Erin Ventures Announces Positive Preliminary Economic Assessment for Piskanja Boron Project US$524.9 Million NPV10 (post-tax), 78.7% IRR (post-tax), 12-Month Capex Payback

2022-06-28

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VICTORIA, BC / ACCESSWIRE / June 28, 2022 /Erin Ventures Inc.("Erin" or the "Company")(TSXV:EV) and their partner Temas Resources Corp. [CSE: TMAS] are pleased to report positive results of an Independent Technical Report and Preliminary Economic Assessment ("PEA") for the Piskanja boron project located in Serbia.

PEA HIGHLIGHTS

Note:

All values in this news release are reported in U.S. dollars unless otherwise noted Assumed price/t (colemanite 40% B2O3) for LOM: US$500 Assumed price/t (boric acid, technical grade) for LOM: US$700 Units expressed in metric tonnes

MINERAL RESOURCES

The basis for the PEA is the Mineral Resource Estimate prepared by Prof. Miodrag Banje&scaron;ević PhD. P.Geo, EurGeol.

The updated Mineral Resource Statement generated for the Piskanja Project is as follows:

| Resource Category | Geological Resource

(tonne) | B2O3% | Contained B2O3 (tonne) | | Measured | 1,391,574 | 35.59 | 495,251 | | Indicated | 5,478,986 | 34.05 | 1,865,677 | | Measured + Indicated | 6,870,560 | 34.36 | 2,360,928 | | Inferred | 284,771 | 39.59 | 112,732 |

Reported at a cut-off grade of 12 percent B2O3, at a minimum mining thickness of 1.2 m, considering reasonable underground mining, processing and selling technical parameters and costs benchmark against similar borate projects and a selling price of US$700/tonne (boric acid) and US$500/tonne (colemanite 40% B2O3). All figures are rounded to reflect the relative accuracy of the estimates. Mineral Resources are not Mineral Reserves and do not have a demonstrated economic viability. The contained B2O3represents estimated contained metal in the ground and has not been adjusted for metallurgical recovery, and may have discrepancies due to rounding.

Location of Serbia and the Piskanja boron project:

SUMMARY OF PRELIMINARY ECONOMIC ASSESSMENT

The PEA was prepared independently under the supervision of Prof. Miodrag Banje&scaron;ević PhD. P.Geo, EurGeol, with contributions from Prof. Sa&scaron;a Stojadinović PhD. (mining engineer). The PEA was prepared in accordance with the requirements of National Instrument 43-101 and is based on the Mineral Resource Estimate for Piskanja with an effective date of June 24, 2022 (see "Mineral Resource Estimate" above).

ECONOMICS

Project economics were estimated assuming a constant price of US$500/t for sales-grade colemanite (40% purity) and US$700/t for boric acid. The PEA will present a complete list of assumptions. Capital and operating cost estimates were prepared based on current and expected long-term pricing assumptions and to a PEA level +/- 35% level of accuracy.

In summary, the Project has a post-tax LOM net project cashflow (pre-finance) of some US$1.21 billion which returns a post-tax NPV (10%) of US$524.9 million and an IRR of 78.7%. The following table presents the summary LOM cash flow resulting from the Technical Economic Model.

| Project Cashflow | US$ Millions | | Gross Revenue | 2,016.8 | | Deductions | 106.7 | | Net Revenue | 1,910.1 | | Operating Costs | 449.2 | | Project Capital | 79.9 | | Sustaining Capital | 50.8 | | Closure Cost | 15.0 | | Project Cashflow | 1,315.1 | | Working Capital | 0 | | Corporation Tax | 101.1 | | | | | Net Project Cashflow (post-tax) | 1,214.0 |

SENSITIVITIES

Discount Rate

The following table shows the pre- and post-tax NPVs at varying discount rates.(USD'000). The base case discount rate of 10% returns a NPV of US$553.9M pre-tax and US$524.9M post-tax.

