Xtract Regulatory News (XTR)

For immediate release

20 August 2019

Xtract Resources Plc

("Xtract" or the "Company")

Tailings sampling at Kalengwa Copper Project Zambia ("Kalengwa")

The Board of Xtract Resources Plc ("Xtract" or the "Company") is pleased to announce assay results from preliminary sampling of mine tailings at the Kalengwa Copper Project Zambia ("Kalengwa").

Highlights

·; Preliminary sampling by Xtract within the Kalengwa mine tailings dumps yields an average grade of 1.03% Cu, 4.44ppm Ag

·; Xtract's sampling supports previously reported tailings grades

·; Kalengwa Mine operated in the 1970's and was one of the highest grade copper deposits in Zambia

·; Further systematic sampling planned to more accurately define the tailings resource, while metallurgical recovery test work is under way

Colin Bird, Executive Chairman said: "This is a very pleasing result confirming copper grades in tailings over a large sample population, similar to results reported in archive information. We are currently undertaking metallurgical test work aimed at assessing the optimal method of copper recovery through mineral processing, upgrading or separation at site. Work is continuing at Kalengwa to enhance local infrastructure to facilitate the planned operation.

We intend in the near term to undertake drilling to assess primary ore potential to the north and south of the former open pit."

Sampling programme

Historic mining and processing operations at the high-grade Kalengwa copper mine generated tailings which were contained initially in a tailings storage facility, reportedly 6-8m deep, while later tailings were deposited directly into an adjacent swamp. According to a 2013 report by a previous site operator, Lunga Resources Limited, periods of poor concentrator recovery at the mine resulted in relatively high-grade copper material being sent to tailings.

In July 2019 the Company undertook a preliminary confirmatory sampling programme along three hand-dug trenches across the tailings dumps. Two trenches were opened within the main tailings facility, while the third was within the swamp area, for a total of 420m. Trench depths ranged from 1.0m to 3.5m. 93 samples were collected, approximately every 5m along the trenches, by sampling vertical channels from top to bottom at each location. The sampling was planned to represent average sample values over a period of time during the historic mining operation. Sample weight was generally 2-3kg.

All samples were submitted for analysis to the SGS Kalulushi geochemical laboratory in Zambia. The laboratory is accredited to ISO/IEC 17025 standard for copper analysis.

Analytical results received for copper and silver yielded an average grade of 1.03% Cu, 4.44ppm Ag for all samples, with copper values ranging from 0.59% to 2.48%. Average grades were consistent through all three trenches although higher grade zones were delineated within each trench. Encouragingly, results overall support the copper grades reported in the 2013 resource estimate.

Further systematic sampling will be required to more accurately define the tailings resource, while test work has already commenced to define the optimum copper/silver recovery route for a new processing operation.

There is a historic tailings resource, which was reported in 2013 but is not compliant with a recognised standard and which has not been subsequently updated or verified ("Non-JORC compliant Resource"), of  approximately 2Mt averaging 1.015% Cu, giving total copper content of 20,300 tonnes, with some by-product silver (Source: Lunga Resources Limited, Kalengwa-Jikambo Summary Report, 2013).

Kalengwa Project

Kalengwa is located in the North-western province of Zambia 800 km north-west of Lusaka and 400 km south-west of Kitwe. Xtract's partner, KPZ, has been awarded a large-scale exploration permit 24401-HQ-LEL, which was issued on 2 April 2019 and is valid for an initial period of 4 years.

The very high-grade Kalengwa Copper Mine was owned and managed by Roan Consolidated Mines Ltd. from 1970 to 1982. Total production of 1.9 Mt of 9.44% Cu and 50 g/t Ag was achieved from open pit mining, resulting in circa 15,000 tonnes of copper production per annum over 12 years.

On 15 July 2019 the Company announced that it had concluded a Memorandum of Agreement ("Agreement") with KPZ International Ltd. ("KPZ") for Xtract to act as contractor for the Kalengwa Processing project on the large-scale exploration license number 24401-HQ-LEL ("Licence") located in the Central part of The Republic of Zambia ("Kalengwa Project").

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.

Enquiries:

Qualified Person:

Geological information in this announcement relating to the licence area 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 a qualified person under the AIM Rules. Mr Slowey has reviewed and approved the geological content of this announcement.

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