GCM Resources plc announced that it is in discussions with Power Construction Corporation of China ("PowerChina"), to agree a 12 month extension of the joint venture agreements announced on 17 January 2019 and 13 January 2020 ("First JV Agreement") and 15 March 2019 ("Second JV Agreement") which are otherwise due to expire on 17 January 2021 and 15 March 2021 respectively. Entering into formal extensions to the First JV Agreement and Second JV Agreement would allow the Company to continue its progress for the development of 4×1,000MW Coal-Fired Power Plant Project ("Power Plant") at the project site. The Power Plant proposed with PowerChina is part of the Company's broader strategy to generate 6,000MW of low-cost electricity for the Bangladesh market utilising domestic coal.

The board of the Company is confident of agreeing such extension terms and a further announcement will be made once an extension is formally entered into.