Calidus Update

Keras Resources plc / Index: AIM / Epic: KRS / Sector: Mining

22 October 2019

Keras Resources plc ('Keras' or the 'Company')

Calidus Resources Update

Keras Resources plc, the AIM listed mineral resource company, notes the announcement published today by Calidus Resources Limited (ASX:CAI) ('Calidus'), in which it currently holds a c.33.71% interest, highlighting more wide, shallow intercepts that confirm the robustness of the planned open pit at its Warrawoona gold project in Western Australia's Pilbara Region.

Highlights

·; RC drilling continues to deliver strong results from within the planned Klondyke open pit at Warrawoona, to further underpin the Resource upgrade to Measured status

·; Significant intersections include:

o 35m @ 2.84 g/t Au from surface in hole 19KLRC218

o 23m @ 2.55 g/t Au from 15m in hole 19KLRC241

o 23m @ 2.06 g/t Au from 1m in hole 19KLRC243

o 20m @ 1.97 g/t Au from 25m in hole 19KLRC245

o 23m @ 1.32 g/t Au from 13m in hole 19KLRC250

o 25m @ 1.08 g/t Au from surface in hole 19KLRC221

o 23m @ 1.17 g/t Au from 34m in hole 19KLRC235

o 13m @ 2.05 g/t Au from 15m in hole 19KLRC244

o 15m @ 1.06 g/t Au from 2m in hole 19KLRC251

o 13m @ 1.13 g/t Au from 12m in hole 19KLRC236

o 12m @ 1.16 g/t Au from surface in hole 19KLRC230

o 9m @ 1.36 g/t Au from 21m to EOH in hole 19KLRC230

o 8m @ 1.52 g/ t Au from surface in hole 19KLRC236

·; Resource upgrade is part of the Warrawoona Definitive Feasibility Study ('DFS')

·; Drilling now also targeting greenfield areas 3km to the west of Klondyke to test the large system

Russel Lamming, CEO of Keras Resources, commented, "These latest results, which will be used to establish a Measured Resource, demonstrate that the mineralisation in the planned open pit at Klondyke is wide and continuous and outcrops at surface. This highlights the technical and economic strength of the planned open pit and is consistent with Calidus' strategy to de-risk the 1.25Moz Resource at Warrawoona where a DFS is underway. As well as the infill exploration programme, Calidus has an RC rig currently drilling greenfield targets 3km west of Klondyke; both programmes are aimed at extending mine life to enhance the previously-quoted PFS metrics.

"This announcement follows the Resolutions approved by the Company's Shareholders on 14 October to demerge our 33.71% interest in Calidus, subject to approval by the High Court. This will release approximately £10m of value to shareholders and provide visibility on the potential value of both companies following the confirmation of our right to mine at the Nayega manganese mine in Togo."

The information in this RNS has been extracted from the ASX announcement made by Calidus Resources Limited on 22 October 2019. To view a full version of the Calidus announcement, which includes figures and maps, please click here: https://www.calidus.com.au/investors/asx-announcements/. For more information on Calidus and Warrawoona, please visit www.calidus.com.au.

For the purposes of MAR and Article 2 of Commission Implementing Regulation (EU) 2016/1055, this announcement is being made on behalf of Russell Lamming, Chief Executive Officer. This announcement contains inside information for the purposes of Article 7 of Regulation (EU) 596/2014.

**ENDS**

For further information please visit www.kerasplc.com, follow us on Twitter @kerasplc or contact the following:

Notes

Keras Resources plc is focused on building a strategic portfolio of resource assets, providing investors with exposure to a portfolio of development assets including manganese, cobalt and nickel in Togo, West Africa. It is also in the process of transferring its holding of shares in Calidus Resources Limited to its shareholders by way of a capital reduction. The Company benefits from a skilled management team, which has extensive experience in the resource sector and proven success in advancing assets up the value curve.