MOU with Valereum to Explore Tokenised Funding

The information contained within this announcement is deemed to constitute inside information as stipulated under the retained EU law version of the Market Abuse Regulation (EU) No. 596/2014 (the "UK MAR") which is part of UK law by virtue of the European Union (Withdrawal) Act 2018. The information is disclosed in accordance with the Company's obligations under Article 17 of the UK MAR. Upon the publication of this announcement, this inside information is now considered to be in the public domain.

FIRST CLASS METALS PLC

Strategic MOU with Valereum Plc to Explore Tokenised Funding for Mineral Projects

First Class Metals PLC ("First Class Metals" or the "Company"), the UK-listed exploration company focused on the discovery of economic metal deposits across its strategic footprint in Ontario, Canada, is pleased to announce that it has entered into a non-binding Memorandum of Understanding ("MOU") with Valereum Plc ("Valereum"), a market-leading digital asset infrastructure group listed on the Aquis Stock Exchange (AQSE: VLRM).

The MOU sets out a framework for both parties to evaluate the potential for applying regulated tokenisation to fund mineral exploration and development projects within First Class Metals' asset portfolio.

Pioneering a Modern Approach to Project-Level Funding

This strategic collaboration combines First Class Metals' exploration expertise and project pipeline with Valereum's innovative, regulated digital asset infrastructure to evaluate the development of a tokenised investment model for mineral exploration projects.

The initiative aims to create a digital pathway for project-level funding that:

· Enables project-level funding through SPV participation, preserving shareholder value on a non-dilutive basis for the Company's shareholders.

· Facilitating market access to global investors with direct participation into high-potential mineral resource projects.

· Utilises existing regulated legal structures to issue fully compliant tokens with KYC/AML fulfilment. 

· Supports ESG-aligned, responsible investment structures.

· Aligns with global investment trends, including the rapid expansion of the Real-World Asset ("RWA") tokenisation market, forecast to exceed US$16 trillion by 2030[1].

The parties believe this represents the first serious attempt by a UK-listed resource company to apply regulated tokenisation to the mineral exploration sector - a development that could fundamentally transform how early-stage mineral exploration projects are financed and advanced.

Specific project selection remains under review, with further announcements to follow once assets are formally identified. It is emphasised that the MOU is non-binding and exploratory in nature, and there is no certainty that any transaction, investment, or tokenisation event will ultimately occur.

By exploring the application of regulated tokenisation to mineral projects, First Class Metals and Valereum are evaluating how such models could enhance investor access, support non-dilutive capital formation, and align with the increasing emphasis on ESG-aligned financing in the resource sector.

It is emphasised that the Company remains committed to its fundamental identity as a mineral resource exploration company.

James Knowles, Chairman of First Class Metals, commented:

"This collaboration represents a bold, forward-thinking approach to unlocking the value of our highly prospective portfolio while preserving shareholder value at the PLC level. By partnering with Valereum, a recognised innovator in regulated digital assets, we are positioning First Class Metals at the forefront of responsible, modern exploration finance. This has the potential to reshape how mineral projects like ours are funded, developed, and ultimately delivered."

Pete Sekhon, Valereum Business Development commented:

"I have known James for a number of years, and when this opportunity presented itself, it made so much sense on many levels. We are excited about exploring what can be done together. This collaboration represents a pivotal moment in the evolution of both mining and blockchain. Bringing together Valereum's expertise in digital assets with FCM's high-quality exploration portfolio in Canada opens the door to a new era of capital markets access for mining. Tokenisation offers a route to unlock the value of in-ground resources in a regulated and accessible way."

