PRESS RELEASE

22 November 2021

KAVANGO RESOURCES PLC

("Kavango" or "the Company")

Drilling commencement & upgraded target motivation

Kavango Resources plc (LSE:KAV), the exploration company targeting the discovery of world-class mineral deposits in Botswana, is pleased to announce commencement of drilling of the Company's B1 Conductor Target (the "B1 Conductor", announced 02 July) with Hole KSZDD002.

The B1 Conductor is a cross-formational, strongly conductive geophysical anomaly that has a conductance reading of 8,200 Siemens. Part of Kavango's exploration model in the Kalahari Suture Zone ("KSZ") is based on identifying sub-surface conductors with conductance readings greater than 1,000 Siemens. According to the Company's model, the B1 Conductor is 475m by 550m in size, exhibits a decay constant in excess of 350ms and dips at a 60-degree angle.

Conclusion - Kavango believes the position, size, shape, orientation and conductance of the B1 Conductor suggest this target may have the potential to be a large-scale, Karoo-age nickel/copper/platinum group element (Ni/Cu/PGE) mineralisation.

Objective - Hole KSZDD002 has been designed to intersect the B1 Conductor, to give us the best possible information from a single hole regarding the presence or otherwise of metal sulphides (or whatever else could be the source of such a highly conductive zone).

Drill Motivation - The B1 Conductor was identified through two surface Time Domain Electromagnetic ("TDEM") surveys, performed by the Company's strategic partner Spectral Geophysics ("Spectral") in Q2 this year. 

The Company believes the B1 Conductor was emplaced within a Karoo gabbro, which sits above the "Great Red Spot" magnetic anomaly, at a depth of 550m from surface. Lithological logging of the core from Hole KSZDD001 (announced 16 November) shows a thick 70m Karoo gabbroic sill is at a similar depth to the B1 Conductor. KSZDD001 was drilled 1km away from the collar location of KSZDD002.

If Kavango is correct about the nature of the possible relationship between the B1 Conductor and the local Karoo gabbro intrusive, this would suggest the B1 Conductor may have been emplaced during the Karoo (c.180 million years ago), by a magmatic event that intruded the existing flat lying Karoo sediments.

Preliminary structural interpretations, combining the geology intersected in KSZDD001 with updated inversion models of the "Great Red Spot" magnetic anomaly, indicate that Karoo aged intrusives may have intruded upwards along structures that controlled the emplacement of the underlying Proterozoic gabbros (c.1.1 billion years ago).  One of these structures could be the host lithology of the B1 Conductor.

Kavango's updated inversion model of the Company's aeromagnetic data indicates that the 60-degree dip of the B1 Conductor is aligned directly towards one of flanks of the magnetic high of the underlying Great Red Spot.

The Company is currently exploring the possibility that the Great Red Spot area has potential to host two separate, distinct mineralised systems; one younger Karoo-age system (prospective for Ni/Cu/PGEs), and another older Proterozoic-age system (mineralisation model in the process of being confirmed). Kavango anticipates that drill core from Hole KSZDD002 should help it test its theory of the potential for a stacked exploration play in this area.

Kavango expects to drill Hole KSZDD002 to a depth of 650m.

Risk Assessment - Kavango has already paid the cash element of the drilling costs for Hole KSZDD002, with the balance to be paid in stock. The Company's working capital position is £2.1million. The Company is confident the outcome of Hole KSZDD002 will have no bearing on its planned other work programmes in 2022 in the KSZ, the Kalahari Copper Belt or Ditau.

To date Kavango has only performed nine surface TDEM surveys across the northern "Hukuntsi" section of the KSZ. From results gathered so far, the Company is convinced this geophysical technique is the right technology to identify future conductive Ni/Cu/PGE drill targets, should they exist within drilling range.

Kavango's geophysical team is in the process of drawing up a phased campaign of follow up TDEM and downhole electromagnetic ("DHEM") surveys over the Great Red Spot and Target Area A. If successful, the Company will then roll this campaign out to other target areas in the KSZ. The objective will be to identify conductor targets at representative depths of potential Karoo-age gabbros (searching primarily for possible Ni/Cu/PGE deposits) and conductor targets set within Proterozoic-age gabbros (searching both for possible Ni/Cu/PGE deposits & an alternative as yet unspecified mineralised deposit model that fits the increasing range of geological and geophysical data Kavango has obtained).

