High-grade copper hits from Picachos Project

Herencia Resources plc

High-grade copper hits keep coming

from the Picachos Project

(Silver grades boost potential revenue stream!)

Highlights

· Final drill assay results received from the Picachos Copper Project drill program in Chile

· High grade copper assays keep coming from the Picachos Project (with silver in every interval). Significant down-hole results include:

Hole PP14020 18m at 1.33% copper and 6.1g/t silver from 60m including;

ü 10m at 2.04% copper and 8.5g/t silver from 66m

Hole PP14021 5m at 1.36% copper and 15g/t silver from 25m; and

18m at 1.0% copper and 7.8g/t silver from 76m including;

ü 10m at 1.68% copper and 10.3g/t silver from 79m

ü 4m at 2.30% copper and 14.8g/t silver from 81m

Hole PP14025 6m at 1.34% copper and 15.8g/t silver from 47m including;

ü 2m at 2.67% copper and 38g/t silver from 50m; and

ü 5m at 1.06% copper and 9.8g/t silver from 77m;

Hole PP14027 11m at 1.18% copper and 5.9g/t silver from 72m including;

ü 7m at 1.53% copper and 7.3g/t silver from 76m

Hole PP14028 20m at 0.89% copper and 8.3g/t silver from 62m including;

ü 3m at 1.41% copper and 15.7g/t silver from 63m

ü 6m at 1.49% copper and 11g/t silver from 75m

Hole PP14017 4m at 1.10% copper and 11g/t silver from 9m;

3m at 1.60% copper and 10.3g/t silver from 41m;

5m at 1.29% copper and 8.4g/t silver from 73m

Herencia Resources plc (AIM:HER), the Chile-focussed mineral exploration and development Company, is pleased to announce further high-grade copper assay results from drilling at its advanced Picachos Copper Project ("Picachos" or the "Project") in northern Chile, plus significant silver assays from the same program. The results are the final assays from our inaugural 3,540 meter drill program at Picachos.

The company will now analyse all data with the view to establishing a preliminary geological model from which the next stage of the Picachos development will be planned. Given the high number of shallow and high grade intersections seen throughout this program it is possible that the Picachos Project could support multiple open pits to provide operational flexibility - an important consideration in the mine planning process.

The shallow nature of the mineralisation also lends itself to quick and cost effective access to ore.

The most recent assay results include:

Hole PP14020 18m at 1.33% copper and 6.1g/t silver from 60m including;

ü 10m at 2.04% copper and 8.5g/t silver from 66m

Hole PP14021 5m at 1.36% copper and 15g/t silver from 25m; and

18m at 1.0% copper and 7.8g/t silver from 76m including;

ü 10m at 1.68% copper and 10.3g/t silver from 79m

ü 4m at 2.30% copper and 14.8g/t silver from 81m

Hole PP14025 6m at 1.34% copper and 15.8g/t silver from 47m including;

ü 2m at 2.67% copper and 38g/t silver from 50m; and

5m at 1.06% copper and 9.8g/t silver from 77m;

Hole PP14027 11m at 1.18% copper and 5.9g/t silver from 72m including;

ü 7m at 1.53% copper and 7.3g/t silver from 76m

Hole PP14028 20m at 0.89% copper and 8.3g/t silver from 62m including;

ü 3m at 1.41% copper and 15.7g/t silver from 63m

ü 6m at 1.49% copper and 11g/t silver from 75m

Hole PP14017 4m at 1.10% copper and 11g/t silver from 9m;

3m at 1.60% copper and 10.3g/t silver from 41m;

5m at 1.29% copper and 8.4g/t silver from 73m

Hole PP14018 15m at 0.89% copper and 7.66g/t silver from 64m including:

ü 4m at 1.67% copper and 13.5g/t silver from 75m

Hole PP14024 9m at 0.97% copper and 5.4g/t silver from 41m

Hole PP14029 17m at 0.80% copper and 3.5g/t silver from 13m including:

ü 5m at 1.16% copper and 6.2g/t silver from 24m

Managing Director, Graeme Sloan, commented on the results above:

"These high-grade copper results are a continuation of the great results announced over the last four weeks and clearly demonstrate that Picachos is not a 'one-hole' wonder, but rather a high grade copper project with excellent tonnage potential.

