AERIS RESOURCES LIMITED — Interim / Quarterly Report 2021

Jan 27, 2021

Quarterly Activities Report | For the period ended 30 September 2020

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Quarterly Activities Report For the period ended 31 December 2020

DECEMBER QUARTER HIGHLIGHTS

About Aeris Resources

TRITTON COPPER OPERATIONS:

Aeris Resources Limited (ASX: AIS) is a diversified mining and exploration company. The Company has a growing portfolio of copper and gold operations, development projects and exploration prospects. Aeris has a clear vision to become a mid-tier mining company with a focus on gold and base metals delivering shareholder value.

Aeris’ Board and management team bring decades of corporate and technical expertise into a lean corporate structure. Its leadership has a shared, and highly disciplined focus on operational excellence, and an enduring commitment to building strong partnerships with the Company’s workforces and key stakeholders.

Headquartered in Brisbane, Aeris operates the Tritton Copper Operations (Tritton) in New South Wales, and the Cracow Gold Operations (Cracow) in Queensland.

In FY21 Aeris is targeting copper production at Tritton of between 23,500 tonnes and 24,500 tonnes and gold production at Cracow of between 70,000 ounces to 75,000 ounces.

• Copper production of 5,845 tonnes @ AISC of A$2.85/lb

• New discovery – Constellation deposit

• TAKD001 19.95m @ 2.41% Cu, 0.64g/t Au, 4.6g/t Ag from 197.20m

• TAKD002 3.55m @ 22.56% Cu, 2.57g/t Au, 16.1g/t Ag from 209.60m

• TAKD003 27.10m @ 1.61% Cu, 0.43g/t Au, 3.4g/t Ag from 233.90m

• Three EM plates identified

• Approval received for a further 25 drill holes

• Development of the exploration access drive from Tritton to Budgerygar progressing

CRACOW GOLD OPERATIONS:

• Gold production of 18,011 ounces @ AISC of A$1,567/oz

• Updated Mineral Resource for Roses Pride:

• 260% increase in gold ounces to 26koz

• Total reported Mineral Resource of 177kt @ 4.6g/t Au

• Two diamond drill rigs mobilised for near-mine underground exploration

CORPORATE:

• Cash and receivables of $59.3m

Contacts: Andre Labuschagne Executive Chairman

Suite 22, Level 2 HQ South Tower 520 Wickham Street Fortitude Valley, Brisbane QLD 4006 T +61 7 3034 6200 F +61 7 3034 6290

• Net debt of A$10.9m

• Sale of Yandan gold exploration project

FY21 GUIDANCE:

• Tritton copper production of 23.5kt to 24.5kt @ AISC between A$3.60/lb and A$3.75/lb

• Cracow gold production of 70koz to 75koz @ AISC between A$1,525/oz and A$1,575/oz

info@aerisresources.com.au www.aerisresources.com.au

Aeris Resources Limited ABN 30 147 131 977 Aeris Resources Limited Level 2, HQ South Tower, 520 Wickham Street, Fortitude Valley, Brisbane QLD 4006 Australia Post: Box 14, 520 Wickham Street, Fortitude Valley, Brisbane, QLD 4006 Australia E: info@aerisresources.com.au T: +61 7 3034 6200 F: +61 7 3034 6290 aerisresources.com.au

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Quarterly Activities Report | For the period ended 31 December 2020

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Q2 FY2021 Quarterly Activities Report

Group Safety, Environment and Community

There were no lost time injuries (LTI) or reportable environmental incidents during the quarter.

Aeris continues to prioritise the safety of its work force with a focus on improving safe behaviours. During the quarter, a “leading a safe culture” training program commenced at the Cracow Gold Operations, with Tritton Copper Operations to follow. An external audit of Tritton Copper Operations’ mine maintenance practices that help to control mobile equipment hazards was undertaken, indicating an effective maintenance program and assisting to implement further improvements.

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*12 Mth LTIFR and no of LTI’s notes the combined results of both the Tritton and Cracow operations

COVID-19 Management and measures implemented

Aeris continues to regularly review, update, and communicate further COVID-19 measures as additional information becomes available. The current measures include limiting access to operational sites to essential personnel only, limiting travel, adjusting work arrangements for site and corporate teams and increased communication to our workforce and partners.

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Aeris Resources Limited

Quarterly Activities Report | For the period ended 31 December 2020

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Tritton Copper Operations (NSW)

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PRODUCTION SUMMARY UNIT MAR 2020 JUN 2020 SEP 2020 DEC 2020
QTR QTR QTR QTR
ORE MINED TONNES 371,366 386,950 411,595 378,439
MINED GRADE Cu (%) 1.70% 1.70% 1.58% 1.69%
ORE MILLED TONNES 390,690 418,242 411,341 370,897
MILLED GRADE Cu (%) 1.68% 1.71% 1.56% 1.66%
RECOVERY Cu (%) 92.86% 93.38% 94.00% 93.76%
TOTAL COPPER PRODUCED TONNES 6,083 6,672 6,044 5,845
COST SUMMARY
MINING A$M 22.8 21.2 22.1 21.7
PROCESSING A$M 6.9 7.3 6.4 6.3
SITE G&A A$M 5.6 4.0 4.1 4.3
TC/RC’S & PRODUCT HANDLING A$M 8.6 8.9 7.5 5.9
BY-PRODUCT CREDITS A$M (4.1) (6.3) (6.9) (4.9)
ROYALTIES A$M 1.0 1.5 1.5 1.9
CORPORATE G&A [1] A$M 1.5 1.2 1.0 0.9
INVENTORY MOVEMENTS A$M 3.1 5.4 0.7 (9.5)
CAPITAL DEVELOPMENT A$M 1.8 1.9 3.5 4.6
SUSTAINING CAPITAL [2] A$M 3.8 2.1 4.6 5.4
SUSTAINING EXPLORATION A$M - - - -
A$M 51.0 47.0 44.5 36.6
ALL-IN SUSTAINING COSTS [3]
A$/lb 3.79 3.23 3.33 2.85
GROWTH CAPITAL / EXPLORATION A$M 0.2 0.5 0.3 0.7
A$M 51.2 47.5 44.8 37.3
ALL-IN COSTS [3]
A$/lb 3.81 3.26 3.35 2.90
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1 Includes Share Based Payments

2 Includes financing payments (Principal and Interest) on leased assets

3 All-In Sustaining and All-In Costs are based on copper produced

Tritton Copper Operations production of 5,845 tonnes was lower compared to the previous quarter (6,044 tonnes) and primarily related to lower ore production from the Tritton Underground Mine.

Tritton Underground Mine (Tritton)

Tritton ore production was 233kt @ 1.43% copper compared to 270kt @ 1.34% copper in the previous quarter. A partial failure of a critical stope blast in the initiating slot resulted in delays to the main stope blasting and a consequent shortage of broken ore stocks. Tritton mine is operated with a low number of actives stopes and therefore problems with a stope blast can result in a low broken ore stock event. Careful control of stope blasting is required to control the risk from limited flexibility. Priority is now placed on recovery of the delayed ore production.

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Aeris Resources Limited

Quarterly Activities Report | For the period ended 31 December 2020

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The paste backfill pipeline was blocked in November due to a control system fault in the paste manufacture plant. Sufficient pipeline had been cleaned to allow paste running to the upper levels of the mine during December. Clearing the remainder of the pipeline is progressing quickly. Triton’s paste backfill system has an instantaneous capacity double the required average placement rate, so recovery from the blockages is expected to be rapid.

Production from the remaining upper-level remnant pillars restarted after a paste filling campaign. The remnant pillars are a small resource located in the higher levels of the mine. These higher-grade pillars (+2.5% Cu) were left between stopes in early years of the mine life, prior to the mine having a paste backfill system. Pillar recovery mining is slow and technically difficult due to deteriorated ground conditions and poor access. It has been progressing at a reasonable rate and is expected to be completed in the current year.

Murrawombie Underground Mine (Murrawombie)

Murrawombie ore production of 146kt @ 2.12% was higher than the prior quarter (141kt @ 2.04% g/t). Mobilisation of additional contract stope drilling capacity in the prior quarter resulted in a healthy quantity of drilled stocks. We have been able to draw on these stocks to partially offset the lower ore production at Tritton mine during the quarter.

Access decline development at Murrawombie has been paused to allow time for resource extension and grade control diamond drilling of the deposit below the current mining areas.

Ore Processing

Ore processed during the quarter at 371kt was lower than the previous quarter (412kt) due to the lower ore production from Tritton.

A planned plant shutdown for the grinding mill reline was completed in November. The opportunity was also taken to improve plant safety and productivity by installing new access platforms in the grinding area.

Copper recovery of 93.76% for the quarter was in line with previous quarter (94.00%).

Costs

All-In Sustaining Costs (AISC) for the quarter at A$2.85/lb were lower than the previous quarter of A$3.33/lb. Lower product handling charges and inventory movements contributed to the difference. A single shipment of concentrate that slipped from last quarter into early this quarter explains the inventory movement.

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Aeris Resources Limited

Quarterly Activities Report | For the period ended 31 December 2020

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Outlook

FY21 copper production guidance at Tritton Copper Operations is unchanged at between 23,500 tonnes and 24,500 tonnes at an AISC of between A$3.60/lb and A$3.75/lb.

Construction of the development drive from Tritton to Budgerygar to be completed in the March quarter and resource definition drilling to commence.

Downhole EM surveys on the recently completed deep drill holes at Tritton and Murrawombie.

Exploration drilling to continue at the new Constellation deposit, (previously named Anomaly K), in the March quarter. Downhole EM surveys and a fixed loop EM survey will also be undertaken.

Cracow Gold Operations (QLD)

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PRODUCTION SUMMARY UNIT SEP 2020 DEC 2020
QTR QTR
ORE MINED TONNES 139,706 134,534
MINED GRADE g/t 4.70 4.40
ORE MILLED TONNES 144,972 160,446
MILLED GRADE g/t 4.65 3.80
RECOVERY % 93.29% 91.93%
TOTAL OUNCES PRODUCED oz 20,237 18,011
TOTAL GOLD SOLD & ACCRUED oz 21,246 17,248
COST SUMMARY
MINING A$M 9.0 11.3
PROCESSING A$M 5.4 5.6
SITE G&A incl selling costs A$M 3.2 3.1
BY-PRODUCT CREDIT A$M (0.5) (0.4)
ROYALTIES A$M 3.2 2.2
CORPORATE G&A [1] A$M 1.0 1.0
INVENTORY MOVEMENTS A$M 0.4 -
CAPITAL DEVELOPMENT [2] A$M 4.5 3.1
SUSTAINING CAPITAL A$M 0.9 1.3
SUSTAINING EXPLORATION A$M - -
A$M 27.1 27.2
ALL-IN SUSTAINING COSTS [3]
A$/oz 1,282 1,567
GROWTH CAPITAL / EXPLORATION A$M 0.8 4.5
A$M 27.9 31.7
ALL-IN COSTS [3]
A$/oz 1,321 1,827
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1 Includes Share Based Payments

• 2 Mine development includes 100% of UG mine development capital

• 3 All-In Sustaining and All-In Costs are based on gold sold and accrued

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Aeris Resources Limited

Quarterly Activities Report | For the period ended 31 December 2020

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Cracow Underground Mine (Cracow)

Cracow ore production of 135kt was in line with plan but lower than the previous quarter (140kt). Variation in mine production is to be expected when we are testing the limits of mining capacity as we rebuild the long-term plan. Mining activities continued to focus on improving development and backfilling rates.

Cracow gold grade @ 4.4 g/t was lower than the previous quarter (4.7 g/t). The grade variation was expected as the scheduled stope sequence moved into lower grade areas. The new long-term plan being developed is expected to show more grade variation from period to period than historically, as extending mine life is now being developed as a target to be balanced against short run high production grades. Previously the strategy has been to optimize the mine plan to maximise near-term gold grades – Aeris’ strategy since acquiring Cracow has been to find the economic balance on gold grade versus mine life extension through maximizing extraction of the Resource.

Ore Processing

Ore milled at 160kt was ahead of plan and well ahead of the previous quarter (145kt).

Over the past few months the processing team have been actively working towards de-bottlenecking both the crushing circuit and the processing plant with the goal of increasing mill throughput and thus metal recovered. This has now started to yield results, with the mill achieving a number of throughput tonnage records in the December quarter:

• Highest daily milled tonnes: 1,951dmt on 14 October 2020

• Highest weekly milled tonnes: 13,103dmt between 11 October 2020 – 17 October 2020

• Highest monthly milled tonnes: 53,942dmt in October 2020

• Highest quarterly milled tonnes: 160,446dmt in Q2 FY21

The processing team have now clearly demonstrated the processing plant has an annual capacity of 600,000 tonnes, exceeding the previous assumed limit of 570,000 tonnes per annum. Over the coming months a number of low-cost debottlenecking capital projects will commence to ensure the increased throughput rate can be sustained.

