3 February 2020

CHESTERFIELD RESOURCES PLC

(TIDM: CHF)

Successful results from percussion drilling

Chesterfield Resources plc is pleased to announce early success from testing VMS (volcanogenic massive sulphide) targets with a percussion drill at its Troodos West licence area in Cyprus. Despite exceptionally heavy rainfall and muddy conditions, Chesterfield has been able to test two of its targets, Hillside and Embayment, in the last two weeks.

Highlights

·    Sulphide mineralisation was encountered at both targets, with half the holes returning positive indications.

·    The company's diamond drill campaigns can now be designed effectively with a high likelihood of intersecting VMS-type sulphides.

·    The success of these early percussion holes indicates "proof of concept" of the team's exploration methodology, and so significantly increases confidence in the company's extensive list of VMS targets at Troodos West.

·    The company has now identified over 30 locations of potentially buried VMS deposits, concentrated around a 10km long structure in the Troodos West area.

·    Percussion drilling, which is just 15% of the cost of comparable diamond drilling rates, has proven a highly effective underground target screening tool and will be further deployed at other Troodos West targets prior to diamond drilling.

Sulphide mineralisation was encountered on both targets. This means that the company's diamond drill campaigns can now be accurately planned with a high level of confidence of intersecting VMS-type sulphides. The percussion drilling (described further below) is being employed as the final phase of exploration and target vectoring prior to diamond drilling. Four holes were drilled on each target and sulphides encountered in two holes at each target.

Importantly, the success of these early percussion holes indicates "proof of concept" of the team's exploration methodology, and so adds to confidence in the company's extensive target list at Troodos West. Many of the other targets are close to Hillside and Embayment and so will share similar geological characteristics. Verification of the local stratigraphy and presence of sulphides in the formations predicted, now provides significant support to the whole programme of exploration target modelling.

The company has now identified a substantial list of over 30 locations of potentially buried VMS deposits.  These are concentrated around just a 10km long structure in the Troodos West area. Of these, 15 targets have been selected and ranked as higher priority targets. Because the targets are in such close proximity, several VMS discoveries could potentially feed a centralised plant.

At Hillside concentrated sulphide mineralisation was reported in two holes collared approximately 50 meters apart at the expected stratigraphic target horizon and with the presence of gold, zinc, and copper. which is the typical revenue metal signature for Cyprus VMS deposits. These results are strongly indicative of VMS type mineralisation and prioritize the Hillside target for  follow-up diamond (core) drilling.

At Embayment, a complex geological target, the presence of sulphides with enriched zinc values was noted on the south-western end of a large (1000m strike-length) target. The central portion of the target remains untested due to difficulty of access in the wet weather.

The percussion drilling intersected sulphides at relatively shallow depths, covered by overlying cap rocks, and represents a significant advance in the geological knowledge of the district. Several higher ranked targets remain untested due to access problems caused by mud and road subsidence. When the weather improves and the land has dried out, these targets will be tested in a focused percussion drilling campaign to prepare them for follow-up diamond drilling.

The Troodos prospective belt has a large number of historic mines dating from the 1970s, and as far back as  Roman times. These VMS deposits were almost always discovered from surface expressions. Since VMS lenses form in clusters, Chesterfield's exploration thesis is that many more deposits must lay undiscovered in the area under sediment or igneous cap rocks that cover much of the prospective area. Such buried deposits may be relatively shallow, perhaps within 200m of surface.

Throughout 2019, Chesterfield has completed a focused campaign of remote sensing, analysing geological data from the national archive, geochemistry campaigns, conducting geophysics programmes, mapping and geological modelling to identify the potential pathways and hosts for VMS mineralisation in the Troodos West district. An important component of the exploration was the incorporation of local geological expertise, and the geological characteristics of known VMS deposits in the area to form comparative models.

Martin French, Executive Chairman said: "We are very excited about the early success of this percussion drilling, scoring two out of two. Not only does it provide clear evidence of mineralised sulphides at both the targets drilled, it greatly increases confidence in the entire multiple-target programme at Troodos West. For the first time, it provides physical verification from underground that our exploration methodology has proven effective and has likely identified previously unknown VMS type sulphides. The team is pleased with the performance of the percussion drill as an advanced stage exploration tool. It means that our diamond drill programmes can be much more effectively designed with a high confidence of intersecting mineralised VMS deposits."

Percussion drilling

Given the relatively low-cost of percussion drilling (approximately 15% of the cost of a comparable diamond drilling per meter) it is an excellent cost-effective method of testing for target stratigraphy and presence of sulphides  up to a limited depth, in this case, of 200m below surface. In this campaign the samples were split and dried and assayed by a portable XRF. Drilling is quick; a hole typically takes only one day to complete. Because the percussion drill is located in Cyprus, there are no mobilisation costs. Importing a diamond drill during wet winter weather is not pragmatic.

Percussion drilling is not considered reliable enough to report accurate mineralisation widths and grades to the market due to the contaminated nature of the sample collection. The rock chips produced by the drilling may fall deeper into the hole and contaminate or dilute subsequent samples. It can however successfully identify the presence of ore minerals and their stratigraphic position along with an indication of the thickness of mineralisation. Percussion drilling results can therefore significantly de-risk follow-up diamond drilling campaigns.

Chesterfield regards percussion drilling as an excellent final test prior to diamond drilling (coring) programmes. If the percussion drilling intercepts sulphides this helps greatly in accurately planning diamond drill holes. Important information is also learned about structures, traps and the causes of anomalies. This means that targets can be ranked more effectively to increase the chances of discovering the mineralised sulphides that we are seeking.

**ENDS**

For further information, please visit http://www.chesterfieldresourcesplc.com or contact:

Chesterfield Resources plc:

Martin French, Executive Chairman         Tel: +44(0)7901 552277

Brandon Hill Capital (Broker):

Jonathan Evans/Oliver Stansfield             Tel:  +44 20 3463 5000