REG - Eurasia Mining PLC - West Kytlim Operation Update and AIX Progress

Eurasia MiningAnnouncement

Mon 14:15

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RNS Number : 8477S  Eurasia Mining PLC  28 July 2025

28 July 2025

Eurasia Mining plc

West Kytlim Operation Update and AIX Progress

Eurasia Mining PLC ("Eurasia" or the "Company"), the iridium, osmium,
palladium, platinum, rhodium, ruthenium and gold mining company is pleased to
announce an update on West Kytlim operations.

Highlights:

·    West Kytlim is the world's largest soft-rock PGM mine with associated
gold.

·    It is the largest in terms of reserves and resources as well as the
largest in terms of production volumes since 2022, when the mine was put into
industrial-scale production.

·    West Kytlim operations consist of 12 mining assets, five of which
have been successfully launched into commercial production.

·    High precious metals grade in the concentrate produced at the mine is
above 80%.

·    It is the lowest cost PGM operation on the global scale with All-In
Sustaining Cost (AISC) targeting the range of $300-400 per troy oz.

Highlights of key factors for low cost:

·    Open-pit mining does not require drilling or blasting operations,
which typically account for 1/3 of the total cost. This absence of the need to
drill and blast means that West Kytlim's cost is 1.5x lower with all the other
factors being equal.

·    Stripping ratio is as low as 3x on average.

·    Transition of production to electricity has been completed: power
lines and substations, electric dragline and enrichment plants shift from
diesel generators to electricity.

·    Recruitment of employees in single-industry towns without the need to
pay 'northern' and 'polar' bonuses due to favourable geographical location in
the Urals.

·    Optimisation of logistics and reduction of transportation distances.

·    Significant capacity increase in 2025 with economies of scale driving
the per unit cost lower.

Highlights of capacity increases in 2025:

·    To execute on our Russian-exit strategy, the licences must be
maintained in good standing, and the West Kytlim licence agreement requires a
significant increase in volumes.

·    A professional team with backgrounds in Rusal, Norilsk Nickel, UMMC
(UGMK) and other large companies was engaged to execute on the increase and
subsequent exit.

·    As required by the licence agreement, six wholly-owned enrichment
plants have been successfully launched to full commercial scale production,
i.e. 2x the previously installed enrichment capacity and 6x the average
enrichment capacity utilised over the past two years.

·    A fleet of seven heavy 39-ton Chinese FAW trucks has been added to
scale up both stripping and mining capacity. All seven trucks are in
operation, making the total truck capacity 2-3x the capacity of KAMAZ trucks
used previously and with improved production logistics, a net 20x improvement.
This is primarily due to significantly shorter transportation distances to
optimised locations of the six enrichment plants relative to the mining
blocks.

·    Three heavy Chinese Lonking excavators with increased shovel capacity
have been acquired. These excavators, together with the electric dragline
launched in 2023 (which alone has 4.2 million m(3) of annual installed
capacity) and fully refurbished over 2024-2025 (with new engine, shovel,
etc.), 2x the previously installed excavation capacity in terms of the total
shovel size. This capacity is already significantly adding to both stripping
and mining volumes.

·    A South Korean Shantui heavy bulldozer was also acquired to further
increase the stripping capacity and the production volumes in 2025. This has
allowed one of the smaller bulldozers to be allocated to the road repairs,
which has resulted in higher productivity of the trucks and lower diesel
consumption.

·    In total, six enrichment plants (plus enrichment
workshop/laboratory), 15 excavators, seven bulldozers and 18 dump trucks are
utilised.

Highlights of other capacity added:

·    Repair units have been installed and commissioned to speed up the
maintenance and minimise the idle time of equipment to increase the production
volumes.

·    Storage facilities have been constructed and commissioned to minimise
the lead time for spare parts, also aiming at a higher utilisation of
equipment and higher production volumes.

·    Telecom tower was constructed and commissioned to cover the whole
licence area with internet connection.

·    Satellite location sensors and weight sensors were installed on each
equipment unit. These sensors, combined with the full-area internet coverage
allow the two newly hired controllers and the site management to optimise the
utilisation of equipment in real time online, which again contributes to
higher productivity and reduced diesel consumption.

·    In addition to the above, an 18 km power line, two high voltage
substations and a bridge to access new mining areas are utilised.

Highlights of volume increases:

·    By 1 July 2025, the total advanced stripping volumes stood at about
four million m(3). This is 2x of the previous peak annual stripping volume
achieved historically on the mine.

·    Four million m(3) represents 80% of the five million m(3) stripping
target, to produce 700kg of precious metals, based on average historical
grades.

·    Over two million m(3) of this stripping volume was completed in
relation to five tailing storage dumps for utilisation in 2025 and beyond.

·    Also, about two million m(3) of advanced stripping in relation to the
2025 mining season alone has been completed.

·    About 0.5 million m(3) of sand have been processed to date by the six
processing plants, equal to the peak annual volume achieved historically on
the mine.

·    In addition, about the same volume of sand has been stripped and
partly shipped to the storage areas close to the six processing plants.

·    Thus, in terms of sands (stripped, stockpiled and processed), almost
a 2x increase has already been achieved relative to the annual maximum reached
in the previous years.

·    These volume increases represent completion of a step-change
milestone to achieve the long-term annual target of 64Koz of precious metals
over the projected 20-year life of mine (please refer to RNS published on 1
July 2020).

Christian Schaffalitzky, the Executive Chairman commented:

"The Directors are pleased that compliance with the West Kytlim licence
agreement has resulted in the step-change breakthrough in terms of volumes
towards our long-term annual target of 64Koz of precious metals in the Urals.
This allows both the maintenance of the licence and the improvement of the
project to achieve our Russia exit strategy. This fundamental development is
another element of our strategy for value creation, coupled with recent
dual-listing in Astana, where we are working on changing the trading currency
from GBP to specific denominated currency units to facilitate BRICS investors
to include Eurasia's shares into their portfolios."

 

For further information, please contact:

Eurasia Mining Plc

Christian Schaffalitzky

+44 (0) 207 118 1095

SPARK Advisory Partners Limited (Nominated Adviser)

Andrew Emmott

+44 (0)20 3368 3555

Oak Securities (Broker)

Jerry Keen

Tel. +44 (0)20 3973 3678

Yellow Jersey PR (Financial PR)

Charles Goodwin / Shivantha Thambirajah

eurasia@yellowjerseypr.com (mailto:eurasia@yellowjerseypr.com)

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