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Boardroom Media Chairman Interview

Myanmar Metals Limited (ASX:MYL) (“MYL” or “The Company”) is pleased to provide investors with an opportunity to listen to an interview with Chairman John Lamb on Boardroom Media.

The interview provides an overview of the Bawdwin Lead-Zinc-Silver-Copper Project in Myanmar and an update on the number of operational developments expected to be delivered in Q4 2017.

The audio broadcast will be available for access at 10am EADT Wednesday 4th October at https://boardroom.media/broadcast/?eid=59cda12c6d13462469ed6bbe. Alternatively, a copy of the interview will also be available on the Company’s website at www.myanmarmetals.com.au.

For further information please contact:

John Lamb, Chairman

Mob: +61 (0) 400 165 078

Email: j.lamb@myanmarmetals.com.au

 

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BAWDWIN OPTION EXERCISED

Myanmar Metals Limited (“MYL” or “the Company”) advises that the Bawdwin Option has been exercised and payment made to the Bawdwin Concession holder, and MYL’s partner, Win Myint Mo Industries Co. Ltd (WMM) by both MYL and its incoming partner East Asia Power Co. Ltd (EAP).

The Bawdwin JV Management Committee was formed and held its first meeting in Yangon last week. John Lamb, MYL’s Executive Chairman and CEO, was appointed Chair of the Management Committee.

Screenshot 2018-06-20 22.06.36

Signing of the Bawdwin Operating Agreement that established the Bawdwin Joint Venture in Yangon last week. Seated left to right – U Kyaw Sein (EAP), Mr John Lamb (MYL), U Maung Kyay (WMM). Standing – representatives from MYL, EAP and WMM and their respective advisors.

“This is a historic moment for MYL, EAP, WMM and the Bawdwin project. The foundations are now set, and we will work with our partners to move through the various stages of feasibility to bring this world class mine into production.

The exercise of the Bawdwin option is the result of a lot of hard work and I thank the MYL team, our JV partners, consultants and advisors in helping us realise this most important goal.”

The Joint Venture will now work towards completion of a bankable feasibility study and approval by the Ministry of Natural Resources and Environmental Conservation (MONREC) and Myanmar Investment Commission (MIC) for the construction and operation of the mine.

Having completed the raising of $35 million through its Placement last week, the Company advises that its offer of securities pursuant to its prospectus dated 14 June 2018 is now closed. The Company will not be issuing any further shares pursuant to this offer.

 

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APPOINTMENT OF MR PAUL ARNDT AS DIRECTOR

Myanmar Metals Limited (“MYL” or “the Company”) is pleased to announce that Mr Paul Arndt has been appointed to the Board of MYL as a Non-Executive Director. Mr Arndt is the nominated representative of Perilya Limited (“Perilya”). Perilya is the Company’s largest shareholder and now holds a 19.99% interest following completion of the Company’s $35 million share placement. See announcements dated 25 May 2018 and 14 June 2018 for further details.

John Lamb, Executive Chairman and CEO, stated:

“Paul is a valuable addition to our Board. His experience in leading a mining company with a global portfolio of base and precious metal projects will be drawn upon to develop Bawdwin to its full potential. We welcome Paul to the team and look forward to working closely with Perilya under our strategic alliance.”

Biography of Mr Paul Arndt:

BSc, MSc, Grad Dip Engineering, MBA
Perilya Limited Managing Director and Chief Executive Officer

Paul Arndt was appointed as Perilya’s Executive General Manager of Operations and Development in February 2008 and subsequently appointed to the joint roles of Managing Director and Chief Executive Officer of Perilya on 25 November 2008.

Paul was initially appointed to oversee performance improvements at the Broken Hill Operation. During Paul’s time with Perilya he has been instrumental in delivering almost a doubling in productivity as well as significant reductions in direct operating costs at the Broken Hill Operation. During Paul’s tenure at Perilya, it has acquired and commenced development of an underground polymetallic (copper, zinc, gold & silver) mine in the Dominican Republic.

Paul brings a range of skills and qualities well suited to the role, including a steadfast and disciplined approach to addressing key business drivers. Paul brings a wealth of mining experience and skills in the areas of strategy, commercialisation, people and project management. MYL will no doubt benefit from the many parallels in terms of developing a polymetallic mining operation in a developing country that Paul has gained from his more recent experience in the Dominican Republic.

Former roles include senior general management positions with Newcrest Mining Limited at their Telfer operation in Western Australia, Pasminco Limited’s Cockle Creek smelter in Boolaroo (NSW), and MIM Holdings Limited’s Britannia zinc and lead operation in Avonmouth (UK).

