Red Rock Resources PLC

("Red Rock" or the "Company")

Share Exchange Agreement on Australian Assets

Grant of New Licence in Victoria

Results From Soil Sampling Programme

 Testing of Multiple Strike Extensions by Drilling to Begin in December 2021

7 December 2021

Red Rock Resources Plc ("Red Rock" or "the Company"), the natural resource development company with interests in gold, manganese and copper, announces an exploration update, further to that of 16 September 2021, from its joint venture subsidiary Red Rock Australasia Pty Ltd ("RRAL") which is undertaking gold exploration at its granted licences in the Victoria Goldfields in Australia.

Highlights

·    Red Rock exchanges shares in RRAL for 50.1% of newly formed New Ballarat Gold Corporation PLC -  a UK public company which now owns 100% of RRAL and will be the vehicle for a possible listing in London.

·    Grant of new 164 km² exploration licence EL007328 in Victoria, Australia, with 8 licences now granted covering 1,012 km².

·    1091 soil samples tested by Portable X-ray Fluorescence (pXRF) significantly confirm regional correlation of arsenic anomalism with gold workings and gold-bearing structures 

·    Identification of wide North-South anomaly continuing North of Buninyong with 1 km length, and parallel 400m structure 

·    South of Buninyong at O'Loughlins, a diamond drill programme on 1 km long structures planned to begin in December.

·    Advanced planning for drill programme at Pitfield early in new year, with further target identified for potential February drilling

http://www.rns-pdf.londonstockexchange.com/rns/8354U_1-2021-12-7.pdf

Map 1: Arsenic in Soils - Buninyong EL007271. Large anomaly to SE is O'Loughlins prospect, S and central is previously defined Monmouth prospect

Red Rock Chairman comments: "With the completion of the share exchange agreements at RRAL, Red Rock and Power Metal Resources PLC become the initial shareholders of New Ballarat Gold Corporation PLC ("NBGC"). The Company continues to hold a 50.1% economic interest in the Victoria gold project, as RRAL now becomes the 100% owned subsidiary of NBGC. The new structure will enable the project to advance more quickly, access outside capital more easily, including through a planned separate listing, and act more independently. We have confidence in the professional team now in place out in Ballarat, who continue to do excellent work on the ground."  

NBGC Director and CEO Dave Holden comments: "We thank our shareholders for the confidence they continue to show in us as we move ahead under our new corporate banner.

Now that we have tested the 1091 soil samples we took in the three tenements south and west of the Ballarat Mine we believe we have confirmed the importance of arsenic anomalism as a pathfinder for gold and gold-bearing structures in this region. We have seen a good correlation with known gold structures we were already exploring, and have been able to identify a number of strike extensions, including a significant northern extension of the trend passing through Mt Buninyong. The information we continue to derive from this programme assists our drill targeting and could be important as we seek out economically significant orebodies.

Our exploration work to date, mapping and creating 3-D models in and around the historical workings, searching in the archives, entering and tracking old workings, and conducting focused geochemistry, has enabled us to move very rapidly to the drilling phase on some excellent targets, starting we anticipate in the middle of this month.

Progress in granting of our remaining licence applications continues. The newly granted EL007328 lies south and south east of Ballarat, is adjacent to two of our key granted licences, and contains a southern extension of one of the mineralised trends we are currently preparing to drill.

December and January look set to be active and important months for NBGC, only briefly interrupted by Christmas." 

Soil Sampling Programme

Interim results from the ongoing the soil sampling programme south of Ballarat has continued to identify further extensions of linear trends in potential gold bearing structures reflected in arsenic values in soils.  Given the known association, NBGC has focused on defining anomalism away from and along strike from known mineralization and has been rewarded with positive results in the latest soil sampling programme.

Preliminary interpretation has identified anomalism that have previously not been targeted within all licenses. This anomalism appears to correlate along strike with known historical workings or exploration successes.

1,091 samples have been collected and analyzed using pXRF techniques.

