Silver BULL Announces the Closing of the Option Agreement to Acquire the Beskauga Copper-GOLD Project IN Kazakhstan
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January 26, 2021 OTCQB: SVBL, TSX: SVB
SILVER BULL ANNOUNCES THE CLOSING OF THE OPTION AGREEMENT
TO ACQUIRE THE BESKAUGA COPPER-GOLD PROJECT IN KAZAKHSTAN
Vancouver, British Columbia – Silver Bull Resources, Inc. (OTCQB: SVBL, TSX: SVB) (“Silver Bull”) is pleased
to announce it has completed its due diligence and has closed om the option agreement with Copperbelt
AG (“Copperbelt ”), a public, non -listed mineral exploration company registered i n Zug, Switzerland,
regarding their 100% owned Beskauga copper-gold project located in northeastern Kazakhstan.
Highlights of the Agreement
• With the closing of the deal Silver Bull has paid Copperbelt a total of US$70,000 in upfront fees.
• Silver Bull has four years to conduct exploration on the property. Exploration expenditures on
Beskauga and certain other licenses required to keep the option in good standing are US$2 million
in year one, US$3 million in year two, US$5 million in year three and US$5 million in year four, for
a total exploration spend of US$15 million over four years.
• After completing US$15 million in cumulative exploration expenditures Silver Bull can acquire the
Beskauga property for a US$15 million cash payment.
• Copperbelt may receive a bonus payment of up to US$ 32 million should Silver Bull publish a
Bankable Feasibility Study (“BFS”) with a resource of up to 10 million gold equivalent ounces on
the main Beskauga prospect and 5 million gold equivalent ounces on an additional prospect. 20%
of the bonus is paya ble 60 days after publishing a BFS, with the remaining 80% payable on the
commencement of mine construction . Up to 50% of the bonus is payable in common stock of
Silver Bull at Silver Bull’s election.
• Silver Bull will pay a finder’s fee to a third party upon the satisfaction of certain conditions.
Tim Barry, President, CEO and director of Silver Bull states, “We are extremely pleased to close this
agreement with Copperbelt. We believe the Beskauga copper -gold project represents one of the best
exploration opportunities in the world. The high quality work that has been completed on the project to
date indicates that Beskauga is a huge mineralizing system that has considerable upside that has yet to be
explored. We will be working closely with our partners from Copperbelt to quickly and efficiently explore
these areas. In addition to the exploration potential at Beskauga, the project has excellent infrastructure.
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Paved road access and, 1100 KVA power lines, heavy rail, and a highly trained workforce all lie within a 10
kilometer radius. The capital city of Nur-Sultan, located approximately 300 kilometers from the project ,
has a major international airport allowing for easy access and administration of the Beskauga project.
As a mining jurisdiction Kazakhstan is fast becoming a “go to ” place due to its recently updated mining
law and incredible geological prospectivity. In June 2018 the Kazakhstan government implemented a new
mining code based on the mining code used in Western Australia and has reduced a considerable amount
of the administrative burdens for subsoil users . Unlike many g overnments around the world today, the
Kazakh government is very supportive of the mining sector, a view which is highlighted by the fact that
numerous major mining companies have recently set up an office in the country and acquired exploration
licenses. We expect to provide more details about the Beskauga project itself in the coming months.”
About Kazakhstan
Size: Kazakhstan is the ninth largest country in the world, covering 2,717,300 km2, and has a population
of 18.2 million people.
Capital City: The capital city is Nur -Sultan which is located 300 kilometers from the project . Nur-Sultan
has a major international airport allowing for easy access and administration of the Beskauga project.
Mining Law: Kazakhstan adopted a new mining code titled “Code on Surface and Subsoil Use” (the "SSU
Code") on December 27, 2017, that became effective on June 29, 2018. The SSU Code is based o n the
Western Australian model where Kazakhstan moved from a contractual regime to a licensing regime for
solid minerals (except for ura nium). Coincident with the updated SSU law, the Kazakhstan government
also reduced a considerable amount of the administrative burdens for subsoil users.
