Xtract Regulatory News (XTR)

For immediate release

12 August 2020

Xtract Resources Plc

("Xtract" or the "Company")

Manica Alluvial Gold & Corporate Update

The Board of Xtract Resources Plc ("Xtract" or the "Company") announces the preliminary unaudited results for alluvial mining contractors for the Manica Concession for the three-month period ended 30 June 2020 (the "Period").

Highlights

· Total alluvial mining contractor gold production of 17.59 Kg for the quarter (equivalent to approximately 566 ounces)

· Total of 5.65 Kg (equivalent to approximately 158 ounces) attributable to Explorator

· Combined attributable revenue to Explorator from gold sales and other income for the Period amounted to US$261,679

Colin Bird, Executive Chairman said: "The operating results over the year have been fairly consistent, reflecting difficult operating conditions. During the current quarter we have seen a reduction in overall costs and once again operating income over expenditure. We anticipate a modest increase in production during the third quarter, which should also result in an improved financial performance with an increasing gold price. Negotiations to introduce further mining and processing for both alluvial and hard rock production are progressing. and we look forward to updating our shareholders in due course.''

Production summary

Preliminary unaudited results for alluvial mining contractors for the Manica Concession for the three-month periods ended 30 June 2020, 31 March 2020, 31 December 2019 and 30 September 2019, and are set out in the table below. In addition to the information included in the table, the table below provides a further breakdown of costs between operational costs, production tax and land resettlement costs. The Company now expects that at current rates of activity, the alluvial mining contractors are likely to continue their operations into next year. The Company's current focus is to progress the Manica hard rock operations.

 Note 1: Under the Collaboration Agreement between Explorator and Nexus Capital Limited (previously Mineral Technologies International Limited, "Nexus") as previously announced on 28 October 2018 Xtract's net share of Explorator's gold revenue and costs was 50%. On 12 December 2019, the Company announced that the Collaboration Agreement had been terminated by Nexus (as explained further below) with an effective date of 2 December 2019, following which Explorator's net share of gold revenue and costs is 100%.

Note 2: Direct operational production costs include and not limited to Explorator salaries, rent, vehicles expenses and utilities.

Note 3: Total costs comprises direct operational production costs plus total Production Tax (6% of the value of total production which varies according to the level of production) and Land Resettlement Costs as detailed below:

Note 4: Calculation based on the number of ounces produced during each month of the quarter multiplied by

 the closing month end spot rate.

Note 5: Presence of gold in alluvial deposits is unpredictable and therefore operational results will vary month-to-month.

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 Joel Silberstein, Director.

Enquiries:

ENDS