Jervois Mining Quarterly Activities Report to 31 March 2020

HIGHLIGHTS

• Workstreams of ICO Bankable Feasibility Study ("BFS") in final stages; public release delayed due to Covid-19 outbreak

• Jervois received indicative financing proposals for ICO from selected lenders invited to tender; BFS economic outcomes will be provided to potential lender(s) shortly, with revised term sheets to finalise appointment

• RPM appointed as Independent Engineer to act on behalf of lender(s) for ICO debt financing, diligence well underway - site visit delayed due to Covid-19
  
• Jervois has also paused ICO remobilization, pre-construction and field exploration plans in light of Covid-19

• Jess Birtcher appointed Finance Manager for ICO

• Final results from 2019-20 drilling in Uganda continue to expand prospective areas - Ugandan exploration paused due to Covid-19

• Post Covid-19, Jervois restructures operational footprint, Director and Management fees

• Jervois' strong cash position will allow it to finalise ICO BFS and maintain operational footprint for in excess of 12 months
  

• A$7.9 million cash as at 31 March 2020

Melbourne, April 13, 2020 - Jervois Mining Ltd. (ASX: JRV) (TSXV: JRV) (OTCQB: JRVMF) (FSE: IHS) (the "Company" or "Jervois") is pleased to report quarterly activities to March 31, 2020.

CORPORATE UPDATE

Liquidity

Jervois ended the March 2020 quarter with A$7.9 million in cash and no debt. As announced on 17 March 2020, the Company has sufficient liquidity to fund its current operational footprint for more than 12 months. Jervois will release its Australian Securities Exchange ("ASX") Appendix 5B cashflow statement in conjunction with its North American TSX-V quarterly financials later in April.

Fee Restructure

In light of the global Covid-19 pandemic, Jervois focused on aggressively reducing all cash expenditure not related to advancing the project financing of its United States based Idaho Cobalt Operations ("ICO"). As part of the organisational review in response to Covid-19, Jervois' Non-Executive Directors will waive their fees for six months from 1 April 2020 to 30 September 2020. Executive management has been restructured with salary reductions ranging between 30 and 75 percent.

Jervois has both a Long-Term Incentive Plan ("LTIP") and Short-Term Incentive Plan ("STIP") in place to reward and retain key Directors and management.

Jervois has transformed over the past year, with the company completing both the M2 Cobalt Corp and eCobalt Solutions Inc. transactions, pivoting and repositioning its portfolio at a time when competitors were vulnerable. In order to reward employee performance and enhance retention of its Board and management as it brings ICO into production, Jervois's 2019 STIP option allocation was applied effective 1 April 2020.

In recognition of 2019 performance, an expansion of its United States team to support project financing at ICO and the significant reduction in salaries, Jervois awarded 10,438,200 LTIP and STIP options to Executive Management and 2,435,000 STIP options to Non-Executive Directors of the Company, pursuant to the Company's Stock Option Plan approved at the 2019 AGM. Mr Brian Kennedy's Director option allocation also included compensation for his role on the Technical Sub-Committee of the Board. Chief Executive Officer, Mr Bryce Crocker, didn't receive either option allocation.

All options will only vest and become potentially exercisable if the individual concerned remains an employee or Director at three years from grant - or 1 April 2023. Subject to satisfaction of the vesting condition on 1 April 2023, options are exercisable at A$0.15 each (5-day trailing VWAP at award) and will expire on 31 March 2028.

Jervois strongly believes the quality and depth of its Board and management team are critical to finance, construct and transition ICO into operations. Retaining this team is imperative to its success and future shareholder wealth creation.

Grant of options to Directors is subject to Jervois shareholder approval. Jervois will seek this at the Company's 2020 AGM.

ICO Finance Manager Appointment

In March, Jervois announced the appointment of Mr Jess Birtcher as ICO Finance Manager, based in Salmon, Idaho. Mr Birtcher is an experienced resources executive and joins Jervois from Coeur Mining ("Coeur") (NYSE: CDE), which operates five precious metal mines in North America and is listed on the New York Stock Exchange. At Coeur, Mr Birtcher held the roles of Vice President - Internal Audit (from 2017), and Vice President - Corporate Controller (from 2013). Prior to Coeur, Mr Birtcher spent seven years as Finance Director in Rio Tinto's North American business unit and was a senior manager with Ernst & Young for 10 years.

Investor Relations

In January, Jervois Chief Executive Officer Mr Bryce Crocker presented at the TD Securities Mining Conference in Toronto, Canada.

In February Jervois' EGM Corporate Affairs Mr Simon Clarke presented at the 121 Mining Investment conference in Cape Town, South Africa. He attended the conference and hosted 1-1 meetings with institutional investors alongside Idaho Cobalt Operations Project Director Mr Russell Bradford.

Mr Crocker presented again at the BMO 29^th Global Metals & Mining Conference in Hollywood, Florida, USA in February.

