Metals Exploration Completes Land Access Agreement at Nicaragua Gold Project

• Completion of negotiations with artisanal mining cooperative in April 2025, with land clearance achieved by July 2025
• Main open-pit area at La India project cleared of artisanal miners following cooperative's compliance with agreement terms
• Company developing coexistence framework with government to accommodate both artisanal and large-scale mining operations
• Environmental rehabilitation programme to remove uncontrolled processing facilities and restore affected areas
• Negotiations ongoing for remaining occupied areas within the project tenement

Metals Exploration PLC (AIM: MTL) is a gold production, exploration, and development company with assets in the Philippines and Nicaragua. The company acquired the La India project in Nicaragua in January 2025, adding this asset to its existing portfolio of gold projects across these jurisdictions.

The company's operational approach includes engaging with local communities and government stakeholders during project development phases. Metals Exploration focuses on advancing gold projects through established mining practices whilst maintaining regulatory compliance and stakeholder relationships in its operating regions.

Completion of Negotiations and Land Clearance

The negotiations with the local artisanal mining cooperative concluded in April 2025, following the project's acquisition in January 2025. These discussions addressed compensation arrangements for land acquisition and occupation rights, with the cooperative owning a small portion of land within the project's mining area. Some artisanal miners had been operating outside this area by encroaching into the proposed La India open-pit profile.

The cooperative complied with the agreed terms by vacating the relevant land parcels by July 2025. All mining areas within the proposed La India main open-pit are now cleared of artisanal miners. The agreement structure provided compensation to the cooperative whilst enabling Metals Exploration to access the main mining areas.

The land clearance removes potential operational complications related to unresolved access issues. With the main pit area now accessible, Metals Exploration can proceed with development planning and environmental assessments required for project advancement. This development allows the company to progress with its planned mining operations in this area.

Framework for Coexistence with Artisanal Miners

Metals Exploration is working with the Nicaraguan government to develop a solution that accommodates both small-scale and large-scale mining operations within the same tenement area. The framework involves allocating areas that are uneconomic for large-scale development to artisanal mining operations. The company plans to construct small-scale facilities for artisanal miners to operate within designated areas.

The approach aims to allow artisanal mining activities to continue alongside commercial extraction. Under this programme, current uncontrolled environmental emissions from small-scale gold processing plants would be dismantled and removed, enabling area rehabilitation. The programme is intended to minimise long-term environmental damage risks.

CEO Darren Bowden stated:

"Our continued collaboration with the Nicaraguan government and local communities is aimed at establishing a sustainable framework where both artisanal and large-scale mining can operate side-by-side, delivering long-term benefits to all stakeholders while upholding the highest environmental and social standards."

Enabling Project Development Progress

The environmental rehabilitation component addresses current uncontrolled environmental emissions from small-scale processing plants operating in the area. The planned dismantling and removal of these facilities will enable area rehabilitation and reduce long-term environmental damage risks. The work will be conducted according to international environmental standards and government mandates.

The rehabilitation programme aims to create cleaner conditions for both artisanal and commercial operations whilst ensuring regulatory compliance. This work is intended to support the company's operational requirements and address environmental concerns in the project area. The programme forms part of the broader coexistence framework being developed with government support.

With the main pit area cleared and environmental rehabilitation planned, Metals Exploration has established access to key mining areas. Ongoing negotiations continue for remaining occupied areas within the tenement. The company can now proceed with development planning for the cleared mining areas whilst finalising arrangements for other parts of the project.

Looking Forward

The completion of negotiations with the artisanal mining cooperative provides access to the main open-pit area for the La India project. With environmental rehabilitation programmes planned and the main pit area cleared, Metals Exploration can advance development planning for these areas. Negotiations for remaining occupied areas within the tenement continue.

Upcoming activities include finalising agreements for all occupied areas, implementing the environmental rehabilitation programme, and progressing development planning for the cleared mining areas. The company's engagement with the Nicaraguan government and local communities continues as part of the coexistence framework development.

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