Completion of Airijoki Extension Drill program

Kendrick Resources Plc (LSE: KEN), a mineral exploration and development company with vanadium, nickel and copper projects in Scandinavia is pleased to provide an operational update for its Airijoki Project in Vittangi, Sweden.

Highlights

• 8 Holes drilled for 1394 m
• Vanadium mineralisation confirmed for circa 2km from the northern boundary of the existing 44.3Mt Mineral Resource comprising >100,000 tonnes of contained V2O5
• Drilling provides fresh core for further metallurgical test work
• Drilling has now been undertaken on two licences within the greater land package of seven contiguous licences
• The remaining 5 licences are prospective for both vanadium and copper and will be subject to follow up exploration
• Engagement of an external metallurgical engineer with vanadium experience working alongside Dr E Kirby Non-Executive director to guide future test work

Colin Bird, Executive Chairman of Kendrick Resources Plc commented: "The successful completion of the latest drill programme is an important step as we build a substantial vanadium resource based on the Airijoki Project. We have now drill tested two of the seven licences that comprise the project area and these untested licences have been covered by historic and recent soil geochemistry and geophysics showing similar characteristics to that which has so far led to fresh vanadium discoveries. It is our intention to continue to build a substantial vanadium resource. Further metallurgical test work is required, and this process will continue as we expand our programme"

Drilling Programme

The Airijoki 200 license is located immediately to the northeast of the Airijoki 100 license in which the 44.3Mt JORC Inferred Vanadium mineral resource is estimated and is prematurely terminated between the license boundaries (Figure 1).

The drill program targeted the magnetic anomaly produced from a Ground Magnetic Survey completed in March 2021, which coincided with the inferred mineral resource and extended through into the Airijoki 200 license.

A total of 1394 m were drilled from 8 holes and from visible observations and portable XRF (pXRF) point measurements taken every meter, the continuity of the vanadium mineralisation is confirmed. Anomalous vanadium concentrations were detected by pXRF in 7 out of the 8 holes.

The mineralised samples have been dispatched to the laboratory for assay, to determine the V, and V2O5 concentrations in both whole rock and magnetic concentrate more accurately. The assay results are expected to confirm continuity of the Vanadium mineralisation and the potential to significantly expand the current Vanadium resource at Airijoki and will be announced in due course once received and assessed by the Company.

Figure 1. Map showing magnetic survey, JORC Inferred Resource outline, and location of recently completed drillholes.

Figure 2. Cross-section showing actual locations drilled and suspected vanadium mineralisation as detected by the pXRF measurements taken every metre. V measurements by pXRF only provide an indication of the location of the mineralisation and these results will need to be verified by an accredited laboratory.

The Airijoki Project

The Airijoki Project lies within the Vittangi Greenstone Group (VGG) of northern Sweden, in relative proximity to established infrastructure as well as several significant mines (i.e. Kiruna, Svappavaara, Leveäniemi and Mertainen) and other new energy mineral projects (i.e. Talga Group's Vittangi graphite project). Geologically the Project is centred on a laterally continuous, northeast trending gabbroic (locally termed diabase) intrusion which hosts vanadium-magnetite mineralisation along with lesser base metal (predominantly copper mineralisation).

Airijoki is currently supported by an Inferred Mineral Resource comprising 44.3 Mt at an in-situ grade of 0.4% V2O5, containing 5.9 Mt of magnetite averaging 1.7% V2O5 (in magnetite concentrate) for 100,800 t of contained V2O5 based on a 13.3% mass recovery of magnetite concentrate and a 0.7% V2O5 cut-off grade, on a 100% equity basis (and net attributable basis).

Subsequent Davis Tube Recovery (DTR) and low-intensity magnetic separation (LIMS) test work indicated that vanadium magnetite concentrates grading over 2% V2O5 and more than 65% Fe are possible at mass recoveries over 20% from the vanadium mineralisation at Airijoki. Overall, vanadium recoveries in excess of 70% can be achieved using a relatively coarse grind size of 355 µm and using LIMS without the need for further treatment.

Conceptual studies completed in 2019 envisage that Airijoki will be developed by bulk open pit mining techniques from four open pits using standard drill and blast, load/haul and crusher feed/magnetic separation to produce a vanadium magnetite concentrate. The conceptual techno-economic studies demonstrated the Project has the potential to be financially robust. Further metallurgical test work, extensional and infill drilling and optimisation studies are warranted at Airijoki prior to more advanced techno-economic analysis.

Vanadium

Technological advances are expected to positively influence the demand for vanadium. Principally used as an alloy in steel and aluminium production, its' ability to make materials stronger and lighter offers important benefits particularly for weight-to-strength ratio, an important consideration particularly for EVs'. Vanadium pentoxide is also an important component in REDOX flow batteries used for energy storage associated with solar and wind farms. With the projected increased use of vanadium in EV batteries, demand for the metal is expected to grow.

Appendix A - Glossary of Technical Terms