Kavango Resources Regulatory News (KAV)

22 April 2024

KAVANGO RESOURCES PLC

("Kavango" or "the Company")

ZIM: Hillside Exploration & Production Update

Kavango Resources plc (LSE: KAV), the Southern Africa focussed metals exploration company, is pleased to announce an exploration and production update for the Hillside Gold Project ("Hillside") in Zimbabwe.

Highlights

· Upgrade of exploration target at Prospect 4:

o Up to five potentially mineralised shear zones identified from an Induced Polarisation ("IP") survey, over a 700m width and currently mapped 500m strike.

o Two of the zones identified from the IP survey appear to coincide with a series of parallel artisanal workings.

o Three additional shear zones have been interpreted under slightly thicker cover and remain undiscovered by the artisanal miners with no indications of historic workings.

o Kavango to drill a fence of six holes to test potential for a bulk-minable gold deposit at Prospect 4.

· Final refined gold production at Hillside in March was 899.6g of gold.

o Kavango Mining anticipates significant increase in production, as it commences direct mining.

Ben Turney, Chief Executive of Kavango Resources, commented:

"We are looking forward to testing the bulk-minable gold potential at Prospect 4. The possible presence of four parallel, gold-bearing shear zones makes this an increasingly attractive exploration target.

We were originally looking for an additional high-grade ore source for production at Hillside. Hole SKDD001 was designed simply to test underneath current artisanal gold mining. We initiated the IP survey after the hole was completed.

In terms of the original goal, Hole SKDD001 has been a significant success. Our team saw the opportunity and moved quickly to test it. We are confident in the commercial potential of Prospect 4 to make a meaningful contribution to Kavango Mining. The high-grade upper intersection in Hole SKDD001 represents a near-term, minable opportunity well within trucking distance of the Hillside stamp mills. Kavango Mining is currently developing a work plan to pursue this.

However, it is the presence of the smaller, low-grade lower intersection in the same hole that our exploration team is now pursuing. Hole SKDD001 appears to have clipped a second shear zone, as indicated by results from the IP survey.

We now plan to return to Prospect 4 and drill a fence line of holes to test the IP anomalies and additional parallel artisanal mine workings we have identified. If these prove to be wide gold-bearing shear zones, Prospect 4 could represent an unanticipated bulk-minable opportunity.

We are currently drilling at the Nara Project and will mobilise the rig immediately back to Hillside on completion there.

In the meantime, I am very pleased to report that Kavango Mining was operationally profitable in March, its first month of trading. We produced 899g of gold. Our original goal was to reach 1kg of production over the course of 2024, so we are well ahead of schedule.

We now anticipate Kavango Mining is on course to be a consistently profitable business unit over 2024. We have a strong foundation to build on, as we increase direct production, open new sources of ore and invest in production capacity at Hillside. We look forward to providing further updates on our progress."

Prospect 4

Following receipt of encouraging assay results for Hole SKDD001 at Prospect 4 in Hillside (announced >>> 15 April 2024), Kavango has prepared an exploration plan to test the bulk-minable gold potential of this target.

Hole SKDD001 was originally designed to test the geology underneath current highly active artisanal workings at Prospect 4. Following completion of drilling at Prospects 1, 2 and 3 at Hillside, there was a window of opportunity to drill a fifth hole at Hillside before mobilising the drill rig to the Nara Project.

Kavango decided to test Prospect 4 based on geological mapping work completed in early January and visual inspection of gold-bearing ore recovered by artisanal miners. Kavango viewed Prospect 4 as a near-term source of gold ore to increase production for Kavango Mining at the Hillside stamp mill.

Hole SKDD001 was designed as a scope hole to test this potential under the largest and most productive artisanal working. The identification of visible gold and zones of disseminated sulphides in the core from Hole SKDD001 confirmed the mineralised shear was gold bearing at depth. Kavango subsequently decided to conduct an Induced Polarisation ("IP") survey. IP surveys can be used to identify potential sulphide bearing (chargeable) and possible quartz veining (resistive) features often related to potential economic gold mineralisation.

In the case of Prospect 4, further interpretation of the IP results reveals the presence of additional possible shear zones, two associated with artisanal surface workings and three without. The width of the outer edges of these five possible shear zones is >700m and they sit on a currently mapped strike of >500m.

Hole SKDD001 appears to have intercepted the interpreted shears under the current artisanal workings and historic workings. Hole SKDD001 intersected two gold-bearing structures, with the higher intersection (2.53m @ 29.08g/t) coinciding with first interpreted shear while the lower intersection (1.32m @ 1.8g/t) clipped part of the second shear zone.

Figure 1: A plan and section of the SKDD001 borehole against a background of artisanal workings, mapped against projected shears based on IP resistivity. (Interpretation by Hillary Gumbo, M.Sc., P.Geo.)

Figure 2: A plan and section of the SKDD001 borehole against a background of artisanal workings mapped against projected shears based on IP chargeability. (Interpretation by Hillary Gumbo, M.Sc., P.Geo.)

Next Steps at Prospect 4

Kavango has now designed a follow up drill programme to test the possible shear zones identified by the IP survey.

Kavango intends to drill a fence line of six holes to test the potential for a bulk-minable gold deposit here.

The fence line of diamond holes will test the IP (chargeability & resistivity) anomalies that appear to be related to parallel and sub-parallel artisanal gold mining.

Figures 3: Plan and section of SKDD001 borehole with background of IP resistivity and chargeability superimposed, together with mapped artisanal workings and the proposed fence line of diamond drill holes. (Interpretation by Hillary Gumbo, M.Sc., P.Geo.)

At this stage, Kavango anticipates three possible commercial outcomes for Prospect 4. These are:

1. Prospect 4 solely becomes a source of low-tonnage, high-grade ore for Kavango Mining. The 2.53m @ 29.08g/t high-grade zone is only 87m vertically below surface and presents a viable, near-term small-scale mining opportunity.

2. If Kavango's interpretation of the IP surveys is correct and there are several parallel gold-bearing shear zones at Prospect 4, these could present an opportunity for a high-tonnage, open-pit mine (subject to width, grade and metallurgy of any gold-bearing zones). Based on Kavango's latest mapping, the target area size is currently 700m width by 500m strike.

3. Depending on drill results, Prospect 4 could present a hybrid underground high-grade low-tonnage/lower-grade high-tonnage bulk-minable opportunity.

Hillside Production Update

Final refined gold production at Hillside in March was 899.6g of gold, which generated a small profit for Kavango Mining. Hillside currently relies on 3rd party miners for production. As Kavango Mining commences direct mining, the Company expects to increase gold production greatly.

Kavango anticipates Kavango Mining will now remain a consistently profitable business unit in 2024. Kavango intends to deploy any surplus generated by Kavango Mining into its exploration programmes in Zimbabwe. The Company is currently reviewing how best to report future results from Kavango Mining and will provide an update on this in due course.

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

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

+46 7697 406 06

First Equity (Broker)

+44 207 374 2212

Jason Robertson

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'. Mr Grist is an employee of Kavango Resources plc.

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.