Company Information for Herencia Resources plc

AIM-HER

www.herenciaresources.com

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AIM; HER

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Company Statement

Herencia Resources plc is a mineral exploration and development company listed on the Alternative Investment Market (‘AIM’) of the London Stock Exchange with a primary focus on identifying resource opportunities in South America.

The Company has a number of highly prospective zinc-silver-lead and copper-gold project areas in northern Chile including the Paguanta zinc-silver-lead epithermal vein system. Herencia aims to develop this existing asset portfolio as well as identify further projects to generate future value for the Company.

Current Operations

The Pagantua project area consists of 12 mining licences covering an area of 39 sq kilometres. The area is on the northern part of the main Chilean porphyry copper belt, which houses some of the world’s largest open-cut copper mines.

The Paguanta Project comprises two seprarate components:

The 'Patricia' zinc-lead-silver project
The 'La Rosa' porphyry-copper prospect
'Patricia' (zinc-lead-silver)

Within the Paguanta project area the main 'Patricia' zone comprises a zinc-silver-lead mineralised system part of a mine that was last active in the 19th Century. The mineralisation is open to the east toward the Refugio geophysical anomaly located approximately 1 kilometre away.

The first ever diamond drill program undertaken at Paguanta was completed in December 2006. Of the 10 holes drilled into the Patricia zone, eight intersected mineralisation, four of which returned high Zn-Ag-Pb grades. The highest individual grades were 15.75% Zn, 447pm Ag and 5.58% lead (separate 1m samples). Surface rock chip sampling has extended the zone of anomalous mineralisation to the east with best results of 1515 and 1075 g/t Ag. Surface silver (>225ppm Ag) mineralisation has now been encountered in veins over a strike lenght of 1.2km and remains open to the east toward Refugio.

Maiden Resource
Herencia announced a maiden Inferred Mineral Resource of 2.51mt @ 4.1% Zn, 77g/t Ag, 1.3% Pb (at a cutoff of 2% Zn) in October 2007. This mineral resource estimate complies with recommendations in the Australian Code for Reporting of Mineral Resources and ore Reserves (2004) by the Joint Ore Reserves Committee (JORC) of the AusIMM.

Location
The Paguanta Project Area is located approximately 120 km east northeast of Iquique at 3700m in the Andes Mountains and approximately 30 km west of Chile’s border with Bolivia. Vehicular access from the highway was first established in 2004 and the road journey is now 120 miles (195 km) from Iquique, the regional capital. A selaed highway is located 20 kilometres north of the project area.

Regional Geology
Paguanta is located near the Cerro Colorado porphyry copper mine at the northern end of the Domeyko fault system, which stretches over more than 1,000 km in northern Chile and hosts a number of important copper deposits.

The immediate area around Paguanta is highly mineralised with an open-cast copper mine at Cerro Colorado (BHP Billiton) 40km south-west of the project exploiting a supergene deposit of 228 Mt grading 1% copper. Other porphyry copper prospects currently being explored are at Mocha (Codelco), Queen Elizabeth and Yabricoya (Codelco).

Host rocks comprise tightly folded and faulted Palaeozic basement, Jurrasic-Cretaceous aged sediments and arc-related volcanics. tertiary aged felsic intrusions have been mapped and are spatially related to zones of alteration and mineralisation.

Mineralisation
The Patricia Zone is a zone of zinc, silver, lead and gold mineralization. Petrographic study of outcrop and diamond drill samples identified low sulphidation style mineralization with economic mineralisation dominated by sphalerite (zinc), galena (lead), and argnetine (silver). Low levels of gold are associated with arsenopyrite. There is evidence of an earlier gold bearing potassic alteration phase, associated with older, deeper felsic intrusions.

One kilometre north of Patricia, the Rosa Zone is an area of intensely leached, argillic alteration over 3 sq kilometres, prospective for porphyry copper-gold mineraliation in supergene blankets or stocks. Various styles of acid intrusive have been mapped, together with potassic alteration; inlcuding the presence of biotite and magnetite. Geochemical values are subdued as expected, however low levels of copper and gold are co-incident with the higher intensity alteration zones. There remain few untested argillic anomolies of this scale in this important copper producing region.

Elevated gold anomalism has been returned from stream sediment sampling of the Portillo Zone 2 kilometres west of the Patricia zone.

