PRESS RELEASE

08 July 2022

KAVANGO RESOURCES PLC

("Kavango" or "the Company")

Kanye Resources Operational Update

Botswana focussed metals exploration company Kavango Resources plc (LSE:KAV) ("Kavango") provides an operational update on its Kanye Resources ("Kanye") Joint Venture with Power Metal Resources (AIM:POW).

Highlights

-     Ditau

-     Drill programme complete

-     4 holes successfully drilled on Targets i1, i8 and i10, totalling 1,623.60m of diamond core drilling

-     Three of twelve targets tested in the search for carbonatites and mineralised intrusives

-     High and low frequency Controlled Source Audio Magnetotelluric completed over Targets i1, i8 and i10, with the aim of providing lateral definition of the geology intersected in each hole

-     All holes geologically logged and three of the four holes sampled, the fourth is being cut. Magnetic Susceptibility, Conductivity and Specific Gravity measurements have been completed on all core

-     Samples from Hole DITDD004 currently being analysed at an internationally accredited laboratory

-     Samples from two of the remaining three holes now in transit, with the fourth being cut

-     Final drill report being prepared, with recommendations for next steps of exploration

-     Kalahari Copper Belt ("KCB")

-     3,478 soil samples collected of current 8,000 soil sample campaign

-     Kavango has identified and located the Ngwako Pan-D'kar formational contact across several of the company KCB licences

-     The Ngwako Pan-D'kar contact is a crucial lithological control for copper/silver mineralisation in the KCB

-     Kavango's geologists have completed an extensive mapping exercise over the majority of the Kanye KCB prospecting licences ("PLs")

-     Kavango has deployed a seismic-based Tromino unit to map overburden and subsoil layers, using resonance frequencies

-     The Tromino assists subsurface mapping to help design appropriate soil geochemistry sampling techniques across various areas with different transported overburden thickness, and to enable "domaining" of geochemical data to assist interpretation of the same

-     Preliminary discussions with RC drill contractors for a planned programme in H2 2022

-     This will target structural features in the vicinity of and above Ngwako Pan-D'kar formation contacts.

-     Maps of its progress in the Kalahari Copper Belt

-     https://www.kavangoresources.com/media-library/news-release-media/rns8july2022

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

"We have come a long way with Ditau in a very short period of time. These are complex targets, in an area where there was almost no prior geological data. Kavango's  application of systematic modern exploration methodologies is starting to unlock the complex geological history of this area.

We are particularly encouraged by what we've seen from the CSAMT technology we are using. Armed now with drill core to enhance our interpretation of the survey results, we believe this will prove to be an extremely powerful exploration tool as we pursue a more comprehensive programme across the 12 targets at Ditau.

Our new approach will enable us to map with confidence the underlying stratigraphy at Ditau. This is particularly important when exploring for buried mineralised intrusives. The more accurately we can model the Ditau targets in future, the greater the confidence we will have in drill targeting.

I would like to thank our team and our drillers, Mindea, for successfully completing the current drill programme quickly and safely. This was a challenging task, as the site is remote. Issues such as a limited water supply and drilling through deep sand cover were successfully overcome. Core recovery was again at 99%.

Once again, Kavango is proving it is up the task of effective, modern exploration in difficult terrain.

All holes have been logged and sampled, a wide range of geological units were seen, including sediments, intrusive bodies, and in hole DITDD004, zones tens of metres thick with locally abundant shearing, veining and alteration, including significant sulphide mineralisation. This is an area in which there was almost no prior geological information due to the depth of sand cover, and as a result this drilling has proved instrumental in better understanding the geology of the area.

This has included placing the individual targets within a regional stratigraphic setting as well as their relative positions in the same. The relevance of this is to understand the geological framework, from variations within the original sedimentary environment, to later deformation and structural histories, to assist the evaluation of the economic potential, and aid further exploration efforts.

Using the results of our AMT surveys we are now able to translate the intersected geology across the subsurface. We await the results of chemical assays and petrological work in order to evaluate any economic potential and plan future work for the area.

We are now preparing plans for the next stage in exploration of this challenging and exciting project."  

And on the Kalahari Copper Belt:

"In the Kalahari Copper Belt we have built a head of steam in our exploration programme in the first half of 2022. With the changes we made to Kavango in the second half of last year and the new team members we recruited, we are now seeing the results coming in from the field.

The momentum is highly encouraging and we are quickly moving towards defining drill targets for a campaign later this year.

