TSI.L Regulatory News (TSI)

27 April 2017

Blenheim Natural Resources Plc

("Blenheim" or the "Company")

Conditional Placing to Raise £1,000,000 and buy back of deferred shares

Granting of Prospecting Licence for Menianbala in Southern Mali to prospective investee company, Nashwan

Appointment of Technical Consultants

The Company is pleased to announce that it has raised a total of £1,000,000 before expenses through a conditional placing of 222,222,222 ordinary shares of 0.1 pence each in the capital of the Company ("Ordinary Shares") at a price of 0.45 pence per Ordinary Share (the "Placing Price"), subject to the approval of the resolutions granting the directors the authority to issue securities on a non-pre-emptive basis, to be put to shareholders at the Company's general meeting on 28 April 2017 (the "Placing"). The Placing Price represents a discount of 14.3 per cent to the middle market closing price of the Company's Ordinary Shares on 26 April 2017.

The Company will use £1 of the net proceeds of the Placing to buy back and cancel all of the deferred shares of £49 each in issue, pursuant to the authority granted by the shareholders at the Company's general meeting held on 7 February 2017. The balance of the net proceeds of the placing will be used by the Company to make further investments in accordance with its investing policy, including to fund the cash consideration to acquire a 30 per cent interest in Nashwan Holdings Ltd ("Nashwan") (as set out in the Company's announcement dated 30 March 2017), and to provide Blenheim with general working capital.

In connection with the Placing, the Company has also agreed to issue 11,111,111 warrants over Ordinary Shares to Cornhill Capital Limited, the Company's joint broker (the "Broker Warrants"). Each Broker Warrant entitles the holder to subscribe for one Ordinary Share at an exercise price of 0.65 pence per Ordinary Share and will be exercisable at any time for a period of two years from the date of issue of Ordinary Shares pursuant to the Placing.

The Placing, which was oversubscribed, is conditional on and subject to, inter alia, the passing of the relevant shareholder resolutions at the general meeting of the Company to held on Friday, 28 April 2017. As announced on 30 March 2017, the completion of the acquisition of the 30 per cent interest in Nashwan is subject to, inter alia, shareholders granting the directors with the authority to issue and allot the share consideration by 30 April 2017.

In connection with the conditional investment in Nashwan, the Company has received notice from Nashwan that its application for a prospecting permit for Menianbala in Southern Mali has been successful. Menianbala is the second prospecting permit in the Bouguoni lithium pegmatite province of Mali to be granted to Nashwan. Nashwan has exploration licence applications pending over the areas covered by both the Menianbala and Djidje prospecting permits and Blenheim's investment in Nashwan is conditional upon Nashwan successfully being granted exploration licences over both its Menianbala and Djidje projects within 90 days of the date of the share purchase agreement, or by such other date agreed between the parties to the share purchase agreement.

Appointment of Technical Consultants

The Company is also pleased to announce the appointment of corporate and technical consultants Plutus Strategies ("Plutus"), to assist in the review and analysis of its current and potential future investments, particularly Blenheim's initial conditional lithium investment in West Africa.

As retained advisors, Plutus will work closely with the directors of the Company to advise on the Company's investment activities, providing technical input and analysis relating to the Company's investments, identifying potential new investment opportunities and assisting to evaluate future investment opportunities that may arise.

Blenheim's Chairman, Chris Ells, commented: "The Placing will provide Blenheim with the firepower to actively pursue its burgeoning pipeline of investment opportunities with particular emphasis on the lithium space in West Africa.

In addition, the appointment of Plutus will provide a key supporting role to the Board, helping to deliver the Company's investment strategy, including providing technical assistance in relation to the previously announced lithium investment opportunities. Plutus will complement the Blenheim team in evaluating and developing existing and potential projects, helping the Company to add and realise value for its shareholders."

Ends

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The information contained within this announcement is deemed to constitute inside information as stipulated under the Market Abuse Regulations (EU) No. 596/2014. Upon the publication of this announcement, this inside information is now considered to be in the public domain.