Xtract Regulatory News (XTR)

For immediate release

20th September 2021

Xtract Resources Plc

("Xtract" or the "Company")

Eureka Copper Project - Phase 2 drilling final assay results

The Board of Xtract Resources Plc ("Xtract" or the "Company") is pleased to provide an update on the final assay results from the Phase 2 drilling programme 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

· Final assays from the Phase 2 drilling programme at Eureka confirm a shallow, near-vertical, structurally-controlled copper deposit over approximately 300m of strike, still open to the west-northwest and containing pockets of exceptionally high-grade copper

· New assay results include:

o 22m @ 2.53% Cu from 7m depth, including 14m @ 3.71% Cu from 14m depth in vertical hole EX-023 sited 30m northwest of the historic shallow open pit

o 2m @ 5.04% Cu from 40m depth within a wider zone of 21m @ 0.84% Cu from 38m depth in angled hole EX-014 sited 70m beyond the historic pit boundary

· A second, 'stratabound-style' of chalcopyrite mineralisation dipping at 45 degrees to the southwest has been confirmed by angled hole EX-025 which assayed 3.05% Cu over 3m from 149m depth (or 4.43% Cu over 2m). This is an extension of a mineral style first seen about 40m up-dip in hole EX-02 (4m @ 2.35% Cu, 0.53g/t Au).

· The stratabound copper zone remains unconstrained by drilling down-dip and along strike

· Further drilling is planned to test both target types at Eureka

Colin Bird, Executive Chairman said: "The latest results reinforce our confidence in extending the small-scale open pit towards the West, and in conjunction, the results are demonstrating the potential for a deeper mineralised system. Hole EX-025 showed a different style of mineralisation with a much shallower dip and warrants further investigation. There have been many suggestions that the Eureka project could be an IOCG occurrence and we will investigate this with deeper holes.

In essence, we are pursuing two very viable targets in the extended open pit and have the potential for deep IOCG ore. We have made much more progress in this particular area than previous explorers and as such have unlocked an exciting exploration & development opportunity."

Phase 2 Diamond Drilling Programme

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

As reported previously, 21 shallow holes were drilled in Phase 2, designated EX-08 to EX-028 and totalling 1,584.6m, mostly angled to the northeast to cross the near-vertical mineralised zone. Assaying of half core was carried out at the ISO-accredited SGS analytical laboratory in Kalulushi, Zambia.

Selected assay intervals for the 5 new holes sampled are tabulated below, including for completeness the significant assays previously announced for the other sampled holes. True width in angled holes is approximately two thirds of the downhole width, except for EX-025 which is true width.

The angled holes were drilled to track the deposit along strike and to depth, as well as providing critical assay interval data. Vertical holes were drilled to provide information on depth to the top of the mineralisation (stripping requirement) as well as grade information for mine planning purposes.

Among the highlights of the new results are EX-023 (vertical hole) with 22m @ 2.53% Cu from 7m depth, including 14m @ 3.71% Cu from 14m depth. This hole is located about 30m northwest of the limit of the shallow historic open pit, confirming that high copper grades continue in this direction beyond the pit boundary. Also, some 70m northwest of the old pit, angled hole EX-014 intersected a 2m zone of 5.04% Cu from 40m depth within a wider zone of 21m @ 0.84% Cu from 38m depth.

An interesting feature of the drilling is the intersection of a deeper 'stratabound-style' zone of chalcopyrite mineralisation in angled hole EX-025 which assayed 3.05% Cu over 3m from 149m depth (or 4.43% Cu over 2m). This is an extension of a mineral style first seen about 40m up-dip in hole EX-02 (4m @ 2.35% Cu, 0.53g/t Au). This zone dips at about 45 degrees to the southwest and remains open further down-dip and potentially along strike.

Overall, the results confirm continuity of the shallow mineralised zone over about 300m of strike, with pockets of exceptionally high copper grades in a partially oxidised supergene zone. Drilling to the northwest suggests that the deposit strike appears to swing towards west-northwest. It is planned to undertake further drilling to track this extension.

The stratabound-style mineralisation represents a second target of considerable interest to Xtract which will be further drill-tested.

Eureka Project background

Mineralisation at Eureka comprises chalcopyrite, chalcocite and malachite as coarse replacements and veins within sedimentary rocks along a north-west oriented structural trend. 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. However, it is evident that the open pit was not sufficiently deep to develop the core of the deposit. Phase 1 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, including 19.0m @ 2.08% Cu (Hole EX-01) were cored in this drill programme as announced on 31 March 2020. The Phase 2 drilling programme was planned to provide infill grade information and extend the strike of the deposit.

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

The information contained within this announcement is deemed by the Company to constitute inside information as stipulated under the Market Abuse Regulations (EU) No. 596/2014 as it forms part of UK Domestic Law by virtue of the European Union (Withdrawal) Act 2018 ("UK MAR"). 

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