WRES.L Regulatory News (WRES)

16 August 2016

W Resources Plc

("W" or the "Company")

Finance and Offtake Package Secured for La Parrilla FTM Mine Development

W Resources Plc (AIM:WRES), the tungsten, copper and gold, exploration and development company with assets in Spain and Portugal, is pleased to announce a package of financing and tungsten off-take arrangements for the start-up of the La Parrilla FTM mine, from ICD Alloys and Metals LLP

ICD Alloys and Metals has provided a forward sale contract facility for USD1.2m and $200,000 of this facility has been paid to W Resources to date. In addition, W Resources and ICD Alloys and Metals have reached a non-binding in principle agreement to provide equipment finance for the La Parrilla crusher at a value of USD2m and evaluate funding for the full project to 1.95mtpa / 2,500 tonnes of tungsten concentrate.

As part of the financing, tungsten sales will be contracted to one of the largest US tungsten processing companies.

Initial mining, plant commissioning and tungsten concentrate production and sales to customers are expected to commence in Q4 2016 using the existing on-site plant and facilities at an initial rate of 400tpa. Installation of a new crusher with the capacity to process the full 1.95mtpa / 2,500tpa production has been brought forward with this financing and is expected to be operational in early Q1 2017 with the remaining plant infrastructure on schedule for installation by mid-2017.

Finance discussions for provision of equipment finance or debt finance for the remaining two core La Parrilla plant packages, the Jig and Mill (EUR4.2m) and the concentrator plant (EUR2.2m), are advancing and W has agreed with ICD Alloys and Metals to explore options for equipment or JV investment finance for these packages and associated development in the next phase of discussions.

As announced on 27 July 2016, the first mine blast was completed on 26 July 2016 together with a 20 hole lateral extension RC drilling programme. Upgrade of the existing concentrator plant is advancing including the installation of tin production equipment for the purpose of boosting revenues and reducing unit operating costs (after tin credits). The price of tin is up 26% since January 2016 and is currently trading at over USD18,000 per tonne.

Michael Masterman, Chairman of W Resources commented: "It's great to have secured these agreements for the initial start-up of the FTM mine in Q4 2016. The customer and equipment financing facilities enable us to move forward on this important phase of the project and allows us to start-up at low operating costs and with installed crushing capacity sized to the full 2,500 tungsten concentrate development."

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About La Parrilla

The La Parrilla project site is situated in the Extremadura region of southwest Spain, in the Provinces of Caceres-Badajoz, approximately 310 km southwest of Madrid. The site has exceptional infrastructure in place, which is accessed directly from the highway along a 3 km asphalt road and is serviced by electricity and water. The project comprises a tungsten mine and a tungsten tailings project. The mineral resource estimated by Golder in February 2016 at 0.04% WO3 cut-off grade is 51 million tonnes at 0.096% WO3 and 0.108 Sn, making it one of the largest tungsten deposits in the western world.

Technical information in this report and on the W website has been prepared in accordance with the JORC Code and approved for inclusion by Mr Fernando de la Fuente, is a 'qualified person' in respect of the AIM Rules for Companies with over 41 years' experience in the Exploration and Mining Geology industry. Mr de la Fuente holds a B.Sc. in Geology and an MSc in Geology from the University of Granada in Spain. He is also a member of the Spanish College of Geologists (Number 49), the Spanish Society of Mineralogy, founder member of the Spanish Society of Geology, member of the Spanish Association of Applied Geology to Mineral Deposits, member of the Society for Mining, Metallurgy and Exploration, Inc., member of PDAC.