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North River Resources plc / Ticker: NRRP / Index: AIM / Sector: Mining

North River Resources plc ("North River" or the "Company")

Project update and latest Namib resource drilling results: high grade hits including an intersection of 57.1 metres (true width 8.5 metres) at 28.6% zinc

North River Resources plc, the AIM quoted resource company, wishes to provide the early results from the ongoing underground diamond drilling at its flagship Namib Project in Namibia together with an update on project activities.

Highlights

- Initial drill results from the Northern Orebody show significant intersection of mineralisation

- An outstanding high grade intersection of 57 metres (true width 8.5 metres) at 28.6% zinc, extending mineralisation 80 metres below level 5 in the North

- 3,800 metre drilling programme progressing well towards completion at end of June 2016

- 5 Level development tunnel over 95% complete

- Other project workstreams remain on hold pending clarity on the timing and conditions attaching to both the Mining Licence and the proposed Namibian broad based empowerment legislation

- Working capital fundraising required shortly

High grade intersections indicate continued mineralisation below the existing North orebody

Drilling is currently being undertaken from the 5 Level development drive below the current North resource to test the extensions at depth of these ore envelopes. The drilling campaign also envisages infill and extension drilling in the existing Southern resource.

Further to the drilling results announced on 12 February 2016, the Company wishes to provide initial results from its ~3,800 metre drilling campaign. 14 holes totalling 1,472 metres have been drilled by the Company's own Kempe U3-9BQ together with a larger Diamec 262 rig under contract. Eight holes have been reported in Table 1 below. A further three holes are awaiting assay results and three holes are awaiting sampling. The Kempe is being used to search for shallower targets up to ~80m below the modelled envelopes while the more powerful Diamec rig is used for drill holes up to 200m deep. The drilling campaign is targeted for completion by end of June 2016.

Significant mineralisation was intersected in four holes:

- NLDD067: 57.1m (true width of 8.5 metres) at 28.6% zinc and 33g/t silver*;

- NLDDK074: 3.0m (true width of 1.5 metres) at 35.0% zinc and 11.9m (true width of 6.0 metres) at 20.8% zinc;

- NLDDK075: 8.7m (true width of 4.0 metres) at 19.5% zinc and 3.0m (true width of 2.0 metres) at 12.2% zinc; and

- NLDDK076: 3.6m (true width of 1.3 metres) at 9.8% zinc, 2.6% lead and 42g/t silver, plus 8.1m (true width of 2.5 metres) at 6.7% zinc, 7.6% lead and 101g/t silver

*Silver results are provisional, awaiting QAQC checks

Assays are awaited for 3 additional holes (NLDD068, NLDD069 and NLDDK077). All these holes visually indicate mineralised intercepts with preliminary XRF Niton analysis supporting high grade massive sulphide mineralisation.

The early results from the drilling campaign indicate the continuation of mineralisation 80 metres below the existing Northern part of the orebody, providing support for the Company's confidence in delivering an increased resource estimate for the Namib project following completion of the drilling campaign. As would be standard practise, all grade intercepts will be critically evaluated as part of the update to the Mineral Resource Estimate in due course, to ensure that lower angle drill intercepts returned (those with very high intercept lengths relative to true widths) do not bias the resulting grade estimation.

The information in this release that relates to Exploration Results is based on information compiled by Mr. Galen White, Principal Geologist of CSA Global (UK) Ltd and a Competent Person who is a Fellow of the Australasian Institute of Mining and Metallurgy (FAusIMM). Mr White has sufficient experience which is relevant to the style of mineralisation and type of deposit under consideration and to the activity being undertaken 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. White consents to the inclusion in this release, of matters based on his information, in the form and context which it appears.

North River CEO James Beams commented, "It is very pleasing to see our confidence in the further geological potential of the Namib project being borne out by these initial results from the drilling campaign carried out from the 5-level development drive. Whilst NLDD067 is only one drill hole, with a low angle to the trend of the intersection, the exceptional grade and consistency of mineralisation augurs well as we look to grow the resource base. I look forward to releasing further drilling results as we progress with the programme towards a larger resource base and longer mine life."

Figure 1: Long section of the Mine Looking North East

http://www.rns-pdf.londonstockexchange.com/rns/6510S_-2016-3-18.pdf 

Figure 2: Core photos from part of the long intersections in hole NLDD067 (A) and hole NLDD069 (B).

http://www.rns-pdf.londonstockexchange.com/rns/6510S_1-2016-3-18.pdf 

Figure 3: Core photos of the 61.9m intersection in hole NLDD067

http://www.rns-pdf.londonstockexchange.com/rns/6510S_2-2016-3-18.pdf 

Table 1: Significant intercepts table

* Provisional results for silver as being re-assayed due to laboratory CRMs under reporting by approximately 5%

** Ag results not available (pending)

Significant Intercepts are based on the following criteria:

· Minimum intercept length: 3 metres

· Maximum internal waste: 1 metres

· Cutoff Lead/zinc combined: 1 %

· True thickness lengths were obtained by measuring intercepts manually from a perpendicular-to-dip sectional review. Lengths are approximate due to the variable nature of the lodes.

Update on forward project work programme

As previously announced, the Company has accepted the Namibian Ministry of Mines ("the Ministry") notice of preparedness to grant a mining licence for the Namib Project and now has a sixty day period (expiring on 26 April 2016) to submit a proposal to the Ministry addressing the supplementary terms and conditions to be agreed between the Company and the Ministry before the mining licence is issued. In parallel the Company also continues to examine the implications of the Government of Namibia's proposed introduction of broad based empowerment legislation. The extent to which this proposed legislation would place additional obligations on the Namib Project, and the timeframe for finalising and enacting this legislation, is not yet clear but undoubtedly remains an area on which the Company will need further clarity in due course.

As a result of this ongoing uncertainty in timing and terms under which the mining licence may be issued as well as the timeframe for gaining clarity over the potential implications of the proposed empowerment legislation, the Company has revised its short term work programme for the Project to focus on growing the mineral resource base to support a longer initial mine life and improved project economics in a more challenging commodity price environment:

· Development of the 5-level drive: This mine development is required for resource drilling access at depth in the North orebody. The development is progressing well and is over 95% complete. Completion is expected ahead of the scheduled end of March 2016 target. No further mine development is planned in the short term, however a reduced mining team will be retained to support the ongoing underground drilling programme;

· Drilling programme: The 3,800m resource drilling campaign continues as planned and remains scheduled for completion at the end of June 2016. This programme is continually being assessed and refocused as drill data is collected.

Other workstreams required to advance the project towards a construction decision, including front end engineering and design ("FEED"), remain on hold pending further clarity on the timing and conditions attaching to the Mining Licence and the proposed broad based empowerment legislation in Namibia. As a consequence and in order to conserve cash resources, the Project Director, Andrew Little, will be leaving the Company, and the project team will be reduced by 6 people. The Company has implemented further corporate cost saving measures commensurate with a lower level of project activity.

During this period, the Company's primary focus shall be securing the mining licence for Namib under appropriate terms and with clarity over the implications of the proposed empowerment legislation on the Project.

Funding update

The Company will shortly require further working capital funding to cover ongoing corporate costs and the revised project work programme. The Company is evaluating options for this funding and expects to provide a further update shortly.

Appendix: Assay Quality Assurance Quality Control

Diamond core samples were half core samples and are selectively sampled based on observable sulphide mineralisation. Approximately one metre of waste is sampled either side of mineralisation.

Samples were prepared and analysed for iron, lead and zinc at Bureau Veritas Namibia (Swakopmund). They were fused with sodium peroxide, dissolved in dilute HCL and analysed by Inductively Coupled Plasma (ICP) Optical Emission Spectrometry. Silver samples are dissolved in a multi acid digest and assayed by Inductively Coupled Plasma (ICP) Optical Emission Spectrometry.

The assay Quality Assurance Quality Control (QAQC) programme included certified reference materials (CRMs) from African Mineral Standards (AMIS) in Johannesburg, South Africa; blanks and duplicate samples. Assay QC results were monitored and where issues were noted, the laboratory is requested to re-assay the affected samples. Silver results from hole NLDD067 are being re-assayed due to the laboratory internal standards under-reporting by approximately 5%. No other significant issues were noted with the QC samples for the drill holes in this press release.

**ENDS**

For further information please visit www.northriverresources.com or contact:

About North River Resources: North River Resources (AIM ticker: NRR) is a multi-asset mining exploration and development company with projects located in Namibia and Mozambique. The Company's primary focus is bringing its flagship Namib project into production. The Namib project is the restart of a high grade zinc-lead underground mine located in Namibia.