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Giyani Metals Announces Corporate and Operations Update for the K.Hill Manganese Project in Botswana

Giyani Metals Corp. is pleased to provide operations and corporate update for its K.Hill Manganese Project (“K. Hill”) in Southern Botswana.

Robin Birchall, CEO of the Company commented:

“We are very pleased to bring the market up to date on a number of operational and corporate activities. Concurrent to the ongoing K.Hill feasibility study, which is expected later this year, we are working on a further revision to the PEA. This updated version contains a modified, simpler processing strategy to produce HPMSM, rather than HPEMM as per the current PEA. The updated strategy is an end-market driven decision, which we believe is a positive development for K.Hill.

We are also very happy with the results of the work conducted by Terravision at K.Hill and also the proof-of-concept study carried out at the Otse prospect.”

Update on K.Hill Studies

Concurrent to the ongoing feasibility study (“FS”), expected later this year, the Company is currently undertaking an update of the K.Hill preliminary economic assessment (PEA) to produce High Purity Manganese Sulphate Monohydrate (HPMSM), rather than High Purity Electrolytic Manganese Metal (HPEMM). The updated PEA released on 28 April 2020 (“2020 PEA”), assumed 100% production of HPEMM. The reason for the change is following feedback from independent market research, supported by direct discussions with potential end buyers. They have indicated that as the high purity manganese market grows, due to greater electric vehicle adoption, demand growth will be heavily skewed towards HPMSM. The revised PEA will also include an updated Mineral Resource estimate, following the ongoing drilling work completed to date and the results from an enhanced ground penetrating radar (“GPRplus™”) survey.

Ground Penetrating Radar Geophysical Survey Complete

In Q4 2020, the Company appointed Terravision Intelligent Exploration (“Terravision”) to conduct a GPRplus™ survey. The survey was used to quantify the extent of historically mined artisanal tunnels (“Historical Tunnels”) at K.Hill. This information is required for the K.Hill geological block model to determine the depletion factor to the Mineral Resource estimate.

In addition, Terravision conducted a proof-of-concept study on Giyani’s Otse prospect, using GPRplus™ as a low cost, rapid-feedback exploration tool. This is because the near-surface manganese oxide mineralization at Otse, unlike that of K.Hill, occurs in high grade pods. The results from the proof-of-concept study at Otse clearly identified the density differences between the mineralisation and the lower density host rock. Following these positive results, the Company plans to initiate a GPRplus™ survey across the wider Otse prospect area. The results of this survey will be used to better inform the forthcoming drill program planned for Otse. The Company will update the market on this in due course.

Appointment of Hydrometallurgical Laboratory

The Company has appointed both Mintek and Vietti Slurrytec to conduct hydrometallurgical (“Hydromet”) laboratory work, pursuant to the FS workstreams. The samples for the Hydromet work were drilled in Q4 2020 during the K.Hill infill drilling program. All samples have been bagged and shipped to Mintek in Johannesburg, South Africa. Mintek will cover all stages of the Hydromet work, except for the solid-liquid separation analysis, which will be conducted by Vietti Slurrytec. Completion of both workstreams is expected in Q2 2021.

Dataroom Access

Pursuant to seeking project financing in due course, the Company has signed an NDA with a large global commercial lending bank institution which is currently accessing the Company’s dataroom.

Update on Rock Island Sale

As previously announced in relation to the Company’s disposal of its non-core gold assets in South Africa, Giyani agreed to acquire all of the shares it did not own in Lexshell 837 (Pty) Ltd. in order to consolidate 100% ownership in that company. The final installment of 832,666 common shares of Giyani was conditional on the completion of the sale of its South African gold assets to Corridor Mining Resources Proprietary Limited (“CMR”), which has not yet been completed. As that sale remains pending, Giyani and the Lexshell vendor have agreed to complete the Lexshell sale for a cash consideration of C$45,000 as a full and final settlement in lieu of the issuance of Giyani common shares.

Giyani continues to pursue the outstanding ZAR6,370,031 owed to the Company by CMR, of which ZAR300,000 has been received so far in staged payments.

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