Xtract Regulatory News (XTR)

For immediate release

3 February 2021

Xtract Resources Plc

("Xtract" or the "Company")

Eureka Copper Project - Commencement of Phase 2 drilling programme and bulk sampling

The Board of Xtract Resources Plc ("Xtract" or the "Company") is pleased to provide information on the planned Phase 2 drilling programme and preparations for collection of a bulk sample at the Eureka copper-gold deposit on small scale mining licence number 22134-HQ-SML ("Eureka Licence") located in the Central part of The Republic of Zambia ("Eureka Project").

Highlights

· A follow up Phase 2 diamond drilling programme of approximately 1,600m is planned to test the Eureka copper-gold deposit strike extent and to further define the internal grade and continuity of the mineralisation

· The drilling will provide the required information for the open pit planning programme

· Earlier exploration pit sampling indicates that the deposit may extend along strike to the north-west for at least a further 100m to over 300m length in total

· The zone potentially remains open to additional strike expansion beyond the exploration pitting area and is open down-plunge

· The aim of the drilling programme is to define a copper resource sufficient to support an open pit mining operation for a minimum of 3 years

· A drilling contract has been signed and drilling has now commenced

· Plans are also being prepared to excavate a box-cut at the base of the current open pit to obtain a bulk sample and provide break points for benches

· The roads in and around the areas are being upgraded to receive heavy vehicles and allow the transport of ore from site

· A number of Zambia based open pit contractors have submitted tenders for the pit operation and it is expected that a contract will be awarded shortly

Colin Bird, Executive Chairman said: "There is sufficient ore in the area of the box-cut to provide a large bulk sample and to initiate mining during late February building up to full production by May 2021. The drilling programme will allow us to accurately design the open pit as the currently available ore depletes. We anticipate initially run of mine ore will be transported while we build a small plant to upgrade the ore to between 6-10% Cu, depending on head grade which is expected to be not less than 2% Cu. We will keep the market advised on progress and are optimistic for our plans to be executed timeously now that the excessive rains are beginning to diminish."

Phase 2 Diamond Drilling Plan

The Phase 2 drilling programme is designed to both test the deposit strike extension and to provide additional information on deposit width and grade to support open pit mine planning.

The Company previously reported (8 September 2020) exploration pit sample analyses by hand-held XRF analyser up to 2.65% Cu along strike from the shallow Eureka copper-gold deposit. This supported earlier modelling of a potential strike extension to the northwest which, if confirmed by drilling, would extend the known strike of the Eureka deposit by a further 100m to more than 300m overall - with scope for additional extensions again beyond the line of exploration pits.

In addition, 3D modelling of the deposit identified areas for internal confirmation drilling, particularly on the shallow oxide copper-gold zone, to provide greater volume and grade certainty for input into preliminary open pit planning.

A drilling contract has been signed and a rig has been mobilised to drill approximately 1,600m in up to 19 shallow angled holes.

Open Pit Bulk Sample

The Company is preparing plans to make a box-cut excavation at the base of the current Eureka open pit in order to obtain a bulk sample of copper-gold oxide material to test its suitability for processing at a local plant. Previous mining did not excavate sufficiently through the near-surface leached zone, hence the need for a box-cut to access the mineralisation.

Eureka Project background

As previously announced, a shallow open pit mine was developed at Eureka by a local operator in 2008 within a strong, 3km long copper-gold soil anomaly, when about 1,000 tonnes of ore at 3% Cu was reportedly recovered. Drilling by Xtract was carried out in 2020 to confirm and extend the deposit as originally defined by limited historic drilling. Intercepts up to 32m @ 1.58% Cu, 0.07g/t Au, including 19.0m @ 2.08% Cu, 0.08g/t Au (Hole EX-01) were cored in this drill programme. The deposit remains open to the northwest and down-plunge.

Further information is available from the Company's website which details the company's project portfolio as well as a copy of this announcement: www.xtractresources.com

This announcement contains inside information for the purposes of Article 7 of EU Regulation No. 596/2014 on market abuse. The person who arranged for the release of this announcement on behalf of the Company was Colin Bird, Director.

Enquiries:

Qualified Person:

Information in this announcement relating to the exploration works has been reviewed by Edward (Ed) Slowey, BSc, PGeo, a consultant to Xtract. Mr Slowey is a graduate geologist with more than 40 years' relevant experience in mineral exploration and mining, a founder member of the Institute of Geologists of Ireland and is a Qualified Person under the AIM rules. Mr Slowey has reviewed and approved the geological content of this announcement.

Qualified Person:

In accordance with AIM Note for Mining and Oil & Gas Companies, June 2009 ("Guidance Note"), Colin Bird, CC.ENG, FIMMM, South African and UK Certified Mine Manager and Director of Xtract Resources plc, with more than 40 years' experience mainly in hard rock mining, is the qualified person as defined in the Guidance Note of the London Stock Exchange, who has reviewed the technical information contained in this press release.

TECHNICAL GLOSSARY

The following is a summary of technical terms:

ENDS