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Vast Resources plc / Ticker: VAST / Index: AIM / Sector: Mining

October 31, 2022

Vast Resources plc
(“Vast” or “Company”)

Shareholder Q&A

AIM-listed mining company, Vast Resources plc, has provided the market with answers to a number of questions submitted by shareholders during its recent shareholder meeting on October 24, 2022 I am happy that I can.

1. Were GM’s Oct. 24, 2022 convenings (calling for increased stock issuance authority) as a result of other operational issues that were not disclosed by the board prior to GM’s vote?

All price sensitive information was released prior to the general meeting.

2. Why is the board asking for “exactly 40%” or approximately 652 million shares of the currently issued stock authorization (i.e. £651,857 at face value)?

This decision was made based on monetary value at nominal par rather than on a specific percentage. The Company has provided percentage information to provide shareholders with the relative size associated with their shareholdings.

3. Are you planning to introduce a board? Stock Hurdle (SPH) Will each new share issue under the proposed authority allow the company to take advantage of the new share issue at the optimal market price over the long term?

Issuing new shares at a premium in the current economic environment prevents us from raising capital, which is ultimately not in our best interest.

Four. How can you mismanage cash flow projections in such a short period of time?

Although we exercise good control and forecasting of our cash flows, there are, of course, certain things outside of our control that affect our forecasts, such as availability of shipments. The Company is in a period of high capital expenditures due to increased production at the Vita Prai Polymetal Mine in Romania (“Vita Prai”), and cash flow deviations such as delays in the shipment of concentrates have impacted liquidity requirements. occurs.

Five. If you can’t manage your assets in a four-month window, how can your board be trusted for the long term?

This question was submitted before the company released third quarter production data at its Baita Plai Polymetallic mine. As part of its third quarter production announcement, the company announced that it has ramped up production by utilizing the Mantis rig. This significantly increased the mining volume and the quality of the concentrate produced, from an average of 16% in July and August to over 22% with a peak of 28.5%. September 2022 was Baita Plai’s most successful month for underground mining, producing 7,900 tonnes of ore, accounting for 50% of Q3 2022 underground mining.

Board of Directors/Management Team

6. Given the poor performance to date and current market conditions, why hasn’t company management cut salaries by 60-70% as other companies are doing for stock options (such as Block Energy)? did you

The entire board of directors is obligated to pay significant deferred salaries. We will discuss these in more detail in future annual reports. The Board continues to defer salaries after the reporting period.

7. On what basis are salaries set? What is the method of compensation?

Salaries are set by market-tested benchmarks. Our previous benchmark study showed that board compensation is set in the lower quartile compared to companies of similar size and stage.

8. Why does management only own 20,138,435 “non-significant” shares, which is about 1.24% of the company’s common stock (Andrew Prelea alone owns over 16 million shares)?

Management purchased its current holdings at significantly higher prices, and the current holdings have been held at significant losses and have been in a period of closure for most of this year.

9. Why isn’t management buying more stock on the open market?

In accordance with FCA regulations, management is currently in a period of closure and cannot purchase shares.

Ten. Even if they don’t want to buy shares on the open market, why wouldn’t management substitute stock options for salary to show confidence in the company’s future?

As noted above, in accordance with FCA regulations, management is currently in a period of closure and cannot purchase shares.

11. Could the board explain the lack of diversity on the board (i.e. ethnic minorities and lack of women), thus whether this results in lack of management performance and whether the two are interrelated.

The Board of Directors maintains an open and inclusive hiring policy at all hiring levels within the company. Our company considers ability, experience, and aptitude at the time of hiring when hiring. Diversity remains our focus.


12. I think one of the main reasons for the lack of funding is the delayed start to the long haul. stoppedIt made me wonder if the first Mantis drills were in use on the production face in early July. Why did it take so long to start the long hole? stopped?

According to the announcement of 21 October 2022, production at Baita Plai in July and August 2022 was affected by the requirement to change the working surface to allow the implementation of Long Hole Stoping . The long hole stop’s initial downward drilling strategy was then adjusted to level 17 vertical drilling to reduce drill rod deflection and this effective drilling strategy is still maintained today.

13. Indeed, one of the main advantages of the mechanized approach is the reduction in headcount. So why did the workforce increase from his 280 in June to his 360 today, what are these people doing and what are the additional costs?

As announced, the mine is currently operating in four independent high-productivity mining areas utilizing the Long Haul Stope methodology, plus production on two working planes using room and pillar mining. is continuing. Therefore, underground production is expected to continue growing until the first quarter of 2023. The completion of the third spiral is intended to further increase underground ore production and secure the life of the mine from Q2 2023. Spiral development requires additional labor on top of the requirements to operate the Mantis rig. Additional activities are planned to keep production ramping up.

14. Can the board confirm a staff strike involving 300 employees and was this material disclosure compliant with the FCA and AIM listing rules on disclosure and transparency?

The staff strike was an illegal strike of 100 workers, which was quickly disbanded and had no negative impact on Baita Plai’s production levels. No material disclosure was required. The events mentioned in the media were neither true nor correct.

15. What’s the latest in molybdenum flotation line Installation complete with Vitaply; is molybdenum concentrate Current productEd?

Molybdenum production continues at Baita Plai. We will update the market when we have achieved sufficient volume for commercial sale.


For more information, please visit www.vastplc.com or contact us at:

Vast Resources plc
Andrew Prairie (CEO)
Andrew Hall (CCO)

+44 (0) 20 7846 0974

Beaumont Cornish – Financial & Designated Advisor
Roland Cornish
James Biddle

+44 (0) 20 7628 3396

Axis Capital Markets Limitedjoint broker
Kamran Hussein

+44 (0) 20 3206 0320

St. Brides Partners Limited
Susie Geriher / Charlotte Page

+44 (0) 20 7236 1177


Vast Resources plc is a UK AIM listed mining company with mines, development projects and mining rights in Romania, Tajikistan and Zimbabwe.

In Romania, we are focused on speeding up quality projects by resuming production at previously producing mines.

Our Romanian portfolio includes a 100% stake in Vast Baita Plai SA’s production polymetallic mine, located in the Apseni Mountains of Transylvania, the region with the largest polymetallic mines in Romania. The mine has JORC compliant reserve and resource reports and supports an initial mine production life of approximately 3-4 years, with total mineral resources at the site equivalent to 15,695 tonnes of copper and an additional 1.8-3.00 million tonnes of copper. There is an exploration target of 10,000 tons. We are currently working to confirm an expanded exploration target of up to 5.8 million tonnes.

The company also owns Manaila Polymetallic Mine in Romania and is about to restart production after a period of care and maintenance. The Company has also been granted the Manila Carlibaba Extended Development License, which allows it to review the development of mineral resources within the larger Manila Carlibaba licensed area.

Vast is interested in a joint venture that will provide a portion of the proceeds from the Takob Mine treatment facility in Tajikistan. The 100% funded Tacob Mine Opportunity provides Vast with a 12.25% royalty on all sales of non-ferrous concentrates and other metals produced.

In Zimbabwe, we are focusing on the commencement of a community diamond concession at Marange Diamond Fields and a joint venture mining contract at Chiazwa.

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