21 August 2023

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

 Operational Update

Kendrick Resources Plc (LSE: KEN), a mineral exploration and development company with vanadium, nickel and copper projects in Scandinavia is pleased to provide an operational update for its Airijoki Project in Vittangi and initial work undertaken on the recently acquired Mjövattnet nickel - copper - PGM licence in Sweden.

Highlights

·    Commencement of 1,500m exploration diamond drill programme over Airijoki 200 licence with the objective of significantly increasing the existing vanadium mineral resource

·    Completion of ionic leach soil sampling programme over recently awarded prospective Airijoki licences where extensions to known vanadium and copper mineralisation may occur.

·    Completion of ionic leach soil sampling programme over the recently acquired Mjövattnet Nickel-Copper-PGM licences in Sweden.

Colin Bird, Executive Chairman of Kendrick Resources Plc commented:

"The drilling programme is a result of our ongoing fieldwork, and we are particularly excited about the strong geophysics and geo-chemical results that have targeted the drilling positions.

We eagerly await the results of the Mjövattnet nickel, copper and PGM soil sampling programme.  We are confident for the potential of strike extension as well as well as generating future targets within the licence.  The current soil programme will greatly assist us in this direction.

We will report the results for both the drilling and soil sampling programme as they are completed and interpreted by the company's geologist and third-party consultants were appropriate."

Airijoki Exploration strategy: Earlier in the year the Company set out its intention to increase the mineral Resource at Airijoki which currently stands at 44.3Mt @ 0.4% V₂O₅ for 100,800 tonnes of contained V₂O₅ and this programme is progressing on two fronts;

·    Firstly, with additional geochemical surveys over our most recent licence acquisitions where coincident prospective vanadium and copper in soil and rock values and geophysical anomalies are suggestive of a continuation of the geology that has generated the maiden resource.

·    Secondly, the drill programme has commenced and feedback from site indicates promising intercepts of magnetite-bearing rock are clearly present which is expected to host vanadium. 

The current focus is on the known geophysical extension of the current Mineral Resource within Licence Nr 200 where the geophysical signature clearly shows a continuous anomalous extension where earlier drilling on the adjacent Kendrick licence intersected vanadium-bearing lithologies. 

There is a noticeable groundswell of interest and commitment to Vanadium Redox Battery technology. It is all very well generating renewable energy but the ability to store excess energy has to some extent been overlooked. The benefits of the Vanadium Redox system make it an ideal static battery storage option and the intention is to ensure that Kendrick is well-placed to be a provider of vanadium in the future".

Airijoki Drilling Programme

The Airijoki 200 licence is located immediately to the northeast of the Airijoki 100 licence in which the 44.3Mt JORC Inferred Vanadium resource is estimated. Following the completion of a Magnetic Ground Survey in March 2021 over the Airijoki 200 licence, it can be deduced with a reasonable amount of confidence that the Vanadium mineralisation extends and continues to the northeast into this licence area.

A public meeting was held at the Vittangi community hall at the end of July where representatives of the Company presented the proposed drill programme to the attendees and answered all queries related to the programme.

The initial diamond drill exploration programme is based on a line spacing of 400m along strike, with a total of 10 holes and approximately ~1,500m being drilled.

The programme is expected to take around 8 weeks to complete and should this programme be successful, it is anticipated that it has the potential to significantly expand the current Vanadium resource at Airijoki.

Figure 1. is a map showing magnetic survey, JORC Inferred Resource outline and proposed location of drillholes.

Figure 2. is a cross-section showing proposed drill hole locations and traces along with interpreted magnetic anomalies being targeted.

Figure 1. Map showing magnetic survey, JORC Inferred Resource outline and proposed location of drillholes.

Figure 2. Cross-section showing proposed drill hole locations and traces along with interpreted magnetic anomalies being targeted.

Ionic Leach Soil Sampling Programme - Airijoki Vanadium

The Company has recently completed a soil geochemical sampling programme for ionic leach testing, primarily on the recently awarded (October 2022) Airijoki 104 and Airijoki 105 licences. The purpose of this programme is to investigate the mineral potential of these licences and assist with future targeting in these licences.

