TSI.L Regulatory News (TSI)

8 February 2016

BLENHEIM NATURAL RESOURCES PLC (AIM: BNR)

Investment in IGS (International Geoscience Services) Limited

Blenheim Natural Resources Plc (the "Company" or "Blenheim") is pleased to announce that it has purchased 2,700 ordinary shares of £0.01 each in IGS (International Geoscience Services) Limited ("IGS"), representing 27.1% of IGS's issued share capital at a cost of £229,500 payable in cash, and that Blenheim Chairman, Chris Ells, has been appointed to the Board of IGS.

Dr Peter Zawada, Managing Director of IGS, has also increased his shareholding by purchasing 300 shares of £0.01 each, representing 3% of IGS's issued capital at a cost of £25,500 payable in cash. Dr Zawada's shareholding in IGS now represents 6.7% of its issued share capital.

IGS was "spun out" of the British Geological Survey ("BGS") in 2011 as a specialist consultancy company providing geological mapping and bespoke services to governments, development agencies and the mineral exploration sector in general including mining companies.

IGS is based in Keyworth, near Nottingham, and located within the BGS campus, where it interacts closely with this world renowned organisation. The roots of the BGS go back to 1835 and it advises the British government on all aspects of geosciences and is a significant component body of the Natural Environment Research Council ("NERC"). NERC remains a 22.6% shareholder of IGS.

David Ovadia MBE, a Non-executive Director on the Board of Blenheim is a founding director and shareholder of IGS, and its current chairman. David Ovadia's shareholding in IGS represents 10.1% of its issued share capital.

IGS has grown rapidly since inception and is currently servicing major contracts in Africa, Afghanistan and elsewhere, funded by the World Bank and the UK's Department for International Development, amongst others. During the year ended 31 December 2015, the unaudited management accounts of IGS show a profit before tax of approximately £250k and net assets of approximately £700k.

IGS will shortly launch its innovative new mineral prospectivity software package IGS Xplore, designed to support and de-risk early-stage mineral exploration. This tool is unique as it is an artificial intelligence based analytical tool, rather than a purely geographical information systems based methodology, and uses expert knowledge to identify potentially prospective areas of mineralisation based on non-statistical geological rules governing up to 50 known mineralisation models. IGS Xplore generates prospectivity maps for regions or countries using base geodata quickly and efficiently.

IGS has worked closely with the World Bank on what was coined the 'Billion Dollar Map', a World Bank initiative to produce a coherent 'one stop' data depository of all geological and mineral maps for Africa. Blenheim believes that IGS Xplore will enable IGS to be an important focus for this endeavour.

Blenheim believes that its acquisition of a significant interest in this technology platform, and its access to the exceptional reputation and experience of the IGS team, represents a good investment in its own right and a valuable addition to Blenheim's portfolio of companies operating in the natural resources sector.

IGS has a busy order book extending several years into the future and a strategy of growth and diversification. Once the extractives sector moves out of the current recession, the Blenheim directors believe that it will require exactly the types of services, data and technologies which IGS has been developing.

Chris Ells commented, "I am delighted that Blenheim is taking this material position in IGS, a rapidly growing company with significant potential. We believe that IGS has excellent growth prospects and links our Company to the broader spectrum of geological services and geoscience information which is modernising the natural resources sector. We anticipate strong synergies developing between IGS and Blenheim and believe that IGS's geo-data system, IGS Xplore, will be an important product aimed at all segments of the mining exploration and extractives sector and an important springboard towards broadening and developing Blenheim's portfolio of investee companies".

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