Landore Resources Ld (AIM:LND) Updated PEA & Strategic Review of Canadian Assets

London, United Kingdom 9th May 2022 – Landore Resources Limited (AIM:LND) (“Landore Resources” or “the Company”) is pleased to confirm that, further to the Company’s announcement on 8th February regarding a Mineral Resource Estimate update.

Cube Consulting Pty Ltd has now completed a Technical Report and Preliminary Economic Assessment (“PEA”) on the BAM Gold Project, Junior Lake Property, Ontario, Canada (“BAM Gold Project”).

In addition, Landore Resources confirms that it has commenced a review of the strategic options available to the Company in relation to its Canadian subsidiary/assets (the “Strategic Review”).

Technical Report and PEA Highlights:

· The Mineral Resource Estimate of the BAM Gold Project at a 0.3g/t cut-off is: 49,231,000 tonnes (t) at 1.0 grams/tonne (g/t) for 1,496,000 ounces of gold (oz Au) including 30,965,000t at 1.0g/t for 1,029,000 ounces gold in the Indicated Category.

· The PEA considers the economics of exploiting resources inside optimised pit shells of 22.4 Mt at 1.16g/t Au containing 833,000 ounces gold using a long term gold price of US$1,800. The project assumes the construction of a 2.2 Mt per annum processing plant over 4 quarters followed by a production period of 10.5 years.

· The PEA indicates that the BAM Gold Project generates a pre-tax and post-tax NPVS of, respectively, US$333.6M and US$231.2M and pre-tax and post-tax real IRRs of 87.4% and 66.7%. The BAM Gold Project has an after-tax simple pay back of 1.25 years from the start of production or 2.25 years from the start of project.

Strategic Review:

· In light of the significance of the BAM Gold and Battery Metals deposits located on the Junior Lake property, as announced in the Company’s Mineral Resource Estimate (MRE) update released on 8th February 2022, the Directors will now review the strategic options available to the Company in relation to the Company’s Canadian subsidiary/assets. The options under the Strategic Review will consider options including the sale of all or a part of its wholly owned subsidiary, Landore Resources Canada Inc., or the Junior Lake Project, potential joint venture arrangements or strategic partnerships, or a combination thereof.

· The Board believes the Strategic Review process is appropriate at this stage of the Company’s development to help the Board achieve its objective in maximizing shareholder value. The BAM MRE has now reached 1.5 million ounces of gold and the Board believes that it has the clear potential to become a multi-million ounce gold project. Whilst the above process is undertaken, the Company will continue to seek to advance the BAM Gold Project towards future development, with further drilling planned to commence in July 2022..

· Strand Hanson Limited (“Strand Hanson”) has been appointed as Financial Advisor in connection with the Strategic Review. Any parties interested in submitting an indication of interest should contact Strand Hanson via the contact details shown below.

Commenting on this report, Chief Executive Officer of Landore Resources, Bill Humphries, said:

“This Preliminary Economic Assessment, combined with the 50% resource increase reported in February 2022, reaffirms the profitability of the BAM Gold Project. The resource has excellent growth potential remaining open at depth and along strike to the east and west, all within established mining leases which cover more than 20 kilometres potential strike length. Other exploration works completed by Landore including exploratory drilling, trenching and soil surveys have identified anomalous gold over this area and the incredible potential for future resource growth.

Over half of the gold resources delineated to date are extractable by cost-effective open pit mining. This coupled with the 98% recovery achieved by conventional milling demonstrates the BAM Gold Deposit’s potential for low capex costs and economical mining operation. Other advantages include the project’s road accessibility and proximity to national rail thus ensuring secure market access.

It is the Company’s belief that the highly prospective Junior Lake Property has the potential to host multi-million ounce gold resources and is now exploring various strategic options to ensure the development of this rapidly-growing asset to the benefit of shareholders.”

Technical Report:

The full Technical Report and Preliminary Economic Assessment can be found on Landore’s website

Extracts from CUBE Technical Report and Preliminary Economic Assessment May 2022:

Executive Summary

Cube Consulting Pty Ltd (Cube) was engaged by Landore Resources Canada Inc. (Landore) to complete a Mineral Resource estimate (MRE) and conduct a preliminary economic assessment (PEA) for the BAM Gold Project, in compliance with the requirements of the Canadian National Instruments 43-101 Standards of Disclosure for Mineral Projects (NI 43-101).

The Junior Lake Project is located approximately 235 km north-northeast of Thunder Bay, Ontario, and approximately 75 km east-northeast of the village of Armstrong Junior Lake Property Status.

