Highlights

 - US$140m debt financing raised to fully fund the project through to   
   production 
 - Transaction is the largest greenfield mining project finance transaction to 
   have reached completion since the beginning of 2020 and the onset of
   COVID-19, highlighting the strong underlying fundamentals of the project 
 - Construction is progressing well, on time and in line with budget, now over 
   90% complete 
 - Project development has been maintained in line with plan in spite of 
   COVID-19, while ensuring the safety of all MVV employees 
 - Offtake agreement signed with international trader

Mineracao Vale Verde Ltda. ("MVV" or the "Company") and A
ppian Capital Advisory LLP ("Appian") are pleased to announce that MVV has 
secured a US$140m debt financing to finalise the development of the Serrote 
copper-gold project ("Serrote") located in Alagoas, Brazil. The financing will 
fund all remaining development costs, with the project now fully funded through 
to production.

The Company has executed definitive documentation with ING Capital LLC, 
Natixis, New York Branch, and Societe Generale (the "MLAs"), for a US$140m 
project finance debt facility, the largest greenfield mining project finance 
transaction to have been announced since the beginning of 2020 and the onset of 
COVID-19. The extensive technical, legal, environmental and social due 
diligence undertaken by the MLAs is a strong endorsement of the robust 
fundamentals of the Serrote Project, the quality of the MVV management team and 
the strength of Appian as a sponsor. The financing further underlines the 
commitment of Appian and its portfolio companies to best-in-class ESG 
practices, including compliance with the Equator Principles and IFC Performance 
Standards on Social Sustainability. MVV has achieved financial close and 
commenced drawdowns under the facility.

As part of the overall project funding package, Appian Natural Resources Fund 
II will acquire a royalty over a portion of the project's gold by-product 
production. 

Project update and key milestones

Serrote remains on track for first production in the second half of 2021. 
Construction is progressing on time and in line with budget, with over 94% of 
overall project execution complete. Mechanical completion has been achieved in 
a number of areas with pre-commissioning activities and operational readiness 
programs also well advanced in order to ensure a smooth, and efficient ramp up, 
and enabling operations to start safely. 

Several key milestones were achieved during 2020, the majority ahead of plan. 
These included construction of the phase I tailings storage facility; the 
signing of an offtake agreement with an international trader to support the 
financing; construction and erection of the new 21km 230kV powerline; and 
construction of the majority of key processing plant infrastructure. Phase I 
pre-stripping has also been completed and overall pre-stripping is well ahead 
of plan, with ~6 million tonnes of earth moved to date and stockpiling of fresh 
ore having commenced. Strong operational momentum has continued into 2021 with 
the project recently achieving another significant milestone by processing 
first ore through the primary crusher.

As previously announced in August 2019, Appian completed a Definitive 
Feasibility Study ("DFS") prior to commencing construction which highlighted 
the robust economics of the project. As outlined in the DFS, the project is 
expected to produce approximately 20 ktpa of copper equivalent over an initial 
14-year mine life from a low-strip, open pit mine supplying a 4.1 Mtpa 
processing plant. 

Serrote's initial life of mine will exploit a mineral reserve of 52.65 Mt 
grading 0.6% Cu and 0.1 g/t, defined using US$3.00/lb Cu, with substantial 
value upside available through a potential expansion into the larger 108.85 Mt 
Measured and Indicated Resource at Serrote as well as through the potential at 
some of the nearby satellite deposits. 

The current macro-economic environment further enhances the highly attractive 
economics of the project with MVV expected to produce at an AISC of ~US$1.33/lb 
Cu and generate steady-state annual EBITDA margins in excess of 65%, at 
currently prevailing exchange rates and commodity prices.

COVID-19

Serrote has remained operational despite the challenges caused by the COVID-19 
pandemic. Our priority remains the safety of our people and the communities in 
which we operate, and we have adjusted our working practices to protect 
employees in the most effective ways, allowing us to remain on schedule with 
development.  
Paulo Castellari, CEO MVV & Appian Brazil commented:

"I am pleased that we have been able to secure this financing for Serrote, 
which finalises the overall funding package and will support completion of 
project development and delivery of first production. It is an important 
development which recognises the continued progress and key milestones achieved 
to date and highlights the attractiveness of this high-quality copper-gold 
deposit. The tremendous progress we have made during the pandemic is also 
testament to the hard work and determination of our employees, and I look 
forward to bringing Serrote into production on schedule and in line with 
budget."

Endeavour Financial acted as financial advisor to the Company. Norton Rose 
Fulbright LLP acted as legal counsel to the Company.

For further information:

Finsbury Glover Hering +44 (0)20 7251 3801 / AppianCapital-LON@finsbury.com 
Charles O'Brien, Ruban Yogarajah, Richard Crowley

Appian Capital Advisory +44 (0)20 7004 0951 / info@appiancapitaladvisory.com
Michael W. Scherb

About Mineracao Vale Verde Ltda.

MVV is developing Serrote, an advanced stage, de-risked greenfield open-pit 
copper-gold development asset currently under construction and with all major 
permits in place, located in Alagoas, Brazil. The Company is headquartered in 
Belo Horizonte, with a high-quality management team with extensive local and 
international experience operating at site. 

Following Appian's acquisition of the asset in mid-2018, an updated DFS was 
completed outlining a 14-year initial mine life with production of 
approximately 20 thousand tonnes of copper equivalent per annum in a premium, 
high grade concentrate. Serrote is expected to be well positioned in the second 
quartile of the copper cost curve on a total cash cost basis. 

MVV is pursuing several expansion opportunities beyond the initial mine life, 
with significant defined mineralization outside of the current mine plan as 
well as numerous satellite resources and targets within trucking distance of 
the planned plant infrastructure. Less than 50% of the 112Mt global resource is 
currently contained within the mine plan, with active drilling and growth plans 
underway to increase mineable inventory.

About Appian Capital Advisory LLP

Appian Capital Advisory LLP is the investment advisor to long-term value 
focused private equity funds that invest solely in mining and mining related 
companies.
Appian is a leading investment advisor in the metals and mining industry, with 
global experience across South America, North America, Australia and Africa and 
a successful track record of supporting companies to achieve their development 
targets, with a global operating portfolio overseeing nearly 5,000 employees.
Appian has a global team of 37 investment professionals with offices in London, 
Toronto, Lima, Belo Horizonte and Sydney. 

For more information please visit www.appiancapitaladvisory.com, or find us on 
LinkedIn [https://www.linkedin.com/company/appian-capital-advisory-llp/ ] or 
Instagram [https://www.instagram.com/appiancapitaladvisory/?hl=en ]

SOURCE: Appian Capital Advisory LLP and MineracaoVale Verde Ltda