The information contained within this announcement is deemed by the Company to constitute inside information as stipulated under the Market Abuse Regulations (EU) No. 596/2014 which is part of UK law by virtue of the European Union (withdrawal) Act 2018. Following the publication of this announcement, this inside information is now considered to be in the public domain.

Oriole Resources PLC

 ('Oriole' or 'the Company')

Oversubscribed Placing to Raise £1.75 million, plus £20k Director Subscriptions

Oriole Resources PLC (AIM: ORR), the AIM-quoted exploration company focussed on West Africa, is pleased to announce that it has conditionally raised £1.77 million before expenses (being £1.75 million in an oversubscribed placing and £0.02 million as subscriptions by certain Directors) (together, the 'Placing') through the issue of, in aggregate, 416,470,880 new ordinary shares ('Placing Shares') at a price of 0.425 pence per share (the 'Placing Price'). The Placing Price is equal to the price of the Company's ordinary shares at close of market on 17 September 2021.

The Company already has sufficient cash reserves to complete a c.1,650 metre ('m') Phase 2 diamond drilling programme at its Bibemi gold project ('Bibemi') in Cameroon. The drill rig is already on site, with the programme scheduled to commence later this month (announcement dated 13 September 2021). The proceeds from the Placing announced today will primarily be used to support ongoing exploration at the Company's projects in Cameroon, including completion of a further 3,000m Phase 3 drill programme at Bibemi, and for ongoing work at the Company's 3,592 km² Central Licence Package, where a regional-scale mapping and stream sediment sampling programme is currently underway (announcement dated 19 August 2021). It will also provide the Company with general working capital.

Oriole Resources PLC Chairman, John McGloin, said:

"Following our successful maiden drilling programme at Bibemi, where drilling identified gold at all four initial prospects (announcement dated 29 June 2021), the Directors have been keen to follow up on this work and recently announced the imminent commencement of a planned 1,650m Phase 2 diamond drilling programme. A total of 11 holes will target a c.1 kilometre ('km') strike length at the southern end of the Bakassi Zone 1 prospect ('Bakassi Zone 1'), where maiden drilling earlier this year returned best intersections of 2.45m grading 2.96 grammes per tonne ('g/t') gold ('Au'), 3.60m grading 1.75 g/t Au and 12.40m grading 0.71 g/t Au (announcement dated 13 September 2021).

"The funds raised in this Placing will allow a further 3,000m of drilling at Bibemi, building on the success of the maiden drill programme, and will provide the working capital needed to fund the early-stage exploration work in the Group's licence package in the centre of Cameroon, where initial stream sediment sampling results have returned best results of up to 95 ppb Au (announcement dated 19 August 2021).

"The Board firmly believes the most effective route to exploration success is moving quickly to follow up encouraging results. By raising funds at this time, we will be able to make the most of the 2021-22 exploration season in Cameroon and advance the projects systematically and effectively over the coming months.

"I am pleased to report that Directors have subscribed for 4,705,881 of the Placing Shares, equating to £20,000."

Background and Reasons for the Placing and Offer

Oriole is an exploration and development company that remains focussed on the exploration of economic mineral deposits, principally gold. The Board of the Company aims to create value for shareholders using experienced partners to develop the Company's mineral portfolio.

Following the structural changes completed in 2018, good progress has been made at the Company's earn-in projects in Cameroon, as well as on the joint-venture project in Senegal. The team is working to expand its footprint in Cameroon and is meanwhile looking to realise value from Oriole's portfolio of investments and royalties.

In Cameroon, our Bibemi and Wapouzé licences are held in conjunction with our partner BEIG3, a well-respected local geological services company. Oriole has met its commitment of US$3.12 million to secure an option for 90% ownership of these licences. In addition, and in continued partnership with BEIG3, the Company has been awarded eight licences in central Cameroon, over which we have 90% beneficial ownership.

At our Bibemi licence in the north of the country, our maiden drilling programme in Q1-2021 confirmed gold at all four of the initial prospects we had identified. We are extremely encouraged by the geological potential of Bibemi. In addition to the robust results from the maiden drilling programme, including 2.45m grading 2.96 g/t Au, 3.60m grading 1.75 g/t Au and 12.40m grading 0.71 g/t Au from the Bakassi Zone 1 prospect, the earlier rock-chip sampling (up to 135.40 g/t Au) and trench sampling (9.00m grading 3.14 g/t Au) programmes, the presence of horizontally-stacked mineralised veins and the presence of visible gold at the Lawa East and Bakassi Zone 2 prospects, gives us significant confidence in the potential of the area.