In general, the soil samples were collected every 100m along profiles spaced 400m apart that are to be followed up with infill soil sampling in the areas of interest. The sampling covers an area of approximately 39km² at Airijoki 104 and 22km² at Airijoki 105 licences respectively, excluding areas covered by lakes, bogs, or mires.

In total, 907 soil samples were collected and submitted to the ALS laboratory in Malå, Sweden for processing and further analysis at the ALS laboratory in Loughrea, Ireland. Once the results are made available, the data will be processed with ioGAS software and interpreted with the aim of evaluating the multi-commodity potential of the area.

Figure 3. Is a map showing Kendrick's areas under licence at Airijoki and the location of geochemical samples.

Figure 3. Map showing Kendrick's areas under licence at Airijoki and location of geochemical samples. previous results were released in March 2023.

Ionic Leach Soil Sampling Programme -Mjövattnet Ni, Cu & PGM Exploration Licence

The Company has also completed a soil geochemical sampling programme for ionic leach testing, on the recently acquired (August 2023) Mjövattnet 103 licence. The purpose of this programme is to investigate the mineral potential of this licence in the vicinity to the known Lappvattnet deposit¹ and assist with future targeting.

In general, the soil samples were collected every 50m along profiles spaced 200m apart. The sampling covers an area of approximately 5km², excluding areas covered by lakes, bogs or mires.

In total, 423 soil samples were collected and will be submitted to the ALS lab in Malå, Sweden for processing and further analysis at the ALS lab in Loughrea, Ireland.

Figure 4.is a map showing the planned location of geochemical samples at licence Mjövattnet 103.

Figure 4. Map showing the planned location of geochemical samples at licence Mjövattnet 103.

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).

For additional information please contact:

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 Airijoki Project

The Airijoki Project lies within the Vittangi Greenstone Group (VGG) of northern Sweden, in relative proximity to established infrastructure as well as several significant mines (i.e. Kiruna, Svapparvaara, Leveäniemi and Mertainen) and other new energy mineral projects (i.e. Talga Group's Vittangi graphite project).  Geologically the Project is centred on a laterally continuous, northeast trending gabbroic (locally termed diabase) intrusion which hosts vanadium-magnetite mineralisation along with lesser base metal (predominantly copper mineralisation).

Airijoki is currently supported by an Inferred Mineral Resource comprising 44.3 Mt at an in-situ grade of 0.4% V₂O₅, containing 5.9 Mt of magnetite averaging 1.7% V₂O₅ (in magnetite concentrate) for 100,800 t of contained V₂O₅ based on a 13.3% mass recovery of magnetite concentrate and a 0.7% V₂O₅ cut-off grade, on a 100% equity basis (and net attributable basis).

Subsequent Davis Tube Recovery (DTR) and low-intensity magnetic separation (LIMS) test work indicated that vanadium magnetite concentrates grading over 2% V₂O₅ and more than 65% Fe are possible at mass recoveries over 20% from the vanadium mineralisation at Airijoki.  Overall, vanadium recoveries in excess of 70% can be achieved using a relatively coarse grind size of 355 µm and using LIMS without the need for further treatment.

Conceptual studies completed in 2019 envisage that Airijoki will be developed by bulk open pit mining techniques from four open pits using standard drill and blast, load/haul and crusher feed/magnetic separation to produce a vanadium magnetite concentrate. The conceptual techno-economic studies demonstrated the Project has the potential to be financially robust.  Further metallurgical test work, extensional and infill drilling and optimisation studies are warranted at Airijoki prior to more advanced techno-economic analysis.

Vanadium

Technological advances are expected to positively influence the demand for vanadium. Principally used as an alloy in steel and aluminium production, its' ability to make materials stronger and lighter offers important benefits particularly for weight-to-strength ratio, an important consideration particularly for EVs'. Vanadium pentoxide is also an important component in REDOX flow batteries used for energy storage associated with solar and wind farms. With the projected increased use of vanadium in EV batteries, demand for the metal is expected to grow.

