W Resources : 2021 Interim Results

INTERIM REPORT FOR THE SIX MONTHS TO 30 JUNE 2021

FOR

W RESOURCES PLC

W RESOURCES PLC

CHAIRMANS STATEMENT

I am pleased to report on progress in the first six months of 2021, where our management team made solid progress at the La Parrilla tungsten and tin mine in Spain, which is now gaining traction as we build production.

This was against a backdrop of a period which was not without its challenges with the global pandemic continuing to impact communities in Spain and Portugal, in addition to unseasonal weather at La Parrilla.

Completion of the Plant Improvement Programme as well as facing and overcoming the challenges of excessively high water levels within the open-pit typifies the character and determination of the team at the mine.

Real progress has been made in all of the key areas at the mine as highlighted by the improving metrics and the increase in revenue.

With tangible production progress at the mine the team continues to introduce plant improvements which have resulted in improved efficiencies and are now increasing production towards the planned plant capacity. The mine is now well placed to take advantage of improving market conditions and extremely strong customer demand.

Alongside this, activity has continued at our Portuguese projects with progress on the full mining licence at Régua, and the application for additional licences at Tarouca and we are hopeful that the trial mining licence applied for at São Martinho in September 2018 will be granted in due course.

TUNGSTEN & TIN

La Parrilla - Spain

La Parrilla is a large-scale,low-cost,long-life tungsten and tin mine, located approximately 310km southwest of Madrid. It has Australasian Joint Ore Reserves Committee ("JORC") compliant resources totalling 49 million tonnes ("Mt") at a grade of 0.1% of tungsten trioxide ("WO3") and JORC compliant reserves of 29.8 Mt (as shown in Appendix 1 of this Interim Report for the six months to 30 June 2021).

Production at La Parrilla started to improve in H2 2020 and progress has continued into H1 2021 as a consequence of the Plant Improvement Programme and further refinement of the production process.

In H1 2021, plant recoveries for tungsten concentrate increased to 40% and to 35% for tin concentrate with plant utilisation increasing to 87%.

With the challenges of unseasonal rainfall to contend with, the main priority in Q2 was to resolve the high water levels at the mine in order for the team to safely access high-grade ore. Following completion of the first 500,000m3 water dam, the dewatering of the open-pit was completed on 24 June 2021 and the Company was then able to continue mining and processing the higher-grade ore.

As previously outlined, the key objective for the La Parrilla mine remains to reach the target to mine 2mtpa ("million tonnes per annum") of run of mine ore ("ROM").

Page 2

W RESOURCES PLC

CHAIRMANS STATEMENT

• Q1 and Q2 2021 production was based on working 5 day week
• Q1 2021 production consisted of 10 working weeks, Q2 2021 production consisted of 11 working weeks

Grant Received

In March 2018, the Junta de Extremadura in Spain awarded a Grant of €5.3m to W's 100% owned subsidiary, Iberian Resources Spain SL. The conditions set in order to be able to receive the Grant, were a minimum investment in plant and equipment of €16.6m and the creation of at least 20 full time positions. In May 2021, W received €5.2m from the Junta de Extremadura Government in full settlement of the original Grant.

Tungsten and Tin Sales

In H1 2021, the Company completed nine shipments of tungsten concentrate, totalling 179.2 tonnes ("t") and two tin concentrate shipments totalling 39.3t. This interim report corrects the previous omission of one tungsten shipment reported for 2Q 2021 in the RNS issued on 15 July 2021.

Importantly, the quality of tungsten and tin concentrate produced consistently meets or exceeds customer offtake requirements and we have seen consistent increases in concentrate quality and, in producing up to 65% WO3 from the plant, we have shown that we are comfortably able to exceed our benchmark grades of 60%.

PORTUGUESE PROJECTS

Régua Tungsten Mine Project

This high-grade,development-ready tungsten project with low capital cost and an updated JORC compliant mineral resource of 4.47 Mt at a grade of 0.27% WO3, including an indicated resource of 3.74 Mt at a grade of 0.28% WO3, which was completed by Golder Associates Pty Ltd ("Golder") in January 2020.

Mining operations at Régua commenced early March 2020 with the commencement of mining in the first of two adits with skarn ore zones intersected in the initial development. However, following an extension in Portugal of COVID-19 related restrictions, mining activity suspended.

Plant design and procurement activities were near completion in advance of construction activities which had to be rescheduled because of the impact of COVID-19.

Page 3

W RESOURCES PLC

CHAIRMANS STATEMENT

After this enforced period of inactivity due to the pandemic and the passing of new mining legislation in Portugal, the Company is pleased to state that the General Directorate of Energy and Geology ("DGEG") has confirmed that it has presented the documents for the Régua Full Mining Licence (tungsten project) for the approval of the Director General and has indicated that the Company should expect this license to be awarded shortly. Once the full mining licence has been awarded, the Company plans to recommence its mining activities at Régua. The DGEG has confirmed that they have prepared the draft contract for the licence, and this is currently being reviewed by the Director General. The Company, expects to receive the final approval for this licence during Q4 2021. In parallel, the environmental study is being completed and will be submitted during Q4 2021. Its approval will allow the release of the underground mining works authorisation, following the granting of the full mining licence.

The Company looks forward to being able to announce progress with Régua which has an ore grade of 0.28% WO3 , almost three times that of the ore grade at La Parrilla. Production at Régua will increase W's total concentrate production, reduce average costs per tonne and increase sales.

Tarouca Exploration

While the development focus has been on Régua we have also applied for a new exploration licence at Tarouca. W expects to be able to tie in operations at Tarouca to the Régua mining and processing operations once the updated licence is granted. The draft exploration licence is being prepared by the DGEG following new publication of new Mining Law Regulations.

CAA Portalegre - Gold

São Martinho Trial Mining Licence Application

São Martinho currently has a JORC 2012 gold resource of over 110,000oz. Results from the drilling campaigns in 2017 and 2018 provided a solid base to drive extension drilling with the potential for a materially larger resource.

Following the successful drilling programme at São Martinho, the team submitted an application for a trial mine and gold production licence in September 2018. Although the COVID-19 crisis and associated state of emergency in Portugal has further delayed the final approval process, the Company expects the trial mine licence to be granted in due course. The trial mine licence, once granted, will allow W to pursue a drilling programme to expand the resource and resolve the geological interpretations of a flat lying structure (Golder) and a deeply dipping structure (SRK) which have partially arisen due to the combination of structural complexity and multistage mineralising events.

Importantly, a trial mine is a key level of licence tenure and will provide the authority to mine shallow ore and produce gold on a pilot basis. We are actively exploring opportunities to bring in Joint Venture parties and monetise the gold discovery. New expenditure on this project is pending grant of the trial mining licence.

CAA Exploration Licence Application

While the application process for the trial mining licence proceeds, the Company has also applied for a new exploration licence in the Assumar area. This expansive area (267 km2), covering the ground adjacent to the trial mining licence area, has been applied for to include potential extensions of the known mineralised system and new potential areas.

Page 4