Manica Hard Rock Project Update

For immediate release

8 October 2020

Xtract Resources Plc

("Xtract" or the "Company")

Manica Hard Rock Project Update

The Board of Xtract Resources Plc ("Xtract" or the "Company") is pleased to announce that Mutapa Mining and Processing LDA ("MMP") has provided the Company with an update on current progress to date and its development plans on the Manica hard rock open pit mine. The Company entered into a collaboration agreement ("Collaboration Agreement" or "Agreement") with MMP on 29 May 2019 for the mining and mineral processing of the Company's Manica hard rock gold deposits ("Hard Rock Project").

Highlights

Processing plant 

·    Large part of bulk cut and fill works already undertaken, with Tayanna, a leading construction and open cast mining company, locally based in Mozambique to complete final trim

·    Onsite process plant activities to commence next on completion of pre-establishment work

·    Initial focus on civil concrete installations to allow for the arrival and placement on civils where possible of equipment fabricated in South Africa

·    Other works to commence in the coming weeks include crusher feed refurbishment, cone crusher work and mill rectification works including lubrication system and liquid resister starter connection

Infill drilling finalisation

·    Some infill drilling to commence for pit optimisation reasons

Tailings dam 

·    Scott Wilson consulting engineers completed updated design of tailings dam and will oversee work on site

·    Tailings construction contract agreed with Tayanna with dam construction to commence within 7 days of signing the agreement

·    Tayanna have commenced mobilising earth moving equipment to site to optimise construction time and to commence clearing and topsoil removal as soon as possible

Project manager

·    MMP's Senior project manager has received a travel exemption from the Australian Department of Home Affairs to leave Australia and travel to Mozambique (required due to COVID-19 restrictions)

Colin Bird, Executive Chairman said: "The updated plan provided by our collaboration partners MMP has been supplied to allow the Company to fully update shareholders on the progress and we are confident that there are no fatal flaws to prevent the project build. We will keep shareholders advised and detail progress providing photos and commentary on our website."

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 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:

ENDS