The exploration model in the KCB is well-established, but I am pleased to report Kavango is also innovating in the area. Our use of the Tromino was a simple idea, but so far appears to be effective, in helping us quickly estimate the depth of sand cover in our prospecting licenses this has guided our decision-making both in terms of where to take soil samples and how to interpret them.

We are particularly happy to have identified and located several key Ngwako Pan-D'kar formational contacts across our several of our license areas.  This is an important step towards validating our original exploration hypothesis that the western half of the KCB in Botswana was both prospective for copper/silver mineralisation and overlooked because the sand cover obscured much of the regional geology.

I would like to thank our teams in the field for their hard work  and we look forward to the results of further soil sampling, which will hopefully lead to clearly defined drill targets a little later in 2022."

Ditau drilling overview

Kavango has successfully completed the current diamond drilling programme at the Ditau Camp Project ("Ditau"), in southwestern Botswana. The programme targeted three geophysical structures/targets, prospective for possible carbonatites and/or intrusive complexes that may host carbonatites. A total of four holes were drilled, for 1,623.60 m.

Samples from Hole DITDD004 are presently being analysed at an internationally accredited laboratory in South Africa. Samples from two holes are in transit to the same laboratory while core from the fourth hole is being cut.

Additional Controlled Source Audio Magneto Telluric ("CSAMT") geophysical surveys and modelling have been carried out to further aid interpretation of the geological units intersected.

Kavango is now preparing the next steps for exploration of the twelve targets at Ditau, building on the geological knowledge gained from this programme.

-    Four diamond drillholes successfully completed, funded on a part cash, part equity basis with the drillers, Mindea Drilling and Exploration Services

-   Drillhole DITDD003 completed; final depth 300.14m.

-   Drillhole DITDD004 completed; final depth 393.29 m

-   Drillhole DITDD005 completed; final depth 343.90 m

-   Drillhole DITDD006 completed; final depth 586.27 m

-    Three (of twelve) targets have been tested so far. These are complex, buried features, over which Kavango are starting to gain a detailed geological knowledge, through the combination of drilling and cutting-edge geophysical techniques.

-    High and low frequency CSAMT surveys have been completed over each of the targets, with the aim of providing lateral definition of the geology intersected in each hole.

-    Drillholes DITDD003 and DITDD004 both targeted Target i10. DITDD005 targeted Target i1, and DITDD006 targeted Target i8.

-    DITDD003 and DITDD004 were drilled in close proximity (600 m) yet showed very different geology, with DITDD004 showing evidence of brecciation, veining, alteration and significant sulphide mineralisation.

-    DITDD005 has helped enhance the Company's understanding of the stratigraphy of Target i1 (the largest anomaly at Ditau). Data from this hole will guide follow up CSAMT work.

-    DITDD006 was drilled to a deeper depth than the other three holes to test a possible intrusive body, as identified by the recently completed CSAMT survey over Target I8.

-    All holes have been geologically logged and sampled, with regular Magnetic Susceptibility and Conductivity readings, and Specific Gravity/Density measurements taken of all the drilled core.

-    Assays are now pending, together with petrology samples. Results from these will define any potential of the intersected geology for carbonatite and/or base/precious metal mineralisation.

Final drill report currently being prepared, with recommendations for next steps of exploration.

Ditau completed holes

A table summarising the holes completed at Ditau under the 2022 programme is provided below. Analytical results will be provided once assays are complete.

Ditau targets and intersected geology

Kavango has identified, using combined and integrated Airborne Magnetics, Ground Magnetics and CSAMT surveys, 12 geophysical structures/targets at Ditau (targets i1 through i12), which the Company believes could be possible carbonatites and/or intrusive complexes that may host carbonatites. 9 of these targets are particularly well defined.

There are two target types at Ditau:

1)   Discrete kilometre-scale carbonatite pipe targets, and

2)   Larger multi-kilometre scale intrusive complex targets that may also be host to carbonatite intrusives and/or mafic associated mineralisation styles prospective for base metals

In the current drill programme, Kavango evaluated three of these targets; i10, i1, and i8. In parallel with the drilling, additional AMT work was implemented to further aid interpretation, given the high-quality sub-surface imagery achieved early in the programme, and increasing confidence in interpretation of data using this technique.

Ditau Target i10

Two drillholes, DITDD003 and DITDD004 were drilled into this target, a discrete circular anomaly of 2.2 km diameter. The two holes are 600m apart and yet show very different geology, which highlights the high level of geological variability of the area, which Kavango's geologists consider could result from structural disturbance or major changes in sedimentary depositional environment. The intersected lithologies are described briefly below.

