WRES.L Regulatory News (WRES)

Mineral Resources for Sao Martinho Deposit using a 0.5g/t Au cut-off grade within mineralised domain (Golder Associates)

Mt

Au(g/t)

Au content (oz)

Indicated

0.48

1.03

17,363

Inferred

2.56

1.05

94,624

Total

3.04

1.04

111,987

W Resources Plc

Michael Masterman

T: +44 (0) 20 7193 7463

www.wresources.co.uk

Grant Thornton UK LLP

Colin Aaronson / Jen Clarke / Harrison Clarke

T: +44 (0) 20 7383 5100

SI Capital - Joint Broker

Andy Thacker / Nick Emerson

T: +44 (0) 1483 413500

www.sicapital.co.uk

Gable Communications

Justine James

T: +44 (0) 20 7193 7463

M: +44 (0) 7525 324431

Northland Capital Partners - Joint Broker

John Howes / Abigail Wayne (Corporate Broking)

T: +44 (0) 20 03861 6625

www.northlandcp.co.uk

Section 1 Sampling Techniques and Data

Sampling Techniques

The Sao Martinho deposit was sampled using diamond drill holes (DD) and Reverse Circulation (RC) drill holes.

All sampling at Sao Martinho was collected by diamond drill and reverse circulation drilling drilled by the operators Drillcon, Genfor, CGS/Geonor and Terratec.

Core drilling was used to obtain core samples. Sampled intervals included zones of visible sulfide mineralisation and alteration/veining along with zones of gossanisation. Sampling was taken also above and below mineralisation/alteration on 1-2 m intervals when applicable.

Trenches were excavated using a backhoe digger to a depth of 1 m to 2 m or to the bedrock to avoid surficial clays. Rock chip sampling from trenches was performed to determine whether prospective Au mineralised material may yield any anomalous Au values and not to determine average grades.

All rock samples were packed on thick plastic bags with sample reference indicated both in the outside and inside with permanent ink marker pens.

Nature and quality of sampling (e.g. cut channels, random chips, or specific specialised industry standard measurement tools appropriate to the minerals under investigation, such as downhole gamma sondes, or handheld XRF instruments, etc.). These examples should not be taken as limiting the broad meaning of sampling.

Include reference to measures taken to ensure sample representivity and the appropriate calibration of any measurement tools or systems used.

Aspects of the determination of mineralisation that are Material to the Public Report. In cases where 'industry standard' work has been done this would be relatively simple (e.g. 'reverse circulation drilling was used to obtain 1 m samples from which 3 kg was pulverised to produce a 30 g charge for fire assay'). In other cases more explanation may be required, such as where there is coarse gold that has inherent sampling problems. Unusual commodities or mineralisation types (e.g. submarine nodules) may warrant disclosure of detailed information.

Drilling Techniques

DD method uses NQ and HQ drill sizes. Core was not oriented.

RC drilling, during the 2007, 2012 and 2013 campaigns, used 140 mm and 114 mm diameter face-sampling bits.

Since 2012 all drill holes have been subject to downhole surveying, to record variations from the original inclination. Surveys have been recorded at varying intervals, using EZ-Trac from Reflex Instruments. Previous campaigns use the survey obtained from the collar.

Drill type (e.g. core, reverse circulation, open-hole hammer, rotary air blast, auger, Bangka, sonic, etc.), and details (e.g. core diameter, triple or standard tube, depth of diamond tails, face‑sampling bit or other type, whether core is oriented and if so, by what method, etc.).

Drill Sample Recovery

Sample recovery was assessed visually, recorded onto a logging sheet, photographed (partially) and inserted in an Excel spreadsheet.

Method of recording and assessing core and chip sample recoveries and results assessed.

Measures taken to maximise sample recovery and ensure representative nature of the samples.

Whether a relationship exists between sample recovery and grade and whether sample bias may have occurred due to preferential loss/gain of fine/coarse material.

Logging

Logging was performed after core fragment reconstruction in the core trays, and a line was marked along the core axis.

Diamond core was recently geotechnically logged, and complete data (recovery, RQD, joint orientation, spacing, roughness and weathering) was recorded onto a logging sheet and inserted in an Excel spreadsheet.

Geological core logging was systematically done. Data collection (lithology, alteration, structural data mineralisation and sampling intervals) was recorded onto a log sheet and inserted in an Excel spreadsheet.

All drill holes have been logged in full.

Whether core and chip samples have been geologically and geotechnically logged to a level of detail to support appropriate Mineral Resource estimation, mining studies and metallurgical studies.

Whether logging is qualitative or quantitative in nature. Core (or costean, channel, etc.), photography.

The total length and percentage of the relevant intersections logged.

Sub‑Sampling Techniques and Sample Preparation

The core was cut by diamond saw along a line marked down the centre of the core, splitting the core into two equal halves. One half of the core sample intervals selected was sent for analysis and the remaining core was retained in wooden core boxes for future reference.

The RC drilling sampling (1/8 of the drill material) is performed at the drill site and all rejects (7/8 of the drill material) are transported to a storage facility.

The historical sampling at Sao Martinho was analysed by multi-elemental analytical methods (not fully specified) or Fire Assay for gold.

Since 2007 the core samples were shipped to ALS Laboratory in Seville, Spain for assaying. At ALS facilities, samples were crushed (70% µm) to produce a representative sub‑sample for analysis by: Four acid digestion and multi-element ICP-ME (ref. ME-MS61) determination of 48 elements. Gold by Fire Assay and ICP-AES finish (Ref. Au-AA25). Samples exceeding the upper detection limit are re-assayed by the method ref. Au-GRA21 (Au by fire assay and gravimetric finish).

The following elements were included in the analysis: Au, Ag, Al, As, Ba, Be, Bi, Ca, Cd, Ce, Co, Cr, Cs, Cu, Fe, Ga, Ge, Hf, ln, K, La, Li, Mg, Mn, Mo, Na, Nb, Ni, P, Pb, Rb, Re, S, Sb, Sc, Se, Sn, Sr, Ta, Te, Th, Ti, Tl, U, V, W, Y, Zn, Zr.

If core, whether cut or sawn and whether quarter, half or all core taken.

If non‑core, whether riffled, tube sampled, rotary split, etc., and whether sampled wet or dry.

For all sample types, the nature, quality and appropriateness of the sample preparation technique.

Quality control procedures adopted for all sub‑sampling stages to maximise representivity of samples.

Measures taken to ensure that the sampling is representative of the in situ material collected, including for instance results for field duplicate/second-half sampling.

Whether sample sizes are appropriate to the grain size of the material being sampled.

Quality of Assay Data and Laboratory Tests

Since 2007 drilling campaigns, internationally certified standards and blanks were regularly introduced among core samples.

Internal laboratory cross checking methods are implemented by ALS.

Assay data reported as per laboratory final reports and certificates.

The nature, quality and appropriateness of the assaying and laboratory procedures used and whether the technique is considered partial or total.

For geophysical tools, spectrometers, handheld XRF instruments, etc., the parameters used in determining the analysis including instrument make and model, reading times, calibrations factors applied and their derivation, etc.

Nature of quality control procedures adopted (e.g. standards, blanks, duplicates, external laboratory checks) and whether acceptable levels of accuracy (i.e. lack of bias) and precision have been established.

Verification of Sampling and Assaying

No twin drill holes are currently available.

Primary logging paper sheets are stored at the office, data entered into Excel spreadsheets as is and coded, both stored in the server and in an external hard drive.

Since 2007 all Iberian Resources core boxes are photographed and a photo archive is maintained within the drilling database.

The verification of significant intersections by either independent or alternative company personnel.

The use of twinned holes.

Documentation of primary data, data entry procedures, data verification, data storage (physical and electronic) protocols.

Discuss any adjustment to assay data.

Location of Data Points

Locations of the Iberian Resources drill holes carried out prior to 2007 were assumed from historical topographic maps. For the drill holes carried out after 2007 the location was taken from the drilling logging sheets.

Historical drill hole locations were converted from the local Portuguese coordinate system to international UTM Datum WGS84. The coordinates from a few drill holes were collected graphically from hardcopy maps and checked in the field when possible.

The Grid system is WGS84-UTM-ZONE29N.

Topographic information has been sourced from a publically available database ReNEP produced by Portuguese Geographic Institute.

Accuracy and quality of surveys used to locate drill holes (collar and downhole surveys), trenches, mine workings and other locations used in Mineral Resource estimation.

Specification of the grid system used.

Quality and adequacy of topographic control.

Data Spacing and Distribution

The drill holes completed at Sao Martinho were designed for testing different targets and have irregular spacing.

The general spacing is around 100 m by 100 m in the West Block and 20 m by 20 m to 30 by 30 m in the East Block and considered sufficient to establish Mineral Resource.

Data spacing and distribution is currently considered by the Competent Person to be sufficient for Indicated and Inferred Mineral Resources.

Data spacing for reporting of Exploration Results.

Whether the data spacing and distribution is sufficient to establish the degree of geological and grade continuity appropriate for the Mineral Resource and Ore Reserve estimation procedure(s) and classifications applied.

Whether sample compositing has been applied.

Orientation of Data in Relation to Geological Structure

The orientation of drilling is, in most of cases, approximately perpendicular to the strike of the main lithologies foliation.

The dip of the drill holes is not perpendicular to the true dip of the mineralised loads, so the intersections do not represent true widths.

Whether the orientation of sampling achieves unbiased sampling of possible structures and the extent to which this is known, considering the deposit type.

If the relationship between the drilling orientation and the orientation of key mineralised structures is considered to have introduced a sampling bias, this should be assessed and reported if material.

Sample Security

Samples are kept in labelled wooden (at Iberian facilities in Armamar) and cardboard (at LNEG facilities in Lisbon) core boxes in a locked building.

Drill cores from the Portoglobal campaigns from 1996 and 1997 are yet not located.

Industry standard practices are applied.

The measures taken to ensure sample security.

Audits and Reviews

Golder has not undertaken audits or reviews of the sampling techniques and data. Golder is not aware of any audits or reviews carried out by other parties.

The results of any audits or reviews of sampling techniques and data.

Section 2 Reporting of Exploration Results

Mineral Tenement and Land Tenure Status

Exploration license MN/PP006/12 signed on 23th March 2012 between Iberian Resources Portugal Recursos Minerais Unipessoal Lda, 100% owned by W Resources Plc, and the Portuguese Ministry of Economy and Employment.

An addendum to the contract dated from 29th September 2015 incorporates the block of Sao Martinho into the initial license and extends the contract until 29 September 2018.

Type, reference name/number, location and ownership including agreements or material issues with third parties such as joint ventures, partnerships, overriding royalties, native title interests, historical sites, wilderness or national park and environmental settings.

The security of the tenure held at the time of reporting along with any known impediments to obtaining a licence to operate in the area.

Exploration Done by Other Parties

The first exploration campaigns were carried out between 1989 and 1993 by the Rio Tinto's Portuguese subsidiary Riofinex, which included trenching and drilling of the first diamond holes in the project area, with four holes located at Sao Martinho.

Portuglobal and Auspex carried out more trenching and new diamond drilling in Sao Martinho during the period 1996 to 1997.

Iberian Resources acquired the Portalegre project (partly coincident with present CAA license) in 2007 carrying out further trenching and drilling in all sectors using diamond and reverse circulation methods. This contract expired in 2012.

Acknowledgment and appraisal of exploration by other parties.

Geology

The Sao Martinho gold deposit is located in east-central Portugal within the southern trend of the Tomar Cordoba Shear Zone (TCSZ) which separates two major tectonostratigraphic zones within the Iberian massif: the Central Iberian Zone to the north and the Ossa Morena Zone to the south. The TCSZ comprises a geologically complex zone of intense deformation and metamorphism with sinistral displacement of up to 300 km where rocks are arranged in a flower structure with the oldest formations, with the Blastomylonitic Belt (BB) at its core.

