Option over Rare Earth licenses in Namibia

Kendrick Resources Plc (LSE: KEN), the mineral exploration and development company, is pleased to announce that it has entered into a binding and exclusive Option Agreement to acquire not less than 70% interest on terms to be agreed with Bonya Exploration Pty Namibia ("Bonya") to evaluate EPL4458 and EPL 6691 licenses for the prospectivity of developing a Rare Earth mining project.

The binding and exclusivity period is valid until 19 May 2026 and can be extended with the consent of Bonya.

Highlights

• The licenses are situated 55km southwest of the town of Aus, approximately 65km southeast of the deepwater port of Lüderitz
• The two license areas are known as Twyfelskupje and Keishohe and are hosted within a Carbonatite and Alkaline intrusive structural corridor
• The two licenses represent well-defined, high-grade targets located within a larger highly prospective area under license
• The Twyfelskupje Carbonatite Complex forms a circular group of hills with a diameter of 1km
• Historical channel sampling and grab sampling returned peak Rare Earth Oxides ("REO") grades of 4.47% and 4.18% with an average REO of 3.12%
• ICP analysis undertaken in Canada, returned high Rare Earth Elements concentrations, greater than 10,000ppm for a number of elements, including Neodymium, Praseodymium and Samarium, which are all important components of high-performance, high-temperature magnets
• The Keishohe Carbonatite Complex indicates scope for an additional three satellite near surface occurrences
• Work will commence immediately on assaying, currently available but unassayed core, further trenching and identification of drilling targets
• Kendrick will concurrently carry out all necessary legal, financial and regulatory checks before determining whether to exercise the option

Colin Bird, Executive Chairman of Kendrick Resources Plc commented: "Rare Earths are globally accepted as new age strategic materials and these licenses are located in Namibia, a country recognized for its support of the development of natural resource projects. The historical Rare Earth values are higher than those generally reported in the industry and the high values of the magnetic elements are very encouraging since such elements are much sought after.

The licenses have areas which are drill ready and historically been well evaluated with geophysics and exploration fieldwork.

We intend to accelerate our due diligence and technical preparedness in order to release the high potential of the project area. We will keep shareholders advised as our evaluation phase develops."

Key conditions of the Option Agreement

The period of the agreement is 120-days, concluding 19 May 2026, which can be extended by Bonya's sole election.

Kendrick may, at any time during the 120-day period, give notice to exercise the option and enter into a definitive agreement to be negotiated.

Should Kendrick advise Bonya that it has no intention to exercise the option, neither party has any obligation towards the other party.

The parties agree that there can be no termination by either party during the option period, other than Kendrick advising Bonya it does not wish to continue for any reason.