TSI.L Regulatory News (TSI)

25 May 2016

BLENHEIM NATURAL RESOURCES PLC (AIM: BNR)

IGS (International Geoscience Services) Limited update

Blenheim Natural Resources Plc ("Blenheim" or the "Company") is pleased to announce that IGS (International Geoscience Services) Limited ("IGS") has released its unaudited annual results for the year ended 31 December 2015 ahead of its AGM on 3rd June. Blenheim owns 27% of the issued share capital of IGS. The following extracts from the IGS unaudited annual report are of interest to the Company's shareholders.

"In the five years since IGS started trading it has not only established itself as a globally competitive provider of services in modernising, collecting and supervising geodata acquisition for national governments but has also developed its own IP and commercial software service known as IGS Xplore. This is an innovative technology platform that generates prospectivity results for a wide range of commodities and mineralisation styles.

In the year ending 31 December 2015, IGS had a turnover of £1.23 million with a net profit before tax of £228k. Turnover and profit were up by over 40% on the previous year.

IGS has embarked on a campaign of diversifying its client base outside of Africa, particularly in Central and South East Asia. It has established a firm presence in Afghanistan at the Ministry of Mines and Petroleum and the Afghanistan Geological Survey, funded through the UK Department for International Development. Two further contracts in Afghanistan are at the negotiation stage. Considerable effort has been made in developing a presence in India. IGS has recently won a starter contract in India that gives IGS an excellent platform from which to win a further multi-million pound project for the next three years. IGS, in collaboration with GTK (Finland) and PGW (Canada), has won a World Bank funded contract in Laos, with indications showing that further programmes are being considered by that Government.

Recent successes include work in Cameroon and Burkina Faso with a substantial phase-two project for Burkina being considered by the government and the World Bank. IGS has now completed large work programmes in Tanzania and Malawi, with further work in Tanzania a possibility. IGS is also tendering for several projects in the Democratic Republic of the Congo.

IGS has invested considerably in the development of IGS Xplore, a software product and service that produces prospectivity maps and analysis with a high degree of automation. IGS Xplore is a de-risking application for early stage decision making of what and where to fund, and carry out, mineral exploration. A novel technology platform was developed that is easily scalable to include other related datasets to enhance decision making. The service was launched at INDABA, Cape Town and PDAC, Toronto in February and March 2016 respectively. IGS is pleased with the response from the market for the system, and has already received two significant endorsements from international mining consultancy companies. In the coming months, IGS intends to significantly upscale the system, bringing in additional staff and facilities and actively marketing to the exploration and mining finance sectors."

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