Kavango Resources Regulatory News (KAV)

PRESS RELEASE

05 May 2022

KAVANGO RESOURCES PLC

("Kavango" or "the Company")

Ditau exploration programme expansion

Following completion of hole DITDD003, Kavango Resources plc (LSE:KAV) has expanded the exploration programme at its Ditau project in south west Botswana. Kavango is exploring for rare earth elements ("REEs") and base metal mineralisation at Ditau. Hole DITDD003 was drilled into the i10 Target.

The expanded exploration programme will include an additional 16.1km of new Audio-Magnetotelluric ("AMT") surveys over the drill target areas. DITDD003 is the first of 6 planned exploration holes to be drilled at Ditau in the current diamond core drill campaign. Based on results so far, the Company has confidence in the utility of its new AMT inversion modelling, introduced this year, and believes the expanded programme will enable it to optimise the location of drill collar positions via the elucidation of the bedrock geology.

In addition, Kavango announces commencement of drilling of Hole DITDD004.

Further, the Company confirms that the drill contractor, Mindea Exploration & Drilling Services (Pty), has agreed to accept payment for a large proportion (approximately 50%) of the Ditau drilling costs in Kavango stock, at an issue price of 4.53p per share.

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

"We designed the current drill programme at Ditau to be flexible, and are using results as they come in. We are doing this in combination with geophysical data, to adjust the programme dynamically. Kavango's use of AMT technology and state of the art inversions for carbonatite exploration is innovative and we hope it will maximise our opportunity for success .

It's still early days in the programme, but the data we've already gathered are intriguing and continue to build up our understanding of this new and exciting area."

Operational Summary

- Commencement of DITDD004, the second hole to target the i10 Target

- Target i10 is a discrete circular anomaly, 2.2km in diameter

- Shallow depth, with Kalahari sediment and sand cover modelled by AMT at 120m thickness, with the target zone directly underneath

- Kavango modelled Target i10 using inversions of Aeromagnetic data ("AEM") combined with its interpretation of limited existing AMT data

- Kalahari sediments in the first hole, DITDD003, were intercepted at 105m, in line with the AMT modelling

- The i10 target has been independently verified to conform to an idealised model for carbonatite intrusives, based on its aeromagnetic signatures.

- Carbonatites are the world's primary source of REEs and other critical commodities, which are crucial to high tech industries

- 16.1km expansion of AMT survey coverage over drill target areas includes:

- 1km over Target i10

- 5.5km over Target i8

- 9.6km over Target i1

- High frequency data to model near-surface carbonatite target areas & attempt to resolve origin of breccia zones and sills/dykes intersected in DITDD003

- Low frequency data to model possible deep carbonatite intrusions and structures

- Equity component of Ditau drill contract

- Kavango confirms that Mindea Exploration & Drilling Services (Pty) has agreed to accept payment for a large proportion (approximately 50%) of drilling costs, at an issue price of 4.53p per share

- Kavango has paid the cash component of its share of the drill contract upfront

The expanded exploration programme at Ditau will involve an additional 16.1km of of AMT survey coverage over drill target areas. AMT surveys can help geophysicists and geologists to map subsurface lithologies, structures, alteration and intrusive phases, to identify potential areas for mineralisation and to refine drill targeting.

Kavango has identified 12 targets from geophysics at Ditau (targets i1 through i12), which the Company believes could be carbonatites and/or intrusive complexes that may host carbonatite pipes. Carbonatite complexes are the world's primary source of REEs and other strategic/industrial commodities. REEs are strategically vital commodities in high-tech industries. 9 of the 12 targets are particularly well defined.

Kavango is currently testing 3 of the Ditau targets (i10, i1 and i8) with diamond core drilling.

The POW/KAV Joint Venture at Ditau

Ditau is held in a 50/50 Joint Venture ("Kanye Resources") with Power Metal Resources plc (LSE:POW) ("Power Metal"). Kavango is the operator. Mindea is conducting the drilling.

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 geophysics have been read and approved by Mr. Jeremy S. Brett, M.Sc., P.Geo., Senior Geophysical Consultant, Jeremy S. Brett International Consulting Ltd. in Toronto, Canada. Mr. Brett is a member of the Professional Geoscientists of Ontario, the Prospectors and Developers Association of Canada, the Canadian Exploration Geophysical Society, and the Society of Economic Geologists. Mr. Brett has sufficient experience that is relevant to geophysics applied the styles of mineralisation and types of deposits under consideration to act as a Qualified Person as defined under the Canadian National Instrument 43-101, Standards of Disclosure for Mineral Projects.

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 1,386km2. 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".

The "ring structures" have the potential to host carbonatite and other intrusive rocks.

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.

Mafic intrusives have potential to host base and precious metals, as seen in the Molopo Farms Project, Selebi Phikwe and Tati Nickel deposits in Botswana.

GLOSSARY

Aeromagnetic: An aeromagnetic survey is a geophysical survey carried out using a magnetometer aboard an aircraft.

AMT: Abbreviated from Audio frequency Magneto Tellurics. 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 500 metres or more.

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.

Carbonatite: Carbonatite is a type of intrusive or extrusive igneous rock defined by mineralogic composition consisting of greater than 50% carbonate minerals.

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