About Perilya Limited:

Perilya, an unlisted Australian public company, is an Australian base metals’ mining and exploration company. Perilya owns and operates:

  • The iconic “South Operations” zinc, lead and silver mine in Broken Hill, New South Wales, Australia;

    The “Potosi/Silver Peak” zinv, lead and silver mine (also in Broken Hill); and the Cerro De Maimon copper, gold and silver mine in the Dominican Republic

In addition, in 2016 Perilya re-opened and commissioned its “Northern Operations” zinc, lead and silver mine (also in Broken Hill) and has just commenced development of an underground polymetallic (copper, zinc, gold & silver) mine in the Dominican Republic.

Perilya also has a number of projects currently the subject of development studies including: a zinc silicate project in South Australia; a copper/cobalt project in Queensland; and the Cumpié Hill nickel laterite project in the Dominican Republic. Perilya is owned 100% by Shenzhen Zhongjin Lingnan Nonfemet Co. Limited (“Zhongjin Lingnan”), China’s largest integrated zinc producer. Zhongjin Lingnan is listed on the Shenzhen Stock Exchange and, as at 2 May 2018, has a market capitalisation in the order of CNY22.5 billion with production of lead and zinc contained metal of 305kt in 2017. Zhongjin Lingnan controls approximately 1.4% of the zinc metal production of the world (FY2016).

Both Perilya and its parent, Zhongjin Lingnan, have had a global focus with mining operations, smelting operations, exploration and development projects in Australia, Dominican Republic, Canada, Malaysia, Ireland, Africa and the People’s Republic of China.

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GENERAL MEETING OF THE COMPANY CHAIRMAN’S ADDRESS

Thank you for your attendance today ladies and gentlemen, at a meeting which is quite possibly the most important in the Company’s history.

In a few moments I will ask you to cast your vote on a series of resolutions which will change our company forever. Of course, you know that I am talking about funding the exercise of the Bawdwin Option, which changes MYL from a junior with a chance, into a mining company with a controlling interest in a world-class asset: An asset that we intend to develop and mine so that we can fulfil our goal of becoming a significant metals producer.

Your vote is crucial and, to be clear, your Board recommends you vote FOR all resolutions.

I would like to briefly recap some of the key milestones from the past 12 months, and then move to the details of the current placement. There is a new presentation pack available on the website and ASX portal and you will also find the text of this address on the ASX portal as well.

Turning first to the key milestones of the past year:

Over the past 12 months, your Board has made significant progress transforming Myanmar Metals into a fast-growing resources company with a Tier-1 mining asset.

  • Last October we released the first JORC-2012 resource ever declared at Bawdwin; and that was followed by updates in December, March and May. Despite the fact that we have only drilled within the confines of the historical mine workings and have not made any attempt to explore the 9km of strike extent on the tenement at this stage, the total JORC resource stands at 82 million tonnes of which 20 million tonnes in in the Indicated Category and some 44 million tonnes makes up a high-grade primary deposit grading 7.8% lead, 3.6% zinc, 180 g/t silver and 0.3% copper. Copper which, by the way, we now know occurs in discrete zones within the deposit and so we have declared 4.24 million tonnes grading 3.03% copper plus high grade lead, silver and zinc1.
  • Make no mistake: Bawdwin ranks amongst the very best lead/zinc deposits globally.
  • Over 7,000 metres of drilling, together with logging, assaying and modelling have gone into the resource model, along with historical data drawn from the 56 kilometres of tunnels developed at Bawdwin by the old-time miners.
  • In addition to the technical work, we have engaged with the Myanmar Government, including the detailed presentation of our Scoping Study in December. That engagement has led to both the Ministry of Natural Resources and Environmental Conservation and the Myanmar Investment Commission welcoming us as participants.
  • One of the reasons for that acceptance is that we offer a new model for mine development: A model in which the foreign owner has a small majority and capable local companies participate fully in the project. A model in which the Joint Venture operates and reports to Australian standards, ensuring transparency and good practices. A model that will deliver, as mines in Australia do, social benefits in our host communities.
  • Much work has been done de-risking the project. By selecting East Asia Power (EAP) to join Win Myint Mo and ourselves as a third JV partner, we substantially reduced sovereign risk. EAP is a capable local company already working in the metals industry and already employing in our region and trading across the same border crossing into China; and part of a major national manufacturing conglomerate.
  • Our JV negotiations concluded successfully about three weeks ago and a shareholders’ agreement has been struck between the parties.
  • These things led us to give formal notice, two weeks ago, of our intention to exercise the Bawdwin Option together with the other incoming party, EAP.
  • That notice started a 28-day countdown requiring payment between the two parties of $20 million USD by close of business on the 18th of June. Our share is $13.9M USD or about $18.5M AUD
  • As you know, we intend to fund that from part-proceeds of our current $35 Million AUD raising, for which your approval is required.

