4 May 2023

Kendrick Resources Plc
("Kendrick" or the "Company")

 Stormyra Second Batch Assay Results

Maiden Diamond Drill Programme

Kendrick Resources Plc (LSE: KEN), a mineral exploration and development company with vanadium, nickel and copper projects in Scandinavia is pleased to announce its second set of results from its maiden 19 hole diamond drill programme over the Stormyra Deposit, part of the Espedalen Project, Norway. The first set of results were announced on 20 April 23 and assay results are pending for 6 holes.

Highlights

·    High-grade nickel intercepts achieved in a number of boreholes drilled across the Stormyra deposit:

o  Hole ESP2308 - 3.39% Ni Eq. over 11.60m from 52.40m including 5.80% Ni Eq over 4.9m from 59.1m

o  Hole ESP2307 - 2.59% Ni Eq. over 3.65m from 37.80m including 4.85% Ni Eq. over 1.80m from 38.50m

o  Hole ESP2312 - 2.29% Ni Eq. over 4.15m from 92.35m

o  Hole ESP2313 - 1.98% Ni Eq. over 3.55m from 79.60m including 3.86% Ni Eq. over 1.70m from 79.60m

·    Downhole optical televiewer (OTV) structural mapping survey completed on 13 holes

·    Ground based TEM survey completed with the aim of tracing the Stormyra deposit to the southeast where mineralisation is open ended

Colin Bird, Executive Chairman of Kendrick Resources Plc commented: "Assays received for the current programme are the highest individual assays ever recorded for this deposit and the intercept in Hole ES2308 is one of the best drilled to date. The Stormyra orebody is shaping up to be a potential shallow underground operation with minimal surface impact. Results to date have exceeded expectations and the mineralised widths of recent intercepts are particularly encouraging especially when linked to grades of more than 1% Ni. These recent intercepts reinforce our decision to continue to evaluate the southern untested extension of Stormyra deposit and it is important to reiterate that we have a further 10 prospects within the Espedalen Project all containing nickel intersections of at least 5m at grades >1% Ni".

Drilling Programme

Kendrick's maiden diamond drill programme at the Stormyra Ni-Cu-Co Deposit (see Kendrick's RNS dated: 31 January 2023) concluded on 1 March  2023, encompassing 19 boreholes, comprising infill, step-out, and exploration holes, spanning a total of 1,650 metres (Figure 1.).

Figure 1. Drill Hole Location Map for the Stormyra Deposit, Espedalen, Norway

A subset of 225 metres was forwarded to ALS Scandinavia AB for processing. After the core had been logged, the selected drill core intervals were dispatched to the ALS laboratory in Malå, Sweden for preparation and analysed at ALS Loughrea, Ireland.

The second batch of samples sent to the laboratory, consisting of six out of the seven holes drilled, have been received and are illustrated (Figures 2. - 4.) as well as tabulated (Table 1.) below.

Figure 2. Long Section through the Stormyra Deposit, Espedalen, Norway

Figure 3. Cross section through holes ES2307 and ES2308 showing local geology and mineralised intercepts. 

Figure 4. Drill Core Box Photo from hole ES2308 (60.35m - 65.10m) showing sampled intervals, lengths and respective assay grades rounded to two decimal places.

Table 1. Assay results for the second batch of samples received from ALS Scandinavia AB in Malå, Sweden.

Notes:        

1)        Reported intervals are downhole widths.

2)        Reported intervals are calculated for zones assaying > 0.25% Nickel Equivalent and containing less than 3 meters of internal waste.

3)        The Nickel equivalent values are estimated using prevailing metal prices of $22000/t Nickel, $8,800/t Copper and $35,000/t Cobalt and are presented for ease of interval comparison only. Metallurgical factors are assumed to be 100% although the recovery factors for the respective metals may vary significantly.

4)        The Nickel equivalent values may differ slightly due to rounding.

Results for the final batch of drill core sent for assay, consisting of the final 6 holes, are still pending.

Downhole Optical Televiewer

In the month of April, an optical televiewer (OTV) survey was conducted on the newly drilled boreholes. Of the total of 19 boreholes, 13 were successfully logged, while the remaining 5 were inaccessible due to obstructions from snow, ice, or rock debris, impeding the insertion of the device. Additionally, one borehole was omitted due to time-constraints. The interpretation of the images obtained from the survey is currently underway, and it is expected to provide valuable insights into any structural factors that may have influenced the mineralization.

Geophysical Surveys

Following the drilling, a magnetic survey was conducted on the ground in March, and its interpretation is ongoing (see Kendrick's RNS dated: 20 April 2023).  Additionally, a transient electromagnetic (TEM) survey was carried out to investigate the presumed south-eastward extension of the Stormyra mineralization in an area that remains to be drill tested. Historic TEM surveys led to the discovery of the Stormyra deposit and it is a proven method to pick up the conductive orebody. Anomalism has been detected southeast of the known drill-tested mineralization, and the survey data is currently being interpreted.

