Bushranger Phase 2 Drilling Programme Update

For immediate release

20 October 2021

Xtract Resources Plc

("Xtract" or the "Company")

Bushranger Project Phase 2 Drilling Programme Update

The Board of Xtract Resources Plc ("Xtract" or the "Company") is pleased to provide an update on the continued progress on the Racecourse prospect Phase 2 drilling programme, with the completion of drill holes BRDD-21-020 and BRDD-21-021 on the Bushranger copper-gold exploration project, located in the Lachlan Fold Belt ("LFB") of New South Wales, Australia.

Highlights

·    Both drillholes BRDD-21-020 and BRDD-21-021 intersected wide zones of visible copper porphyry associated mineralisation

·    Drillhole BRDD-21-020 intersected a 274m zone of visible copper mineralisation from a downhole depth of 352m, including an 88m zone of stronger visible copper mineralisation from 430m down hole depth, confirming the continuation of the Racecourse Inferred Mineral Resource to the northwest, given that the copper mineralisation is still open in that direction

·    Hole BRDD-21-021 was drilled underneath and down dip of hole BRDD-21-008, the best hole drilled on the project to date (as previously announced on 28 September 2021), intersecting a 340m interval of copper mineralisation from 205m down hole depth, including three zones of stronger copper mineralisation of 14m from 218m down hole depth, 61m from 251m down hole depth and 89m from 331m downhole depth

Colin Bird, Executive Chairman Said: "The objective of drill hole BRDD-21-020 was to test the potential extension of the existing Racecourse Inferred Mineral Resource to the northwest and we have intersected a thick interval of copper mineralisation demonstrating that the copper mineralisation does in fact continue to the northwest beyond the current limits of the Mineral Resource.  Drill hole BRDD-21-021 was drilled in the centre of the resource to follow up the best intersection on the project to date, in hole BRDD-21-008, and again produced a very good intersection of 340m of visible mineralisation in the central portion. As we progress with the Racecourse Phase 2 drilling programme, we are increasing our understanding of the overall shape of the mineralisation and the orientation of the higher-grade zones. The next series of drill holes are advancing well with hole BRDD-21-22 designed to test the plunge of the mineralisation after intersecting the higher-grade crown at the top of the deposit."

Bushranger Phase Two Drilling Update

Drill hole BRDD-21-020 was drilled from the same drill pad as hole BRDD-21-018 and was designed to test for extensions of the known copper mineralisation along-strike to the northwest and at depth. Both BRDD-21-018 and BRDD-21-020 sit outside of the currently estimated Racecourse Inferred Mineral Resource and were planned to test a coincident Induced Polarisation resistivity-low and chargeability-high anomaly, which was interpreted to be due to more intense copper mineralisation.

Drill hole BRDD-21-020 was drilled at an inclination of -60 degrees to the east-north-east and was completed at a final depth of 768.4m.  The hole intersected a 274m zone of visible copper mineralisation from a downhole depth of 352m, including an 88m zone of stronger visible copper mineralisation from 430m down hole depth, which appears to explain the resistivity low anomaly. This intersection provides significant potential to extend the currently estimated Racecourse Inferred Mineral Resource to the northwest where the mineralisation is still open, and additional drilling will be required to fully test the mineralization in this direction.

Hole BRDD-21-021 was drilled at an inclination of -55 degrees towards the east and was completed at a final depth of 686.1m. The hole was drilled from the same drill pad as hole BRDD-21-008 and was designed to test for both down-dip and along-strike continuation of the copper mineralisation intersected in hole BRDD-21-008, with the objective of extending the currently estimated Racecourse Inferred Resource model to depth. Drillhole BRDD-21-008 returned the best intercept recorded to date in the Xtract drilling programme of 184m at 0.51% CuEq from 204m (as previously announced on 28 September 2021).   BRDD-21-021 intersected a 340m interval of copper mineralisation from 205m down hole depth, including three zones of stronger copper mineralisation of 14m from 218m down hole depth, 61m from 251m down hole depth and 89m from 331m downhole depth.

Bushranger Prospect Drill Hole Location Plan

A map showing the location of drill holes BRDD-21-020 and BRDD-21-021 was included by web-link in the announcement dated 7 October 2021.  

Racecourse Prospect Geological Cross Section for Drill Holes BRDD-21-018 and BRDD-21-020

http://www.rns-pdf.londonstockexchange.com/rns/7047P_1-2021-10-20.pdf

Racecourse Prospect Geological Cross Section for Drill Holes BRDD-21-021

http://www.rns-pdf.londonstockexchange.com/rns/7047P_2-2021-10-20.pdf

Phase Two Drilling Programme at the Racecourse Mineral Resource - Background

The Bushranger porphyry copper-gold project is located in the highly prospective Lachlan Fold Belt ("LFB") of New South Wales, Australia. The current JORC (2012)-compliant Inferred Mineral Resource on the Racecourse deposit is estimated as 71Mt @ 0.44% Cu and 0.064g/t Au, at a 0.3% Cu cut-off, without inclusion of data from the Phase 1 drilling programme which was recently concluded and reported.

The Phase 2 drilling programme is designed to follow up on the very encouraging results obtained from Phase 1 and historical drill results recorded by Anglo American Exploration Australia Pty Ltd ("Anglo") in 2014 and 2015.   A total of approximately 8,000m of drilling is planned in the first block of 13 holes using two drill rigs.

Further information is available from the Company's website which details the company's project portfolio as well as a copy of this announcement: www.xtractresources.com

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 as it forms part of UK Domestic Law by virtue of the European Union (Withdrawal) Act 2018 ("UK MAR").

The person who arranged for the release of this announcement on behalf of the Company was Colin Bird, Director.

Enquiries:

Qualified Person:

Information in this announcement relating to the exploration works has been reviewed by Edward (Ed) Slowey, BSc, PGeo, a consultant to Xtract. Mr Slowey is a graduate geologist with more than 40 years' relevant experience in mineral exploration and mining, a founder member of the Institute of Geologists of Ireland and is a Qualified Person under the AIM rules.  Mr Slowey has reviewed and approved the geological content of this announcement.

Qualified Person:

In accordance with AIM Note for Mining and Oil & Gas Companies, June 2009 ("Guidance Note"), Colin Bird, CC.ENG, FIMMM, South African and UK Certified Mine Manager and Director of Xtract Resources plc, with more than 40 years' experience mainly in hard rock mining, is the qualified person as defined in the Guidance Note of the London Stock Exchange, who has reviewed the technical information contained in this press release.

TECHNICAL GLOSSARY

The following is a summary of technical terms:

ENDS