TIDMOSU
Orsu Metals Corporation results for the quarter ended September 30, 2014 (Unaudited)
FOR: ORSU METALS CORPORATION
TSX, AIM SYMBOL: OSU
November 13, 2014
Orsu Metals Corporation Results for the Quarter Ended September 30, 2014 (Unaudited)
LONDON, UNITED KINGDOM--(Marketwired - Nov. 13, 2014) - Orsu Metals Corporation ("Orsu" or the "Company" or the
"Group"), the dual listed (TSX:OSU)(AIM:OSU) London-based base and precious metals exploration and development
company today reports its unaudited results for the quarter ended September 30, 2014 ("Q3 2014"). A full
Management's Discussion and Analysis of the results ("MD&A") and Consolidated Financial Statements for Q3 2014
(the "Financials") will soon be available on the Company's profile on SEDAR (www.sedar.com) or on the Company's
website (www.orsumetals.com). Copies of the MD&A and Financials can also be obtained upon request from the
Company Secretary.
The Financials have been prepared in accordance with applicable International Financial Reporting Standards
("IFRS").
All amounts are reported in United States Dollars ($) unless otherwise indicated. Canadian Dollars are referred
to herein as CAD$ and British Pounds Sterling are referred to as GBP.
The following information has been extracted from the MD&A and the Financials. Reference should be made to the
complete text of the MD&A and the Financials.
THIRD QUARTER 2014 HIGHLIGHTS
In July and September 2014 - following an announcement in July 2014 in which the Company announced an extension
of an exclusivity agreement with Asem Tas-N LLC ("Asem Tas"), a privately owned Kazakh registered company and
holder of a license area in Eastern Kazakhstan, which is host to the 30km long Dzharyk-Taisogan cluster of
copper-polymetallic occurrences (the "Balkhash Project") to continue exploration work at the Balkhash Project
until September 2014, the Company announced that it had suspended joint exploration work at the Balkhash
Project with Asem Tas. After an extensive assessment of the results of the exploration programme, funded by
Orsu, the Directors of the Company determined not to exercise the option to purchase an interest in the
Balkhash Project on the terms set out in the exclusivity agreement announced on March 11, 2014. Further, based
on the geological results and the geopolitical situation in the region, the Directors were also unwilling to
commit further funds towards the next stage of exploration in order to secure a further exclusivity period. The
Company has no residual funding obligation as a result of this decision.
In July and September 2014 - following the expiry on July 1, 2014 of an exclusivity agreement with David-Invest
LLP (or "David Invest"), a Kyrgyz registered company, and a related company, David Way Limited, a Hong Kong
registered company (together the "Potential Buyers") for the potential sale of the Company's exploration
interest in Kyrgyzstan consisting of the Akdjol and Tokhtazan exploration licenses (the "Akdjol-Tokhtazan
Project") located in the Jelal-Abad Oblast, western Kyrgyzstan, in September 2014 the Company announced that it
had received a $100,000 non-refundable deposit from the Potential Buyers and had entered into a new exclusivity
agreement with the Potential Buyers with a view to the potential sale of the Akdjol-Tokhtazan Project (the
"Akdjol-Tokhtazan Exclusivity Agreement"). Pursuant to the terms of the Akdjol-Tokhtazan Exclusivity Agreement,
the Potential Buyers were granted the exclusive right to purchase the Akdjol-Tokhtazan Project until February
4, 2015 (the "Exclusivity Period") conditional upon the Potential Buyers making four further non-refundable
deposit payments in the amount of US$100,000 on or before each of October 4, November 4, December 4, 2014 and
January 4, 2015 (the "Additional Deposits"). In the event that the Potential Buyers did not make any of the
Additional Deposits by the specified dates then the Akdjol-Tokhtazan Exclusivity Agreement would automatically
expire (see also "Post Quarter Highlights" below).
In August 2014 - the Company announced that that its newly formed subsidiary, Kogodai Joint Venture LLP, an
entity registered in Kazakhstan, ("Kogodai JV LLP") had been granted an exploration license for a prospect 70
km north west of the Company's Karchiga Project, identified as a volcanogenic massive sulphide ("VMS") copper
mineralization within the Kurchum-Kalzhir metamorphic terrain, the same tectonic unit that hosts the Karchiga
deposit (the "Kogodai Project"). The exploration license for the Kogadai Project was transferred from SPK Ertis
JSC, a Kazakh State-owned special enterprise company, to Kogodai JV LLP in which the Company's 63.75% owned
subsidiary, Orsu Metals Kazakhstan LLP ("Orsu Kazakhstan"), has a majority 80% interest and SPK Ertis JSC has a
20% minority interest, giving Orsu an effective 51% interest in Kogodai JV LLP. Under the terms of the
exploration license granted to Kogodai JV LLP the exploration license is for a period of five years, which can
be extended according to the legislation of Kazakhstan and has a minimum funding obligation for exploration
work at the Kogodai Project of an aggregate of $2.6 million over three years which will be funded by the
Company (see "Operational Review - Kogodai Project, Kazakhstan" below).
POST QUARTER HIGHLIGHTS
In October 2014 - the Company announced that it had not received the Additional Deposit required of $100,000
from the Potential Buyers pursuant to the terms of the Akdjol-Tokhtazan Exclusivity Agreement previously
announced in September 2014 and as a result the Akdjol-Tokhtazan Exclusivity Agreement had lapsed. The Company
continues to have ongoing discussions with the Potential Buyers on a non-exclusive basis.
OPERATIONAL REVIEW
The Company's principal and most advanced project is the property located within the Republic of Kazakhstan (or
"Kazakhstan"), comprising a license area in eastern Kazakhstan containing the Karchiga VMS deposit which is
part of the Rudny Altai polymetallic belt (the "Karchiga Project"). The Company currently holds exploration
licenses in the Republic of Kazakhstan ("Kazakhstan") and within the Kyrgyz Republic ("Kyrgyzstan") and
continues to seek opportunities to acquire and develop new exploration licenses in both Kazakhstan and the
Former Soviet Union ("FSU").
During the nine months ended September 30, 2014 the Company made a detailed assessment of the joint exploration
work undertaken at the Balkhash Project with Asem Tas and as a result decided not continue with any further
exploration work at the Balkhash Project. In August 2014 the Company completed the transfer of the exploration
licenses in relation to the Kogodai Project to Kogodai JV LLP and began exploration work. The Company also
continued to consider financing options for the Karchiga Project.
The Company has continued to use, and will continue to use, its current working capital resources to satisfy
the Company's expenditure obligations in respect of its corporate and administrative expenditures, as well as
funding obligations for the Kogadai Project. In relation to the Karchiga Project, the Company continues to seek
to secure the additional finance required for the construction of a mine and processing facilities to satisfy
the total funding package required by the Mandated Lead Arrangers (see below) and concurrently continues to
actively consider alternative financing options.
Karchiga Copper Project, Kazakhstan
In 2012 the Company completed a feasibility study for the Karchiga Project, (the "Karchiga Definitive
Feasibility Study") the results of which estimated an initial capital expenditure requirement of $115 million
for the Karchiga Project. To assist the Company in arranging finance for such expenditures, in July 2012, the
Company appointed Barclays Bank plc ("Barclays") and UniCredit Bank AG ("UniCredit") (together the "Mandated
Lead Arrangers") to use commercially reasonable efforts to secure debt financing of up to $90 million (subject
to commercially acceptable terms for the facility being agreed and the Mandated Lead Arrangers obtaining the
necessary internal approvals).
As at the date of this press release the Company continues to consider all financing options for the Karchiga
Project. Until the Company is able to successfully conclude any financing options available for the Karchiga
Project, in relation to the construction of a mine and processing facilities the Company will not enter into
any contracts to place advance orders for mining equipment or construction materials and will be unable to
determine the expected timing for the commencement of construction (see the "Liquidity and capital resources"
section below and "Risks and uncertainties" section of the Company's MD&A).
Kogodai Project, Kazakhstan
The Kogodai Project is located approximately 70km north-west of the Company's Karchiga Project in north-east
Kazakhstan.
Geologically, the Kogodai prospect occurs within the Kurchum-Kalzhir metamorphic terrane, the same tectonic
unit that hosts the Company's Karchiga deposit. The massive sulfide mineralization was discovered during the
Soviet era exploration work in the 1970's within a package of schist, gneiss and amphibolite. These rocks are
deformed into a Kogodai syncline, trending for 25 km north-west and 5 km across. At surface the mineralization
can be traced along the south western limb of the syncline for 1.5 km using historical surface workings. During
Soviet times, only seven holes were drilled at the Kogodai prospect, 600 meters apart along its strike.
Mineralization was confirmed in three of these drill holes, C-91, C-89 and C-75, as shown below. The principal
sulphide minerals are pyrite, chalcopyrite, pyrrhotite and sphalerite. Copper grade varies from 0.28 to 2.62%.
The by-product mineralization recorded in historic drill data includes zinc, ranging from 0.14% to 3.26%.
Soviet era drill hole C-91 intercepted two mineralized intervals within a package of 27 meters from 39.5 meters
to 66.5 meters:
=- 7 meters grading 0.86% Cu (from 39.5 to 46.5 meters); and
=- 11 meters grading 0.77% Cu (from 54.5 to 65.5 meters), including 4
meters grading 1.1% Cu (from 61.5 to 65.5 meters).
In a separate drill section, located approximately 600 meters to the north west from drill hole C-91, two drill
holes (C-89 and C-75) also intercepted mineralization, confirming significant strike length of sulfide
mineralization between the two drill sections. Drill hole C-89 intercepted disseminated sulfides grading
between 0.12 and 0.48% Cu from 197 to 208.6 meters. Soviet era drill hole C-75 intercepted a mineralized
interval of 2.8 meters grading 0.64% Cu (287.7 to 290.5 meters), confirming a downdip continuation of
mineralization from drill hole C-85.
The mineralization at Kogodai remains open downdip and along strike. Similar mineralization is known to exist
at several other occurrences on the limbs of the Kogodai syncline within the Kogodai license area at
Lotoshnoye, Fedorovskoye, Kanat and Tuyuk, but recorded only in historical surface workings.
No historical resource estimates of any kind have been published in relation to Kogodai or its satellite
occurrences. Potential grade is conceptual in nature. There has been insufficient exploration on Kogodai to
define a mineral resource and it is uncertain whether further exploration will result in the target being
delineated as a mineral resource.
The Soviet drill hole results, disclosed above, are from a report by A.A. Shatobin dated 1971 and titled
"Geological report on exploration works of the South Altay exploration party, Ministry of Geology, of the
Kazakh Soviet Socialist Republic."
Summary of the license terms
The Company holds an effective 51% interest in the Kogodai Project through its 63.75% subsidiary, Orsu
Kazakhstan, which holds an 80% interest in Kogodai JV LLP, the holder of the exploration license for the
Kogodai Project. The exploration license was transferred to Kogodai JV LLP from SPK Ertis JSC, the Kazakh State-
owned special enterprise company, which will hold a 20% interest in Kogodai JV LLP.
A summary of the key terms for the Kogodai Project is set out below:
1) The exploration license is for exploration during a period of 5 years,
ending in 2019, which can be further extended according to the
legislation of Kazakhstan;
2) Orsu has made an initial cash investment, via Orsu Kazakhstan, for a
total value of $194,700 made up of an initial capital contribution to the
charter capital of Kogodai JV LLP of $152,700 and cash payments made in
2012 and 2013 for a total of $42,000 paid to the relevant authorities,
previously expensed by the Company, in relation to a subscription bonus
due under the terms of the exploration license;
3) The minimum funding obligation for exploration work at the Kogodai
Project is as follows:
a. $525,100 for the first year commencing with the grant of the
licence;
b. $803,900 for the second year and,
c. $1,258,100 for the third year.
4) Orsu will be required to fund all of the initial investment, which
includes the subscription bonus, and exploration work at the Kogodai
Project. It is expected that the exploration programme will be financed
from the Company's existing cash resources.
FINANCIAL RESULTS FOR THE THREE MONTHS ENDED SEPTEMBER 30, 2014
For Q3 2014 the Company reported a net loss of $1.1 million consisting of: administrative costs of $0.62
million, legal and professional costs of $0.12 million and exploration costs of $0.33 million.
In August 2014, the Company completed the transfer of the exploration license for the Kogodai Project to its
newly formed subsidiary in Kazakhstan, Kogodai JV LLP. The Company has made an initial cash investment, via
Orsu Kazakhstan, for a total value of $194,700 made up of an initial contribution to the charter capital of
Kogodai JV LLP of $152,700 and cash payments made in 2012 and 2013 for a total of $42,000 paid to the relevant
authorities, previously expensed by the Company, in relation to a subscription bonus due under the terms of the
exploration license.
As at September 30, 2014 the Company had entered into the Akdjol-Tokhtazan Exclusivity Agreement and had
received as a non refundable deposit in total $400,000 from the Potential Buyers which it recorded as a
deferred income liability of $400,000 as at September 30, 2014.
In September 2014 the Company announced that it had suspended joint exploration work with Asem Tas at the
Balkhash Project. In the nine months ended September 30, 2014 the Company incurred exploration expenditure at
the Balkhash Project of $0.7 million. The Company incurred cumulative exploration expenditure from the fourth
quarter of 2012 to September 30, 2014 of $3 million in relation to the Balkhash Project. The Company had no
further funding obligations for the Balkhash Project as at September 30, 2014.
As at September 30, 2014 the Company had net assets of $23.1 million ($26.4 million as at December 31, 2013) of
which $8.5 million was cash and cash equivalents ($11.3 million as at December 31, 2013).
In respect of the Company's cash flows, there was a net decrease in cash and cash equivalents for the nine
months to September 30, 2014 was $2.8 million due primarily to operating cash expenditures of $2.7 million and
$124,000 for expenditure on property, plant and equipment.
Liquidity and capital resources
As at September 30, 2014 the Company's main source of liquidity was unrestricted cash and cash equivalents of
$8.5 million, compared with $11.3 million as at December 31, 2013.
The Company measures its consolidated working capital as comprising free cash, accounts receivable, prepayments
and other receivables, less accounts payable and accrued liabilities. As at September 30, 2014 the Company's
consolidated working capital was $9.6 million (compared with a consolidated working capital of $11.5 million as
at December 31, 2013).
The Company's working capital needs as at September 30, 2014 included the funding for its exploration and
development activities, including its future expenditure obligations of the Kogodai Project, its corporate and
administrative expenditures requirements and potential contributions towards project finance, if and when
arranged, in relation to the Karchiga Project, as deemed appropriate. The Company expects to fund its working
capital requirements for 2014, other than as set out below for the Karchiga Project, and be able to contribute
towards the pursuit of future growth opportunities (which may include acquiring one or more additional assets),
if and when such opportunities arise, from its unrestricted cash of $8.5 million as at September 30, 2014 and
potential net proceeds, if any, from the sale of the Akdjol-Tokhtazan Project.
During the nine months ended September 30, 2014 the net cash used by the Company's operating expenditures was
$2.8 million, compared to a net cash inflow of $3.0 million for the nine months ended September 30, 2013, (set
out in the interim consolidated financial statements as at September 30, 2014). The steps taken to reduce cash
expenditures during 2013 are reflected in a reduction in the forecast expenditures for 2014 in relation to
corporate and administration costs, the funding of exploration work at the Kogodai Project, the actual funding
of exploration work at the Balkhash Project and the maintenance the Karchiga Project. The minimum working
capital the Company estimates for the year is set out below:
Estimated working capital requirements for 2014 $000
=------------------------------------------------------------- ------
Estimated corporate and administration expenditure (1) 3,500
Balkhash Project actual expenditure for the nine months ended
September 30, 2014 (2) 668
Estimated expenditure for the Kogadai Project (3) 364
------
Total 4,532
Notes:
(1) Includes office expenditure at the Karchiga Project. In estimating the
forecast expenditures, the Company has applied an average 2014 exchange
rate of GBP / $1.58 for its UK corporate expenditures and an average
2014 exchange rate of Kazakh Tenge/ $153.62 for local office expenditure
at the Karchiga Project.
(2) In September 2014, the Company announced the suspension of joint
exploration work at the Balkhash Project. There are no further
expenditure obligations for the Balkhash Project.
(3) The estimated expenditure of $364,000 includes the initial cash
investment for the charter capital of Kogodai JV LLP of $152,700 (of a
total initial investment of $194,700 of which the Company had already
paid $42,000 during 2012 and 2013). The exploration expenditure
obligation for the first 12 months is $525,000 (measured from the date
of the transfer of the license) and the total exploration expenditure
obligation is $2.6 million over three years. The Company will fund the
Kogodai Project in U.S. dollar currency.
In the Company's view, the consolidated working capital as at September 30, 2014 is sufficient to satisfy its
working capital needs, other than as described below in relation to the Karchiga Project, for at least the next
twelve months.
In order to achieve the Company's planned construction of mining facilities and commencement of mining
operations at the Karchiga Project, if any, the Company will require an estimated initial CAPEX of $115 million
for which the Company will be required to raise additional financing in the future. If the Company secures the
required debt financing on acceptable commercial terms then it may also apply a proportion of its available
unrestricted cash and if any, from the sale of the Akdjol-Tokhtazan Project, towards the project financing
requirements as the Company determines necessary. Whilst the Company has been successful in raising debt and
other financing in the past, the Company's ability to raise additional debt and other financing may be affected
by numerous factors beyond the Company's control, including, but not limited to, adverse market conditions
and/or commodity price changes and economic downturn and those other factors that are listed under "Risks and
Uncertainties" in the Company's MD&A.
Consolidated statements of net loss and comprehensive loss (Unaudited)
(Prepared in accordance with IFRS)
=---------------------------------------------------------------------------
Three months ended Nine months ended
September 30, September 30,
2014 2013 2014 2013
$000 $000 $000 $000
Operating expenses
Administration (623) (809) (2,058) (2,606)
Legal and professional (122) (104) (406) (430)
Exploration (331) (706) (682) (1,189)
Stock based compensation - non
employees - (1) - (6)
Net foreign exchange (losses)/
gains (21) 102 (191) 66
Net (loss)/ gain from disposal
group asset held for sale (11) 14 (58) 14
---------------------- --------------------
(1,108) (1,504) (3,395) (4,151)
Unrealized gain on share
warrant liability 36 249 69 249
Loss on derivative receivable - (1,202) - (506)
Net of finance income less
finance expense 12 45 15 51
---------------------- --------------------
48 (908) 84 (206)
---------------------- --------------------
Net loss and comprehensive loss (1,060) (2,412) (3,311) (4,357)
---------------------- --------------------
---------------------- --------------------
Net loss attributable to:
Owners of the parent (1,038) (2,401) (3,269) (4,313)
Non-controlling interests (22) (11) (42) (44)
---------------------- --------------------
(1,060) (2,412) (3,311) (4,357)
---------------------- --------------------
---------------------- --------------------
Loss per share
Basic $ (0.01) $ (0.01) $ (0.02) $ (0.03)
Diluted $ (0.01) $ (0.01) $ (0.02) $ (0.03)
Weighted average number of
common shares (in thousands) 182,696 176,174 182,696 163,923
Consolidated Balance Sheets (Unaudited)
(Prepared in accordance with IFRS)
=---------------------------------------------------------------------------
September 30, December 31,
2014 2013
Assets $000 $000
Current assets
Cash and cash equivalents 8,536 11,342
Prepaid and receivables 855 807
Assets of Akdjol-Tokhtazan Project held for
sale 4,599 4,578
---------------------------
13,990 16,727
Non-current assets
Deferred finance costs 1,052 1,052
Property, plant and equipment 8,479 8,414
Other assets 1,011 1,212
---------------------------
10,542 10,678
---------------------------
Total assets 24,532 27,405
---------------------------
---------------------------
Liabilities
Current liabilities
Accounts payable and accrued liabilities 652 622
Deferred income 400 -
Liabilities of Akdjol-Tokhtazan Project held
for sale 176 99
---------------------------
1,228 721
Non-current liabilities
Share warrant liability 91 160
Other liabilities 120 120
---------------------------
1,439 1,001
Equity
Share capital 382,576 382,576
Share purchase options 5,638 5,687
Contributed surplus 28,523 28,474
Non-controlling interests (443) (401)
Deficit (393,201) (389,932)
---------------------------
23,093 26,404
---------------------------
Total equity and liabilities 24,532 27,405
---------------------------
---------------------------
Consolidated Statements of Cash Flows (Unaudited)
(Prepared in accordance with IFRS)
=---------------------------------------------------------------------------
Nine months ended September 30,
2014 2013
$000 $000
Cash flows used by operating activities
Net loss and comprehensive loss for the
period (3,311) (4,357)
Items not affecting cash:
Depreciation 62 92
Unrealized derivative gain on share
warrant liability (69) (249)
Loss on derivative receivable - 506
Share-based payments - 6
Fixed asset retirements - 2
Foreign exchange losses/ (gains) 218 (94)
--------------------------------
(3,100) (4,094)
Changes in non-cash working capital:
Increase in accounts receivable and
other assets (76) (342)
Increase/ (decrease) in accounts
payable and accrued liabilities 513 (825)
--------------------------------
Net cash used by operating activities (2,663) (5,261)
Cash flows used by investing activities
Expenditures on property, plant and
equipment (124) (1,358)
Cash proceeds of CAD$10 million from
Subscription - 9,636
--------------------------------
Net cash used by investing activities (124) 8,278
Cash flows used for financing activities
Deferred finance costs - (117)
--------------------------------
Net cash used for financing activities - (117)
--------------------------------
Net (decrease)/ increase in cash and
cash equivalents in the period (2,787) 2,900
--------------------------------
