ACCELERATE RESOURCES LIMITED — Interim / Quarterly Report 2021

Jul 29, 2021

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Quarterly Activities Report For the period ended 30 June 2021

Highlights

• Accelerate secures option over Manganese Project - actions high grade manganese strategy for battery and steel production with forecast shortages of this “critical mineral”.

• HOA executed to divest the Mt Read Project in Tasmania.

• Completion of divestment of the Mt Monger Project.

• 8.3 million ordinary shares (equivalent to 16.6% of shares on issue) in Currie Rose Resources (TSX-V listed) has been issued to Accelerate Resources.

• Field work Preparations underway at the Tambellup Kaolin Project (WA) for the

• upcoming field season.

Accelerate Executes High Grade Manganese Strategy for Battery and Steel industry

Post the June 2021 quarter, the Company announced that it has entered into a binding Option Agreement to acquire the Manganese and Iron Ore rights at Ripon Hills East and Braeside West Projects in the East Pilbara Manganese Field ( ASX Announcement date 27 July 2021).

The Ripon Hills East (48km[2] ) and Braeside West (139km[2] ) Projects are situated 120km east of Marble Bar within 70km of the Woodie Woodie Manganese Mine and only 250km from the port of Port Hedland. (Figure1).

Manganese is a critical element used in steel production. The steel industry is poised to continue growing, providing a steady source of demand for manganese. New demand is arising from cleanenergy applications. High Purity Manganese (HPM) is used as a cheaper substitute for cobalt in nickel-cobalt-manganese (NCM) battery cathodes.

The Company intends to commence prospect definition and field work immediately to define initial drill targets for evaluation.

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Figure 1: Ripon Hills East and Braeside West Mn Project Location

Tambellup Kaolin Project, WA – Accelerate 100%

The Tambellup Kaolin Project comprises two granted exploration licenses covering 242km[2] , located approximately 280 km south-southeast of Perth via the Great Southern Highway, 130 km north of Albany, and 10 km west of the township of Tambellup in the Southwest of Western Australia.

The Tambellup Kaolin project is adjacent to excellent infrastructure. The Tambellup West Road bisects the project and links to the Albany Highway in the west. The Perth - Albany freight railway corridor runs north-south through the centre of the township (Figure 2).

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Figure 2: Tambellup Project Location

Accelerate 2020 Aircore Drilling

Accelerate undertook an Aircore drilling program during February 2020. The program, comprising 52 holes for 769 metres, targeted the Saddlers Kaolin prospect within E70/4969 and confirmed the presence of near surface kaolin mineralisation as identified in previous historical drilling data (see ASX announcement dated 20 February 2020).

A total of 169 one metre samples were collected from 23 drill Aircore holes and composited into 62 composite and individual samples (1m to 4m), which were sent to a Certified Analytical Laboratory for geochemical analysis (see ASX announcement dated 26[th] March 2020).

Interpretation of the drilling results indicates that the Sadlers Kaolin Prospect remains open to the southeast and is bounded to the northeast and southwest by two east-southeast trending mafic units. A shallow granite basement high occurs in the western part of the prospect (see ASX announcement dated 26[th] May 2020)

Excellent Metallurgical Test Results Yield 73.1% at High Brightness

During the Quarter, the Company provided an update to the market regarding the excellent metallurgical results received on the Tambellup Kaolin Project (See ASX announcement dated 28 April 2021).

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A total of 62 composite samples were selected for initial geochemical analysis, from 23 Aircore holes located within the main part of the Sadlers Kaolin Prospect.

The composite samples were predominantly selected from the visually whitest and brightest sections of the Upper and Lower Saprolite horizons of each hole, based on the visual geological logging of the drill samples. The sampling aimed to test the majority of holes in the more strongly weathered (Upper and Lower saprolite) parts of the main Sadlers Prospect. Kaolin mineralisation is expected to be developed in the Upper Saprolite horizon and within parts of the Lower Saprolite.

Regolith Zone	Number of Composite Samples	Yield -45µm %	Al2O3 Grade %	Fe2O3 Grade %	TiO2 Grade %	K2O Grade %
Upper	38	59.8	22.7	0.49	0.38	0.67
Lower	24	47.3	20.8	0.49	0.33	2.94

Table 1: Tambellup Drilling – Kaolin Mineralisation Average Assay and Yield Results from Raw Drill Material.

A subset of 21 composite samples, from seven holes, was dispatched for further metallurgical testing by Independent Metallurgical Operations (IMO). The initial metallurgical testing comprised -45µm wet sieving to determine the yield (%) of the kaolin mineralisation (see Table 1 for results of this testing and ASX announcement dated 26th May 2020).

Six of the 21 composite samples were selected for additional analysis, by IMO, on the -45µm fraction, including chemical analysis by X-Ray Fluorescence (XRF) and mineralogical analysis by X-Ray Diffraction (XRD). These results are shown in Table 2 and summarized below;

• Kaolin yield range 42.9% to 73.1%

• ISO brightness range 79.76 to 86.23

• Kaolin Yellowness results range 5.58 to 8.98

• Kaolin and Amorphous Content above 85% in -45µm fraction.

