Lipari Mining Advances Tchiuzo Project with Loan Financing and Kimberlite Plant Acquisition

Executive Summary

• Lipari Mining Ltd. entered into a non‑interest‑bearing loan agreement with Fersfield Limited for C$325,000 to acquire and transport a 5 t/h kimberlite processing plant to its Tchitengo Project in Angola.
• The plant will accelerate Phase II development of the Tchiuzo kimberlite, enabling bulk sampling aimed at recovering >5,000 carats for valuation purposes and supporting an update to the historic feasibility study.
• The one‑year loan is to be repaid from proceeds of a future equity financing; no fees were paid and the transaction does not affect control or create new insiders.

Key Details

• Loan amount: C$325,000 (non‑interest‑bearing).
• Lender: Fersfield Limited.
• Purpose: Purchase and transport of a 5 t/h kimberlite processing plant to the 75% owned Tchitengo Project (Angola).
• Project impact: Fast‑tracks Phase II development of the Tchiuzo pipe, one of 30 kimberlites on the project.
• Planned bulk sampling goal: Recover a diamond parcel >5,000 carats for valuation and to inform an updated feasibility study originally completed by SM Catoca in 2013 (US$35.6 M investment).
• Loan terms: One‑year maturity; repayment expected from proceeds of a future equity financing.
• Governance: Transaction negotiated at arm’s length, approved by disinterested directors; no agent, broker, or finder fees paid.
• Regulatory compliance: Exempt under Multilateral Instrument 61‑101 sections 5.5(a) and 5.7(1)(a); fair market value <25% of market cap.

Notable Quotes

“The acquisition of this kimberlite processing plant is expected to enable us to quickly advance the planned bulk sampling of the Tchiuzo pipe… together with results from last year’s Phase I confirmatory drilling program, this valuation is expected to position us to update the historical feasibility study.” – Ken Johnson, President & CEO

Materiality: Material – Positive (financing directly supports a major development phase and potential value‑creating bulk sampling).