Company Announcements

Harvest Minerals Limited / Index: LSE / Epic: HMI / Sector: Mining

15 April 2021

Harvest Minerals Limited ('Harvest' or the 'Company')

Q1 2021 KP Fértil® Sales Update

Harvest Minerals Limited, the AIM listed remineraliser producer, is pleased to announce a strong Q1 2021 sales performance for KP Fértil®, an organic, multi-nutrient, direct application natural remineraliser, which the Company produces from its 100% owned Arapua Fertiliser Project in Brazil ('Arapua'). KP Fértil® contains many of the essential nutrients and minerals required by plants and, unlike most fertilisers, can be applied directly to crops without the need for complex processing or chemical alteration.

Highlights:

·    8,872 tonnes of KP Fértil® sold in Q1 2021:

o  more than 10% higher than management budget of 8,000 tonnes

o  represents a 166% increase in total tonnage compared to Q1 2020

·    Q1 sales performance keeps Company on track to meet 2021 sales target

o  In 2020, 82% of the total sales were placed in the second half of the year, which has stronger sales seasonality

·    Further step-up in sales of KP Fértil® targeted:

o  Marketing campaign for coffee, sugarcane, and other crops to be launched in May 2021

o  Expanded sales team and new target regions planned for Q2 2021

Brian McMaster, Chairman of Harvest, said: "We are very pleased with our sales performance over the first quarter of the year, especially during these challenging times as the pandemic continues to impact the lives and overall economic activity within the regions in which we operate. Thankfully, Brazil's agribusiness continues to show why it is considered by many as the "Breadbasket of the World" and the prospects are remaining very favourable. The 8,872 tonnes sold in the period represents a significant increase compared to Q1 2020 and an increase on current budget. We have built a solid platform over the past two years from which to deliver increased growth and I look forward to updating shareholders as we progress in due course."

Review of Operations

During the three first months of 2021, Harvest's sales performance achieved a total volume of 8,872 tonnes sold of its KP Fértil®, representing a 166% increase over the sales realised in Q1 2020, despite the challenges imposed by the pandemic.

In 2020, 82% of the total sales were placed in the second half of the year, which has stronger sales seasonality. This year, Harvest boosted its sales team to eleven associates/agronomists split into two regional teams, which also now counts with the support of a third-party network comprised of 20 resales' centres.  In addition, a marketing campaign for coffee, sugarcane and other crops is planned to be launched in the upcoming month of May 2021.

While we are cautious that the COVID-19 pandemic can potentially impact Brazil's agribusiness activity, so far, the sector continues to persistently grow, and Harvest is well positioned to reap the benefits of a strong agribusiness sector.

As previously reported, some of the key initiatives underway by our marketing and operational teams, include:

·    Sales Marketing campaign to be launched in May 2021 for coffee and other crops.

·    Increased focused on sugarcane plantations given the very positive agronomic test results.

·    Expansion of sales efforts into new crops.

·    Registration with the Minister of Agriculture for sales of KP Fértil® in smaller bags (i.e. 25Kg) to cover the gardening, small producers, general retail markets and resales, which drive higher margins

·    Logistics optimisation plan to enhance the price competitiveness of Harvest's product.

**ENDS**

For further information, please visit www.harvestminerals.net or contact: