Ascendant Resources Lagoa Salgada Project Attributed Project of National Interest Status by Portuguese Government

Rhea-AI Summary

Ascendant Resources Inc. announces that its Lagoa Salgada VMS project has been recognized as a Project of National Interest (PIN) by the Portuguese Government. This designation facilitates expedited permitting and construction processes, highlighting strong local and governmental support. The recognition is a significant milestone for the project, which is expected to enhance local economies and support Portugal's mining sector. The project is backed by a favorable Preliminary Economic Assessment indicating a low capital investment of US$132 million, with an after-tax NPV of $246 million and an IRR of 55%.

Positive

• Lagoa Salgada recognized as a Project of National Interest, streamlining permitting processes.
• Strong local and government support enhances project credibility.
• Preliminary Economic Assessment shows low capital cost (US$132 million) with a favorable NPV ($246 million) and IRR (55%).

Negative

• No assurances on project financing from ongoing discussions; outcomes uncertain.

• PIN recognition provides expedited procedures and shorter implementation periods for permitting and construction
• PIN award emphasizes strong local and Government support
• Lagoa Salgada is the first mining project to receive recognition of this kind in Portugal
• Redcorp Empreendimentos Mineiros, Lda to explore project financing

TORONTO, April 28, 2022 (GLOBE NEWSWIRE) -- Ascendant Resources Inc. (TSX: ASND; OTCQB: ASDRF) ("Ascendant" or the "Company”) is pleased to announce that the Lagoa Salgada VMS project (the “Project”) has been recognized by the Portuguese Government as a Project of National Interest (“PIN”). The award, as dated April 4^th, 2022 is based on various economic, environmental and social factors and its positive impact on the local Municipalities covered by the mining concession, the region and for Portugal.

The award of PIN status by the Agência para o Investimento e Comércio Externo de Portugal (“Portuguese Agency for Investment and Foreign Trade of Portugal” or “AICEP”) provides the Project with direct access to the government and ensures that all interactions with public entities involved in the environmental and construction permitting process and all procedures for licencing will be facilitated and simplified through AICEP while complying with all applicable regulations. The development of the Project will now be subject to continuous follow-up by the CPAI - Permanent Commission for Investor Support to ensure its swift progress to the benefit of the national interest.

Mark Brennan, Ascendant’s Executive Chairman commented, “To have the Lagoa Salgada project recognized as a Project of National Interest from the Portuguese Government is a very significant milestone for the project. We view this as a strong endorsement of the benefits the Lagoa Salgada project will bring to the communities of Grândola and Alcácer do Sal, who have been extremely supportive to date, and Portugal itself. We welcome the additional assistance of AICEP to help fast-track permitting and development of the Project as we move through the development process.”

As previously reported, the feasibility study for the development of the Lagoa Salgada project has commenced post the completion of a NI 43-101 Preliminary Economic Assessment (“PEA”) entitled “NI 43-101 Technical Report and PEA for the Lagoa Salgada Project”, See PR dated September 13, 2021, which is available on the Company’s website and on SEDAR at www.sedar.com. The PEA highlights a low capital-intensive project (Capex US$132 million) with an after tax NPV8% of $246 million and an IRR of 55% at conservative long term metal prices. The PEA presents a low capex, low operating cost, high margin underground mining operation with strong economics and the opportunity for significant benefit to the Company, the local stakeholders, and will boost Portugal’s economy through exports, taxes and local employment.

In addition, the direct holder of the Project, Redcorp Empreendimentos Mineiros, Lda (“Redcorp”), through which the Company holds its interest, is currently in discussions with several third parties regarding potential project financing(s) for the development and eventual construction of the Project. These discussions are in differing phases of advancement and no assurances can be provided that these discussions will result in the entering into of any definitive agreements or a transaction. Neither the Company nor Redcorp has made any decisions related to any such financing at this time. The Company does not intend to provide announcements or updates unless or until it determines that further disclosure is appropriate or necessary.

About Ascendant

Ascendant is a Toronto-based mining company focused on the exploration and development of the highly prospective Lagoa Salgada VMS project located on the prolific Iberian Pyrite Belt in Portugal. Through focused exploration and aggressive development plans, the Company aims to unlock the inherent potential of the project, maximizing value creation for shareholders.