Cash and cash equivalents - Beginning
of period 11,343 9,771
Exchange (losses)/ gains on cash and
cash equivalents during period (19) 94
--------------------------------
Cash and cash equivalents - End of
period 8,537 12,765
--------------------------------
--------------------------------
Cash and cash equivalents per the
consolidated balance sheets 8,536 12,764
Included in the Akdjol-Tokhtazan Project
classified held for sale 1 1
FORWARD-LOOKING INFORMATION
This press release and the Company's MD&A contain or refer to forward-looking information. All information,
other than information regarding historical fact that addresses activities, events or developments that the
Company believes, expects or anticipates will or may occur in the future is forward-looking information. Such
forward-looking information includes, without limitation, statements relating to: development and operational
plans and objectives, including the Company's expectations relating to the continued and future maintenance,
exploration, development and financing for, as applicable, of the Karchiga Project, and the Kogadai Project and
the timing related thereto and its acquisition and development of new mineral exploration licenses, properties
and projects; the Company's ability to satisfy certain future expenditure obligations; mineral resource and
mineral reserve estimates; estimated project economics, cash flow, costs, expenditures, revenue, capital
payback, performance and economic indicators and sources of funding; the estimate, use and sufficiency of the
Company's working capital and the Company's ability to fund its working capital requirements; the anticipated
arranging of a debt facility by the Mandated Lead Arrangers and the potential participation by other debt
providers; the potential raising of additional funding through the disposition of the Company's Kyrgyz assets
and the proposed uses thereof; the estimated mine life, NPV and IRR for, and forecasts relating to tonnages and
amounts to be mined from, and processing and expected recoveries and grades at, the Karchiga Project as well as
the other forecasts, estimates and expectations relating to the Karchiga Definitive Feasibility Study Report;
the mine design and plan for the Karchiga Project, including mining at, and production from the Karchiga
Project; the Company's intention to recognise the $400,000 non-refundable deposit from the Potential Buyers as
income in the quarter ending December 31, 2014; the future political and legal regimes and regulatory
environments relating to the mining industry in Kazakhstan and/or Kyrgyzstan; the Company's expectations and
beliefs with respect to the waiver of the State's pre-emptive right with respect to the Karchiga Project and
the past placements of the Common Shares being covered thereby; the significance of any individual claims by
non-Ontario residents with respect to the Claim; and the Company's future growth (including new opportunities
and acquisitions) and its ability to raise or secure new funding.
The forward-looking information in this press release and the Company's MD&A reflects the current expectations,
assumptions or beliefs of the Company based on information currently available to the Company. With respect to
forward-looking information contained in this press release and the Company's MD&A, the Company has made
assumptions regarding, among other things, the Company's ability to generate sufficient funds from debt sources
and/or capital markets to meet its future expected obligations and planned activities (including, with respect
to the debt financing for the Karchiga Project, the ability of the Company to obtain such financing through the
arrangement by the Mandated Lead Arrangers of a project debt finance facility on terms acceptable to the
Company or otherwise), the Company's business (including the continued exploration and development of, as
applicable, the Karchiga Project and the Kogadai Project and the timing and methods to be employed with respect
to same), the estimation of mineral resources and mineral reserves, the parameters and assumptions employed in
the Karchiga Definitive Feasibility Study Report, the economy and the mineral exploration and extraction
industry in general, the political environments and the regulatory frameworks in Kazakhstan and Kyrgyzstan with
respect to, among other things, the mining industry generally, royalties, taxes, environmental matters and the
Company's ability to obtain, maintain, renew and/or extend required permits, licenses, authorisations and/or
approvals from the appropriate regulatory authorities, including the previous waiver granted by the Competent
Authority covers any pre-emptive right that the Competent Authority or State has in respect of any past
placements, future capital, operating and production costs and cash flow discounts, anticipated mining and
processing rates, the Company's ability to continue to obtain qualified staff and equipment in a timely and
cost-efficient manner, assumptions relating to the Company's critical accounting policies, and has also assumed
that no unusual geological or technical problems occur, and that equipment works as anticipated, no material
adverse change in the price of copper, gold or molybdenum occurs and no significant events occur outside of the
Company's normal course of business.
