Bushranger Project drilling update

For immediate release

2 March 2022

Xtract Resources Plc

("Xtract" or the "Company")

Bushranger Project Drilling Update

The Board of Xtract Resources Plc ("Xtract" or the "Company") is pleased to report on further work completed in the area inclusive of the southern extension of Racecourse and the Ascot prospects on the Bushranger copper-gold porphyry exploration project.

Highlights

·    Seven further exploratory drill holes have been completed on the project, which were all located in the southern area between the Racecourse and Ascot prospects

·    Initial core logging suggests that the Ascot mineralised zone extends for at least 300m along strike

·    Drill holes BRDD-21-038, BRDD-21-039 & BRDD-21-040 were designed to test for northerly and southerly extensions of Ascot. All three holes intersected porphyritic intrusives and strongly altered volcanics, with multiple intervals of weak to locally moderate chalcopyrite mineralisation, including some stronger zones in BRDD-21-038, located 200m south of the Ascot discovery hole

·    Drill holes BRDD-21-041, BRDD-21-042 & BRDD-21-043 were angled towards the west into the southern extension of Racecourse, all holes intersected porphyritic intrusives and strongly altered volcanics, with wide zones of visible weak to locally moderate chalcopyrite, including several sub-intervals of stronger mineralisation, all with the potential to extend the Racecourse mineralisation to the south

·    Drill hole BRDD-21-037, planned to test a separate resistivity target some distance to the east of Racecourse, appears to have drilled the outer perimeter of the deposit, with relatively weak alteration and copper mineralisation

·    Structural information suggests that the Racecourse porphyry swings towards a southerly strike direction as it moves towards the south and follow-up holes will be collared from drill pads located further to the west, for which approval is expected shortly from the NSW authorities 

Colin Bird, Executive Chairman said: "The drilling speeds and operations at site are progressing very satisfactory with a lot of core being generated, and geological logging results being vital to future decisions, the suite of holes in this RNS are all assisting our knowledge of the ore bodies and their disposition. We continue to amass good intersections whilst testing the perimeters, which is necessary for final modelling.

The current geophysics together with this information, and once granted, the new drill pads will allow us to efficiently target and move toward our stated objectives. The results continue to give us confidence in the conceptual open pit at Racecourse and the potential of the Ascot discovery."

Bushranger Drilling Update

Seven further drill holes have been completed on the Bushranger copper-gold exploration project. The holes have all been concentrated to the south of Racecourse, with a focus on developing the new Ascot discovery and finding mineralised trends in the area between Racecourse and Ascot.

Drill hole BRDD-21-037 was drilled to the east of Racecourse, targeting an IP resistivity anomaly on the eastern perimeter of the Racecourse deposit. The hole was drilled at -50 degrees to the east and completed at a final depth of 400.3m. Some intrusive volcanics were intersected, along with traces of chalcopyrite.

Drill holes BRDD-21-038 and BRDD-21-039 were drilled from the same drill pad 200m to the south of the discovery hole at Ascot. Both holes were drilled towards the west, with drill hole 38 drilled at -50 degrees and completing at a final depth of 659.6m, and drill hole 39 drilled at a steeper angle of -65 degrees and completing at a final depth of 664.1m. Both holes intersected variously altered intrusive volcanics, with evidence of disseminated and vein-hosted chalcopyrite from 69m depth and 45m depth to the end of hole depth respectively. Logging of BRDD-21-038 in particular, located 200m south of the Ascot discovery hole, recorded intervals of stronger copper mineralisation.

Drill hole BRDD-21-040 was drilled from the same drill pad as the Ascot discovery hole, but angled slightly more towards the NW, with the intention of extending the Ascot mineralisation by approximately 100m along strike to the north. The hole was drilled at -40 degrees towards the northwest and completed at a final depth of 777.2m having intersected intervals of intrusive volcanics and chalcopyrite mineralisation from 36m depth to 760m depth.

Based on preliminary logging, and subject to laboratory assays, all three of these drill holes drilled to test for extensions of mineralisation north and south from Ascot have delivered intersections of visible chalcopyrite mineralisation which has the potential to extend the Ascot mineralisation along strike by up to 300m. 

Drill hole BRDD-21-041, drilled at a shallower angle from the same pad as drill hole BRDD-21-032 (see announcement dated 17^th December 2021), the hole aimed to test for potential mineralisation above drill hole 32, which intersected significant lengths of porphyritic alteration. The hole was drilled at -55 degrees to the WSW, and completed at a depth of 691.9m. The hole intersected strongly altered volcanics with intervals of weak to moderate chalcopyrite mineralisation from 135m to 631m depth, suggesting that stronger mineralisation could be situated further to the west.

Drill holes BRDD-21-042 & BRDD-21-043 were drilled from the same drill pad above previous hole BRDD-21-027 (see announcement dated 19^th November 2021) beyond the southern extents of the Racecourse Inferred Mineral Resource. Both drill holes were drilled towards the west at angles of -55 degrees and -65 degrees respectively and completed at depths of 653.6m and 750.7m. Both holes intersected strongly altered volcanics with inclusions of intrusive volcanics and weak to moderate zones of chalcopyrite mineralisation which have the potential to extend the Racecourse mineralisation further south.

All of this follow-up drilling was originally sited to test historical IP anomalies, however recent modelling suggests that the Racecourse mineralisation swings towards a southerly strike in this southern area and therefore the location of these recent drill holes may have been sub-optimal to define extensions of the Racecourse mineralisation towards the south. The approval of new drill pad locations is currently being processed and a positive outcome is expected shortly.  

http://www.rns-pdf.londonstockexchange.com/rns/2991D_1-2022-3-2.pdf

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