With a drill rig already available on site, we have recently mobilised the team to commence drilling of a c.1,650m programme at the southern end of the Bakassi Zone 1 prospect, where initial drilling identified a c.1 km potentially continuous zone of mineralisation. This phase of drilling is expected to complete early in Q4 2021 and further drill targets have been identified within the Bakassi Zone that, subject to results from the Phase 2 programme, will be tested by way of a c.3,000m Phase 3 programme.

In addition to the work at Bibemi, through 2021 we have been engaged in an extensive package-wide stream sediment sampling campaign at our new Central Licence Package, which covers eight licences in central Cameroon. This work has been completed for the five easternmost licences, with results received for the two of those (Tenekou and Niambaram) to date. With the wet season in Cameroon now easing, the work to complete the campaign across the three remaining (westernmost) licences will restart shortly. Already the results received from Tenekou and Niambaram have given us good targets for potential follow-up work and we expect further targets to come from the outstanding sampling. Subject to results and ranking of the targets, follow-up programmes on targets defined within the Central Licence Package are likely to include more detailed (increased density) stream sediment sampling, geological mapping, rock-chip and soil sampling and potentially geophysics.

The net proceeds of the Placing, of approximately £1.68 million, will, in the opinion of the Directors, provide sufficient capital to fund:

·    further exploration work at Bibemi, including a planned c.3,000 metres of diamond drilling;

·    follow-up exploration work across the 3,592 km² Central Licence Package awarded to the Group and its Cameroonian partner early in 2021;

·    our UK Technical team that oversees and manages the Company's exploration projects;

·    funding of our general and administrative expenses, covering our management of the asset portfolio, including the administration of our interest in the Senala joint venture.

Further Details on the Placing and the Placing Agreement

The Company has conditionally raised £1.77 million before expenses (being £1,750,001.25 in an oversubscribed placing and £20,000 as subscriptions by certain Directors) through the issue of 416,470,880 new ordinary shares at the Placing Price. The Placing Price is equal to the price of the Company's ordinary shares at close of market on 17 September 2021.

The Company has entered into a Placing Agreement with Shard Capital Partners LLP ('Shard') under which Shard has agreed to use its reasonable endeavours to procure placees for the Placing Shares at the Placing Price. The Placing has not been underwritten. 

The Placing Agreement contains warranties in favour of Shard given by the Company with respect to its business and certain matters connected with the Placing. In addition, the Company has given customary indemnities to Shard in connection with the Placing and its performance of services in relation to the Placing. Shard has the right to terminate the Placing Agreement in specified circumstances.

Directors' participation in the Placing

The following Directors have subscribed for shares in the Placing as follows:

(1) David Pelham is beneficially interested in 948,105 Ordinary Shares held by Hargreaves Lansdown Nominees Limited.

(2) Tim Livesey is beneficially interested in 10,382,662 Ordinary Shares held by Hargreaves Lansdown Nominees Limited.

(3) Robert Smeeton is beneficially interested in 5,778,209 Ordinary Shares held by Hargreaves Lansdown Nominees Limited.

(4) Claire Bay is beneficially interested in 94,840 Ordinary Shares held by Halifax Share Dealing.

Further information on these dealings is included in the PDMR dealing notifications below.

The participation in the Placing by the directors, as set out in the above table, is deemed to be a related party transaction pursuant to the AIM Rules for Companies (the 'AIM Rules').

The Director independent of the participation in the Placing (being John McGloin), considers, having consulted with the Company's nominated adviser, Grant Thornton UK LLP, that the terms of the directors' participation in the Placing are fair and reasonable insofar as the Company's shareholders are concerned.

Admission and Dealings

The Placing Shares and the Offer Shares will be issued as fully paid and will rank pari passu in all respects with the existing Ordinary Shares, including the right to receive dividends and other distributions declared on or after the date on which they are issued.

Application will be made to the London Stock Exchange for the Placing Shares and Offer Shares to be admitted to trading on AIM ('Admission') at 8.00 a.m. on or around 4 October 2021.

Total Voting Rights

Following Admission, the Company's issued share capital will be 1,994,021,336 Ordinary Shares. This figure of 1,994,021,336 may be used by shareholders as the denominator for the calculations by which they will determine if they are required to notify their interest in, or a change to their interest in, the Company under the FCA's Disclosure Guidance and Transparency Rules.

** ENDS **

For further information please visit www.orioleresources.com,  @OrioleResources on Twitter, 

or contact:

Notes to Editors:

Oriole Resources PLC is an AIM-listed exploration company, focussed on West Africa. It is focused on early-stage exploration in Cameroon (Bibemi, Wapouzé and Central Licence Package projects) and the more advanced Senala gold project in Senegal, where IAMGOLD has the option to spend US$8m to earn a 70% interest. The Company has several interests and royalties in companies operating throughout Africa and Turkey that could deliver future cash flow, and it continues to assess new opportunities in both regions. 

ANNEX - PDMR notifications

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