The Board of Xtract Resources Plc announced an updated Mineral Resource Estimate for the Racecourse Prospect, on the Bushranger Copper-Gold Project in central New South Wales, Australia. Utilising all the data from the recently completed Phase 2 diamond drilling programme, independent consultants, Measured Group Pty Limited ("Measured Group"), have prepared an updated Mineral Resource Estimate for the Racecourse deposit. Following the completion of the Phase 2 drilling programme on the Bushranger Project, a new 3-dimensional geological model was defined for the Racecourse Prospect.

Geochemical assay data from the historical drilling, Phase 1 and Phase 2 Xtract drilling programmes, along with the new Racecourse Prospect geological model, were used to prepare an updated Mineral Resource estimate for the Racecourse Prospect. The updated Mineral Resource estimate, which has been prepared at different cut-off grades by independent consultants, Measured Group, based in Brisbane, Australia. Measured Group have reported a Mineral Resource estimate of512Mt @ 0.22% CuEq, reported at a cut-off of 0.1% CuEq and classified as Indicated and Inferred in accordance with JORC (2012).

Within the overall Racecourse Mineral Resource, 50Mt @ 0.25%CuEq has been classified as Indicated and 462Mt @ 0.21% CuEq is classified as Inferred in accordance with JORC (2012). A higher-grade core of the Racecourse mineralisation extends from surface to relatively shallow depth and contains191Mt @ 0.33% CuEq, reported at a cut-off of 0.2% CuEq, which is equivalent to the cut-off used by Alkane Resources Limited for the maiden Mineral Resource for the Boda Prospect. This shallow higher-grade section of the Racecourse prospect is expected to positively impact the economics of an open pit mining operation, by allowing cash flows to be maximised in the first 8 years of a mining operation, assuming a mining rate of circa 25Mtpa.

The majority of the updated 512Mt Racecourse Mineral Resource is expected to occur within depths amenable to open pit mining methods, given that an open pit mining study completed by independent consultants, Optimal Mining, in July 2021, concluded that the Racecourse copper-gold mineralisation could potentially be economically extracted via open pit mining to a depth of 600m. The updated Racecourse Indicated and Inferred Mineral Resource compares to the previous April 2018 Inferred Mineral Resource of71Mt @ 0.44% Cu and 0.064g/t Au at a cut-off grade of 0.3% Cu, which was based on a much smaller set of drill intercepts. The updated Mineral Resource uses a cut-off grade of 0.1% Cu, based on analysis of the Grade vs Tonnage curve, higher prevailing commodity prices, a large moderate grade deposit envelope based on the additional drilling by Xtract and the 2021 Optimal Miningreport which suggested that mining to 0.15% Cu cut-off could produce a positive economic return - this report was prepared before the new drill data was available.

Xtract is currently completing a geological model for the Ascot Prospect, located approximately 1.5km south of the Racecourse Prospect. Upon completion of the Ascot Prospect geological model, the Company will engage Measured Group to complete a Mineral Resource estimate for the copper-gold mineralisation at Ascot. This will be the first Mineral Resource defined for the Ascot Prospect, following the new discovery in December 2021.

The Company anticipates that the Ascot Mineral Resource estimate will be completed before the end of 2022. In July 2021, Xtract contracted Optimal Mining to complete an open pit mining study which examined the economics of mining the Racecourse Mineral Resource based on the historic April 2018 Inferred Mineral Resource and the deposit outline as it was defined in July 2021. Once the Ascot Prospect Mineral Resource Estimate has been defined, Xtract will again contract Optimal Mining and Measured Group to update the open pit mining study based upon the newly updated Racecourse Mineral Resource and to also utilise the maiden Mineral Resource for the Ascot Prospect.

This open pit mining study will examine the economics of a 25Mtpa open pit mining operation. Xtract estimates that the update to the open pit mining study will be completed early in 2023.