Alba Mineral Resources Regulatory News (ALBA)

Alba Mineral Resources plc

("Alba" or the "Company")

26 May 2017

Amitsoq 2017 Field Programme

Targeting Graphite, Gold, Copper and Platinum

The Company is pleased to announce, in respect of Alba's proposed work programme for the coming field season at Amitsoq in Southern Greenland, that the consultation phase with the Mineral and Licensing Safety Authority (MLSA) of Greenland has been completed. Accordingly, Alba is now in a position to undertake the detailed preparations for the field programme which is expected to take place over June and July.

This forthcoming field programme is designed to verify the priority graphite target zones identified in last year's extensive electromagnetic (EM) survey over the licence area, which delineated more than 12 km of strike length. In addition, the programme will target known gold, platinum group element (PGE), nickel and copper anomalisms within the licence which have been identified during an extensive historic data capture exercise undertaken by Alba's technical team involving a review of all historical exploration data available for the licence area.

Highlights

● Graphite will remain the focus of the programme, as Amitsoq's previously announced graphite grades (+25%) remain amongst the highest of any project in the world:

o Graphite exploration will be focused in and around the former mine area at Amitsoq, with geological mapping to verify all graphite beds in the area.

o Verification mapping and sampling will also be undertaken at the highest priority graphite targets outside the former mine area.

● At the same time, exploration will be undertaken of significant gold, platinum group element (PGE) and other anomalisms identified during the course of Alba's historic data capture exercise:

o At the Craig's Dyke, Amitsoq Dyke (East) and Amitsoq Dyke (West) features, the Company will target historic Ni-Cu-PGM showings (previous sampling by GEUS in 1970 returned a combined gold, platinum and palladium grade of 2.4 g/t.

o Bulk Leach Extractable Gold (BLEG) sampling will be undertaken to target alluvial gold at the Nanortalik North and South targets, following historic pan concentrates which confirmed the presence of gold there.

o The highest stream sediment gold sample collected on Amitsoq was 2.01 g/t Au on the western side of Amitsoq island with the highest gold in rock samples from Sondre Sermilik in the northern segment of Alba's licence containing 0.475 g/t.

o The highest copper grade recorded within the Amitsoq licence was 0.28% Cu at the Amitsoq Dyke.

● The field programme will be wholly funded from the Company's existing cash resources.

Description of Field Programme

Verification of graphite targets at mine site

Geological mapping shall be performed in and around the historic mine site in order to accurately determine all graphite beds in the area. Thicknesses, dips and strikes will also be documented and cross-checked against the detailed geophysical data obtained during the extensive airborne electromagnetic (EM) and magnetic survey flown by Alba in late 2016.

Samples of all graphite beds of potentially economic thickness (>1 m) will be collected and submitted for laboratory analysis. All outcrops will be measured for resistivity and susceptibility, and this data again cross-checked against the airborne geophysical data.

Verification of EM graphite targets

A selection of the highest priority EM anomalies situated outside the vicinity of the historic mine site area, anomalies which were discovered in Alba's recent airborne EM survey, will be investigated on the ground in order to characterise and verify the outcrops. All outcrops will be measured for resistivity and susceptibility. Samples will be taken of the outcrop, and a Shaw backpack drill may also be used to obtain samples up to approximately 6 metres in depth.

Geological investigation of Craig's Dyke and Amitsoq Dyke

Mapping and sampling will be undertaken of historic nickel-copper-platinum group metal (Ni-Cu-PGM) showings. Previous sampling by GEUS was encouraging, returning a combined gold, platinum and palladium grade of 2.4 g/t.

Prospecting of Nanortalik North (Perserajuk) and South (Pusardluarnda)

Bulk Leach Extractable Gold (BLEG) samples will be taken in order to determine the presence of alluvial gold in the watercourses that drain the Nanortalik North and South targets. Gold was recorded in pan concentrates in 1988 by Greenex A/S, who recorded one sample containing 222 ppb Au north of the Nanortalik South prospect. These prospects are along strike from the former Nalunaq gold mine.

Other gold targets

The highest stream sediment gold sample collected on Amitsoq was 2.01 g/t Au on the western side of Amitsoq island, during a 1993 reconnaissance expedition by Atlas Precious Metals Inc and NunaOil A/S. The relevant report states that the test results were not received soon enough to permit follow up at the time.

The highest gold in rock samples was collected from Søndre Sermilik in the northern segment of Alba's licence, containing 0.475 g/t. The gold mineralization at Sondre Sermilik was from a quartz veined boulder. The area that the boulder was found is the site of a massive pyrrhotite bed up to 2.5 m in thickness, with a strike length greater than 200 m. The bed contained 0.15% and 0.245% zinc.

