Paguanta Project-Schedule & Funding Update

04 June 2013

Herencia Resources plc

Paguanta Project - Schedule and Funding Update

Herencia Resources plc ("Herencia" or "the Company"), the Chile-focussed mineral exploration and development company, announced on 31st May the positive results of the Feasibility Study at its flagship Paguanta zinc-silver project.

At this time, Herencia reiterates the anticipated timetable to achieve both permitting for the project and the options available to the Company to fund the project through development and into production.

Project Timeline

Based on the results of the Feasibility Study and previous work undertaken by the Company, the following timelines have been achieved or are being targeted:

• Feasibility Study completed and announced to the market Achieved

• Lodgement of Mine Permit Application (EIS) 2H 2013

• Underground Design Optimisation 3rdQtr2013

• Funding and Concentrate Off-take negotiations 2H2013 to 1H2014

• Ongoing Engineering/Infrastructure/Supply/Design Works 2H2013 to 2H2014

• Permitting Approval (estimated) 2H2014

• JV & Board Approval for Mine Development (Investment decision) 2H2014

The above timetable is provisional, subject to Board/JV approvals, receipt of permits & achievement of project milestones.

The Project schedule currently targets mine construction potentially commencing in the second half of 2014 with production commencing in 2015.

Funding Options

At the point that financing to develop the mine becomes necessary, there are a variety of funding options available to the company. Herencia will look at a mixture of these options, which could include: Silver Stream financing, negotiating an off-take agreement with a major partner, mezzanine finance, conventional debt or possible raising fresh equity from our shareholders.

It should be noted that Herencia's share of the Project funding will only be required once approval of the Project EIS is received from the regulatory agencies. At this stage we are expecting approval during 2H2014. The Directors of Herencia will consider all of the funding options outlined above, in an effort to minimise dilution as we move toward project development.

Graeme Sloan, Managing Director said,

"We are absolutely delighted with the positive results from the Feasibility Study, especially when you factor in the upside potential identified during the study period, you can see why we are excited. Importantly, given the quality of the Paguanta project, we see several options open to us to fund our share; albeit the funds will not be necessary until after the EIS approval is received. Identifying funding options and delivering a positive Feasibility study on time, are very important steps for the Company in our endeavour to continue adding value for all our shareholders as we move forward."

For further information, please contact:

Graeme Sloan, Herencia Resources plc +61 8 9481 4204

Katy Mitchell, WH Ireland Limited +44 161 832 2174

Simon Courtenay/Abigail Genis, Broker Profile +44 207 448 3244

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

**ENDS**