Acquisition and Corporate Update

Cloudbreak Discovery Plc, (LSE: CDL), the natural resource explorer and project generator, is pleased to announce that it has secured the exclusive option to acquire the Darlot West Gold Project, located in the Eastern Goldfields region of Western Australia. The consideration is GBP10,000 for a ninety day option period with either GBP25,000 plus 25,000,000 ordinary shares in the Company ("Shares") or, at the vendors option, 50,000,000 Shares payable at the time the option is exercised.

Project highlights

• Project is located 10km to the north-east of Darlot Gold mine which has produced 2.8Moz Au
• High grade historical workings defined over 200m of strike along contact of basalt and granitoid
• Multiple rock chip sample results include:

o 16.15g/t Au

o 11.8g/t Au

Significant drilling results include:

o 1m at 11.6g/t Au from 14m

o 1m at 4.83g/t Au from 13m

• Modest level of exploration completed over the past 40 years, lack of systematic modern exploration conducted
• Four priority target areas identified for further exploration to be undertaken

Tom Evans, Managing Director, states:

"This is exactly the type of asset, with great upside potential, that we seek to identify and add value to as we continue to rebalance the Company's asset portfolio. I look forward to providing further updates on this exciting venture in the coming weeks."

The Darlot Mine and deposit is approximately 10km to the north-east of the Darlot West Project. The Darlot Gold mine has a long production history of around 30 years of continuous gold production. Up until November 2018, the total output of the mine was 17.8 million tonnes at 4.8g/t Au from 2.8 million ounces of contained gold.

Within the Project, mineralisation has been sporadically sampled in drillholes, shafts, costeans, and surface samples for over 40 years. However, there is a lack of consistency within historic exploration with little or no follow-up on several prospective gold targets.

Historic samples include:

Multiple significant Rock chip samples

o SDRCP0081: 16.15g/t Au

o SDRCP0042: 11.8g/t Au

o SDRCP0040: 2.4g/t Au

o SDRCP0084: 1.76g/t Au

Multiple significant drill results including:

o 1m at 11.6g/t Au from 14m

o 1m at 4.83g/t Au from 13m

• 3 historical underground workings along 200m of strike located along contact of basalt and granitoid

Tenement Summary

The Darlot West project comprises one exploration license, 37/1396 covering 12.13km2.

Location

The Darlot West Project is located in the Eastern Goldfields Region of Western Australia. Leinster is approximately 50km to the west, Leonora is around 100km south and Leinster is situated 140km to the south-east. Access is via the Darlot to Yandal road and station tracks.

Figure 1: Project Location Plan

Geology

Regional Geology

The project is located in the Mt. Clifford to Weebo portion of the Norseman to Wiluna greenstone belt. The regional geology is dominated by north-west trending lineaments and layered sequences comprised of mafic extrusive and intrusive rock with intercalated felsic volcanic rocks. Regionally, the sequence is intruded by granitoid rocks of tonalite or adamellite composition. Felsic dykes and quartz veins have developed late in the tectonic history. The quartz veins are associated with the introduction of gold mineralising fluids.

Local Geology

An undulating Tertiary clay profile covers parts of the tenement area, ranging in thickness from l-2m to an average of 10m. Recent weathering and erosion has exposed an Archaean derived clay and saprolite weathering zone across the majority of the tenement area, again with an undulating contact zone with Archaean basement rocks. Thickness of this zone varies from no cover to a maximum depth of 79m.

Archaean basement rocks consist of mafic gabbros and dolerites, with felsic granitic to dioritic intrusives. Minor ultramafic lamprophyre and felsic syenite is also found in the tenement area. Gabbro and dolerite are the most common basement rock found in outcrop, although the southwestern portion of the tenement contains outcropping granite bodies.

Figure 2: Project Geology

Corporate update

In reviewing the Company's existing assets, the board believes the table below provides an updated royalty status for each current project in its Portfolio.