| Discount Rate | Pre-Tax NPV (USD‘000) | Post-Tax NPV (USD‘000) | | 5% | 831,083 | 777,955 | | 8% | 647,789 | 610,987 | | 10% (base case) | 553,917 | 524,893 | | 12% | 476,926 | 453,909 | | 15% | 385,467 | 369,049 |

The following table shows the effect on the post-tax NPV10 at varying revenue, opex, capex, and material price levels (from -50% to +50%):

| Sensitivities: Post Tax NPV at 10% discount rate

(USD'000,000) | | | | | | | | | | | | | | -50% | -40% | -30% | -20% | -10% | 0% | 10% | 20% | 30% | 40% | 50% | | Revenue | 121 | 201 | 282 | 363 | 444 | 525 | 606 | 687 | 767 | 848 | 929 | | Opex | 616 | 598 | 580 | 561 | 543 | 525 | 507 | 488 | 470 | 452 | 434 | | Capital | 562 | 555 | 547 | 540 | 532 | 525 | 517 | 510 | 503 | 495 | 488 | | Colemanite Price | 148 | 223 | 299 | 374 | 450 | 525 | 600 | 676 | 751 | 826 | 902 | | BA Price | 497 | 503 | 508 | 514 | 519 | 525 | 530 | 536 | 541 | 547 | 552 |

The following table illustrates the projected Post-tax Net Present Value ("NPV") sensitivity of the Piskanja project to Operating Cost and Capital Cost variations:

| NPV (USD'000) | | OPEX | | | | | | | | | | | | | | -50% | -40% | -30% | -20% | -10% | 0% | 10% | 20% | 30% | 40% | 50% | | CAPEX | -50% | 653,233 | 634,994 | 616,754 | 598,515 | 580,276 | 562,036 | 543,797 | 525,557 | 507,318 | 489,079 | 470,839 | | -40% | 645,805 | 627,565 | 609,326 | 591,086 | 572,847 | 554,608 | 536,368 | 518,129 | 499,889 | 481,650 | 463,411 | | | -30% | 638,376 | 620,136 | 601,897 | 583,658 | 565,418 | 547,179 | 528,940 | 510,700 | 492,461 | 474,221 | 455,982 | | | -20% | 630,947 | 612,708 | 594,468 | 576,229 | 557,990 | 539,750 | 521,511 | 503,271 | 485,032 | 466,793 | 448,553 | | | -10% | 623,519 | 605,279 | 587,040 | 568,800 | 550,561 | 532,322 | 514,082 | 495,843 | 477,603 | 459,364 | 441,125 | | | 0% | 616,090 | 597,851 | 579,611 | 561,372 | 543,132 | 524,893 | 506,654 | 488,414 | 470,175 | 451,935 | 433,696 | | | 10% | 608,661 | 590,422 | 572,183 | 553,943 | 535,704 | 517,464 | 499,225 | 480,986 | 462,746 | 444,507 | 426,267 | | | 20% | 601,233 | 582,993 | 564,754 | 546,514 | 528,275 | 510,036 | 491,796 | 473,557 | 455,318 | 437,078 | 418,839 | | | 30% | 593,804 | 575,565 | 557,325 | 539,086 | 520,846 | 502,607 | 484,368 | 466,128 | 447,889 | 429,649 | 411,410 | | | 40% | 586,375 | 568,136 | 549,897 | 531,657 | 513,418 | 495,178 | 476,939 | 458,700 | 440,460 | 422,221 | 403,981 | | | 50% | 578,947 | 560,707 | 542,468 | 524,229 | 505,989 | 487,750 | 469,510 | 451,271 | 433,032 | 414,792 | 396,553 | |