Separately, Jervois was also invited to present at PDAC 2020 in Toronto on 2 March 2020. Mr Clarke presented to the Energy Materials and Specialty Products session.

PROJECT UPDATES

Idaho Cobalt Operations ("ICO"), United States

ICO BFS work streams are largely complete. Jervois updated the geological model and Mineral Resource Estimate ("MRE") with data from 2019 drilling, which was audited by CSA Global prior to its public release in January 2020. In the limited period since Jervois took ownership of ICO in July 2019 up to when it demobilised drills due to November snow, it has undertaken over 20 percent more drilling on the main RAM deposit than prior owners undertook in just under 25 years. Both Measured, and Measured + Indicated, categories of MRE increased over 20 percent from prior estimates, with a focus on de-risking ore production in early years of operations, whilst a senior debt facility is envisaged to be outstanding.

The mine schedule was completed, and a tender for contract mining services undertaken to underpin BFS costing. Metallurgical test work including lock cycle work has been completed on representative samples of the ore body and the final reports are being prepared.

Jervois has designed a process plant, developed a 3D model of the operation, and received equipment pricing. Infrastructure and logistics requirements for the project have been assessed and any additional requirements to the well-established site have been costed and incorporated into the BFS. Jervois is optimising and reviewing capital and operating costs, which are in an financial model which shall be released to potential lenders shortly.

Jervois engaged engineering contractor Wood to conduct an independent audit of the permitting status ahead of project financing. Separate to the BFS to produce separate cobalt and copper concentrates, Wood is also advancing a scoping study to understand requirements to economically refine cobalt concentrate within the United States. This study will be finalised alongside the BFS.

Jervois is reviewing its project execution plan and schedule in light of Covid-19 and associated travel and equipment transportation restrictions. Care and maintenance status is already implemented at ICO, so no further immediate actions are required at site as a result of Covid-19. Certain ICO site activities are required during the Northern Hemisphere's 2020 summer for Jervois to maintain its planned Q4 2021 first production date. Jervois is reviewing its plans for these activities in light of Covid-19 and is yet to enter any commitments.

ICO off-take negotiations have been impacted by Covid-19, particularly in Japan and South Korea where travel has been restricted to date in 2020. Jervois continues to prepare and dispatch physical concentrate samples to additional markets and is engaging with customers remotely.

Jervois has decided to delay the public release of the BFS, to take account of the Covid-19 implications for implementation of the project.

In relation to financing, an Information Memoranda was sent to selected senior lenders in December 2019, with Jervois receiving indicative financing proposals the following month. In March, Jervois appointed RPM to act as independent engineer ("IE") for prospective lenders.

RPM has a well-established (50-year) track record of acting as IE for financiers on mining projects globally, including significant base and precious metal experience in North America. The scope of work includes RPM completing an independent due diligence review of ICO and preparing an Independent Technical Expert ("ITE") report in a form suitable for debt financiers of the project. RPM is reviewing the final drafts of the BFS workstreams. RPM's site visit has been delayed due to an inability to safely travel to Idaho.

Despite the significant uncertainty and market volatility created by the Covid-19 pandemic, Jervois remains confident that progressing its debt financing process is the sensible way forward, with the aim of being construction ready for when conditions allow project implementation to proceed. None of the selected shortlisted lenders invited to submit term sheets have indicated Covid-19 prevents them from writing new loans. Covid-19 has vividly demonstrated why United States industry and its supply chains require secure access to physical cobalt without reliance on the Democratic Republic of Congo or China. Restarting construction at ICO will create Idaho employment and demand for United States manufactured capital goods, at a critical period to support post Covid-19 economic recovery.

Ugandan Exploration Properties

In March, Jervois reported final results from 2019-20 drill programmes at its Kilembe and Bujagali area properties in western and central Uganda.

Kilembe Area Properties, Western Uganda

Drilling at the Kilembe Area Properties represented 1,905 metres of diamond drilling across 17 holes in 2019, and another four holes in 2020, representing an additional 465 metres. Fourteen (14) drill hole results were previously reported in January 2020 (ASX announcement 22/01/2020: Jervois Mining 2019 Drill Programme, Uganda)¹, with final drill assays from the remaining holes received and reported in March (ASX announcement 20/03/2020: Exploration Results, Uganda)¹. Programme highlights included:

• 9.9m @ 1.37 grams per tonne gold ("g/t Au") from 29m - hole 19DDHS001
  • Including 0.45m @ 9.98 g/t Au; 0.1 percent copper ("% Cu") from 34.05m
  • Including 1.9m @ 3.59 g/t Au from 37.0m
• 6.1m @ 2.10 g/t Au; 0.24% Cu from 101.3m - hole 20DDHS002
  • Including 1.00m @ 11.50 g/t Au; 1.36% Cu from 102.2m
• 1.0m @ 5.21 g/t Au; 0.73% Cu from 39.3m - hole 19DDHS015
• 8.0m @ 1.26 g/t Au; 0.15% Cu from 64.0m - hole 20DDHS001
• 6.0m @ 1.90 g/t Au; 0.43% Cu from 70.0m - hole 20DDHS002
  • Including 3.1m @ 2.72 g/t Au; 0.63% Cu from 70.9m.

