Further IGS Investment

5 August 2016

BLENHEIM NATURAL RESOURCES PLC

("Blenheim" or the "Company")

Further IGS investment

Blenheim is pleased to announce that it has agreed to subscribe for 120,000 ordinary shares of £0.01 each ("IGS Shares") in the capital of IGS (International Geoscience Services) Limited ("IGS"), for an aggregate consideration of £120,000, as part of a placing by IGS to its existing shareholders of 300,487 IGS Shares at a price of £1 per share (the "IGS Placing").

The proceeds of the IGS Placing will be used principally to advance the development of Xplore, IGS's artificial intelligence software for the identification of geological prospects.

Mark Parker, Non-executive Director of Blenheim and an exploration specialist, commented: "Xplore is a cutting-edge system for picking targets from geoscientific data and maps, using a unique knowledge-based approach. It has built-in models for a wide range of commodities in a variety of geological settings, based on rules developed by IGS's experts and their colleagues in the British Geological Survey (BGS). Xplore's power to generate prospectivity maps has been critically acclaimed by several independent groups.

"The funds now being raised will help to commercialise the system and will allow further development of Xplore to include a wider range of inputs and models. IGS has Blenheim's full support in these developments and in the expansion of its profitable global consulting business. Blenheim sees IGS as a key investment, which, we hope, will deliver value to shareholders through capital gains and future dividends."

Details of the Company's participation in the IGS Placing

Blenheim announced the acquisition of 27.1% of the issued capital of IGS on 8 February 2016 and the Company has now agreed to subscribe for a further 120,000 newly issued IGS Shares. Pursuant to the IGS Placing, Blenheim will make an immediate payment of £60,000, being 50% of the subscription price, with the final 50% of the subscription price due upon call by IGS no later than 30 November 2016. The IGS Shares will initially be issued partly paid, will carry full voting rights and will be allotted at the next IGS board meeting, anticipated to be on or around 9 September 2016. The initial payment of £60,000 is repayable to Blenheim should the allotment of IGS Shares not proceed. Once the partly paid IGS Shares are issued, Blenheim's holding in IGS will increase to 30.1%. IGS's unaudited final accounts for the year ended 31 December 2015 show a profit before tax of approximately £225k and net assets of approximately £630k.

David Ovadia MBE, a Non-executive Director on the Board of Blenheim, and current Chairman of IGS, currently has a shareholding in IGS representing 10.1% of its issued share capital. David Ovadia is also intending to participate in the placing, subscribing for 5,000 IGS Shares. Following the issue of the partly paid IGS Shares, David Ovadia's holding in IGS will be reduced to 8.1%.

For further information please contact: