Kavango Resources Regulatory News (KAV)

PRESS RELEASE

11 July 2022

KAVANGO RESOURCES PLC

("Kavango" or "the Company")

KSZ North: Cluster of EM conductors identified

Botswana focussed metals exploration company Kavango Resources plc (LSE:KAV) ("Kavango") has identified a cluster of three electromagnetic conductors (the "EM Conductors") within Target Area B in the northern (Hukuntsi) section of the Kalahari Suture Zone ("KSZ").

The size and orientation of these conductors conform to an idealized model for the Talnakh and Kharaelakh massive sulphide nickel/copper/platinum group element ("Ni-Cu-PGE") orebodies at Norilsk. This fits both the 'Norilsk Model' Kavango has used in its exploration for large-scale Ni-Cu ore bodies in the KSZ, as well as a more detailed Ni-Cu-PGE orebody model.

Kavango has ranked the three EM Conductors as priority targets for future drilling.

Highlights

- Group of three EM Conductors identified in close proximity to one another

- Conforms to 'Norilsk Model' that Kavango has applied to the KSZ

- First evidence captured in the KSZ of a cluster of drill targets, which corresponds to similar clusters observed at Talnakh and Kharaelakh

- Norilsk is one of the world's largest nickel/copper/platinum group element mines

- The three EM Conductors exhibit strong conductance readings, which conform to an idealised Ni-Cu-PGE orebody model

- B1 Conductor - 14,350 Siemens* (classified as a high priority drill target)

- B3 Conductor - 4,350 Siemens (classified as a priority drill target)

- B4 Conductor - 4,350 Siemens (classified as a priority drill target)

- Kavango has published maps and diagrams on its website

- https://www.kavangoresources.com/media-library/news-release-media/rns11july2022

*Under Kavango's new target ranking system in the KSZ, an EM Conductor with a conductance greater than 1,000 Siemens is a drill target, greater than 3,000 Siemens is a priority drill target and greater than 10,000 Siemens is a high priority drill target.

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

"These are some of the most outstanding exploration results Kavango has delivered in the Kalahari Suture Zone. We now have 3 significant drill targets, in close proximity to one another, in our hunt for 'Norilsk Model' nickel/copper/platinum group element ore bodies.

The primary objective of this phase of TDEM was to define comprehensively the B1 Conductor. We achieved this and, pending final modelling of the 14,350 Siemens B1 Conductor it will be drill-ready. This is a high priority drill target.

With a roughly 9km2 area of investigation per loop, surface TDEM surveys also enable us to pick up other potential conductors in the vicinity. In the case of the Loop 10 survey, we detected two more conductors to the north.

We immediately recognised the potential significance of this and arranged for two further TDEM loops, Loops 11 & 12.

We were delighted to receive these results. These confirmed the presence of conductors B3 & B4, which both exhibited preliminary modelled conductance readings of 4,350 Siemens and are now also priority drill targets for Kavango.

Final modelling is needed on all 3 conductive bodies to resolve them to "drill-ready" state, but the exciting development is the clustering and amplitude of these conductors does fit our idealised 'Norilsk Model'. This is exactly what we would have hoped to see at this stage in exploration.

Kavango has been the first company to deploy surface and downhole TDEM technology to the 450km-long KSZ, and we are now also actively exploring how we can roll out a much-more expansive reconnaissance campaign across our 8,800km2 property."

Technical summary

- The EM Conductors were identified through four Surface Time Domain Electromagnetic ("TDEM") surveys, completed over Q2:

- Spectral Geophysics Pty ("Spectral") performed the TDEM surveys.

- All data has been independently analysed and verified.

- Updated exploration model

- Kavango is now applying a new ranking system to EM Conductor targets that are hosted in the correct geological setting.

- Greater than 1,000 Siemens represent drill targets.

- Greater than 3,000 Siemens represent priority drill targets.

- Greater than 10,000 Siemens represent high priority drill targets.

- The B1 Conductor

- First identified in Q2 2021 and modelled as a larger single body with a conductance of 8,200 Siemens (>>> announced 02 July 2021).

- An attempt to drill the B1 Conductor was made using hole KSZDD002, which did not intercept the target. The modelling of combined data from Surface and Downhole electromagnetic (DHEM) survey data indicated two separate bodies that had been modelled as a single body, previously. The new modelled conductance for the B1 Conductor increased to 16,000 siemens.  (>>> announced 28 February 2022).

- As a result of the Q2 TDEM, the B1 Conductor has now been subjected to extensive Surface TDEM and modelled as a very strong conductor at 14,350 Siemens.

- The B1 Conductor is modelled as dipping shallowly, with dimensions of 200m by 500m.

- The B1 Conductor will be drill ready pending final modelling.

- The B2 Anomaly

- First identified in the February 2022 DHEM survey.

- Modelled originally as a very large vertically dipping conductor, the Company now estimates that the B2 Anomaly is a weakly conductive geological fault, running parallel to a probable dyke identified from the interpretation of ground magnetic data. This fault could host a conduit for intrusive Ni-Cu-PGE rich magma.

- The B3 & B4 Conductors

- First detected by surface TDEM survey Loop 10, which had been deployed to confirm the geometry of the B1 Conductor.

- Loops 11 and 12 subsequently added to the programme to define the two newly identified B3 & B4 conductors.

- Preliminary analysis confirms the B3 and B4 Conductors have conductance readings of 4,350 Siemens each.

- The B3 & B4 Conductors will be drill ready pending final modelling.

- Images with narrative available on the Company's website via the following link:

https://www.kavangoresources.com/media-library/news-release-media/rns11july2022

- Next Steps

- Final modelling planned on the B1 Conductor, B2 Anomaly, the B3 Conductor and B4 Conductor.

- Controlled Source Audio-Magnetotelluric ("CSAMT") surveys to elucidate the host rock geology and structural setting.

- More extensive TDEM surveys across the KSZ.

- Independent nickel expert recruited to perform review of data from "Proof of Concept" drill campaign, ahead of release of report.

- Site visit to review cores completed on 08 July 2022.

Background

Target Area B is located above the Great Red Spot (the "GRS"), a large-scale 5km by 8km coincident magnetic and gravity anomaly in the northern ("Hukuntsi") section of the KSZ. Kavango is currently exploring for two ore deposit models over the GRS:

I. 'Norilsk Model' Ni-Cu-PGE massive sulphides

II. A deeper-seated Iron Oxide Copper Gold (IOCG) alteration system

This announcement is focussed on the shallower 'Norilsk Model' Ni-Cu potential within Karoo sedimentary host rocks.

Following Downhole Electromagnetic ("DHEM") surveying of Hole KSZDD002 (>>> announced 22 February 2022), Kavango planned follow-up surface TDEM surveys to define clearly the B1 and B2 Conductors ahead of drilling.

Surface and Borehole TDEM surveys are widely accepted as being the primary exploration tool in the search for Ni-Cu-PGE sulphide ore bodies. TDEM is used to identify "EM Conductors" (see glossary below), which could be caused by Ni-Cu-PGE ore bodies. Kavango is the first company to deploy TDEM technology in the KSZ.

Over Q2, Spectral Geophysics Pty ("Spectral") performed 4 large loop surface Time Domain Electromagnetic ("TDEM") surveys over Target Area B. One TDEM survey (Loop 8) was a repeated over the original survey area that led to the identification of the B1 Conductor (>>> announced 02 July 2021). Three TDEM surveys (Loops 10, 11 & 12) were new, leading to the identification of the B3 and B4 Conductors

The latest TDEM surveys have confirmed the presence of the B1 Conductor, as well as the existence of two (2) new significant conductor targets in close proximity (B3 and B4).

The B1, B3 & B4 Conductors

The B1 Conductor is currently the Company's highest priority drill target in the KSZ and conforms to a potential massive sulphide body, with a modelled conductance of 14,350 Siemens from surface TDEM data. Pending final EM modelling, Kavango is confident the B1 Conductor will be ready as a high priority drill target for massive sulphides.

The B3 and B4 Conductors exhibit modelled conductances of 4,350 Siemens each from surface TDEM data. Pending final EM modelling, Kavango is confident the B3 and B3 Conductors will be ready as a priority drill targets for massive sulphides.

For context, Kavango's criteria are as follows: Any conductor target that lies in the correct geological setting and exhibits a conductance greater than 1,000 Siemens is a drill target for massive sulphides, greater than 3,000 Siemens represents a priority drill target for Kavango, and if the conductance is greater than 10,000 Siemens then this represents a high priority target.

The 3 conductors (B1, B3 and B4) form a cluster. This sort of cluster could be proximal to a main structure that controlled magmatic intrusives and the emplacement of multiple massive sulphide bodies, as observed at Talnakh and Kharaelakh in Siberia.

The size and orientation of these conductors conform to parts of the Talnakh and Kharaelakh massive sulphide orebodies at Norilsk. This fits both the general 'Norilsk Model' Kavango has used in its exploration for large-scale Ni-Cu-PGE ore bodies in the KSZ, as well as a more detailed orebody model.

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 to the styles of mineralization 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.

THIS ANNOUNCEMENT CONTAINS INSIDE INFORMATION FOR THE PURPOSES OF ARTICLE 7 OF REGULATION 2014/596/EU WHICH IS PART OF DOMESTIC UK LAW PURSUANT TO THE MARKET ABUSE (AMENDMENT) (EU EXIT) REGULATIONS (SI 2019/310) ("UK MAR"). UPON THE PUBLICATION OF THIS ANNOUNCEMENT, THIS INSIDE INFORMATION (AS DEFINED IN UK MAR) IS NOW CONSIDERED TO BE IN THE PUBLIC DOMAIN.

Note to Editors:

THE KALAHARI SUTURE ZONE

Kavango's 100% subsidiary in Botswana, Kavango Minerals (Pty) Ltd, is the holder of 16 prospecting licences covering 8,831.1km2 of ground, including 14 licences over a significant portion of the 450km long KSZ magnetic anomaly in the southwest of the country along which Kavango is exploring for Ni-Cu-PGE rich sulphide ore bodies. This large area, which is entirely covered by Cretaceous and post-Cretaceous Kalahari Sediments, has not previously been explored using modern techniques.

The area covered by Kavango's KSZ licences displays a geological setting with distinct similarities to that hosting World Class magmatic sulphide deposits such as those at Norilsk, Siberia (D. Holwell and D. Blanks, 2020).

KSZ DEFINITIONS

Chalcopyrite: A copper rich sulphide mineral (CuFeS2), widely occurring in magmatic sulphide ore bodies.

EM Conductors: Bodies of highly conductive minerals such as graphite, magnetite and metal sulphides conduct electricity very effectively, provided the mineral grains are in contact with each other. These respond to electromagnetic ("EM") surveys as conductors.

Gabbro/gabbroic: A coarse grained, medium to dark coloured rock, formed from the intrusion of mantle derived molten magma into the earth's crust. Gabbroic rocks (or "gabbros") are formed as the molten magma crystallizes and cools.

Gabbroic sills: Relatively thin, planar, horizontal bodies of solidified gabbroic magma that intruded into layers of sedimentary rock whilst still molten.

Karoo: The Karoo System covers 1.5 million km2 of the semi-desert region of Southern Africa. Rocks in this system formed 180-310 million years ago.

Massive Sulphide: When mineralization consists almost entirely of sulphides it is termed "massive". When these sulphides are in high enough concentration and the mineral grains are in electrical contact, they become electromagnetic conductors and detectable via TDEM surveys.

Metal/Magmatic sulphide: Deposits of sulphide mineral concentrations in mafic and ultramafic rocks, derived from immiscible sulphide liquids. To view a video of how metal/magmatic sulphides form please visit -

https://twitter.com/KavangoRes/status/1316004057895645186?s=20

Norilsk Model: An ore deposit model pertaining to the Norilsk mining camp in Siberia, also referred to as the Talnakh and Kharaelakh Ni-Cu-PGE Deposits. Norilsk is located 2,800km northeast of Moscow and accounts for 90% of Russia's nickel reserves, 55% of its copper and virtually all of its PGMs. Kavango's licenses in the KSZ display a geological setting with distinct geological similarities to the magmatic sulphide deposits at Norilsk.

Major Ni-Cu-PGE sulphide camps are associated with rifted environments along craton margins, where voluminous mafic-ultramafic magmas ('large igneous provinces') derived from mantle plumes were channeled up through lithospheric fault systems and emplaced into sedimentary basins that contain abundant sulphur-bearing country rocks. (D. Holwell and D. Blanks, 2020)

Magma plumbing systems that lie beneath food basalts are a key feature of these deposits, especially when they intersect Siberian type traps. Magma that intrudes into sedimentary basins digests coal as a sulphur source, triggering sulphur saturation, sulphide immiscibility and ore deposit formation. These sedimentary basins tend to be erosionally preserved.

Pegmatitic: Pegmatites are very coarse grained igneous rocks having grain sizes in excess of 3cm. Pegmatites are thought to form as a result of very slow crystallisation and may contain exotic minerals from a volatile-rich melt.

Sulphide mineralisation: If there is sufficient sulphur in the molten magma, it will tend to combine with metals (Cu, Zn, Ni, Co, Pb, PGEs etc.) to form metal sulphide complexes, which may coalesce to form massive sulphide deposits. If the melt is sulphide poor, the metals will be taken up into the silicate minerals that form as the magma cools and will not usually form economic deposits.