Mjövattnet and Njuggträskliden Licences

The Swedish Nickel Projects are located in east-central Sweden near Skelleftea, the two licences result from regional nickel exploration undertaken by the Swedish Geological survey and other state-run enterprises. Mjövattnet and Njuggträskliden became known as the "Nickel Line" and the deposits occur just outside the Skelleftea Mining District, home to Boliden AB's headquarters and smelting facility.

Regional nickel exploration became a focus of the Swedish Geological Survey ("SGU") and other state-run mining concerns in the 1970's and early 1980's, leading to the discoveries of EMX's Mjövattnet and Njuggträskliden nickel-copper-cobalt-PGE deposits along what became known as the "Nickel Line" in north central Sweden. These deposits and occurrences are located just outside of the Skellefteå Mining District, where Boliden AB has its regional headquarters and operates a smelting facility.

In the past few years, the recent emphasis on conversion to electric vehicles within the European Union and construction of a vehicle battery factory near Skellefteå has resulted in renewed interest in the Nickel Line and its nickel-copper sulfide deposits.

Notes from the Swedish Geological Company ("NSG") in 1987 state that Mjövattnet has only been partly explored and its depth potential remains unknown. Likewise, several clusters of nickel sulfide bearing boulders lie to the northeast and southeast (the Frangsmyran, Holmsvattnet, Långbacken and Vallen occurrences), the bedrock sources of which have yet to be identified.

The Njuggträskliden deposit was discovered in the early 1970's via boulder tracing, which led to the identification of several mineralised outcrops. Multiple drill defined zones of nickel sulfide mineralisation were delineated in the early 1980's, many of which were recognised as being enriched in PGE's , but only some of the collected drill core samples were analysed for PGE's.

Since being drilled by the NSG, a few smaller companies have conducted limited exploration in the area, including twinning of some of the historic drill holes and re-analysing some of the historic drill core for PGE's. However, little or no systematic exploration has taken place.

The Mjövattnet Licence hosts Syn-deformation or Feeder-style-type nickel copper mineralisation. Graphite inclusions within ultramafic cumulates, low Se/S ratios in sulphides and trace element composition indicate composition of parental magma strongly modified during ascent. Country rock comprises migmatised paragneiss with interbedded graphitic schist. Intrusive breccia, lack of compositional layering, brecciated sulphides as offset orebodies result in a complicated intrusive complex morphology.

Mjövattnet Historic drilling was completed by NSG, Outokumpu, SGU, and Blackstone Resources. Results were reported to the SGU and distributed as a part of their national drill database and is shown in Figure One shows the drill defined mineralisation on the Mjövattnet licence.

The translation of Mjövattnet is "mead water" in English, which was one of the first nickel sulfide discoveries made along the Nickel Line. Discovered in 1971, the Mjövattnet nickel sulfide deposit occurs along a structural corridor of similar mineralised bodies, including the Lappvattnet, Brannorna, and Lappbacken zones to the southwest, each of which have drill defined zones of mineralization, with the latter two also lying within the Mjövattnet Licence (Lappvattnet is currently held by a third party).

Two targets identified at Mjövattnet, at Brannorna and Mjövattnet both drill-defined along with boulder occurrences where the source of the mineralised boulders is yet to be discovered. The combination of drill defined nickel sulphide mineralisation, which remains open in multiple directions, and the upside potential near the clusters of mineralised boulders makes the Mjövattnet project particularly attractive for further exploration.

The Njuggträskliden Licence is described as an open dynamic magmatic wedge-shaped conduit featuring intrusive breccias, multiple magmatic pulses of mafic and ultramafic composition in a gabbro, pyroxenite, peridotite host lithology. Mineralisation is made up of massive and disseminated sulphide mineralisation, veinlets and breccias. As with Mjövattnet, the country rock is composed of migmatised paragneiss.

The drill defined zones of mineralisation at Njuggträskliden remain open at depth, and the NSG noted in their summary report that a 10-kilometre corridor of similar boulder clusters with nickel sulphide mineralisation remains to be explored at Njuggträskliden. These occurrences all lie within the Njuggträskliden Licence and represent considerable upside exploration potential.

  Appendix A - Glossary of Technical Terms