Appian forms JV with Osisko Metals to develop the Pine Point zinc project

Highlights

Closing and formation of a joint venture with TSX-V listed Osisko Metals to develop the Pine Point zinc-lead project in Northwest Territories,Canada,as part of which:

Appian has purchased share capital of Pine Point Mining Limited (PPML),which holds the Pine Point Project,from Osisko Metals in exchange for a payment in the amount of C$8.3m;

Appian has subscribed for share capital of PPML in exchange for funding C$13.1m into PPML;

Appian has provided an interim loan to Osisko Metals in the amount of C$6.7m that has been converted into share capital in PPML; and

Appian has purchased shares of Osisko Metals at a price of $0.2481 per share for C$5m.

Pine Point is strongly aligned with Appian's investment strategy,expected to produce clean zinc and lead concentrates,benefitting from its strategic location in a tier-1 jurisdiction and access to international concentrate markets through existing high-quality infrastructure,including railway access

Brownfield exploration package with over 1 million meters of historical drilling providing significant resource development upside and the ability to leverage returns through mine life extensions

Transaction provides Appian active governance and board representation,allowing it to use its deep technical and strategic expertise to drive development and de-risk the project

Pine Point is Appian's third investment in the attractive zinc market,complementing its world-class portfolio of highly prospective assets located in attractive operating jurisdictions,while strengthening Appian's overall presence in Canada

LONDON,April 6,2023 -- Appian Capital Advisory LLP ("Appian" or the "Company"),the investment advisor to long-term value-focused private equity funds that invest in mining and mining-related companies,is pleased to announce that it has entered into a joint venture (the "JV") with Osisko Metals Incorporated ("Osisko Metals") to fund,develop and operate the Pine Point zinc-lead project (the "Project"),located in Northwest Territories,Canada (the "Transaction").

Michael W. Scherb,Founder and CEO of Appian,commented:

"Appian is excited to advance the development of Pine Point,a highly prospective and strategically located project in the global zinc market. Alongside the expertise of Osisko Metals,Appian's extensive technical mine development experience and substantial financial investment will help maximise the potential of Pine Point over the coming years. I look forward to a collaborative partnership with Osisko Metals,the Pine Point team and local communities to deliver value to all stakeholders."

As part of the Transaction,Appian has purchased share capital of Pine Point Mining Limited (PPML),which holds a 100% interest in the Pine Point Project,from Osisko Metals in exchange for a payment in the amount of C$8.3m and shares of Osisko Metals at a price of $0.2481 per share for C$5m. In addition,Appian has subscribed for share capital of PPML in exchange for funding C$13.1m into PPML and provided an interim loan to Osisko Metals in the amount of C$6.7m which has been converted into share capital in PPML.

The Transaction provides Appian with 25.3% of the share capital of the JV at closing. Furthermore,Appian will provide 100% of the equity funding required for the project until it has acquired an ownership interest of 60% in PPML or until a Final Investment Decision has been reached. The parties will fund any additional equity capital requirements for the project pro rata.

Prior to Appian earning into a >50% ownership,the JV's Board of Directors will comprise four Directors,Geoff Cohen (Chairman) and Adam Fisher,as nominees of Appian,and Robert Wares and Gordon Stothart,as nominees of Osisko Metals. The Chair will have the casting vote on agreed matters requiring simple majority approval and post Appian earning into a >50% ownership,the JV's Board of Directors will be comprised of five Directors of which three will be appointed by Appian (including the Chairman). The Technical and Financial Committee of PPML will follow a composition in line with the composition of the JV's Board of Directors,allowing Appian to use its deep technical expertise to bring the project into production.

The Transaction follows extensive engagement with the Osisko Metals team and is a strong fit with Appian's investment strategy:

Active board and committee representation will enable Appian to leverage its technical and strategic expertise to optimize the development of the Project

Pine Point is expected to produce clean zinc and lead concentrates and will benefit from its strategic location in a tier-1 jurisdiction and access to international concentrate markets through existing,high-quality infrastructure,including Class I railway access

Significant resource development upside and the ability to leverage returns through mine life extensions

Previously operating mine with geological database of >18,500 drill holes (>1 million meters) representing significant sunk cost

Appian's third investment in the attractive zinc market complementing its world-class portfolio of highly prospective assets located in attractive operating jurisdictions

Strengthens Appian's presence in Canada,where it has recently opened offices in Montreal and Vancouver,which remains one of the world's leading mining jurisdictions with rich mineral deposits and a robust regulatory environment

About Appian Capital Advisory LLP

Appian Capital Advisory LLP is the investment advisor to long-term value-focused private equity funds that invest solely in mining and mining-related companies.

Appian is a leading investment advisor in the metals and mining industry,with global experience across South America,North America,Australia and Africa and a successful track record of supporting companies to achieve their development targets,with a global operating portfolio overseeing nearly 6,300 employees.

Appian has a global team of 65 experienced professionals with presences in London,New York,Toronto,Vancouver,Lima,Belo Horizonte,Montreal and Perth.

For more information please visit www.appiancapitaladvisory.com,or find us on LinkedIn,Instagram or Twitter.