Herencia Resources Regulatory News (HER)

Herencia Resources plc

Extensions to the high grade Cathedral vein and the New vein at the Paguanta Project

 (Paguanta Zinc-Lead-Silver-Gold Project in Northern Chile)

Highlights:

·; Assays results received from a further four holes in current diamond drilling campaign

·; Depth and strike extension to the high grade Cathedral vein confirmed

·; 'New' vein mineralisation continues to be intersected by diamond drill holes

·; Gold assay results continue to be achieved

·; JV approval granted to extend current drill program by an additional 2,000m

·; Additional drilling to be funded by the £750,000 recently received from Nyrstar

Further to the Company's announcement of 26 March 2010, Herencia Resources Plc (AIM: HER) is pleased to advise that assay results have been received from a further four holes in the current diamond drill program at the Company's flagship Paguanta Project in northern Chile.

Hole PTDD041 successfully intersected high grade bands of mineralisation associated with the Cathedral vein effectively extending this vein at depth by approximately 40m. Broad zones of mineralisation, ranging in intensity from weak to strong and in excess of 70m, were intersected down this hole. The best intersection was as follows:

·; PTDD041 - 10m @ 5.75% zinc, 2.41% lead, 126.30g/t silver and 0.27g/t gold from 185m

including 3.25m @ 11.99% zinc, 4.52% lead, 230.37g/t silver and 0.56g/t gold

The results from hole PTDD038, which intersected both the Cathedral vein and the New vein, appear to have confirmed positive results previously returned from hole PTDD037 in the Cathedral vein. It also appears to have extended the 'new' vein by approximately 50m to the west giving this vein a current strike length of approximately 150m, with mineralisation remaining open along strike and at depth. The New vein and Cathedral vein intercepts in this hole were as follows:

·; PTDD038 - 3.8m @ 2.91% zinc, 1.23% lead, 68.00g/t silver and 0.30g/t gold from 110.2m

including 1.6m @ 4.99% zinc, 1.90% lead, 102.30g/t silver and 0.44g/t gold (New vein)

·; PTDD038 - 2.5m @ 5.59% zinc, 0.78% lead, 71.41g/t silver and 0.22g/t gold from 274.4m

including 0.8m @ 10.45% zinc, 0.92% lead, 100.55g/t silver and 0.31g/t gold (Cathedral vein)

Table 1 provides further information in relation to the holes drilled in the current program.

Gold assays continue to be returned from the drilling campaign with the best grade within hole PTDD038 being 0.9m @ 1.42g/t gold from 244.45m.

Given the positive results seen to date, Herencia and its JV partner have now agreed to undertake a further 2,000m of diamond drilling at Paguanta. This additional drilling will further evaluate the 'new' vein along strike and down dip and has the potential to add tonnes and grade to the Mineral Resource Estimate.

The drill program is now scheduled to be complete by late June. It is anticipated that all assay results will be returned by end-July 2010 with an update to the Company's Mineral Resource Estimate expected by late August/early September 2010. The additional drilling is to be funded from the £750,000 subscription proceeds recently received from Nyrstar. 

Commenting on the current status, Managing Director Michael Bohm stated:

"The Company continues to intersect high grade mineralisation from drilling at Paguanta, the drill program remains on time and on budget and we are well funded. We have well established and supportive cornerstone shareholders and the broader market is starting to warm to the theme that zinc is a commodity to have on the radar. We remain focused on advancing the Paguanta Project toward development and look forward to extending the drill program".

Table 1 - Results to date from the 2010 drill program at Paguanta Project:

Metreage quoted relate to down-hole intersections

All holes assayed by ALS La Serena 1kg 85% passing 75 micron HF-HNO3 - HClO4 digest

AAS AA26 ore grade finish DL - Pb 0.01-30%, Zn 0.01 -30% Ag 1-1500ppm,

AAS AA24 ore grade finish Au 0.005 - 10ppm Au DL fire assay

Hole ID co-ordinate grid is PSAD56 UTM Zone 19S.

References in this announcement to exploration results and potential have been approved for release by Mr Michael Bohm (BAppSc Mining Engineering WASM) and Mr Antonio Valverde (Bsc Geology Universidad Complutense de Madrid), both with more than 15 years' relevant experience in the field of activity concerned. Mr Bohm is a Member of the Australasian Institute of Mining and Metallurgy. Both Mr Bohm and Mr Valverde have consented to the inclusion of the material in the form and context in which it appears.

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