DITDD003

This hole passed through 83.90 m of Kalahari sands, before intersecting units including a breccia of 20.44 m from 83.90 m, and a dolomitic carbonate rock from 154.89 m. In addition, a 7.16 m intrusive, considered to be a dolerite, was intersected from 247.73 m.

DITDD004

This hole passed through 105.91 m of Kalahari sediments before intersecting dolomitic carbonates, a mafic intrusive (from 109.50   m to 227.14 m), and mudstone units interbedded with cm sandstone beds. Shearing, brecciation, veining, and haematitic alteration were observed to varying degrees within the mudstones over tens of metres thickness. Locally the hematite alteration is extremely intense with several phases of sulphide generation, in mm/cm scale veins and, most prominently, as a later phase that appears to overprint all earlier alteration. Variations in the geology between these holes are considered to be due to variations in the original sedimentary environment, or later structural deformation within a permit scale southwest-northeast structural corridor that underlies the Ditau project.

Ditau Target i1

One hole, DITDD005, was drilled into the i1 target, to investigate this possible large 7 km x 18.5 km magmatic intrusive complex, within which are circular structures indicative of potential carbonatite intrusives.

This hole passed through 31.00 m of sands before passing into units consisting of matrix and clast-supported conglomerate. The conglomerate shows metre-scale bedding with variable clast percentage and composition within these beds indicative of a high energy environment with material derived from variable sources. The clasts correspond to some of the units drilled in the other Ditau project holes, and include mudstones, some with a high magnetic content, silicified dolomites and minor mafics. The matrix is generally a medium-coarse, siliceous sand. Minor pyrite veining was seen. This unit is interpreted to be stratigraphically part of the Segwagwa Group, part of the Transvaal Supergroup.

Ditau Target i8

One hole, DITDD006, was drilled into the i8 target, to evaluate whether this could represent an intrusive dome structure as indicated by the lates AMT interpretations, that is approximately 4 km in diameter. This hole was planned to 400 m depth, and was extended to 586 m in order to ensure that the geophysical target as outlined on a newly implemented high-frequency AMT survey was thoroughly investigated.

This hole passed through 125.34 m of Kalahari sediments, before entering a series of mudstones and siltstones to 229.73 m, with an intruded dolerite from 161.77     m to 227.95 m. The remainder of the hole comprises tillite, siltstones and mudstones, interpreted to be of the Dwyka stratigraphic unit. No significant veining or alteration were seen.

Kalahari Copper Belt Overview

Kavango Resources has identified an important lithological/structural control of copper/silver mineralisation in the KCB, across several of its prospecting licenses held within the Kanye Resources Joint Venture. The Ngwako Pan-D'Kar formational contact zone is closely associated with multiple copper-silver deposits and discoveries elsewhere in the KCB.

This formational contact represents areas where the two rock formations meet, with the shallower D'Kar lithologies overlying the deeper Ngwako Pan sediments. Economic grades of mineralisation can be found along and close to these zones where concentrated through later shearing, folding, and tensional failure between the rock layers.

Kavango is pleased to announce that it has successfully mapped the Ngwako Pan-D'kar contact across a number of its own licences.

The discovery of the key control on mineralisation came as part of an extensive programme of geological mapping and soil sampling launched by the Company earlier this year. The goal of this ongoing work is to identify and rank a complete range of drill targets after previous efforts identified multiple Airborne Electromagnetic and geochemical targets over Kanye's KCB licences.

Kavango will now work to advance discussions with RC drill contractors for its planned Kalahari Copper Belt drill programme later in 2022. This will target structural features in the vicinity of and above the Ngwako Pan-D'kar formational contacts.

Alongside this, the Company has continued extensive soil sampling and is midway through an 8,000 sample campaign, aimed at widening coverage in existing licences, as well as starting new work on licences such as the Mamuno package, located adjacent to the Botswana-Namibia border.

In addition, the Company is using a Tromino tool to estimate overburden thickness. This is being used to support interpretation of the geochemical data, in what is complex terrain.

Kalahari Copper Belt geology and geological mapping

All available historical maps and information, including relogging of local water boreholes, have been compiled and used to define priority areas based on known/inferred geology. The relogging also included Magnetic Susceptibility readings and, in selected holes, the use of a pXRF unit. Geological compilation has been augmented with extensive company geological mapping over areas defined as priority taking account of favourable stratigraphic horizons and known mineralised systems in the KCB. This has successfully identified the presence of the Ngwako Pan-D'kar formational contact on multiple licences.

Following the geological mapping, traverses across areas of known outcrop and collection of rock samples for lithogeochemical "fingerprinting" have been carried out. The results of this exercise are expected to assist in determining stratigraphy in areas of poor exposure and during drilling, in particular when dealing with drill chips.

The benefit of this detailed mapping is that inliers of Ngwako Pan Formation have been mapped within D'kar units - some of these are not shown on any existing maps and are to be confirmed through drilling. As the contact between the two formations is the primary target for KCB copper/silver mineralisation, the results of this mapping are considered very encouraging.

The combination of all these geological datasets has been used to select priority areas for the soil sampling programmes, along with other field programmes.

Kalahari Copper Belt geochemical survey

Following on from the geology compilation and interpretation work, a programme comprising approximately 8,000 samples of detailed soil geochemical sampling is underway, to augment previous work. This uses the company's in-house Vanta XRF Analyser in geochemistry mode with three beams switched on for a total analytical time of 120 seconds per sample. Analyses are done using a desk-top docking station to ensure a consistent presentation distance between the sample and analyser window. Quality Control measures include use of reference materials, which are used to generate user factors for normalising the analytical results prior to interpretation. This work is presently being undertaken on the four Mamuno licences, as well as PL036/2020, and PL082/2018.

Selected samples will also be sent to an independent, internationally accredited laboratory in South Africa for multi-element analyses by conventional methods.

Table 1: 2022 geochemical sampling programme status, June 2022

PL036/2020 (Kanye JV)

A total of 3,478 samples have so far been collected. At current production rates of +-150 samples/day, it is anticipated that the current phase of sampling on PL36/2020 will be completed by mid-July.

Mamuno Block: PL46, 49, 52, 53/2020 (Kanye JV)

Soil sampling is underway on these four licences. This block, located in the west, has seen little previous work. It lies on-strike with the main KCB trend.

Sampling is planned to cover the outcropping Ngwako Pan-D'kar Formation contact zone that has been mapped in detail by the company. A total of 1,319 samples at 50 m sample stations on 800 m spaced lines are planned, with some extensions across mapped Ngwako Pan Formation units to check for any structural repetition.

Kalahari Copper Belt Tromino surveys

In order to aid interpretation of geochemical data, a Tromino unit has been purchased. This seismic based unit is typically used in civil engineering applications for the characterisation of subsoils, using seismic waves. This maps subsoil resonance frequencies and has been identified by Kavango as ideal for reviewing overburden thickness such as the Kalahari Sands.

The Tromino is a small device that is being deployed along selected soil sample traverses. Given the proven attenuation of sand cover on geochemical values from both pXRF and conventional geochemical analyses, knowledge of the structure and thickness of the regolith profiles will be critical in both the design of the geochemical sampling programme as well as the domaining of the geochemical data during interpretation.

Three orientation surveys have been completed in PL036/2020. These were located across existing water boreholes with available geology logs, to enable a direct correlation of the Tromino data against known geology. Each location had varying depths of cover ranging from 6-40 m. Survey lines were 1 km long with the borehole at the centre. Sample points were 100 m apart.

The level of resolution achieved with this has exceeded Kavango's expectations, and will now be used to aid in the interpretation of geomorphology for domaining of geochemical data, ensuring that a full understanding can be achieved of any geochemical anomalies identified.

Kalahari Copper Belt ongoing work programme (June to August 2022)

Work will continue to complete the activities currently in progress, integrating these with existing data sets and generating drill targets.

All KCB Licences

-     Relogging of remaining, relevant historical drill holes - these are predominantly chips from water boreholes -this is planned to support the next stage of geophysical interpretations.

PL036/2020

-     Completion of soil sampling over selected target zones defined from the preliminary geophysical interpretations.

-     Continued geochemical analyses, including comparison of the data generated from the pXRF against conventional laboratory analyses.

-     Completion of interpretation of previous detailed ground magnetic survey.

-     Completion of Lithogeochemical "fingerprinting" of lithologies within the main formations.

Mamuno Licences

-     Completion of soil sampling.

-     Follow-up of identified targets from this, geophysics, and geological mapping.

In parallel with the above, discussions are underway with RC drill contractors for a planned drill programme later in 2022, aimed at targeting structural features in the vicinity of and above the Ngwako Pan-D'kar Formation contacts.

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 geology and exploration have been read and approved by Mr. John Lauderdale B.Sc., C. Geol., Group Consulting Geologist.  Mr. Lauderdale is a Chartered Geologist and Fellow of The Geological Society of London, a Fellow of The Geological Society of South Africa, and a Member of the Society of Economic Geologists.  Mr. Lauderdale has sufficient experience that is relevant to the exploration programmes and geology of the main styles of mineralisation and deposit types under consideration to act as a Qualified Person as defined in the 2012 Edition of the 'Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves'.

