REG - Kendrick Resources - Update on Kieshöhe Project

Kendrick ResourcesAnnouncement

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RNS Number : 1069H  Kendrick Resources PLC  05 June 2026

5 June 2026

 

KENDRICK RESOURCES PLC

("Kendrick", the "Company" or the "Group")

Update on Kieshöhe Project

Initial Assessment of Kieshöhe Suggests Potential for a Major Rare Earth
Discovery Complementing Teufelskuppe

Highlights

•     Initial assessment confirms Kieshöhe has the potential to emerge
as a major rare earth discovery alongside Kendrick's flagship Teufelskuppe
Project within the Bonya Rare Earth District, Namibia.

•     Systematic pXRF analysis completed on seven previously untested
historical drill holes inherited from Bonya.

•     Average TREO grade of 1.51 wt%, dominated by high-value light rare
earth elements including neodymium and praseodymium.

•     High-grade intersections include:

·     1.0m at 5.46 wt% TREO (KH013A)

·     1.0m at 3.53 wt% TREO (KH015)

·     1.0m at 3.22 wt% TREO (KH014)

·     1.0m at 3.04 wt% TREO (KH014)

·     3.25m at 2.73 wt% TREO (KH013A)

·     2.0m at 2.36 wt% TREO (KH015)

•     Every borehole ended in mineralised carbonatite or associated rare
earth-bearing dykes, indicating the system remains open at depth.

•     Average borehole depth exceeded 85 metres with all holes
terminating in massive carbonatite or mineralised dykes.

•     Kieshöhe grades rank within the upper quartile of comparable
hard-rock rare earth projects globally.

•     Initial assessment indicates that whilst grades are marginally
lower than Teufelskuppe, the tonnage potential at Kieshöhe could be
substantially greater.

•     Exploration results increasingly suggest that earlier assumptions
regarding the relative significance of Kieshöhe compared with Teufelskuppe
may have underestimated its true potential.

•     Kendrick has intensified exploration activities at both projects
with the objective of defining a combined rare earth resource of global
significance.

•     In the recent internal valuation report of USD400m as indicated in
the announcement of 27 May 2026, no contribution was attributed to Kieshöhe.

 

Chairman's Statement

Colin Bird, Chairman, commented:

"These results mark an important milestone in the development of the Bonya
Rare Earth Project and significantly enhance our view of the potential scale
of the district.

Historically, Teufelskuppe was considered the dominant discovery within Bonya.
However, our ongoing assessment of Kieshöhe increasingly indicates that this
view may prove to be overly conservative. The discovery of widespread
mineralisation, strong grades and, importantly, the fact that every borehole
ended in mineralised carbonatite gives us growing confidence that Kieshöhe
may represent a much larger rare earth system.

Whilst Teufelskuppe remains a highly significant rare earth project, current
evidence suggests Kieshöhe could ultimately possess greater tonnage
potential. The possibility that both projects form part of an extensive
mineralised district opens up an exciting opportunity to define a rare earth
resource of truly world-class scale.

With average grades of 1.51 wt% TREO placing Kieshöhe in the upper quartile
of comparable hard-rock rare earth projects globally, together with high-grade
intercepts of up to 5.46 wt% TREO, we believe the project has the potential to
become a strategically important rare earth asset in its own right.

Accordingly, we have intensified exploration and drilling activities across
both Kieshöhe and Teufelskuppe. Our objective is to define a combined
resource capable of supporting one of the most significant rare earth
developments globally and establishing Bonya as a strategically important
future source of critical minerals. At the time of releasing the recent
in-house valuation, we had not received the KH drill results and thus KH is
assigned no value in the valuation report. The plan remains to integrate the
two projects which will significantly enhance the overall project value and
the contribution of Bonya in the rare earth arena."

 

Geological Setting

Kieshöhe forms part of a highly prospective rare earth corridor within the
Bonya Project. The project comprises a large carbonatite complex and
associated mineralised dyke systems extending across a trend exceeding two
kilometres in width.

The scale of the intrusive system, combined with widespread rare earth
mineralisation identified to date, highlights the strategic significance of
the project and its potential to complement and potentially rival the scale of
Teufelskuppe.

Historical Exploration

Historic drilling completed between 2016 and 2018 intersected extensive
carbonatite-hosted rare earth mineralisation. Previous work identified
xenolith-free carbonatites and mineralised dykes returning grades of up to 10
wt% TREO and an overall project head grade of approximately 1.6 wt% TREO.

Significant enrichment in the magnet rare earth elements neodymium and
praseodymium was also identified.

New Exploration Results

Following the acquisition of the Bonya Project, Kendrick inherited partially
analysed drill core from a number of historical boreholes. The Company has now
completed systematic pXRF analysis on boreholes KH011 to KH016, including
verification of two previously drilled holes.

Results returned an average TREO grade of 1.51 wt% across mineralised
intervals and demonstrate strong continuity of mineralisation throughout the
carbonatite system.

Most significantly, every borehole terminated in mineralised carbonatite or
associated rare earth-bearing dyke material, indicating that mineralisation
remains open at depth.

Table 1: Selected TREO Intersections - Kieshöhe

 Borehole  Interval (m)  TREO (wt%)
 KH013A    1.0           5.46
 KH015     1.0           3.53
 KH014     1.0           3.22
 KH014     1.0           3.04
 KH013A    3.25          2.73
 KH015     1.0           2.50
 KH015     2.0           2.36
 KH012     1.0           2.43
 KH015     1.0           2.23
 KH016     1.25          2.07
 KH013B    2.5           2.04

Mineralisation appears broad, continuous and persistent from surface to depth,
with all reported mineralised samples returning grades above 1.0 wt% TREO.

The rare earth assemblage is dominated by light rare earth elements,
particularly cerium, lanthanum, neodymium and praseodymium. The strong
contribution from neodymium and praseodymium enhances the project's potential
economic attractiveness given their critical role in permanent magnet
technologies.

Global Project Ranking

Benchmarking against comparable hard-rock rare earth projects indicates that
the average Kieshöhe grade places the project within the upper quartile of
global rare earth developments.

Combined with its apparent scale, continuity and open-ended mineralisation,
management believes Kieshöhe has the potential to become one of the more
significant rare earth projects currently under development globally (Liu et
al., 2023).

 

Near-Term Development Plans

Kendrick has accelerated exploration activities across the Bonya Project with
additional drill rigs now active on site.

Current work is focused on:

• Expanding drilling coverage at Kieshöhe.

• Defining the lateral and vertical extent of mineralisation.

• Advancing resource modelling.

• Completing laboratory verification of pXRF results.

•Assessing the potential for a combined development strategy incorporating
both Kieshöhe and Teufelskuppe.

The Company believes that continued exploration success could support the
delineation of a rare earth resource of global significance capable of
underpinning a major long-term critical minerals development in Namibia.

 

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, who has more
than 40 years of relevant experience in hard-rock mining and mineral
exploration.

My one regulatory comment: the statement "one of the world's largest rare
earth projects" is very powerful, but unless there is already a resource
estimate or comparative study supporting it, NOMADs and lawyers may ask for
evidence. I would instead use "world-class scale", "global significance", or
"potentially among the most significant rare earth developments under
evaluation globally", which conveys the same message while being easier to
defend.

Citation: Liu, S.L., Fan, H.R., Liu, X., Meng, J., Butcher, A.R., Yann, L.,
Yang, K.F., and Li, X.C (2023) Global Rare Earth Element Projects: New
Developments and Supply Chains. Ore Geology Reviews, 157, 11pp

 

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 La2O3, CeO2, Nd2O3, Pr6O11, Sc2O3,
Sm2O3, Eu2O3.

HREO: Heavy Rare Earth Oxides including Y2O3, Gd2O3, Tb4O7, Dy2O3, Ho2O3,
Er2O3, Tm2O3, Yb2O3 and Lu2O3.

TREO: Total Rare Earth Oxides.

Wt % = Weight Percentage

 

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