Kavango Resources Regulatory News (KAV)

PRESS RELEASE

14 October 2022

KAVANGO RESOURCES PLC

("Kavango" or "the Company")

Ditau - IOCG system confirmed at i10

Botswana focussed metals exploration company Kavango Resources plc (LSE:KAV) ("Kavango") is pleased to announce petrological confirmation of an Iron Oxide Copper Gold ("IOCG") system at the Company's Ditau Project in southwestern Botswana.

Kavango has received petrology results of core samples taken from Ditau, including exploration hole DITDD004, which the Company successfully drilled in May 2022. Kavango believes this is the first confirmation of IOCG-style mineralisation in Botswana and suggests there is considerable exploration upside at Ditau, both for higher grade IOCG discovery and for carbonatites that may contain rare earth elements ("REEs").

Kavango has previously identified 12 'ring structure' geophysical anomalies at Ditau, which remain the Company's focus for exploration.

HIGHLIGHTS

- Petrological analysis confirms IOCG system at Target i10 in Hole DITDD004

- 15 samples from Ditau tested by an internationally recognised laboratory in the UK

- Kavango believes this is an important exploration lead as such IOCG mineralising systems seldom occur in isolation and can be extensive

- Minor amounts of mineral bastnaesite (a REE carbonate) identified in DITDD004

- This may provide evidence for nearby REE mineralisation

- REE hosting intrusions, such as carbonatites, can occur in proximity to IOCG deposits

- Further deeper and lateral drilling at i10 will test this potential

- Kavango's geophysical data over Target i10 shows the presence of coincident magnetic and gravity anomalies, which are typical of IOCG deposits

- Next steps

- Kavango to prepare an updated exploration plan, incorporating IOCG deposit model

- Final processing, analysis and interpretation of existing Controlled Source Audio MagnetoTelluric ("CSAMT") data acquired in H1

- Extensive CSAMT and gravity surveys planned across all 12 Ditau targets

- Drill planning

Ben Turney, Chief Executive Officer of Kavango Resources, commented:

"These are surprising, positive results for Kavango. The Iron Oxide Copper Gold deposit style has never been considered at Ditau. However, given the project's geological setting, there is a compelling logic to this model.

Ditau sits towards the western edge of the Kaapvaal Craton and is within an established kimberlite/carbonatite corridor. These are supportive indicators of a potentially favourable environment for IOCG mineralisation. 

Sand cover at Ditau has always made this a conceptual geophysical venture, but now that we have physical evidence of hydrothermal mineralising processes occurring here this will help shape future exploration.

Our current strongest lead is Hole DITDD004, which tested Target i10 and remains open in what we believe to be an IOCG breccia at 393m. We believe i10 would benefit from deeper and lateral drilling. However, before we send a rig back to Ditau, we need to conduct more CSAMT and gravity surveys over all 12 targets. Results from these surveys should enhance our updated exploration plan and increase our confidence in future drill targeting."

Background

The i10 Target is a discrete 2.2km diameter magnetic anomaly (the "i10 Target") that Kavango drilled two exploration holes into, during April and May 2022 (drill completion announced >>> 18 May 2022). The holes were designated DITDD003 and DITDD004.

DITDD004 was drilled to a depth of 393m and intercepted a Zone of Interest, from which the majority of samples in the hole were taken and sent for petrological investigation. This Zone of Interest was first interpreted to extend from 293m to 321m. However, subsequent analysis confirmed the Zone of interest extended from 293m to the end of hole at 393m and was open at depth. In addition to this, assay results confirmed the presence of a gold mineralising system in the Zone of Interest, with a peak grade of 0.175 parts per million ("ppm") over 2m from 312m to 314m (announced >>> 30 August 2022).

i10 Petrology Results

Subsequent to this, Kavango has now received a petrology report on samples from Ditau, including hole DITDD004, which confirms brecciation and alteration that are considered to represent part of an Iron Oxide Copper Gold ("IOCG") system.

Kavango believe this to be the first discovery of an IOCG system in Botswana.

The report, carried out by an internationally recognised petrological laboratory, describes mineralogical studies carried out on thin sections prepared from 15 samples of drill core provided by Kavango. These cover the four holes drilled in the 2022 drill program.

