Kavango Resources Regulatory News (KAV)

PRESS RELEASE

23 December 2020

KAVANGO RESOURCES PLC

("Kavango" or "the Company")

South Ghanzi Project - Copper Exploration Update

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 South Ghanzi Project in the Kalahari Copper Belt (the "KCB").

The South Ghanzi Project includes two prospecting licenses in the KCB held in a Strategic Joint Venture with Power Metal Resources (LSE:POW) ("Power Metals").

Highlights

v Portable XRF analysis was completed on 335 soil samples previously collected

- Encouraging concentrations of zinc identified

- Zinc is a recognised pathfinder element for the less mobile copper ions in the soil

- Elevated levels of zinc indicate shallow mineralisation

v 127 follow-up soil samples collected, dried and sieved

- Soil samples taken in areas of particular interest

- Portable XRF analysis ongoing

v Interpretation of regional aeromagnetic surveys has identified favourable stratigraphy in anticlines and synclines within the licences.

- Anticlines and synclines are formed by folding the sedimentary strata and creating particularly favourable sites for "thickened" orebodies

- Anticlinal "domes" can bring the mineralisation close to surface and within reach of open pit mining.

v Higher concentrations of zinc anomalies identified near several anticlines

- Samples sent to laboratories for assay testing and "TerraLeach" digestion.

- Results expected in the New Year

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

"Our exploration team worked hard before Christmas to complete initial analysis of soil samples taken at South Ghanzi.

These results are certainly very encouraging. Follow-up sampling will carry on into Q1 of 2021. We are early in the exploration process, but are motivated by what we have seen so far in the preliminary results. The continued strength in the copper price provides a favourable backdrop to our efforts.

The regional rock formations appear to occur in the right configuration and the apparent presence of zinc is a promising indicator of copper/silver mineralisation at depth. We look forward to receiving assay results from the Johannesburg laboratory in the New Year."

Progress at South Ghanzi

Portable XRF analysis was completed on the 335 soil samples previously collected at South Ghanzi (04 December 2020).

Results from the XRF analysis revealed elevated concentrations of zinc in several key areas.

In parallel to this, Kavango's geophysicists completed reinterpretation work on data gathered from government sponsored regional aeromagnetic surveys. Magnetic data collected by previous exploration companies is also available on "open source".

Thanks to the reinterpretation of this data, Kavango's exploration team has identified a number of significant anticlines and synclines that occur close to redox boundaries across the South Ghanzi Project*.

Anticlinal "domes" often act as trap sites for high-grade copper/silver deposits across the KCB. Their proximity to surface makes them extremely attractive exploration targets.

Because zinc in soil anomalies occur close to several anticlines, Kavango's exploration team collected an additional 127 new soil samples in those areas.

A selection of these samples has been sent to a laboratory in Johannesburg for assay testing using the TerraLeach ™ method. Results are expected in the New Year.

Together with Power Metals, Kavango expects to conduct airborne electromagnetic geophysics ("AEM") surveys over prospective sections of the South Ghanzi project in Q1 2021. If results are favourable, the Strategic Joint Venture will work quickly towards test drilling of shallow targets once a 3 dimensional model has been developed.

*See geological setting note at 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

KAVANGO'S INTERESTS IN THE KALAHARI COPPER BELT

Kavango's exploration licenses in the KCB include:

The South Ghanzi Project

- 50% working interests in prospecting licenses PL036/2020 and PL037/2020, to be held in a Joint Venture with Power Metal Resources (LSE:POW) (announced 21 September), which cover 1,294km2.

The LVR Project

- Earning in a 90% interest in prospecting licenses PL082/2018 & PL 083/2018, held in a Joint Venture with LVR GeoExplorers (Pty) Ltd ("LVR"), which cover 1,091km2.

THE SOUTH GHANZI PROJECT GEOLOGICAL SETTING

The South Ghanzi Project and LVR Project areas include lengthy redox boundaries, close to surface, that represent excellent exploration targets.

The redox boundaries were formed several hundred million years ago in active sedimentary basins flooded by shallow seas. Organic matter accumulating on the sea floor created anoxic conditions, which formed a chemical barrier to metal ions rising upwards through the sediments as the basin subsided. The change in chemistry caused the precipitation of metal species (carbonates, sulphides etc.) including copper and silver on or just below the redox boundary.

Subsequent tectonic activity folded the sedimentary layers, which was often accompanied by the concentration of metals into the fold hinges. Fold hinges pointing upwards are known as anticlines, while the downward pointing hinges are called anticlines.

Several large copper/silver ore deposits have been discovered on the KCB in association with anticlines in areas now held under licence by Sandfire Resources (ASX:SFR) and Cupric Canyon (a privately owned mining development company). These deposits are relatively close to surface and many are amenable to open pit mining operations.

Accumulations of metals can be traced along the strike of geochemical reduction-oxidation ("redox") boundaries (sometimes for many kilometres), since they often contain iron and have a higher magnetic signature than the surrounding rock.