The Portuguese sector of the TCSZ comprises a series of fault-bounded, polymetamorphic structural-tectonic subdomains defined as a flower-like structure centred around a core of migmatitic gneisses termed the Blastomylonitic Belt. Studies indicate that the complex geometry of this region reflects the structure developed during Variscan transcurrent movements parallel to the orogen trend, and that the TCSZ is made up of a system of composite flower-like structures with opposite NE- and SW verging narrow asymmetric folds with steep axial planes, superimposed on previous Variscan and Cadomian tectonic fabrics.

Gold deposits are hosted in the Neoproterozoic Serie Negra rocks, which is metamorphosed to amphibolite facies to at Sao Martinho. Sao Martinho is characterised by two distinct episodes of gold mineralisation. The first comprises disseminated and veinlet styles of mineralisation and is closely associated with foliation-parallel quartz veinlets. The second episode, of probably magmatic origin, is associated with quartz veins cross-cutting the foliation. Alteration is difficult to recognise at Sao Martinho but silicification, choritisation, muscovitisation/sericitisation plus tourmalinitisation, albitisation and carbonatisation are recognised.

Deposit type, geological setting and style of mineralisation.

Drill hole information

Not applicable. Exploration results have previously been reported. This Table relates to the reporting of the Mineral Resource estimates.

Data aggregation methods

For the resource estimate, samples return with below detection limit grades are replace with half the detection limit and samples with grades above upper detection limit is replace with the upper detection limit.

No metal equivalents used or stated.

Relationship between mineralisation widths and intercept lengths

Drill intersections are not reported as true widths.

Diagrams

Not applicable. Exploration results have previously been reported. This Table relates to the reporting of the Mineral Resource estimates.

Balance reporting

Not applicable. Exploration results have previously been reported. This Table relates to the reporting of the Mineral Resource estimates.

Other substantive exploration data

Not applicable. Exploration results have previously been reported. This Table relates to the reporting of the Mineral Resource estimates.

Further work

Further work will include detailed interpretation of results and further diamond core drilling.

Section 3 Estimation and Reporting of Mineral Resources

Database Integrity

All drill holes and trenching data is contained in an Excel database and stored by Iberian. Validations in the database were carried out to prevent the accidental duplication, alteration or deletion of records suitable for use during this resource estimate.

Measures taken to ensure that data has not been corrupted by, for example, transcription or keying errors, between its initial collection and its use for Mineral Resource estimation purposes.

Data validation procedures used.

Site Visits

A site visit was carried out by Jorge Peres (Senior Resource Geologist and MAusIMM member) to the area during the period of 5 to 7 May 2016. The purpose of the visit was to hold discussions with project staff and gain familiarity with the deposit geology and scale, check land topography and confirm exploration activities locations.

The region presents acceptable infrastructure with paved roads, the municipality of Alter do Chao is located at less than 5 km from the area. Unpaved roads crossing the area are in good condition and a good relation is maintained with the land owners. Land use and topography should not be an impediment in developing the site and no restrictions in space are identified.

Drill holes and trenches locations were confirmed using a handheld GPS unit. Drill cores are stored in two locations: the Laboratorio Nacional de Energia e Geologia (LNEG) in Lisbon and the Iberian Resources facilities in Armamar (northern Portugal). Six of the drill holes were reviewed against the geology logging and assay reports and are considered consistent and appropriately stored.

Documents are kept at Iberian Resources office in Armamar in a well organised manner.

Comment on any site visits undertaken by the Competent Person and the outcome of those visits.

If no site visits have been undertaken indicate why this is the case.

Geological Interpretation

Iberian provided interpreted mineralisation wireframes with base on the continuity of Au grades between drill holes and alignment with the directions from the foliation measured from the drill cores. The Au cut-off grade of 0.3 g/t was applied to define the limits of the mineralisation.

Golder used the wireframes to define the major directions and to support creating a mineralisation indicator envelope defined by Au samples above 0.3 g/t. Samples inside the envelope were included within the mineralised zone.

Confidence in (or conversely, the uncertainty of) the geological interpretation of the mineral deposit.

Nature of the data used and of any assumptions made.

The effect, if any, of alternative interpretations on Mineral Resource estimation. The use of geology in guiding and controlling Mineral Resource estimation.

The factors affecting continuity both of grade and geology.

Dimensions

The mineralised zone is approximately 2 000 m long and aligned north-west - south-east (NW-SE) by 700 m wide and split in two sectors, West and East. The mineralisation goes from surface outcrops, detected by soil sampling anomalies, to a maximum depth of 150 m below the surface in the deepest zone.

The extent and variability of the Mineral Resource expressed as length (along strike or otherwise), plan width, and depth below surface to the upper and lower limits of the Mineral Resource.

Estimation and Modelling Techniques

The overall drill holes spacings are around 100 m in the West and 20 m to 30 m in the East block. The composites database length is 2 m for estimation purposes.

The mineralisation zone was defined by an Indicator Kriging of Au grades above a threshold of 0.3 g/t Au.

Samples inside the mineralised zone were used to create an Au indicator variogram reflecting the median Au grade threshold

The resource estimate was carried out by the Multiple Indicator Kriging method.

The block model used a regular individual cell size of 5 m in X and Y, and 2 m in Z within an effective local estimation panel of 50 m in X and Y, and 12 m in Z.

The estimation was conducted in three passes with the search ellipse and number of samples increasing for each pass. The first pass used search of 30 m in X by 25 m in Y by 7.5 m in Z, increasing by 2x in pass two and 3x in pass three. An high-grade cut of 15 g/t Au was applied to the first pass while a high-grade cut of 4 g/t Au was used for the remaining two passes of the estimation process.

The model was validated visually and statistically using comparisons to composite data statistics, swath plots and evaluation of the grade estimation smoothing effect.

The nature and appropriateness of the estimation technique(s) applied and key assumptions, including treatment of extreme grade values, domaining, interpolation parameters, and maximum distance of extrapolation from data points. If a computer assisted estimation method was chosen include a description of computer software and parameters used.

The availability of check estimates, previous estimates and/or mine production records and whether the Mineral Resource estimate takes appropriate account of such data.

The assumptions made regarding recovery of by‑products.

Estimation of deleterious elements or other non‑grade variables of economic significance (e.g. sulfur for acid mine drainage characterisation).

In the case of block model interpolation, the block size in relation to the average sample spacing and the search employed.

Any assumptions behind modelling of selective mining units.

Any assumptions about correlation between variables.

Description of how the geological interpretation was used to control the resource estimates.

Discussion of basis for using or not using grade cutting or capping.

The process of validation, the checking process used, the comparison of model data to drill hole data, and use of reconciliation data if available.

Moisture

All tonnages are based on volume measurements converted using dry bulk densities.

Whether the tonnages are estimated on a dry basis or with natural moisture, and the method of determination of the moisture content.

Cut-off Parameters

The resource model is constrained by assumptions about economic cut-off grades. The mineralisation is confined by an indicator envelope based on a 0.3 g/t Au cut-off grade. The tabulated resources are reported using Au cut-off grade of 0.5 g/t which was applied on a block by block basis.

The basis of the adopted cut-off grade(s) or quality parameters applied.

Mining Factors or Assumptions

The Mineral Resource estimation approach has assumed that mining will take place using an open pit, selective mining method. The vertical block size is 2 m, expanded to 12 m for estimation, which forms the basis of the assumed vertical selectivity in the Mineral Resource estimate.

Assumptions made regarding possible mining methods, minimum mining dimensions and internal (or, if applicable, external) mining dilution.

