Investment in Australian Cobalt Licences

MetalNRG plc

("MetalNRG" or the "Company")

29 June 2017

Investment in Australian Cobalt Licences

MetalNRG plc (NEX:MNRG), the natural resource investing company quoted on the NEX Exchange Growth Market in London, is pleased to announce an agreement to acquire cobalt licences in Western Australia (hereinafter “the “Palomino Cobalt Project” or the “Project”).

Highlights:

• MetalNRG takes first investing step with the creation of the Palomino Cobalt Project in Western Australia;

• The Project consists of licence applications submitted and pending to be submitted applications in respect of ground prospective for cobalt based on historic exploration;

• Total acquisition cost of approximately £55,000 with 83% of acquisition cost payable in MetalNRG new ordinary shares priced at 1.5p per share;

• MetalNRG forms Cobalt Division to act as a repository for this transaction and anticipated additional cobalt interests.

  Paul Johnson Chief Executive Officer of MetalNRG, commented: “I am very pleased to announce this first important step by MetalNRG to invest in Australian cobalt exploration.

  “Cobalt is a highly significant commodity which has seen its market price increase from circa US$24,000/t a year ago to approaching US$59,000/t of late. The forward supply/demand characteristics and cobalt’s importance in the emerging battery technology sector mean that despite the dramatic increase in price over the last year there is potential for the cobalt price to be maintained, or better still increase further.

  In recognition of our excitement and interest in this growing market, we are launching a Cobalt Division. The Cobalt Division will focus on the identification of cobalt deposits in safe jurisdictions around the world, including Australia, the United States and Canada, and we anticipate further cobalt transactions in the near future.

  Naturally shareholders and investors should note that until further transactions are crystallised and announced to the market via regulatory release, there can be no certainty that additional commercial deals will be completed.

  With regard to this specific transaction, we have chosen to limit the amount of specific information released at this time to enable the Company and vendor working together to submit additional cobalt licence applications in the vicinity. Further detailed transactional information will follow in due course when that process has been completed.

  I would like to personally thank our shareholders who have been constantly supportive as we have undertaken an immense amount of background work.  We trust that this work will be evidenced clearly in the coming weeks and months as progress announcements are released.”

  Transactional information:

  The Palomino Cobalt Project is an exploration block of circa 40 square kilometres in Western Australia covered by exploration licence applications that we understand have been submitted on a first-in-line basis.  The ground is prospective for cobalt and with significant evidence of cobalt mineralisation from surface based exploration work and notably stream sediment sampling.

  In addition the Company, with the vendors, will be seeking to secure additional ground in the area of a similar square kilometre footprint with immediate effect to double the area covered by the existing applications. 

  To secure the right to acquire 100% of the above licence applications, when they become granted licences and subject to the normal regulatory approvals needed for licence transfers, MetalNRG has agreed to cover the direct costs of the vendor up to circa A$15,000 and to issue one million MetalNRG shares to the vendors at a deemed price of 1.5p per new ordinary MetalNRG share.

  Upon granting of the applications MetalNRG will issue a further two million shares to the vendors at a deemed price of 1.5p per new MetalNRG ordinary share.

  Further detailed project and transactional information will be provided when the additional licence applications over adjacent ground has been secured.

  The Directors of the Company accept responsibility for the contents of this announcement.

  Contact details:

MetalNRG plc    Paul Johnson (Chief Executive Officer)	[phone]
NEX Exchange Corporate Adviser PETERHOUSE CORPORATE FINANCE LIMITED Guy Miller Mark Anwyl Corporate Broker [phone] SI CAPITAL Nick Emerson Andy Thacker	[phone]

Notes for Editors:

MetalNRG is quoted on the NEX Exchange Growth Market in London with the stock code MNRG and is a natural resource investing company.

NEX Exchange Growth Market:

Investors wishing to consider trading in NEX Exchange Growth Market quoted shares can access this market from numerous brokers, a full list of which can be accessed through the following link:

http://www.nexexchange.com/for-investors/find-a-broker/

The list accessed through the link above includes certain brokers offering online trading of NEX Exchange quoted shares.

The Investing Policy of the Company is as follows:

The Company’s proposed new Investing Policy is to invest in and/or acquire companies and/or projects within the natural resources and/or energy sector with potential for growth and value creation, over the medium to long term. The Company will also consider opportunities in other related sectors if the Board considers there is an opportunity to generate an attractive return for Shareholders. This will include natural resource technologies and fintech opportunities offering leverage to resource identification, processing, recording, storage and trading businesses.

Where appropriate, the Board may seek to invest in businesses where it may influence the business at a board level, add their expertise to the management of the business, and utilise their significant industry relationships.

The Company’s interests in a proposed investment and/or acquisition may range from a minority position to full ownership and may comprise one investment or multiple investments. The proposed investments may be in either quoted or unquoted companies; be made by direct acquisitions or farm-ins; and may be in companies, partnerships, earn-in joint ventures, debt or other loan structures, joint ventures or direct or indirect interests in assets or projects.

The Board may focus on investments where intrinsic value can be achieved from the restructuring of investments or merger of complementary businesses. The Board expects that investments will typically be held for the medium to long term, although short term disposal of assets cannot be ruled out if there is an opportunity to generate an attractive return for Shareholders. The Board will place no minimum or maximum limit on the length of time that any investment may be held. The Company may be both an active and a passive investor depending on the nature of the individual opportunity.

Where the Company builds a portfolio of related assets it is possible that there may be cross-holdings between such assets. The Company does not currently intend to fund any investments with debt or other borrowings, but may do so if appropriate. Investments in early stage assets are expected to be mainly in the form of equity, with debt potentially being raised later to fund the development of such assets. Investments in later stage assets are more likely to include an element of debt to equity gearing. The Board may also offer new Ordinary Shares by way of consideration as well as cash, thereby helping to preserve the Company’s cash for working capital and as a reserve against unforeseen contingencies including, for example, delays in collecting accounts receivable, unexpected changes in the economic environment and operational problems.

The Board will conduct initial due diligence appraisals of potential business or projects and, where they believe further investigation is warranted, intend to appoint appropriately qualified persons to assist. The Proposed Board believes its expertise will enable it to determine quickly which opportunities could be viable and so progress quickly to formal due diligence. The Company will not have a separate investment manager. The Company proposes to carry out a comprehensive and thorough project review process in which all material aspects of a potential project or business will be subject to rigorous due diligence, as appropriate.