Rafaella Resources Limited announced that assay results from three exploration diamond drillholes drilled, but never assayed, in 2015 by Valoriza Minería S.L.U. returned high tin grades from cassiterite mineralisation. These results will be included for the ongoing 3D geological model of the vein system and for a maiden JORC compliant Mineral Resource Estimate (MRE) for its 100% owned San Finx tin and tungsten mine. Assay results from 3 deep DDH, drilled by previous owners: Rafaella Resources has received assay data from the three DDH re-coded as 15DDPN01 (PN01), 15DDPN02 (PN02) and 15DDPN03 (PN03) which were drilled by Valoriza with the objective of expanding resources at depth for the underground operation.

A total of 71 samples from the 3 DDH, including QA/QC (blanks, standards and duplicates from both, pulps, and coarse rejects) were submitted to ALS preparation laboratory in Seville. All intercepts above 0.25% cut-off (combined Sn + WO3) have been calculated. True thickness factor has been applied according to the angles measured directly from core.

Cu assay returned an average grade of 0.30% Cu within the 0.25% Sn+WO3 cut-off intervals, suggesting that the mine could generate credits from a by-product sulphide concentrate. The mineralised veins intersected generally correspond with the NE system, showing high core angles, Corrections ranging between 0.50 and 0.95 have been applied for the true thickness factor. Note that for the shallower mineralised veins intersected by DDH 15DDPN01, drilled in the NE extreme of the Pozo Nuevo Zone and that corresponds with the NNE trending Campelo-Silva vein system, the true thickness factor applied was much higher due to the low angle that such veins have been intersected.

The drill assay data from these three holes demonstrates the high nuggetty effect characteristic of this deposit, due to the coarse crystals of wolframite distributed erratically along the quartz veins, compared to the finer grained cassiterite hosted within the greisen alteration halos of the salvages of the quartz veins. This characteristic will be addressed for MRE purposes by considering historical Sn-W production. Underground Mining Development.

3D Model: San Finx' extensive UG development from previous years of underground mining with a total of 8 level maps with galleries and shafts, mostly from Pozo Nuevo and Buenaventura zones, have successfully been modelled in 3D using Deswik mining software by Rafaella's geologists and Asturmine, an external consultancy. Based on the 3D model of the UG development, together with historical geological maps from drifting, a 3D model of the mineralised veins is currently in progress using Leapfrog GEO software. The drilling data has already been included for this purpose.

San Finx Mineralisation Style: Mineralisation at San Finx Sn-W mine is vein type and consists of milky quartz veins hosted mostly in metasediments, showing centimetric muscovite alteration halos (greisen type) with cassiterite crystals of millimetric to centimetric size distributed quite continuously along the contact of the quartz vein and the metasediments within or close to the muscovite halo. The milky quartz veins may contain big wolframite crystals of several centimetres long which are distributed very randomly within the milky quartz matrix of the veins displaying a strong nugget effect, Irregular clusters of chalcopyrite with minor stannite are common within the milky quartz matrix. Concessions and Permits: San Finx holds mining concessions that are valid through until July 2068.

The mine is permitted for operations to level 4, with deeper access pending the approval of an updated mine plan and the award of a water discharge permit. If the water discharge permit is not approved and hence the concession is no longer viable, Valoriza is to undertake full rehabilitation and cover the cost of this exercise.