For Further Information:

Engage with us by asking questions, watching video summaries, and seeing what other shareholders have to say. Navigate to our Interactive Investor hub here:

https://fcm-l.investorhub.com/link/MP7o0P

For further information, please contact:

James Knowles, Executive Chair & Managing DirectorEmail: [email protected] Tel: 07488 362641

Marc J Sale, CEOEmail: [email protected] Tel: 07711 093532

Novum Securities Limited (Financial Adviser)David Coffman Website: www.novumsecurities.comTel: (0)20 7399 9400

Axis Capital Markets (Broker)Lewis Jones Website: Axcap247.comTel: (0)203 026 0449

First Class Metals PLC - Background

First Class Metals listed on the LSE in July 2022 and is focused on metals exploration in Ontario, Canada which has a robust and thriving junior mineral exploration sector. In particular, the Hemlo 'camp' near Marathon, Ontario is a proven world class address for gold exploration, featuring the Hemlo gold deposit operated by Barrick Mining (>23M oz gold produced), with the past producing Geco and Winston Lake base metal deposits also situated in the region.

FCM currently holds 100% ownership of seven claim blocks covering over 250km² in north west Ontario. A further three blocks are under option and cover an additional 30km2.FCM is focussed on exploring for gold, but has base metals and critical metals mineralisation. FCM is maintaining a joint venture with GT Resources on the West Pickle Lake Property a drill-proven ultra-high-grade Ni-Cu project.

The flagship properties, North Hemlo and Sunbeam, are gold focussed. North Hemlo has a significant discovery in the Dead Otter trend which is a discontinuous 3.5km gold anomalous trend with a 19.6g/t Au peak grab sample. This sampling being the highest known assay from a grab sample ever recorded on the North Limb of Hemlo.

In October 2022 FCM completed the option to purchase the historical high-grade past-producing Sunbeam gold mine near Atikokan, Ontario, ~15 km southeast of Agnico Eagle's Hammond Reef gold deposit (3.3 Moz of open pit probable gold reserves).

FCM acquired the Zigzag Project near Armstrong, Ontario in March 2023. The property features Li-Ta-bearing pegmatites in the same belt as Green Technology Metals' Seymour Lake Project, which contains a Mineral Resource estimate of 9.9 Mt @ 1.04% Li2O. Zigzag was successfully drilled prior to Christmas 2023 and results have now been released.

The Kerrs Gold property, acquired under option by First Class Metals in April 2024, is located in northeastern Ontario within the Abitibi Greenstone Belt, one of the world's most prolific gold-producing regions. The project holds a historical inferred resource of approximately 386,000 ounces of gold, underscoring its potential as a meaningful addition to FCM's expanding gold portfolio. Kerrs Gold complements the Company's exploration strategy and provides exposure to a well-established mining district. FCM is currently reviewing plans to advance the project and further unlock its value.

The significant potential of the properties for precious, base and battery metals relates to 'nearology', since all properties lie in the same districts as known deposits (Hemlo, Hammond Reef, Seymour Lake), and either contain known showings, geochemical or geophysical anomalies, or favourable structures along strike from known showings (e.g. the Esa project, with an inferred Hemlo-style shear along strike from known gold occurrences).

For further information see the Company's presentation on the web site:

www.firstclassmetalsplc.com

Forward Looking Statements

Certain statements in this announcement may contain forward-looking statements which are based on the Company's expectations, intentions and projections regarding its future performance, anticipated events or trends and other matters that are not historical facts. Such forward-looking statements can be identified by the fact that they do not relate only to historical or current facts. Forward-looking statements sometimes use words such as 'aim', 'anticipate', 'target', 'expect', 'estimate', 'intend', 'plan', 'goal', 'believe', or other words of similar meaning. These statements are not guarantees of statements. Given these risks future performance and are subject to known and unknown risks, uncertainties and other factors that could cause actual results to differ materially from those expressed or implied by such forward-looking and uncertainties, prospective investors are cautioned not to place undue reliance on forward-looking statements. Forward-looking statements speak only as of the date of such statements and, except as required by applicable law, the Company undertakes no obligation to update or revise publicly any forward-looking statements, whether as a result of new information, future events or otherwise.

The MOU described herein is non-binding and does not constitute a legally enforceable agreement to proceed with any transaction. The parties have agreed to collaborate on an exploratory basis and any material developments will be disclosed as required under the Company's regulatory obligations.

¹ Source: BCG Tokenisation Market Outlook 2023 | ESG Market Insights 2024