Xtract Regulatory News (XTR)

For immediate release

25 July 2019

Xtract Resources Plc

("Xtract" or the "Company")

Equity Placing

Total Voting Rights

Placing

The Board of Xtract Resources Plc ("Xtract" or the "Company") announces that the Company's Broker, Novum Securities, has today conditionally raised £1,000,000 (before expenses) following the placement of 83,333,333 new Ordinary Shares of 0.02p each ("Ordinary Shares") at 1.20p ("Placing Price") per new Ordinary Share (the "Placing"). The new Ordinary Shares represent 23.50% of the current issued ordinary share capital of the Company. The Placing Price is at a discount of approximately 18% compared to the July volume weighted average price of 1.46p for the period ended 24 July 2019. In completing the Placing the Board has utilised the waiver of pre-emption rights provided by shareholders at the last Annual General Meeting.

The net proceeds from the Placing will be utilised by the Company to fund the further development of its exploration and development projects in Mozambique and Zambia and provide additional working capital.

Colin Bird, Executive Chairman said: "This Placing will allow the Company to advance its portfolio of exploration and potential development projects in Mozambique and Zambia. The funds will be utilised to ensure operations advance at a pace to further enhance shareholder value.

The Board are particularly optimistic on the fundamentals for copper price increase and recognise the necessary and indeed accelerated expenditure will place the company in a strong short term position with its Zambian copper assets. Additionally, the fundamentals for gold indicate strength and as such returns from our Mozambique gold assets will also be assisted by this placing.

We will keep shareholders advised on company and portfolio progress as our endeavours hopefully unlock the Company's potential".

Admission to AIM

Application will be made for admission of the Placing Shares to trading on AIM ("Admission"), in aggregate amounting to 83,333,333 new Ordinary Shares ("New Shares") to be admitted to trading on or around 25 August 2019. The New Shares will rank pari passu in all respects with the Company's existing issued ordinary shares.

Total Voting Rights

On Admission of the New Shares, the Company will have 438,508,052 Ordinary Shares in issue with voting rights. Xtract does not currently hold any shares in treasury. Accordingly, this figure of 438,508,052 Ordinary Shares may be used by shareholders in the Company as the denominator for the calculations by which they will determine if they are required to notify their interest in, or a change in their interest in, the share capital of the Company under the FCA's Disclosure Guidance and Transparency Rules.

Broker Warrants

In conjunction with the Placing, the Company will issue 8,333,333 Broker warrants to Novum Securities Limited, exercisable in whole or in part at 1.20p to be exercised within 3 years of being issued.

Further AIM and other Disclosures

Further details are 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.

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