Blenheim Natural Resources Plc / EPIC: BNR / Market: AIM

13 March 2018

Blenheim Natural Resources Plc

("Blenheim" or the "Company")

Update on BrandShield Ltd ('BrandShield'), increase in interest and Placing of £1 million

Blenheim Natural Resources Plc, the AIM-quoted investing company, is pleased to announce an update on its leading global cyber security investee company, BrandShield, as well as a fund raise of £1,000,000 at a price of 0.4p per share ("Placing Price") via oversubscribed placings (full details below), to increase its strategic investment in BrandShield, as it expands its fraud protection business to the crypto currency market, as well as to fulfil Blenheim's exploration funding commitments across its lithium and cobalt investment portfolio.

·    BrandShield is an artificial intelligence ("AI") powered online brand protection and cyber intelligence system that revolutionises the way organisations fight scams of different types including fraud

·    BrandShield continues to expand rapidly and is delivering strong monthly growth in sales within its core business - blue chip customer base includes VISA, Credit-Suisse, New-Balance and Radisson Hotels

·    It is currently expanding its anti-fraud product offering to companies pursuing ICOs ("Initial Coin Offering") and expects to make significant inroads into this market - new clients include leading trading platform and crypto specialists, ShapeShift, eToro, WePower and Jet8 (further information below)

·    Additionally, BrandShield is launching MyShield, a decentralised anti-scam platform, and expects to announce shortly further details on MyShield and expansions in new business lines applying its AI, machine learning, and big data technology analysis of online risks

·    Blenheim has agreed to invest a further US$200,000 in BrandShield to increase its stake to 8.95%

·    The Investment is an extension of the initial investment made by Blenheim announced on 11 December 2017 and was on the same terms as the initial investment

·    The funds raised in the Blenheim placing will additionally, in part, allow the Company to further strategically support BrandShield and its associated businesses as it expands into new areas in the coming months, including a potential ICO

Blenheim Executive Chairman, Charlie Wood, commented, "BrandShield's business is growing rapidly due to its international reputation and being at the forefront of the provision of robust internet security solutions.  It is particularly pleasing for me having brought the opportunity to Blenheim to see the rapid progress since our initial investment. I believe BrandShield's revolutionary technology has the ability to provide a solution to one of the internet's biggest challenges, fraud.

"As e-commerce continues to grow, counterfeiting and piracy have become major threats and the economic impact of this illicit activity is forecasted to be up to US$2.81 trillion by 2022 (Source: International Trademark Association (INTA) 2017 report).  With its technology already servicing world-renowned brands, BrandShield is well positioned and is gaining significant traction both in the more traditional arena of e-commerce, as well as the key growth markets surrounding blockchain and ICOs.  A testament to this can be seen in the additional client wins in the crypto-currency arena, in which BrandShield has been instrumental in the provision of security protocols to ShapeShift, eToro, WePower and Jet8.  Indeed, we believe that the knowledge of this arena will potentially lead to some exciting developments that Blenheim will be able to gain exposure to in the future. 

"With this in mind we were delighted that we have raised additional capital through an oversubscribed capital raising.  The Board has spent due time assessing the dilution, especially considering our view that our stock is significantly undervalued.  However, with capital available for the portfolio and in particular, the opportunity to increase our stake in BrandShield, support their future development plans and strengthen our strategic alliance with BrandShield is, in our view, too good an opportunity to miss.

"BrandShield continues to be an exciting company and we believe we are able to support it as it rapidly develops new business lines that should provide significant returns to our shareholders. We look forward to updating our shareholders with further information regarding our strategic relationship with BrandShield and its business development as well as with updates from across the rest of our investment portfolio, including our exploration investments in the technology metals, lithium and cobalt."

Increased Equity Investment in BrandShield

Blenheim has entered into a Share Purchase Agreement dated 12 March 2018 with BrandShield, a company duly incorporated under the laws of the State of Israel, to participate in a share placement. Blenheim has invested US$200,000 for a shareholding of 3,359 shares.  The Company's total shareholding is 20,994 shares representing 8.95% of BrandShield's enlarged share capital.

