Bezant Resources PLC Regulatory News (BZT)

8 March 2017

Bezant Resources Plc

("Bezant" or the "Company")

Independent scoping study completed for Choco alluvial

gold-platinum project, Colombia

Bezant (AIM: BZT), the AIM quoted mineral exploration and development company, announces that, further to its announcement of 24 January 2017, it has received from INGEX Grupo Minero SAS ("INGEX") their scoping study on the cost estimates and financial model for the Company's Choco alluvial gold-platinum project in Western Colombia (the "Choco Project").

Highlights:

· Study confirms the technical and economic feasibility of alluvial platinum (Pt) and gold (Au) production at the Choco Project based on historical data and drilling results

· Financial modelling based on stage 1 production using a single plant operation with a plant processing rate of 1,800m3/day ("Stage 1 Production")

· Comprehensive cost analysis and financial model has enabled, inter alia, the calculation of the following key estimated parameters for Stage 1 Production over a 12 month operational period:

o US$768 per ounce total cost of production for platinum and gold recoveries

o US$6.01/m3 (US$4.29/tonne) total average mining and processing cost

o 0.17 grammes per tonne (238mg/m3) break-even grade for combined Pt and Au; and

o annual platinum and gold production of 2,200 ounces and 1,467 ounces, respectively

· Principal underlying assumptions applied in the financial model include:

o combined Pt and Au grade of 300mg/m3 for processed material based on an assessment of historic third party mining operations and drilling data;

o current metals prices (US$965 per ounce of platinum and US$1,176 per ounce of gold); and

o a discount rate of 10%

· Estimated post tax profit, NPV, IRR and costs per ounce for both a 12 month and 5 year single plant operation are summarised below:

· Financial model did not incorporate any projections for future expansion via a possible multiple plant growth strategy

Commenting today, Ed Nealon, Chairman of Bezant, said:

"The scoping study, with its sensitised cost analysis and financial model, confirms the low-cost platinum and gold potential for the Choco Project via a staged development approach. I believe that through this staged approach Bezant can become a significant platinum and gold producer. The estimated 5-year average production costs of approximately US$700 per ounce for both platinum and gold produced, was better than anticipated and we believe represents some of the lowest platinum production costs in the world. The study only modelled stage 1 of the project, being a single plant operation and the planned staged addition of other plants will greatly enhance our production profile."

Introduction

As announced on 24 January 2017, Bezant commissioned INGEX to prepare a scoping study, incorporating a financial model and cost analysis associated with the development of an alluvial platinum and gold mining project in the Choco Province, Colombia, based on both new and historic information on the FKJ-083 licence area and comparative alluvial operations in Colombia. INGEX (www.ingexgrupominero.com) is an independent Colombian based mining consultancy with expertise over a wide range of mining related fields including, geology, exploration, mine engineering, occupational health and safety as well as environmental aspects. The cost estimates were primarily based on the verification of data and assumptions provided by the Company's mining contract partner in Colombia, Exumax SAS.

INGEX's study assumed a single plant alluvial mining operation and incorporated cost models from comparative historic and current exploration operations in the Choco Province. Accordingly, it did not take into account any planned future expansion of the Choco Project via a future multiple-plant growth strategy.

The study focused on a 12 month Stage 1 Production operation but also developed a financial model for 2 year and 5 year scenarios for a single plant production operation based on the Company's strategy to further develop the areas it can mine through the exercise of existing options and development of its pending mining title application.

Summary cost analysis

The study included a comprehensive cost analysis for Stage 1 Production based on a static single plant operation, with the following main cost categories:

The study calculated an estimated total annual production of 2,200 recoverable ounces of platinum and 1,467 recoverable ounces of gold and a processing rate of 1,800 m3/day.

The study also detailed the mining, processing and rehabilitation processes and transport distances. A 50 per cent. stripping and processing ratio and combined Pt and Au grade of 300mg/m3 for processed material were calculated for the project. The combined grade was based on an assessment of historic third party mining and drilling data from more than 1.3 million cubic metres of material and the sampling of 70 boreholes located in the area of direct influence for the FKJ-083 licence area.

Summary of Financial Analysis

The study focused primarily on the FKJ-083 mining licence area due to the abovementioned historical mining information and drilling data available in respect of the licence, which facilitated the modelling process and assumptions applied. However, Bezant and Exumax are confident that the results of the study can be applied to similar gravels on similar areas outside of the FKJ-083 licence area. INGEX's sensitised financial model was centred around a single near-surface dry mining plant with a processing rate of 1,800m3/day.

The key modelling parameters were:

Summary outputs from the financial model were:

Further to the findings of the scoping study, Bezant believes that an initial production plant can be mobilised, brought into production and be capable of achieving initial operational profits within twelve months of commencing operations. Whilst awaiting further gold and platinum sampling results, which will be announced in due course, the Company is currently in discussions with Exumax over potential viable development sequences for H1 2017. With hard rock platinum producers operating in locations such as the Bushveld complex in South Africa at a break even point of around US$1,000/oz for platinum group metals, the Board believes that the Choco Project, with its near-surface, free metal can viably host low capex production expansion with sustainable margins.

Dr Bernard Olivier has reviewed and approved the technical information contained within this announcement in his capacity as a qualified person, as required under the AIM rules. Dr Olivier is Chief Executive Officer of the Company and a Member of the Australasian Institute of Mining and Metallurgy.

For further information, please contact:

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

Note to Editors:

Exumax (www.exumax.co) is a Colombian based mine operating Company with over 6 years mine operating experience in Colombia and has a well-established Colombian based team that can provide turnkey exploration solutions to Bezant's wholly owned Colombian subsidiary, Ulloa Recursos Naturales SAS. The principals of Exumax have over 50 years' of combined operating experience in the mining and construction industry in South America and in this period have developed extensive proprietary mining expertise. Exumax own and have imported special purpose alluvial mining equipment from New Zealand, where such operations are common, for use in low-cost alluvial extraction projects focused on precious metals. Exumax have operated a series of alluvial projects in Colombia and prioritise community relations and environmental management work as key components to building successful mining operations in-country.

Glossary of technical terms: