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Kalongwe Project – Delivers Significant Scoping Study Outcomes

The Directors of Regal Resources Limited (ASX:RER) (�Regal� or �the Company�) are pleased to announce the completion of the Study to assess the technical and economic feasibility of developing a HMS Stage 1 - starter project at the Kalongwe Project to produce a high grade Copper / Cobalt concentrate.

HIGHLIGHTS

• Summary of key Study outcomes and assumptions:

               - Project Net Present Value (NPV @ 10% discount rate)*: $77.9M

               - Project Internal Rate of Return (IRR)*: 81%

               - Payback*: 13 months

               - Capital Cost to Initial Production: $38.9 million (�M�)

               - Operating Costs (per pound (�lb�) Cu payable): $1.01per lb ($1.38  / lb, transport costs incl.)

               - Production Target Profile: 1.03 Mtpa processed through Heavy Media Separation (��HMS��) plant

               - Total Sales Revenue:  $397.3M

               - Estimated average annual Copper (�Cu� or �Copper�) production**: 21,249 t (Cu in concentrate)

               - LOM strip ratio (t:t): 1.52

               - Timeline to initial production:  12-16 months from approval of Mining Licence

               - Product Quality**:  3.27% Cu avg. ore grade over LOM and HMS concentrate grade >20% Cu

                          * Base Case is stated on a post-tax basis assuming 100% project at a Copper price of $3.00/lb. All amounts are in US dollars unless otherwise stated
                        ** Forecast Cobalt grades will be defined in subsequent work on the Project.

• The Scoping Study (the "Study") referred to in this announcement is based on low-level technical and economic assessments, and is insufficient to support estimation of Ore Reserves or to provide assurance of an economic development case at this stage, or to provide certainty that the conclusions of the Study will be realised.
• Key mining and processing capital expenditure (��CAPEX��) and operational expenditure (��OPEX��) assumptions were based upon the independent Competent Persons experience with similar projects in the region. Cost estimates for mining, processing and general infrastructure were generated to an accuracy of ±35%.
• The Study results indicate potential for an economically viable, robust stand-alone project employing conventional mining and processing methods common in the Democratic Republic of the Congo (��DRC��) Copperbelt.
• The low capital cost, low operating costs and short payback period are the result of the high grade nature of the deposit, and the relatively simple mining and beneficiation process. Operating costs are in the lowest quartile of the cash cost curve.
• The Project Capital Intensity or Unit Capex of US$1,832/t p.a. is ~1/5th of Regal�s peer average of ~$10,000t.
• The Study has highlighted multiple opportunities to improve the Kalongwe Project (��Project��) economics through mine pit and mine scheduling optimisation, transport savings and further market assessment for the sale of product.
• Significant opportunities to further enhance the Project economics include producing a higher grade Cobalt (�Co� or �Cobalt�) concentrate and heap leaching of HMS reject material, conversion of Inferred resource category material to Measured or Indicated  and by discovery and delineation of new resources through additional exploration activities within the Permit Area.
• The development of a heap leach and potential Stage 2 SX-EW would provide opportunities to extend mine life and to more effectively exploit the current resource of 302,000 t contained copper and 42,000 t contained cobalt.
• The Company is also in advanced negotiations to acquire an additional 30% interest in the Project.

To access the full ASX Announcement, click here.

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