Keras Resources plc / Index: AIM / Epic: KRS / Sector: Mining

29 March 2021

Keras Resources plc ('Keras' or the 'Company')

Diamond Creek Phosphate Mine Update

Keras Resources plc, the AIM listed mineral resource company, is pleased to announce an update on progress at the Diamond Creek high-grade direct shipping ore ('DSO'), organic phosphate mine in Utah, USA ('Diamond Creek'), owned by the Company's 51% subsidiary, Falcon Isle Holdings LLC.

·    CEO Russell Lamming and COO Graham Stacey recently completed a three-week management trip in Utah, immediately after the previously announced two-week visit to Togo.

·    Encouraging results from the Falcon Isle marketing campaign over the winter period which has reinforced management's confidence that 2021 sales targets will be met.

·    COVID-19 travel restrictions, which prevented the plant manufacturer's engineer to be on site during construction, has slowed the construction timeline and the new Diamond Creek processing plant will now be commissioned in Q2 2021.

·    Due to the significant demand for both milled and granulated product Falcon Isle has extended its third-party toll treating agreements to ensure that product is available during the final stage of the plant construction.  

·    The increase in run-of-mine production during the 2020 mining campaign has ensured that there is sufficient plant feed until mining resumes in the Spring.

·    Once installed the increased plant capacity and the expected associated economies of scale will reduce the unit cost and bolster margins going forward.

Keras Resources CEO, Russell Lamming said: "The trip to Togo and Utah has been extremely constructive and has proved how important face-to-face management interaction is in our industry.  Notwithstanding the significant impact that the pandemic has had, our US team have done a great job in both maintaining operational output and building value at the Diamond Creek operation. Despite the short delay in the timetable to commissioning, I am pleased to say that management believes sales targets of 10,000 tons for 2021 remain achievable.  The demand for our range of products has been very encouraging and we are looking forward to a very busy period as we move in to Spring and the recommencement of mining operations.  We look forward to delivering further news regarding the commissioning of the processing plant and our 2021 production schedule in due course."

**ENDS**

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