24 May 2023

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

 Stormyra Final Batch Assay Results - Maiden Drill 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 final set of results from its 19-hole maiden diamond drill programme over the Stormyra nickel - copper deposit in Espedalen, Norway.

Highlights

·    The highly successful drill programme has achieved notable Ni-Cu intercepts over a strike length of 1.2 kilometres.

·    Peak intercepts for the third phase of initial drilling included:

o  Hole ESP2317 - 2.18% Ni Eq. over 3.50m from 61.50m

o  Hole ESP2318 - 0.41% Ni Eq. over 9.20m from 31.50m incl. 1.15% Ni Eq. over 0.90m from 35.20m

o  Hole ESP2319  - 2.43% Ni Eq. over 2.10m from 53.60m incl. 5.53% Ni Eq. over 0.65m from 54.35m and 1.33% Ni Eq. over 2.70m from 62.20m

·    Geophysics and drilling that intersected mineralisation at a grade of 2.43% Ni Eq over 2.1m confirms the untested southerly extension of the Stormyra orebody represents a viable drill target likely to further increase the resource 

Colin Bird, Executive Chairman of Kendrick Resources Plc commented: "Our drill programme over Stormyra has been very successful with impressive peak intercepts reported from the three sets of results including 6.85% Ni Eq over 1.25m, 3.39% Ni Eq over 11.6m and 2.59% Ni Eq over 3.65m. These latest results have continued the trend and more importantly have demonstrated that the proposed southerly extension of the orebody defined by geophysics has been confirmed by our recent drilling.

Based on the geophysical data we have potentially several hundred metres of strike length to test to broadly delineate the Stormyra orebody. We also have a further 10 high quality nickel targets within our licence that all have drill intercepts that exceed 1% Ni. We are investigating each target and prioritising them ahead of further drilling.

We will continue to build a relationship with local stakeholders, and we are sufficiently confident of the continuity of mineralisation to formally engage external engineering advice for the review of future plant design.

Kendrick has several other prospective nickel properties in Norway that are being reviewed in a broader context of a regional nickel programme. The Hosanger Licence hosts the former Litland Ni mine where more than 50 historic boreholes are under investigation ahead of Kendrick defining drill targets. Also, the Sigdal Licence hosts a target with a single drillhole intercept of 0.36% Ni, 0.43% Cu & 10.1g/t Au over 1.48m".    

Drilling Programme

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 third and final batch of samples sent to the laboratory, consisting of five out of the six 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 ES2318 and ES2319 showing local geology and mineralised intercepts.

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.

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