Landore Regulatory News (LND)

31 May 2017

Landore Resources Limited

Final Results

The Board of Landore Resources Limited is pleased to announce its audited results for the year to 31 December 2016.

For more information, please contact:

Bill Humphries, Chief Executive Officer Tel: 07734 681262

Richard Prickett, Finance Director Tel: 07775 651421

Landore Resources Limited www.landore.com

James Spinney / Jack Botros Tel: 020 7409 3494

Strand Hanson Limited

Nominated Advisor and Broker

This announcement contains inside information as defined in Article 7 of the Market Abuse Regulation No 596/2014.

Chief Executive Officer's statement

I am pleased to present the 2016 Annual Report for Landore Resources Limited ("Landore Resources" or the "Group").

During the year the Group has concentrated its exploration efforts on the further exploration of its highly prospective Junior Lake Project culminating in the confirmation of the Maiden Mineral Resource Estimate of 301,000 ounces of gold on the BAM East Gold Deposit.

Financial Results

In the year ended 31 December 2016, the Group incurred a loss, after tax, of £1,724,629 (2015: £1,535,279).

Operating expenses were in line with our budgets and expectations, financing details are set out below.

In June 2016 the Group raised approximately £1.22 million by the issuance of shares at a price of 1.7p per share and more recently, in March 2017, a further £2.1 million at a price of 2.7p per share.

The Group has no debt and will continue to raise further equity as needed to carry out its development plans. Shareholders have been very supportive of the Group's financing needs and the Directors are confident of raising further funds as required.

The Junior Lake Property:

The property is situated 235 kilometres northeast of Thunder Bay in the province of Ontario, and is highly prospective for numerous metals including gold, nickel, copper, cobalt, platinum, palladium, and lithium. Junior Lake is host to three compliant deposits, BAM East Gold Deposit, B4-7 Nickel-Copper-Cobalt-PGEs deposit and the VW deposit.

BAM East Gold Deposit

The discovery of the BAM East Gold Deposit in December 2015 and its rapid advancement to the publication of its Maiden Mineral Resource Estimate, just 14 months later on 17 February 2017, has transformed the Group's prospects.

The Resource estimate and supporting Technical Report are compliant with the requirements of National Instrument 43-101 Standards of Disclosure for Mineral Projects (NI 43-101)

Highlights of the report are:

· 301,000 ounces gold Maiden Resource Estimate for the BAM East Gold Deposit.

· US$5 per ounce of gold discovery cost with the drill success rate at 36 ounces of gold per metre drilled (8,436 metres total).

Our remarkably low discovery cost further underlines the significant growth potential of the BAM East Gold Deposit. In addition, exploration drilling has succeeded in establishing the potential for the highly prospective Junior Lake Shear, which traverses our property from East to West, to host other gold occurrences.

In April 2017, Landore was honoured and privileged to be awarded the prestigious "Bernie Schneiders Discovery of the Year Award" by the North Western Ontario Prospectors Association in recognition of the BAM East Gold Deposit discovery. The Ontario Province contains several of the World's larger Gold producing Mining Camps including Red Lake and Pickle Lake.

Ontario is a highly desirable jurisdiction for the exploration and development of mineral resources with stable government, accessible infrastructure and skilled workforce.

Our work programme for 2017 is aimed at further growth of the existing resource, discovery of further gold deposits along the Junior Lake Shear and progression for the BAM East Gold Deposit towards development and initiation of a pre-feasibility study by year end.

B4-7 and VW Deposits

Although Nickel prices have continued to be depressed the outlook is becoming more positive and the Junior Lake Nickel-Copper-Cobalt-PGEs Project will continue to be developed with the aim of a resource base of at least 100,000 tons of nickel equivalent so that Landore Resources can ultimately sell the project to a third party or enter into joint venture partnership.

Full details are set out in the Operations Report.

The Group continues to enjoy excellent relationships with the local First Nations on whose traditional lands our Junior Lake Property is located.

On behalf of my fellow directors I wish to thank our loyal shareholders for their continued support. The BAM East Gold discovery is a remarkable achievement by Michele Tuomi and her exploration team and is a testament to their dedication and perseverance.

William Humphries

Chief Executive Officer 30 May 2017

Operations report

INTRODUCTION:

Landore Resources Limited, through its 100% owned subsidiary Landore Resources Canada Inc. ("Landore"), is actively engaged in mineral exploration in Eastern Canada. Landore owns or has the mineral rights to four properties in Eastern Canada. Landore also owns a 30% interest in the West Graham property.