Landore has successfully delineated several deposits and other potential areas of significant mineralization throughout the Junior Lake property including the BAM Gold Deposit, the Lamaune Gold Prospect, the B4-7 Ni-Cu-Co-PGE Deposit, and VW Ni Deposit. The main focus of this report is the BAM Gold Deposit which is located in the south-central area of the Junior Lake property and is interpreted as an Archean-aged mesothermal gold deposit.

Recent exploration and development drilling activity have highlighted the following:

· Acquisition of additional mining claims. The Junior Lake property now consists of six mining leases and 1,318 staked mining claims, all together totaling approximately 33,029 ha.

· The results of the soil sampling programs in 2019 and 2020 indicated a possible linking of gold anomaly trends over several hundred metres strike length for several Junior Lake prospects.

· The infill and step out drilling conducted for the 2020-2021 drilling programmes further confirmed the correlation of previously defined geophysics anomalies within the main BAM gold mineralisation trend and provided upgrades to the BAM Mineral Resource estimate.

The 2020-2021 diamond drilling consisted of 102 HQ size drill holes (0420‐725 to 0421‐826), for 24,361 metres. The BAM gold mineralisation trend has now been tested by diamond drilling over a strike length 4.5 km. The 2020-2021 drilling has:

· Continued to show the close association between gold mineralisation and the VTEM geophysical anomaly trend

· Confirmed the extension and continuity of the gold mineral resources at depth within the main BAM mineralisation zone

· Identified additional gold mineralization within the hanging wall GPS unit.

· Demonstrated the continuation of the main BAM gold mineralization to the east and west

· Infill drilling has also allowed for conversion of Mineral Resources from Inferred to Indicated.

The January 2022 Mineral Resources for the BAM Gold Project has been estimated by Cube based on drill hole and assay data available up to 14th January 2022. The addition of the new drilling data has resulted in the increase in Indicated and Inferred Resource of 47% (in-situ contained metal) above a cut-off of 0.3g/t Au compared with the gold mineral resources reported in 2019.

Given the shallow nature of the mineralization and the initial metallurgical test results, material could be extracted by means of open pit mining methods and processed using conventional milling techniques. 3DM modelling and block construction were created with aim of preparing a suitable model for open pit optimisation and mine scheduling. A US $1800 gold price pit optimization run was selected, which represented a potential 12 year mine life (including pre-production, and post-mining processing). A series of metallurgical test programs have been carried out on samples from the BAM Gold Deposit in 2016 and also in 2017. On average, 98% of the feed gold was recovered through combined gravity concentration and cyanidation leaching of gravity tails for composites tested.

For the preliminary economic analysis, the BAM Gold Project base case considers the economics of exploiting a resource of 22.4 Mt at 1.16 g/t containing 833 koz Au. Metallurgical recoveries of 98% are envisaged to yield 816 koz. The base case generates a pre-tax and post-tax NPV of respectively US $333.6 M and US $231.2 M and pre- and post-tax real IRRs of 87.4%% and 66.7%.

Based on exploration work completed by Landore up to January 2022, there is significant resource potential that clearly indicates follow up district scale exploration programs are warranted. There is potential for further gold mineralization and other multi-commodity targets along the 31 km strike length of Landore’s Junior Lake Properties.

Mineral Resources

The BAM Gold Project Mineral Resource, Effective Date as at 31 January 2022, is suitable for public reporting in accordance with the NI 43-101 and the CIM Definition Standards (May 2014). All drilling information, including all drilling completed up to the end of 2021 has been used in the preparation of the January 2022 MRE.

Table 1 is a summary of the Indicated and Inferred Mineral Resources, effective as of 31 January 2022.

Table 1 BAM Gold Project In Situ Mineral Resources- All Indicated and Inferred Resources (31 January 2022)

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Brian Fitzpatrick, (MAusIMM CP.), Principal Geologist of Cube Consulting Pty Ltd., Perth, Western Australia, a Qualified Person as defined in the Canadian National Instrument 43-101 and the AIM Rules, and responsible as lead author for the preparation of the Technical Report and Preliminary Economic Assessment for the BAM Gold Project, has reviewed and verified all scientific or technical disclosure relating to the Mineral Resource Estimate.

Michele Tuomi, (P.Geo., BSc. Geology), Director/VP Exploration of Landore Resources Canada Inc. and a Qualified Person as defined in the Canadian National Instrument 43-101 and the AIM Rules for Companies, has reviewed and verified all scientific or technical mining disclosure contained in this announcement.

– ENDS –

For more information, please contact:

Landore Resources Limited

Bill Humphries, Chief Executive Officer

Tel: 07734 681262

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