Herencia Resources Regulatory News (HER)

Herencia Resources plc

("Herencia" or the "Company")

Herencia Secures US$300,000 Funding

Copper Exploration to Commence Shortly

Herencia Resources plc is pleased to advise that it has executed term sheets for the provision of US$300,000. The funding has been provided from its key shareholders, the Australian Special Opportunity Fund ("Lind Partners") and Oriental Darius Co. Ltd ("Oriental"). It is intended that the funds will be provided equally by the Shareholders ( US$150,000 each).

Commenting on the financing Herencia Chairman, Mr Peter Reeve said, " Herencia is very pleased for the ongoing support of its key shareholders and their commitment to the Herencia story through all the companies recent restructuring. This commitment is testament to the strength of the core resources story within Herencia which centres around the very strong potential of its lightly explored copper tenements".

"The copper market remains resurgent and this provides Herencia and its shareholders great exposure to this market particularly with the impending drilling program", Mr Reeve said.

Details of the Financing

Capital of US$300,000 will be provided to the Company by the Shareholders by way of a secured convertible facility with a Face Value of $350,000 ("Face Value"), the agreed amount to be repaid by the Company over the 12 month term of the agreement.

The Convertible Security has the same conditions as announced on 5th April 2016. Herencia (AIM: HER) announces that Lind Partners and Darius may each exercise its right to convert US$150,000 of convertible loan notes into shares at an exercise price of £0.0012 ("Conversion") or some 4 times higher than the current share price. Pursuant to the Conversion, new ordinary shares of 0.12p each ("Ordinary Shares"), will be admitted to trading on AIM.

The funds raised will be used to advance the drill programme and for working capital purposes.

Notification of Lind Partners Interest

If Lind Partners convert the New Ordinary Shares granted under this loan arrangement, Lind will hold 1,995,631,731 Ordinary Shares representing 21.41% of the issued share capital of the Company.

In addition, the Company has agreed with the Takeover Panel that Lind is acting in concert with the following individuals/entities, who were introduced by Lind at the previous placing on 27 April 2017.

1. Mr. John Hancock (0.25%)

2. Mr Martin Rogers (0.62%)

3. Abundance Partners LP (1.43%)

(together, with Lind, the "Concert Party")

The Concert Party have a current total in interest in 2,202,892,842 Ordinary Shares, representing 23.64% of the issued share capital of the Company.

As set out on 19 October 2016, if Lind Partners was to convert all its convertible interests in the Company, including those interests set out in this announcement, then in addition to its current shareholding it will hold 4,046,309,731 Ordinary Shares representing 43.62% of the total issued share capital of the Company and, with the Concert Party 45.84% of the issued share capital of the Company.

Notification of Oriental Interest

If Oriental convert the New Ordinary Shares granted under this loan arrangement, Oriental will hold 1,847,542,008 Ordinary Shares, representing approximately 19.83% of the Company's enlarged issue share capital.

As set out on 19 October 2016, if Oriental was to convert all its convertible interests in the Company, including those interests set out in this announcement, then in addition to its current shareholding it will hold 3,894,547,313 Ordinary Shares representing 41.79% of the total issued share capital of the Company.

Related Party Approval

As Lind Partners is a substantial shareholder, the agreement with Lind Partners is a Related Party Transaction under AIM Rule 13 to the AIM Rules for Companies, and the directors of the Company, having consulted with its Nominated Adviser, WH Ireland Limited, consider that the terms of the agreement with Lind Partners is fair and reasonable insofar as its shareholders are concerned

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