Blencowe Resou. Regulatory News (BRES)

Date: 11 May 2020 Blencowe Resources

("Blencowe" or the "Company")

Recommencement of Phase Two Metallurgical Test Work for Orom-Cross Graphite Project

Blencowe Resources Plc, is pleased to announce it has now recommenced key metallurgical test work on its Orom-Cross graphite project in Northern Uganda. The test work, which began in South Africa at the start of 2020, had been placed on hold for six weeks from late March due to a nationwide lockdown introduced by the government to help combat Covid-19. Blencowe is pleased to report these restrictions have now been partially lifted, allowing for labs to recommence the processing of existing samples from Orom-Cross. This work is being undertaken by technical experts Metanza.

The objective of the ongoing metallurgical test work is to further understand the quality of the end-product that Orom-Cross can deliver, as well as what the process flow will look like. Blencowe believe Orom-Cross has the potential to deliver a high grade graphite concentrate, which would prove desirable to potential offtakers and the broader market.

The Company recently announced that its ongoing 59 hole and 1800 metre diamond drilling programme in Uganda was also due to recommence in the near term, following Covid-19 related shutdown. The drill programme (of which circa 25% has already been completed) is designed to deliver a maiden JORC Resource for Orom-Cross during the middle of 2020. Both the drilling and the metallurgical test work are fully funded and form integral parts of the development of this project. The Company looks forward to both sets of results ahead of the commencement of a feasibility study later in the year.

Phase 2 Metallurgical Testwork Program

In the second half of 2019 Metzana Minerals in South Africa was commissioned to undertake a first phase confirmatory metallurgical test work program to confirm Total Graphite Content (TGC) of at least 94%, and to consider recoveries, impurities and retention of flake size within the concentrate. This was successfully achieved along with confirmation of low impurities.

In February 2020 a resultant second phase test work campaign commenced to build on the positive findings in phase one and to confirm the liberation pathway for increased recoveries and an even higher grade within the concentrate.

The first two (of six) stages for this work was completed prior to Coronavirus lockdown in South Africa, and work is now resuming on the remaining stages as that country re-opens.

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

· Confirm a 95-97% TGC pure concentrate is possible with low impurities (particularly 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. Early results are encouraging with both recovery and grades at higher levels than the first stage testwork program.

Upon completion Blencowe will be able to initiate discussions with various potential offtake parties as regards sale of product, which is a critical part of the overall process to bring Orom-Cross into production.

Likely timing to complete this exercise is approximately three months but this remains dependant on business practises returning to normal in South Africa to allow for work there to continue unhindered.

Cameron Pearce Executive Chairman commented;

"The first phase of metallurgical test work completed during the Orom-Cross due diligence exercise provided evidence that the graphite concentrate could achieve a 94% TGC, which was a highly encouraging result for a first pass, being an acceptable level for sale of product. This next phase of work is designed to take the product to the next level by targeting a higher grade 95-97% TCG as well as increased recoveries. If successful it will significantly increase the desirability and value of the Orom-Cross product. Understanding both the end product and the process flow to deliver this, is a significant step forward in terms of value creation.

We are confident we can achieve our stated objectives and thus deliver a quality product that will be higher up the price curve as well as in greater demand. I look forward to providing further updates in due course."

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About Orom-Cross Project

Orom-Cross is a substantial graphite project in northern Uganda. Blencowe Resources acquired 100% of this asset in April 2020 following extensive due diligence and a capital raise of £2 million in the UK. These funds will be utilised to advance Orom-Cross through to a maiden JORC Resource, followed by a feasibility study and ultimately to a decision to mine.

Orom-Cross has several key characteristics that suggest it can be a standout graphite project; namely considerable size and scale, significant graphite near to surface that suggests low strip ratio for mining and a low cost operation, predominantly large flakes which may yield a high grade, highly sought after concentrate as its end-product, and a lower sovereign risk location as considered in relation to many other similar large graphite projects in Africa.