For immediate release

4 August 2022

Xtract Resources Plc

("Xtract" or the "Company")

Bushranger Project Completion of Phase Two Drilling

The Board of Xtract Resources Plc ("Xtract" or the "Company") is pleased to report that the Phase Two drilling programme at the Bushranger copper-gold exploration project has now completed.

Highlights

·   Drill hole BRDD-21-055 has now completed signifying the completion of the Phase Two drilling programme at the Bushranger Copper-Gold Exploration Project

·  Hole BRDD-22-055 was drilled at the Ascot Prospect and designed to test for the extension of mineralisation beneath the discovery hole (BRDD-21-035) at depth

·   Subject to laboratory assays, the mineralisation styles intersected were of a similar nature to those intersected in drill hole BRDD-21-035, and offer potential to extend mineralisation with a high copper and gold tenor by up to 100m at depth  

·    Six further exploratory drill holes, BRDD-22-047 through to BRDD-22-052, have been completed at the Ascot Prospect, which tested the ground between Ascot and Racecourse, the southern extents of Ascot, and further defined the structure and extent of mineralisation in the central mineralised zone surrounding the discovery hole, BRDD-21-035 (refer to RNS dated 20 Jan 2022)

·    Subject to laboratory assays, all holes have intersected extensive zones of altered volcanics with trace, to locally weak to strong porphyry-related mineralisation throughout, and once all assays are received, the company intends to complete a maiden resource for the Ascot Prospect

·    A Phase Three drilling programme is under consideration, with aims to;

o  define the shallow, high-grade crown in the centre of the Racecourse Prospect;

o  identify the extents of the Ascot Prospect;

o  target the higher-grade gold intersections at both prospects, especially at shallower depths;

o  drill test satellite IP/geochemical anomalies

Colin Bird, Executive Chairman said: "The Phase Two programme has been completed in terms of drilling, MIMDAS geophysical surveying and metallurgical testwork, and all of these activities have been summarised in formal technical reports by the independent contractors. The process has been exhaustive, producing a very firm platform for project evaluation and on-going decision making.

The programme has been hugely successful in that almost every drill hole has intersected mineralisation in one form or another at varying depths and widths, demonstrating that both Racecourse & Ascot are prolific in mineralisation. I look forward to a complete formal summarisation of all the information generated by Phase Two and informing the market of our on-going strategy." 

Completion of Phase Two Drilling

The final drill hole, BRDD-22-055 has completed, signifying the end to the Phase Two programme of drilling at Bushranger. A deep drillhole, BRDD-22-055 was designed to test for the extension of mineralisation at depth below the discovery hole at Ascot (drill hole BRDD-21-035). The hole was drilled at an inclination of -80 degrees towards the east, completing at a final depth of 721.5m, where BRDD-21-035 was drilled sub-optimally towards the west.

Based on logging and subject to laboratory assays, the mineralisation styles interested in BRDD-22-055 were of a similar nature to those observed in drill hole BRDD-21-035 (refer to RNS dated 20 January 2022) and offer the potential to extend this mineralisation by up to 100m at depth in an area with potentially high copper and gold return.  

Six further exploratory drill holes have also been completed at the Ascot prospect, BRDD-22-047 through to BRDD-22-052, assays are still awaited, with results briefly discussed below.

Drill holes BRDD-22-047 and BRDD-22-048 were both drilled at an inclination of -60 degrees towards the northeast along the same line in the area between Racecourse and Ascot. Drill hole BRDD-22-047 completed at a final depth of 714.6m with drill hole BRDD-22-048 completing at a final depth of 969.6m. Subject to laboratory assays, both drill holes intersected several zones of altered volcanics with trace mineralisation, with BRDD-22-047 also intersecting some weak and locally moderate mineralisation from: 282-297m; 353-394m; and 527-532m. 

Drill hole BRDD-22-049 was drilled towards the east at the southern extent of the currently defined Ascot mineralisation and completed at a final depth of 877m. Subject to laboratory assays, the hole intersected altered sediments and volcanics with zones of weak to locally strong porphyry related mineralisation throughout from 386m downhole depth to 862m downhole depth.

Drill holes BRDD-22-050 and BRDD-22-051 were drilled to the west from the same drill pad as the Ascot discovery hole BRDD-21-035 (refer RNS dated 20 Jan 2022). Both holes were drilled at the same azimuth, with drill hole BRDD-22-050 drilled at a steeper inclination of -80 degrees to a final depth of 673.7m, and drill hole BRDD-22-051 drilled at a shallower angle of -50 degrees to a final depth of 555.3m. BRDD-22-050 was planned to test a strong IP anomaly to the east of the mineralisation intersected in BRDD-21-035; while BRDD-22-051 was drilled above BRDD-21-035 to test the shallower extents of the mineralisation intersected in the Ascot discovery hole. BRDD-22-050 intersected mainly traces of mineralisation with a zone of weak mineralisation from 344-358m. BRDD-22-051 also intersected mainly traces of mineralisation with a zone of weak to moderate mineralisation from 433-450m.

Drill hole BRDD-22-052 was drilled towards the east at an inclination of -55 degrees, across the Ascot discovery hole, BRDD-22-035, and completed at a depth of 704.5m. The aim of BRDD-22-052 was to test the depth extent of the two shallower mineralised zones in BRDD-21-035. Subject to laboratory assays, altered volcanics and trace mineralisation was intersected throughout, along with locally weak to moderate zones of mineralisation at between the depths of 112m and 664m.

Resource Modelling & Phase Three Drill Planning

Following the successful completion of the Phase Two drilling Programme at Bushranger, the Company will now take some time to reflect on the results of the programme as the upgraded resource model for Racecourse is completed and a maiden resource model for Ascot achieved.

Given the discovery of significant intervals of copper and gold mineralisation both at the new Ascot discovery and Racecourse, the company intend to plan a Phase Three drilling programme which will focus on in-fill and upgrade drilling of the current known resources; resource extension drilling; and testing of further IP/geochemical anomalies outside the Ascot and Racecourse prospects.

Bushranger Prospect Drill Hole Location Plan

http://www.rns-pdf.londonstockexchange.com/rns/9166U_1-2022-8-4.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