Alphamin Resources Corp. (TSX-V:AFM) (JSE AltX:APH) a producer of 4% of the world’s mined tin¹ from its high grade operation in the Democratic Republic of Congo, is pleased to provide the following operational update for the quarter ended June 2022:

• Record quarterly tin production of 3,180 tonnes
• Q2 EBITDA⁴ guidance of US$66.5m
• Interim dividend for FY2022 of CAD$0.03 per share declared
• Strategic Review update

Operational and Financial Summary for the Quarter ended June 2022²

¹Data obtained from International Tin Association Tin Industry Review Update 2021 ²Production information is disclosed on a 100% basis. Alphamin indirectly owns 84.14% of its operating subsidiary to which the information relates. Totals may not add due to rounding effects. ³Q2 2022 EBITDA and AISC represent management’s guidance. ⁴This is not a standardized financial measure and may not be comparable to similar financial measures of other issuers.See “Use of Non-IFRS Financial Measures” below for the composition and calculation of this financial measure.

Operational and Financial Performance – Q2 2022

Contained tin production of 3,180 tonnes represents a quarterly record, 4% above the previous quarter. Underground mining and processing plant recoveries were in line with expectations. Year-to-date contained tin production of 6,241 tonnes exceeded the run-rate to achieve market guidance of 12,000 tonnes for the year ending December 2022.

AISC per tonne of tin sold is expected to decrease by 6% to US$14,800 following a 4% increase in production and the impact of lower tin prices on off-mine costs related to product marketing fees, royalties, export duties and smelter payables.

EBITDA for Q2 2022 is estimated at US$66.5m (Q1: US$98m) at an average achieved tin price of US$35,500/t (Q1: US$43,834/t). In addition to a higher tin price, the previous quarter’s sales volumes included a catch-up from delayed sales during Q4 2021.

The Alphamin consolidated Net Cash position increased by US$8,3 million during Q2 2022 to US$138.1 million. This increase is after a FY2021 corporate tax payment of US$43.5 million to the DRC government in April 2022.

Alphamin’s unaudited consolidated financial statements and accompanying Management’s Discussion and Analysis for the quarter ended 30 June 2022 are expected to be released on or about 26 July 2022.

Interim FY2022 Dividend Declared

The Board resolved to declare an interim FY2022 cash dividend of CAD$0.03 per share on the common shares (approximately US$30m in the aggregate) (the “Dividend”). The Dividend will be payable on 5 August 2022 to shareholders of record as of the close of business on 22 July 2022. Dividend distributions will be considered semi-annually based on excess free cash after taking account of capital funding requirements, including for the new Mpama South expansion project

Strategic Review Update

On 9 November 2021, the Company announced the initiation of a strategic review to explore alternatives such as fast-tracking the Company’s expansion and life-of-mine extension potential, balance sheet restructuring including revenue prepayments and streaming, shareholder distributions or a corporate merger or sale transaction.

The Company wishes to update shareholders and other market participants on this initiative:

1. Exploration drilling doubled from Q4 2021 to a quarterly average of over 12,000 metres and delivered an additional 124,700t contained tin in inferred Resource and 21,400t contained tin in indicated Resource at Mpama South. In addition, multiple high-grade tin intercepts were reported from drilling at depth at Mpama North.
2. Mine development of the adjacent Mpama South deposit commenced, which is expected to increase annual contained tin production from the current 12,000tpa to ~20,000tpa, approximating 6.6% of the world’s mined tin, effective FY2024.
3. Dividend distributions commenced in February 2022 (Final FY2021 dividend) and net cash increased from US$1m to US$138m during the 9 months ended June 2022. A strong balance sheet to support growth initiatives whilst achieving high dividend returns to shareholders is considered a robust value proposition.
4. The Company is of the opinion that global tin supply is likely to remain constrained for at least the next five years while demand for tin is expected to increase. In addition to the development of Mpama South, the Company’s vision is to discover more tin deposits on its license areas with a view to deliver additional mine developments and incrementally increase tin supply into an expected widening market deficit.
5. At this point in time, the Company believes that an outright sale transaction would not deliver the future value it intends to unlock through ongoing resource development and production growth.

Qualified Person

Mr. Clive Brown, Pr. Eng., B.Sc. Engineering (Mining), is a qualified person as defined in National Instrument 43-101 and has reviewed and approved the scientific and technical information contained in this news release. He is a Principal Consultant and Director of Bara Consulting Pty Limited, an independent technical consultant to the Company.