Replacement: Option & JV for Exploration Licence.

This announcement replaces the announcement "Option & JV for Exploration Licence in Zambia" released on 10 June 2025 at 16:15:12 under RNS No 2642M.

There was a typographical error in the first sentence of the comment from Colin Bird, Executive Chairman of Kendrick Resources Plc which should have read "We announced in our 2024 accounts Kendrick has been seeking to identify copper and base and critical metals project opportunities in Southern Africa" rather than referring to the 2004 accounts.

All other details remain unchanged.

The full amended text is shown below.

10 June 2025

Kendrick Resources PLC

 ("Kendrick" or the "Company")

Replacement Option & JV for Exploration Licence in Zambia

 Kendrick Resources Plc (LSE: KEN), the mineral exploration and development company is pleased to announce it has on 10 June 2025 entered into an option and joint venture agreement in relation to the acquisition of the Blue Fox Licence, 34412-HQ-LEL located in northwest Zambia ("Licence") (the "Agreement").

Highlights

·    The Licence which was previously held by Anglo American Corporation is located within the highly productive and prospective External Fold and Thrust Belt which is itself situated between the Western Foreland and Domes domains of northwest Zambia.

·    The Licence is situated along strike of and in the same External Fold and Thrust Belt that hosts Tenke Fungurume (8Mt contained Cu) and the Mutanda mines in Democratic Republic of Congo

·    The Licence sits adjacent to known copper mineralisation hosted by Roan Group rocks and associated with salt diapir tectonics and fluidised breccias.

Exploration will target structures occurring within the Licence inferred from airborne magnetic data together with the presence of two substantial copper in soil anomalies identified immediately to the east of the Blue Fox Licence that appear to trend into the Licence.

Colin Bird, Executive Chairman of Kendrick Resources Plc commented:

"We announced in our 2024 accounts Kendrick has been seeking to identify copper and base and critical metals project opportunities in Southern Africa. The Blue Fox Licence is located within the External Fold and Thrust Belt in northwest Zambia a country well known to the Board and where the Company has access to a large knowledge base and experienced geological personal. The licence is highly prospective and the External Fold and Thrust Belt which extends into the Democratic Republic of Congo hosts the Tenke Fungurume and Mutanda mines."

Terms of the Agreement

Kendrick has entered into an option and joint venture agreement with Cooperlemon Consultancy Limited ("CCL") for the exploration and if appropriate development of licence number 34412-HQ-LEL located in the Northwestern region of Zambia.

CCL has granted Kendrick an exclusive option (the "Option") and a 60 day option period to conduct diligence legal and title due diligence. During the Option Period Kendrick has the exclusive right by written notice to CCL for the parties to enter into a joint venture agreement for the exploration and development of the Licence in accordance with the terms of the Agreement ("Option Notice") .

Expenditure Commitment: Should Kendrick issue an Option Notice, Kendrick agrees to spend not less than USD500,000 during the 30-month period from the date of the Option Notice on assessing and exploring the Licence area.

At the end of the Exploration and Evaluation Period, the parties will assess and jointly agree the basis upon which they will form a joint venture company to explore and develop the Licence in the ratio 70% / 30% between Kendrick and CCL.

The JV Company will be responsible for the future financing of the project, with CCL having no obligation to fund its share of the JV Company costs through to a decision to mine.

Should Kendrick fund or arrange funding for the JV Company until a decision to mine, then CCL will dilute its interest in the JV Company to a 20% carried interest.

Cashflow distribution: Distribution of surplus cashflows of the JV Company having provided for ongoing working capital for the continuing development of a mine will be:

i)     60% retained for debt servicing and repayment of financing provided to the JV Company; and

ii)    40% to be distributed as per equity ownership to Kendrick and CCL.

Approval of and Consequences of JV or Sale

i)     Both parties must agree to the terms of a joint venture with a third party or sale of the Licence or other corporate transaction affecting the Licence;

ii)    Should the Licence be joint ventured with a third party then the parties agree that the joint venture participation with the third party will be divided as to 50% Kendrick and 50% CCL; and

iii)   If the project is sold outright to a third party, then CCL and Kendrick will divide the proceeds from such sale 50% Kendrick and 50% CCL with the costs of the sale to be deducted.  The costs of sale do not include the exploration cost incurred by Kendrick, but will include sale related costs  including but not limited to legal and commercial costs.

The Agreement is governed by English Law.

Further information on the Licence:  The Licence is a large scale exploration licence issued on 16 October 2023 which expires on 15 October 2027 and has an area of 68,383 ha and is for copper and cobalt and other commodities.

For further information, please contact: