Kavango Resources plc announced the completion of a ground magnetic survey over the Nara Gold Project in Southern Zimbabwe. A total of 85km of ground magnetic survey lines were completed over the project area (the "Survey"). The objective of the Survey was to identify geological structures and contacts that may be associated with gold mineralisation.

The Survey has defined a 200m wide interpreted shear corridor along 5km of strike within the property, hosting a number of magnetic low lineaments interpreted as shear zones. Shear zones are commonly associated with gold mineralisation. This corridor provides a prospective zone for follow up.

Historical and artisanal gold mine workings are located within the shear corridor and are closely related to magnetic low lineaments. The magnetic survey has identified a number of additional exploration targets including: Several previously unknown magnetic low lineaments parallel to the historical workings. Areas of magnetic disturbance possibly representing hydrothermal alteration of magnetic rocks which may be related to gold mineralisation.

Jogs and flexures along the interpreted shear zone within the claims. The progress the are making at the Nara Project illustrates how well company team is performing in country. The company's been operational in Zimbabwe for only 10 months and in this time have taken great strides forward in exploring two main projects; Hillside and Nara. Now that the company have the export permit in place for Hillside cores, the company look forward to receiving the multi-element test results later this quarter from the 1,400m of diamond drilling the company completed there.

In meantime, the company's mobilised the rig to company's Nara Project in March and have just completed fifth diamond hole here. The company will provide an update on drilling in the coming weeks but based on visual observations of core company decided to push ahead with a ground magnetic survey of the project area. The company recently upgraded the goal at Nara to find 2 million ounces of gold.

The survey results are particularly encouraging because the company appear to have identified a 200m wide shear corridor along 5 km of strike. Given this corridor is associated with historic high-grade mining and more contemporary small-scale mining, this suggests this geological structure is associated with gold mineralization. The company will complete the first phase of drilling at Nara over the next 6 weeks and send the cores for testing.

everything will then depend on the laboratory results, but the company are pleased with progress so far. The aim of the ground magnetic survey was to map lithology and structure to advance exploration ahead of the current scope diamond drilling programme. The Survey was carried out by 3D Earth Exploration, a Botswana based geophysical contract company owned by Kavango Director Hillary Gumbo, using two G856AX proton precession magnetometers.

A total of 85.45-line kilometres of survey was completed at a 50m spacing with an estimated 17,204 readings taken on 5m stations. The data collected was subjected to QAQC and any magnetic readings that may have resulted from cultural sources were removed prior to processing. The final gridded products have been processed to produce the usual array of images for interpretation.

A structural and lithological interpretation of the project area was then completed using a combination of these various products. A large regional WNW trending shear corridor approximately 200m in width is interpreted from the magnetic data. This shear corridor appears to have exploited the contact between the meta basalts and the meta sediments.

The historical and artisanal mine workings are located within the main shear corridor and appear to be closely related to magnetic low lineaments. There is an apparent flexure in the main shear at the intersection of a large North trending structure which is interpreted to have been exploited by a later dyke (evident as a mag high). To the east of the flexure the main shear zone appears to bifurcate with the northern limb orientated more east - west, this limb is mineralised and has been exploited by artisanal miners.

The interpreted shear corridor extends over 5km of strike within the property hosting six zones of mine workings along a total of 1,400m of strike. The known mine workings appear to be bounded by a series of NNW trending faults. A number of additional potential targets have been identified for future exploration, which in order of priority include the following interpreted features: · The faulted strike extent of the mineralised zones and several magnetic low lineaments parallel to the historical workings.

Jogs and flexures along the large shear corridor within the claims. · Areas of choppy disrupted magnetic response possibly representing hydrothermal alteration of magnetic rocks and which could relate to gold mineralisation.