Kavango's geophysical team is in the process of drawing up a phased campaign of follow up TDEM and downhole electromagnetic ("DHEM") surveys over the Great Red Spot and Target Area A. If successful, the Company will then roll this campaign out to other target areas in the KSZ. The objective will be to search for conductive targets that primarily fit a Ni/Cu/PGE deposit model, at the depths of both Karoo-age gabbros and the deeper Proterozoic-age gabbros. 

Further, Kavango has obtained geological and geophysical evidence for an alternative, and as yet unspecified, mineralised deposit model in the Proterozoic.

Hole KSZDD002 is the fourth borehole of the current KSZ drilling campaign. Despite its status as an extremely high priority target, Kavango left drilling of the B1 Conductor until last, to enable the Company to learn as much about the local ground conditions and stratigraphy as possible. Kavango is aware of the challenges posed by drilling in this area and has, in collaboration with Equity Drilling & Mindea Exploration and Drilling Services (Pty), made a number of changes to the engineering design of Hole KSZDD002.

As with other boreholes in this year's KSZ drill campaign, the priority of Hole KSZDD002 is to reach target depth and recover as much drill core as possible for future analysis. However, given what is known about the structural composition of commercial Ni/Cu/PGE ore bodies (i.e. they can be relatively discrete and exist in clusters), Kavango is mindful of the importance of being able to conduct DHEM on this hole. The Company has taken steps to maximise its chances of being able to complete DHEM on Hole KSZDD002, but is aware the precise geology of the rock formations the drill will encounter is unknown at this stage. This geology has the potential to limit the ability to carry out full a DHEM survey. 

Latest Update - Drilling commenced on Friday 19 November, in 12-hour double shifts. By the end of the night shift on Monday 22 November Hole KSZDD002 was 60.79m

Online Presentation and Shareholder Q&A

Kavango Chief Executive Ben Turney and Consulting Geophysicist Jeremy Brett will present the Company's latest interpretations of the B1 Conductor at the Proactive One2One Forum on 25 November at 1800GMT. To participate in this event please visit the following link:

https://event.webinarjam.com/register/1344/lxxzghmzw

Ben Turney, Chief Executive Officer of Kavango Resources, commented:

"This is the most important exploration hole ever drilled in the Kalahari Suture Zone.

It is up to the drillers and our team on the ground to deliver another successful hole. They've all done fantastic work for us already this year and I hope their efforts are richly rewarded.

On a personal note, I am particularly encouraged by the B1 Conductor crosscutting the flat-lying Karoo formation sediments. The fact our modelling suggests it dips towards the Great Red Spot's probable intrusive centre could prove to be significant. If our theory is correct, vast amounts of Karoo-age magmas could have exploited the same pathways to surface as the Proterozoic magmas c.920million years before. Such conditions could well have led to the creation of Ni/Cu/PGE sulphide ore bodies.

The only way to test this theory is to drill the B1 Conductor. With its 8,200 Siemens modelled conductance reading and probable position within Karoo-age gabbro, it could be  Ni/Cu/PGE mineralisation.

However, as optimistic as we feel, it is premature to get too excited. Although we believe the B1 Conductor holds considerable potential, which we may be able to identify through Hole KSZDD002, we have not gambled Kavango's future on its outcome.

We've already paid the cash element for drilling upfront and have £2.1million in working capital. This will see us comfortably through our next phases of exploration across our project portfolio, including drilling targets in Ditau and the Kalahari Copper Belt. With over 15,000km² of highly prospective ground to cover and the series of strong hires we've made over recent months, Kavango is well positioned to make multiple metal discoveries.

In terms of this drill, all I can do now is wish everyone the best of luck. I hope it works out for all of us."

Further information in respect of the Company and its business interests is provided on the Company's website at www.kavangoresources.com and on Twitter at #KAV.

For further information please contact:

Kavango Resources plc                                                                                     

Ben Turney

[email protected] 

 First Equity (Joint Broker)

+44 207 374 2212

Jason Robertson             

SI Capital Limited (Joint Broker)                                                                          

+44 1483 413500

Nick Emerson

Kavango Competent Person Statement

The technical information contained in this announcement and the map of the A-C Corridor have been read and approved by Mr Mike Moles (BSc (Geology) & BSocSci (African Studies), who is a Member of the Australian Institute of Mining & Metallurgy (MAusIMM) and has sufficient experience that is relevant to the style of mineralisation and type of deposits under consideration to qualify as a Competent Person as defined in the 2012 Edition of the 'Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves'. Mr Moles is a beneficial shareholder of Kavango Resources plc.

