Operational Update: Tesoro Gold Concession

This announcement contains inside information for the purposes of Article 7 of the UK version of Regulation (EU) No 596/2014 which is part of UK law by virtue of the European Union (Withdrawal) Act 2018, as amended ("MAR"). Upon the publication of this announcement via a Regulatory Information Service, this inside information is now considered to be in the public domain.

13 September 2024

Echo Energy Plc

("Echo" or the "Company")

Operational Update: Tesoro Gold Concession

Echo (LON:ECHO), the Latin America focused natural resources company, provides the following update on the Tesoro Gold Concession ("Tesoro"), southern Peru, which is held by the Company's 50%-owned Peruvian joint venture, Boku Resources SAC ("Boku").

Boku has initiated the development of the primary "Bonanza" vein, deemed to be the richer of the two mapped veins ("Dorada" being the second vein). Both veins have been mapped at surface and in discrete shafts, down to circa 10m.

In preparation for mining the Bonanza vein, an access shaft has been sunk to 12.1m and lateral development has advanced 15m along the vein. Mapping of exposures shows that the vein pinches and swells between 0.1m and 0.8m, with the average vein width estimated at between 0.15m to 0.2m. Local examples of similar veins host "ore shoots" that can extend for up to 40m laterally and reach depths of 80m (the level of the deepest known mine).

Boku intends to initially prepare two 42m by 30m blocks for cut and fill mining. Each block contains in the region of 589 tonnes of vein material. Boku estimates that the first two blocks will be prepared and ready to mine within the next 15 weeks. Further development will prepare blocks beneath the first blocks, down to 78m and along strike for a further 84m i.e. an additional 3,500 tonnes of vein material. In parallel, Boku intends to initiate development of the Dorada vein system.

Some vein material recovered from the shaft development has been milled and panned at site, demonstrating the presence of gold. Samples of vein material have been submitted to an independent certified laboratory to quantify gold grade, with results expected in early October 2024.  

As announced on 8 July 2024, results from samples also taken in the preparation of the shaft at Bonanza and from the Dorada shaft, yielded between 13.13g/t Au and 21.36g/t gold and had gold recovery rates of between 90.53% and 92.93%.

Miners have to date recovered a 13,000 kg bulk sample of vein material. This is technically Boku's initial production and will be sold to a commercial processor with the proceeds being used to further develop Tesoro. A number of potential processors have been identified, with terms being negotiated.

Stephen Birrell, Chief Executive Officer of Echo, commented:

"I have just returned from a very successful visit to the Tesoro Mine, meeting with the Mine Manager, Mining Engineer and miners. Progress in "preparing the mine to mine" is on track and we are looking forward to Boku receiving early revenue from the ore recovered during the shaft preparation process. We also took the opportunity to meet with our joint venture partners at Boku and held meetings on further potential projects under discussion."

Update re Name Change

The name change from Echo Energy plc to Nativo Resources plc, approved by shareholders at the General Meeting on 28 August 2024, is currently being processed with Companies House. A further announcement will be made in due course upon confirmation of the change taking effect, following which trading of the Company's shares will take place on AIM under the new name and with a new TIDM (AIM: NTVO). The Company's ISIN and SEDOL numbers will remain unchanged.

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About Echo

Following the partial divestment of its assets in Argentina, Echo entered into a 50:50 joint venture in Peru in July 2024 with an experienced local partner for precious metals (gold/silver) mining and the cleaning of known tailings deposits containing Measured and Indicated resources of gold and silver. Through the JV, known as Boku Resources, Echo has secured an opportunity to scale operations in Peru producing gold and silver through primary mining and tailings cleaning, owning 50% of the production and resources. Initially, Boku intends to establish formalised artisanal and small mining operations on its 100% held Tesoro Gold concession, southern Peru, targeting early cash flow generation by Q4 2024.

Qualified Persons Statement

The scientific and technical information contained within this announcement has been reviewed and approved by Dr Alberto Rios Carranza, a geologist with over 27 years' experience, who holds a doctorate cum laude awarded by the Polytechnical University of Madrid, Spain and who has published or co-authored over 17 scientific papers on the mineralisation across Peru. Alberto is a member of the Geological Society of Peru, the Colombian Society of Geology and the Institute of Mining Engineers of Peru. He is a Qualified Person as defined by the AIM Guidance Note on Mining and Oil & Gas Companies dated June 2009.

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