Landore through its 100% owned subsidiary Brancote US, owns or has the mineral rights to a further eight properties for 99 claims in the State of Nevada.

Landore's primary operations focus during 2016 was on the growth of the newly discovered BAM East Gold deposit located on the 100% owned highly prospective Junior Lake Property, Northwestern Ontario.

Full details of the Group's projects, including maps, Canadian National Instrument 43-101 (NI 43-101) resource reports, geophysical surveys etc. can be viewed on the Group's website, www.landore.com.

JUNIOR LAKE PROPERTY:

The Junior Lake property, 100% owned by Landore, is located in the province of Ontario, Canada, approximately 235 kilometres north-northeast of Thunder Bay and is host to the newly discovered BAM East Gold deposit, the B4-7 Nickel-Copper-Cobalt-PGEs deposit and the adjacent Alpha PGEs zone. Junior Lake also contains the VW Nickel deposit and numerous other highly prospective mineral occurrences including the BAM Gold zone.

The Junior Lake property extends for 36 kilometres and covers an area of 22,497 hectares.

BAM East Gold Deposit:

The BAM East Gold deposit is located approximately 2 kilometres to the east of the B4-7 deposit and 1 kilometre north of the VW Deposit and is situated midway along a 2.7 kilometre long, east-southeast to west-northwest trending maxmin geophysical anomaly ("MM-7"), at the western end of which is located the historical BAM Gold zone discovered by Landore in 2003. MM-7 had not been drill tested prior to the discovery of the BAM East Gold Deposit.

The BAM East Gold Deposit was discovered in December 2015 while drilling to test MM-7. The drilling intersected a wide zone of gold mineralisation close to surface. Follow up drilling in February/March 2016 validated the initial discovery, identifying approximately 100 metres of strike length and 100 metres down dip with true thickness of up to 30+ metres remaining open to the east and west as well as at depth. Mineralisation consisted of low grade gold with periodic intervals of higher grade gold.

This significant new discovery indicated the potential for the initial development to be progressed as a low cost, bulk tonnage, open pit operation.

Summer Drill campaign: In June 2016, Landore initiated a second drill program to test the east, west and down dip extensions of the new gold occurrence. The campaign, completed by late August 2016, consisted of 22 NQ diamond drill holes (0416-524 to 0416-545), for 4,077m.

The drilling results reported wide zones of gold mineralisation including high grade intersections with drill hole 0416-526 reporting 38.50 metres (m) at 3.42 grams/tonne (g/t) gold including 1.94m at 34.69g/t gold, 3m at 8.84g/t gold and 3m at 6.61g/t gold and drill-hole 0416-541 reporting 56.86 metres (m) at 1.60 g/t) gold including 4.00m at 5.17g/t gold.

Results received in this summer campaign included:

* Holes were drilled north at 45 degrees into a lithological package dipping approximately 40 degrees to the south. The actual true thickness of mineralisation is estimated to represent between 90-95% of the intervals shown in the above table.

The summer drilling campaign successfully extended the BAM East Gold Prospect for a distance of 500 metres along strike from 2200E to 2700E and to a vertical depth of 150 metres. The prospect remains open along strike to the east and west and down dip.

Findings from exploration drilling on the BAM East Gold Prospect revealed a lithological sequence consisting of leucogabbro to the south, metasedimentary rocks in the central portion, to mafic volcanics to the north. All lithological units have been subjected to variable shearing and deformation, markedly the metasedimentary unit.

The gold mineralisation revealed to-date is predominantly contained in the metasediments, with some gold mineralisation occurring in the leucogabbro rocks. Visible gold occurs within or near quartz veinlets which are controlled by a shear system.

BAM East gold mineralisation is a typical shear-hosted gold-bearing system in an Archaean greenstone belt. The local intensity of the quartz-gold veins focussed by shear style deformation is such that potentially economic mineralisation could be present with a zone up to at least 38m true thickness, possibly more. The mineralisation is structurally led and not bound to any one lithology. Ultimately the style of the shear induced fractures will determine the width of the prospective vein zones.

Fall Drilling Campaign: In October 2016 Landore initiated a third drilling campaign to further test the east, west and down dip extensions of BAM East Gold mineralisation. The campaign, completed by late December 2016, consisted of 15 (6-HQ and 9-NQ diamond drill holes (0416-546 to 0416-560), for 3,678m.

Results received from the Fall campaign included the following:

* Holes 0416-546 to 549 were drilled north at 55 degrees with 0416-553 at 45 degrees into a lithological package dipping approximately 40 degrees to the south. The actual true thickness of mineralisation is estimated to represent between 80-85% for 0416-546 to 549 and between 85-90% for 0416-553 of the intervals shown in the above table.

Since drilling commenced on the BAM East Gold Deposit in December 2015, 44 (6HQ and 38NQ) diamond drill holes, for 8,539 metres, have been drilled, successfully delineating a significant gold occurrence in the Central Zone and identifying other highly prospective areas with similar lithology along the 2.7 kilometre potential strike length.

Petrographic Studies: Seven samples from the winter and summer drilling campaigns on the central zone were submitted for petrographic studies, two of which reported significant native gold in both the (+)100 micron and the (-)100 micron size (see full report on Landore's website). No sulphides were associated with the precious metals.

Visible Gold: 26 of the 44 drill holes completed in the three campaigns reported multiple instances of visible gold (VG) up to 2 millimeters long occurring as singular pieces or in clusters contained in or adjacent to quartz veinlets. Accordingly core samples of interest reporting VG or high grade gold were re-submitted for screen metallic gold analysis to check reproducibility of gold assays.

These results together with the original 50 gram Fire Assay results were forwarded to an independent consultant for analysis.

In all, 217 drill core samples representing a wide range of gold grades returned by Landore's standard ore grade gold analysis (ALS Minerals analytical package Au-AA26) were submitted for gold screen metallic testing (ALS Minerals analytical package Au-SCR24) to check reproducibility of gold assays. The independent consultant's findings concluded that overall, the gold distribution does not appear to be very "nuggety" since gold is in both the fine and coarse screen fractions, and the screen metallic assays correlate reasonably well with the fire assays.

Metallurgical Testing:-A Preliminary metallurgical assessment was completed on two intervals in the Central Zone of the BAM East Gold deposit. Drill core material, in the form of two composites of 28 samples weighing a total of 67 kilograms, was submitted to ALS Metallurgy, Kamloops of British Columbia for Gravity Concentration and Cyanidation Bottle Roll leach testing on the gravity tails. The assessment results were as follows:

Combined gold recovery by gravity concentration followed by cyanidation leach extraction of the gravity tail averaged about 98% for both composites tested.

Gravity Concentration: Feed gold recovery to the pan concentrate ranged between 58 and 59% for Composite 1 and Composite 2. Between 0.02 and 0.03% of the feed mass was recovered to the pan concentrates grading between 3,687 and 6,977 g/t gold.

Gold leach kinetics recorded for all tests at a nominal primary grind sizing of 75µm K80 were rapid, with close to peak gold extraction measured in the first sampling interval at 6 hours.

Overall Gravity and Leach Results

These outstanding results, showing 98% recovery of gold using a simple combined gravity/leaching process, further supports Landore's expectations that the exciting BAM East Gold deposit has the strong potential of low capex/opex costs amongst the lowest quartile of gold mining producers.

Resource estimate: following the successful summer drilling campaign, Landore retained consulting engineers Roscoe Postle Associates Inc. ("RPA") of Toronto, Canada, with the view of completing an initial Mineral Resource estimate and to prepare a supporting Technical Report on the Bam East Gold deposit. The Technical Report is compliant with the requirements of National Instrument 43-101 Standards of Disclosure for Mineral Projects (NI 43-101)

Data compilation from the three drilling campaigns together with the results from the various studies was delivered to RPA by the 5 January 2017 with the Initial Resource Estimate together with the Technical Report being completed and published on 17 February 2017.

Highlights of the report are:-

· 301,000 ounces gold Maiden Resource Estimate for the BAM East Gold Deposit.

· One year from discovery to Maiden Resource Estimate. Discovery drill-hole 0415-517 drilled in December 2015. Resource cut-off 3 January 2017.

· US$5 per ounce of gold discovery cost with the drill success rate at 36 ounces of gold per metre drilled (8,436 metres total).

· 98% combined gold recovery by gravity concentration followed by cyanidation leach extraction of the gravity tail.

· Review by RPA has been successful in outlining the favourable BAM Sequence along a strike length of approximately five kilometres.

The Mineral Resources for the BAM East Gold Deposit were estimated by RPA based on drill hole and assay data available up to January 3, 2017 and are summarized in Table 1-1.

Notes:

1. CIM definitions were followed for Mineral Resources.

2. Mineral Resources are estimated at a block cut-off grade of 0.3 g/t Au.

3. Mineral Resources are estimated using a long-term gold price of US$1,400 per ounce, and a US$/C$ exchange rate of 0.75.

4. A minimum mining width of 3 m was used.

5. Bulk densities for the main host rocks are 2.82 t/m3, 2.84 t/m3, and 2.92 t/m3.

6. Mineral Resources that are not Mineral Reserves do not have demonstrated economic viability.

7. Numbers may not add due to rounding.

Compilation activities by RPA have been successful in outlining the favourable BAM Sequence along a strike length of approximately five kilometres. The strike limits of the unit have not been defined. Additional work is clearly warranted. This work would include continued compilation of all available information, detailed geological mapping and geochemical sampling, stripping and trenching activities in areas of shallow overburden, and diamond drilling in areas of deeper overburden cover.

The full report is published on Landore Resources's website www.landore.com 

Discovery of the Year Award:

In April 2017, Landore Resources was awarded the prestigious "Bernie Schneiders Discovery of the Year Award" by the Northwestern Ontario Prospectors Association in recognition for the BAM East Gold Deposit discovery. This award, which recognizes an exceptional discovery in Northwestern Ontario during the previous calendar year, was presented on 4 April to Landore Resources at the annual awards dinner hosted during the 2017 Ontario Prospectors Exploration Showcase in Thunder Bay, Ontario.

2017 Planned Works:

Drilling on the BAM East Gold Deposit recommenced April 1 2017 with a total of 12,000 metres planned during this spring and summer. One drill is currently focussed on further delineation of the deposit, with a second drill scheduled to commence exploration drilling along the highly prospective structural trend which hosts the BAM East Gold Deposit. To date, 12 HQ diamond core drill-holes have been completed in the Central Zone revealing the same lithology's hosting the gold mineralisation. Initial results are encouraging and further results are pending and will be reported when received and collated.

B4-7 NICKEL-COPPER-COBALT-PGEs DEPOSIT:

Landore Resource's objective is to grow the Junior Lake nickel-copper-cobalt-PGEs project resource base to plus 100,000 tonnes of nickel equivalent (NiEq), to ultimately sell the project to a third party or enter into a joint venture partnership to develop the project.

The B4-7 deposit is located in the centre of the lease area approximately 3 kilometres to the northwest of the VW deposit. The B4-7 deposit mineralisation is hosted within a sub-vertical massive sulphide vein with stringers, net-textured and disseminated sulphides in the immediate hanging wall. The deposit outcrops at surface with the upper 120 metres of the deposit being amenable to lower cost open pit mining. Below 120 metres, the grade improves sufficiently for underground mining.

B4-7 Nickel-Copper-Cobalt-PGEs Resource:

The B4-7 resource estimate and report, completed by RPA independent engineers of Toronto, Canada in January 2013, is compliant with the requirements of NI 43-101. The resource, so far delineated over 650 metres of strike, remains open down plunge at depth and along strike to the west. There is further shallow mineralisation potential to the east.

The report also identified the Exploration Target located immediately west of the B4-7 deposit containing a potential 1.5 Mt to 2.0 Mt of sulphide mineralisation of similar grade range to that which has been outlined to date.

In Q3 2015, Landore retained RPA to review and report on the Mineral Potential of the Junior Lake Nickel-Copper-PGE Project. This investigation entailed an evaluation of drilling subsequent to the 2013 B4-7 resource estimate, including drilling that tested the down-plunge extension of the B4-7 Deposit. The resultant technical report is compliant with the requirements of NI 43-101.

As noted by RPA in its report, "These down-plunge drilling programs have been successful in extending the limits of the B4-7 Deposit along the down-plunge direction by 250 m to 300 m from the previously known limits as of late 2012. The 2014 and 2015 drill holes could increase the B4-7 underground resource by approximately 15% to 20% and RPA is of the opinion that sufficient drill hole information is available to classify the newly outlined material in the Indicated Mineral Resource category."

Alpha Zone:

The Alpha zone, identified by drilling in 2001, consists of net-textured and disseminated sulphides containing significant palladium with elevated nickel, copper, cobalt, platinum and gold mineralisation and is found in both the open pit and the underground portions of the B4-7 deposit.

Alpha zone style disseminated sulphide mineralisation drilled to date has intersected moderate to high grade palladium with drill-hole 0414-503 on line 00 reporting 20.15 metres at 0.11% Ni, 1.54g/t Pd, and 0.64g/t Pt including 0.56 metres at 10.90g/t Pd and 11.50g/t Pt, and also including 0.72 metres at 12.85g/t Pd and 2.50g/t Pt. The platinum and the palladium results are among the highest reported on the Junior Lake property to-date, all of which are located within the B4-7 deposit.

The Alpha zone mineralisation was not included in the B4-7 NI 43-101 compliant resource published in 2013 due to insufficient drilling along strike. However, a review of Alpha style mineralisation intercepts in drilling completed since then has established that the Alpha zone is far more significant than previously determined. Subsequent drilling has been successful in further establishing the continuity of the PGE enriched Alpha zone for 700 metres from line 350W to 350E. The Alpha zone is open both up and down dip and to the west along strike.

As recommended by RPA in its mineral potential report, further work is warranted to evaluate the strike extensions of the Alpha zone deposit at shallow depths to test for the presence of additional mineralized areas that may be exploited by means of open pit mining methods.

Development of the Alpha zone could supply significant credits for the B4-7 deposit and form an integral part of the B4-7 resource.

Exploration Target:

The 2013 B4-7 compliant resource is defined to approximately line 175W. In addition to this resource, RPA identified an 'Exploration Target' along strike and down plunge to the west to approximately line 500W.

Drilling to-date on the Exploration Target has intersected B4-7 massive sulphide mineralisation as well as Alpha zone style disseminated sulphide mineralisation thus reaffirming the significant potential along strike to the west of the B4-7 deposit. Upon review of the drilling conducted subsequent to the 2013 B4-7 resource estimate in the Exploration Target area, RPA concluded that these drill results could be incorporated into the resource, potentially increasing the B4-7 deposit resources by approximately 15% to 20%. Further drilling is warranted to bring additional strike length into the formal resource.

The B4-7 deposit together with the Alpha zone and Exploration Target are hosted in a distinctive geophysical magnetic anomaly which extends 500 metres to the east of the 00 base line of the B4-7 deposit and extends 1,000 metres to the west of line 00 where it is truncated by the Juno Lake shear, and curls north and then to the east around a prominent 150 metre diameter magnetic low. Exploration drilling has established that this anomaly hosts a collective potential massive sulphide mineralisation strike length of 1.5 kilometres.

Planned Works:

Landore has retained RPA of Toronto, Canada, to conduct a review of the borehole EM (BHEM) geophysical information and drilling results from the recently-completed exploration program on the B4-7 deposit area with the aim of ascertaining the works required to bring the newly identified potential B4-7 mineralisation into the formal resource.

At present, due to the depressed Nickel price and the need to concentrate all available funds on the BAM East Gold Deposit, all works have been placed on hold until the markets improve.

VW NICKEL DEPOSIT:

The VW deposit, discovered by Landore in late 2005, is located at Ketchikan Lake in the central part of the Junior Lake property and is Landore's most advanced project. From 2005 to 2010, Landore has drilled 142 diamond NQ size holes for 35,339 metres on the VW deposit. The VW deposit outcrops at surface with the upper 150 metres of the deposit being amenable to lower cost open pit mining. Below 150 metres, the grade improves sufficiently on the main Katrina zone for underground mining.

VW Nickel Resource:

The VW resource estimate and report, completed by RPA Inc. (RPA) of Toronto, Canada in October 2009, is compliant with the requirements of NI 43-101. 84% of the resource is in the Indicated category. The resource remains open to the east and to the west as well as down dip.

Infrastructure:

The city of Thunder Bay is located on the northern shore of Lake Superior and is the main supply hub for the mining centres of northern Ontario including Red Lake, Pickle Lake, and the Musselwhite gold mine. It has extensive port facilities and an airport providing daily flights to major provincial cities, as well as a rail line that provides access to both eastern and western North American markets.

Access to Junior Lake from Thunder Bay is via a sealed highway for 235 kilometres to the town of Armstrong and then via a well maintained forest products unsealed road for 105 kilometres that runs to the property.

The Canadian National Railway runs parallel to the Junior Lake property 13 kilometres to the south providing direct transport access to both the nickel smelting centre of Sudbury and the port facilities at Thunder Bay. In addition, Junior Lake has abundant water resources nearby and is just 10 kilometres from the planned hydro-electric power station on the Little Jackfish River.

Environmental Baseline Studies:

Golder Associates of Sudbury, Ontario, have continued with the Environmental Baseline Studies programme initiated on the mining leases containing the B4-7 and VW deposits in the winter of 2007. Water surface monitoring of lakes and drainage tributaries within the vicinity of the deposits have continued on at least a bi-annual basis since 2011. The area of influence has recently been expanded to include lakes and drainage further out from the leases. The environmental and baseline studies are all pre-requisite for permitting requirements for the development of the BAM East, B4-7 and VW deposits.

Mining Leases:

A pre-requisite for the development of the BAM East, B4-7 and VW deposits is to secure tenure over an area of land sufficiently large to provide for development, mining, processing, infrastructure and buffer zones around the mining areas and for future expansion. Landore has been granted three mining leases ("Mining Leases"), which include mining and surface rights, over an area encompassing the B4-7 and VW deposits. The mining leases cover 23 existing exploration claims for a total area of 3,676 hectares and have been granted for 21 years renewable for further terms of 21 years.

Within the Mining Leases, Landore has the right, subject to provisions of certain Acts and reservations, to:

• Sink shafts, excavations etc., for mining purposes.

• Construct dams, reservoirs, railways, etc., as needed.

• Erect buildings, machinery, furnaces, etc., as required and to treat ores.

MIMINISKA-KEEZHIK LAKE PROPERTIES

Miminiska Lake Property:

Landore's Miminiska Lake property, 100% owned by Landore, covers an area of 5,494 hectares and is located approximately 130 kilometres to the north of the Junior Lake property and 115 kilometres to the east of the Pickle Lake mining camp in the highly productive and prospective Uchi Belt. Landore completed four drilling campaigns between 2003 and 2005 on the Miminiska gold occurrence with 47 NQ diamond drill holes for 9,349 metres, focusing on two potential shoots within a known 800 metres strike length. Excellent results were received with grades reporting up to 131 g/t gold over 0.5 metres and 40.2 g/t gold over 2.3 metres.

An independent technical review was completed in 2009 on the Miminiska Lake property which established the presence of two exploration targets:

• Miminiska Lake - 232,000 tonnes at 5.62 g/t gold

• Frond Lake - 271,000 tonnes at 5.10 g/t gold

for a total of 503,000 tonnes at 5.34 g/t for 86,357 ounces of gold.

Both these exploration targets are open along strike and at depth and have good potential for expansion and upgrading to a mineral resource.

Keezhik Lake Property:

Landore holds 43 mining claim blocks, for 9,470 hectares, in the highly prospective Keezhik Lake

area, located 20 kilometres north of Landore's Miminiska Lake property and 150 kilometres southeast of Goldcorp's Musselwhite Gold mine. Landore's land package spans over 20 kilometres across prime gold exploration targets.

The Keezhik Lake area is adjacent to the North-Caribou - Totogan Shear Zone that is also host to Goldcorp's Musselwhite Gold mine, located 150 kilometres to the northwest. The Musselwhite Gold mine has produced in excess of 2.5 million ounces with 2 million ounces of gold in mineral reserve. The Keezhik Lake claims are also located in the highly productive and prospective Uchi Belt.

During Q3 2011, a field reconnaissance, mapping and sampling campaign was carried out at Keezhik Lake. Field investigation of geophysical anomalies, prospective geological features, and historical gold showings revealed several areas of interest on the property warranting follow-up exploration work.

Planned Works:

Field exploration together with a 1,500 metre drilling campaign to test prospective areas.

ROOT LAKE LITHIUM PROPERTY:

As announced by the Company on 10 February 2016, Landore entered into an option agreement with Ardiden Ltd ("Ardiden" or the "Optionee"), pursuant to which Ardiden had the right to purchase Landore's 100% interest in Root Lake.

The option agreement provided that Ardiden could purchase Landore's interest in Root Lake on the following terms:

· a non-refundable deposit of C$50,000 payable to Landore upon the date of execution of the option agreement, payment of which has been received by the Company.

On 11 July 2016, Ardiden exercised its option to purchase 100% of Landore's Root Lake Lithium Property ("Root Lake"), located in Northwestern Ontario, Canada

The terms were:

· C$150,000 cash payable by Ardiden to Landore; and

· C$150,000 of ordinary shares of the Optionee, such ordinary shares to be: (i) issued by Ardiden to Landore, and (ii) issued at the 20-day VWAP prior to Ardiden's announcement dated 10th February 2016 (such VWAP to be calculated in accordance with the rules of the Australian Securities Exchange ("ASX"), excluding block trades) of Ardiden's ordinary shares; and

· The granting to Landore of a 3% net smelter royalty ("NSR") from minerals produced from Root Lake, to be effective at the Completion Date which will be evidenced by a customary royalty agreement. The Royalty Agreement shall include the right for Ardiden to purchase 50% of the Royalty (i.e. half of the 3%) from Landore for a payment of C$1,000,000.00.

On 22 July 2016, the Ardiden shares were sold.

 OTHER PROPERTIES:

Landore has other non-core exploration properties which include grass roots exploration and defined drill targets.

SOCIAL AND ENVIRONMENTAL RESPONSIBILITY:

Landore believes that a successful project is best achieved through maintaining close working relationships with First Nations and other local communities. This social ideology is at the forefront of all of Landore's exploration initiatives by establishing and maintaining co-operative relationships with First Nations communities, hiring local personnel and using local contractors and suppliers.

Careful attention is given to ensure that all exploration activity is performed in an environmentally responsible manner and abides by all relevant mining and environmental acts. Landore takes a conscientious role in all of its operations, and is aware of its social responsibility and its environmental duty.

Michele Tuomi, P.Geo.

Director/VP Exploration, Landore Resources Canada Inc.

30 May 2017

Consolidated statement of comprehensive income

For the year ended 31 December 2016

The Group's operating loss relates to continuing operations.

Consolidated statement of financial position

As at 31 December 2016

These consolidated financial statements were approved and authorised for issue by the Board of Directors on 30 May 2017.

William Humphries Richard Prickett

Director Director

Consolidated statement of changes in equity

For the year ended 31 December 2016

Consolidated statement of cash flows

For the year ended 31 December 2016

Notes

1. Publication of non-statutory accounts

The financial information, for the year ended 31 December 2016, set out in this announcement does not constitute statutory accounts.

This information has been extracted from the Group's financial statements to that date upon which the auditors' opinion is unmodified but contains an emphasis of matter opinion on going concern.

2. Basis of preparation

The financial information, for the year ended 31 December 2016, set out in this announcement, has been:

· computed in accordance with EU-Adopted International Financial Reporting Standards ("EU IFRSs"), however this preliminary announcement does not contain sufficient information to comply with IFRSs. The EU IFRSs compliant Consolidated Financial Statements will be published in the Annual Report for the year ended 31 December 2016; and

· prepared on the basis of the accounting policies as stated in the Annual Report for the year ended 31 December 2016.

3. Going concern

The consolidated financial statements are prepared on a going concern basis with a reasonable expectation that the Group has adequate resources to continue in operational existence for the foreseeable future. The Group's loss after tax for the year as at 31 December 2016 amounted to £1,724,629. The Group will need to raise more funds during 2017.

According to the cash flow forecast, the Group's total projected net expenditure for the year 2017 is £3.28 million. As of the year end the Group's bank balance amount was approximately £0.15 million. Since the year end the Group has raised £2.1 million hence the Group still needs an additional £1.03 million to fund the ongoing operations for 2017, and a further 0.24 million for administrative expenses in the first half of 2017. The Directors are confident that these funds can be raised from existing and new investors.

These conditions indicate the existence of a material uncertainty which may cast a significant doubt about the Group's ability to continue as a going concern. The consolidated financial statements do not include adjustments that would result if the Group was unable to continue as a going concern.

4. Annual Report

The Annual Report for the year ended 31 December 2016, Notice of the Annual General Meeting and Form of Proxy will shortly be available on the Company's website at www.landore.com and are being posted to shareholders today.

The Annual General Meeting of Landore Resources Limited (the "Company") will be held at La Tonnelle House, Les Banques , St Sampson, Guernsey , GY1 3HS on 3 July 2017 at 11.30 am.