History
Silver was discovered and first worked in the area by a team of miners headed by an Englishman in the 1880's. Together they completed 1,800 metres of underground development into what is now called the Patricia zone. The principal development is a drive running 400 metres in length and 130 metres vertically as it intersects three high-grade veins. Mining ceased when the Englishman died.

There has been little significant work since then due to the areas remoteness (previously a five-hour walk from the nearest village) and because silver-zinc mines were considered less attractive than copper and gold prospects.

Previous Work
The Patricia mine was abandoned in the late 19th century and the area was not subjected to further evaluation outside of regional reconnaissance. Herencia are the first modern explorers at Paguanta.

Herencia's Exploration Programme
Detailed surface and underground mapping and geochemical sampling are completed. A ground magnetic and IP survey was completed prior to drill site selection.

A 1,187 metre diamond drilling program was undertaken during the fourth quarter 2006. 80% of holes interesected mineralisation and high grade Zn-Ag-Pb assay results were returned from the four of the 10 holes drilled, at depths ranging from 56 to 144m depth.

The drill program identified three high-grade sub-parallel veins, containing silver-lead-zinc mineralisation, which remains open in all directions.
In 2007, detailed geological mapping, surface geochemical sampling and an electromagnetic geophysical survey (EM) have enabled mapping of the Patricia vein system.

The main cathedral vein has been mapped out and is mineralised over a strike length of approximately 1 kilometre and remains open to the east.
At the completion of a second drilling campaign in 2007, mineralisation was intersected in 40 out of the 50 holes drilled and high grade intersections were achieved in all three main veins.

Work continues in 2008 with an 10,000m RC and diamond drilling program completed in August 2008.

A Mineral Resource update is scheduled for October 2008 and a scoping study is to commence in October 2008.

'La Rosa' (porphyry-copper)
La Rosa is an advanced prophyry copper target covering an area of 3km and which is wholly within the Paguanta Project tenement package (70% owned by Herencia Resources plc). The area has never previously been explored due to poor access.

La Rosa is less that 50km from BHP's Cerro Colorado Mine and approximately 150km from the mines of Quebrada Blanca (Teck), Colluhuasi (Xstrata/Anglo Pacfic American) and other advacned prospects of CODELCO and Anglo American.

La Rosa was drilled during in August/September 2008 and assay results are expected to be available in October.

Structure and Geochemisrty
The la Rosa prospect is an area dominated by altered Cretaceous aged andesite volcanics, with minor felsic volcanic material and sediment.

La Rosa, superficially, ia an area of intense argillic alteration, weathering and limonite (iron oxide) staining, the products of weathered pyrite. This area covers an area of 3km N-S and 1kim E-W, and is bounded by two regional scale, north-south oreintation faults. One of these faults has exposed quartzite in the footwall, thereby indicating it is a major regional structure. Due to the intense weathering, surface geochemistry is of limited use, however samples are anomalous in lead, zinc, copper, gold, silver and molybdenum. Grid surface geochemistry has been completed. The alteration zone extends to the Patricia epithermal Pb-Ag-Zn vein system, where a maiden resource was announced during 2007. Herencia believe that the two prospect areas are part of the same mineralising system. Late barite veins have been mapped at La Rosa and elsewhere adularia is present, increasing the possibility of other epithermal veins within the large alteration system.

Alteration and Petrology
The prospect does not have a broad halo of propylitic alteration, suggestion a relatively high-level of emplacement. Within the zone of intense weathering there is a smaller zone where there are stocks of porphyritic quartz-diorite and andesite. Some of these have undergone potassic alteration, as demonstrated by the presence of magnetite, biotite and kspar. The same area also has evidence of more intense alteration where the dominant clay, illite is accompanied by sercite and quartz stock-work. Locally there are areas of more intense silica alteration. Within petrographic samples relict sulphides present include bornite and chalcopyrite.

Geophysics
Zonge Geophysics have completed a grid of Induced Polarity (IP) and ground magnetic, covering the entire altered area. A 3D inversion model has been completed. In summary the IP has identified a chargeability high, which is largely co-incidental with the more intense surface alteration. At -100m below surface the high covers an area of 750x250m, and this is more extensive at depth. The anomaly may represent copper bearing sulphides. The magnetic image shows areas of more intensive magnetic materail which may in turn represent altered prophyritic stocks.

Geographical Spread

Chile - South America

Board of Directors and Key Management

Michael Bohm - Executive Director

Michael Bohm is a mining engineer having extensive experience in operations management, evaluation and project development in Australia, Northern Europe, SE Asia and North America. Michael has over 20 year’s minerals industry experience predominantly in the gold, nickel and diamond sectors in both open pit and underground mining environments.