Sample ID	Al2O3 Grade %	SiO2 Grade %	Fe2O3 Grade %	TiO2 Grade %	LOI1000	ISO Brightness	Yellowness	Yield -45µm %	Kaolin + Amorphous Content
TBC009	36.92	47.07	0.75	0.47	12.88	79.76	7.80	63.0	96
TBC019	35.57	49.53	0.29	0.47	11.36	85.77	5.92	42.9	85
TBC037	37.58	47.77	0.16	0.53	12.96	85.23	6.88	59.5	95
TBC049	36.97	47.21	0.53	0.98	12.41	81.39	8.53	73.1	90
TBC050	36.30	48.02	0.50	1.00	12.12	80.53	8.98	69.1	89
TBC055	37.76	47.41	0.24	0.27	13.38	86.23	5.58	53.0	96

Table 2: Tambellup Drilling – Recent Kaolin Mineralisation Assay and Yield Results for -45µm fraction

The Kaolin yield range is broadly comparable with publicly reported results at other projects in Western Australia (Suvo Strategic Minerals Limited reported ~41-42% yield in their ASX announcement dated 25th Mach 2021).

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Comet Gold Project, WA – Accelerate Resources 100%

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Figure 3: Comet Gold Project Location

The Comet Gold Project comprises two granted exploration licences and three applications, covering a total of 220km[2] .

Located in the Murchison Goldfields, approximately 115 km south southwest of Meekatharra and 20 km southeast of Cue, the project covers part of the Meekatharra to Mount Magnet Greenstone belt, located at the southern end of the Tuckabianna Shear Zone.

Compilation and analysis of historical RAB and RC drilling data has identified a number of gold

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targets and anomalous gold trends within the Comet Project area, including extensions to the north and east of the Comet gold mine and along the Antarctica gold trend in the eastern part of the licence.

Wide-spaced shallow drilling undertaken at Comet East during the 1990’s intersected significant gold mineralisation, including 4m at 7.08 g/t gold from 27m (PRB305), and 3m at 4.53 g/t gold from 60m (PRC269)[(1) ] (See ASX announcement dated 14 July 2020).

During September 2020, Accelerate undertook the first phase of RC drilling (17 holes for 1,212m; 20CORC001 - 017) at the Comet Gold Project, returning highly encouraging assay results from shallow drilling at the Comet East prospect (See ASX announcement dated 2 November 2020).

Significant drill results included:

• 20CORC002 9m @ 3.89 g/t gold from 34m

• 20CORC003 6m @ 1.11 g/t gold from 30m

• 20CORC006 3m @ 2.23 g/t gold from 27m

Follow up RC drilling was completed in late December 2020. An additional ten RC holes for 702m (20CORC018 – 027) were drilled to infill section spacing to 40m along 160m of strike on the shallow dipping Comet East mineralised structure. All holes returned a significant gold intersection from the targeted gold position (See ASX announcement dated 18 January 2020).

Better results included:

• 20CORC019 6m @ 2.29 g/t gold from 44m, including 1m @ 4.54 g/t from 45m, and 1m @ 3.46 g/t from 47m • 20CORC024 6m @ 1.45 g/t gold from 50m • 20CORC021 1m @ 4.74 g/t gold from 62m • 20CORC022 3m @ 3.10 g/t gold from 13m, including 1m @ 6.35 g/t from 13m • 20CORC024 1m @ 4.96 g/t gold from 50m

During the June 2021 quarter, Accelerate undertook a review of the current results with a view to developing the next phase of potential evaluation work at the Comet Gold Project. The Company also progressed with granting the three tenements in the next quarter.

Completion of Mt Monger Project Divestment

During the June 2021 quarter, the Company (ASX: AX8 “Accelerate” or “the Company”) announced it has completed the sale of the Mt Monger Project to Mt Monger Resources Limited ( Purchaser ) on the terms previously set out in the announcement on 4 December 2020.

The Company has received a total consideration of AUD$180,000 cash (excl GST) from the grant and exercise of the Option to the Purchaser, for the 100% interest of the Mt Monger Project.

The Company will also receive a further $50,000 cash (excl GST) upon delineation of an Inferred Mineral Resource (in accordance with the JORC 2012 Edition Guidelines) of at least 20,000 oz. at >1.5g/t gold verified by an independent competent person (Milestone) (Deferred Cash Consideration).

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Divestment of Mt Read Project

During the June 2021 quarter, the Company executed a Heads of Agreement (HOA) to divest its 100% interest in the Mt Read Project in Tasmania via a Sale and Purchase agreement.

The Company’s Mt Read Project is located on the Cape Sorell Peninsula, south of Macquarie Harbour and approximately 48 kilometres south of the town of Strahan, in western Tasmania. The project comprises one exploration license with an total area of 224 km².

