AfriTin Mining : Unaudited Interim Results

AfriTin Mining Limited

("AfriTin" or the "Company" and with its subsidiaries the "Group")

Unaudited Interim Results

for the six months ended 31 August 2020

AfriTin Mining Limited (AIM: ATM), an African tin mining company with its flagship asset, the Uis tin mine ("Uis") in Namibia, is pleased to release its unaudited interim results for the six months ended 31 August 2020.

Highlights

• • Revenue increased to £1,083,996 for the six-month period ended 31 August 2020;

• • Phase 1 pilot plant continues to ramp up and achieved a production record of 37.5 tonnes of tin concentrate in August 2020;

• • Publication of an internal operational and financial and forecast review to accompany the mineral resource estimate (JORC 2012) conducted by CSA Global, indicated robust economics for current plant expansion;

• • The Company expects to complete the ramp-up to steady-state production of 60 tonnes of tin concentrate per month by the end of 2020;

• • Continued shipments of tin concentrate to Thaisarco, with the agreement renewed for a further 12 months which is anticipated to increase revenues further as production continues to ramp up; and,

• • Renewed and increased working capital and VAT facilities with Nedbank Namibia during the period.

Chief Executive Officer's Statement

Introduction

Despite the continued global uncertainty around the COVID-19 pandemic and associated lockdown, AfriTin has steadily increased production at the Uis tin mine in Namibia, resulting in a marked increase in the revenue of the Company during the period. During this period, the operations of the Phase 1 pilot plant achieved a production record of 37.5 tonnes of tin concentrate in August 2020 despite ongoing planned shutdowns for plant improvements. This equates to 63% of expected Phase 1 steady-state production and with continued improvements we anticipate this increasing to steady-state production targets by the end of 2020. The off-take agreement with Thaisarco has been renewed for a further 12 months and the Company looks forward to building on this robust relationship as the shipments increase over the coming months. The global tin market has been one of the better performers on the London Metals Exchange during this uncertain period confirming our belief in the market fundamentals of tin.

COVID-19 pandemic

In March 2020, Namibia implemented a lockdown across the country in response to the global COVID-19 pandemic. However, under the government legislation, mining operations were categorised as critical economic services and minimal operational activity was permitted to continue, including critical maintenance work. To comply with this directive, AfriTin had to suspend open-pit mining at the Uis tin mine, but we were able to continue feeding the processing plant from the run-of-mine stockpile. At the time of the lockdown, more than two months' worth of ore feed had been stockpiled, enabling the Company to maintain the ramp-up, albeit at a slower pace than originally planned.

As a result of the COVID-19 pandemic, AfriTin implemented new health measures across the Company to protect our employees from the virus. The health and safety of our employees and communities remains a key priority, and the Company is following all World Health Organisation and Namibian National Health guidelines and recommendations to ensure their wellbeing. AfriTin can report that there have been no confirmed cases of COVID-19 at the Uis tin mine. A COVID-19 community support programme was established to support the residents of Uis. This includes providing the local clinic with medical supplies and contracting a local Uis resident to make facemasks which were distributed at the clinic and the local school.

Review of the business & operations

In June 2020, AfriTin performed an internal financial and operational review to accompany the mineral resource estimate (JORC 2012) conducted by CSA Global, declared on 16 September 2019. This review outlined the development strategy for the Uis tin project, dovetailed with AfriTin's corporate strategy of a fast-tracked but risk-mitigated pathway to growing company value through the establishment of free cash flows, while developing a schedule towards expanded operations.

This translates into the following objectives:

• • Confirming the historical mineral resources followed by exploration of proximal mineralised pegmatites;

• • Establishing a mining and processing operation of sufficient scale and efficiency to be commercially viable and provide free cash flows as expeditiously as possible;

• • Expanding the revenue stream from tin concentrate to include other viable by-products, with particular emphasis on tantalum and lithium; and

• • Using the pilot facility as a platform to develop a large-scale operation.

Initiatives to solve identified key bottlenecks in the processing plant are ongoing. As a result of higher-than-anticipated fines material in the run-of-mine feed, improvements were required to rebalance material flows and expand capacity related to the dewatering of grits (45 to 500 micron particles) and slimes (smaller than 45 micron particles). The bottlenecks in the fines dewatering circuit of the Uis processing plant have now been addressed. As a result, the Company looks forward to completing the ramp-up to steady-state production of 60 tonnes of tin concentrate per month by the end of 2020.

Financing

In May 2020, AfriTin secured a £2.05 million loan note facility. This facility enabled the Company to continue executing its growth strategy for the ramp-up phase of the Phase 1 pilot plant. In addition, the facility provided additional protection against any potential effects from the COVID-19 pandemic. At 31 August 2020, the Company had drawn down £1.8 million of this facility.

On 31 July 2020, the Company renewed and increased its working capital and VAT facilities with Nedbank Namibia for a further 12-month period. This support from a local bank in Namibia shows confidence in our Company, asset and commodity. In August 2020, AfriTin raised additional equity financing by way of a placing and subscription of £3.05 million at a price of 2.1 pence per ordinary share through existing shareholders and - importantly - this also attracted prominent new institutional investors to the share register. Their participation demonstrates on-going confidence in our team's ability to deliver our stated strategy and growth plans.

Outlook

2020 is proving to be an unprecedented time for both the mining sector and the world as a whole. However, the Company has adapted to the confines of the COVID-19 pandemic. I'd like to thank the entire team for all their dedication during these difficult times as well as acknowledge the ongoing support from the Namibian Government, our loyal shareholders and board of directors.

