Namibia Critical Metals Inc:. Lofdal heavy rare earth deposit, earthworks have started on the starter pit for the pilot phase

HalifaxNamibia Critical Metals Inc. (‘Namibia Critical Metals’ or the “Company” or “NMI”) (TSXV: NMI) is pleased to provide an update on the development of the Lofdal Heavy Rare Earth project since the granting of a Mining permit in July.

The Company has started earthworks to develop a starter pit at a depth of approximately 15 meters at the Zone 4 deposit. Mining activities are subcontracted to Gecko Mining (Pty) Ltd. and blasting to bulk mining explosives A total of 32,100 tonnes of mineralized material will be extracted, of which 8,300 tonnes will be representative of fresh (non-oxidized) mineralized material 10 to 15 meters deep and will be the subject of excavation work. ‘pilot scale test for further optimization of treatment.

The Lofdal heavy rare earth deposit is one of the two main xenotime projects under development around the world. The deposit has the potential for significant production of dysprosium and terbium, the two most valuable rare earth elements used in high power magnets and other high tech applications. The Lofdal project is developed in a joint venture with Japan National Oil, Gas and Metals Corporation (“JOGMEC”) aiming at a long-term sustainable supply of heavy rare earths for Japan.

The Company is also pleased to announce that JOGMEC has increased funding for the $ 437,000 bringing the expenditure of Terms 1 and 2 to date to $ 6,600,000. Darrin campbell, President of Critical metals from Namibia said “We are extremely pleased with the rapid progress of the project after the mining permit was granted in July. Going to the pilot phase is another impressive step taken in such a short time with our JOGMEC partners. We believe that Lofdal will eventually be recognized as one of the main heavy rare earth deposits of dysprosium and terbium in the western world.

Start-up pit and pilot scale test work

The Company hired a highly experienced local mining contractor Gecko Mining (Pty) Ltd. develop the starter pit over an area of ​​120 meters x 25 meters in the central part of the zone 4 deposit. The hard rock blasting is subcontracted to the specialized international group Bulk Mining Explosives (BME). The initial depth of 15 meters is expected to be reached by the second week of October 2021.

In total, approximately 32,100 tonnes of mineralized material hosted by eight mining blocks of the current mine design will be extracted, including two blocks with approximately 8,300 tonnes of fresh mineralized material. This fresh mineralized material is considered representative of the typical run-off expected below the oxidation level of the entire Lofdal deposit. The starter pit requires the extraction of approximately 10,000 tonnes of waste rock from the suspended wall.

Gecko Mining (Pty) Ltd. is also contracted to crush and sift fresh mineralized material. Sub-samples will be shipped for pilot scale testing, including XRF sorting at Rados in South Africa, XRT and multi-sensor sorting at Tomra Hamburg, and for magnetic separation and flotation testing at the lab scale at SGS Canada. Planned test work is designed based on the results of current lab-scale process test programs by the above companies to further optimize key process steps while working with industrial-scale processes .

On Japan National Oil, Gas and Metals Corporation (JOGMEC)

JOGMEC is an administrative agency independent of the Japanese government which seeks, among other things, to ensure stable supplies of resources for Japan. JOGMEC has a solid reputation as a long-term strategic partner in mining projects globally. The areas of responsibilities mandated within JOGMEC relate to petroleum and natural gas, metals, coal and geothermal energy. JOGMEC facilitates opportunities with Japanese private companies to secure natural resource supplies for the benefit of the country’s economic development. Rare earths are of crucial importance to Japanese industrial interests and JOGMEC has extensive experience in all aspects of the sector. JOGMEC provided Lynas with US $ 250,000,000 in loans and equity in 2011 to ensure the supply of the Light Rare Earths range of metals to Japanese industry. The Company currently holds a 95% stake in the Lofdal project, with the remaining 5% being held for the benefit of historically disadvantaged Namibians. The terms of the JOGMEC joint venture agreement with the Company provide that JOGMEC provides $ 3,000,000 at term 1 and $ 7,000,000 at term 2 to acquire a 40% stake in the Lofdal project. Term 3 requires a new $ 10,000,000 expenses to earn an additional 10% interest. JOGMEC can also buy another 1% for $ 5,000,000 and has the first right of refusal to fully finance the project up to commercial production and to purchase all production at market prices. The collective interests of NMI and historically disadvantaged Namibians cannot be diluted below 26% direct interest upon payment of $ 5,000,000 to JOGMEC for protection against dilution. The joint venture agreement is structured such that no NMI shares will be issued and it is fully non-dilutive to NMI shareholders. To date, JOGMEC has funded the expenses of Terms 1 and 2 totaling $ 6,600,000.

On Namibia Critical Metals Inc.

Namibia Critical Metals Inc. holds a diversified portfolio of exploration and advanced projects in the country of Namibia focused on developing sustainable and ethical sources of metals for batteries, electric vehicles and related industries. The two late stage projects in the portfolio are Lofdal and Epembe. The Company also holds significant land positions in areas favorable to gold mineralization.

Heavy rare earths: The Lofdal Dysprosium-Terbium project is the most advanced project of the Company being fully licensed with a Mining permit (ML 200) and Environmental Clearance Certificate (ECC) issued in 2021. The project is being developed in a joint venture with Japan National Oil, Gas and Metals Corporation (“JOGMEC”) to provide a sustainable supply of heavy rare earths to Japan, especially dysprosium and terbium. Gold: The Company’s Gold Company’s Exclusive Exploration Licenses (“EPL”) are located in Namibia’s central gold belt which is home to a number of significant orogenic gold deposits, including the Navachab Gold Mine, the Otjikoto Gold Mine and more recently the discovery of Twin hills to pay. At Erongo gold project, stratigraphic equivalents of the metasediments hosting the recent Osino gold discovery at Twin hills have been identified and soil studies are progressing on this very promising area.

The Grootfontein Base Metals and Gold Project has potential for magmatic copper-nickel mineralization, Mississippi Valley-type zinc-lead-vanadium mineralization and Otjikoto-style gold mineralization. The detailed interpretation of the geophysical data and the regional geochemical sampling of the soil made it possible to identify the first gold targets, the first targets being tested by drilling. Tantalum-Niobium: The Tantalum-Niobium-Uranium Epembe project is at an advanced stage with a well-defined 10 km long carbonatite dyke that has been delineated by detailed mapping and radiometric surveys and over 11,000 meters of drilling. Preliminary mineralogical and metallurgical studies, including sorting tests (XRT), indicate the potential for significant physical upgrading. Further work will be undertaken to move the project to a preliminary economic assessment stage.

Copper-Cobalt: Kunene copper-cobalt project includes a very large area of ​​favorable stratigraphy along the strike of the Opuwo cobalt-copper-zinc deposit. Secondary copper mineralization over a large area indicates preliminary evidence of a regional scale hydrothermal system. Exploration targets on EPLs held in the Kunene project include direct extensions of cobalt-copper mineralization to the west, sediment-hosted copper, orogenic copper, and stratiform manganese and zinc-lead mineralization. . The ordinary shares of Namibia Critical Metals Inc. trade on TSX Venture Exchange under the symbol “NMI”.

Contact:

Darrin campbell

Phone: +01 (902) 835-8760

Fax: +01 (902) 835-8761

Email: [email protected]

Web: www.NamibiaCriticalMetals.com

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