Note to Editors:

THE KALAHARI SUTURE ZONE

Kavango's 100% subsidiary in Botswana, Kavango Minerals (Pty) Ltd, is the holder of 16 prospecting licences covering 8,831.1km² of ground, including 14 licences over a significant portion of the 450km long KSZ magnetic anomaly in the southwest of the country along which Kavango is exploring for Copper-Nickel-PGM rich sulphide ore bodies. This large area, which is entirely covered by Cretaceous and post-Cretaceous Kalahari Sediments, has not previously been explored using modern techniques.

The area covered by Kavango's KSZ licences displays a geological setting with distinct similarities to that hosting World Class magmatic sulphide deposits such as those at Norilsk (Siberia) and Voisey's Bay (Canada).

The Norilsk mining centre is about 2,800km northeast of Moscow and accounts for 90% of Russia's nickel reserves, 55% of its copper and virtually all of its PGMs. Kavango's licenses in the KSZ display a geological setting with distinct geological similarities to the magmatic sulphide deposits at Norilsk. Magma plumbing systems are a key feature of these deposits.

KSZ DEFINITIONS

Chalcopyrite: A copper rich sulphide mineral (CuFeS₂), widely occurring in magmatic sulphide ore bodies.

EM Super Conductors: are bodies of highly conductive minerals such as graphite, magnetite and metal sulphides, which conduct electricity very rapidly provided the mineral grains are in contact with each other.

Gabbro/gabbroic: A coarse grained, medium to dark coloured rock, formed from the intrusion of mantle derived molten magma into the earth's crust. Gabbroic rocks (or "gabbros") are formed as the molten magma crystallizes and cools.

Gabbroic sills: Relatively thin, planar, horizontal bodies of solidified gabbroic magma that intruded into layers of sedimentary rock whilst still molten.

Karoo: The Karoo System covers 1.5 million km2 of the semi-desert region of Southern Africa. Rocks in this system formed 180-310 million years ago.

Massive sulphide: When a deposit consists almost entirely of sulphides it is termed "massive". When it consists of grains or crystals of sulphide in a matrix of silicate minerals, it is termed "disseminated".

Metal/Magmatic sulphide: Deposits of sulphide mineral concentrations in mafic and ultramafic rocks, derived from immiscible sulphide liquids. To view a video of how metal/magmatic sulphides form please visit -

https://twitter.com/KavangoRes/status/1316004057895645186?s=20  

Norilsk Style: copper/nickel/PGE mineralisation associated with the intrusion into the upper parts of the Earth's crust of mafic magma, which form magma chambers that sit below volcanic vents or fissures that extrude basaltic lava onto the surface (Hawaii is a possible modern equivalent). The Norilsk intrusions tend to have distinct morphologies, combining thin gabbro sills (wings) with deep keels (thought to be associated with feeder dykes) at the base.

Norilsk Model: a genetic geological model similar to that pertaining to the Norilsk/Talnakh deposits in Siberia. Traditionally, it was thought that, during emplacement, the magma incorporated sulphur rich country rock (e.g. coal measures) or evaporites into the melt, which allowed the molten magma to become sulphur saturated. The free sulphur would then combine, preferentially, with Cu/Ni/PGE metal ions to form metal sulphides, which, being heavy, tended to accumulate in traps or into the keel of the magma chamber. However, modern research suggests that the process might be more complex and may also involve changes of the chemical and physical properties of the magma during the introduction of new pulses of molten material from below. Such sudden changes may have caused rapid segregation of metal sulphides within and above the feeder dykes within the keel of the intrusion.

Pegmatitic: Pegmatites are very coarse grained igneous rocks having grain sizes in excess of 3cm, Pegmatites are thought to form as a result of very slow crystallisation and may contain exotic minerals from a volatile-rich melt.

Sulphide mineralisation: If there is sufficient sulphur in the molten magma, it will tend to combine with metals (Cu, Zn, Ni, Co, Pb, PGEs etc.) to form metal sulphide complexes, which may coalesce to form massive sulphide deposits. If the melt is sulphide poor, the metals will be taken up into the silicate minerals that form as the magma cools and will not usually form economic deposits.