The table below illustrates the Post-tax NPV variability with changing Operating Cost and Revenue estimates:

| NPV (USD'000) | | Revenue | | | | | | | | | | | | | | -50% | -40% | -30% | -20% | -10% | 0% | 10% | 20% | 30% | 40% | 50% | | OPEX | -50% | 211,797 | 292,656 | 373,514 | 454,373 | 535,231 | 616,090 | 696,948 | 777,807 | 858,665 | 939,524 | 1,020,382 | | -40% | 193,558 | 274,417 | 355,275 | 436,134 | 516,992 | 597,851 | 678,709 | 759,568 | 840,426 | 921,285 | 1,002,143 | | | -30% | 175,319 | 256,177 | 337,036 | 417,894 | 498,753 | 579,611 | 660,470 | 741,328 | 822,187 | 903,045 | 983,904 | | | -20% | 157,079 | 237,938 | 318,796 | 399,655 | 480,513 | 561,372 | 642,230 | 723,089 | 803,947 | 884,806 | 965,664 | | | -10% | 138,840 | 219,698 | 300,557 | 381,415 | 462,274 | 543,132 | 623,991 | 704,849 | 785,708 | 866,566 | 947,425 | | | 0% | 120,600 | 201,459 | 282,317 | 363,176 | 444,034 | 524,893 | 605,751 | 686,610 | 767,468 | 848,327 | 929,185 | | | 10% | 102,361 | 183,220 | 264,078 | 344,937 | 425,795 | 506,654 | 587,512 | 668,371 | 749,229 | 830,088 | 910,946 | | | 20% | 84,081 | 164,980 | 245,839 | 326,697 | 407,556 | 488,414 | 569,273 | 650,131 | 730,990 | 811,848 | 892,707 | | | 30% | 65,780 | 146,741 | 227,599 | 308,458 | 389,316 | 470,175 | 551,033 | 631,892 | 712,750 | 793,609 | 874,467 | | | 40% | 47,480 | 128,490 | 209,360 | 290,218 | 371,077 | 451,935 | 532,794 | 613,652 | 694,511 | 775,369 | 856,228 | | | 50% | 29,324 | 110,201 | 191,120 | 271,979 | 352,837 | 433,696 | 514,555 | 595,413 | 676,272 | 757,130 | 837,989 | |

A more complete set of sensitivity tables are available within the PEA.

Tim Daniels, President of Erin Ventures commented on the PEA results:

"The robust results in the Piskanja PEA confirm what we have always believed - that Piskanja has the potential to be amongst the most impressive boron properties globally. Piskanja joins a very small group of study-backed, development stage boron assets in the world. Piskanja has several attributes that make it attractive for development including stout economics, strong value metrics and the potential for rapid returns with low capital investment. Additionally, Piskanja's projected low operating cost enhances the likelihood of profitability even in the weakest of boron market scenarios. The results of the PEA, combined with the potential for resource expansion, excellent existing local infrastructure, and a favourable mineral mix, make it a truly outstanding and unique project.

MINING

The geometry and depth of the mineralisation identified at Piskanja lends itself to an underground mining method. It is envisaged that mining will be by cut and fill method and that the key underground infrastructure will comprise:

twin access declines from surface to the deposit: i) Main Haulage Decline ("MHD") from surface to the floor of Mineralized Zone 1 and ii) Main Ventilation Decline ("MVD") from surface to the roof of Mineralized Zone 3; anunderground spiral ramp connecting MHD and MVD and enabling access to all levels; a shaft connecting MHD and MVD to serve as an ore pass and temporary stockpile (if needed); footwall drives located belowseam horizons of Mineralized Zone 1, Mineralized Zone 2 and Mineralized Zone 3; level drives and ventilation connections between three footwall drives.

The PEA envisages a Run of Mine (ROM) average annual tonnage of 307,956 tonnes to produce some 261,821 tonnes of sale grade colemanite and 25,000 tonnes of boric acid for a period of 17 years.

Excavation is currently proposed by mechanical cutting using Continuous Miners ("CM"). The rationale of the application of mechanical cutting, as opposed to drill and blast operations, is the need to minimize ground vibrations which may affect the residential structures and cause annoyance to the residents of the nearby village, Korlace. Similarly, the application of any caving mining methods, or any mining methods which could cause ground subsidence is, at present moment, excluded from further considerations.