Placing Details

Firm Placing

The Company has raised gross proceeds of £800,000 through the firm placing of 200,000,000 Ordinary Shares at the Placing Price.  The Firm Placing is conditional on Admission and application will be made for the Placing Shares, which will rank pari passu with the existing Ordinary Shares, to be admitted to trading on AIM (the "Admission").  It is expected that Admission will become effective and dealings in the Placing Shares will commence on or around 16 March 2018.

Conditional Placing

The Company has raised gross proceeds of £200,000 through the conditional placing of 50,000,000 Ordinary Shares at the Placing Price (the "Conditional Placing").  The Conditional Placing is conditional only on approval of the resolutions granting the directors the authority to issue securities on a non-pre-emptive basis, to be considered at a general meeting of the shareholders of the Company ("General Meeting"). The board of the Company intend to call the General Meeting shortly.

Settlement Shares

In addition, the Company has also agreed to issue 4,500,000 Ordinary Shares at the Placing Price to meet a consultant fee to Align Research (the "Settlement Shares").  These shares will be issued following the General Meeting.

Placing Agent Warrant Issue

Under the Placing Agreement the Company has agreed to issue a total of 10,000,000 Placing Agent warrants with an exercise price of 0.4p pence per share, and a three-year exercise life from the date of issue.  These warrants will be issued following the General Meeting.   

Use of Funds

The funds raised will be used to increase the Company's stake in BrandShield (as set out above), to fulfil commitments for other investments in lithium and cobalt, and for working capital and investment purposes. 

Special note concerning the Market Abuse Regulation

This announcement contains inside information for the purposes of Article 7 of the Market Abuse Regulation (EU) No 596/2014 ("MAR").  Market soundings, as defined in MAR, were taken in respect of the Subscription, with the result that certain persons became aware of inside information, as permitted by MAR.  That inside information is set out in this announcement.  Therefore, those persons that received inside information in a market sounding are no longer in possession of inside information relating to the Company and its securities.

**Ends**

For further information please visit www.blenheimnaturalresources.com or contact:

Notes to Editors:

Blenheim Natural Resources Plc is an investing company, quoted on the AIM market of the London Stock Exchange, with a strategy focused on identifying and investing in opportunities in mineral exploration and mining, as well as technology associated with the natural resources sector.  The Company has an experienced Board of Directors with a proven pedigree in the acquisition, development & sale of projects and creating value for shareholders.  The investment mandate covers unquoted and quoted businesses, as well as direct project investment.

The Company currently has investments in a number of companies which provide exposure to commodities which are relevant to the rapidly growing technology metal sector, including lithium, cobalt and nickel, as well as strategic positions in a geoscience consultancy and. a leading international company in the online brand protection, anti-counterfeiting and anti-fraud sector which has developed the one of the most comprehensive systems using AI powered cyber intelligence systems and is developing its proprietary blockchain-based platform for anti-fraud purposes.

Brandshield Ltd:

BrandShield is an artificial intelligence ("AI") powered online brand protection and cyber intelligence system that revolutionises the way organisations fight scams of different types including fraud (including types of phishing and brandjacking), counterfeits, trademark infringements, piracy and more.  BrandShield already has a number of multi-national clients from sectors including banking, financial, cryptocurrency, insurance, software, IT, gaming, fashion, pharmaceuticals, sports, consumer goods, travel, automotive, not-for-profits, and more.

BrandShield's AI, machine learning, and big data technology, performs an advanced and automated metrics-driven analysis of online risks.  Its robust, patented technology finds scams such as fraud, counterfeits, trademark infringements, and brand abuse across multiple platforms including website, marketplaces, social-media, mobile apps.

Following its financing late last year BrandShield has expanded its anti-fraud product offering to include companies in crypto currency arena and those pursuing ICOs such as ShapeShift, the leading instant digital asset exchange, eToro, the world's leading social trading network, WePower, a blockchain-based green energy trading platform and Jet8, a leading decentralised mobile engagement network connecting influencers, audiences and brands through the value of social currency.

The take up and feedback on this service has been extremely positive and BrandShield expects to make significant inroads into this market.

Additionally, BrandShield expects to announce shortly further expansions into new business lines applying its AI, machine learning, and big data technology analysis of online risks.