Erris Resources : Interim Report 30th June 2020

Company Registration No. 10829496 (England and Wales)

ERRIS RESOURCES PLC

UNAUDITED INTERIM CONDENSED FINANCIAL STATEMENTS

FOR THE SIX MONTHS ENDED 30 JUNE 2020

ERRIS RESOURCES PLC

CONTENTS

Chairman's Report	1 - 2
Strategic Report	3 - 5
Directors' Report	6
Corporate Governance Statement	7
Interim Condensed Statement of comprehensive income	8
Interim Condensed Statement of financial position	9
Interim Condensed Statement of changes in equity	10
Interim Condensed Statement of cash flows	11
Notes to the interim condensed financial statements	12 - 17

ERRIS RESOURCES PLC

CHAIRMAN'S STATEMENT

FOR THE SIX MONTHS ENDED 30 JUNE 2020

Chairman's Statement

The first half of 2020 has been an active and important six months for the Company, notwithstanding the onset of the COVID-19 pandemic, which forced Erris to shut down its exploration programmes for a period of time in line with Government guidelines. During this time, and as part of its ongoing corporate strategy, the Board was reviewing projects in low risk jurisdictions internationally with a specific emphasis on finding more advanced assets that are closer to production. We believe this kind of project will work better to the Company's strengths and experience and enable Erris to move further up the value curve and generate better returns for its shareholders in the longer term.

Accordingly, post period end, we were delighted to announce that the Company was in the advanced stages of undertaking the proposed acquisition of 50 per cent. of the issued share capital of Deutsche Lithium GmbH ('the Acquisition'), the principal activity of which is the development of the Zinnwald Lithium Project ('Zinnwald') in southeastern Germany. The Board believes that Zinnwald, which already has a published Feasibility Study and a mining license, presents an excellent opportunity to create value for shareholders. Contemporaneous and conditonal on the Acquisition, the Company intends to undertake an equity fundraise to raise working capital for the enlarged Erris business.

If the Acquisition proceeds, an AIM Admission Document containing full details of the transaction and a Notice of General Meeting for shareholders to approve the transaction will be published. In addition, a resolution will be put forward to shareholders at the EGM to approve a change in the Company's name to Zinnwald Lithium Plc, which the Directors believe better reflects the Company's proposed new corporate strategy. At this stage, there can be no certainty that the Acquisition will be completed.

In regard to the Company's existing assets, the work done at Abbeytown was successful in advancing the project, however, the macro climate in relation to zinc and general market appetite does not currently support any further work at this project for the time being. Additionally, the Company advanced its projects in Scandinavia, particularly Brännberg, but again, investor appetite for these specific projects has been muted. These projects will remain owned by Erris and held in care and maintenance whilst it looks for future funding partners.

The Board believes that its Loch Tay project, whilst already generating promising results and potential drill targets, is too early an exploration stage project on its own to support the costs of being a listed company. The Board believes that the Loch Tay project, on a standalone basis, would be better developed in a private company that can more efficiently utilise its financial resources to advance the project. Accordingly, if the Acquisition proceeds, Erris Gold Resources ("EGR"), which owns the Loch Tay project, will be spun out to the existing shareholders of Erris, who have funded Loch Tay to date. Further details regarding this proposed divestment will be in the AIM Admission Document to be published if the Acquisition proceeds.

Existing Assets

On 15 January, Erris announced that it had concluded due diligence and issued the Option Notice to GreenOre Gold Plc to acquire 80% of the Loch Tay Licence in Perthshire, Central Scotland. Erris has the option to earn 80% of the Project by defining a minimum inferred resource of 250,000 ounces gold, to be defined by an Independent Competent Person by 15 March 2024. The project area comprises 237 sq. km of highly prospective ground within the Grampian Gold Belt, located 43km east of the new Cononish high-grade gold mine.

Early prospecting and mapping during the due diligence period at the Lead Trial, where historic small-scale workings for lead are located, yielded good grades of gold associated with lead and zinc. In February and March, the team commenced further prospecting and a batch of 121 rock samples were submitted to the ALS laboratory in Loughrea, Ireland prior to the commencement of the COVID-19 lockdown on 25 March. The results from the samples submitted yielded some excellent grades of gold including the two highest grade samples with 17.15g/t Au and 14.8g/t Au respectively. These high-grade samples were taken up to 2.9km east of the workings and defined a new high-grade target area called Lead Trial - Dunan.

The team continued to review and compile large amounts of historic data from home during the lockdown period and identified new target areas for subsequent ground truthing and prospecting. On 30 June, the Company announced that it was resuming fieldwork in July and that GreenOre Gold and Erris had agreed to extend the option period by 98 days due to lost time caused by the COVID-19 restrictions.

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ERRIS RESOURCES PLC

CHAIRMAN'S STATEMENT (CONTINUED)

FOR THE SIX MONTHS ENDED 30 JUNE 2020

Based on work done, the Lead Trial target now consists of a 3km mineralised trend of boulders and outcrop with the highest-grade boulders located at the east end. Detailed mapping, soil geochemical surveys and ground magnetic surveys to define the mineralised system and identify drill targets has been planned.

Several other targets are present within the large licence area such as in Glen Almond where alluvial gold and narrow high-grade veins have been located, the Corrie Buidhe mine where high-grade silver was mined historically and gold has been sampled and Invergeldie where gold-bearing arsenopyrite mineralisation was drilled historically but where there are also stream geochemical anomalies associated with felsites. The next step is to systematically review these targets areas and other gold occurrences within the licence area to prioritise and upgrade prospective targets.

The sterling gold price reached a new high of £1,579.13 /oz on 6 August 2020 and investor interest in the gold mining sector remains high.

The Company announced on 2 December 2019 that Centerra Gold had terminated its strategic alliance with Erris and Centerra would not maintain any further interest in the permits in Sweden and Finland. In early 2020, Erris took the decision to surrender the Finland permits, close its Finnish subsidiary and retain only key permits in Sweden.

In Sweden, the Company maintains the Brännberg gold project, which consists of three core exploration permits in the Skellefte Mining District. Gold mineralisation has been confirmed by drilling with excellent potential for a major gold system. Mineralisation extends from surface with best results including 17.2m @ 1.93g/t Au and 0.26% Cu from 160.90m-178.10m in drill hole BB004. The mineralisation is open at depth and the project is available for acquisition or joint venture. In Norway the Company also retains two gold and base metal projects in the north of the country with a total of 50sq.km in five permits.

In Ireland, Erris maintains five prospecting licences ("PLs"), renewed in August 2020 for a further six years, over the 100%-owned Abbeytown Project, including the historic Abbeytown mine, in County Sligo. Given the current challenging market conditions for the zinc sector and in order to preserve its financial resources, no work was carried out on the project in the first half of 2020. For these reasons, with regard to its early stage Galway Project the team has chosen to surrender the Galway PLs. The focus in the near term remains to seek a partner for the development of the Abbeytown Project.

Financials

The Company continues to maintain its extremely disciplined approach to expenditure and cash management and as such is well funded for the remainder of 2020 with a €1.0m cash position as at the date of this report. On 5 May, Erris took advantage of strong investor interest in the Company to raise an additional £0.33 million of equity funding to bolster its cash position.

Outlook

Having evaluated several new project opportunities in our quest to find a new core project and as outlined above, we are hopeful that the proposed acquisition of Zinnwald will progress to completion; this will see the Company transformed with the potential to be a major supplier of high value lithium products to Europe's rapidly growing electric vehicle and energy storage market. We look forward to updating shareholders further on this exciting opportunity.

Anton du Plessis

Non-Executive Chairman

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