Final Results

Erris Resources Plc / EPIC: ERIS.L / Market: AIM / Sector: Mining

29 March 2018

Erris Resources plc ("Erris" or the "Company")

Final Results

Erris Resources, the European focused mineral exploration company with a portfolio of zinc prospects in Ireland and gold projects in Sweden, is pleased to announce its final audited results for the 15- month period ended 31 December 2017.

Overview

· Successfully admitted to trading on AIM on 21 December 2017 having raised £4 million

· Targeting the rapid advancement of a previously producing Irish zinc project and Swedish gold projects

· Portfolio located in low risk jurisdictions with favourable and supportive mining codes

· Industry partnerships: Canadian royalties company Osisko Gold Royalties invested at IPO to become an 18.9% shareholder and Canadian mid-tier mining company Centerra Gold continues to fund Swedish portfolio development within a strategic alliance agreement

· Defined development programme underway in Ireland to test the extensions of the previously producing Abbeytown mine and test regional targets

· US$1.85m work programme funded by Centerra Gold underway to advance a portfolio of gold projects in Sweden

· Advanced strategy to generated and advance other value accretive opportunities - applied for eighteen new contiguous prospecting licences for zinc in an area east of Galway, County Galway (the "Galway Project")

· Proven team with international project development success

The Company's Annual Report and Financial Statements for the period ended 31 December 2017 will be posted to shareholders today and will be available on the Company's website https://www.errisresources.com/.

Chairman's Statement

I am pleased to report on the inaugural results since Erris Resources was admitted to AIM on 21 December 2017. Having raised £4 million, before expenses, through a Placing of 16,000,000 new ordinary shares, we are now focused on advancing our prospective portfolio of 100% owned zinc assets in Ireland and gold projects in Sweden, as well as generating and acquiring additional exploration opportunities that the Board believe have the potential to add value to the business. This has been demonstrated post period end by the identification and application for additional licences for prospective licences in Galway, Ireland with zinc potential.

We are fortunate to have the support of two Canadian mining Companies, Osisko Gold Royalties and Centerra Gold, which have recognised our potential to make commercial discoveries, thereby endorsing both our business model and team. Osisko Gold Royalties is a cornerstone shareholder, holding 18.9% of issued share capital. Furthermore, we have a strategic alliance agreement with Centerra Gold, which sees it funding a portfolio of gold and base metal properties within a common area of interest in northern Sweden. This currently covers three gold projects, providing Erris Resources with exposure to significant upside in the event of discovery with no corporate dilution. The most recent of these projects, Brännberg, was elected by Centerra Gold in January 2018, bringing the planned expenditure by Centerra Gold in 2018 to a total US$1,850,000.

Drilling and other work including ground magnetic, electromagnetic and induced polarisation surveys, surface sampling, mapping, is underway across the portfolio. In Ireland, at the 100% owned Abbeytown zinc project in County Sligo, we are also rapidly advancing work on the ground. Having completed in-fill soil geochemistry surveys, in late February 2018 we commenced the Phase One 5,000m drill programme at the first of four high priority target areas. The Abbeytown zinc project covers an historic lead-zinc -silver mine situated within an active limestone quarry, where ore was extracted on an industrial-scale between 1951 and 1961, initially as an open pit, and then as an underground mine. We are very excited about this project and look forward to providing updates on our progress.

In Sweden, we received results of drill programmes undertaken in the second half of 2017 at the Klippen and Käringberget gold projects. These were encouraging as they highlighted broad zones of mineralisation and, together with new geophysical data collected early in 2018, generated a new set of targets to be drill tested. Subsequently, we signed a contract with Northdrill Oy for 2,750m of drilling at the Klippen gold project, comprising 15-18 holes covering approximately 4.0km of strike length, extending the previous drilling to the northwest by 2.1km and to the northeast by 350m. This is expected to be completed in the second quarter of 2018 after which we will move onto the Käringberget and Brännberg projects.