His corporate experience includes previous directorships at Sally Malay Mining Limited in Australia (ASX) and Ashton Mining in Canada (TSE). He is currently the MD Asia Pacific for Mineral Securities.

Hon John Moore AO - Non-Executive Director and Chairman

The Hon John Moore AO holds a Bachelor of Commerce and Associate in Accountancy from the University of Queensland. John has had a distinguished career in Australian politics, he was the Minister for Defence, the Minister for Industry, Science & Tourism and Vice President of the Executive Council.

Prior to entering politics, John Moore was a stockbroker and member of the Brisbane Stock Exchange. He has served on the boards of many broking and banking related companies including Citinational Limited, Merrill Lynch (Aust) Pty Ltd and Grindlays (Aust) Pty Ltd. John is currently Non-Executive Deputy Chairman of Mineral Securities.

John Russell - Non-Executive Director

John Russell has over 30 years experience in Investment Banking. He was a member of the Australian Stock Exchange and a partner in Bain & Company. He has had 20 years experience in London and New York as head of Bain’s Branches in both cities. In 1992 Bain was acquired by Deutsche Bank AG and John continued as senior Director of Deutsche Bank Australia in Europe until the end of 1999.

Since retiring from Deutsche Bank John has been providing consulting services to smaller technology companies. John is Chairman of Henderson Far East Income Limited and Minster Pharmaceuticals Plc.

William Adamson - Non-Executive Director

Bill Adamson has a Bachelor of Engineering (Mining) from the Western Australian School of Mines, a Master of Engineering Science from the University of Queensland and a Doctor of Philosophy (Blasting Engineering) from the University of Queensland (JKMRC). Mr Adamson is currently General Manager at Austin Chile trading Limited and Senior Technical Manager at Austin Powder Inc, companies who supply explosive products and blasting technology to the mining sector.

Bill has 16 years experience in the South American Resources Industry. He previously worked in Chile for the explosive company Dyno Nobel and the engineering firm Signet and has lived with his family in Santiago for 12 of the last 16 years. He is a fluent Spanish speaker.

James Sinclair - General Manager – Chile

Jim Sinclair has a dual Honours Degree in Geology and Physical Geography from the Sheffield University and a Masters Degree in Sedimentology from Reading University. Prior to joining Herencia Jim was Country Manager with AngloGold Ashanti in Mongolia and was responsible for all exploration activities including personnel management, safety, budgeting, contractors, technical programmes, project generation activities and government/NGO liaison.Before that Jim was based in Australia with Anglo, being responsible for exploration and drilling activities in the Northern Territory and was involved with the discovery of the Coyote gold deposit.

Company Address

Level 22
77 St Georges Terrace
Perth, Western Australia, Australia 6000


Telephone:	+61 8 9325 8888
Facsimile:	+61 8 9325 8088
Email:	mbohm[at]herenciaresources.com
Website:	http://www.herenciaresources.com

Additional Address/Key Contact

Registered Office
One America Square
Crosswall
London
EC3N 2SG
Phone: +44 (0)207 544 5555

Additional Information

Total Shares; 607,399,999

Year End

31 December

Nominated Brokers

WH Ireland Limited
11 St James Square
Manchester
M2 6WH

Nominated Advisors

WH Ireland Limited
11 St James Square
Manchester
M2 6WH

Broker/Analyst Reports

05/11/07 - Hoodless Brennan plc

Major Shareholders

Mineral Securities Operations Limited	100,000,000 shares	16.46%
Minsec Investment Holdings (BVI) Limited	79,733,333 shares	13.13%
Rock Nominees Limited	53,525,000 shares	8.81%
Mineral Securities Operations Limited	52,666,667 shares	8.67%
Mineral Secutities Operations Limited	47,000,000 shares	7.74%

Most Recent Statement

25/09/08 - Final Assay Results for 'Patricia' - Further Intercepts of High Grade Mineralisation
17/09/08 - Excellent Metallurgical Testwork Results
26/08/08 - New High Grade Diamond Drilling Results at Paguanta Project
19/08/08 - Latest Drilling Returns High Grades at Depth at Paguanta
22/07/08 - Latest Drilling Returns Multiple High Grade Intersections at Paguanta
01/07/08 - Positive Metallurgical and Drilling Results at Paguanta

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