PRESS RELEASE

16th December 2022

KAVANGO RESOURCES PLC

("Kavango" or "the Company")

KCB - CSAMT Kronos calibration & drill expansion

Botswana focussed metals exploration company Kavango Resources plc (LSE:KAV) ("Kavango") is pleased to announce the Company has interpreted inversion results from the Controlled-Source Audio Magnetotelluric ("CSAMT") Line 4A survey ("Line 4A"), which extended over Sandfire Resources' (ASX:SFR) Kronos copper target zone ("Kronos").

Kavango successfully identified the D'Kar/Ngwako Pan contact at Kronos from surface using CSAMT.

By using a known copper occurrence in the vicinity of PL082/2018, Kavango has developed an important control in its calibration of its CSAMT technology in the KCB. Subsequent interpretation of the Line 4A CSAMT data has encouraged the Company's technical team to expand the current drill programme beyond the1,250m originally planned.

Further updates on progress and upgraded targeting will be made in the New Year.

Highlights

·    Line 4A CSAMT results overview

§ Kronos occurrence identified clearly as sedimentary beds that dip shallowly to the northwest across the PL082/2018 licence border

§ Key D'Kar/Ngwako Pan formational contact pinpointed <200m from surface at Kronos

§ The key D'Kar/Ngwako Pan contact can be traced onto Kavango's licence, where is follows a syncline and dips back towards surface near the northwest edge of the licence.

§ Kavango is confident similar results can be replicated across the KCB

§ Results reviewed by an independent third party with regional KCB geology experience

§ Results shared with Sandfire Resources and positively received

·    Drilling programme update

§ Drill programme to be extended, final meterage to be confirmed

§ Drill programme to continue to Christmas break and recommence in New Year

§ Cores and rock chip samples currently being logged and interpreted to assess potential vectors indicating the proximity of a potential mineralising system

§ Kavango to use newly acquired CSAMT and Airborne Electromagnetic ("AEM") data to refine next phase of drill targets

Jeremy S. Brett, Senior Geophysical Consultant to Kavango Resources, commented:

"The Line 4A CSAMT results represent a technical breakthrough for Kavango. The successful imaging of the D'Kar/Ngwako Pan contact at the Kronos occurrence should allow us to develop CSAMT as a powerful exploration tool in our exploration for copper/silver mineralisation in the Kalahari Copper Belt.

CSAMT appears to identify the contact between the low resistivity D'Kar formation rocks and the substantially more resistive Ngwako Pan formation.  When combined with AEM, which is routinely deployed in the KCB, there appears to be tremendous potential that these are very complementary electromagnetic systems. We now believe that AEM conductors within the D'Kar can be distinguished from the highly desired conductors at the Ngwako Pan contact. Our goal is to test this theory with drilling.

If proved to be successful, Kavango's CSAMT method could save a lot of drilling metres and allow for the evaluation of the fold structures within the KCB in section, thereby determining the depth to the critical Ngwako Pan contact

Based on the technical success of the combined CSAMT and AEM results so far on PL082 and our ongoing interpretation of what we have already seen in drilling, Kavango has decided to extend the current drill programme into the New Year to continue to refine the application of this new method. This new tool will continue to develop." 

Line 4A CSAMT detailed results

Line 4A was extended beyond the boundary of PL082/2018 to the southeast and onto Sandfire ground that hosts the Kronos occurrence, with the permission of Sandfire Resources (ASX:SFR).  As Kronos is known from historical drilling to lie at the D'Kar/Ngwako contact zone, Kavango's objective was to use the target zone as a known geology calibration point for the CSAMT to confirm the D'Kar / Ngwako Pan contact signature on PL082/2018.

Data from Line 4A highlighted a very distinct, shallowly to moderately dipping geological folded zone within PL082/2018 known as a "syncline", defined as folded sediments dipping southeast and northwest towards a central axis.  Steeply dipping brittle faults cross this syncline structure.

Kavango has now received inversions for CSAMT data acquired over a total of 4 lines on PL082/2018, each showing this same syncline fold structure.

Kronos is defined clearly on Line 4A as sedimentary beds that dip shallowly to the northeast across the Kavango licence boundary, continue across PL082 as deep as 650m, then dip back up towards the surface on the Northwest limb of the identified syncline.

