Conditional Farm-in to Black Schist Projects

Gunsynd Plc

("Gunsynd" or the "Company")

Conditional Farm-in to Black Schist Projects in Finland

Nickel-Zinc-Copper-Cobalt Deposit Proximal to Large Talvivaara Mine

Gunsynd (AIM: GUN; AQSE: GUN) is pleased to announce it has agreed binding heads of terms with Metals One Plc ("Metals One") to farm into the Black Schist Projects in Finland (the "Projects"), containing a nickel-zinc-copper-cobalt deposit proximal, and analogous, to the large Talvivaara mine.

Gunsynd has agreed to provide funding to Metals One of £1 million for the development of the Project (the "Investment"), for which it will be issued such number of shares in the capital of Finnaust Mining Northern OY ("Finnaust", which holds the Projects), which equal 25% of the voting rights in Finnaust (the "Farm-in").

The Investment is conditional upon Metals One's ordinary shares being admitted to trading on the AIM market of the London Stock Exchange ("Admission") and simultaneous acquisition of Finnaust. Gunsynd will provide the £1 million funding and receive the 25% of Finnaust over a period of 18 months in four equal tranches, beginning on Metals One's Admission and thereafter at six-monthly intervals, to be invested in the development of the Projects.

Black Schist Projects - Finland

The Projects are located in the Kainuu Schist Belt of eastern Finland and contain existing inferred resources of 28.1 Mt nickel-zinc-copper-cobalt (Ni-Zn-Cu-Co). The deposit is analogous to the nearby Talvivaara Ni-Zn-Cu-Co deposit, one of the largest nickel mines in Europe, which has a supply agreement with Renault Group.

The Projects total 7km² and comprisethree permit applications:

· Paltamo - contains a JORC exploration target of 16-24 Mt of Talvivaara type ore containing 0.18-0.27% Ni, 0.09-0.13% Cu, 0.01-0.02% Co and 0.33-0.50% Zn has been estimated

· Rautavaara S - contains a JORC (2012) inferred mineral resource of 28.1 Mt of Talvivaara type ore at a grade of 0.19% Ni (53,800t), 0.10% Cu (27,900t), 0.01% Co (3,400t) and 0.38% Zn (180,000t)

· Rauta 9-11 - application to extend the permit

Metals One believes there is a compelling case forfurther exploration for Talvivaara-style Ni-Zn-Co-Cu deposits.Conditional upon Admission, Metals One has scoped out an intensive 18-month work programme targeting resource expansion, beginning in or around Q3 2022, which will be part-funded by the Investment. The programme will includegeophysical and geochemical surveys to expand the geological knowledge andconfirm targets for approximately 9,000 metres of diamond drilling estimated to begin later this year.

The Projects benefit from historical geophysical, geological, and geochemical data covering large areas of the belt as well as historical geophysical surveys and diamond drilling.

Like the nearby Talvivaara mine, the Projects' northern European location is exceptionally well suited to supplying battery metalsto Europe's electric vehicle and battery manufacturing plants which areseeking to secure local supply chains and minimise the carbon footprint of input materials.

In the six months ended 31 December 2021, Finnaust had turnover of nil and made a profit for the period of £85.

Warrants and Board Representation

In addition to Gunsynd's 25 percent interest in Finnaust, the Company will receive warrants to subscribe for ordinary shares in Metals One valued at £75,000 at the Admission price of Metals One's ordinary shares.

Following settlement of the first Farm-in instalment, Gunsynd will have the right to appoint a director to the board of Finnaust.

Hamish Harris, Chairman of Gunsynd, commented:

"The Black Schist Projects in Finland fit exceptionally well within the mining segment of our investing strategy. The Projects are underpinned by existing resources with significant exploration upside potential, reside within a stable jurisdiction, are well-supported by infrastructure, and are proximal, and analogous, to the giant Talvivaara mine which was profitable in 2018 and 2019 when nickel prices were significantly lower than they are today.

Battery metals are critical to decarbonisation and are facing significant supply deficits. Europe is experiencing significant growth in demand for electric vehicles and its manufacturers need to secure reliable supply chains of battery metals such as nickel. Their northern European location makes the Projects ideally located to supplying battery metals into this market.

We believe we are investing in the Projects at a hugely strategic and advantageous time, ahead of an intensive 18-month exploration programme to which our investment will be applied, and with market dynamics pointing to a continued upward trend in the prices of battery metals. We have a track record of investing in early stage nickel projects, with another of our investments - Pacific Nickel Mines Limited - having earlier this month awarded an offtake and project debt mandate to Glencore. We believe the Black Schist Projects hold similarly exciting potential."

This announcement contains inside information for the purposes of the UK Market Abuse Regulation.

Forward Looking Statements

This announcement contains forward-looking statements relating to expected or anticipated future events and anticipated results that are forward-looking in nature and, as a result, are subject to certain risks and uncertainties, such as general economic, market and business conditions, competition for qualified staff, the regulatory process and actions, technical issues, new legislation, uncertainties resulting from potential delays or changes in plans, uncertainties resulting from working in a new political jurisdiction, uncertainties regarding the results of exploration, uncertainties regarding the timing and granting of prospecting rights, uncertainties regarding the Company's ability to execute and implement future plans, and the occurrence of unexpected events. Actual results achieved may vary from the information provided herein as a result of numerous known and unknown risks and uncertainties and other factors.

The Directors of Gunsynd accept responsibility for this announcement.

For further information please contact:

Gunsynd plc Hamish Harris/ Peter Ruse www.gunsynd.com	+44 (0)7879 584 153
Cairn Financial Advisers LLP James Caithie / Liam Murray	+44 (0)20 7213 0880
Peterhouse Capital Limited Lucy Williams	+44 (0)20 7469 0936

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