Lagoa Salgada contains over 10.33 million tonnes of Measured and Indicated Resources @ 9.06 % ZnEq and 2.50 million tonnes of Inferred Resources @ 5.93 % ZnEq in the Northern Zone; and 4.42 million tonnes of Indicated Resources @ 1.50 % CuEq and 10.83 million tonnes of Inferred resources @ 1.35 % CuEq in the South Zone. The deposit demonstrates typical mineralization characteristics of Iberian Pyrite Belt VMS deposits containing zinc, copper, lead, tin, silver and gold. Extensive exploration upside potential lies both near deposit and at prospective step-out targets across the large 10,700ha property concession. The project also demonstrates compelling economics with scalability for future resource growth in the results of the Preliminary Economic Assessment. Located just 80km from Lisbon, Lagoa Salgada is easily accessible by road and surrounded by exceptional Infrastructure. Ascendant holds a 25% interest in the Lagoa Salgada project through its position in Redcorp - Empreendimentos Mineiros, Lda, ("Redcorp") and has an earn-in opportunity to increase its interest in the project to 80%. Mineral & Financial Investments Limited owns the additional 75% of Redcorp. The remaining 15% of the project is held by Empresa de Desenvolvimento Mineiro, S.A., a Portuguese Government owned company supporting the strategic development of the country's mining sector. The Company's interest in the Lagoa Salgada project offers a low-cost entry to a potentially significant exploration and development opportunity, already demonstrating its mineable scale.

The Company's common shares are [principally] listed on the Toronto Stock Exchange under the symbol "ASND". For more information on Ascendant, please visit our website at www.ascendantresources.com.

Additional information relating to the Company, including the PEA referenced in this news release, is available on SEDAR at www.sedar.com.

Forward Looking Information
This news release contains "forward-looking statements" and "forward-looking information" (collectively, "forward-looking information") within the meaning of applicable Canadian securities legislation. All information contained in this news release, other than statements of current and historical fact, is forward-looking information. Often, but not always, forward-looking information can be identified by the use of words such as "plans", "expects", "budget", "guidance", "scheduled", "estimates", "forecasts", "strategy", "target", "intends", "objective", "goal", "understands", "anticipates" and "believes" (and variations of these or similar words) and statements that certain actions, events or results "may", "could", "would", "should", "might" "occur" or "be achieved" or "will be taken" (and variations of these or similar expressions). Forward-looking information is also identifiable in statements of currently occurring matters which may continue in the future, such as "providing the Company with", "is currently", "allows/allowing for", "will advance" or "continues to" or other statements that may be stated in the present tense with future implications. All of the forward-looking information in this news release is qualified by this cautionary note.

Forward-looking information in this news release includes, but is not limited to, statements regarding the potential benefits of the Project’s recognition as a PIN and the ability of the potential of the owner of the Project to obtain financing. Forward-looking information is based on, among other things, opinions, assumptions, estimates and analyses that, while considered reasonable by Ascendant at the date the forward-looking information is provided, inherently are subject to significant risks, uncertainties, contingencies and other factors that may cause actual results and events to be materially different from those expressed or implied by the forward-looking information. The material factors or assumptions that Ascendant identified and were applied by Ascendant in drawing conclusions or making forecasts or projections set out in the forward-looking information include, but are not limited to, the success of the exploration activities at Project, the Company advancing the Project to a PEA, the ability of the Company to fund the exploration program at the Project with funds from operations, and other events that may affect Ascendant's ability to develop the Project; and no significant and continuing adverse changes in general economic conditions or conditions in the financial markets.

Forward-looking information is subject to a variety of risks and uncertainties, which could cause actual events or results to differ from those reflected in the forward-looking information, including, without limitation, the risks described under the heading "Risk Factors" in the Company's annual information form dated March 24, 2022 for its fiscal year ended December 31, 2021 and other risks identified in the Company's filings with Canadian securities regulators, which filings are available on SEDAR at www.sedar.com. The risk factors referred to above are not an exhaustive list of the factors that may affect any of the Company's forward-looking information. The Company's statements containing forward-looking information are based on the beliefs, expectations and opinions of management on the date the statements are made, and the Company does not assume any obligation to update such forward-looking information if circumstances or management's beliefs, expectations or opinions should change, other than as required by applicable law. For the reasons set forth above, one should not place undue reliance on forward-looking information.

FAQ

What is the significance of the Lagoa Salgada project being recognized as a Project of National Interest by the Portuguese Government?

The recognition expedites permitting and construction processes, reflecting strong local and governmental support, which is vital for project advancement.

What are the financial metrics for the Lagoa Salgada project according to the Preliminary Economic Assessment?

The project has a capital investment estimated at US$132 million, an after-tax NPV of $246 million, and an IRR of 55%.

What role does Ascendant Resources play in the Lagoa Salgada project?

Ascendant Resources holds a 25% interest in the Lagoa Salgada project through Redcorp and has an opportunity to increase its stake to 80%.

What potential benefits does the Lagoa Salgada project offer to the local economy?

The project is expected to boost the local economy through job creation, tax revenues, and increased exports.

Is there any guarantee of project financing for Lagoa Salgada?

Currently, there are ongoing discussions for project financing, but there are no guarantees or definitive agreements as of now.