Deal marks another key step towards unlocking value from Centaurus’ extensive Brazilian iron ore portfolio Centaurus Metals is pleased to advise that it has granted an option over the Conquista Iron Ore Project in south‐east Brazil to interests associated with the privately‐owned Brazilian mining group, Ecosinter ‐ Indústria de Beneficiamento de Resíduos Ltda , paving the way for the next phase of exploration and potential future development of the Conquista Project.

The option agreement  marks another milestone in Centaurus’ ongoing strategy to realise value from its extensive Brazilian iron ore portfolio by partnering with experienced domestic iron ore operators with the operational capability and established market connections and access to take projects into production.

Under the terms of the Agreement, the Ecosinter Group has paid R$200,000 (~A$85,000) for a 12 month option over the Conquista Project, will undertake a specified exploration program which has been designed in conjunction with Centaurus’ technical team (“Qualifying Program”) and will keep the tenements in good standing. It is estimated that the Qualifying Program will cost in the order of R$1.15 million (~A$500,000) over the 12 month option period. The Ecosinter Group may exercise the option at any time during the 12 month option period though it is currently expected that the Qualifying Program will be completed first with such work to include approximately 1,000m of drilling. All exploration work undertaken in connection with the Qualifying Program will be managed by Centaurus during the option period.

If the Ecosinter Group elects to exercise the option, it will grant a 12% gross production royalty to Centaurus on future production from the Conquista Project tenements (“Royalty”), with an amount of R$3 million (~A$1.25 million) being immediately payable on exercise by way of non‐refundable Royalty pre‐payment.

The option may be extended for a further 6 months at the end of the original option period if the Ecosinter Group has met the Qualifying Program requirements and pays a further option fee of R$200,000 (~A$85,000). If the Ecosinter Group decide not to exercise its option to the Conquista Project by the end of the option period, it will not retain any rights in relation to the Conquista Project and all technical data will be retained by Centaurus.

Centaurus’ Managing Director, Mr Darren Gordon, said the option agreement with Ecosinter highlighted the ongoing value and interest in the Company’s iron ore assets. “We are pleased to have reached agreement with the Ecosinter Group to take the Conquista Project forward, particularly given that they will be operating in the immediate region and that we have an existing relationship from the previous transaction we concluded with them in 2016 on the nearby Candonga DSO Project,” he said