NOTES TO EDITORS

THE DITAU CAMP PROJECT

The Ditau Camp Project comprises two Prospecting Licences ("PLs") (PL169/2012 & PL010/2019). Geophysical and geochemical analyses by Kavango in the two PLs have identified 12 "geophysical structures" of which 9 have clear indications of being "ring structures".

The "ring structures" have the potential to host carbonatite and other intrusive rocks.

Carbonatites are the principal source of rare earth elements ("REEs") including the much sought-after elements Neodymium (Nd) and Praseodymium (Pr), which are used in the manufacture of the new generation of electric vehicles (EVs), magnets and other high-tech applications. Other elements/minerals associated with carbonatites include Niobium, Phosphates, Monazite, Strontium, Magnetite and Copper.

Mafic intrusives have potential to host base and precious metals, as seen in the Molopo Farms Project, Selebi Phikwe and Tati Nickel deposits in Botswana.

 KAVANGO'S INTERESTS IN THE KALAHARI COPPER BELT

Kavango's exploration licenses in the KCB include:

Kanye Resources

Ø 50% working interests in 10 prospecting licenses held in a Joint Venture with Power Metal Resources (LSE:POW), which cover 4,256km².

The LVR Project

Ø Earning in a 90% interest in prospecting licenses PL082/2018 & PL 083/2018, held in a Joint Venture with LVR GeoExplorers (Pty) Ltd ("LVR"), which cover 1,091km².

THE KCB PROJECT GEOLOGICAL SETTING

Kavango's KCB Project areas include lengthy redox boundaries, close to surface, that represent excellent exploration targets.

The redox boundaries were formed several hundred million years ago in active sedimentary basins flooded by shallow seas. Organic matter accumulating on the sea floor created anoxic conditions, which formed a chemical barrier to metal ions rising upwards through the sediments as the basin subsided. The change in chemistry caused the precipitation of metal species (carbonates, sulphides etc.) including copper and silver on or just below the redox boundary.

Subsequent tectonic activity folded the sedimentary layers, which enabled concentration of metals into the fold hinges and shear zones. Fold hinges pointing upwards are known as anticlines, while the downward pointing hinges are called synclines.

Several large copper/silver ore deposits have been discovered on the KCB in association with anticlines in areas now held under licence by Sandfire Resources (ASX:SFR) and Khomecau Copper Mining the Botswana subsidiary of Cupric Canyon (a privately owned mining development company). These deposits are relatively close to surface and many are amenable to open pit mining operations.

Accumulations of metals can be traced along the strike of geochemical reduction-oxidation ("redox") boundaries (sometimes for many kilometres) due to variations in the mineralogy of the lithologies and, in places, due to sulphide rich layers that are parallel to the contact between the Formations. These compositional variations are reflected in the magnetic signatures both between and within the Formations of interest. These have recently been successfully mapped by Kavango's exploration teams.

GLOSSARY

Aeromagnetic: An aeromagnetic survey is a geophysical survey carried out using a magnetometer aboard an aircraft.

AEM: Airborne Electromagnetic Survey. This uses an energised loop to induce currents in underlying lithological units, which resultant magnetic field can then be measured.

AMT: Abbreviated from Audio frequency Magneto Telluric. An AMT survey is an electromagnetic survey technique that uses naturally occurring passive energy sources, and which can electrically map geologic structures to depths of 500 metres or more.

BIF: Abbreviated from Banded Iron Formation. A geological unit composed of iron-rich rock. These formations have a banded pattern that is created when alternating layers of oxidised and reduced iron minerals are deposited.

Breccia: Breccia is a rock composed of rock fragments held together by cement or a fine-grained matrix. The fragments are angular/rubbly in appearance.

Carbonatite: Carbonatite is a type of intrusive or extrusive igneous rock defined by mineralogic composition consisting of greater than 50% carbonate minerals.

Inversion: Geophysical inversion refers to mathematical and statistical techniques for recovering information on subsurface physical properties,  from observed geophysical data

KCB: Kalahari Copper Belt. An area of southern Africa, running ENE-WSW from Botswana into Namibia, within which multiple economic copper-silver sedimentary rock hosted deposits have been discovered.

RC: Reverse Circulation drilling. This is a method of drilling that uses compressed air to drive a downhole hammer, which breaks rock into chips that are forced up an internal tube in the drill rod, minimising risk of contamination by wall-rock.

Redox boundary: Reduction and oxidation boundary, at which the chemical oxidative state of chemical species changes, typically resulting in precipitation of metal salts.