PRESS RELEASE

28 February 2022

KAVANGO RESOURCES PLC

("Kavango" or "the Company")

KSZ completion of drillhole KSZDD002

Kavango Resources plc (LSE:KAV), the exploration company targeting the discovery of world-class mineral deposits in Botswana, is pleased to announce completion of Hole KSZDD002 (the "Borehole") to target depth of 650m and a successful Downhole Time Domain Electromagnetic ("DHEM") survey to 640m.

Based on visual inspection of the drill core, direct Magnetic Susceptibility and Conductivity measurements taken along the core, and the DHEM survey data, there are four critical developments:

I.     Independent third-party analysis indicates the Borehole has passed through a gap between two distinct conductors, as is evident by the obvious crossover in the DHEM data.

II.    A Karoo intrusive was intersected at the target depth.  This rock type is correct for Kavango's Karoo intrusive hosted nickel/copper ("Ni/Cu") exploration model.

III.  There is at least one very strong conductor detected 150m off the Borehole with a Tau (time constant) in the range of 450msec to 560msec and a high conductance of 16,000 Siemens. This is a significant increase in conductivity from previous models, and upgrades the target ranking for possible Ni/Cu sulphides.

IV.  A second conductor, with modelled conductance of 2,500 Siemens, has also been detected. This conductor is more vertically inclined and appears to conform to an idealised model for net textured sulphides in a possible Karoo feeder dike.

The Company is now initiating a number of actions for future exploration in the northern section of the Kalahari Suture Zone ("KSZ"), including (but not limited to):

·    Evaluation and remodelling of all available surface TDEM and DHEM data

·    Follow up Surface TDEM and further DHEM over the original area of the B1 conductor to model the size, shape and orientation of the two conductors

·   Drilling up to two further holes targeting the two conductors identified by the DHEM survey, based on refined geophysical models

·    A more extensive TDEM campaign over Target Area A (the "30km Strike") & the rest of Target Area B (the "Great Red Spot").

This work is expected to last into Q2 and Kavango will provide further updates in due course.

In the meantime, the Company will provide an update on drill plans for the Ditau project in the coming days.  

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

"When we originally modelled the B1 Conductor from surface, we worked on the assumption there was a single conductive body.

Now, thanks to the successful completion of KSZDD002 and the downhole electromagnetic survey, the modelling is telling us that there are two strongly conductive geophysical targets in close proximity to the borehole. These two targets appear to be associated with Karoo-age intrusives.

The DHEM results have been independently analysed and provide us with an important vector for immediate continued exploration of the Great Red Spot.

The increased conductance reading of the main off-hole conductor to 16,000 Siemens is particularly encouraging because we have pushed further into the range for massive sulphides. This upgrades the priority of this target as a possible nickel copper sulphide body.

It is imperative we now intercept this target with the drill to identify what is there. The discovery of a second distinct conductor, so close to the main target, opens up some intriguing possibilities. While the 2,500 Siemens conductance reading is lower, it does still fit a possible net textured metal sulphide model. The near vertical orientation of this anomaly suggests it is cross-formational and is considered to be related to some form of feeder zone or fault.

Kavango will now actively explore the possibility that there might be other conductor targets in the vicinity of KSZDD002. To date, the Company has only performed two surface TDEM surveys over this section of the Great Red Spot, so there is obvious potential to widen our coverage. TDEM technology is an established tool used globally in nickel/copper sulphide exploration and discovery.

Meanwhile, the complex geometry of the two conductor targets identified in the DHEM survey means that further data gathering and modelling is required before new boreholes can be designed.

So as not to delay our operational momentum, we expect to mobilise the rig to the Ditau project in the coming days, with a view to returning to the KSZ once drilling at Ditau is complete. This will give our geophysicists time to complete new TDEM and DHEM surveys over the Great Red Spot, with the objective of confirming drill collar locations.

With a current working capital position of £1.7million, we move forward with confidence."

Kavango's evolving understanding of the B1 Conductor/s

The original B1 Conductor was modelled as a single geophysical anomaly that the Company believed was a prospective target for possible massive sulphide nickel or copper mineralisation. Kavango first identified this target through the completion of two surface Time Domain Electromagnetic ("Surface TDEM") surveys in early summer 2020. These surveys returned an 8,000 Siemens reading for the B1 Conductor and a decay constant in excess of 350msec (announced 02 July 2021), which was in the range for massive sulphides. The projected target intercept depth was 525m to 575m.

Borehole KSZDD002 was designed to intercept the centre of the single plate model developed for the B1 Conductor.

Drilling commenced on KSZDD002 on 19 November 2021, with an expected target intercept depth of between 525m and 575m for the B1 Conductor. Drilling was paused over Christmas, at 350m, with an initial DHEM survey completed.

Following completion of the first DHEM survey on KSZDD002, the conductance reading of the originally-modelled B1 Conductor increased to 11,000 Siemens (announced 17 December 2021) which was further into the range for massive sulphides.

Kavango's exploration model in the Kalahari Suture Zone ("KSZ") is based on identifying drill targets, which exhibit conductance readings between 1,000 Siemens and 10,000 Siemens, or greater. An illustrative table can be found below on the Company's website:

https://kavangoresources.com/images/2021/07/02/idealized-resistivity-and-conductivity-spectrum-for-rocks-and-mineralization-kav-ksz.jpg

Drilling recommenced on KSZDD002 on 17 January 2022.

Despite highly challenging conditions (with 10 days lost to a severe blockage at 470m depth, which was eventually resolved), the hole was successfully drilled to a depth of 650m. A coarse-grained dolerite/gabbro was intercepted from 514.94m to 590.58m. Very coarse grained, thin, highly magnetic zones/patches were observed in the unit.

Visual inspection of the drill core and readings taken with a Magnetic Susceptibility and Conductivity meter (a KT-10 S/C unit), provide no indication that the B1 Conductor has been intercepted. Core from the Borehole will be cut, sampled and analysed at an internationally accredited laboratory in South Africa.

Following completion of the Borehole, a DHEM survey was immediately carried out.  Modelling of the data indicates the presence of two conductors:

1)  A very conductive, off-hole target, with a conductivity of 16,000 Siemens, and magnetic data indicating the presence of a magnetic source in close proximity. The relationship between the conductive and magnetic body could fit an idealised model for pyrrhotite bearing nickel/copper massive sulphides. The 16,000 Siemens conductance is even further into the range for massive sulphides.

2)   A second conductor with a modelled conductance of 2500 Siemens, which conforms to an idealised model for net textured sulphides.

Given the presence of two prospective conductive targets in such close proximity to the original modelled B1 Conductor, Kavango plans to widen its local exploration campaign to search for other possible conductor targets in the neighbouring vicinity.

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 pertaining to geophysics have been read and approved by Mr. Jeremy S. Brett, M.Sc., P.Geo., Senior Geophysical Consultant, Jeremy S. Brett International Consulting Ltd. in Toronto, Canada.  Mr. Brett is a member of the Professional Geoscientists of Ontario, the Prospectors and Developers Association of Canada, the Canadian Exploration Geophysical Society, and the Society of Economic Geologists.  Mr. Brett has sufficient experience that is relevant to geophysics applied the styles of mineralization and types of deposits under consideration to act as a Qualified Person as defined under the Canadian National Instrument 43-101, Standards of Disclosure for Mineral Projects. 

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.