Kavango Resources Regulatory News (KAV)

PRESS RELEASE

4 January 2021

KAVANGO RESOURCES PLC

("Kavango" or "the Company")

Ditau Orientation Work

Kavango Resources plc (LSE:KAV), the exploration company targeting the discovery of world-class mineral deposits in Botswana, is pleased to announce an exploration update for the Ditau Project ("Ditau").

Ditau includes two prospecting licenses (PL169/2012 and PL010/2019) in a Strategic Joint Venture with Power Metal Resources (LSE:POW) ("Power Metals").

Highlights

v First stage of orientation work at Ditau complete

- Work conducted on one of 10 "ring structures" previously identified at Ditau ("I10")

- Each "ring structure" has the potential to host carbonatite rocks

- Carbonatites are the principal source of rare earth elements ("REEs")

v Initial work finished at I10

- 5km CSAMT orientation line run at 50m station interval

- Soil geochemistry samples taken over the same line at 200m spacing

v Follow up surveys at I10 planned for mid-January

- Gravity survey at 50m intervals

- Ground magnetic survey at 12.5m station spacing

- Soil sampling and survey results expected by early February

v Calibration of survey equipment

- Results from the I10 orientation exercise will shape the calibration of survey equipment for future surveying of the remaining 9 "ring structures

- Extensive surveying at Ditau planned in Q1/Q2 2021

- Exploratory drill campaign anticipated in Q2/Q3

Michael Foster, Chief Executive Officer of Kavango Resources, commented:

"We have completed a lot of valuable work at Ditau over recent years. Drill cores from our 2019 campaign confirmed the presence of highly altered Karoo sediments, sitting above a mafic intrusive body. The alteration extended to depths >300m.

Our job is now to confirm whether or not the ring structures contain carbonatite, and if so, evaluate them for valuable minerals. Once we have calibrated our equipment based on the results from the I10 anomaly, we will survey the remaining 9 ring structures to identify potential drill targets.

Thanks to the knowledge base we have built up at Ditau, the next phase of exploration should be relatively straightforward and quick to implement."

Ditau Exploration

Kavango had previously planned to complete the orientation work to calibrate its surveying equipment at the Falconbridge carbonatites. However, by focussing its efforts on the I10 magnetic anomaly, the Company will be able to accelerate its plans for the more extensive surveying of all 10 "ring structures" identified at Ditau*.

The initial CSAMT orientation line over I10 is 5km long and has been plotted at 50m station intervals. Soil samples were taken at stations every 200m.

Gravity surveying at 50m intervals and ground magnetic surveying at 12.5m intervals is planned along the orientation line in mid January.

The objective of the CSAMT survey is to identify the position of the various rock types below surface by testing their electrical resistivity

Evidence from carbonatites found in the area by Falconbridge in the 1970s suggests that the Ditau intrusive bodies are located at the bottom of the Kalahari cover sands, approximately 75m below surface.

The fractured nature of carbonatites means mineralisation can be dispersed within long, thick veins of carbonatite material.

Kavango's immediate priority is to confirm whether the 10 "ring structures" at Ditau contain carbonatite. The exploration process for this is relatively straightforward. Assuming the CSAMT surveys isolate specific drill targets, these can be tested by low-cost, shallow Reverse Circulation (RC) drilling.

Kavango and Power Metals will provide further updates in due course.

* For an explanation of the geology of "ring structures" and carbonatites please review the section at the bottom of this announcement.

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

Michael Foster

mfoster@kavangoresources.com

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 information in this press release that relates to "geological and/or geophysical results" for the South Ghanzi Project is based on information compiled or reviewed by Mr Mike Moles BSc (Geology) & BSocSci (African Studies), a competent person who is a Member of the Australian Institute of Mining & Metallurgy. Mr Moles has sufficient experience that is relevant to the style of mineralisation and type of deposits under consideration and to the activity, which he is undertaking to qualify as a Competent Person as defined in the 2012 Edition of the 'Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves'. Mr Moles consents to the inclusion in this release of the exploration results for the Project in the form and context in which it appears. Mr Moles is a beneficial shareholder of Kavango Resources plc.

NOTES TO EDITORS

THE DITAU PROJECT

The Ditau 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 10 "ring structures" (including at least one possible kimberlite).

The "ring structures" are potential carbonatites.

Carbonatites are the principal source of 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.

One of the ring structures is a 7km x 5km magnetic and gravity anomaly with significant zinc-in-soils values. Assay and whole rock geochemistry results from two drill holes drilled on this ring structure in 2019 by Kavango demonstrated the presence of an extensive zone of altered Karoo sediments sitting above a mafic intrusive body. The alteration extended to over 300m in depth in both holes, which were 1.8km apart. The geochemistry obtained from the drill core suggested that the alteration was due to "fenitization", a type of extensive alteration associated with alkali magmatism and carbonatites.

Fenite alteration is particularly associated with carbonatite intrusions, where it occurs as an aureole or halos around the carbonatite intrusive. It can indicate the presence of mineralised intrusions in a similar way that alteration patterns are used in other ore systems, such as porphyry copper deposits.

Kavango suspects that the post-Karoo fenitized rocks intersected at Ditau may be comparable to the Longonjo carbonatite in Angola being developed as a neodymium and praseodymium open pit mine by Pensana Metals Limited.