Prospecting Rights Renewed Along Strike of Mowana

Cradle Arc plc / EPIC: CRA.L / Market: AIM / Sector: Mining

14 September 2018

Cradle Arc plc

("Cradle Arc" or the "Company")

Renewal of Prospecting Rights Along Strike of Mowana Deposit

Cradle Arc (AIM: CRA), the African focused base and precious metals exploration and production company, is pleased to announce that it has renewed Prospecting Licences to the north of its flagship Mowana Copper Mine in Botswana, along the same Bushman Lineament that hosts the current JORC compliant resource estimate for Mowana. These two renewals have been granted further to the applications made to the Ministry of Minerals, Energy and Water Resources ("MMEW") in Botswana as referred to in section 5 of Part I of the Company's admission document published on 18 January 2018.

Highlights

· Renewal of Prospecting Licences PL33/2005 and PL180/2008 granted by the MMEW in Botswana and valid for a period of two years

· Regional geophysics by previous owners shows the shear zone extends through both tenements

· Potential combined strike length increased to 36km from the current 5km within the Mowana mining licence area which hosts the existing Measured and Indicated resource of 55.0Mt at 1.17% Cu for 640,000 tonnes of contained copper and Inferred resource of 20.0Mt at 1.08% Cu for 220,000 tonnes of contained copper

· Subject to financing, the Company's proposed work plan includes:

o Further geophysics to extend through the northernmost PL180/2008 permit area

o Followed by a maiden drilling programme with the objective of proving mineralisation within the known structure

· To date, the northernmost drill holes within the Mowana licence area, at the Mowana North Extension, returned high grade intercepts, namely:

o Hole MWN007 - 50m @ 2.11%TCu from 667m depth (including 2m @ 9.13%TCu)

o Hole MWN025 - 19.28m @ 2.94%TCu from 272.38m

· Hole DPH1, drilled in 2011, and located just north of the Company's current mining activity at the Mowana open pit successfully proved that mineralisation extended down to 900m

Kevin van Wouw, CEO of Cradle Arc, commented:

"Gaining renewed access to this vast piece of additional exploration ground is an exciting result for the Company. Historical regional geophysics show that the shear zone passes through both of the renewed permits, and the Board believes that the likelihood of the structure continuing to be mineralised is very high.

"When this significant strike length is enhanced by evidence from our planned deep drilling in due course, there is clearly significant potential for future underground workings and a substantial mine life for Mowana."

Further information

The PL33/2005 and PL180/2008 prospecting licences are located immediately north and along strike of the existing Mowana copper mine in Botswana.

Both permits are valid for two years (until 30 September 2020) and are located over the Bushman lineament, a regional structure which hosts the existing Mowana Copper Mine resource.

Historical exploration work performed over part of this area comprises ground magnetic surveys completed over PL33/2005 in 2014-2015 by African Copper plc. The ground magnetic surveys yielded positive results and showed that the Bushmen lineament extends into the licence area and trends in a NNE-SSW direction along strike from Mowana.

This historical work demonstrates that the structural trend continues and serves to increase the Company's understanding of the lineament.

Cradle Arc plans to conduct further geophysics in due course to extend through the PL180/2008 permit area, followed by a maiden drilling programme with the objective of proving mineralisation within the known structure.

To date, the Bushman lineament has only been tested as far as the Mowana North Extension, where high-grade downhole intercepts such as 50m @ 2.11%TCu from 667m in hole MWN007 (including 2m@ 9.13%TCu) and 19.28m @ 2.94%Tcu from 272.38m in hole MWN025, coincident with the NNE-SSW geophysical structural trend that hosts the Mowana Mine.

The North Extension currently forms the majority of the existing Inferred resource estimate, with future drilling planned to upgrade it to the Indicated and Measured categories. The mineralisation is open along strike towards the abovementioned renewed prospecting licences and Cradle Arc looks forward to drill testing this structure in due course.

The current 5km of strike lies within 20km of known geophysical structures (the ground magnetics at PL33/2005) and a total of 36km strike potential across the existing mining and prospecting licences combined.

Hole DPH1, located just to the north of the Company's current mining activities, is a deep, vertical diamond hole, which was drilled in 2011, to test the underground potential of the Mowana Deposit. Hole DPH1 was successfully drilled to a depth of 1,270m, with mineralisation proven in excess of 900m. Multiple other historical diamond drill holes have intersected the mineralisation trend at depth and all indicate continuation of copper grades hosted by sulphides.

Kevin van Wouw, the Company's CEO and a Fellow of the South African Institute of Mining and Metallurgy, has reviewed and approved the technical information contained within this announcement. Mr van Wouw has sufficient experience relevant to the style of mineralisation and type of deposit under consideration and to the activity that he is undertaking and meets the criteria for a qualified person under both the requirements of the JORC Code and the AIM guidance note for mining and oil & gas companies. Mr van Wouw has reviewed this announcement and consents to the inclusion in this announcement of the matters based on his information in the form and context in which they appear.

**ENDS**

For further information on the Company, please visit www.cradlearc.com or contact:

This announcement contains inside information for the purposes of Article 7 of Regulation (EU) 596/2014.

About Cradle Arc

AIM-quoted Cradle Arc plc is the 60 per cent. owner of the Mowana copper mine in Botswana, an operational open pit mine and processing facility located in the north-east of the country, approximately 120 km northwest of Francistown.

The Company recently released a maiden open pit ore reserve estimate (Proved and Probable) of 31.8 Mt at 1.17% Cu for 370,800 tonnes contained copper , based on a Dense Media Separation (DMS) mine plan.