Turning now to our current capital raising, the headline is that major placement commitments are already secured.

After a comprehensive global cornerstone process, your Board is delighted to have secured Perilya as our cornerstone 19.9% shareholder (subject to your approval, FIRB approval and completion of the placement).

Perilya is an ideal strategic investor with a wealth of experience in zinc, lead and silver mining operations and metals marketing. These strategic benefits are backed by Perilya’s parent company, Zhongjin Lingnan, China’s largest integrated zinc producer with a market capitalisation in the order of CNY22.5 billion. Perilya has flagged its assistance in future capital raisings by providing a letter of support, but I note to you that the Bawdwin product offtake is at this stage 100% unencumbered.

Perilya’s commitment, in combination with the ongoing support of major shareholder Mr. Mark Creasy, means that Myanmar Metals is already fully funded for imminent exercise of the Bawdwin option. Binding commitments for $19.1 million in funding from Perilya and Mr. Creasy’s Yandal Investments Limited ensure that the company will have sufficient cash to exercise the Bawdwin Option. This truly validates the quality of the opportunity at hand and represents the key foundation for the Placement, which your Board is now seeking your approval to complete.

I can also tell you that over the past few days we have received pre- commitments for an additional $7 million from two institutional investors which takes the raising beyond its minimum $25 million before we look to place shares more widely. That is outstanding news and a real vote of confidence in both the asset and the way our company has gone about securing it.

It remains now to fill the rest of the placement, out to a total of $35 million dollars with your approval. I can tell you that, as of this morning, the company is in a Trading Halt while we meet, then take binding bids and determine our allocations.

Shares will be placed at 6 cents, a slight discount to both the last close and last week of trading. We expect shares to re-commence trading on Thursday 7th June; settlement of the placement will be on the 14th to allow for payment of our option fee before the deadline.

Upon payment of the Option fee, Myanmar Metals will be transformed into a well-funded 51% operator of the world class Bawdwin Project. This has been the major focus for your Board over the last 12 months.

Through the participation of two of Myanmar’s largest industrial players as joint venture partners, and now with the support of our largest investors, Perilya and Yandal, Myanmar Metals is well placed to deliver considerable value for shareholders in the near-term.

At every turn, the Bawdwin project has continued to fulfil its promise as a Tier- 1 polymetallic deposit, and it is our firm view that we are only at the tip of the iceberg in terms of the potential size and scale of Bawdwin. The upside associated with Bawdwin’s development is truly outstanding – very rarely do projects of this magnitude sit within what is still a small, emerging publicly listed company.

Your support and participation in voting FOR the Resolutions presented at this Meeting is an important step in enabling the Company to capitalise on the world-class opportunity that is Bawdwin.

I thank you for your support and the belief you have shown in myself and the board; and I look forward to another strong show of support here today.

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CHAIRMAN’S LETTER – Your vote matters.

Dear Myanmar Metals Shareholder,

I would like to ask you to please take a few minutes to cast your proxy vote for the Myanmar Metals Limited General Meeting or, if possible, attend the Meeting in person. Your participation is vital in allowing your Company to proceed with an essential capital raising for the exercise of the Bawdwin Option and the funding of feasibility studies.

Your Board recommends you vote FOR all resolutions.

The Meeting is also an opportunity for shareholders to receive an update on the key corporate and operational milestones being achieved by your Company.

Key Milestones
Over the past 12 months, your Board has made significant progress transforming Myanmar Metals into a fast-growing resources company with a Tier-1 mining asset. Recent key developments include;
• the Company providing notice of intention to exercise the Bawdwin Option;
• securing funding to cover the costs of due diligence and drilling at Bawdwin;
• obtaining advice from Myanmar Government authorities allowing for the Company to participate;
• de-risking the project by securing partnership and investment from a high calibre local
partner; and
• defining a world class JORC-2012 compliant Indicated and Inferred Mineral Resource resulting from an active drilling program

Placement Commitments Secured 
After a comprehensive global cornerstone process, your Board is delighted to have secured Perilya as our cornerstone 19.9% shareholder (subject to the receipt of shareholder approval and completion of the placement). Perilya is an ideal strategic investor with a wealth of experience in zinc, lead and silver mining operations and metals marketing. These strategic benefits are backed by Perilya’s parent company, Zhongjin Lingnan, China’s largest integrated zinc producer with a market capitalisation in the order of CNY22.5 billion.

In combination with the ongoing support of major shareholder Mr. Mark Creasy, Myanmar Metals is now fully funded for imminent exercise of the Bawdwin option.

