REG - Kendrick Resources - Teufelskuppe high-Grade Drill Results

Kendrick ResourcesAnnouncement

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RNS Number : 3780E  Kendrick Resources PLC  15 May 2026

Kendrick Resources Plc

("Kendrick" or "the Company")

Teufelskuppe high-Grade Drill Results

 

Kendrick Resources ("Kendrick" or the "Company") is pleased to report strong
new drilling and pXRF sampling results from the Teufelskuppe ("TK") rare earth
project in Namibia, where the Company holds a 70% earn-in interest through its
agreement with Bonya Exploration Pty Namibia. The latest results further
strengthen TK's drive towards a potentially significant, high-grade rare earth
development opportunity.

 

Highlights

·    New 112m diamond drill hole at TK2 returned a weighted mean 3.03 wt%
TREO, including more than 17m above 4.0 wt% from pXRF analysis

·    Surface sampling across TK1 to TK7 confirms strong average TREO grade
of 3.12 wt% from 295 samples

·    Peak surface TREO grade at TK1A reached 4.79 wt%, reinforcing
exceptional near-surface mineralisation

·    High-value Nd and Pr make up around 25% of the TREO basket,
supporting strategic product exposure

·    Combined drilling, sampling and mineralogy continue to support the
case for a large-scale, high-grade rare earth project

·    Development work is accelerating as Kendrick advances TK toward
resource definition

 

Recent work has outlined an in-house surface tonnage estimate of 14Mt at an
average grade of 3.12 wt% TREO, with standout zones delivering bonanza surface
grades of up to 4.79 wt%. These results, combined with favourable rare earth
distribution and growing technical confidence, highlight the scale and quality
emerging across the TK complex.

The Company is now extending that momentum through drilling at TK2, targeting
depth continuity beneath one of several prominent carbonatite bodies across
the project area. The new borehole results add compelling evidence of
mineralisation continuing at depth and support Kendrick's drive to advance
Teufelskuppe toward a maiden JORC resource and development studies.

 

 

Chairman of Kendrick Resources, Colin Bird commented "This is more
verification that the very large surface expressions of the TK carbonatite
contain similar grades supporting our prognosis of continuity throughout the
TK complex. It is important to note that the above surface tonnage estimated
for TK is very close to that of the Mt Pass deposit whilst Kendrick has yet to
include any tonnage estimate for sub-surface mineralisation at TK and has
taken no account of the Kieshöhe tonnage potential.  Our prognosis that this
is a potential top tier world class project is being justified with every
technical step we take. The commissioning of a Reverse Circulation drill
programme will significantly accelerate the programme and confirm our
expectations as will continued surface trenching and sampling. We will keep
the market informed as we receive results on a regular basis".

 

 

 

Background

The Company provides details of an ongoing channel sampling programme that,
when completed, is expected to significantly expand the 2018 database
inherited from Bonya. Continuous channel samples (ca.10 cm deep, ca. 5 cm
wide) are being collected across all the outcropping carbonatite bodies that
contribute to the recent tonnage estimate. Each will be field appraised by
pXRF analysis before laboratory assay confirmation.

 

Table 1: Mean (wt%) * and Range (wt%) ** of Principal LREO values for

                     Carbonatites from Outcrops TK1 -TK7
(2018 sampling)

 

 Whole Complex     No.

 Ore            Samples   La(2)O(3)   Ce(2)O(3)   Pr(2)O(3)   Nd(2)O(3)   Sm(2)O(3)   SLREO

 Mean(1)        295       0.75        1.30        0.14        0.60        0.07        3.12
 Minimum(2)     295       0.25        0.52        0.06        0.23        0.05        1.23
 Maximum(2)     295       1.97        3.56        0.36        1.18        0.09        7.32

 TK1(1)         53        1.08        2.09        0.23        0.83        0.08        4.47
 TK2(1)         46        1.04        1.82        0.20        0.76        0.09        4.13
 TK3 (1)        32        0.67        1.25        0.13        0.45        0.05        2.68
 TK4 (1)        115       0.59        1.06        0.11        0.39        0.05        2.35
 TK5 (1)        18        0.64        1.17        0.19        0.43        0.06        2.70
 TK6 (1)        7         0.74        1.52        0.17        0.65        0.09        3.39
 TK7 (1)        14        0.64        1.23        0.13        0.49        0.06        2.78

 

 

Note 1 and 2: excluding the HREOs - Y, Eu, Gd, Tb and Dy

     SLREO = (La(2)O(3)+Ce(2)O(3)+Pr(2)O(3)+Nd(2)O(3) +Sm(2)O(3))

 

Borehole Sampling

Since the transaction with Bonya, high REE grades have been confirmed at depth
with inherited borehole TWDD001 at TK1A ending in mineralisation at a grade of
6.1 wt% TREO (as announced on 13 March 2026). The Company now reports very
significant REE grades from a second borehole located at TW2, 300m NW of TK1A.
Data from the TK2 borehole using a 1% wt% cut-off grade are shown in Table 2
with a weighted mean TREO abundance of 3.03 wt%.

This reflects the high-grade segments in the deeper sections of the core
profile (42-112m). Mineralised interval 42 to 46m returned a bonanza grade of
10.47 wt% TREO. Even adopting a very high cut-off grade (over >1m) of 4%,
17m of the TK2 core classifies as carbonatite-bearing dyke of exceptional
grade, with a peak 7.25m section at 5.1% wt%. Average Praseodymium (Pr) and
Neodymium (Nd) grades of 0.16 wt% and 0.54 wt% respectively are also high and
consistent with the ca.25% contribution to the total LREO pool reported
previously.

 

 

 

 

Table 2: Principal LREO values (wt%) for Borehole TKDD003 at TK 2

 

 Depth    Depth      Interval    La(2)O(3)  Ce(2)O(3)  Pr(2)O(3)  Nd(2)O(3)  STotal LREO(1)

 (From)   (To)         (m)                                                                   TREO(3)

 (m)      (m)
 2.25     8.75    6.5            0.78       1.53       0.18       0.57       3.1             3.25
 11.75    14.25   2.5            0.5        1.37       0.14       0.43       1.75            1.9
 15.5     19      3.5            0.39       0.79       0.08       0.29       1.6             1.75
 20.5     22.75   2.25           0.24       0.62       0.07       0.25       1.2             1.35
 26.5     29.25   2.75           1.02       1.67       0.17       0.52       3.4             3.55
 33.75    38      4.25           0.81       1.46       0.16       0.52       3.0             3.15
 40       41      1              0.64       1.13       0.12       0.42       2.3             2.45
 42.5     46.25   3.75           1.23       2.31       0.29       0.99       4.8             4.94
 50.75    53.75   3              0.3        0.61       0.07       0.22       1.2             1.35
 56.25    92      incl.12.25     0.95       1.83       0.22       0.75       3.8             3.95
 96       97      1              0.6        1.15       0.14       0.46       1.9             2.05
 102.75   112.75  incl.7.25      0.5        0.91       0.11       0.34       1.9             2.05
                  Mean(2)        0.73       1.40       0.16       0.54       3.03            3.18

 

Note 1 excluding the HREOs - Y, Eu, Gd, Tb and Dy

Note 2 Weighted mean as wt%

Note 3 including: Y, Eu, Gd, Tb and Dy

STotal LREO = (La(2)O(3)+Ce(2)O(3)+Pr(2)O(3)+Nd(2)O(3) +Sm(2)O(3))

 

It is established that the dominant REE-rich minerals within the TK complex
belong to the REE fluorcarbonate group. This mineralogy typifies major
carbonatite deposits elsewhere and supports the contention that TK can be
processed using conventional industry-proven methods. Assuming that the
whole-rock REE concentrations are derived from carbonate plus REE-rich
minerals, around 95 % of the total REEs within the whole rock derive from this
source.

