Prospero Sampling Exercise

7 October 2015

Hunter Resources plc

("Hunter" or the "Company")

(AIM: HUN)

RECENT RESULTS FROM THE COMPANY'S EXPLORATION PROGRAMME AT PROSPERO (PAMPAMALI NORTH)

The Company is pleased to announce the results from its initial exploration programme at the recently acquired Prospero concessions, immediately north of Pampamali, its high-grade gold, silver and base metal project in Peru.

PROSPERO HIGHLIGHTS

· Numerous anomalous prospects identified with alteration, geological and geochemical characteristics typical of both epithermal and porphyry style precious and base metal mineralisation.

· Prospero appears to represent an extension of the nearby Pampamali geological system while the geochemistry suggests it is higher in the system with the presence of more base metals.

· 212 samples were submitted for analysis at ALS Laboratories, Peru

· Identification by Hunter of new prospects exhibiting prominent alteration and containing anomalous to high grades of gold, copper, silver and/or zinc. The defined targets include:

· Strong Au anomalism in veins in the south east around the epithermal Claudio prospect and potentially along same vein containing the Gaviota prospect in Pampamali to the south.

· Best results: 6.04 g/t Au, 7.85 g/t Ag, 0.76% Cu

3.64 g/t Au, 11.15 g/t Ag, 1.65% Cu

2.06 g/t Au, 1.34 g/t Ag, 0.04% Cu

· Mapped and sampled epithermal anomalies in central-east of concessions with best results from Horatio and Titania prospects.

· Best results: Horatio - 3.64 g/t Au, 11.15 g/t Ag, 0.13% Cu

Titania - 0.25 g/t Au, 145 g/t Ag, 9.85% Cu

0.02 g/t Au, 1.63 g/t Ag, 2.93% Cu

· Mapped and sampled porphyry style anomalies in central portion of concessions.

· Best results: Low order, anomalous gold with elevated copper and zinc

Prospero

The 6 Prospero project concessions are owned 100% by Hunter's wholly owned subsidiary, Gold Hunter SAC and cover 5,000 hectares, located approximately 500km from Lima, Peru. The Prospero concessions are approximately 1km north west and along strike of Hunter's 51% owned Pampamali Project and from where the trend of mineralisation is seen to extend into the Prospero area.

Prospero and Pampamali are located within a prospective silver-gold-base metal belt. The Compania de Minas Buenaventura owned Julcani silver-base metal mine lies approximately 25 km north west of the Prospero and Pampamali Projects and has been operating since 1937.  

Simon Hunt, Executive Chairman of Hunter, said "We are pleased and encouraged with the initial findings received from our recent reconnaissance sampling programme at Prospero leases just north of our Pampamali project. This limited program confirms the extension of the epithermal system we are encountering at Pampamali. It also suggests that Prospero is situated stratigraphically higher in the mineralised sequence and consequently encounters a wider variety of mineral assemblages including base metals. This latest program represents only a small portion of the Prospero area but provides confidence in extending the study area and following up several anomalous targets."

Exploration results

During August and September, the Prospero concessions were visited for initial exploration. 212 samples were taken and sent for multi-element analysis. The results of the analyses are encouraging and indicate strong possibility for high grade epithermal, skarn, and manto replacement style deposits as well as large copper porphyries.

In the month that was spent in the field, 18 targets were explored with varying levels of geochemical anomalies.

The Prospero area appears to have potential for gold and base metal mineralization and the recognized occurrences to date appear to be fairly evenly distributed. More targets should be identified following further exploration.

Table 1 summarises the highlights of sampling the Prospero anomalies while Figures 1 and 2 show the prospect locations and some sampling results.

The predominant structural trends in the Prospero area are a series of north-south and northwest-southeast veins. This is essentially the same structural setting as the Pampamali area. Two of the main faults from Pampamali project appear to cross into the Prospero area, including the structure containing the mineralized Gaviota and Piscocota veins (Figure 3).

Several targets are located within the Claudio-Bianca area in south east Prospero, near a juncture of the north-south structure containing the Gaviota and a northwest-southeast regional fault. This area appears to replicate the setting at Gaviota and may be key for more Pampamali-style mineralization within the Prospero concessions.

The mineralized occurrences in the Prospero area can be categorized into epithermal and porphyry styles. The epithermal style occurrences, in most instances, appear to be spatially related to porphyritic intrusions which suggests not just a continuation of the mineralised epithermal settings seen at Pampampali but that at surface they are stratigraphically higher in the geological system.

Targets - prospect ranking

Prospects were ranked for future exploration based on the following factors and their presence at or near the vicinity of the prospect:

1. Existence of potential source of mineralizing fluids (eg: Proximity to a porphyry)

2. Presence of Structure/Plumbing that could provide path for mineralising fluids (e.g. Regional structures and intersection of structures)

3. Hydrothermal alteration and veining

4. Potential Trap (Ie: a geological feature or structure or chemical barrier that could entrap migrating mineralizing fluids)

5. Geochemistry anomalies demonstrating presence of metals (Au, Cu, Mo, Ag, As, and base metals)

Based on those criteria and following assessment in the field prospects were ranked as shown in Table 2. These rankings will help guide future work programs at Prospero.

Future exploration

Hunter intends to extend the area of mapping and follow up the prospects outlined in Table 2. Large and scale mapping is needed, with focus on limestones and other reactive host rocks. Mapping of these units combined with observations of hydrothermal fluid bearing structures will develop targets with potential to be large replacement style bodies.

In particular,

1. Mapping, geophysics, and further sampling is being considered for Titania, Miranda and Puck. These targets are the most accessible and have the highest probability of returning good results.

2. Follow up sampling will occur in the Claudio-Bianco area as well as an incorporation of the findings from work completed at Pampamali over the Gaviota vein mineralisations.

3. We will investigate the use of ASTER photography and analysis to better guide fieldwork and identify additional target areas.

Competent Person

In accordance with the guidelines of the AIM Market of the London Stock Exchange, Andrew Richards BSc (Hons), DipEd MAusIMM MAIG MSEG GAICD, a Director of Hunter and a qualified geologist with over thirty years of experience in the mining industry, is the qualified person as defined in the London Stock Exchange's Guidance Note for Mining and Oil and Gas companies. Mr. Richards has reviewed and approved the technical information contained in this announcement and has relied on primary information supplied by staff and third party consultants in carrying out his review.

For further information, please contact:

Additional Information

A copy of this announcement with mapping of lithology, veins and sample locations, shown with the Hunter Resources concessions can be viewed at www.hunter-resources.com, with the references as shown above.