It is always necessary as part of the process of determining reasonable prospects for eventual economic extraction to consider potential mining methods, but the assumptions made regarding mining methods and parameters when estimating Mineral Resources may not always be rigorous. Where this is the case, this should be reported with an explanation of the basis of the mining assumptions made.

Metallurgical Factors or Assumptions

No metallurgical assumptions have been made.

The basis for assumptions or predictions regarding metallurgical amenability. It is always necessary as part of the process of determining reasonable prospects for eventual economic extraction to consider potential metallurgical methods, but the assumptions regarding metallurgical treatment processes and parameters made when reporting Mineral Resources may not always be rigorous. Where this is the case, this should be reported with an explanation of the basis of the metallurgical assumptions made.

Environmental Factors or Assumptions

Golder is not aware of any environmental issues that would affect the eventual economic extraction of the deposit.

Assumptions made regarding possible waste and process residue disposal options. It is always necessary as part of the process of determining reasonable prospects for eventual economic extraction to consider the potential environmental impacts of the mining and processing operation. While at this stage the determination of potential environmental impacts, particularly for a greenfields project, may not always be well advanced, the status of early consideration of these potential environmental impacts should be reported. Where these aspects have not been considered this should be reported with an explanation of the environmental assumptions made.

Bulk Density

A dry Bulk density value of 2.7 t/m3 was assigned to the entire model on a block by block basis.

The density value was provided by Iberian Resources and has been assumed based on measurements of the similar rock units from other projects in that area.

Whether assumed or determined. If assumed, the basis for the assumptions. If determined, the method used, whether wet or dry, the frequency of the measurements, the nature, size and representativeness of the samples.

The bulk density for bulk material must have been measured by methods that adequately account for void spaces (vugs, porosity, etc.), moisture and differences between rock and alteration zones within the deposit.

Discuss assumptions for bulk density estimates used in the evaluation process of the different materials.

Classification

The Mineral Resource was classified according to the following criteria and assumptions:

Indicated Resources: Mineralisation is part of the East Block, and

§ Blocks are estimated in the first pass

§ The average distances of samples used during estimation is less than 30 m

§ The number of drill holes is greater or equal to 3.

Inferred Resources: remaining blocks in East Block an all blocks from West Block, estimated on first or second passes, generally representing zones with discontinuous or low sampling coverage, however with grade extrapolation limited to half of the drill holes distances.

The basis for the classification of the Mineral Resources into varying confidence categories.

Whether appropriate account has been taken of all relevant factors, i.e. relative confidence in tonnage/grade estimations, reliability of input data, confidence in continuity of geology and metal values, quality, quantity and distribution of the data.

Whether the result appropriately reflects the Competent Person(s)' view of the deposit.

Audits or Reviews

No audits or reviews have been undertaken on this Mineral Resource estimate.

The results of any audits or reviews of Mineral Resource estimates.

Discussion of Relative Accuracy/Confidence

The Sao Martinho Mineral Resource is an estimate of the global in-situ Au grades and no production data or tests are available to compare with this resource estimate.

The quality of the mineralisation model and the resource estimate is directly associated with the risks inherent to the deposit. Recommendations to improve the quality of future model updates are:

Infill drilling at 25 m x 25 m grid in the West Block.

New drilling over the NW extension of the East Block.

Density measurements on existing and future core samples.

Weathering surface modelling.

The relative accuracy is reflected in the Mineral Resource classification discussed above that is in line with industry acceptable standards

Where appropriate a statement of the relative accuracy and confidence level in the Mineral Resource estimate using an approach or procedure deemed appropriate by the Competent Person. For example, the application of statistical or geostatistical procedures to quantify the relative accuracy of the resource within stated confidence limits, or, if such an approach is not deemed appropriate, a qualitative discussion of the factors that could affect the relative accuracy and confidence of the estimate.

The statement should specify whether it relates to global or local estimates, and, if local, state the relevant tonnages, which should be relevant to technical and economic evaluation. Documentation should include assumptions made and the procedures used.

These statements of relative accuracy and confidence of the estimate should be compared with production data, where available.