Konkola West Copper Project

Konkola West Copper Project, 27067-HQ-LEL

The Konkola West Project comprises Exploration Licence 27067-HQ-LEL held by Mwashia Resources Limited. The licence overs 71.9 sq. km. and is located 18km northwest of Chingola in the Central African Copperbelt.

The Konkola West Project is targeting deep down-dip and along-strike extensions of the contiguous Lubambe-Mingomba-Konkola copper deposits to the west of the Licence and which extend north into the Musoshi mining complex in the Democratic Republic of the Congo. Together these deposits comprise a 15 kilometres long continuous zone of mineralisation that contained a pre-mining endowment of over 775 million tonnes grading 2-3% copper. Konkola West is located approximately 2,000 metres southwest of the Mingomba deposit which lies between the Konkola and Lubambe mines and which is currently being evaluated by KoBold Metals. KoBold has reported Mingomba to be one of the largest undeveloped copper deposits in the world.

The adjoining Konkola Mine is being redeveloped by Vedanta which has committed to invest $1 billion in KCM development and $250 million to all local creditors.

Tertiary’s 96% owned Zambian subsidiary Tertiary Minerals (Zambia) Limited (“TMZ”) was earning up to a 90% interest in Konkola West from Mwashia Resources but Tertiary and Mwashia have now reached an agreement with KoBold Metals to allow KoBold to earn an interest in Konkola West.

KoBold Metals is a US-based, privately held, mineral exploration company that couples geoscience, data science, machine learning, and artificial intelligence to search for the critical minerals needed for the clean energy transition and to accelerate growth in electric vehicles. KoBold is backed by technology investors including Breakthrough Energy Ventures (initiated by Bill Gates) and Silicon Valley venture capital firm Andreessen Horowitz, as well as institutional investors such as T. Rowe Price and Canadian Pension Plan Investment Board.

The key terms of the agreement with KoBold metals are as follows:

• KoBold is committed to complete at least two drill holes (for a total of at least 2,000m of drilling) within 14 months.

• On completion of Stage 1, the parties will form a joint venture company (“JVC”) to hold the Licence and enter into a shareholder agreement, the form of which is set out in the EIA. The initial JVC ownership will be KoBold 51%, TMZ 39% and Mwashia 10%. Mwashia’s equity interest will be free carried by KoBold and can be purchased by KoBold at any time for US$3.5 million.

• KoBold may elect to increase its ownership in the JVC to 70% in Stage 2 of the EIA through sole funding a cumulative expenditure of US$6 million on exploration within 4 years of signing after which TMZ will hold a 20% interest, and Mwashia will continue to hold a 10% carried interest in the JVC.

• After Stage 1 (or Stage 2 depending on KoBold’s election at the end of Stage 1) TMZ may elect to contribute to the further costs of the JVC pro-rata with its shareholding or dilute its interest in line with the customary joint venture dilution formula. Should TMZ dilute down to 10% shareholding in the JVC then TMZ’s 10% interest will convert to a 1% net smelter return royalty payable for a 13-year period following the start of commercial production.

The first drill hole to be drilled at Konkola West, KWDD001, is currently in progress.