Groundwork at the Kilembe Area Properties, including ground geophysics, soil and rock chip sampling, and prospecting have extended the strike length of mineralisation at surface to more than 6.0km, of which only 1.5km has yet been tested. Newly discovered rock chip samples included 43.5 g/t Au, 10.1 g/t Au and 9.5 g/t Au.

These results continue to expand the prospective areas and improve understanding of mineralization at Ugandan properties and are being used to prepare future field plans.

Bujagali Properties

Drilling at Bujagali targeted the Waragi anomalies detected through earlier geochemical and geophysical programmes, which includes a large (>20km) Cu-Co anomaly. Jervois received all results from its drilling with the final results reported in March. Overall, although target mineralization at Bujagali was intercepted, it was not with the consistency of width nor grade necessary to support a potentially economic resource.

Nico Young Nickel-Cobalt Project, New South Wales, Australia

Jervois continues to engage potential customers and strategic partners for Nico Young, primarily focused around the award of partial off-take in exchange for funding to complete further drilling and a BFS. As with ICO, these discussions have been impacted by travel restrictions arising from Covid-19.

Kabanga Application, Tanzania

In response to a pre-qualification tender announced by Government of Tanzania, as advised in its December quarterly filed in January, during the quarter Jervois submitted a revised offer for the Kabanga nickel-cobalt deposit. Prior to Covid-19 affecting travel, Jervois's executives held a number of meetings with the Government of Tanzania to discuss the offer.

NON-CORE ASSETS

Jervois's non-core assets are summarized on the Company's website. Sale negotiations to rationalize the Company's portfolio continued.

ASX WAIVER INFORMATION

On 6 June 2019, the ASX granted a waiver to Jervois in respect of extending the period to 8 November 2023 in which it may issue new Jervois shares to the eCobalt option holders as part of the eCobalt transaction.

As at 31 March 2020, the following Jervois shares were issued in the quarter on exercise of eCobalt options and the following eCobalt options remain outstanding:

Jervois shares issued in the quarter on exercise of eCobalt options: Nil

eCobalt options remaining*

* The number of options represent the number of Jervois shares that will be issued on exercise. The exercise price represents the price to be paid for the Jervois shares when issued.

By Order of the Board
Bryce Crocker
Chief Executive Officer

For further information, please contact:

Investors and analysts:
Simon Clarke
EGM Corporate Affairs
Jervois Mining
Phone: +1 604 551 9665

Media:
Nathan Ryan
NWR Communications
Phone: +61 420 582 887

Competent Person's Statement

The information in this release that relates to Mineral Exploration is based on information compiled by David Selfe who is full time employee of the company and a Fellow of the Australasian Institute of Mining and Metallurgy and Dean Besserer, P.Geol. who is the GM Exploration for the Company and a member of The Association of Professional Engineers and Geoscientists of Alberta. Both David Selfe and Dean Besserer have sufficient experience which is relevant to the style of mineralization and type of deposit under consideration and to the activity which they are undertaking to qualify as a Competent Person as defined in the 2012 Edition of the 'Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves'. David Selfe and Dean Besserer consent to the inclusion in the release of the matters based on their information in the form and context in which it appears.

Disclosure required for TSX-V Regulations

Qualified Person's Statement

The technical content of this news release has been reviewed and approved by Dean Besserer, P.Geol., who is the GM Exploration for the Company and a Qualified Person as defined by National Instrument 43-101

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 certain "Forward-Looking Statements" within the meaning of the United States Private Securities Litigation Reform Act of 1995 and applicable Canadian securities laws. When used in this news release, the words "anticipate", "believe", "estimate", "expect", "target, "plan", "forecast", "may", "schedule" and other similar words or expressions identify forward-looking statements or information. These forward-looking statements or information may relate to exploration work to be undertaken at ICO or in Uganda, preparation of studies on the ICO, the reliability of third party information, and certain other factors or information. Such statements represent the Company's current views with respect to future events and are necessarily based upon a number of assumptions and estimates that, while considered reasonable by the Company, are inherently subject to significant business, economic, competitive, political and social risks, contingencies and uncertainties. Many factors, both known and unknown, could cause results, performance or achievements to be materially different from the results, performance or achievements that are or may be expressed or implied by such forward-looking statements. The Company does not intend, and does not assume any obligation, to update these forward-looking statements or information to reflect changes in assumptions or changes in circumstances or any other events affections such statements and information other than as required by applicable laws, rules and regulations.

Tenements

Australian Tenements

Uganda Exploration Licences

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¹ In accordance with listing rule 5.23.2, the company confirms it is not aware of any new information or data that materially affects the information included in the relevant market announcements referred to above.

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