The Project encompasses a belt of Early Cambrian to Cambrian volcanogenic sedimentary rocks that correlated with the Mount Read Volcanics (MRV) of western Tasmania. The Mount Read Volcanics are host to all of western Tasmania’s significant base and precious metal mines and mineral occurrences, several of which have been significant producers of base metals for more than 100 years.

Equity Position in TSX Listed Exploration Company Currie Rose

As announced on 30[th] April 2021, the Company completed its Due Diligence exploration program on the Rossland High-Grade Gold project in Canada and elected to convert its expenditure to 8,333,333 shares (which is an equivalent to 16.6% of shares on issue), in Currie Rose. (ASX Announcement date 30 April 2021).

Post the June 2021 Quarter, the Company received the confirmation of the shares issue to Accelerate Resources.

The Rossland Gold Project is situated 10km west from the Trail Zinc Smelter in south-central British Columbia and covers approximately 3,000 Ha. The Rossland Mining Camp produced more than 2.7 million ounces of gold, 3.5 million ounces of silver and 71 tonnes of copper between 1894 and 1941 and ranks as the third largest lode gold camp in British Columbia[1] .

Information Required by Listing Rules

Listing rule 5.3.1

During the June 2021 Quarter, the Company spent $163k on exploration activities including $110k in relation to the completion of Due Diligence exploration program on the Rossland Project in Canada. And $35k on Tambellup Kaolin Project.

Listing rule 5.3.5

During the June 2021 Quarter, the Company made payments to related parties of $62k as director fees.

This announcement was authorised for release by the Board of Accelerate Resources Limited.

1Bulletin 74 – Geological Setting of the Rossland Mining Camp by James T Fyles, Ministry of Energy, Mines and Petroleum Resources, Victoria, British Columbia, Canada 1984.

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For further information please contact Yaxi Zhan Managing Director

Reporting of Previous Exploration Results

This announcement includes information that relates to historical Exploration Results prepared and first disclosed under the JORC Code (2012) and extracted from the Company’s previous ASX announcements, as follows:

• “Comet Gold Project – Mineralisation Extended”. 18 January 2021

• “Significant Gold Intersected at Comet Project”. 2 November 2020

• “Comet Gold Project Supplementary Information - Exploration review commenced of Comet Gold Project, WA”. 14 July 2020

• “Exploration review commenced of Comet Gold Project, WA”. 2 July 2020

The Company confirms that it is not aware of any new information or data that materially affects the information included in the relevant market announcements. Where the information relates to Exploration Results the Company confirms that the form and context in which the competent person’s findings are presented have not been materially modified from the relevant original market announcements.

Competent Persons Statement

Information in this release that relates to Exploration Results is based on information compiled by Mr Griffiths, who is the President and CEO of Currie Rose Inc. (TSX-V: CUI). Mr Griffiths is a qualified geologist, a Fellow of the Australian Institute of Mining and Metallurgy (AusIMM). Mr Griffiths has sufficient experience which is relevant to the style of mineralisation and type of deposit under consideration and to the activity being undertaken to qualify as a Competent Person as defined in the 2012 Edition of the ‘Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves’. Mr Griffiths consents to the inclusion in this release of the matters based on his information in the form and context in which it appears.

Forward Looking Statements

Statements contained in this release, particularly those regarding possible or assumed future performance, costs, dividends, production levels or rates, prices, resources, reserves or potential growth of Accelerate Resources Limited, are, or may be, forward looking statements. Such statements relate to future events and expectations and, as such, involve known and unknown risks and uncertainties. Actual results and developments may differ materially from those expressed or implied by these forward-looking statements depending on a variety of factors.

—ENDS—

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Appendix

In accordance with Listing Rule 5.3.3. Accelerate provides the following information in relation to its mining tenements.

1. The mining tenements held at the end of the quarter and their location:

Project	Tenement Number	Status	Location	Beneficial Percentage Interest
Mt Read	EL 6/2013	Granted	Tasmania	100%
Comet	E20/908	Granted	Western Australia	100%
Comet	E20/970	Granted	Western Australia	100%
Comet	E21/213	Application	Western Australia	100%
Comet	E21/214	Application	Western Australia	100%
Comet	E20/965	Application	Western Australia	100%
Comet	E20/997	Application	Western Australia	100%
Comet	E20/999	Application	Western Australia	100%
Comet	E20/1000	Application	Western Australia	100%
Tambellup	E70/4969	Granted	Western Australia	100%
Tambellup	E70/5319	Granted	Western Australia	100%

2. Mining tenements acquired during the quarter and their location:

Project	Tenement Number	Status	Location	Comment
Comet	E20/997	Application	Western Australia	100%
Comet	E20/999	Application	Western Australia	100%
Comet	E20/1000	Application	Western Australia	100%

3. Mining tenements disposed of during the quarter and their location:

Project	Tenement Number	Status	Location	Comment
Mount Monger	E25/525	Granted	Western Australia	0%

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Mount Monger	E25/565	Granted	Western Australia	0%
Mount Monger	E25/586	Application	Western Australia	0%

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