Material mined by the CMs would be hauled by shuttles or battery haulers to the nearest pass/bin and fed to the panel conveyor at the main haulage horizon. The panel conveyor would then haul the mined material to the main ore pass/ore bunker. The main ore pass has two functions: i) to reduce the mined material tonnes to the Main Haulage Decline and feed it to the Main belt conveyor and ii) to serve as a temporary ore storage/ore stockpile. Once fed to the main belt conveyor, the material is conveyed to the surface and fed to the ore processing system.

In order to achieve an overall planned mining recovery of 75% and ensure the stability of excavated spaces, it will be necessary to apply solidifying material for backfill and further geotechnical assessment including an assessment of the geometry, rock strength, and backfill characteristics will be required.

PROCESSING

All ROM production is to be fed to the Colemanite Plant for colemanite production with the aim of upgrading mined materials to desired concentrate levels of B2O3. A constant product grade of 40% B2O3and a tails grade of 7.5% B2O3 is planned.

The operating plan calls for the production of both colemanite concentrate and boric acid, the latter at a rate of 25 ktpa, and the former at a rate of approximately 250 ktpa. This production scenario has been modelled according to the process route shown in block form. It should be noted that further metallurgical test work is required to finalize the process flowsheet. However, the flowsheet for B2O3beneficiation is well documented, shows that the process utilizes "off the shelf" technology, and is in fact commonly deployed in Turkish boron mines.

According to available data from Turkey, concentration of colemanite is carried out by crushing and grinding, washing and classification in the size fractions. For larger size fractions, colemanite concentrate is produced through attrition tumbling and hand sorting, while for finer size fractions (-6 mm), attrition scrubbing and classification are carried out. At the Emet Mine in Turkey, a colemanite concentration plant (with a capacity of 600,000 tons per year) processes colemanite feedstock averaging 27% B2O3to produce 300,000 tons of concentrate averaging 43% B2O3using the method described above.

The production of boric acid is also a well-documented process with readily available technology used by several producers globally.

CAPITAL and OPERATING COSTS

A breakdown of the capital and operating costs used in the economic analysis is presented in the tables below.

Project Capital Costs [expended over a 24 month development period]

| Project Capital (USD'000) | Base Cost | Contingency | Total | | | | | | | Mining | 39,400 | 11,820 | 51,220 | | Processing - Colemanite | 2,000 | 600 | 2,600 | | Processing - Boric Acid | - | - | - | | Infrastructure | 16,250 | 4,875 | 21,225 | | Tailings | 3,814 | 1,144 | 4,957 | | Total | 61,464 | 18,439 | 79,903 |

Unit Operating Costs (USD/t)

| | Colemanite | Boric Acid | | Mining | 70.8 | - | | Processing - Colemanite | 3.6 | 6.4 | | Processing - BA Plant | 1.7 | 205.8 | | Tailings/Waste Disposal | 0.1 | 0.5 | | Infrastructure | 4.3 | 6.4 | | G&A | 23.5 | 34.6 | | Royalty | 25.0 | 35.0 | | Sales/Marketing | 1.5 | 1.5 | | Tax | 23.9 | 50.4 | | Unit Costs per tonne of production | 154.5 | 340.7 |

Michael Dehn, CEO of Temas Resources, partner with Erin Resources on the Piskanja Project, added:

"These positive economics demonstrate that the Piskanja project should be a favourable source of borates for the European markets. Turkey currently provides 98% of the EU's supply of borate. Many companies have been really challenged on the sourcing of raw materials and it is beginning to change their thinking in how they set their sourcing policy going forward. This builds towards reduced environmental impact as we look to aid in the creation of a greener economy through the strategic development of critical metals. The project's free-cash flow of $1.3 billion really demonstrates the great potential that I first saw when looking at this project several years ago. The PEA will provide the guidance we are looking for to advance the project to the next steps. It will also form the basis for the submittal as we complete the required "Elaborate" document to the Serbian government."

