Meridian Places Its Espigão Manganese Operations On Care And Maintenance In Response To Weakening World Manganese Prices

Meridian Places Its Espigão Manganese

Operations On Care And Maintenance

In Response To Weakening World Manganese Prices

LONDON

,

Dec. 4, 2019

/CNW/ - Meridian Mining SE (TSX V: MNO) ("Meridian" or the "Company")

today announces, that due to the continued depressed world manganese ore prices, production from

the Company's Espigão d'Oeste Manganese operation ("Espigão Mn") in Rondônia,

Brazil

, will be

immediately be put on temporary Care and Maintenance ("C&M"), while continuing to explore value

maximizing alternatives, including discussions with the Company's major shareholder, Sentient Equity

Partners, and other potentially interested parties.

Manganese ore ("Mn") prices have been under pressure since

April 2019

due to rising inventories in

Chinese ports, depressed manganese alloy prices and general poor market sentiment.

China's

manganese ore port stockpiles are currently at a 12 month high of 4.69 Mt, at the start of 2019 the

stockpile was 2.90 Mt - a ~62% increase.

In parallel with the increasing stocks and since the start of the year, the price for +44% Mn

concentrates CIF Tianjin (

China

) has relentlessly declined from

USD 7.18

to

USD 5.12

; a ~30%

decrease at the 3rd Quarter's end. Subsequent to the Quarter's end, the price weakened rapidly to

USD 3.73

as of today - a ~48% decrease from the start of the year.

"With the continued state of oversupply in the manganese market and no expectation of change on

the immediate horizon, it does not make commercial sense for the Company to continue producing

and selling its high grade Espigão Mn concentrates at a financial loss" said Mr.

Gilbert Clark

,

Meridian Mining's interim CEO. "The Company regrets what it hopes is a temporary impact, that this

action will have on our workforce and other stakeholders and are doing what it can to cushion this,

while ensuring the long-term sustainability of the Company. Meridian is retaining a core

management/operations team (administration, mining, processing, geology and environmental

personnel). We believe these actions will help shield the Company from the current depressed

manganese price and is a long-term approach to the Espigão Mn; and one that will benefit all our

investors and stakeholders as we continue the strategy to build & plan for long-term value. During

this period of C&M for the Espigão Mn, the Company will continue to progress the Espigão

polymetallic and Mirante da Serra manganese exploration projects. For the Espigão mining and

exploration tenements, the evaluation of the polymetallic potential represents a strategic long-term

change in focus."

As a result of the C&M program, there will be a reduction in the number of employees & contractors

within

Brazil

. The Company will commercialise the remaining stocks of Mn concentrates domestically

but will suspend ongoing discussions with potential new customers.

This measure is consistent with other actions the Company has implemented over the past 18

months as part of a deliberate and disciplined strategy to strengthen the Company for the long term.

The Company has optimized operations, avoided selling into weak spot markets, resisted locking-in

long-term sales commitments and significantly reduced costs. However, the collapse in the Mn price

eroded the financial benefits of the modernization program of the last 18 months.

"To date, we have made good progress in reducing costs but unfortunately given the continued

market weakness, more needs to be done", said Mr. Clark. "Meridian can't control the world

market's prices for Manganese, so our focus is on positioning the Company to continue to develop

its strong pipeline of projects (Espigão polymetallic and Mirante da Serra manganese) that have

potentially, a wholly different set of economic parameters, while completing its local commitments."

On behalf of the Board of Directors of Meridian Mining SE

Gilbert Clark

Interim CEO, President and Director

Qualified person

The technical information about the Company's exploration activity has been prepared under the

supervision of and verified by Dr.

Adrian McArthur

(B.Sc. Hons, PhD. FAusIMM), the Chief Geologist

of Meridian Mining, who is a "qualified person" within the meaning of National Instrument 43-101.

ABOUT MERIDIAN

Meridian Mining SE is focused on the acquisition, exploration, development and mining activities in

Brazil

. The Company is currently focused on exploring and developing the Espigao polymetallic

project, the Mirante da Serra manganese project and the Ariquemes tin exploration portfolio in the

state of Rondônia,

Brazil

.

Further information can be found at

www.meridianmining.co

FORWARD-LOOKING STATEMENTS

Some statements in this news release contain forward-looking information or forward-looking

statements for the purposes of applicable securities laws. These statements include, among others,

statements with respect to the Company's plans for exploration and development of its properties

and potential mineralization. These statements address future events and conditions and, as such,

involve known and unknown risks, uncertainties and other factors, which may cause the actual

results, performance or achievements to be materially different from any future results, performance

or achievements expressed or implied by the statements. Such risk factors include, among others,

failure to obtain regulatory approvals, failure to complete anticipated transactions, the timing and

success of future exploration and development activities, exploration and development risks, title

matters, inability to obtain any required third party consents, operating hazards, metal prices,

political and economic factors, competitive factors, general economic conditions, relationships with

strategic partners, governmental regulation and supervision, seasonality, technological change,

industry practices and one-time events. In making the forward-looking statements, the Company

has applied several material assumptions including, but not limited to, the assumptions that: (1) the

proposed exploration and development of mineral projects will proceed as planned; (2) market

fundamentals will result in sustained metals and minerals prices and (3) any additional financing

needed will be available on reasonable terms. The Company expressly disclaims any intention or

obligation to update or revise any forward-looking statements whether as a result of new

information, future events or otherwise except as otherwise required by applicable securities

legislation.

The Company cautions that it has not completed any feasibility studies on any of its mineral

properties, and no mineral reserve estimate has been established. In particular, because the

Company's production decision relating to Meridian Mineraçao Jaburi S.A, manganese project is not

based upon a feasibility study of mineral reserves, the economic and technical viability of the

Espigão manganese project has not been established.

The TSX Venture Exchange has neither approved nor disapproved the contents of this news release.

Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the

policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this

release.

SOURCE

Meridian Mining S.E.

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For further information:

Jonathan Richards, +1 604-681-0405, [email protected]

CO: Meridian Mining S.E.

CNW 16:30e 04-DEC-19