Bushranger Project - Further Drill Assay Results

For immediate release

26 May 2021

Xtract Resources Plc

("Xtract" or the "Company")

Further Drill Assay Results from the Bushranger Copper-Gold Project

The Board of Xtract Resources Plc ("Xtract" or the "Company") is pleased to advise that laboratory assays have been received from the second and third drill holes (BRDD-21-002 & BRDD-21-003) completed on the Phase One diamond drilling programme at the Racecourse Mineral Resource on the Bushranger copper-gold exploration project, located in the Lachlan Fold Belt ("LFB") of New South Wales, Australia.

Highlights

·    Assay results for the second and third angled holes of the Phase 1 exploration drilling at the Racecourse porphyry deposit confirm visual observation of extensive intervals of copper mineralisation in both holes

·    Assay intervals include (see full interval details in Table 1 below):

BRDD-21-002

o  362m @ 0.20% CuEq from 422m

§ including 14m @ 0.36% CuEq from 500m

§ and 26m @ 0.32% CuEq from 638m

BRDD-21-003

o  200m @ 0.20% CuEq from 598m

§ including 68m @ 0.26% CuEq from 676m

§ and 16m @ 0.31% CuEq from 714m

·    Results from these two holes, along with results from the first hole of the programme and historic drilling results indicate that, as the Racecourse copper mineralisation extends northwest beyond the existing Inferred Mineral Resource, it increases significantly in width, however the higher-grade mineralisation occurs at shallower depths, enhancing the open pit potential of the deposit

·    As announced on 17 May 2021, the Company has engaged external mining consultants to build a financial model to investigate the economics of open pit extraction of the shallower ore

·    Assay results from the remaining two holes of the Phase 1 programme are awaited

·    The planned Phase 2 drilling programme at Racecourse is on track for commencement early in Quarter 3, 2021 which will focus on further definition of the shallower higher-grade zone and testing of the deposit extensions to the south and east as suggested by the recent IP geophysics survey

Table 1 - Assay Results from Drill Hole BRDD-21-002 & BRDD-21-003*

*Assays undertaken by Bureau Veritas Minerals Pty. Ltd. Laboratory, Adelaide, Australia

**CuEq Formula: CuEq = Cu% + 0.62xAu (g/t) + 0.0093xAg (g/t)

Colin Bird, Executive Chairman said: "The assay results from the first three holes of the Phase One drilling programme at the Racecourse Prospect have succeeded in extending the copper mineralisation 350-450m to the northwest of the current limit of the Mineral Resource and a significant distance down dip. In comparison to previous drilling on the project by Anglo American, our recent intersections are substantially wider, suggesting that as the Racecourse mineralisation extends to the northwest it is growing significantly in thickness. The higher-grade sections appear to occur at shallower depths and form a "cap" of higher-grade mineralisation over the top of the central porphyry intrusion. We believe this enhances the ability to potentially open pit mine the Racecourse copper mineralisation. Consequently, we have engaged external mining consultants to build a financial model of what an open pit mining operation could look like at Racecourse. Also, as the drilling results received to date have met our programme objective to demonstrate the extension to the northwest of the Racecourse mineral deposit, we have committed to a Phase 2 drilling programme, to commence early in Quarter 3, to drill out the Mineral Resource and test a number of exploration targets which have been identified from the recently competed IP survey (see RNS released 17 May 2021). The Racecourse prospect is entering an exciting new phase and our objective is to define an internationally significant mineral resource."

Phase One Drilling Programme at the Racecourse Mineral Resource - Bushranger Project

The Phase One drilling programme at the Racecourse Mineral Resource was designed to follow up on the strong results obtained by Anglo American Exploration Australia Pty Ltd in 2014 and 2015 (refer to RNS released on 01 June 2020). The objective of the programme was to explore the extent of the copper-gold mineralised porphyry system to the northwest and at depth, beyond the limits of previous drilling, thereby testing the potential extensions to the northwest of the Racecourse Mineral Resource.  At 71Mt @ 0.44% Cu and 0.064g/t Au, at a 0.3% Cu cut-off, the existing Racecourse Inferred Mineral Resource is believed to be one of the largest undeveloped porphyry copper-gold deposits in the Lachlan Fold Belt of New South Wales, Australia.

Following the success of the first hole of the programme, BRDD-20-001, which substantially extended the known limits of the deposit down-plunge to the north-west, subsequent holes in the Phase 1 programme were drilled obliquely across the deposit to test the width and grade of the mineralisation within the deposit extension. All completed holes intersected wider mineralised zones than anticipated in the form of disseminated and fracture-fill chalcopyrite, accompanied by pyrrhotite and pyrite, as confirmed by assays received for holes BRDD-21-002 and BRDD-21-003. While assay results from the two remaining holes of the programme are awaited, it is already apparent from the drilling results to date that there is significant scope to expand the current Inferred Mineral Resource at Racecourse. The new results, combined with historic drilling, point towards a higher-grade mineralised 'cap' to the deposit over the top of the central porphyry intrusion. Arising from the ongoing appraisal of the results, an independent firm has been engaged to undertake technical and financial modelling for an initial open pit mine, examining several pit layout scenarios and economic parameters.  

The Phase 2 drilling programme at Racecourse, planned to commence early in Quarter 3, 2021 will focus on additional definition of the shallower higher-grade cap and testing of further deposit extensions to the south and east as suggested by the recent IP geophysics survey.

Assay results from the remaining two holes of the Phase 1 drilling programme will be reported when they are received and collated.

Please see the following web links for the Racecourse Mineral Resource drill hole location plan, cross section and long section:

Bushranger Project Drill Hole Location Plan

http://www.rns-pdf.londonstockexchange.com/rns/7985Z_1-2021-5-25.pdf

Racecourse Mineral Resource Long Section

http://www.rns-pdf.londonstockexchange.com/rns/7985Z_2-2021-5-25.pdf

Racecourse Mineral Resource Cross Section

http://www.rns-pdf.londonstockexchange.com/rns/7985Z_3-2021-5-25.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