Herencia Resources Regulatory News (HER)

Herencia Resources plc

("Herencia" or the "Company")

Board Changes

Working Capital Update

Highlights

· Further to the announcement of 1 September 2016, the Company is pleased to advise Mr Peter Reeve and Mr Jeffrey Williams have been appointed as Non-Executive Director and Executive Director of the Company with immediate effect.

· Herencia is discussing potential funding in the near term to support the Company's activities.

· New Board members intend to reinvigorate the Chilean exploration program with its focus on the Picachos /Pastizal tenements and manage the immediate creditors.

· As part of the Board structure, John Russell and Managing Director, Mr Graeme Sloan will retire from the Board with immediate effect.

· It is intended that Mr Peter Reeve will assume the role of Chairman shortly.

· Performance based incentive plan for Mr Peter Reeve and Mr Jeffrey Williams will be proposed shortly.

_________________________________________________________________________________

New Board members with mining experience

Mr Reeve and Mr Williams bring a wide range of skills and experience to the Board with the appointments part of the restructure process to re-establish Herencia as a viable junior exploration and development company.

Peter Reeve

Peter Desmond Reeve (aged 55) has been involved in the resources industry for over 30 years and, as a professional metallurgist, has held positions with Rio Tinto, Shell-Billiton, Newcrest Mining and Ivanhoe Australia which he co-founded.

Further details of his experience is contained in the Company's announcement dated 1 September 2016.

In addition to the current and past directorships disclosed in the announcement dated 1 September 2016, Peter is also currently a director of Eliza Creek Mines Limited, Exco Operations (SA) Limited and GTM Africa Uranium Limited (as subsidiaries of Copperchem Limited).

There is no further information required to be disclosed in respect of Mr Reeve pursuant to Rule 17 or Schedule 1, paragraph (g) of the AIM Rules for Companies.

Jeff Williams

Jeffrey Wayne Williams has spent over 40 years in the industry, has worked as a professional mining engineer and has experience in the equity markets. Mr Williams has extensive experience in strategic development including, mine planning, feasibility studies and mine development. From 1972 to 1984, he held various positions with CRA Limited at Broken Hill in Australia and in 1987 completed a Masters of Business Administration (MBA) following which he and played a major role as a Senior Project Engineer with North Limited.

Mr Williams was the Managing Director of Mineral Deposits Ltd for 15 years, resigning in late 2011. While at Mineral Deposits Ltd he secured the Sabodala gold and Grande Cote zircon projects in Senegal, west Africa, and commenced gold production at Sabodala, in March 2009. The market capitalisation of Mineral Deposits Limited increased from AUD$6 million in 2003 to over AUD$1,000 million in 2011.

Mr Williams has since been involved in several smaller mining companies on the ASX to develop exploration plans mostly in Australia and is currently Managing Director of MacPhersons Resources Ltd. Mr Williams is a Fellow of the Australasian Institute of Mining and Metallurgy.

A list of companies, Mr Williams (aged 63) has been a director or partner in the last 5 years is set out at the end of this announcement:

There is no further information required to be disclosed in respect of Mr Williams pursuant to Rule 17 or Schedule 1, paragraph (g) of the AIM Rules for Companies.

The Honourable John Moore AO said:

"On behalf of the Board and shareholders, I would like to sincerely welcome Peter and Jeff to the board of Herencia Resources plc. They bring a wide range of skills to the Board including a strong background in corporate affairs, a network of private and institutional investors and importantly, experience in taking projects from early stage through to production, all of which will be invaluable in contributing to the successful restructure of the Company. This is an important time for Herencia and, with the industry as a whole showing signs of improvement, the appointment of Peter and Jeff will provide Herencia further impetus in helping reshape the Company and progress the company's key assets"

Possible Fundraising and Working Capital Position

The new Directors are working with existing and new shareholders to secure additional capital for the Company. It is intended that the longer term major shareholders, Lind Partners and Oriental Darius will provide additional funding, demonstrating their belief in the Herencia asset base in Chile. This funding is expected to be concluded in the coming weeks.

The Company confirms that due to conservative cash conservation, its working capital position remains satisfactory until approximately mid-April 2017 however, if the larger funding package referenced above is not advanced, and if no further source of funds can be found, it is unlikely that the Company will be able to continue to trade after this time.

Resignation of Directors

The Company confirms that Graeme Sloan and John Russell have tendered their resignation as directors of the Company with immediate effect. The Company acknowledges the efforts of Mr Russell as a founding Director of the company and Mr Sloan for their efforts over a long period of time for Herencia

Jeff Williams Directorships

About Herencia

Herencia Resources plc is an AIM quoted exploration and development company operating in Chile. In addition to the Picachos Copper Project, the Company also has the Guamanga Copper Project and the La Serena Project. As part of an ongoing cost reduction program, the Company's office located in Perth has been closed and its Chilean office and workforce restructured. The Company still maintains a strong albeit much smaller technical and management team in Santiago, Chile where it has been operating for over eight years.

For further information please contact:

Peter Reeve, Herencia Resources plc +61 3 516 6500

Jeff Williams, Herencia Resources plc +61 3 516 6500

Katy Mitchell, WH Ireland Limited (NOMAD) +44 161 832 2174

Further background details on the Company can be found at www.herenciaresources.com