TIDMEST

RNS Number : 1713V

East Star Resources PLC

08 August 2022

THIS ANNOUNCEMENT CONTAINS INSIDE INFORMATION FOR THE PURPOSES OF ARTICLE 7 OF REGULATION 2014/596/EU WHICH IS PART OF DOMESTIC UK LAW PURSUANT TO THE MARKET ABUSE (AMENDMENT) (EU EXIT) REGULATIONS (SI 2019/310) ("UK MAR"). UPON THE PUBLICATION OF THIS ANNOUNCEMENT, THIS INSIDE INFORMATION (AS DEFINED IN UK MAR) IS NOW CONSIDERED TO BE IN THE PUBLIC DOMAIN.

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8 August 2022

East Star Resources Plc

("East Star" or the "Company")

New Licence Awarded at Talairyk Rare Earths Project, Kazakhstan

East Star Resources Plc (LSE:EST), the Kazakhstan-focused gold, rare earths and copper explorer, is pleased to announce the award of a new exploration licence comprising 59 blocks ("Talairyk 1") at the Talairyk Heavy Rare Earth Elements ("HREE") Project in the Kostanay region of Kazakhstan (the "Project"), into which the Company is farming in for up to 90%.

Highlights:

   --    Talairyk 1 covers 134.7 sq km and is contiguous with the 10 sq km Talairyk Licence 

-- Talairyk 1 is highly prospective for Ionic Adsorption Clay (IAC) hosted heavy rare earth elements:

o Geological mapping at 1:50,000 scale shows granites the same as those generating the Talairyk HREE deposit (19,962 tonnes of contained Total Rare Earth Oxides (TREO) averaging 786g/t up to 58.6m thick)

o Historic grab samples within Talairyk 1 contain pathfinder elements

-- Talairyk 1 will be included in the farm-in agreement with Phoenix Mining announced on 18 May 2022, with East Star expenditure on Talairyk 1 also contributing towards the agreed earn-in milestones

Alex Walker, East Star CEO, commented:

"Rare earth elements are classed by the UK as representing the highest global supply risk and the third highest UK economic vulnerability. We are therefore very pleased to extend our HREE footprint in the region by over tenfold and secure access to additional prospective ground for IAC hosted minerals - the same geology as the rare earths of South China on which the world currently substantially depends.

We will immediately begin the application process to commence field work so the exploration programme can align with that of the Talairyk deposit, where we aim to be drilling in H1 next year.

The size of the Talairyk deposit is already significant and could provide the scale required for feasibility work, however, considering the demand growth and lack of security of supply for rare earth elements, coupled with the location providing direct rail access to Europe via the Caspian Sea, growing the resource could make this deposit globally strategic."

Figure 1 light pink granites map on a 1:50,000 scale provide the best indicator for a potential continuation of the Talairyk orebody

Ionic Adsorption Clays (IACs)

Potentially economically extractible IACs are rarely found outside of South China with only a few in South East Asia in production today and exploration/development projects in Australia, Brazil, Chile and Uganda. IAC deposits are comparatively rich in HREEs and are a primary source of China's and therefore the world's HREE production. IAC deposits offer several advantages to the more commonly occurring hard rock REE deposits where the rare earths are mostly hosted in complex mineral associations. These advantages include:

o Lower CAPEX: Deposits are shallow and free dig clays, keeping the footprint small, the pre-strip ratio low and with simple, conventional machinery and material handling methods. Processing generally requires no grinding or milling, removing these costly and energy intensive mills from the processing circuit

o Lower OPEX: Generally, the deposits are amenable to standard leaching techniques with weak electrolyte solutions, such as ammonium sulphate ( widely used as a fertilizer for alkaline soils) and sodium or magnesium chloride

o Negligible radioactivity: Radioactive elements such as uranium and thorium occur commonly in hard rock REE projects. In IACs, the radioactive elements have been mostly removed by the weathering process along with the lower value light rare earth elements

o High-value basket of product: The heavy rare earth element market is small and commercial production is restricted to very few companies while the demand in the high-tech industry has expanded

HREE Supply, Demand and the UK Critical Minerals Strategy

Rare Earth Elements (REEs) are required for several high-tech devices like high performance magnets for wind turbines or lighting products for instance energy saving bulbs. Especially, the more valuable Heavy Rare Earth Elements (HREEs) like Dysprosium and Terbium are a critical resource.

On 22 July 2022, the UK Government published its first ever critical minerals strategy that aims to improve the security of supply of critical minerals with the intention to improve the resilience of critical minerals supply chains. Key points from the report, important to East Star Resources, include:

1. Collaborate with international partners:

a. Diversify supply across the world so it becomes more resilient as demand grows

b. Support UK companies to participate overseas in diversified responsible and transparent supply chains

c. Develop diplomatic, trading and development relationships around the world to improve the resilience of supply to the UK

2. Enhance international markets:

a. Boost global environmental, social and governance performance (ESG), reducing vulnerability to disruption and levelling the playing field for responsible businesses

b. Develop well-functioning and transparent markets, through improved data and traceability

c. Champion London as the world's capital of responsible finance for critical minerals

Historical Exploration

East Star Resources continues to collect additional data on the awarded licences and the region generally and will keep the market updated with further progress ahead of drilling which is targeted for H1 2023.

For further information visit the Company's website at www.eaststarplc.com , or contact:

East Star Resources Plc

Alex Walker, Chief Executive Officer

Tel: +44 (0)20 7390 0234 (via Vigo Consulting)

Peterhouse Capital Limited (Corporate Broker and Placing Agent)

Duncan Vasey / Lucy Williams

Tel: +44 (0) 20 7469 0930

Vigo Consulting (Investor Relations)

Ben Simons / Tara Benniman

Tel: +44 (0)20 7390 0234

About East Star Resources Plc

East Star Resources is focused on the discovery and development of gold, rare earth, and copper deposits in Kazakhstan. With an initial five licences covering 1,442 km2 in three mineral rich districts, East Star is undertaking an intensive exploration programme, applying modern geophysics to discover minerals in levels that were not previously explored. The Company also intends to further expand its licence portfolio in Kazakhstan. East Star's management are based permanently on the ground, supported by local expertise, and joint ventures with the state mining company.

Follow us on social media:

LinkedIn: https://www.linkedin.com/company/east-star-resources/

Twitter: https://twitter.com/EastStar_PLC

The person who arranged for the release of this announcement was Alex Walker, CEO of the Company.

Competent Persons Statement

Information and data presented within this announcement has been compiled by Mr Azamat Bizhanov, a Member of the Australian Institute of Geoscientists ("MAIG"). Mr Bizhanov is the Exploration Manager for East Star Resources Plc and has sufficient experience, which is relevant to the style of mineralisation, deposit type and to the activity which he is undertaking to qualify as a Competent Person defined by the 2012 Edition of the Australasian Code for Reporting Exploration Results, Mineral Resources and Ore Reserves (the "JORC" Code). This includes 10 years of Mining, Resource Estimation and Exploration relevant to the style of mineralisation.

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END

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