text and upon information and data supplied by others. IHC has, in preparing the Report exercised due care consistent with the intended level of accuracy, using its professional judgment and reasonable care.

However, no warranty should be implied as to the accuracy of estimates or other values and all estimates and other values are only valid as at the date of the Report and will vary thereafter. Parts of the Report have been prepared or arranged by third party contributors, as detailed in the document. While the contents of those parts have been generally reviewed by IHC for inclusion into the Report, they have not been fully audited or sought to be verified by IHC.

IHC is not in a position to, and does not, verify the accuracy or completeness of, or adopt as its own, the information and data supplied, either from the request for information (RFI) process or free issued by others and disclaims all liability, damages or loss with respect to such information and data. In respect of all parts of the Report, whether or not prepared by IHC, no express or implied representation or warranty is made by IHC or by any person acting for and/or on behalf of IHC to any third party that the contents of the Report are verified, accurate, suitably qualified, reasonable or free from errors, omissions or other defects of any kind or nature. Third parties who rely upon the Report do so at their own risk and IHC disclaims all liability, damages or loss with respect to such reliance.

IHC disclaims any liability, damage and loss to MRG and to third parties in respect of the publication, reference, quoting or distribution of the Report or any of its contents to and reliance thereon by any third party.