Herencia Finalises Tranche Two Investment

Herencia Resources plc

Herencia Finalises Tranche Two Investment

and Subscription Agreement signed for

 £1.86 million

Highlights:

· Due Diligence completed and Subscription Agreement signed for GBP£1.86 million funding

· Investment priced at 0.62p per share

· 300 million ordinary shares to be issued to Shining Capital Management

Further to the announcement of 13 November 2013, Herencia Resources plc (AIM:HER), the Chile-focussed mineral exploration and development Company, is pleased to announce that following the completion of the Due Diligence process, Shining Capital Management ("Shining") and Herencia have signed the subscription agreement in relation to Shining's second tranche investment ("Tranche Two Investment") of GBP£1,860,000.

Funds are anticipated to be received by Herencia within the next seven days. Following the receipt of those funds Shining will be issued 300 million new ordinary shares ("Tranche Two Shares") in Herencia at a price of 0.62p per share.

Upon receipt of the funds, application will be made for the Tranche Two Shares to be admitted to trading on AIM.

Shining currently holds 100 million ordinary shares representing approximately 4.7% of the total issued shares of the Company. Following the issue of the 300 million Tranche Two Shares, Shining will hold 400 million ordinary shares representing approximately 16.4% of the total issued shares in the Company.

Managing Director, Graeme Sloan, commented:

"It is extremely pleasing to inform shareholders of the completion of the due diligence and signing of the Subscription Agreement by Shining. We see this as confirmation that Herencia's projects provide investors an outstanding opportunity across a range of quality projects and metals.

The receipt of the Shining funds is a great way to kick start the new-year and allows us to advance all our Chilean projects which will add both value and provide the opportunity for regular news flow in 2014.

The Picachos Project is shaping up as a first-class copper opportunity, Paguanta is well positioned to come on-stream at a time when zinc supply is forecast to tighten, and the Guamanga Project is advancing under the guidance of OZ Minerals.

Despite the many challenges faced during 2013, especially from a global market perspective, we were able to build a strong platform for growth and the attraction of the Shining funds will allow us to progress all projects with the aim of adding further value for all shareholders."

Following the issue of the Tranche Two shares the total number of shares in issue will be 2,443,960,817. There are no shares held in treasury, therefore the total number of voting rights in the Company will be 2,443,960,817. This figure may be used by shareholders in the Company as the denominator for the calculations by which they will determine if they are required to notify their interest in, or a change to their interest under the Disclosure and Transparency Rules.

About Herencia

Herencia Resources plc, is an AIM quoted exploration and development company operating in Chile. The Company has recently completed a Feasibility Study in relation to its 70% owned Paguanta Project, a high grade silver-zinc-lead project located in northern Chile. The Company has also entered into an option to acquire the producing Picachos Copper Project in central Chile. The Company is also seeing the Guamanga Project advance rapidly after entering into a Joint Venture with a wholly owned subsidiary of one of Australia's largest copper miners, OZ Minerals.

About Shining Capital Management

Shining Capital is an investment management company based in Hong Kong. Shining Capital's team of investment professionals is focused on areas within key sectors, including natural resources, which hold potential for long-term superior growth.

For further information, please contact:

Graeme Sloan, Herencia Resources plc +61 8 9481 4204

Katy Mitchell, WH Ireland Limited +44 161 832 2174

Further background details on the Company can be found at www.herenciaresources.com

**ENDS**