Kavango interpreted the inversion as a signature for the presence of the crucial D'Kar/Ngwako Pan formational contact from the Kronos target zone to the northwest edge of PL082/2018. This formational contact is the primary control for economic copper/silver deposits across the KCB. Kavango is currently considering a new drill hole to target this specific horizon, as it could represent a significant strain breccia zone that may have acted as a conduit for fluid alteration.

Figure 1: Line 4 CSAMT inversion, viewed northeast, showing interpreted continuation of shallowly northwest dipping sedimentary beds, hosting Sandfire's Kronos occurrence, that propagate onto Kavango's PL082 licence in the KCB. There is clear resolution of a syncline with significant cross faults that could act as fluid conduits. The sediments dip back towards surface on the northwest ends of the syncline, on Kavango's licence.

The inversions from Line 4A have greatly exceeded Kavango's expectations. They provide verification of CSAMT surveys as an exploration tool in the KCB, showing that critical D'Kar -Ngwako Pan contact should be resolvable on the Company's licences.

Another key observation from Line 4A was of prominent brittle structures crossing the folded sediments of the synform on PL082, originating from several kilometres in depth and propagating to the near surface. These have been interpreted as probable conduits for hydrothermal fluids and alternation that could potentially lead to mineralisation at the Ngwako Pan contact.

Next steps

The northwest edge of the syncline on PL082/2018, as elucidated by Line 4A, has been initially tested with Hole KCBRD005, which was originally sited on the basis of surface geochemical soil anomalies.

The CSAMT results from Line 4A suggest that the Company is targeting a priority structure, in line with the Company's existing drill strategy for PL082/2018 (announced >>> 20 October 2022). A probable folded and brecciated zone was encountered in Hole KCBRD005, at the c.350m depth indicated by the interpretation of the Line 6A CSAMT inversion. Kavango has therefore engaged a KCB experienced local geological contractor to re-log and analyse cores and rock chip samples taken from the first phase of drilling.

Kavango's aim with the relogging is to confirm the presence of physical and geochemical exploration vectors that could indicate the proximity of a potential mineralising system to the recent drilling. The Company believes this work will assist it in deciding its next drill target location.

The Company's KCB drill programme will pause shortly for the Christmas holiday and continue in the New Year on a new exploration hole.

Should core relogging confirm the Company's current understanding of what it has encountered in Hole KCBRD005, it is likely the next exploration hole will be targeted on the basis of (i) proving that the inverted CSAMT data is effective in identifying the D'Kar/Ngwako Pan contact on the northwest limb of the syncline, (ii) verifying interpreted fault structures, and (iii) determining if these targets are altered and mineralized.

Kavango's technical team will continue to work on processing and interpreting previously and newly acquired CSAMT and AEM data across its portfolio of KCB prospecting licences to assist with improved target resolution.

Kavango will publish full drill results at the end of the campaign, once all data has been processed.

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

+44 207 374 2212

Jason Robertson              

Kavango Competent Person Statement

The technical information contained in this announcement pertaining to geology and exploration have been read and approved by Brett Grist BSc(Hons) FAusIMM (CP).  Mr Grist is a Fellow of the Australasian Institute of Mining and Metallurgy with Chartered Professional status.  Mr Grist 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'.

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 to 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.

NOTES TO EDITORS

KAVANGO'S INTERESTS IN THE KALAHARI COPPER BELT

Kavango's exploration licences in the KCB include:

Kanye Resources

100% working interest (in 10 prospecting licences, which cover 4,256km².

The LVR Project / Shongwe Resources

A 90% interest in prospecting licences PL082/2018 & PL 083/2018, held in a Joint Venture, Shongwe Resources, with LVR GeoExplorers (Pty) Ltd ("LVR"), which cover 809km².

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 was often accompanied by the 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 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 redox boundaries (sometimes for many kilometres) because they often contain iron and have a higher magnetic signature than the surrounding rock. These have recently been successfully mapped by Kavango's exploration teams.

GLOSSARY

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

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

Inversion:  Geophysical inversion refers to mathematical and statistical techniques for recovering information on subsurface physical properties, from measured 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 cost-effective 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.