These prospective targets will also be visited and sampled during the forthcoming programme.

Field Exploration Timetable

The field programme is expected to be undertaken in June and/or July depending on logistics and availability of field personnel and contractors. The Company is in the process of planning the detailed logistical exercise. Transportation of personnel to key target areas will be undertaken by a combination of boat and helicopter.

The Company's website includes a map outlining the location of the historic sampling results for graphite, gold, copper and PGEs referred to above and an outline of the areas being targeted for exploration in the forthcoming programme.

Further Modelling Completed of EM-Mag Survey Data

As announced by the Company on 30 January 2017, preliminary geophysical processing of Alba's September 2016 airborne electromagnetic and magnetic (EM-Mag) survey data resulted in numerous EM anomalies associated with potential graphite horizons being identified, with a total strike length of 12.05 kilometres. As previously indicated, modelling of the electromagnetic data was then carried out to estimate the depth, dip, orientation and conductive thickness of the EM targets. This processing, which is called Maxwell Plate Modelling and was performed by SkyTEM Geophysical Surveys, Denmark, in conjunction with Alba's geophysical consultant, Jeremy Brett at MPH Consulting Limited in Toronto has now been completed. A significant proportion of the EM anomalies were selected for analysis and resulted in 19 conductive plates, modelled in three dimensions.

These models represent the Company's current best estimate of coherent and continuous graphite beds in the survey area and provide key information for the design of the forthcoming field campaign. The focus of the upcoming field work will be to visit sites where the EM anomalies are projected to outcrop, collect mineralized samples, make field observations and measure ground geophysical properties that can then be used to refine the modelling and clearly define drilling targets in a follow-up field programme.

A selection of images of the models will be uploaded to the Company's website in due course.

George Frangeskides, Alba's Executive Chairman, commented: 

"Since we completed the airborne EM-Mag survey in late 2016, Alba's technical team has been engaged in the painstaking work of processing and re-interpreting the results from the survey. This data has then been set by our team in the context of the significant volume of historical data that exists for the Amitsoq licence area. By analysing and reconciling these different data sets, we have been able to formulate a field programme which hones in on the most prospective and priority targets. This in-house technical work, which goes unseen by the wider public, is an essential if mundane component of every well-run mineral exploration project."

"Our historical data review exercise has highlighted a number of significant targets on our licence, not just for graphite but also for gold, copper and PGEs. As such, we have designed a field programme which will seek to verify these targets, with the objective of going back in and drilling the key targets in a subsequent campaign."

"This field programme will be funded from the Company's existing resources. We look forward to reporting the results over the coming months."

Competent Person's Declaration

The information in this announcement that relates to the geology, exploration results and work programme is based on information compiled by and reviewed by EurGeol Dr Sandy M. Archibald, PGeo, Aurum Exploration Services, who is a Professional Geologist and Member of the Institute of Geologists of Ireland, and a Fellow of the Society of Economic Geologists. He is a geologist with fifteen years' experience in the exploration industry, and ten years post-graduate studies.

Sandy M. Archibald is a Technical Advisor to Alba Mineral Resources plc and has sufficient experience which is relevant to the style of mineralization and type of deposit under consideration, and to the type of activity which he is undertaking to qualify as a Competent Person as defined in the June 2009 Edition of the AIM Note for Mining and Oil & Gas Companies. Sandy M. Archibald consents to the inclusion in the announcement of the matters based on the information in the form and context in which it appears and confirms that this information is accurate and not false or misleading.

This announcement contains inside information for the purposes of Article 7 of EU Regulation 596/2014.

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About Alba

Alba holds a 15 per cent interest in Horse Hill Developments Limited, the company which has a 65 per cent participating interest and operatorship of the Horse Hill oil and gas project (licences PEDL 137 and PEDL 246) in the UK Weald Basin. Alba also has a direct 5% interest in Production Licence 235, which comprises the producing onshore Brockham Oil Field.

Alba owns a 90 per cent interest in the Amitsoq Graphite Project in Southern Greenland and has an option over the remaining 10 per cent.

In addition, the Company has 100 per cent of the Limerick base metal project in the Republic of Ireland and has applied for the reissue of a uranium permit in northern Mauritania, centred on known uranium-bearing showings.

Alba continues actively to review and discuss numerous other project opportunities which have value-enhancing potential for the Company whether by bolt-on or stand-alone acquisition, farm in or joint venture.