ACCELERATE RESOURCES LIMITED — Interim / Quarterly Report 2020

Jan 28, 2021

==> picture [213 x 21] intentionally omitted <==

==> picture [108 x 17] intentionally omitted <==

==> picture [61 x 14] intentionally omitted <==

Quarterly Activities Report For the period ended 31 December 2020

Highlights

Exploration

• Systematic exploration campaigns undertaken at multiple project areas in Australia and Canada.

• Highly significant results reported for 27 holes (1,914m) of reverse circulation drilling at the Comet Gold Project

• Drilling confirmed high-grade, shallow gold mineralisation at Comet East, with potential to define shallow gold resources amenable to open pit mining

• Highly prospective ground position around Comet Gold Project greatly expanded through strategic acquisition and ground pegging.

• Diamond Drilling Commenced at the Rossland Gold Project, BC Canada

Corporate

• Appointment of Richard Hill as Chairman

• Appointment of Kevin Joyce as the Exploration Manager

Comet Gold Project– Accelerate Resources 100%

During the quarter, Accelerate Resources Limited (ASX: AX8 “Accelerate” or “the Company”) reported highly significant assay results from two phases of reverse circulation (RC) drilling at the Comet Gold project (Figure 1). Drilling significantly upgraded the potential of Comet East to host economically mineable gold mineralisation.

Comet East is situated approximately one kilometre east of the Comet Mine Trend; the host structure of the Comet-Eclipse Gold Mine (Figure 1). The Comet Mine is operated by Westgold Resources (ASX: WGX).

==> picture [148 x 90] intentionally omitted <==

==> picture [336 x 327] intentionally omitted <==

Figure 1. Comet Gold Project Location (over magnetics)

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) ]

During September 2020, Accelerate undertook a 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, including[(2)] ;

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

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

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 (Figure 2). All holes returned a significant gold intersection from the targeted gold position. Better results included[(3)] ;

• 20CORC019 6m @ 2.29 g/t gold from 44m, including o 1m @ 4.54 g/t from 45m, and o 1m @ 3.46 g/t from 47m

==> picture [364 x 37] intentionally omitted <==

Page 2 of 11

==> picture [148 x 90] intentionally omitted <==

• 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

The recently completed closer spaced drilling highlights higher grade gold zones occurring in quartz veined and sheared rocks at a well-defined sediment-basalt contact, confirming a robust geological model and excellent continuity of the mineralised zone, and providing additional confidence in any resource estimation and subsequent potential mining opportunity (Figure 3).

The gold-prospective zone at Comet East may represent an underexplored new structural trend parallel to the adjacent Comet trend; the host to Westgold’s active gold mines in the CometEclipse Gold Camp.

Accelerate intends to undertake a review of the current results with a view to developing the next phase of potential evaluation work at the Comet Gold Project.

1 ASX Announcement dated 14 July 2020, “Comet Gold Project Supplementary Information - Exploration review commenced of Comet Gold Project, WA”.[2 ] ASX Announcement dated 2 November 2020, “Significant Gold Intersected at Comet Project”.[3 ] ASX Announcement dated 18 January 2021, “Comet Gold Project – Mineralisation Extended”. The Company confirms there has been no material change to the results reported in earlier announcements

==> picture [348 x 257] intentionally omitted <==

Figure 2. Comet East Prospect. Drillhole locations and significant drill intersections over magnetics.

==> picture [364 x 37] intentionally omitted <==

Page 3 of 11

==> picture [148 x 90] intentionally omitted <==

==> picture [354 x 262] intentionally omitted <==

Figure 3. Comet East oblique sections

Comet Project Tenure Expansion

During the Quarter, the Company announced the acquisition of Volcanic Resources Pty Ltd, a company that holds a 100% interest in tenement application ELA20/965. The tenement is contiguous with the north-west portion of Accelerate’s Comet Project (see Figure 1), substantially expanding the existing ground position at Cue. In addition to this acquisition, Accelerate further expanded the Comet project area via the low cost application of tenements ELA 21/214 and ELA 20/965 (see Figure 1). The Company is continuing to evaluate the geological potential of these properties as part of a broader project review.

During the quarter the Company incurred $156,000 cash costs, including payments in relation to September Comet drilling program, and maintenance of all other Australian exploration projects.

==> picture [364 x 37] intentionally omitted <==

Page 4 of 11

==> picture [148 x 90] intentionally omitted <==

Rossland Gold Project, Canada - Accelerate Resources earning up to 100%

Accelerate is pleased to advise that diamond drilling within the due diligence phase of the Earn In Agreement with TXS-V listed Currie Rose Resources INC (“Currie”) commenced at the Rossland Gold Project located in central southern British Columbia (Figure 4). A single hole has been completed at the first of the targets, the Novelty Prospect (part of the Gertrude Prospect area) (Figure 4). The first hole (RGP-20-001) has been drilled to a planned depth of 60.6m. Drill results are pending.

==> picture [333 x 284] intentionally omitted <==

Figure 4 – Rossland Gold Project Priority Targets for First Drill Program

Drilling at the more elevated Eleanor and the Gertrude targets has been delayed due to unseasonal weather conditions and unforeseen access limitations. The number of metres planned to be drilled at these targets has been modified to accommodate the current weather conditions and drilling will re-commence once conditions improve.

Drilling activity has now focused on the Mascot Prospect, situated on the eastern flank of the Rossland Gold Project (Figure 4).. Recent geological mapping has confirmed that the Mascot Prospect hosts three primary veins: Mascot Vein, Central Vein, and Kapai Vein, as well as the secondary Mascot North Vein. In 1894, three mine adits were developed on the Mascot lodes; records indicate that the Mascot Vein was mined to 120m with grades up to 9g/t.

Historic data from a VLF-EM survey completed in 2009 and 2012 was re-processed by Currie in 2019

. This survey identified several significant VLF-EM anomalies at Mascot (Figure 5). Similar

==> picture [384 x 38] intentionally omitted <==

Page 5 of 11

==> picture [148 x 90] intentionally omitted <==

anomalies in the Rossland District are coincident with primary gold-bearing veins. Mapping further indicates that a very strong VLF-EM anomaly covers the convergence of the Columbia-Kootenay Vein (which is outside of the prospect area and the subject of extensive historical mining) with the Kapai and the Mascot North Veins. This anomaly is the primary Mascot drill target. (Figure 5).

Several other drill targets have been identified within the greater project area and will be subject to drilling over the coming months.

==> picture [346 x 295] intentionally omitted <==

Figure 5 – Rossland Gold Project Mascot Targets

About the Project

The project is located in Canada’s, British Columbia Province, which has a rich history of successful mining campaigns. Rossland was at the forefront of Canada’s Gold Rush in the 1890’s and has maintained mining operations since then. British Columbia hosts several large-scale, world class mines and the government continues to commit to streamlining the approvals process to encourage investment in the mining industry.

==> picture [384 x 38] intentionally omitted <==

Page 6 of 11

==> picture [148 x 90] intentionally omitted <==

==> picture [418 x 234] intentionally omitted <==

Figure 6. Rossland Gold Project – Location showing infrastructure - including proximity to 3 processing facilities

The Rossland Gold Project is adjacent to and along strike from several historic mines including significant production from the high grade Le Roi, War Eagle and Centre Star Gold mines (Please refer to the Company’s ASX release on 12 Nov 2020: Drilling Commences at the Rossland Gold Project, BC Canada). Historical workings and mine records indicate payable veins from these mines, extend into the Rossland Project area, and the host rock for gold is present and continuous.

The Rossland Project is an advanced, brownfields project with little modern exploration due to previous fragmented ownership and tenure. Now with consolidated ownership and evidence from the adjacent mining records, Accelerate is able to apply modern geophysical, geochemical and drilling techniques to thoroughly test the strike extent of high grade deposits that run up to the project boundary.

In accordance with the terms of the agreement with Currie Rose Resources, the Company contributed $371,000 towards the due diligence drilling for the Rossland project during the December quarter.

==> picture [384 x 38] intentionally omitted <==

Page 7 of 11

==> picture [148 x 90] intentionally omitted <==

Tambellup Kaolin Project, WA – Accelerate Resources 100%

The Tambellup Kaolin Project (E70/4969) is located 10 km west of the township of Tambellup in the Southwest of West Australia. The project is located approximately 280 km south-southeast of Perth via the Great Southern Highway, and 120 km north of Albany. 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. Two kaolin prospects have previously been identified by drilling within the tenement, Sadlers in the northwest of the project area, and Hulls in the east. (Figure 8)

==> picture [425 x 428] intentionally omitted <==

Figure 7. Tambellup Kaolin Project - Location of E 70/4969 and nearby infrastructure; the Saddlers and Hulls prospect wireframes (GM Minerals Consultants, 2017)

Exploration by the Company during 2020 has comprised and Aircore drilling program (52 holes for 769m) targeting kaolin mineralisation at the Hulls prospect (Figure 9). (See ASX announcement dated 20 February 2020)

==> picture [384 x 38] intentionally omitted <==

Page 8 of 11

==> picture [148 x 90] intentionally omitted <==

A total of 62 composite samples covering 169m were selected for initial geochemical analysis, from 23 Aircore holes within the main part of the Sadlers Kaolin prospect (Figure 8). 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 cover the majority, of the holes in the more strongly weathered (upper and lower saprolite) parts of the main Sadlers prospect, where Kaolin mineralisation is expected to be developed. (See ASX announcement dated 26 March 2020 and 26 May 2020)

The majority of the one metre samples (103m) were selected from the upper saprolite horizon, with the remainder (66m) from the lower saprolite. Analysis of the drilling data, for the selected holes, indicates that the upper saprolite (the potential Kaolin zone) at the Sadlers prospect is between 2 to 14 m thick (Average 6.75m) and is present from 1 to 15m depth below surface. The lower saprolite is between 2 to 12m thick (Average 6.75m) from 2 to 23m depth below surface.

==> picture [447 x 307] intentionally omitted <==

Figure 8. Sadlers prospect showing Accelerate Resources drilling on aerial imagery

Twenty-one composite samples, from seven holes, were also dispatched for metallurgical testing. The initial Metallurgical testing comprised -45um wet sieving to determine the yield (%) of the potential kaolin mineralisation.

Interpretation of the results from the drilling 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 which are observable in outcrop and shallow drilling.

==> picture [384 x 38] intentionally omitted <==

Page 9 of 11

==> picture [148 x 90] intentionally omitted <==

Corporate

During the quarter, the Company appointed Mr Richard Hill as an independent, Non-Executive Chairman of the Company. Mr Grant Mooney will remain as a Non-Executive Director of the Company.

Mr Kevin Joyce joined the Company as Exploration Manager. Mr Joyce is a geologist with over 25 years’ experience in successful mineral exploration and development, particularly gold, in Australia and abroad.

Related party payments

In reference to item 6.1 of the Appendix 5B Quarterly Cashflow Report, the Company recorded $58,000 worth of payments to related parties and their associates.

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

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.

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.

==> picture [384 x 38] intentionally omitted <==

—ENDS—

Page 10 of 11

==> picture [148 x 90] intentionally omitted <==

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%
Mount Monger	E25/525	Granted	Western Australia	100%
Mount Monger	E25/565	Granted	Western Australia	100%
Mount Monger	E25/586	Application	Western Australia	100%
Comet	E20/908	Granted	Western Australia	100%
Comet	E21/213	Application	Western Australia	100%
Comet	E21/214	Application	Western Australia	100%
Comet	E20/970	Application	Western Australia	100%
Tambellup	E70/4969	Granted	Western Australia	100%
Tambellup	E70/5319	Application	Western Australia	100%

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

Project	Tenement Number	Status	Location	Comment
Comet	E21/214	Application	Western Australia	100%
Comet	E20/970	Application	Western Australia	100%

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

Project	Tenement Number	Status	Location	Comment
Sandstone	E57/1118	Granted	Western Australia	100%

==> picture [384 x 38] intentionally omitted <==

Page 11 of 11