Province Resources Limited updated shareholders on the progress of metallurgical testwork on samples from the Skåne Vanadium Project, located in southern Sweden. Skåne hosts an Indicated and Inferred Mineral Resource of 116.9 million tonnes at 0.39% V2O5 (61.8Mt at 0.39% V2O5 in the Indicated category and 55.0Mt at 0.39% V2O5 in the Inferred category) at the Hörby Target. As contemplated in the ASX Announcement of 9 December 2021, Grinding Solutions has carried out FEG SEM analysis aimed at determining the deportment of vanadium within the shale-hosted mineralisation and trialled different methods to maximise the extraction of the vanadium into solution.

SEM analysis has revealed that the vanadium is mostly contained within muscovite, with the only other host being rutile (which is only present in trace amounts). The % vanadium within the muscovite is not consistent. As a result separation of the muscovite alone will not result in a vanadium-bearing concentrate suitable for refining and further processing steps are required.

Grinding Solutions trialled flotation as a means of concentrating the vanadium bearing minerals but were unsuccessful in upgrading the vanadium content into concentrate. Previous testwork trialled pressure oxygenation leaching as a concentration method without success. The conclusion is that there is currently no viable process option available for the Skane mineralisation.

Given these findings the Company will defer the techno-economic study referred to in the ASX Announcement of 9 December 2021. The Company will look to carry out further testwork on the Skåne samples however it is likely it will have to seek new and innovative processing options which may assist in unlocking the potential of the project. In addition, Province is pleased to advise that it has received the ruling of The Land and Environment Court of Appeal at Växjö District Court, and that the Court has rejected appeals against the Company's approval to conduct its proposed ten-hole drilling programme at the Tomelilla Target in the Skåne Vanadium Project.

The proposed programme comprises 10 holes in an area where historic drilling reported grades at Fågeltofta-2 (9.7m @ 0.61% V2O5) and Gislövshammar-2 (9.2m @ 0.67% V2O5) and from surface sampling at Flagabro Creek (~10m @ 0.61% V2O5). The programme is designed to test these higher grade areas for mineralisation and the Company hopes to replicate historical results which have been consistent throughout the formation.