Tim Daniels of Erin Ventures continues: "Piskanja is well positioned to benefit from, and contribute to, global decarbonization efforts and the evolving global economy, where reducing environmental impacts and contributions to preventing climate change are increasingly important. Boron is considered a critical, irreplaceable, and expanding strategic driver of decarbonization through reduction of emissions, enabling clean power, helping secure the food supply chain, and providing nutrients in diets for healthy living.

The PEA is the culmination of years of hard work by the team at Erin Ventures, our partners, and our stakeholders. I personally thank all involved for their efforts and support. While the PEA is a significant milestone for us, we are looking forward to the next developments. We have commenced the permitting process, with the data from the PEA forming the backbone of a submission to "certify the Piskanja resource" as an important step in a mine license application process."

KEY CONCLUSIONS

Exploration activities undertaken by Erin to date, in conjunction with the results of previous exploratory works, have outlined a significant boron minerals deposit which, in the opinion of the PEA Author, justifies further activities. Future activities should be undertaken in order to assess the potential of project development and, ultimately, mine construction.

The PEA reports a Mineral Resource estimate for the Project which includes a combined Measured and Indicated Mineral Resource of 6.87 Mt with a mean grade of 34.36% B2O3and an Inferred Mineral Resource of 0.28 Mt with a mean grade of 39.59% B2O3.

The report shows the potential of the project by demonstrating a post-tax NPV for the Project at a 10% discount rate of USD524 M and an IRR of 79%. If the economic assessment was based solely on Measured and Indicated Mineral Resources, the NPV10 would have decreased to USD488M. However, if 8% is used as a discount rate for NPV calculation the NPV would increase to USD610M. In spite of the fact that the Inferred Mineral Resources do not have a significant impact on NPV presented in the PEA, it should be noted that Inferred Mineral Resources are considered speculative geologically.

It should be noted that there is a significant amount of future work to be undertaken in order to mitigate the risks before entering the mine construction phase. The authors of this PEA recommended appropriate actions and activities needed to properly assess and address these associated risks.

A future work program will be discussed with Erin in order to define the necessary steps towards the PFS stage, FS stage and ultimately, the mine construction phase in accordance with Serbian regulatory requirements and international standards, but also to define a set of decision-making milestones to assist in determining that the advancement of the project continues to be warranted.

RECOMMENDATIONS

Recommendations for work that may potentially lead to further improvements to the Project include:

Expansion and improvement of the existing Piskanja Mineral Resource Estimate through further exploration and close-spaced drilling in the two unbounded directions Improvement and refinement of metallurgical recoveries and processes through further metallurgical test work Continued evaluation of different project operating scales ("right sizing") and optimization of mine plans Evaluation and incorporation of existing technologies to improve sustainability and reduce environmental impact Additional test work to define geotechnical parameters of the rock mass Additional modelling or model refining (geotechnical, structural, resource, economical) as an aid to appropriate mine design A comprehensive environmental impact assessment A demonstration of mitigation measures

CAUTIONARY NOTE

The PEA summarized in this news release is considered preliminary in nature, contains numerous assumptions and includes Inferred Mineral Resources that are considered too speculative, geologically, to have the economic considerations applied to them that would enable them to be categorized as Mineral Reserves. There is no certainty that the results of the PEA will be realized. No Mineral Reserves have been estimated for Piskanja. Mineral Resources are not Mineral Reserves and do not have demonstrated economic viability. Inferred Mineral Resources are that part of the Mineral Resource for which quantity and grade or quality are estimated on the basis of limited geologic evidence and sampling, which is sufficient to imply but not verify grade or quality continuity. Inferred Mineral Resources may not be converted to mineral reserves. It is reasonably expected, though not guaranteed, that the majority of Inferred Mineral Resources could be upgraded to Indicated Mineral Resources with continued exploration. Mineral Resources are captured within an optimized mine plan (within the constraints of a PEA) and meet the test of reasonable prospects for economic extraction.

Earlier from Boron One Holdings Inc.

IIROC Trading Halt - EV 2022-06-27
Erin Ventures Reports AGM Results 2022-03-16
Erin Ventures and Temas Resources Report Progress on the Piskanja Project PEA 2022-03-08

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