Herencia Resources Regulatory News (HER)

Herencia Resources plc

Impressive drill results from Picachos Project

91 metres at 1.42% Copper

Copper mineralisation confirmed at shallow

depth and across all zones drilled

Highlights

· Initial drill results from the Picachos RC drill program has returned extremely encouraging copper grades and mineralisation widths

· Laboratory assay results returned to date include:

o Hole PP14019 91m at 1.42% copper from 19m including:

§ 60m at 1.94% copper from 39m including

§ 20m at 3.10% copper from 76m

o Hole PP14011 25m at 1.24% copper from 111m including:

§ 13m at 1.71% copper from 123m

8m at 1.04% copper from 14m

9m at 1.75% copper from 70m

o Hole PP14004 10m at 1.41% copper from 65m

o Hole PP14009 6m at 1.23% copper from 8m

3m at 1.29% copper from 20m

6m at 1.03% copper from 40m

· Near surface high grades and broad widths of copper mineralisation across most zones drilled strongly support the potential for open pit mining at the Picachos Project

· Picachos Project is located in a region with a proven mineral endowment in close proximity to three operating copper processing plants providing potential toll treatment opportunities

· RC drilling continues with over 3,000m drilled to date

Herencia Resources plc (AIM:HER), the Chile-focussed mineral exploration and development Company, is pleased to advise that the first round of assay results from drilling at its advanced Picachos Copper Project ("Picachos" or the "Project") have returned extremely encouraging results from the first nine holes drilled to date.

Significant laboratory assay results from the first holes include:

40m Shaft zone

· Hole PP14019 91m at 1.42% copper from 19m including;

ü 60m at 1.94% copper from 39m and

ü 20m at 3.10% copper from 76m

· Hole PP14009 6m at 1.23% copper from 8m

3m at 1.29% copper from 20m

6m at 1.03% copper from 40m

· Hole PP14011 9m at 1.75% copper from 70m

25m at 1.24% copper from 111m including;

ü 13m at 1.71% copper from 123m

Leoncito zone

· Hole PP14004 10m at 1.41% copper from 65m

· Hole PP14006 6m at 0.76% copper from 75m

Santa Rosa zone

· Hole PP14008 3m at 1.40% copper from 48m

· Hole PP14012 2m at 1.88% copper from 28m

The drill program is designed to test six key areas that could potentially host open pit style mineralisation. To date three areas have been partially drilled (40m Shaft, Santa Rosa and Leoncito zones) and the results from the first nine holes returned from the laboratory. The QA/QC process used to record the drilling results includes collecting and recording 10kg and 20kg one metre and two metre samples respectively, over the entire length of the drill hole with the one metre samples confined to the mineralised zones. The samples are visually logged by the onsite Company geologists for geology and mineralisation and hand-held XRF ("XRF") samples taken over the mineralised zones. The individual samples are then transported and submitted to an analytical laboratory in Santiago.

Results to date show a good correlation between the XRF and laboratory assay results, providing the geology team with a reliable preliminary guide to the grade and tenor of the mineralisation. To date, the drill program has confirmed high grade copper mineralisation across most zones drill tested. A table of significant assay results reported by the laboratory is shown in Appendix 1.

The current drill program is scheduled to conclude within the next week, with all assay results expected to be received for analysis by the end of June 2014.

Managing Director, Graeme Sloan, commented on the results above:

"This is a great start to the drill program and clearly shows the potential of what we are targeting at Picachos. We are seeking shallow, open pit-able type mineralisation and what we have seen to date definitely fits this category. With the results to date, including the 91m at 1.42% copper and other very good grades and widths, it is really a dream start to the program and we are very excited.

Although we are at an early stage in the drill program, with only nine holes back from the laboratory, the potential for additional wide, high grade zones of mineralisation is very real and I am certainly looking forward to the next round of laboratory results.

If this style and tenor of shallow mineralisation continues, it could potentially be a 'game-changing' milestone for Herencia. We have a number of copper mines operating in very close proximity to Picachos, so the mineral endowment of the immediate area is well recognised.

We will of course await all the assay results from the complete program and will then plan the next step. I believe it is possible to move Picachos quickly along the development path given these initial impressive results and the close proximity of three copper processing plants which may open the door for potential toll treating opportunities negating the time and cost involved in constructing our own processing plant.

I also think it important to remember that the Picachos Project is not located in a remote developing country but in Chile, the home of copper, which produces one-third of global copper production. Picachos is perfectly situated in the middle of the Chilean copper belt surrounded by excellent infrastructure and only 50km from the twin cities of La Serena and Coquimbo (combined population of approximately 400,000) and 8km from Teck Resources Andacollo copper mine."

About the Picachos Project

The Picachos Project is located approximately 50km south east of the coastal city of La Serena, 8km west of both the existing Andacollo copper-gold project operated by Teck Resources and the mining town of Andacollo (population approximately 10,000 people), and 10km south of the privately owned Tambillos copper mine. The Project is very well positioned for infrastructure with existing high voltage power located approximately 3km east of the Project area and serviced by two all-weather access roads.

Small scale mining is currently being undertaken by private miners via small open pit and underground mining operations. Ore is being trucked to a Chilean government owned processing plant (ENAMI plant) where it is processed. This mining will continue up until such time as the Option to fully acquire Picachos is exercised (at Herencia's discretion) and is seen by the Company as an excellent mechanism to achieve geological and grade data across many zones of mineralisation.

A review of available data and Herencia's own geological programs has confirmed multiple zones of mineralisation with a combined strike length of over 8km contained within the Project area. In some areas the close relationship of these zones coupled with multiple occurrences of out-cropping wide zones of mineralisation, highlights the excellent potential for large scale open pit mining to take place at Picachos. Historic mining has focused mainly around the high grade structures, however in some areas the mantos have been mined up to 50m wide. Mineralisation generally commences from one to five metres below the surface and appears open at depth.

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 has a Joint Venture with OZ Minerals at the Guamanga Project where drilling is scheduled to commence this quarter and it has completed a Feasibility Study in relation to its 70% owned Paguanta Project, a high grade silver-zinc-lead project located in northern Chile. The Company's corporate office is located in Perth and the main technical and management office is located in Santiago, Chile where it has been operating for over eight years.

For further information, please contact:

Graeme Sloan, Herencia Resources plc +61 8 9481 4204

Katy Mitchell, WH Ireland Limited +44 161 832 2174

References in this announcement to exploration results and potential have been approved for release by Mr Graeme Sloan (BAppSc Mining Engineering WASM) and Mr Antonio Valverde (Bsc Geology Universidad Complutense de Madrid), who have more than 20 years relevant experience in the field of activity concerned. Mr Sloan is a Member of the Australasian Institute of Mining and Metallurgy. Mr Sloan and Mr Valverde have consented to the inclusion of the material in the form and context in which it appears.

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

**ENDS** 

Appendix 1 - Significant Laboratory Assay Results from 2014 Picachos Drilling Program (received to date):

(All widths stated are down-hole intersections)

· All samples assayed by Andes Analytical Assay Ltda. Chile

· Crushing all sample 80% < 2mm; split to 0.5 Kg; and powdered 95% < 105 µm

· Total Copper Cu-4A-HF AAS1E01 (4 acid near total digestion and atomic absorption, 0.01 - 40%)

· ICP AES HF22 method (22 elements)

· Hole ID co-ordinate grid is WGS84 UTM Zone 19S