Rock chip samples taken from these historical workings are also currently in analysis and will provide further reference points to support the latest results.  Infill sampling soil sampling will continue focused on the anomalous (greater the 3 standard deviations normalised data) results in the coming weeks as the region moves into the drier Summer period.

pXRF techniques

The proposition tested is that the pXRF, though limited in its penetration of the soil partial analyzed (and thus  more likely to represent the surficial elements on the grain rather than the composition of the grain itself), will provide a low-level detection that may highlight any anomalous metal migration laterally or vertically through the surface soils and could be indicative of mineralisation beneath or adjacent to the anomalous area.  This is a broadly similar concept to MMI (mobile metal ion) analytical work.   

The following sampling and subsequent data manipulation methodology was adopted.

1.     Samples were collected immediately below the surface top soil and sieved. This produced a more homogenous sample for testing with organic fragments removed.

2.     Samples were place in plastic chip trays for storage and analyzed using pXRF in an offsite office. The office allowed for a more constant temperature and humidity than in the field - samples were given time to air dry before analysis.

3.     During the analysis blanks were inserted on a regular basis to identify any drift developing in the instrument over time.

4.     Data was standardized.  Standardization allowed direct comparisons of the historical data with the recently collected soil survey data and compilation into one homogeneous dataset.  The relative value is considered a more meaningful dataset than the raw ppm value. 

5.     To minimize the overprint of obvious contamination obscuring the potentially bed rock data, samples identified as external contamination were removed.

6.        To aid graphic representation when developing contours anything above three standard deviations was considered as highly anomalous and a top cut of three SD was applied. This process allowed a more readily interpretative contour of the data.

Discussion of Results

Preliminary evaluation for the pXRF analytical data has identified coherent anomalism from arsenic.  Investigation into the possibility of other elements is ongoing and further correlation between the current anomalies and mineralised zones is under investigation.

Table of raw data with actual arsenic record, and statistical parameters

EL7271, Buninyong

Key takeaways: exciting new 1 km  N-S structures identified in North, following soil sampling, as addition to: previously identified and sampled structures in S-E around O'Loughlins (December 2021 drill target, 2-3 parallel N-S structures, up to 1 km and 0.4km identified, historically mined (no recorded grades yet identified), and SW target; possible Eastern target needs exploration

The soils sampling has identified anomalism relating to a line of mineralisation extending north from Mt Buninyong. The latest sampling highlights the definite break in mineralisation between Buninyong North and the southern prospect areas. There is an inferred southwest oriented cross fault from the Mt Buninyong which may be truncating mineralisation at the southern end of the Ballarat East line of workings and is thought to show sinistral strike slip. Termination of the Mt Buninyong soil arsenic anomaly and the lateral shift would suggest the weak easternmost anomalism immediately to the east of Mt Buninyong may be the continuation of the central Buninyong line of workings.  This further reinforces the concept that the Scotsburn workings (extending from just south-southeast of Buninyong down to O'Laughlins) is the continuation of the main Ballarat East line currently being mined underground (at the Ballarat Mine owned by Shen Yao Holdings).  

Follow up sampling will continue over the cluster of workings central to the licence area where access can be arranged.  Sampling will also occur around the sporadic high grade values seen to the west of the main Scotsburn range.  There is growing evidence of a fourth structure to the far east of the tenement extending south adjacent to EL007505.   

To the west, low-level anomalism identified within EL007281 during a previous programme is to be included in future sampling.

EL7301, Pitfield

Key takeaways: strong target around Mt Bute in N confirmed, and drilling planned for around January 2022, no historic grades identified; new previously unexplored targets generated in S; further sampling required.

http://www.rns-pdf.londonstockexchange.com/rns/8354U_2-2021-12-7.pdf

Map 2: Arsenic values from pXRF sampling, Pitfield EL007301. Mt Bute target in N of license

Samples collected predominantly alone east-west lines has provided approximate boundaries to the known mineralisation at Mt Bute.  To the south strong results to the lower west margin of the tenement and the southeast is in areas not previously explored.  Additional sampling is required to further constrain the anomalism and from this vector in on potential drill targets. This initial result is highly encouraging that mineralising continues a broad north south trend throughout the tenement.

The area is presumed to be in part overlain by recent volcanic rocks and this may be the first indication that the pXRF sampling technique can assist in exploring for mineralisation under cover.

