Herencia Resources plc

("the Company")

Funding Update

Further to the announcement released on 5 April 2016 and 15 April 2016, the Company confirms that the Australian Special Opportunity Fund and Oriental Darius Co. Ltd have advanced to Herencia, US$100,000 (Part 2 of Tranche 1 of the Loan of up to US$500,000, the details of which are set out in the announcement dated 5 April 2016).

As previously stated, the directors believe that the funds from Part 2 of Tranche 1 (in addition to the Company's existing cash position) will support the Company's working capital requirements until early May 2016.

The Next Transaction, announced to the market on 3 February 2016, is well advanced. Pursuant to an agreement with Next, the Company has agreed subject, inter alia, to shareholder approval and completion of satisfactory due diligence by Next to dispose of 100% of the Company's Picachos project for up to US$5.125 million, over 16 months. The due diligence is progressing well, and the first payment of US$2million is expected by 30 April 2016 if the transaction is to proceed, however, at this stage, there can be no guarantee that the transaction will proceed. Further updates will be provided in due course.

For further information please contact:

References in this announcement to exploration results and potential have been approved for release by Mr Graeme Sloan (BAppSc Mining Engineering WASM) who has more than 20 years relevant experience in the field of activity concerned. Mr Sloan is a Member of the Australasian Institute of Mining and Metallurgy. Mr Sloan has consented to the inclusion of the material in the form and context in which it appears.

Further background details on the Company can be found at www.herenciaresources.com

**ENDS**

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