Work consisted of optical mineralogy, augmented on two samples by Scanning Electron Microscope Point and Identification techniques.

Kavango regards this development as an important exploration lead; such IOCG mineralising systems seldom occur in isolation and can be extensive.

Taken together it is interpreted that the protolith (initial rock type) was generally a Banded Iron Formation ("BIF"), laid down in a BIF sedimentary process that this has subsequently been partially re-worked and over-printed by later mineralised brecciation, containing predominantly pyrite and quartz and subordinate magnetite.

There are also a series of samples containing altered intrusives that are assumed to be younger. Some of these contain elevated levels of rare earth elements ("REE"). Point Identification Scanning Electron Microscopy work by the petrology laboratory identified the presence in hole DITDD004 of minor amounts of the mineral bastnaesite, a REE carbonate. This may provide evidence for nearby REE mineralisation.

REE hosting intrusions, such as carbonatites, can occur in proximity to IOCG deposits, and so the presence of more than once deposit style in the area is entirely possible.

Kavango's geophysical data over the i10 Target, shows the presence of coincident magnetic and gravity anomalies, which are typical of IOCG deposits.

Next exploration steps

There is considerable exploration upside at Ditau, both for higher grade IOCG discovery and for carbonatites.

Multiple attributes of IOCG deposits have been identified as present at Ditau by the petrology laboratory as well as by Kavango. Exploration for both IOCG and intrusive hosted REE mineralisation is considered by Kavango to be best achieved by geophysical means. Accordingly, Kavango is planning further Closed Source Audio MagnetoTelluric, and gravity survey work over across Ditau prior to drilling.

8 of Kavango's 12 targets remain untested by CSAMT and gravity surveys.

In addition to this the Company is considering next steps for drilling. Kavango believes Target i10 in particular would benefit from deeper and lateral drilling, with hole DITDD004 remaining in breccia at depth (393m). The Company will also assess further drilling on Targets i1 and i8, which were also drilled earlier this year.

Kavango has data queued for analysis and interpretation from the additional CSAMT surveys completed on Targets i10, i1 and i8. Further updates shall be provided in due course.

Further information in respect of the Company and its business interests is provided on the Company's website at www.kavangoresources.com and on Twitter at #KAV.

For further information please contact:

Kavango Resources plc

Ben Turney

bturney@kavangoresources.com

+46 7697 406 06

First Equity (Joint Broker)

+44 207 374 2212

Jason Robertson

SI Capital Limited (Joint Broker)

+44 1483 413500

Nick Emerson

Kavango Competent Person Statement

The technical information contained in this announcement pertaining to geology and exploration have been read and approved by Brett Grist BSc(Hons) FAusIMM (CP). Mr Grist is a Fellow of the Australasian Institute of Mining and Metallurgy with Chartered Professional status. Mr Grist has sufficient experience that is relevant to the exploration programmes and geology of the main styles of mineralisation and deposit types under consideration to act as a Qualified Person as defined in the 2012 Edition of the 'Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves'.

NOTES TO EDITORS

THE DITAU CAMP PROJECT

The Ditau Camp Project comprises two Prospecting Licences ("PLs") (PL169/2012 & PL010/2019) that cover an area of 809km2. Geophysical and geochemical analyses by Kavango in the two PLs have identified 12 "geophysical structures" of which 9 have clear indications of being "ring structures".

GLOSSARY

Breccia: Breccia is a rock composed of rock fragments held together by cement or a fine-grained matrix. The fragments are angular/rubbly in appearance.

Carbonatites: Carbonatites are the principal source of rare earth elements (REEs) including the much sought-after elements Neodymium (Nd) and Praseodymium (Pr), which are used in the manufacture of the new generation of electric vehicles (EVs), magnets and other high-tech applications. Other elements/minerals associated with carbonatites include Niobium, Phosphates, Monazite, Strontium, Magnetite and Copper.

CSAMT: Abbreviated from Controlled Source Audio frequency Magneto Telluric. An AMT survey is an electromagnetic survey technique that uses naturally occurring passive energy sources, and which can electrically map geologic structures to depths of several kilometres.

Inversion: Geophysical inversion refers to mathematical and statistical techniques for recovering information on subsurface physical properties, from observed geophysical data.