The binding commitments for $19.1 million in funding from Perilya and Mr. Creasy’s Yandal Investments Limited, further validates the quality of the opportunity at hand and represents the key foundation for the Placement which your Board is now seeking your approval to complete.

Upon completion of the Placement, Myanmar Metals will be transformed into a well-funded 51% operator of the world class Bawdwin Concession. This has been the major focus for your Board over the last 12 months.

Through the participation of two of Myanmar’s largest industrial players – Win Myint Mo Industries Co., Ltd and East Asia Power (Mining) Company Limited respectively – together with the support of our cornerstone investors, Perilya and Yandal, Myanmar Metals is now well placed to deliver considerable value for shareholders in the near-term.

At every turn, the Bawdwin project has continued to fulfil its promise as a Tier-1 polymetallic deposit, and it is our firm view that we are only at the tip of the iceberg in terms of the potential size and scale of Bawdwin. The upside associated with Bawdwin’s development is truly outstanding – very rarely do projects of this magnitude sit within what is still a small, emerging publicly listed company.

Shareholder Meeting Details
You will now have received the Notice of General Meeting and accompanying Proxy Form. An amendment to the Notice of Meeting which confirms that the Placement will be completed at an issue price not less than 6 cents per share accompanies this letter.

The General Meeting will be held at AICD, WA Business Centre and Member Lounge, Level 1 77 St Georges Terrace, Perth Western Australia 6000, on Tuesday 5 June at 9:00am (AWST). I would encourage all shareholders who are able to attend to please do so.

For shareholders unable to attend, a proxy can be appointed to attend on your behalf. The most- timely way to ensure your Proxy Form is lodged on time is to vote online before 9:00am WST Sunday 3 June 2018. Proxy forms and instructions for voting can be accessed online at www.linkmarketservices.com.au.

Your support and participation in voting for the Resolutions presented at the Meeting is an important step in enabling the Company to capitalise on the world-class opportunity that is Bawdwin. Without that support the Company will be unable to complete its acquisition of an interest in Bawdwin and all the successes and efforts of the past year will be lost.

I look forward to a strong show of support and remind you that myself and my fellow directors strongly support a FOR vote for every resolution.

Yours sincerely,

John Lamb
Executive Chairman Chief Executive Officer

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MYL GIVES FORMAL NOTICE TO EXERCISE BAWDWIN OPTION

Myanmar Metals Limited (“MYL or “the Company”) is pleased to announce that it has issued formal notice to Win Myint Mo Industries Co., Ltd (WMM) that it will exercise the Bawdwin Option, with its partner East Asia Power (Mining) Company Limited (EAP).

The combined option fee of US$20 million represents reimbursement of past project expenditure incurred by Concession Holder WMM and will be payable by 18 June 2018. The Company will finance its share of the option payment (amounting to US$13.9 million) with funds raised from the placement of up to A$35 million of MYL shares.

The issuance of placement shares will be subject to shareholder approval to be sought at the Company’s General Meeting to be held on 5 June 2018.

John Lamb, CEO and Chairman stated:

“This is a significant milestone for the Company. Over the past 12 months we have successfully completed our due diligence on the Bawdwin Project and, subject to completion of the Placement, can move forward into feasibility studies. I thank the MYL team for their efforts over this period.

I would also like to acknowledge the cooperation we have received from our partners WMM and EAP to bring the project to this point.”

The recently completed 4,368 metre drilling program and related testwork will provide much greater confidence to the Mineral Resource estimate with the intent of declaring a maiden JORC Compliant Indicated Mineral Resource imminently.

The updated Mineral Resource estimate will be incorporated into an update of the Scoping Study and this is due mid-June.

The Company is focused on the exercise of the option and thereafter, will move into the feasibility phase.

John Lamb Chairman and CEO

For More Information:

Ross Dinsdale, General Manager Investor Relations and Corporate Affairs Mob: +61 8 6147 8103
Email: r.dinsdale@myanmarmetals.com.au

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BAWDWIN PROJECT FURTHER DE-RISKED AFTER GOVERNMENT ADVICE

Myanmar Metals Limited (ASX: MYL) (“MYL” or “the Company”) is pleased to announce that advice received from Myanmar government authorities allows the Company to proceed with the planned exercise of the Bawdwin option.

MYL is now in the process of finalising contractual arrangements with its partners Win Myint Mo Industries Co. Ltd (WMM) and East Asia Power (Mining) Company Ltd (EAP) respectively.

Under these arrangements pre-feasibility and feasibility studies will be conducted, leading to an application for approval by the Ministry of Natural Resources and Environmental Conservation and the Myanmar Investment Commission to construct and operate the Bawdwin Mine.

Myanmar Metals Chairman and CEO John Lamb commented:

“This is a very positive outcome and clears the way for our exercise of the Bawdwin option. The Company and its partners have enjoyed good engagement with the Myanmar Government which has resulted in favourable advice for the Company’s participation in the Bawdwin Project.

“From an operational perspective, we are well advanced with the second resource drilling program which will allow MYL to declare a maiden JORC Indicated Mineral Resource, in turn allowing us to share with the market an updated Scoping Study.

“In addition, discussions with a number of potential funding partners are progressing well and we expect to proceed with the exercise of the Bawdwin option on schedule in May.”

For More Information:

Ross Dinsdale, General Manager Investor Relations and Corporate Affairs Mob: 0420 702 970
Email: r.dinsdale@myanmarmetals.com.au

About MYL’s Bawdwin Option

In May 2017 MYL, the Company negotiated an exclusive option with WMM to acquire a controlling interest in the Bawdwin concession, hosting the world class polymetallic Bawdwin deposit. Since that time MYL has substantially de-risked the project and successfully progressed through commercial, technical and legal due diligence.

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MYL AND WMM SECURE MAJOR MYANMAR INDUSTRIAL COMPANY TO INVEST IN BAWDWIN PROJECT

  • Bawdwin now substantially de-risked with new local partner, East Asia Power (Mining) Company Limited (EAP) investing in the project.
  • EAP has significant mining and processing expertise as managers of Longh Keng zinc mine and Lashio zinc refinery in Myanmar.
  • EAP has a strong affiliation with one of Myanmar’s largest industrial conglomerates.
  • WMM and EAP will hold 49% of Bawdwin and MYL will hold a majority 51% interest and operational control.
  • EAP to reimburse a proportion of costs incurred to date by MYL on Bawdwin, including the cost of option fees and extension fee totalling US$3 million.
  • EAP will contribute pro rata to all future costs including the Bawdwin option exercise fee of US$20 million – MYL’s contribution to option fee now reduced to US$13.9 million.
  • Bawdwin’s development now underpinned by substantially invested local companies and MYL’s expertise and access to global capital markets.

Myanmar Metals Limited (“MYL” or “the Company”) advises that together with its local partner, Win Myint Mo Industries Co., Ltd (WMM), it has secured EAP, a company with strong affiliations to one of Myanmar’s largest and most respected industrial companies, as a project-level investor in the development of the global tier-1 polymetallic Bawdwin Mine.

In a transaction that substantially de-risks the future development and financing of Bawdwin, MYL is delighted to have agreed terms with East Asia Power (Mining) Company Limited (EAP), where EAP will effectively acquire a 24.5% share of the Bawdwin Concession and Mine in return for reimbursing costs MYL have incurred to date and sharing in the payment of the pending option fee that secures the tenure over Bawdwin.

EAP owns and operates a manganese mine and a coal mine in Myanmar and also manages the operations of the Longh Keng high grade zinc mine and Lashio zinc refinery on behalf of Cornerstone Resources Myanmar Limited; shareholders of which include Mark Creasy’s Yandal Investments. Its mining expertise is significant.

As a result, the final post-option exercise ownership of equity in Bawdwin between the three parties will be MYL 51%, EAP 24.5% and current shareholders WMM 24.5%. This places total ownership by local Myanmar companies at 49%, with MYL retaining a majority interest and management control over the construction, development and operation of Bawdwin.

EAP will acquire the rights to Bawdwin in return for reimbursing MYL’s costs to date on a pro rata basis. MYL will likely be reimbursed approximately US$1.4 million in the near term as a result. EAP will contribute pro rata to all future costs including the Bawdwin option exercise fee of US$20 million. MYL’s contribution to option fee reduces to US$13.9 million. WMM’s carried interest in the project will be repaid from future dividends.

EAP Background

EAP was established in 2006 for the sole purpose of acquiring and developing mineral resource projects in Myanmar.

EAP currently owns and operates a manganese mine and a coal mine in Myanmar. Since 2012 EAP has also managed the construction, commissioning and operations of the Lashio zinc refinery in the northern Shan State and the high grade Longh Keng zinc mine in the southern Shan State on behalf of Cornerstone Resources Myanmar Limited. Mark Creasy’s Yandal Investments is a major shareholder in Cornerstone Resources Myanmar Limited.

The entire construction and commissioning of the plant was completed on time and on budget within a two-year period. This modern EW zinc refinery commissioned in April 2015 is believed to be the only operating modern zinc refinery in South East Asia at present and is primed for expansion. The refinery has a nameplate capacity of 10,000MT of refined LME grade zinc per annum. The Cornerstone Resources zinc mine at Longh Keng and the refinery at Lashio collectively employ approximately 500 workers.

EAP, its directors, key shareholders and affiliated companies are experienced and heavily invested in major industrial projects throughout Myanmar. Collectively they employ over 5,000 people and have a record of successfully joint venturing with international companies.

A Strong, Strategic Partnership Established to Develop a Global Tier-1 Polymetallic Mine

With EAP’s participation in the project secured and with Win Myint Mo’s ongoing involvement, MYL has assembled the best possible local partners to develop Bawdwin. They provide operational expertise, lobbying strength, solid and effective government relations skills, and they hold a very strong position within the Myanmar economy.

As well, EAP and WMM’s participation addresses the three key aspects of project investment risk in foreign jurisdictions: having a balanced ownership structure that satisfies local ownership requirements, retaining ownership of the asset throughout its life, and operating the asset efficiently in-country.

Together with MYL’s ASX-listed status and access to international capital markets, the three parties collectively have the necessary complementary skills to successfully develop Bawdwin.

Management Commentary

Myanmar Metals CEO John Lamb commented:

“The value of EAP’s investment in Bawdwin is a very significant development for MYL, it de-risks the project considerably, and we now have two well recognised and respected local Myanmar companies that will both hold large stakes in the Bawdwin concession.

Their participation will assist immeasurably with Bawdwin’s development, it gives us excellent in-country connections and recognition and means that a large percentage of Bawdwin’s ownership stays within Myanmar. It is the right model for a foreign company like MYL investing in such a rapidly emerging and fast-growing economy.

EAP’s principal shareholders and directors have a strong track record of partnering with foreign companies. This gives us great confidence, as does their sector expertise operating Myanmar’s only zinc refinery at Lashio, and zinc mine at Longh Keng.

MYL is well funded to execute on its current works program. Our financial obligations for the pending option payment have reduced materially, and interest in the Bawdwin project from investors, commodity traders and global mining companies is growing all the time. EAP’s investment as a de-risking catalyst will certainly increase investor appeal for Bawdwin.

We look forward to providing further progress updates that are pending on more corporate and operational developments.”

Bawdwin Concession and Option

As per MYL’s ASX release dated 6 March 2018, the total updated Mineral Resource estimate for Bawdwin is 76.9 Mt at 4.6% Pb, 2.3% Zn, 0.24% Cu and 118 g/t Ag in the Inferred category, comprising a high-grade primary resource and low-grade halo in the open-pittable zone (above 750mRL) as reported previously on 17 October 2017 and 1 December 2017.

The Bawdwin Concession is currently owned 100% by WMM. MYL is a party to an Option Agreement with WMM, executed on or around 22 May 2017 (Option Agreement). Under the Option Agreement, MYL is granted an option (Option) to acquire an 85% interest in the mineral production concession for the Project (Concession), as held by WMM. The Concession principally comprises a Production Sharing Agreement between WMM and State-owned company No.1 Mining Enterprise (ME 1) over the 38km2 Bawdwin concession, as well as ancillary assets such as two hydro-electric power stations, transmission line, railway, historical tailings area and many buildings and other fixed plant assets.

MYL has now signed an agreement (Binding Heads of Agreement, “HofA”) with EAP. Under the HofA, MYL and EAP have agreed that EAP will participate in the Option by acquiring a 24.5% interest in the Concession. Pursuant to the Option Agreement, and subsequent

arrangements agreed between MYL and the shareholders of WMM, it is intended that, following exercise of the Option the shareholders in WMM will buy back an aggregate 9.5% interest in WMM from MYL, such that the final participating interests in the Concession will be: 51% MYL; 24.5% EAP; and 24.5% current shareholders of WMM.

It has been determined that Win Myint Mo will continue to be the vehicle to hold the Bawdwin Concession; thus, the concession does not need to be transferred and remains in force throughout. In due course EAP and MYL will take direct shareholdings in WMM, such that it becomes an incorporated joint venture vehicle.

Next Steps on Bawdwin Project

A diamond drilling programme is underway at Bawdwin. This drilling initially targets the ‘starter pit’ and will lead to an update of the Mineral Resource estimate by the end of Q2 2018, with the aim of reclassifying a significant proportion of the Mineral Resource within the initial open pit as Indicated.

This will lead to an updated Scoping Study, which will also incorporate results of metallurgical test-work that is currently underway.

The Company is focused on exercise of the option by 21 May 2018; thereafter a bankable feasibility study will be prepared.

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BAWDWIN EXPLORATION POTENTIAL

“Bawdwin is considered to be in a very unique position in that it may be the only ‘Tier 1’ scale VMS deposit in the world that has not had any modern exploration programs or modern drilling, either searching for extensions to the known deposits, or on the regional targets.” 

Exploration Potential Highlights

  • The Bawdwin concession has hardly been explored other than the known lodes.
  • There are a number of high priority exploration targets on the current concession which have strong potential for new base metal orebodies and which require modern systematic exploration programs.
  • Modern systematic exploration programs will be undertaken once the Bawdwin acquisition has been completed.
  • 5,000 metre RC and Diamond drilling program progressing well with first assays pending

Myanmar Metals Limited (“MYL” or “the Company”) is pleased to provide shareholders with this summary of a recently completed Exploration Review and Future Strategy Report (the “Valentis Exploration Report”). The report was commissioned by MYL’s partner and current tenement owner Win Myint Mo (“WMM”) and prepared by specialist in-country geological group Valentis Services Limited (“Valentis”) regarding the exploration potential of the Bawdwin concession.

The Valentis Exploration Report contains a summary of all historical exploration completed on the Bawdwin project, a compilation of previous reviews and exploration reports, and a review of targets with recommended exploration programs.

The Bawdwin Mine has had a long and prosperous mining history. The mine has historic production dating back to the first Chinese mining in the 15th century. Historical exploration has predominantly been focused on defining the current known lodes and extensions to them. Regional exploration in the Bawdwin district has never been given a high priority by miners. MYL’s technical consultants and Directors believe the region has considerable exploration upside.

There are a number of high priority exploration targets on the Bawdwin concession which have strong potential for the discovery of new base metals deposits and which require modern systematic exploration programs. These targets include:

  • At least 30 known gossan outcrops which have similarities to the original gossans above the known lodes at Bawdwin;
  • At least 30 known shallow historical mine adits situated outside of the known mine environs, with several containing substantial base metal sulphide intersections;
  • Several areas of base metals mineralisation outcropping on the concession outside of the known lodes; and
  • Base metals intersections in the small number of historical regional drill holes which were never followed up

The exploration potential is highly relevant and reflects the great potential for
Chairman and CEO John Lamb said:

“While our unswerving focus is on exercising the Bawdwin Option and developing a new mine at Bawdwin, significant shareholder value can be added from extending the known resource and discovering new resources on the concession.”

“As Bawdwin is a VMS-style deposit, we expect repeated occurrences of wide, high-grade lenses similar to those already known at Bawdwin, to occur along the main controlling structures. The Valentis Exploration Report highlights the considerable exploration upside yet to be investigated at Bawdwin.”

 1. Key Attributes for Discovery

A number of key project attributes combine to provide strong confidence that the Bawdwin concession may host multiple base metals deposits, potentially with similar grades and size to the known lodes at Chinaman, Shan and Meingtha.

These attributes include:

  1. A substantial lateral area and thickness of favourable ‘mine host’ stratigraphy, displaying intense alteration in several regional locations which needs to be investigated with detailed geological mapping;
  2. The occurrence of at least 30 known gossan outcrops which may provide surface indications of concealed base metals lodes, as evidenced by the gossans above the Chinaman, Meingtha and Chin lodes. None of the regional gossans have been sampled or drilled and it is probable that not all gossan outcrops have been located within the concession area. For example, a reconnaissance traverse in May 2017 located an unknown and un-sampled gossan on a ridge to the east of, and above the upper Bawdwin village less than 200 metres from the dwellings.
  3. At least 30 known shallow Chinese mine adits exist on the concession and outside of the ‘mine environs’, with several mines containing substantial base metals mineralisation of substantial grade and thickness. No modern sampling or drilling of these prospects has been completed.
  4. Outcropping base metals mineralisation is noted in Bawdwin Tuff within the upper and lower ER Valley, and also in Gold Hole Valley.
  5. A total of only 30 regional exploration drill holes (i.e. not targeting the Chinaman, Shan or Meingtha lodes or extensions to them) have been completed over a 20-year period from 1956 to 1983 and no exploration drilling has been undertaken since 1983.
  6. Evidence of base metals mineralisation in several drill holes completed by the Canadian International Development Agency (‘CDIA’) and by the German Geological Mission (‘GGM’) in the 1970’s.
  7. Significant geophysical and geochemical anomalies have been defined. Many of these anomalies were not investigated with drilling at the time, and none have been verified by modern geochemical or geophysics programs, which are now exponentially more sensitive and accurate than the techniques of the 20th Century.
  8. Evidence of long-lived extensive longitudinal and cross faulting in the concession area, which are considered by most previous workers and reviewers to be a major key to controlling the base metals mineralisation in the district.

2. Bawdwin Exploration Background

The Bawdwin project is unique in that very little exploration drilling has been undertaken on the project in the past. The last drilling program was completed in 1983, 27 years before the open pit mining ceased production.

The geometry and metal grade of the three main Pb-Zn-Ag lodes (Chinaman, Shan and Meingtha) was established and well documented during the first period of modern mining at Bawdwin in the late 1800’s to the early 1900’s, following the extensive Chinese period of

underground mining. The long history of the mine, strong understanding of the base metal lodes, host geology and structure and the rich metal grades all contributed to the lack of modern exploration through much of the 1900’s. This was further exacerbated by provision of a long-term mine plan (>20 years at any one time) which did not need to be continuously extended by defining new ore sources with prospecting and exploration

The lack of modern exploration provides an opportunity for MYL and its partners to review and prioritise all Pb-Zn-Ag prospects which were defined historically and to apply modern exploration techniques to these prospects for the first time, aimed at the discovery of new minerals deposits

The application of electrical geophysics (Electromagnetics, Induced Polarisation, Controlled Source AMT) has been employed throughout much of the world in the past 50 years and has been highly successful in the discovery and prospect-scale delineation of base metals (Pb, Zn, Ag, and Cu) deposits. There have not been any modern electrical geophysics surveys completed at Bawdwin, with the last published survey being a Sirotem EM survey in the 1950’s.

The application of modern core drilling to define sub-surface geology and structure, combined with downhole geophysics and specialist logging techniques has resulted in a wealth of information being obtained from single drill holes. The ability to use this information to plan follow up programs quickly and efficiently has resulted in large cost savings compared to historical drilling methods.

Large VMS base metals deposits, with similarities to Bawdwin, occur throughout the world with variable metal types and grade. Some deposits are lead, silver and zinc rich, while others are copper rich and may have gold associated with them, separate from the lead and zinc, but in the same region.

The Bawdwin region does not have any history of gold exploration and this may be considered in future programs.

The Bawdwin deposit also contains significant amounts of primary copper mineralisation which has not been exploited in the past due to processing issues. The 2017 Bawdwin Inferred Mineral Resource contains an estimate for copper resources contained in the lodes and the Company therefore intends to explore for copper as well as other base metals mineralisation in future exploration programs.

3. Previous Exploration Programs and Reviews

A desktop and field review of the historical Bawdwin exploration programs has been completed.

The current exploration database comprises a limited number of hardcopy and digital reports containing plans and diagrams and no digital database exists. The review of the historical hardcopy data supports a full conversion of the available data held on site into digital formats for analysis with 3D GIS computer software. This analysis can then be used to categorise and prioritise all exploration targets and to define detailed programs and budgets.

Several geological mapping programs have been completed at Bawdwin and although the quality of the mapping is generally high, none of this data has been digitally captured for use in vector form, apart from direct scans.

No modern geophysics or geochemistry programs have been undertaken at Bawdwin since 1958.

A total of only 30 regional exploration drill holes (i.e. not targeting the Chinaman, Shan or Meingtha lodes or extensions to them) have been completed intermittently at Bawdwin over a 27-year period from 1956 to 1983 and no exploration drilling has been undertaken since 1983.

Summary

This background serves to confirm the massive and completely untapped exploration potential that exists at Bawdwin.

The Company looks forward to being able to plan and undertake significant exploration programs in the future. This will provide a long-term mining future to not only the Company and its investors but also to the people of Myanmar and in particular the local community at Bawdwin.

Update on Current Drilling Program

MYL is also please to confirm that the current 5,000 metre RC and Diamond drilling program aimed at upgrading the classification of the open-pittable part of the Bawdwin resource to “Indicated” in accordance with the JORC Code 2012 edition is progressing well with first assays to be reported shortly.

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ARGONAUT APPOINTED AS FINANCIAL ADVISER FOR THE BAWDWIN CONCESSION

Myanmar Metals Limited (ASX: MYL) (Myanmar Metals or the Company) is pleased to announce that it has appointed Argonaut as its exclusive financial adviser.

Argonaut will assist the Company in delivering the optimal funding package for the option exercise and the future development of the Bawdwin Concession.

Argonaut are a specialist natural resources financial adviser with offices in Hong Kong and Perth with significant experience in international equity, debt and hybrid financing, having completed transactions totalling over $10 billion since 2007.

Argonaut’s presence and network in Asia as well as long term experience working on Asian related transactions ideally places them to support our Bawdwin Concession funding discussions which are underway.

Commenting on the appointment of Argonaut, Myanmar Metal’s Chairman and CEO, John Lamb said

“I am delighted that we have partnered with Argonaut. They provide the depth of experience, international presence and track record that will be critical to support the financing of the Bawdwin mine back into production.”

For further information visit https://myanmarmetals.com.au/