For immediate release

9 January 2023

Xtract Resources Plc

("Xtract" or the "Company")

Third Quarter 2022 Production Update

The Board of Xtract Resources Plc ("Xtract" or the "Company") announces the preliminary unaudited results for all alluvial and hard rock mining contractors for the Manica Concession and production at Fair Bride, for the three-month period ended 30 September 2022 (the "Period").

Highlights

·    Total mining contractor gold production of 66.38Kg for the quarter, equivalent to approximately 2,134 ounces

·    Total of 11.90Kg (equivalent to approximately 382 ounces) attributable to Explorator

·    Value of Explorator share of gold produced US$651,641

·    Exploratory share of gold sales in period of 343 ounces

·    Combined attributable revenue to Explorator from gold sales and other income for the Period amounted to US$534,899

·    First mining contractor gold production from the Fair Bride deposit of 35.35Kg for the quarter, equivalent to approximately 1,136 ounces

Colin Bird, Executive Chairman said: "The alluvial and smaller hard rock deposits' performance continued generally in a similar manner to previous quarters with the hard rock being determined by the vagaries of grade and vein consistency. I am pleased to report that Fair Bride has commenced production and throughout the quarter the activities were concentrated in two areas, by developing a protocol for open pit grade control and troubleshooting the numerous issue which inevitably occur on commission of a new processing plant. We anticipate that the financial results from Fair Bride, where we have a 23 per cent. net profit share will initially be reported semi-annually."

Production summary

Preliminary unaudited results for both the alluvial and hard rock mining contractors for the Manica Concession for the three-month periods ended September 2022, 30 June 2022 ,31 March 2022, and 31 December 2021 are set out in the table below.

The Company is also pleased to report on significant progress at the recently completed plant in Manica, Mozambique.  On 21 July 2022, the Company announced that Mutapa Mining and Processing, LDA ("MMP") poured the first gold from ore that they mined at the Fair Bride concession with a total of 35.35Kg production in the third quarter of 2023. Plant commissioning continued throughout the quarter with progressive improvements in throughput. The Company remains very confident for a positive 2023 as the operation matures and stabilises.

In addition to the information included in the table, the notes below provide a further breakdown of costs between operational costs, production tax and land resettlement costs. The table includes the unaudited financial results from the alluvial as well as the hard rock operations (other than Fair Bride hard rock operation in which Xtract has a 23 per cent. net profit share and which it is anticipated will initially be reported semi-annually).

Notes:

Note 1:    

*Licence 3990C Mining Concession (Alluvial & hard rock), Manica Province.

**Licence 7569L Mining Concession (Alluvial), Manica Province.

Note 2:

Note 3:

Note 4:

Note 5:      Calculation based on the number of ounces produced during each month of the quarter multiplied by  the closing month end spot rate. 

Note 6:      Direct operational production costs include and not limited to Explorator salaries, rent, vehicles expenses and utilities for both alluvial and hard rock operations.

Note 7:      Total costs comprises direct operational production costs plus total Production Tax and Land Resettlement Costs as detailed below:

Note 8:

Note 9:     Alluvial deposits are the natural concentration of heavy minerals caused by the effect of gravity on moving particles. Various natural actions known as weathering can and did dislodge gold from its hard rock containment. Once the gold is liberated it migrates by gravity and water flow into larger or subsidiary streams. The net effect of this migration into streams is concentration of the gold into gold ore bodies. Presence of gold in alluvial deposits is unpredictable and therefore operational results will vary month-to-month.

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

This announcement contains inside information for the purposes of Article 7 of EU Regulation 596/2014 as it forms part of UK domestic law by virtue of the European Union (Withdrawal) Act 2018.The person who arranged for the release of this announcement on behalf of the Company was Joel Silberstein, Director.

Enquiries:

ENDS