Comprehensive Settlement Agreement in Zambia

Arc Minerals Limited

27 May 2026

 

Market Abuse Regulation (MAR) Disclosure

This announcement contains inside information for the purposes of Article 7 of the Market Abuse Regulation (EU) 596/2014 as it forms part of UK domestic law by virtue of the European Union (Withdrawal) Act 2018 ("MAR"), and is disclosed in accordance with the Company's obligations under Article 17 of MAR.

27 May 2026

Arc Minerals Ltd

("Arc" or "the Company")

Comprehensive Settlement Agreement in Zambia

Arc Minerals (LSE: ARCM), an exploration company focused on discovering and developing Tier 1 copper deposits in Africa, is pleased to announce that it has executed a comprehensive Settlement Agreement (the "Settlement Agreement"), bringing to a full and final conclusion all outstanding litigation between the parties.

The Settlement Agreement, entered into between the Company, Handa Resources Limited* ("Handa"), Unico Minerals Limited* ("Unico") and Kopara Investments Limited ("Kopara") (together "Party A") and Zambia Mineral Exchange Corporation Limited ("ZAMEX"), Lunda Resources Limited (formerly Zamsort Limited) ("Lunda") and Mumena Mushinge (together, "Party B"), terminates eight sets of ongoing proceedings across multiple Zambian courts and tribunals and accordingly resolves all ongoing litigation impacting Arc in Zambia. Procedurally, the requisite consent judgements are being filed with the relevant Zambian courts and the Company will make a further announcement upon completion of this process.

Rémy Welschinger, CEO of Arc Minerals, commented: "I am very pleased that we have successfully reached a comprehensive and final resolution of all outstanding legal disputes in Zambia. This settlement allows us to focus entirely on advancing our exploration and development activities across Botswana and Zambia. Arc's Kabompo West project represents one of the largest exploration footprints in the Domes region of Zambia."

Key terms of the Settlement Agreement

Discontinuance of proceedings

Party A and Party B (Party A and Party B are together the "Parties", and each individual company a "Party") have agreed to resolve all existing disputes, claims, counterclaims and proceedings between them on a full, final and comprehensive basis, and to formally discontinue by consent all pending litigation.

Mutual release and non-interference

Without any admission of liability by any Party and in consideration of the terms of the Settlement Agreement, each Party irrevocably and unconditionally released and absolutely discharged each other and their related parties, from any and all claims, demands, actions, causes of action and proceedings of whatever nature, whether past, present or future, actual or contingent, known or unknown, matured or unmatured, and in any jurisdiction whatsoever, including before any court, tribunal, arbitral panel, regulatory authority, or other body.

Deferred Settlement Payment

Party B has agreed to pay a USD 200,000 Settlement Payment to Party A, contingent upon Party B delivering a JORC-compliant Measured Mineral Resource of not less than 30,000,000 tonnes at a cut-off grade of 1.5% Cu on Lunda's Licence No. 41777-HQ-LEL on or before 31 December 2031. No payment is due if this condition is not met by that date.

Licence 19906-HQ-LEL, held by Handa Resources Limited ("Handa")

Lunda irrevocably and unconditionally renounces, waives, disclaims and abandons all alleged rights, title, interest, claims or entitlements (whether legal, beneficial, contractual, possessory or otherwise) ("Interests") in or to Handa's Large-Scale Exploration Licence 19906-HQ-LEL and the tenement subsisting thereunder and undertakes not to assert or make any representations or filings in relation to any Interests in any court, tribunal, regulatory authority or other forum, whether in Zambia or elsewhere, that is inconsistent with Handa's ownership of 19906-HQ-LEL.

Licence 41777-HQ-LEL, held by Lunda

The parties acknowledged that Large-Scale Exploration Licence 41777-HQ-LEL (approximately 42.5 square kilometres) is legally owned by Lunda, with Handa having similarly renounced any Interests in this licence. The ground under Licence 41777-HQ-LEL was originally part of Handa's wider licence area but is considered an immaterial asset to Arc.

*Handa Resources Limited is a wholly owned subsidiary of Unico Minerals Limited (owned 67% by Arc Minerals and 33% by Kopara).

ENDS

For further information visit www.arcminerals.com or contact:

Arc Minerals Ltd	Rémy Welschinger, CEO	E: [e-mail]
Zeus Capital Ltd Nominated Adviser & Joint Broker	Katy Mitchell / Harry Ansell	T: [phone]
Shard Capital Partners LLP Joint Broker	Damon Heath	T: [phone]
St Brides Partners Limited Financial PR	Isabel de Salis / Susie Geliher	E: [e-mail]

Notes

Arc Minerals Ltd (LSE: ARCM) is an AIM-quoted copper exploration company focused on developing assets across two of Africa's most prospective copper belts. The Kabompo West Project in Zambia is located within the Western Domes of the Central African Copperbelt, host to multiple Tier 1 copper deposits, where extensive work has confirmed widespread mineralisation and multiple target areas. The Company also holds the Virgo Project in Botswana, situated in the Kalahari Copper Belt within the highly prospective MMG Zone 5 corridor. Arc is led by an experienced team with expertise across mining, capital markets and in-country operations.

 

END