Option agreement to invest in TAM Mining Limited

8 August 2016

BLENHEIM NATURAL RESOURCES PLC

("Blenheim" or the "Company")

Option agreement to invest in TAM Mining Limited

Blenheim is pleased to announce that it has entered into a Subscription Option Agreement (the "Agreement") with TAM Mining Limited ("TAM"), a natural resources exploration and development company which holds the exclusive rights, via its local subsidiary Westlumba Minerals Limited, to a large, highly prospective copper/gold project in the North West Province of the Republic of Zambia ("the West Lumba project").

Under the terms of the Agreement, Blenheim will pay £1 for an option to acquire, subject to certain conditions, 7.5% of the fully diluted issued share capital of TAM. As consideration for these shares, Blenheim will use its skills and contacts to assist TAM in raising a minimum of US$5 million. Blenheim will immediately start helping to restructure TAM and its board, and prepare it for investment. Further information about the Agreement and the West Lumba project are set out below.

Blenheim's Chairman Chris Ells, comments, "TAM's West Lumba project is the most promising mineral project we have reviewed over the past two years and we are delighted to work with TAM to provide the commercial and technical management input needed to develop TAM's licence area and to help it raise new investment."

Terms of the Agreement

Under the terms of the Agreement, Blenheim will pay a nominal option fee of £1 and will be granted the option to be issued with ordinary shares in TAM equal to 7.5% of its entire issued share capital, on a fully diluted basis (the "Option"). The Option is exercisable by Blenheim within a period of 6 months of: (i) TAM obtaining an NI 43-101 compliant resource statement; or (ii) 12 months of the date of the Agreement, whichever is sooner (the "Option Period"), subject to TAM successfully raising a minimum of US$5 million by way of loans or subscription shares (the "Funding Condition"). If TAM does not successfully meet the Funding Condition or if the Option is not exercised within the Option Period, the Option will lapse. As consideration for receiving ordinary shares in TAM equal to 7.5% of its fully diluted share capital, the Company will assist TAM in identifying relevant sources of finance during the Option Period. Blenheim will immediately commence a detailed due diligence study of TAM's project and has agreed to provide technical and commercial support to TAM.

Information on the West Lumba project

Through its Zambian subsidiary Westlumba Minerals Limited, TAM holds a 90% interest in a licence area of circa 420 km² in the Northwest Province of Zambia. The licence contains extensive mineralisation of 'iron oxide copper gold' of a style similar to, but much less deeply buried than, that seen at Kitumba, 170km east.

TAM's exploration to date includes 37 diamond drill holes, geological reconnaissance mapping and resistivity profiling. TAM has also acquired data for the area from previous exploration by Vale, a major mining company, which relinquished the area following the 2009 recession. 

Work to date has revealed numerous targets, including an exploration target within the relatively small (3km-long) initial discovery zone, with mineralisation at depths suitable for low-cost open pit mining, open along strike to the east and west and at depth. Field mapping coupled with interpretation of Vale's geophysical data has indicated extensive zones of mineralisation elsewhere.

Ends

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