Picachos has already delivered multiple wide, high grade intersections including 91m at 1.42% copper, 45m at 1.70% copper and now 18m at 1.33% copper backed up by numerous additional zones of broad plus 1% copper intercepts, all of which add to the overall picture of what could be a very special project.

These latest results are close to the surface and it is important to note that just about every zone targeted by our drill program achieved shallow high grade copper hits.

In addition to the copper grades we are now seeing silver results coming through from the assay laboratory, which range up to 38g/t. These are significant values as they potentially add to the low-cost theme at Picachos, whereby silver credits may cover a significant percentage of future mining costs.

I believe Picachos can potentially be developed quickly, with a very low capital cost. Any credit from a silver by-product will just lower what we already believe will be a low operating cost environment, given the shallow open pit-able nature of the mineralisation."

About the Picachos Project

The Picachos Project is located approximately 50km south east of the coastal city of La Serena, 8km west of both the existing Andacollo copper-gold project operated by Teck Resources and the mining town of Andacollo (population approximately 10,000 people), and 10km south of the privately owned Tambillos copper mine. The Project is very well positioned for infrastructure with existing high voltage power located approximately 3km east of the Project area and serviced by two all-weather access roads.

Small scale mining is currently being undertaken by private miners via small open pit and underground mining operations. Ore is being trucked to a Chilean government owned processing plant (ENAMI plant) for processing. This mining will continue up until such time as the Option to fully acquire Picachos is exercised (at Herencia's discretion) and is seen by the Company as an excellent mechanism to achieve geological and grade data across many zones of mineralisation.

A review of available data and Herencia's own geological programs has confirmed multiple zones of mineralisation with a combined strike length of over 8km contained within the Project area. In some areas the close relationship of these zones coupled with multiple occurrences of out-cropping wide zones of mineralisation, highlights the excellent potential for large scale open pit mining to take place at Picachos. Historic mining has focused mainly around the high grade structures, however in some areas the mantos have been mined up to 50m wide. Mineralisation generally commences from one to five metres below the surface and appears open at depth.

About Herencia

Herencia Resources plc, is an AIM quoted exploration and development company operating in Chile. In addition to the Picachos Copper Project, the Company has a Joint Venture with OZ Minerals at the Guamanga Project where drilling is scheduled to commence this quarter and it has 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's corporate office is located in Perth and the main technical and management office is located in Santiago, Chile where it has been operating for over eight years.

For further information, please contact:

Graeme Sloan, Herencia Resources plc +61 8 9481 4204

Katy Mitchell, WH Ireland Limited +44 161 832 2174

References in this announcement to exploration results and potential have been approved for release by Mr Graeme Sloan (BAppSc Mining Engineering WASM) and Mr Antonio Valverde (Bsc Geology Universidad Complutense de Madrid), who have more than 20 years relevant experience in the field of activity concerned. Mr Sloan is a Member of the Australasian Institute of Mining and Metallurgy. Mr Sloan and Mr Valverde have consented to the inclusion of the material in the form and context in which it appears.

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

**ENDS** 

Appendix 1 - Significant Laboratory Assay Results from 2014 Picachos Drilling Program:

(All widths stated are down-hole intersections)

· All samples assayed by Andes Analytical Assay Ltda. Chile

· Crushing all sample 80% < 2mm; split to 0.5 Kg; and powdered 95% < 105 µm

· Total Copper Cu-4A-HF AAS1E01 (4 acid near total digestion and atomic absorption, 0.01 - 40%)

· Silver - ICP AES HF22 method

· Hole ID co-ordinate grid is WGS84 UTM Zone 19S

· Shaded results the subject of this RNS