Tax: A summary of pertinent taxes related to exploration in Kazakhstan is as follows:
• 20% corporate tax
• 12% value-added tax (VAT) is refundable for exploration companies
• 4.7% royalty for copper
• 5% royalty for gold and silver
Geological Prospectivity: Kazakhstan is one of the most prospective countries in the world for a number
of metals. According the United States Geological Survey (USGS) Kazakhstan is;
• 1st in the world for uranium production (41% of world output)
• 2nd in the world for chromite production (18% of world output)
• 4th in the world for titanium production (6% of world output)
• 10th in the world for copper production
In addition, Kazakhstan has significant proven reserves (as yet unmined) of gold, silver, lead, zinc tin, iron
ore, nickel, cobalt, and bauxite
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The Fraser Institute Annual Survey of Mining Companies in 2017, ranked Kazakhstan the 24th best mining
jurisdiction in the world.
Sierra Mojada Update
Silver Bull’s Sierra Mojada project remains under an illegal blockade organized by a Coopera tive of local
Miners called Sociedad Cooperativa de Exploración Minera Mineros Norteños, S.C.L. (“Mineros
Norteños”).
Due to COVID-19 the Mexican court system remains closed and the timing of reopening is uncertain. In
an attempt to force Silver Bull into making a settlement, Mineros Norteños has block ed access to the
project since September 2019. To ensure the safety of all involved, Silver Bull has elected to halt all
operations on the project until a resolution can be found.
The joint venture option with South32 remains in good standing but under a force majeure pause.
About Silver Bull : Silver Bull is a mineral exploration company whose shares are listed on the Toronto
Stock Exchange and trade on the OTCQB in the United States . Silver Bull owns the Sierra Mojada project
which is located 150 kilometers north of the city of Torreon in Coahuila, Mexico, and is highly prospective
for silver and zinc. Sierra Mojada is currently under a joint venture option with South32 International
Investment Holdings Pty Ltd.
On behalf of the Board of Directors
"Tim Barry"
Tim Barry, CPAusIMM
Chief Executive Officer, President and Director
INVESTOR RELATIONS:
+1 604 687 5800
Cautionary note regarding forward looking statements: This news release contains forward- looking statements
regarding future events and Silver Bull's future results that are subject to the safe harbors created under the U.S.
Private Securities Litigation Reform Act of 1995, the Securities Act of 1933, as amended, the Securities Exchange Act
of 1934, as amended, and applicable Canadian securities laws. Forward-looking statements include, among others,
statements regarding the potential payment of a finder’s fee in connection with the Beskauga option agreement, the
potential upside of the Beskauga property, future exploration of the Beskauga area, support of the Kazakh
government of the mining sector, geological prospectivity of Kazakhstan , the potential resolution of the blockade
at Sierra Mojada. These statements are based on current expectations, estimates, forecasts, and projections about
Silver Bull's exploration projects, the industry in which Silver Bull operates and the beliefs and assumptions of Silver
Bull's management. W ords such as "expects," "anticipates," "targets," "goals," "projects," "intends," "plans,"
"believes," "seeks," "estimates," "continues," "may," variations of such words, and similar expressions and references
to future periods, are intended to identify such forward-looking statements. Forward-looking statements are subject
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to a number of assumptions, risks and uncertainties, many of which are beyond our control, including such factors as
the results of exploration activities and whether the results continue to support continued exploration activities,
unexpected variations in ore grade, types and metallurgy, volatility and level of commodity prices, the availability of
sufficient future financing, and other matters discussed under the caption "Risk Factors" in our Annual Report on
Form 10-K for the fiscal year ended October 31, 2019, our Quarterly Reports on Form 10-Q for the interim period s
ended January 31, 2020, April 30, 2020, and July 31, 2020, and our other periodic and current reports filed with the
SEC and available on www.sec.gov and with the Canadian securities commissions available on www.sedar.com.
Readers are cautioned that forward-looking statements are not guarantees of future performance and that actual
results or developments may differ mater ially from those expressed or implied in the forward- looking statements.
Any forward-looking statement made by us in this release is based only on information currently available to us and
speaks only as of the date on which it is made. We undertake no obl igation to publicly update any forward-looking
statement, whether written or oral, that may be made from time to time, whether as a result of new information,
future developments or otherwise.