Quality Assurance/Quality Control (QA/QC)

The diamond drilling program was executed by Arctic Drilling AS. The rig was aligned using a DeviSight rig aligner and the hole was surveyed with a DeviFlex Rapid at 3m intervals after the completion of a hole. Collar coordinates were taken from the Devisight rig aligner which uses both types of navigation satellites (Glonass and GPS) and had an average accuracy of <1m.

The NQ2 sized core from the diamond drill programme was logged, marked, and photographed, and RQD and magnetic susceptibility measurements were taken by experienced geologists and technicians from EMX royalty.

The drill core was sampled at minimum 0.3 metre up to 2.5 metre intervals and sent to ALS in Malå, Sweden. The samples were cut, and the split (½ core or two quarter core) samples were crushed, split, and pulverized (using ALS methods CRU-31, SPL-22Y, PUL-31).

A pulp split was sent to ALS Loughrea, Ireland, an ISO accredited laboratory for assaying, for final chemical analysis using the ALS methods ME-MS61, ME-OG62, and PGM-ICP23. Standards, blanks and duplicates were inserted regularly in the sample stream and checks were done for Nickel and Copper.

This announcement contains information which, prior to its disclosure, was inside information as stipulated under Regulation 11 of the Market Abuse (Amendment) (EU Exit) Regulations 2019/310 (as amended).

Qualified Person

The technical information contained in this announcement has been reviewed, verified, and approved by Colin Bird, CC.ENG, FIMMM, South African and UK Certified Mine Manager and Director of Kendrick Resources plc, with more than 40 years' experience mainly in hard rock mining.

About Kendrick Resources Plc

Kendrick Resources Plc is a mineral exploration and development company with projects primarily based across Scandinavia. The principal of its business is to explore the opportunities within the natural resources sector with a focus on battery, base, and precious metals including but not limited to vanadium and nickel. In doing so, the Company is looking to build a long-term energy metals business in Scandinavia which delivers energy metals to Europe to help enable its renewable energy transformation by building a top tier energy metals production business.

The Espedalen Project

The Espedalen Project is located approximately 50km north-west of Lillehammer in southern central Norway, 3 hours' drive north of Oslo. The project is well served with transport infrastructure being accessible by tarmac roads and is close to rail links to ports in southern Norway and to Glencore's Nikkelverk nickel refinery located 350km to the south.

The known nickel mineralisation on the Espedalen Project is hosted within differentiated mafic and ultramafic bodies which have intruded anorthositic country rocks collectively referred to as the Espedalen Complex and range in age from 1698 - 1250 Ma. This age range is similar to the age of the rocks hosting the giant Voisey's Bay nickel deposit in Labrador, Canada. Further evidence supporting the analogy between Espedalen and Voisey's Bay are tectonic plate reconstructions which place southern Norway in relatively close proximity during the time of formation of Voisey's Bay and with the two regions undergoing similar tectonic developments.

Mining in the Espedalen area dates from 1666. Total production from the Espedalen region is estimated at 100,000t @ 1.0% Ni, 0.4% Cu and 0.06% Co. Significant exploration has been undertaken in the area. The majority and most recent work having been completed by Falconbridge Limited and Blackstone Ventures Limited having completed 134 drill holes across the Espedalen project area, defining significant accumulations of nickel sulphides at the Stormyra and Dalen prospects and generating numerous other quality targets.

In 2009, Blackstone published a NI 43-101 report detailing Inferred Mineral Resources at the Stormyra and Dalen prospects. Blackstone relinquished the Espedalen Project in 2011 following the preceding financial crisis. ASX listed Drake Resources Limited (now renamed Ragnar Metals Limited) acquired the Espedalen Project in 2012. Drake refined the Mineral Resources at Stormyra (1.16Mt @ 1% Ni, 0.42% Cu & 0.04% Co) and Dalen (7.8Mt @ 0.28% Ni, 0.12% Cu & 0.02% Co) prospects in accordance with JORC (2012).

In addition to defining JORC (2012) compliant mineral resources at Stormyra and Dalen, Drake identified 10 prospects where drilling by Blackstone had intersected at least 5 meters percent Ni, which were never followed up. A detailed compilation of all past mineral exploration and drilling data and recognised that the Stormyra Mineral Resource is not closed off and a number of intersections warrant follow up drilling, to determine if the Mineral Resource can be expanded, including:

·    12.18m @ 2.39% Ni, 0.95% Cu & 0.07% Co from 64m in hole ES2005-20

·    7.15m @ 2.68% Ni, 1.26% Cu & 0.08% Ni from 29.35m in hole ES2005-22

·    14.6m @ 1.74% Ni, 0.79% Cu & 0.06% Co from 80.4m in hole ES2004-09

The Stormyra Mineral Resource contains a high-grade core, with assays of up to 8.2% Ni. The high-grade core is not fully defined by drilling. Additional investigation of this high-grade core is warranted along with drill testing a ground geophysical conductor, directly associated with the nickel mineralisation, which extends 500m to the south-east of the currently defined limits of the Stormyra Mineral Resource.

  Appendix A - Glossary of Technical Terms