Blencowe Resources Regulatory News (BRES)

Date: 4 August 2020 Blencowe Resources

("Blencowe" or the "Company")

Appointment of SGS Lakefield to complete Metallurgical Test Work for Orom-Cross Project

The Company is pleased to announce that further metallurgical test work will commence shortly on its Orom-Cross graphite project in Northern Uganda. This work is critical to understanding the quality of the end-product that Orom-Cross can deliver as a high grade graphite concentrate, as well as what the process flow will look like to achieve this.

Blencowe has recently completed a 69 hole, 1950 meter diamond drilling programme, designed to deliver a maiden JORC Resource for Orom-Cross. Both the drilling and metallurgical test work are integral parts of the development of this Project and both are required prior to commencement of a feasibility study later in the year.

Drillhole samples from the Project are currently in transit to SGS Mwanza (Tanzania) for sample preparation which will prepare samples for grade assays and metallurgical test work.

Following the closure of previous metallurgy partner Metzana, and after evaluation of several organisations, Blencowe is pleased to announce that it has appointed SGS Lakefield (Canada), to conduct further metallurgical assessment of the project. SGS Lakefield have extensive experience in graphite assessment with contribution to over 25 projects in recent years, and several of these have been in East Africa and in similar oxide environments to Orom-Cross.

SGS Lakefield have been commissioned by Blencowe to undertake a metallurgical test work program to confirm Total Graphite Content (TGC) of +95%, high recoveries, concentrate grade and maximising flake sizing. The aim of the additional test work is to confirm the liberation pathway for increased recoveries and higher grade within the concentrate.

Highlights;

The objectives of this Phase Two metallurgical test work are as follows:

· Confirm a 95-97% TGC (Total Graphite Content) pure concentrate is possible with low impurities (Thorium and Vanadium).

· Confirm ~80% recovery is achievable for this concentrate.

· Confirm the liberation process in order to maintain a majority of Jumbo/XL/Large flakes within the concentrate.

· Confirm the process flow diagram for plant design as part of the forthcoming Feasibility Study.

· Deliver bulk concentrate to allow Blencowe to initiate discussions with potential off-take partners.

If Blencowe is able to deliver a concentrate with these properties it will have a graphite product of considerable value. Expected timing to complete this exercise is by the end of 2020 but this remains dependant on business practises remaining normalised with all the challenges Covid-19 presents.

Executive Chairman Cameron Pearce commented;

"The first phase of metallurgical test work completed during the Orom-Cross due diligence exercise provided evidence that the graphite concentrate could achieve minimum standard 94% TGC. This next phase of work is designed to take the product to the next level and is targeting a higher grade 95-97% TCG as well as increased recoveries.

We are confident we can achieve these objectives and thus deliver a high quality product that will be higher up the price curve as well as in greater demand.

Thereafter we intend to use these results to assist with process flow and plant design, whilst at the same time we will have a better understanding of the end-product that we can ultimately sell into world markets."

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Background

Orom-Cross is a potential world class graphite project both by size and end-product quality, with a high component of larger flakes identified from previous work performed. A 21-year Mining Licence was issued by the Ugandan Government in 2019 following extensive historical work on the deposit.

Orom-Cross presents as a large, shallow open pitable deposit, with an estimated resource in excess of 3 billion tonnes of graphite. Development of the resource is expected to benefit from a low strip ratio and free dig operations, thereby ensuring lower operating and capital costs.