Forward-looking information is subject to a number of risks and uncertainties that may cause the actual results
of the Company to differ materially from those discussed in the forward-looking information, and even if such
actual results are realised or substantially realised, there can be no assurance that they will have the
expected consequences to, or effects on, the Company. Factors that could cause actual results or events to
differ materially from current expectations include, but are not limited to: risks normally incidental to
exploration and development of mineral properties and operating hazards; uncertainties in the interpretation of
results from drilling and metallurgical test work; the possibility that future exploration, development or
mining results will not be consistent with expectations; uncertainty of mineral resource and mineral reserve
estimates; technical and design factors; uncertainty of capital and operating costs, production and economic
returns; uncertainties relating to the estimates and assumptions used, and risks in the methodologies employed,
in the Karchiga Definitive Feasibility Study Report; adverse changes in commodity prices; the inability of the
Company to obtain required financing on favourable terms or at all (including with respect to the debt
financing expected to be secured by the Mandated Lead Arrangers) or arrange for the disposition of the Akdjol-
Tokhtazan Project; the Company's inability to obtain, maintain, renew and/or extend required licenses, permits,
authorizations and/or approvals from the appropriate regulatory authorities, including (without limitation) the
Company's inability to obtain (or a delay in obtaining) the necessary construction and development permits for
the Karchiga Project and other risks relating to the regulatory frameworks in Kazakhstan and Kyrgyzstan;
adverse changes in the political environments in Kazakhstan and Kyrgyzstan and the laws governing the Company,
its subsidiaries and their respective business activities; inflation; changes in exchange and interest rates;
adverse general market conditions; lack of availability, at a reasonable cost or at all, of equipment or
labour; the inability to attract and retain key management and personnel; the possibility of non-resident class
members commencing individual claims in connection with the Claim; the Company's inability to delineate
additional mineral resources and mineral reserves; and future unforeseen liabilities and other factors
including, but not limited to, those listed under "Risks and Uncertainties" in the Company's MD&A.
Any mineral resource and mineral reserve figures referred to in this press release and the Company's MD&A are
estimates and no assurances can be given that the indicated levels of minerals will be produced. Such estimates
are expressions of judgment based on knowledge, mining experience, analysis of drilling results and industry
practices. Valid estimates made at a given time may significantly change when new information becomes
available. While the Company believes that the mineral resource and mineral reserve estimates in respect of its
properties are well established, by their nature mineral resource and mineral reserve estimates are imprecise
and depend, to a certain extent, upon statistical inferences which may ultimately prove unreliable. If such
mineral resource and mineral reserve estimates are inaccurate or are reduced in the future, this could have a
material adverse impact on the Company. Due to the uncertainty that may be attached to inferred mineral
resources, it cannot be assumed that all or any part of an inferred mineral resource will be upgraded to an
indicated or measured mineral resource as a result of continued exploration. Mineral resources that are not
mineral reserves do not have demonstrated economic viability.
Any forward-looking information speaks only as of the date on which it is made and, except as may be required
by applicable securities laws, the Company disclaims any intent or obligation to update any forward-looking
information, whether as a result of new information, future events or results or otherwise. Although the
Company believes that the assumptions inherent in the forward-looking information are reasonable, forward-
looking information is not a guarantee of future performance and accordingly undue reliance should not be put
on such information due to the inherent uncertainty therein.
-30-
FOR FURTHER INFORMATION PLEASE CONTACT:
Orsu Metals Corporation
Kevin Denham
Chief Financial Officer and Company Secretary
+44 (0) 20 7518 3999
www.orsumetals.com
OR
Canaccord Genuity Limited
Ryan Gaffney/Neil Elliot
+44 (0) 20 7523 8000
OR
Vanguard Shareholder Solutions
+1 604 608 0824
Orsu Metals Corporation
Orsu Metals (LSE:OSU)
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