Update on Cobalt Blue Holdings Investment

Blenheim Natural Resources plc / EPIC: BNR / Market: AIM / Sector: Investing Company

21 February 2018

Blenheim Natural Resources Plc

("Blenheim" or the "Company")

Completion of First Stage of Cobalt Blue Transaction

Blenheim is pleased to announce that, following the grant of three exploration licences to wholly owned subsidiaries of Cobalt Blue Holdings Inc ("CBH") by the Ministry of Mines in Cameroon the first of two consideration warrants issued to Cobalt Blue Associates Inc ("CBA") are now exercisable as per the terms of Blenheim's acquisition of a 25% stake in CBH ("Acquisition") (as outlined in RNS dated 30 November 2017).

Overview:

·     Following confirmation that the Ministry of Mines in Cameroon has granted the Ngoila Nord, Ekok and D'jka exploration licences to wholly owned subsidiaries of CBH, CBA is now able to exercise the 300,000,000 Warrants ("First Consideration Warrants") over ordinary shares in the Company ("Ordinary Shares") exercisable at a price of 0.1p per share (being the nominal value of the Ordinary Shares)

·     The area is highly prospective for cobalt and associated minerals with the licences contiguous to the Nkamouna and Mada deposits in the Haut-Nyong division, where previous studies indicated a total 59.8 million tonnes (Mt) grading an average of 0.24% cobalt, 0.68% nickel and 1.37% manganese

·     Wholly owned subsidiaries of CBH have a further 2 applications for exploration licences in the region which together with the three granted licences cover an area of 2,837 km² of land highly prospective for cobalt in Cameroon

·     Once the final 2 applications for exploration licences are granted to the subsidiaries of CBH, CBA will be able to exercise the 250,000,000 Warrants ("Second Consideration Warrants") over Ordinary Shares exercisable at a price of 0.65p per share

·     Further information on the licences and opportunity can be found on the Company's website at https://www.blenheimnaturalresources.com/investments/cobalt-blue-holdings

·     CBH is preparing a phased exploration programme and further details will be provided on the granting of the remaining licences

Blenheim Chairman Chris Ells commented, "The granting of these three exploration licences by the Cameroon Ministry of Mines is representative of Blenheim's strategy to build an investment portfolio centred around technology metals.  The licences are located in what the Board believes to be one of the world's most significant cobalt deposits.  There is high demand for cobalt and this is set to increase further due to the growing lithium ion battery/EV market. 

"In addition to cobalt, Blenheim has a portfolio of highly prospective lithium licences where, following positive results, our partners are preparing the next exploration stage, including an auger drilling programme to test for pegmatites beneath the weathered surface. Together with our investment in BrandShield, which is currently expanding its solution for the crypto-currency and blockchain industry and where we expect to be in a position to provide an update in the near term, we are entering an exciting period in BNR's development."   

As announced on 30 November 2017, the Company entered into an agreement to acquire a 25% stake in CBH from CBA via the issue of up to 550,000,000 warrants ("Consideration Warrants") over Ordinary Shares to CBA.  The Consideration Warrants become exercisable subject to the granting of exploration licences in Cameroon.

The subsidiaries of CBH had five applications for exploration licences submitted to the Ministry of Mines in Cameroon as part of the terms of the Acquisition ("Cameroon Licences"). Three have now been granted and the remaining two applications are expected to be subject to granted exploration licences imminently. Once the final two exploration licences are granted the Second Consideration Warrant outlined in the RNS dated 30 November 2017 will be exercisable by CBA. An announcement will made at the time such licences are granted. 

From the Completion Date, CBA will be subject to a 12-month lock-in period in relation to any shares subsequently issued to CBA pursuant to the terms of the Consideration Warrants.

Following the granting of the Ngoila Nord, Ekok and D'jka exploration licences to CBH, the First Consideration Warrants are now exercisable at a price of 0.1p per share (being the nominal value of the Ordinary Shares). The First Consideration Warrants may be exercised at any time until the third anniversary of the date on which the 5^th of the Cameroon Licences has been granted.

The Second Consideration Warrants are over a further 250,000,000 shares and are exercisable at a price of 0.65p per share in the event that all 5 Cameroon Licences (being exploration licences adjacent to the Nkamouna and Mada Cobalt-Nickel Project) have been granted.

CBH applied for 6 exploration licences at Ngoila Nord, Ngoila Est, Ekok, N'Tam Est, N'Dja and Ngaoundéré, 5 of which are the Cameroon Licences. These exclusive exploration licences, once granted, will be issued for an initial period of three years and may be renewed up to three times, for a maximum period of two years each. 

Ngoila Nord, Ekok, Ngoila Est, N'Tam Est and N'Dja are in the Haut-Nyong, Haut-Nyong & Boumba-et-Ngoko, Haut-Nyong, Boumba-et-Ngoko and Haut Nyong & Dja-et-Lombo divisions respectively. The area is highly prospective for cobalt and associated minerals and are situated in close proximity to the Nkamouna and Mada deposits in the Haut-Nyong division.

The neighbouring Nkamouna and Mada cobalt-nickel deposits were audited by SRK in June 2011 (for Geovic Mining Corporation) in accordance with CSA NI 43-101 standards and in conformity with generally accepted CIM 'Estimation of Mineral Resources and Mineral Reserves Best Practices' guidelines.

*Ends*

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

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The information contained within this announcement is deemed to constitute inside information as stipulated under the Market Abuse Regulations (EU) No. 596/2014. Upon the publication of this announcement, this inside information is now considered to be in the public domain.