Alba Mineral Resources Regulatory News (ALBA)

Alba Mineral Resources plc

("Alba" or the "Company")

Horse Hill Portland extended well test ("EWT") successfully completed,

Kimmeridge EWT to commence

Alba (AIM: ALBA) is pleased to announce that it has been informed by Horse Hill Developments Ltd ("HHDL" or the "Operator"), the operator of the Horse Hill-1 ("HH-1") Kimmeridge and Portland oil discovery, located in licence PEDL137, in which Alba holds an 11.765% beneficial interest, that the final Portland EWT sequence has been successfully completed and that all Portland operational test objectives were achieved.

The Operator has advised that following the completion of a final long duration pressure build up test, preparations for the primary Kimmeridge EWT are now underway. The Kimmeridge EWT's goal is to establish the commerciality of the underlying KL3 and KL4 oil pools, which in 2016 flowed 40 API crude naturally to surface at an aggregate implied stable dry oil rate of 1,365 bopd. Further updates will be provided as the Kimmeridge EWT progresses.

Alba has been further advised that:

· The final HH-1 Portland flow test sequence was successfully completed, with all Portland operational objectives achieved.

· The successful Portland re-perforation programme targeted 114 feet of oil pay, adding 14 feet of new pay. Following re-perforation, well productivity increased by up to 65%.

· Independent oil consultants Xodus Group's ("Xodus") preliminary analysis of flow and pressure data interprets that, subject to successful further HH-1 Portland vertical well optimisation, the well is capable of achieving a forecast initial 24/7 pumped rate of an estimated 362 barrels of oil ("bopd")*.

· Given the results to date, plans are now being formulated to drill either the HH-1z sidetrack or HH-2 new drill as a horizontal Portland appraisal well, with a targeted daily production rate of two to three times* the forecast potential HH-1 vertical well rate of 362 bopd*. All planning permissions, Environment Agency permits and the HH-2 well cellar are in place for a horizontal well.

· Economic modelling indicates that HH-1 Portland is robustly commercial at an observed sustainable daily rate of 140 bopd post-reperforation and at oil prices of $60 per barrel. A formal HHDL declaration of Portland commerciality is therefore expected shortly following receipt of Xodus' final connected oil volume analysis. A planning application for long term production is planned to be submitted to Surrey County Council shortly before the completion of the forthcoming Kimmeridge EWT programme expected at the end of the year. Full-scale long-term production, targeted for 2019, is subject to co-venturer and regulatory approvals.

· All 36° API Brent quality oil produced during the EWT is "dry", containing only 0.02% water.

· Preparation for the primary EWT objective, to establish the commerciality of the Kimmeridge Limestone 3 ("KL3") and KL4 oil pools underlying the Portland, has now commenced.

· Kimmeridge testing will begin in the uppermost KL4 oil pool immediately following the removal of two suspension plugs and installation of a new completion string straddling the two Kimmeridge oil pools.

Note: * There can be no guarantee that forecast, targeted or calculated rates of production will be achieved.

George Frangeskides, Alba's Executive Chairman, commented:

"We are very pleased to receive this positive preliminary report on the completion of the final HH-1 Portland flow test sequence and to learn that the Portland is on track for a declaration of commerciality, subject to receipt of the final connected oil volume analysis from HHDL's external consultants, Xodus."

"We note the exciting plans which are now being formulated to drill either the HH-1z sidetrack or HH-2 new drill as a horizontal Portland appraisal well. The Operator is to be congratulated on its foresight in applying for and obtaining all planning permissions and Environment Agency permits for a horizontal well, which will assist greatly in moving those plans forward at pace."

"We now await the imminent start of the Kimmeridge test programme, the goal of which is to establish the commerciality of the underlying KL3 and KL4 oil pools which flowed so productively in the short 2016 test programme."

Additional EWT Information

Alba has also been advised by the Operator that:

- during the well flow periods, intermittent natural flow was evident, with metered rates at the separator exceeding the nominal pumped volume by up to 50 bopd, with the highest rate recorded of 191 bopd. Gas rates at the test separator and through the enclosed flare remained broadly constant at around 15,000 cubic feet per day.

- throughout testing, sustained pumped oil rates were recorded with stable bottom hole pressures of around 200 psi below the initial reservoir pressure of around 915 psi. Following shut-in periods, bottom hole pressures recovered rapidly back to initial reservoir pressure, indicating good connectivity within the Portland oil pool. The observed pressure response during the EWT is interpreted to have positive implications for oil recovery efficiency during planned future long-term production.

- Xodus are an international, globally recognised consultancy group providing engineering and advisory services to clients in the oil & gas, LNG, renewables and utilities industries worldwide. They are certified as Competent Persons for the purposes of oil and gas resource and reserve assessments. More details can be found at www.xodusgroup.com

Qualified Person's Statement

The technical information contained in this announcement has been reviewed and approved by Feroz Sultan (B.Sc (Hons) Geology, M.Sc, Petroleum and Structural Geology, Karachi and M.Sc Petroleum Geology, Imperial College London), a petroleum geologist with over 45 years' experience in the management, exploration, development and production of oil and gas.

The information contained within this announcement is deemed by the Company to constitute inside information under the Market Abuse Regulation (EU) No. 596/2014.

For further information please contact:

Alba Mineral Resources plc

George Frangeskides, Executive Chairman +44 20 7264 4366

Cairn Financial Advisers LLP (Nomad)

James Caithie / Liam Murray +44 20 7213 0880

First Equity Limited (Broker)

Jason Robertson +44 20 7374 2212

Alba's Project Portfolio

Mining

Amitsoq (Graphite, Greenland): 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.

Clogau (Gold, Wales): Alba owns a 90 per cent interest in Gold Mines of Wales Limited ("GMOW"), the ultimate owner of the Clogau Gold project situated in the Dolgellau Gold Belt in Wales.

Inglefield Land (Copper, Cobalt, Gold): Alba owns 100 per cent of mineral exploration licence 2017/40 in north-west Greenland.

Limerick (Base Metals, Ireland): Alba owns 100 per cent of the Limerick base metal project in the Republic of Ireland.

Melville Bay (Iron Ore, Greenland): Alba is entitled to a 51 per cent interest in mineral exploration licence 2017/41 in Melville Bay, north-west Greenland. The licence area benefits from an existing inferred JORC resource of 67 Mt @ 31.4% Fe.

Thule Black Sands (Ilmenite, Greenland): Alba owns 100 per cent of mineral exploration licences 2017/29 and 2017/39 in the Thule region, north-west Greenland.

Oil & Gas

Brockham (Oil & Gas, UK): Alba has a direct 5 per cent interest in Production Licence 235, which comprises the previously producing onshore Brockham Oil Field.

Horse Hill (Oil & Gas, UK): Alba holds a 18.1 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.

Web: www.albamineralresources.com