Pitting programme results at Eureka project

For immediate release

8 September 2020

Xtract Resources Plc

("Xtract" or the "Company")

Pitting programme results at Eureka project

The Board of Xtract Resources Plc ("Xtract" or the "Company") is pleased to provide information on the outcome of a pitting programme designed to track extensions to the Eureka copper-gold deposit on small scale mining licence number 22134-HQ-SML (" Eureka Licence") located in the Central part of The Republic of Zambia ("Eureka Project").

Highlights

·    Exploration pitting along strike from the shallow Eureka copper-gold deposit confirms earlier modelling of a strike extension to the northwest

·    Pit channel sample measurements by hand-held XRF analyser return values in weathered bedrock up to 2.65% Cu in Pit EX-P3

·    Potential indicated to extend the deposit strike by more than 50% to over 300m

·    Zone potentially remains open to further strike expansion beyond the exploration pitting area and is open down-plunge

·    Pitting at Eureka West indicates potential for additional width at this target

·    Planning will commence for follow-up drilling with the aim of significantly expanding the Eureka deposit

Colin Bird, Executive Chairman said: "This exploration pitting programme has produced a pleasing result, with high grade sample results in Pits EX-P1 to EX-P4 to the northwest of the historic open pit confirming historic copper soil anomalies on the axis of the previously established mineralisation. The programme certainly gives us confidence regarding our immediate goal of a small-scale copper producing operation. The system is open ended, and there is potential to identify a larger discovery.

Our intention is now to prepare for a drill programme to identify a mineral deposit of sufficient capacity to support a 7-year open pit mine life, whilst drilling outlying holes to test for more significant extensions."

Summary of Exploration Pitting Results at Eureka

Earlier 3-D modelling on the Eureka main pit copper-gold deposit suggested that the mineralisation might extend towards the west-northwest from the small historic open pit, along the trend of a 3km copper-in-soil anomaly. A programme of exploration pitting was undertaken by the Company to test for such extensions.

A total of 19 pits were dug by mechanical excavator at 50m spacing along north-south profiles to a maximum depth of 7m, chiefly on the main Eureka open pit extension, but also including several in the area of the 'villager's pit' on the Eureka West target. The weathering profile in the vicinity of the main Eureka open pit is quite deep and most of the exploration pits did not encounter solid bedrock, mainly cutting through overlying soils and saprolite. Channel profile samples were taken every metre down the pits and these were subsequently dried, sieved, labelled and bagged in the field for later analysis. Prepared samples were analysed for copper by GeoQuest, an independent geological contracting company based in Lusaka, using a hand-held XRF analyser.

Results show strongly anomalous values in four pits, designated EX-P1 to EX-P4, to the northwest of the open pit mine. Although visible copper mineralisation was not identified in the heavily weathered profile, all of these pits returned sample values in excess of 1,000ppm Cu, with values peaking in Pit EX-P3 at 2.65% Cu. This strongly indicates a potential north westerly extension of the mineralisation drilled at the open pit and, if confirmed by follow-up drilling, would extend the known 200m strike of the Eureka deposit by a further 110m to more than 300m overall - with scope for additional extensions again beyond the line of exploration pits.

At Eureka West, almost 1km to the southwest of the main Eureka target, three exploration pits were completed near the Villager's pit excavation, with channel samples returning values up to 0.21% Cu in pit EX-P35. These results support the previous identification of disseminated copper mineralisation in bedrock and boulders and could expand the target over a greater width.

With the potential for significantly extended strike at the main Eureka copper-gold pit deposit, as well as additional encouragement at Eureka West, the Company will now prepare a follow-up drilling programme aimed at further extending and evaluating these near-surface targets.

Eureka Project background

As previously announced, a shallow open pit mine was developed at Eureka by a local operator in 2008 within a strong, 3km long copper-gold soil anomaly, when about 1,000 tonnes of ore at 3% Cu was reportedly recovered. Recent drilling by Xtract was carried out to confirm and extend the deposit as originally defined by limited historic drilling. Intercepts up to 32m @ 1.58% Cu, 0.07g/t Au, including 19.0m @ 2.08% Cu, 0.08g/t Au (Hole EX-01) were cored in the recent drill programme. The deposit remains open in several directions.

A second sub-parallel copper anomaly in soils about 600-700m long occurs at Eureka West, 1km to the southwest of the main Eureka pit. A small copper pit at this locality was operated by artisanal miners - a composite grab sample taken by the Company from hand-sorted boulder piles at the site returned 9.81% Cu, 1.94g/t Au, 13.77g/t Ag. This is a further priority drill target for the Company.

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

This announcement contains inside information for the purposes of Article 7 of EU Regulation No. 596/2014 on market abuse. 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