The Board firmly believes that exploration is the lifeblood of the resource sector. However, discovery rates have dropped in recent years due to reduced spending on exploration; we hope to reverse this trend. As a discovery driven exploration company with a focus on base and precious metals, we aim to delineate resources that can be part of the next generation of mines. With this in mind, we continue to seek value accretive opportunities in favourable mining jurisdictions. Post period end, we applied for 18 new contiguous prospecting licences in an area east of Galway, Ireland, covering 673km2 and located in an unexplored setting analogue to and approximately 40km west of the Tynagh deposit, and are also evaluating other prospects.

As we come to the end of the first quarter and look ahead to the rest of 2018, Erris Resources is in a strong position. We have three active exploration programmes underway and are reviewing several new opportunities. As a result, we expect to generate a steady news flow during the remainder of the year.

Finally, I would like to thank our shareholders for their continued support and our dedicated team and partners for their commitment to the development of Erris Resources.

Jeremy Martin

Non-Executive Chairman

Strategic Review

Company Overview

Erris is a mineral exploration and development company with six prospecting licences in Ireland and 18 exploration permits in Sweden. In Ireland the licences total 159km2, including the historic Abbeytown deposit, and are focussed principally on economic zinc mineralisation, with ancillary lead, silver and copper potential. In Sweden, the 18 licences are grouped into seven project areas totalling 313km2, primarily focussed on gold.

Erris has been validated by major industry partners both at a project level and at the corporate level. Osisko Gold Royalties Ltd (market capitalisation of approximately C$2.0 billion) has a 1 per cent. royalty on the Abbeytown Project and Erris's Swedish licences and became a 18.91 per cent shareholder at the IPO. At the project level, Centerra Gold Inc. (market capitalisation of approximately C$2.1 billion) has a JV agreement with Erris where project expenditure of US$1,000,000 by Centerra on each project over two years will earn it a 51 per cent. interest in each project, with Erris retaining a 49 per cent. interest without having to invest any additional funds. In 2017, Centerra optioned two licences and spent US$400,000 on each of these two DPAs plus a further US$250,000 on generative exploration. In 2018, it has already optioned a third DPA at Brännberg and has committed to spending a total of US$1,850,000 during the year.

Company Strategy

Erris's business model can best be defined as seeking to create significant shareholder value through the process of discovering new ore deposits. Well-managed exploration success finding commercially viable deposits can create capital value even in a period of weak metal prices. The Directors believe that Erris's business model maximises the chance of making commercial discoveries in an efficient manner, as follows:

Technically-led team - The Directors and senior management team have significant exploration experience, with a track record of deposit discovery from first principal through to resource definition, advanced studies and mine development. In addition, the team has experience of sourcing the funding required for mining projects via its capital markets expertise and joint venture pedigree.

European jurisdictions - The Erris Resources portfolio comprises mineral licences in areas with proven metallogenic potential, an active mining industry, low political risk, and transparent permitting processes. Erris Resources has a zinc project in Ireland and gold projects in Sweden. New targets in Europe are currently being assessed.

Prospective Property Portfolio - The current portfolio includes the Abbeytown Project, a 15 km trend of discrete lead-zinc-silver prospects, barely explored since the 1980s, wholly reinterpreted after several years of fieldwork, systematic data integration and fresh geological thinking. In Sweden, Erris Resources has a portfolio of gold and polymetallic projects in northern Sweden. The Group are actively looking for new opportunities to expand its portfolio and in February announced that it had applied for eighteen new prospecting licences in an area east of Galway, County Galway, Ireland.

Dynamic Work Programme - Erris has over 10,000 metres of diamond drilling planned for 2018. At the Abbeytown Project in Ireland, a 5,000-metre exploration programme has begun. In Sweden, Phase Two diamond drilling is ongoing at Klippen (gold). A summer drilling campaign will cover Phase Two at Käringberget (zinc-copper-gold), and Phase One drilling at Brännberg. Existing and new targets will continue to be worked up via geochemical, geophysical and geological programmes running throughout the year.

Operational review & outlook

Ireland

The Abbeytown Project consists of six prospecting licences covering a total of 159 km² originally granted in 2013 for a period of six years (subject to periodic renewals), most recently having been renewed on 22 November 2017 for the remainder of the licence periods after the minimum collective expenditure threshold of €90,000 was met for the licences.

Erris has collated and synthesised the historic data and carried out additional exploration work including regional soil sampling, digitising, re-modelling, sampling, re-interpretation and drilling four diamond holes. Erris now believes that Abbeytown is a carbonate hosted replacement deposit, similar to Harberton Bridge or Kilbricken in the Irish Midlands. At Abbeytown, there appears to be strong geochemical zonation with a copper zone at the base, a lead-rich lower zone through to a zinc-lead middle zone and a pyrite-calcite upper zonation or cap. Erris believes the copper mineralisation probably occurs proximal to the source or structure feeding hydrothermal fluids whereas the zinc is precipitated at lower temperatures more distal to the feeder zone.

Erris has drilled four historic holes ER001-ER004, three of which yielded encouraging results and confirmed the previous mineralisation while allowing Erris to develop a new exploration model in the absence of previous core drilling. The Company has costed a total potential of 21,700m of diamond drilling over an eighteen-month period at the Abbeytown Project. Erris plans to drill 5,000m during the Phase 1 drilling programme.

The drilling allocations for the target areas are as follows and will be dependent on the results from the initial Phase 1 drill programme:

Sweden

Erris holds and operates a portfolio of Exploration Permits in Sweden that is funded through the Strategic Alliance with Centerra Gold. The three most strategically important projects are Klippen, Käringberget and Brännberg. Erris also holds other granted or pending permits on early stage targets which have little or no previous exploration work. These include Storklinten, Orrträsket, Skarvsjö, and Gunnarbäcken.

Centerra Gold made elections in respect of Klippen, Käringberget and Brännberg. On each project Centerra is expected to invest US$1,000,000 over two years to earn 51 per cent., of which US$400,000 is spent in Year One, and the remaining US$600,000 is invested in Year Two. Klippen and Käringberget entered into Year Two of the agreement in 2018, and Brännberg into Year One. Centerra Gold will also invest $250,000 in generative exploration in 2018, taking the total to US$1,850,000.

The Klippen project

Work by Erris identified an area of interest with 3.6 km of strike length on which Centerra agreed to fund a drill programme as part of their earn-in. While Klippen has been the subject of multiple exploration programmes in the past, the approach has not been systematic, and the results of different programmes were not effectively tied together by past operators. The Directors believe Erris has compiled and reviewed a great deal of geochemical, geophysical and geological information over the project and have developed promising targets for further investigation.

The Phase 1 drill programme involved drilling of nine angled holes totalling 1,800m with fences of holes to test mineralisation under the previous shallow drilling and trenching which had economic gold intersections. No historic core survives so further drilling is required to update the geological and exploration model. The Phase 1 drill programme and ancillary work was completed in 2017 and cost US$400,000. Centerra has confirmed that it intends to fund an additional US$600,000 in expenditures on the project in 2018, which will include additional exploration drilling.

The Käringberget project

Käringberget is an early stage exploration project. Indications from regional dataset interpretation, geochemistry and alteration mapping and geological and mineralisation observations and similarities with deposits in the area clearly suggest the presence of a mineralising system and good potential for deposit development.

Erris is in the process of completing a work programme to test the zoned alteration and geochemical anomaly at Käringberget. In 2017 Centerra funded a drilling programme to test the zone of anomalous gold and silver rock chip geochemistry and extensive silica-pyrite alteration. As at Klippen, the work on data collation, geological interpretation, review, and planning is underway. The integrated results from the 2017 work programme have encouraged Centerra to confirm that it will fund an additional US$600,000 in expenditures on the project in 2018, which will include geophysical surveys and additional exploration drilling.

The Brännberg project 

Erris Resources views Brännberg as a high priority target given that previous drilling had a high success rate. Twenty one shallow historic holes have been drilled at the property and mineralisation is open at depth and along strike. In January 2018 Centerra elected Brännberg as a DPA, and under the terms of the agreement it may invest US$1,000,000 in exploration funding over two years to earn a 51% interest.

It is clear that Brännberg has not had systematic exploration carried out on the project area in the past. Despite the incomplete work, the cumulative data and the current understanding of controlling features on gold mineralisation in the Skellefteå district makes Brännberg a prospective target.

Financial Review

Erris Resources Plc was incorporated on 21 June 2017. On 1 December 2017, Erris Resources Plc acquired the entire issued share capital of Erris Resources (Exploration) Ltd by way of a share for share exchange. This transaction has been treated as a group reconstruction and has been accounted for using the reverse merger accounting method. Accordingly, the financial information for the current period and comparatives have been presented as if Erris Resources (Exploration) Ltd had been owned by Erris Resources Plc throughout the current and prior periods.

Notwithstanding that the company is a UK Plc admitted to trading on AIM, the company presents its accounts in its functional currency of Euros, since the majority of exploration expenditure is denominated in this currency.

The Group is still at an exploration stage and not yet producing minerals, which would generate commercial income. Under the terms of the Centerra Strategic Alliance Agreement, the group earns a 10% Management Fee on all committed expenditures, which amounted to €0.11m in the period compared with €0.02m in 2016. However, the Group is not expected to report overall profits until it disposes of or is able to profitably commercialise its exploration and development projects.

During the period the Group made an operating loss of €0.55m compared with a profit of €0.49m for the year ended 30 September 2016. This is primarily due to the costs incurred in association with the IPO in the current period, whilst the prior period included the one-off sales of 1% net smelter royalties over its projects in Ireland and Sweden to Osisko that generated revenues of C$0.75m (€0.5m). Exceptional costs include €0.34m of costs related to the IPO, which were paid primarily to third party providers. It also includes a non-cash accounting charge of €0.07m related to the expensing of share options valued under the Black-Scholes method.

The Total Net assets of the Group increased to €5m at 31 December 2017 from €1.13m at 30 September 2016, due primarily to the funds raised at the IPO. Intangible assets increased to €1.04m from €0.72m due to ongoing exploration at the Group's Ireland and Sweden projects. Included within Current Liabilities are the net expenditures under the Strategic Alliance Agreement with Centerra Gold, which show total reimbursed costs for the year of €0.79m (2016: €0.26m) and a year-end creditor that arises due to timing of €0.07m (2016: €0.08m). Other current liabilities increased from €0.065m to €0.27m and relate primarily to IPO fees that were settled immediately after the period end.

The closing cash balance for the Group of €4m, which is significantly higher than €0.5m in the prior year, following the fund raise of £4m before expenses by way of issuing 16,000,000 new shares at a price of 25 pence per share in the December 2017 IPO on the AIM market.

On behalf of the board

Mr J Martin

Director

28 March 2018

Group Statement of Comprehensive Income for the Period Ended 31 December 2017

Group Statement of Changes in Equity for the Period Ended 31 December 2017

Group Statement of Cash Flows for the Period Ended 31 December 2017

Notes to the Financial Statements for the Period Ended 31 December 2017

The following selected notes are extracted from the full Annual Report:

This announcement contains inside information for the purposes of Article 7 of EU Regulation 596/2014

*ENDS*

For further information visit www.errisresources.com or contact:

NotesErris Resources plc (EPIC: ERIS.L) is an AIM quoted, European focussed, discovery driven exploration company that has an established portfolio of zinc assets in Ireland and gold projects in Sweden, which it is looking to further build on. Led by a highly qualified team with extensive corporate and sector experience and supported by Canadian mining majors, Osisko Gold Royalties, which has an 18.9% interest in the Company, and Centerra Gold KB Inc., a wholly owned subsidiary of TSX listed Centerra Gold Inc., Erris' strategy is to create shareholder value through commercial discovery of base or precious metal assets in proven mineral districts and in favourable European jurisdictions.