The Company reported on its strategic intent in an announcement dated 06 May
2026 and in line with these set goals is accelerating the TK project towards
the completion of landmark events including maiden JORC (2012) Mineral
Resource Estimates for both TK and KH, Preliminary Economic Assessments and
ultimately a decision to mine. For these milestones to be supported by capital
investment, the above-ground tonnage estimate must be converted to a JORC
(2012) estimate. This process is ongoing in parallel with the drilling
campaign that will complete an estimated 13,200m of drilling across TK to
ascertain the depth, continuity and grade of carbonatite mineralisation below
the surface profiles. A similar campaign (10,500m drilling) focussed on the
carbonatite sheets is underway at Kieshöhe ("KH").

 

Comprehensive laboratory testing and petrology studies have been initiated
covering comminution, beneficiation, and metallurgy, including the separation
of Nd-Pr oxide from mixed rare earth concentrates. Logistics consultants have
been engaged to examine locations, transport routes, infrastructure and
permissions that are required for a potential central processing facility to
service TK and KH combined.

 

Economics and Markets

 

The dominant rare earths in the TCC complex are light elements in the order
Ce>La>Nd>Pr. Overall, the much higher economic value neodymium (Nd)
and praseodymium (Pr) together comprise an average 25% (wt) of the ca. 3% wt%
rare earth pool with supplementary values from a combination of mostly scarce
HREO's averaging 0.15 wt%. These overall grades place the TK carbonatite
complex in the upper quartile on a global scale if benchmarked against the
major producers of rare earths in China, the USA and Australia (Center for
Strategic and International Studies, January 2026).

 

Rare earths are critical to specific modern technologies where no effective
substitutes exist. Exponential growth in demand for use in permanent, high
temperature-resistant super magnets, defence systems, medical imaging,
telecommunications and advanced visual displays underpin the commercial
potential of the TK project. In a market dominated by China (European
Commission: Study on the Critical Raw Materials for the European Union, 2023),
a prospective new supply of at least two key rare earth elements, neodymium
(Nd) and praseodymium (Pr), is strategically significant.

 

Diversification of market supply to meet increasing demand is a recognised
planning priority for all industrialised nations as exemplified by the EU
Critical Raw Materials Act (2023). Moreover, international partnerships are
being formed to diversify and protect supply chains for key industrial
sectors, and to safeguard value chains from supply disruptions. The European
Commission's RESourceEU Action Plan (2026) and similar initiatives, such as
those recently discussed under France's 2026 G7 Presidency, focus on
collaboration between like-minded countries to reduce reliance on highly
concentrated, existing sources.

 

The EU initiatives provide financing and concrete
tools to protect industry from geopolitical and price
shocks, promote projects on critical raw materials in Europe and beyond,
and partner with like-minded countries to diversify supply chains.

 

The Company is entirely focused on ways in which the development of TK can
address these strategic objectives to the mutual benefit of free market supply
chains and Namibia, TK's host country.

 

Near-Term Development Plan for TK

 

The Company is progressing towards a JORC-2012 estimation of the presently
in-house 14Mt tonnage estimate  for TK with increasing confidence that this
represents a modest fraction of the total resource that the property can
deliver. Historic channel sampling data and results from borehole TW1A
inherited from Bonya, now reflected in data from TW2 nearby, provide
compelling evidence of both lateral continuity in surface rare earth
mineralisation and the continuation of REE-rich resources at depths well below
the present land surface.

 

These are the catalysts based upon which the Company projects a much larger
potential resource for the overall project and the drive towards Tier 1
status. Work continues to confirm the continuity of the surface geology and
rare earth abundance at depth, suitable for eventual open pit extraction.
Boreholes TW1A and TW2 imply sub-surface continuity of mineralisation to at
least 100m below the surface offering a potentially significant, and exciting,
resource upside.

 

 

 

For further information, please contact:

 Kendrick Resources Plc: Chairman     Tel: +44 2039 616 086

                                      Colin Bird
 AlbR Capital Limited                 Tel: +44 207 469 0930

 Financial Adviser and Joint Broker   David Coffman / Dan Harris

                                      Jon Bellis
 Shard Capital Partners LLP           Tel: +44 207 186 9952

 Joint Broker                         Damon Heath / Isabella Pierre

 

Qualified Person

The technical information contained in this announcement has been reviewed,
verified, and approved by Colin Bird, C. Eng, FIMMM, South African and UK
Certified Mine Manager and Director of Kendrick Resources plc, with more than
40 years' experience mainly in hard rock mining.

 

About Kendrick Resources Plc

Kendrick Resources Plc is a mineral exploration and development company whose
strategy is to acquire and enhance the value of its mineral resource projects
through exploration, technical studies and resource development and to bring
projects to production through joint venture or other arrangements or their
sale.

 

The Kendrick Board has extensive resource project experience in southern
Africa and has gravitated back to the region with the acquisition of the Bonya
Rare Earth Project located in Namibia and in late 2025 exercised an option in
relation to the acquisition of the Blue Fox Licence, 34412-HQ-LEL located in
northwest Zambia

 

Glossary:

Carbonatite: An igneous rock containing >50 modal % primary (magmatic)
carbonate and ≤20 wt% SiO(2). There are three main types: Calcitic (calcio)
carbonatites, magnesiocarbonatites and ferrocarbonatites. Occur as lava flows
and more commonly as intrusions.

Carbonate: Common minerals containing the carbonate anion (CO3(2-)) for
example calcite (CaCO(3)), dolomite (CaMg(CO(3))(2), siderite (FeCO(3)) and
Ankerite Ca(Fe,Mg,Mn)(CO(3))(2).

Cone sheet: A type of ring intrusion with margins which dip inwards.

Ferrocarbonatite: A carbonatite in which the main carbonate mineral is
iron-rich, for example, ferroan dolomite, ankerite or siderite.

Fluorcarbonates: A group of minerals consisting of variable calcium, high
fluorine, and rare earth elements. Examples are Synchysite and Parisite.

Parisite: A group of fluorcarbonates with typical mineral formula
Ca(Ce/La/Nd/REE)(2)(CO3)(3)F(2).

JORC 2012 Mineral Resource Code: The Australian Code for Reporting
Exploration results, Mineral resources and Ore reserves. Enforces minimum
standards and guidelines for public reporting of mineral resources and ore
reserves. Classifies mineral resources into Inferred, Indicated and Measured
based on the level of geological confidence regarding the quality and quantity
of the resource.

Petrological studies: the study of the formation of rocks, subsequent
deformation and alteration. Quantification of mineral composition and mineral
relationships.

REE: Rare Earth Elements. Elements with an atomic number between 57 and 71
plus Scandium and Yttrium.

TREE: Total Rare Earth Elements; sum of LREE and HREE to a total of 17
elements.

LREE: Light Rare Earth Elements including Lanthanum (La), Cerium (Ce),
Neodymium (Nd), Praseodymium (Pr), Scandium (Sc), Samarium (Sm) and Europium
(Eu) and Promethium (Pm).

HREE: Heavy Rare Earth Elements including Yttrium (Y), Gadolinium (Gd),
Terbium (Tb), Dysprosium (Dy), Holmium (Ho), Erbium (Er), Thulium (Tm),
Ytterbium (Yb) and Lutetium (Lu).

LREO: Light Rare Earth Oxides including La(2)O(3), CeO(2), Nd(2)O(3),
Pr(6)O(11), Sc(2)O(3), Sm(2)O(3), Eu(2)O(3).

HREO: Heavy Rare Earth Oxides including Y(2)O(3), Gd(2)O(3), Tb(4)O(7),
Dy(2)O(3), Ho(2)O(3), Er(2)O(3), Tm(2)O(3), Yb(2)O(3) and Lu(2)O(3).

TREO: Total Rare Earth Oxides.

Wt % = Weight Percentage

 

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