AfriTin is well set for the second half of the financial year as we continue our journey to become the tin champion of Africa and I look forward to providing further updates in the second half of the financial year.

Anthony Viljoen

CEO

For further information, please visitwww.afritinmining.comor contact:

AfriTin Mining Limited

Anthony Viljoen, CEO

[phone]

Nominated Adviser

WH Ireland Limited Katy Mitchell James Sinclair-Ford

[phone]

Corporate Advisor and Joint Broker

Hannam & Partners

[phone]

Andrew Chubb

Jay Ashfield Nilesh Patel

Joint Broker

Turner Pope Investments Andy Thacker

[phone]

Financial PR (United Kingdom)

Tavistock

[phone]

Jos Simson Barney Hayward

The information contained within this announcement is deemed by the Company to constitute inside information under the Market Abuse Regulation (EU) No. 596/2014

About AfriTin Mining Limited

Notes to Editors

AfriTin Mining Limited is the first pure tin company listed in London and its vision is to create a portfolio of globally significant, conflict-free, tin-producing assets. The Company's flagship asset is the Uis Tin Mine in Namibia, formerly the world's largest hard-rock opencast tin mine.

AfriTin is managed by an experienced board of directors and management team with a current two-fold strategy: fast-track Uis tin mine in Namibia to commercial production as Phase 1, ramping up to 5 000 tonnes of tin concentrate in a Phase 2 expansion. The Company strives to capitalise on the solid market fundamentals of tin by developing a critical mass of tin resource inventory, achieving production in the near term and further scaling production by consolidating tin assets in Africa.

CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME

For the 6 months ended 31 August 2020

6 months	6 months	12 months
ended	ended	ended
31 August	31 August	29 February
2020	2019	2020
(unaudited)	(unaudited)	(audited)
Notes	£	£	£
Continuing operations
Revenue	5	1 083 996	-	69 032
Cost of Sales	(1 070 239)	-	(47 336)
Gross Profit	13 757	-	21 696
Administrative expenses	6	(946 182)	(615 516)	(1 815 227)
Operating loss	(932 425)	(615 516)	(1 793 531)
Finance income	14	3 749
Finance cost	7	(109 410)	(15 346)	(40 719)
Loss before tax	(1 041 821)	(627 113)	(1 830 457)
Income tax expense	8	-	-	-
Loss for the period	(1 041 821)	(627 113)	(1 830 457)
Other comprehensive loss
Items that will or may be reclassified to profit or loss:
Exchange differences on translation of share-based payment
reserve	(4 342)	222	(1 039)
Exchange differences on translation of foreign operations	(1 293 490)	(31 697)	(1 113 281)
Exchange differences on non-controlling interest	(21)
Total comprehensive loss for the period	(2 333 440)	(658 609)	(2 940 610)
Loss for the period attributable to:
Owners of the parent	(999 434)	(624 551)	(1 781 962)
Non-controlling interests	(42 387)	(2 562)	(48 495)
(1 041 821)	(627 113)	(1 830 457)
Total comprehensive loss for the period attributable to:
Owners of the parent	(2 297 266)	(656 027)	(2 896 282)
Non-controlling interests	(36 174)	(2 582)	(44 328)
(2 333 440)	(658 609)	(2 940 610)
Loss per ordinary share
Basic and diluted loss per share (in pence)	9	(0.15)	(0.10)	(0.29)

3 793

6 213

4 167

CONSOLIDATED STATEMENT OF FINANCIAL POSITION

As at 31 August 2020

Company number: 63974

31 August	31 August	29 February
2020	2019	2020
(unaudited)	(unaudited)	(audited)
Notes	£	£	£
Assets
Non-current assets
Intangible assets	10	7 247 261	7 596 732	7 441 018
Property, plant and equipment	11	12 961 697	9 333 036	12 467 868
Total non-current assets	20 163 958	16 929 768	19 908 886
Current assets
Inventories	12	610 171	26 441	246 910
Trade and other receivables	13	362 756	992 390	648 722
Cash and cash equivalents	2 578 612	130 635	574 600
Total current assets	3 551 539	1 149 466	1 470 232
Total assets	23 715 497	18 079 234	21 379 118
Equity and liabilities
Equity
Share capital	18	23 604 665	20 223 173	20 487 239
Convertible loan note reserve	3 770 645	-	3 770 645
Accumulated deficit	(5 364 934)	(3 210 518)	(4 365 500)
Warrant reserve	19	215 956	78 651	78 651
Share-based payment reserve	729 808	264 671	559 534
Foreign currency translation reserve	(2 828 598)	(453 523)	(1 535 108)
Equity attributable to the owners of the parent	20 127 542	16 902 454	18 995 461
Non-controlling interests	(87 986)	(10 067)	(51 812)
Total equity	20 039 556	16 892 387	18 943 649
Non-current liabilities
Environmental rehabilitation liability	16	80 968	75 600	86 005
Lease liability	17	140 527	262 475	181 544
Total non-current liabilities	221 495	338 075	267 549
Current liabilities
Trade and other payables	15	894 008	763 307	894 830
Borrowings	14	2 517 536	85 465	1 230 961
Lease liability	17	42 902	-	42 129
Total current liabilities	3 454 446	848 772	2 167 920
Total equity and liabilities	21 379 118

23 715 497 18 079 234

The notes that follow in this report form part of these financial statements.

The financial statements were authorised and approved for issue by the Board of Directors and authorised for issue on 28 September 2020

ANTHONY VILJOEN Chief Executive Officer 28 SEPTEMBER 2020