Keras Resources plc / Index: AIM / Epic: KRS / Sector: Mining

28 June 2024

Keras Resources plc ('Keras' or the 'Company')

Hot Commissioning of Integrated Delta Processing Plant

Keras Resources plc (AIM: KRS) ("Keras") is pleased to announce the commencement of hot commissioning of its Integrated Granulator Plant ("Granulator Plant") at its newly acquired Delta processing facility ("Delta"). Hot commissioning tests each plant component under progressively increasing load conditions until design capacity is reached. The 5 ton per hour "(tph") nameplate capacity Granulator Plant circuit incorporates a high-pressure grinding rolls ("HPGR") mill to initially blend and then reduce feed ingredients to approximately 90mesh (160 micron), the design size fraction for optimal granulation. The downstream granulation circuit includes twin 9.5ft diameter pans with organic liquid binder application, dryer and cooler rotary kilns, dried granule rotary screen and final product radial stacker. The Granulator Plant will be powered using a 600kW diesel generator until 3-phase grid power can be installed which is anticipated within the first year of operation.

As part of the hot commissioning process, the Granulator Plant's liquid circuits - principally the addition of an organic binder and dust control agent, were commissioned and introduced into the milled high grade rock phosphate feed produced from the Company's wholly owned Diamond Creek mine to produce the first granules from the Granulator Plant.

The commencement of hot commissioning of the Granulator Plant is a significant milestone for FIR and the PhoSul Utah LLC JV and starts a new chapter for FIR producing a tested finished product for direct farm application. PhoSul®'s formulation allows for improved Phosphorous availability in the soil, results from field tests have demonstrated significant yield and quality improvements over competitor rock phosphate sources. With current traditional phosphate fertilizer production and use under increased environmental pressure, PhoSul® further helps to solve Phosphorous run-off, a key component of the Company's organic identity.

Graham Stacey, CEO of Keras, commented, "Constant progress towards full load commissioning and refinement of an integrated circuit is always a challenging phase of plant construction and build-up to steady-state production. We're very pleased to have progressed to hot commissioning and production of first organic granules without any material flaws to-date which speaks to the commitment of the construction and commissioning team given the intricacies of the move from Spanish Fork and the integration of the HPGR and granulator circuits in an entirely different configuration. I look forward to updating shareholders as we progress towards steady-state production and sale of organic Phosul® granules, as well as ongoing sales of our internal dry products as we move towards the commencement of year's summer mining season."

The information contained within this announcement is deemed by the Company to constitute inside information as stipulated under Article 7 of the Market Abuse Regulation (EU) No. 596/2014 (as amended) as it forms part of the domestic law of the United Kingdom by virtue of the European Union (Withdrawal) Act 2018 (as amended). Upon the publication of this announcement via the Regulatory Information Service, this inside information is now considered to be in the public domain.

**ENDS**

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Notes:

Keras Resources (AIM: KRS) wholly owns the Diamond Creek organic phosphate mine in Utah, US. Diamond Creek is one of the highest-grade organic phosphate deposits in the US and is a fully integrated mine to market operation with in-house mining and processing facilities. The operation produces a variety of organic phosphate products that can be tailored to customer organic fertiliser requirements.

 The Company is focused on continuing to build market share in the fast-growing US organic fertiliser market and build Diamond Creek into the premier organic phosphate producer in the USI am pleased to provide an update on our progress since the last report and to set out our outlook for the business going forward.