African Energy Metals Provides Preliminary Solar and Carbon Credit Projections
African Energy Metals Inc. Suite 1080, 789 West Pender Street, Vancouver, B.C., Canada, V6C 1H2 1
AFRICAN ENERGY METALS PROVIDES PRELIMINARY SOLAR AND CARBON
CREDIT PROJECTIONS
Vancouver, British Columbia - (February 10, 2022) – African Energy Metals Inc. (TSXV:
CUCO; FSE: BC21; OTCQB: NDENF) (“African Energy Metals” or the “Company”) is pleased
to provide an update and preliminary projections for the industrial solar and carbon credit initiative.
African Energy Metals retained EcoMetrix and Inerjys Ventures to assist in the development of a
favorable business case utilizing industrial solar to generate positive revenue and carbon credits
focused on the Democratic Republic of Congo (DRC). EcoMetrix is based in Johannesburg, South
Africa and are experts on carbon credits in Africa. Inerjys Ventures is based in Montreal, Canada
and are a cleantech investment fund. The approach taken by the Company was to develop a viable
business model utilizing sustainable alternate energy to solve an existing problem while generating
carbon credits and providing an Environmental , Social, and Governance (ESG) benefit. The
preliminary financial model indicates these goals can be achieved and provide a significant early-
stage and long-term revenue source for the Company.
Like most African countries , the DRC is lacking dependable power in sufficient quantity due to
an inadequate power grid. As a result, industrial facilities, and in particular mining processing
operations, supplement electrical grid power with diesel generators . In addition to the negative
environmental impacts of burning diesel fuel, the cost per kilowatt-hour (kWh) for diesel generated
power is roughly five time s the cost per k Wh of solar-generated power. African Energy Metals’
business plan will provide a cleaner hybrid solar/diesel/grid power solution for mining processors,
starting with a pilot solar project with a capacity up to 15mW . The business can be expanded to
providing a stand-alone solution by the addition of power storage units. The Company is initially
targeting mining processors through pre-existing relationships with the Company’s DRC
management team and their knowledge of the DRC mining sector.
Preliminary projections:
Multi-project model:
METRICS
Carbon Credits Generated ~ 2,156,605
Pre- tax NPV @ 10% DCF US$170,000,000
Key Assumptions:
• Period: 10 years
• Frequency of projects: One 15mW facility by end of year two, growing at the rate of two
15mW facilities per year to end of year ten
Individual project:
African Energy Metals Inc. Suite 1080, 789 West Pender Street, Vancouver, B.C., Canada, V6C 1H2 2
METRICS
Payback Period > 2 years
IRR 48.6%
Carbon Credits Generated ~ 300,000
Key Assumptions:
• Financing structure: 75% / 25% debt to equity ratio
• Solar capacity: up to 15mW
• Period: 10 years
• CAPEX and OPEX: based on conservative estimates provided by EcoMetrix Africa.
• Carbon credit pricing: starting at US$4/unit and increasing to US$48/unit by 2030, as per
latest carbon market, hybrid voluntary SBTI scenario.
Precautionary Notes: These are preliminary projections and although the Company believes
they are based on the current best available information, actual results may vary significantly
from the projections.
Stephen Barley, Executive Chairman stated: “The carbon credit and alternative green energy sector
is forecasted to be an area of tremendous growth over the next decade as the world strives to meet
carbon emissions targets through decarbonization and electrification. African Energy Metals will
be involved in the discovery of essential energy metals in the resource -rich DRC to supply
increasing demand and will participate in the implementation of sustainable clean solar energy
solutions in the DRC . We are very pleased with the preliminary projections for our solar and
carbon credit efforts as they support the continuation of the program’s development. The Request
for Proposal (RFP) for the initial pilot project should be issued in the next few weeks. The
Company has received expressions of interest from multiple groups to provide engineering,
procurement, and construction (EPC) as well as maintenance services. It is our intention to work
with partners with experience in the solar sector and with relevant experience in Africa. Our
objective is to have an operating pilot solar facility within the next twelve to fourteen months.”
About African Energy Metals
African Energy Metals is a natural resource company with a focus on the acquisition, exploration,
development, and operation of copper, cobalt, and lithium energy metals projects in the DRC. The
Company is implementing a carbon credit program complement ary to mining operations. The
carbon credit program will meet important E SG requirements and present an opportunity for a
significant early and long- term revenue stream. African Energy Metals has the intention of
African Energy Metals Inc. Suite 1080, 789 West Pender Street, Vancouver, B.C., Canada, V6C 1H2 3
acquiring interests in additional concessions or relinquishing concessions in the normal course of
business. African Energy Metals has an experienced management team located in the DRC.
For further information, please contact:
Stephen Barley, Executive Chairman
Phone: (604-834-2968)
Email: [email protected]
Website: www.africanenergymetals.com
Reader Advisory
Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in policies of the TSX Venture
Exchange) accepts responsibility for the adequacy or accuracy of this release.
This news release may contain “forward-looking information” within the meaning of applicable securities laws. Although
the Company believes, considering the experience of its officers and directors, current conditions and expected future
developments and other factors that have been considered appropriate, that the expectations reflected in this forward -
looking information are reasonable, undu e reliance should not be placed on them as the Co mpany can give no assurance
that they will prove to be correct. The financial projections con tained in this statement are bas ed on the best available
information however actual results may vary significantly from the projections. There is no assurance the Company will
complete a pilot solar project in the timelines set out in this statement. There is also no assurance the Company will find
and come to an agreement with a suitable EPC and Maintenance partner. Actual results and developments may differ
materially from those contemplated by these statements. The statements in this press release are made as of the date of
this release. The Co mpany undertakes no obligation to comment on analyses, expectations or s tatements made by third
parties in respect of the Co mpany its securities, or its financial or operating results.