Contango Hdg Regulatory News (CGO)

Contango Holdings Plc / Index: LSE / Epic: CGO / Sector: Natural Resources

16 February 2022

Contango Holdings Plc

('Contango' or the 'Company')

Garalo-Ntiela Gold Project Update

Contango Holdings Plc, the London listed natural resource development company, is pleased to provide an update relating to operations at the 100%-owned Garalo-Ntiela Gold Project in Mali ('Garalo-Ntiela').

Garalo-Ntiela Gold Project

· Results from aero-magnetic studies have yielded multiple high-grade potential target zones.

· 50% of the ongoing Induced Polarisation ("IP") survey has been completed.

· IP survey, coupled with the results of the aero-magnetic studies and historic drilling will enable the Company to finalise its 2022 drill programme, intended to firm up the targeted resource of 1.8Moz-2Moz gold.

· Since its last update the Company can advise it has also now received approaches from potential domestic and international investors to support the future development of Garalo-Ntiela.

· The Board believes there is significant inherent value at Garalo-Ntiela and would expect any transaction it enters into would need to reflect this.

· Further announcements regarding operational advances and strategic discussions will be made in due course.

Garalo-Ntiela Project Background

The combined Garalo-Ntiela Project covers an area of 161.5km2 and is in the department of Bougouni within the Sikasso region in southern Mali, 200km south-south-east of Bamako and close to the Guinea border. The project is surrounded by several multi-million-ounce gold deposits and the region is home to some of the world's leading gold miners, which has helped to establish Mali as the third largest gold producer in Africa.

An NI 43-101 Independent Technical Report delivered in March 2021 highlighted the potential for the Garalo to have up to 2Moz Resource. The Company believes that there is still room for improvement over and above this threshold as, in addition to G1 and G3 targets (the basis for 2Moz), numerous other clusters of anomalous zones with potential for gold discovery have been identified in both the Garalo and contiguous Ntiela permit area. With this background and given the excellent infrastructure in the vicinity, historical exploration, and the deposit's surface location, the Company believes that the project could support a processing hub, capable of supporting multiple open pit operations.

Carl Esprey, Chief Executive Officer of Contango Holdings, said: "Shareholders will be aware that Garalo-Ntiela has proved to be considerably larger in terms of resource quantum than originally modelled by our team, presenting the Company with a significant opportunity. Given the potential scale of Garalo-Ntiela, the Company has benefited from heightened interest in the project by third parties. Whilst these discussions are at a relatively early stage, it certainly highlights the optionality we have with this project and the international interest which has been generated by our work so far.

"With our Lubu coking coal project in Zimbabwe remaining on track for first production at the end of the current quarter, it is a very exciting period for Contango and I look forward to updating the market on both projects due course."

**ENDS**

For further information, please visit www.contango-holdings-plc.co.uk or contact: