Reabold Resources Regulatory News (RBD)

12 June 2023

Reabold Resources plc

("Reabold" or the "Company")

Further Investment in LNEnergy

Reabold Resources plc, the oil & gas investing company with a diversified portfolio of exploration, appraisal and development projects, is pleased to announce the exercise of certain of its options to increase its interest in LNEnergy Limited ("LNEnergy") by a further 13.2%, for an aggregate cash consideration of £500,000, to be satisfied through existing cash resources (the First Option), and £1,500,000 through the issue of 810,810,811 new ordinary shares of 0.1p each in the capital of the Company ("Ordinary Shares") at a price of 0.185 pence per Ordinary Share (the "Consideration Shares") to certain LNEnergy shareholders (the Shareholder Option).

These exercises follow the Company's announcement of 9 May 2023 entitled "Investment in LNEnergy" announcing Reabold's initial subscription to acquire a 3.1% interest in LNEnergy for a cash consideration of £250,000. As a result, Reabold will own a 16.2% equity interest in LNEnergy.

Furthermore, Reabold retains the Second Option, expiring 30 November 2023, to acquire, at its sole discretion, a further 10.5% in new shares in LNEnergy for an aggregate cash consideration of £1,800,000, which would be satisfied through either cash or shares, at the option of LNEnergy. If the Second Option is exercised, it would result in Reabold holding a 25.0% interest in the enlarged share capital of LNEnergy for a total cash and equity consideration of £4,050,000.

Key points

· LNEnergy's primary asset is an exclusive option over a 90% interest in the onshore Colle Santo gas field in Abruzzo, Italy, discovered in 1966:

o  Highly material gas resource, particularly in the context of onshore Europe; 65Bcf of 2P reserves[1]

o  Development ready, subject to approvals and permits

o  Two production wells already drilled, no additional drilling required; first gas targeted for early 2025

· Since the initial agreement on 9 May 2023, Reabold has undertaken significant due diligence work, resulting in increased confidence in the likelihood of permits being granted for field development:

o  Revised small-scale LNG development has smaller land footprint and strong environmental credentials

o  Two-year, long-term production test currently under review

o  Full production concession approval expected 2024 to allow 20+ year production

· Reabold's investment supports the development engineering and approvals process prior to project financing to bring the project to first gas, with attractive economic returns

o  LNEnergy believes that the field has potential to generate estimated €11-12m of post-tax free cash flow per annum

Stephen Williams, Co-CEO of Reabold, commented:

"The potential in the Colle Santo gas field presents an exciting opportunity for Reabold to pursue its investment strategy to fund low risk, near-term projects with a clear path to generating cash flow. Our detailed work and analysis in recent weeks have increased our confidence that development of the field will ultimately be approved. Reabold has acquired a significant interest in the project through its investment in LNEnergy, and we look forward to updating our shareholders with progress on the project throughout the year.

Admission and total voting rights

Application has been made for admission of the 810,810,811 Consideration Shares to trading on AIM ("Admission"), and it is expected that Admission will occur at 8.00 a.m. on or around 13 June 2023. The Consideration Shares will rank pari passu with the existing Ordinary Shares.

Following Admission, based on the Company's last Transaction in Own Shares announcement dated 12 June 2023 and subject to any further transactions in own shares pursuant to the ongoing share buyback in the interim period, the total issued share capital of the Company will consist of 9,988,198,720 Ordinary Shares. The Company holds 48,812,617 Ordinary Shares in treasury. Therefore, on Admission, the total number of voting rights in the Company will be 9,939,386,103 and this is the figure may be used by shareholders as the denominator for the calculations by which they will determine if they are required to notify their interest in, or a change in their interest in, the share capital of the Company under the FCA's Disclosure Guidance and Transparency Rules.

Unless otherwise defined, capitalised terms used in this announcement have the same meanings as ascribed to them in the Company's announcement of 9 May 2023 entitled "Investment in LNEnergy".

This announcement contains inside information for the purposes of the UK version of the market abuse regulation (EU No. 596/2014) as it forms part of United Kingdom domestic law by virtue of the European Union (Withdrawal) Act 2018, as amended.

For further information, contact:

Notes to Editors

Reabold Resources plc has a diversified portfolio of exploration, appraisal and development oil & gas projects. Reabold's strategy is to invest in low-risk, near-term projects which it considers to have significant valuation uplift potential, with a clear monetisation plan, where receipt of such proceeds will be returned to shareholders and re-invested into further growth projects. This strategy is illustrated by the recent sale of the undeveloped Victory gas field to Shell, the proceeds of which are being returned to shareholders and re-invested.