Cornish Metals reaches agreement to sell a 1% NSR royalty on the Sleitat Tin-Silver project in Alaska to Electric Royalties Ltd

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VANCOUVER, British Columbia, March 10, 2022 (GLOBE NEWSWIRE) — Cornish Metals Inc. (TSX-V/AIM: CUSN) (“Cornish Metals” or the “Company”), a mining exploration and development company focused on its tin and copper projects in Cornwall, UK, is pleased to announce that it has entered into an agreement, through a wholly-owned subsidiary of the Company, to sell a 1% net smelter return (NSR) royalty on its Sleitat tin-silver project in Alaska to Electric Royalties Ltd. (TSX-V:ELEC / OTCQB:ELECF) for the following consideration:

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  • 1,000,000 ordinary shares of Electric Royalties Ltd (“Counterpart Shares”)
  • C$100,000 in cash

Upon issuance upon closing of the transaction, the Consideration Shares will be subject to a voluntary lock-up agreement whereby 50% of the Consideration Shares will be subject to a six-month hold period and the balance subject to a detention for one year.

Completion of the transaction referred to herein is subject to completion of due diligence, TSX Venture Exchange approval and other customary conditions.

ABOUT CORNISH METALS

Cornish Metals completed the acquisition of the South Crofty tin and United Downs copper/tin projects, together with additional mineral rights located in Cornwall, UK, in July 2016 (see company press release dated July 12, 2016). The additional mineral rights cover an area of ​​approximately 15,000 hectares and are spread throughout Cornwall. Some of these mining rights cover former mines that were historically mined for copper, tin, zinc and tungsten.

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The South Crofty project covers the former producing South Crofty tin mine located below the towns of Pool and Camborne, Cornwall. The South Crofty mine closed in 1998 after more than 400 years of continuous production. Since acquiring the project in 2016, Cornish Metals has completed and released the first NI 43-101 Mineral Resources for South Crofty using the extensive archive of historical production data and more recent drilling completed between 2007 and 2013. In 2017 , Cornish Metals has carried out a preliminary economic study. Assessment that demonstrated the economic viability of reopening the mine. In addition, Cornish Metals has undertaken extensive pilot scale water treatment trials and successfully applied for and obtained the necessary environmental permits to extract, treat and discharge mine water to dewater the mine. . Building permits for the operation of the mine and the redevelopment of surface facilities have been obtained and construction of the foundations of the water treatment plant has begun. The dewatering pumps, variable speed drives and new high voltage power supply have been delivered to the site.

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An updated Mineral Resource was completed in June 2021, as summarized below:

Summary of South Crofty (JORC 2012) Mineral Resource Estimate
Region Classification Mass (‘000 tons) To note Tin content / tin equivalent (‘000 tons) Increase in tin content / tin equivalent from 2016 MRE
lower mine Indicated 2,084 1.59% Sn 33 10.2%
Inferred 1,937 1.67% Sn 32 129.8%
upper mine Indicated 277 1.01% SnEq 3 9.5%
Inferred 493 0.93% SnEq 5 8.0%

ON BEHALF OF THE BOARD OF DIRECTORS

“Richard D. Williams”
Richard D. Williams, P. Geo

Market Abuse Regulation (MAR) Disclosure

The information contained in this announcement is considered by the Company to be inside information pursuant to Article 7 of EU Regulation 596/2014 as it forms part of UK national law under the Withdrawal from the Union Act 2018 European as amended.

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Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release..

Caution Regarding Forward-Looking Statements

This press release contains “forward-looking statements”. Forward-looking statements, although based on management’s best estimates and assumptions at the time such statements are made, are subject to risks and uncertainties that could cause actual results to differ materially from those expressed or implied. understood by such forward-looking statements, including but not limited to: the completion of this NSR royalty sale transaction; risks relating to obtaining regulatory approvals; risks relating to general economic and market conditions; risks relating to the global COVID-19 pandemic and any variants of COVID-19 that may arise; risks related to the availability of financing; the timing and content of future work programs; the actual results of the proposed exploration activities; possible variations in mineral resources or grade; failure of plant, equipment or processes to perform as intended; accidents, labor disputes, title disputes, claims and limitations of insurance coverage and other mining industry risks; changes in national and local government regulation of mining operations, tax rules and regulations.

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Although Cornish Metals has attempted to identify important factors that could cause actual results to differ materially from those contained in the forward-looking statements, other factors may cause results not to be anticipated, estimated or intended. There can be no assurance that such statements will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements. Accordingly, readers should not place undue reliance on forward-looking statements. Cornish Metals disclaims any obligation or liability to update forward-looking statements except as required by law.

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