EL7327, Dereel

Key takeaways: southern extension to the high grade historic Golden Reefs/Dereel mine shown as anomalous; area targeted for early 2022 drilling; anomalism also highlights previously unidentified prospects within license, requiring further sampling.

http://www.rns-pdf.londonstockexchange.com/rns/8354U_3-2021-12-7.pdf

Map 3: Arsenic values from pXRF sampling, Dereel EL007327

Initial results from Dereel highlight the southern extension to the Golden Reefs/ Dereel Mine.  This mine was active sporadically from 1909-1937 producing of 2,735 t grading 15.7 g/t Au. Workings extended down to approximately 80 m.  Field observations at the surface exposure of the reef identified primarily a laminated quartz vein and surface expression including additional historical shafts to the north suggest up to 500 metres of strike to the reef system.

Subject to finalising land access agreements, the Company has intentions to drill down dip and along strike early in 2022.

The soil sampling has also identified a strong arsenic anomaly on the north-western margin of the tenement. There is no historical information identifying any mining in this area,  and offers the prospect of a previously unidentified zone. Follow up sampling is proposed early in the new year.

Similarly lower tenor anomalism in the far south west lines up with the strong response  recognised over the Long Thought Of mine workings. This is inferred to be southern extensions to the Berringa gold field and remains largely untested.

New Ballarat Gold Corporation PLC 

NBGC is a privately owned joint venture company owned as to 50.1% by Red Rock and as to 49.9% by Power Metals Resources PLC (AIM:POW). 

NBGC holds a strong land position of 1,012 sq km in the rich gold fields of Victoria, Australia, principally around the mining centre of Ballarat, as the result of a focused exploration strategy targeting high grade quartz hosted gold veins systems in a region where the exploration models and targets are well understood. The company has carefully assembled its portfolio of properties comprising a broad range from robust exploration targets to near term resource potential, all of which remain largely undeveloped by modern explorers.

With the first tenements granted only in 2021 NBGC is already at a stage of discovery where it has been able to define 3 promising gold prospects for diamond drilling in Q4 2021/Q1 2022. Still able to actively operate in the current global pandemic, the company has exploration geologists and field crews active in the field. This is coupled with a technical team holding an in-depth knowledge of Victorian geology including extensive underground experience gained from working in currently operating mines in the area.

Granted Licenses

These licences cover high priority areas where NBGC has early drill targets and in which exploration has already started.

Applications

RRAL has applications in process for eight other new gold exploration licence areas covering approximately 2,057 km² in the Victoria Goldfields of Australia as follows:

* Balmaine Gold Pty Ltd, Mercator Gold Australia Pty Ltd, and Loddon Gold Pty Ltd have put in competing applications the same day as RRAL for the ground covered by EL007540. The application considered to have greatest merit will eventually be given priority.

The following applications have been made in Western Australia, covering largely areas previously held by the Company at the time of its original listing. The two where there is another applicant will be subject to a ballot.

The technical information relating to exploration in this report is compiled by David Holden, BSc, MBA, MEM, who is a member of the Australian Institute of Geoscientists. Mr Holden has experience in the style of mineralisation and type of deposit under consideration. Mr Holden is the Exploration Director of RRAL.

This announcement contains inside information for the purposes of Article 7 of the Market Abuse Regulation (EU) 596/2014 as it forms part of UK domestic law by virtue of the European Union (Withdrawal) Act 2018 ("MAR"), and is disclosed in accordance with the Company's obligations under Article 17 of MAR.

For further information, please contact:

Andrew Bell 0207 747 9990                                                          Chairman Red Rock Resources Plc

Roland Cornish/ Rosalind Hill Abrahams 0207 628 3396       NOMAD Beaumont Cornish Limited

Jason Robertson 020 7374 2212                                                  Broker First Equity Limited

GLOSSARY 

MMI                             Mobile Metal Ions are ions released into solution from soil samples by the action of extractants, and geochemical analysis can be used on them to identify possibly deeply buried mineral deposits

ppm                             parts per million

X-ray Fluorescence    The emission of secondary X-rays from a material that has been excited by being bombarded with high-energy X-rays, used for elemental analysis in geochemistry