Drill Programme to Restart at Orom-Cross Project

Date: 04 May 2020                                           Blencowe Resources Plc

("Blencowe" or the "Company")

Maiden JORC Resource Drilling Program to Restart at Orom-Cross Project

The Company is pleased to provide an update to the comprehensive 2020 JORC Resource diamond drilling program that initially commenced on its Orom-Cross graphite project in Northern Uganda in Q1 2020.  In anticipation of a successful acquisition of the project Blencowe initiated a ~1,800 meter diamond drill infill program in March, which was halted due to Covid lockdowns in Uganda from beginning April.  With safety of its staff and associated contractors as the priority Blencowe shut down operations at Orom-Cross pending a shift in Government policy.  There is anticipated easing of these restrictions hence drilling will recommence shortly with the aim of completing all holes in approximately one month.

Background

Orom-Cross is a potential world class graphite project both by size and end-product quality, with a large component of high value large flake product. A 21-year Mining Licence was issued by the Ugandan Government in 2019, following extensive historical work on the deposit.

Orom-Cross presents as a large, shallow open pitable mine, with a resource estimated in excess of 3 billion tonnes of graphite. Development of the resource is expected to benefit from a low strip ratio and free dig operations, thereby providing lower operating and capital costs. Coupled with the predominantly Jumbo, X-Large and Large flake sizes of the deposit, the Company expects Orom-Cross to provide significant margins on production.

Highlights

A summary of the 2020 work program to date is as follows:

·    A Lidar survey has been completed over lease areas providing high quality topographical data which is critical for future mine planning and design.

·    Exploration camp was established on-site in early Q1 2020.

·    Drilling commenced on the 1800m (59 hole) JORC Resource program in March.

·    Currently 25% of the drilling program has been completed prior to Uganda going into Coronavirus lockdown. To-date visible results have been highly encouraging and in line with management's understanding.

·    Drill rigs remain on site ready to resume the remainder of the program as soon as the Ugandan Government relaxes lockdown measures (anticipated on or around 9 May 2020). No cases of Covid-19 have been reported at Orom-Cross or in the surrounding area.

·    Compensation Agreements with local landholders were agreed and signed in Q1 2020, providing financial support to local communities as Orom-Cross develops into a producing mine. No further compensation payments are due to be made until the mine is ready to commence production.

·    Favourable initial meetings with Ugandan Government officials were held in March on critical infrastructure assistance.

Details of JORC Resource Drilling Program

Under the Phase 5 exploration program commissioned by Blencowe Resources, a diamond drilling exercise consisting of 1800m of triple core HQ commenced in March to define a JORC (2012) Indicated Resource. The area targeted for the drilling was identified following detailed drilling, trenching and mapping in previous exploration campaigns. The current drill program is designed to delineate approximately 8 to 10 million tonnes to JORC standard, to provide the initial resource for 10 years of mining, being a rate of ~800Kt per annum input into the plant. The area targeted represents less than 1% of the total Orom-Cross graphite deposit. Not only does this highlight the extraordinary size of the Orom-Cross project, but the potential significant scalability of development in the future.

This current drill program in part of the northern area, which has also been identified as attractive for a potential plant and associated infrastructure, is designed to confirm both the extent and quality of the free dig material in the upper 30m.

The program consists of 59 holes, of which 15 holes have already been completed (Figure 2), targeting the first 30m of the deposit (total deposit from surface to depths of 60 -100m) and will be sampled and logged onsite, with certified assay labs in Tanzania and South Africa thereafter undertaking assaying and specific gravity measurements.

[Please refer to the pdf file attached figures 1-3 that provides detailed pictures of the drilling programme]

http://www.rns-pdf.londonstockexchange.com/rns/8032L_1-2020-5-4.pdf

As part of the Company's policy of supporting local Ugandan business, the drilling contract was awarded to a local firm, ADT, who had previously undertaken drilling on the deposit and thus have considerable experience at Orom-Cross. Supervision of the drill program and generation of the JORC Resource reports has been awarded to Minrom Consultants from South Africa, the technical consultancy firm who also has extensive knowledge of the project, having managed the initial exploration programs for the previous owners of the project over the past six years.

ADT also have extensive experience in Uganda as both mining contractors and in logistics, thereby making them an ideal long term partner for Blencowe as it develops Orom-Cross towards first production.

The current lockdown in Uganda is expected to be lifted shortly to enable drilling to resume as soon as practicably possible thereafter. Two drill rigs currently on-site will be utilised with the program expected to be completed in the first week of June, and the subsequent JORC Resource expected in Q3 2020.

Blencowe's management team visited both South Africa and Uganda in March to assess all work programs underway to ensure that contractors are delivering to their best capabilities and that all objectives are being met.  During this visit key meetings were held with local dignitaries on site at Orom-Cross in order to explain the current ownership changes for the project as well as Blencowe's ambition for Orom-Cross to become a notable graphite producing mine over the next few years.  These meetings were successful and there is considerable local support at all levels.

At the same time management were privileged to meet senior Members of Parliament representing the Orom-Cross area to discuss goals, plans and strategies for the project.  All parties are aligned in their desire to see this project develop and offers of support to Blencowe from these officials for key areas of infrastructure required to assist with this development were discussed. Blencowe greatly appreciates all support it is currently receiving within country as it advances Orom-Cross.

Cameron Pearce Executive Chairman's commented;

"In anticipation of completing the deal to acquire Orom-Cross, and being aware for the need to move forward as quickly as possible with further critical work required to substantially advance this project, Blencowe has hit the ground running fast. This means that any delays due to Covid-19 lockdowns will not substantially impact progress as work is already underway in all key areas, with several workstreams continuing and others recommencing as soon as practicably possible after the Covid-19 lockdown ends. 

It is Blencowe's ambition to add value to Orom-Cross as quickly as possible whilst ensuring at all times it performs to the highest industry standards."

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