Feed to the processing plant that exceeds mine production comes from the significant stockpiles of low-grade material. Low grade stockpiles were accumulated from historical open pit mining and grades in this material are variable due to a lack of good historical records.

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Aeris Resources Limited

Quarterly Activities Report | For the period ended 31 December 2020

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Gold recovery was 91.93% for the quarter, compared to the previous quarter at 93.29%, and was impacted by the increased volumes of low-grade stockpile material processed during the quarter.

Costs

All-In Sustaining Costs (AISC) for the quarter at A$1,567/oz is higher than the previous quarter ($1,282/oz), impacted by lower metal production and increased mining costs due to increased mine development.

Tailings Storage Facility No.2

During the quarter, construction commenced on a new multi-stage tailings storage facility at Cracow (TSF No.2). Cracow is currently discharging tailings into Tailing Storage Facility No.1, (TSF No.1), which has reached its maximum allowable construction height. It is estimated that the construction of TSF No.2, stage 1, will be completed by June 2021 at an estimated cost of $14 million.

Investing in a multi-stage tailings storage facility with a capacity greater than 5 years reflects our investment thesis that the Cracow mine life can be extended by a sustained high quality exploration effort.

Outlook

FY21 gold production guidance at Cracow Gold Operations is unchanged at between 70,000 to 75,000 ounces at an AISC of between A$1,525/oz and A$1,575/oz.

Aeris continues to review the long-term mine plan, targeting opportunities to increase ore production in line with the upgraded processing capacity.

Further exploration drilling is planned in the first half of 2021 to support open pit Mineral Resource estimates. Underground drilling of near mine exploration targets will also continue with two underground drill rigs now on site. Downhole EM surveys on TAKD002 – TAKD004 will be undertaken during the March quarter.

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Aeris Resources Limited

Quarterly Activities Report | For the period ended 31 December 2020

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Exploration and Project Development

EXPLORATION – TRITTON COPPER OPERATIONS

The Tritton tenement package covers 2,160km[2] in central western New South Wales. To date over 750,000 tonnes of copper, including the Current Mineral Resource deposits[1] , has been discovered within the southern half of the tenement package.

Following the completion of two regional airborne electromagnetic (AEM) surveys totalling 678 km[2] area over a majority of the northern half of the tenement package, on-ground exploration has focused on activities over this area. The northern half of the tenement package, until recently, has not been subject to modern exploration and remains largely under-explored.

Constellation Deposit (previously known as Anomaly K)

The Constellation deposit is located approximately 45 kilometres north east from the Tritton Operation in central western New South Wales. The deposit was first detected via an airborne electromagnetic survey with follow-up ground moving loop (MLTEM) surveying completed in the previous quarter. The MLTEM survey verified the EM response represented a legitimate bedrock conductor. Two bedrock conductors were identified.

Exploration activities completed at the Constellation deposit during the quarter included the commencement of a first pass drill program designed to test whether the modelled conductive bodies (bedrock conductors) are associated with sulphides.

Four drill holes (TAKD001 – TAKD004) were completed by quarter end with three drill holes intersecting significant copper mineralisation. Drill holes TAKD001, TAKD003 and TAKD004 all targeted the larger eastern bedrock conductor. TAKD002 targeted a separate EM plate to the west.

1 30 June 2020 Mineral Resource 17.5Mt @ 1.5% Cu for 250kt Cu metal

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Aeris Resources Limited

Quarterly Activities Report | For the period ended 31 December 2020

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Figure 1 – Plan view over the Constellation deposit showing the location of completed drill holes and the modelled EM bodies.

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At the larger EM plate to the east, copper sulphide mineralisation was intersected in TAKD001 and TAKD003. Both intersections are very similarly characterised by two higher grade copper intervals separated by a sulphide poor low grade copper horizon. Assay results reported from both drill holes include:

• TAKD001 19.95m @ 2.41% Cu, 0.64g/t Au, 4.6g/t Ag from 197.2m including;

• 5.6m @ 1.43% Cu, 0.53g/t Au, 2.4g/t Ag

• 7.55m @ 4.71% Cu, 0.99g/t Au, 9.2g/t Ag

• TAKD003 27.10m @ 1.61% Cu, 0.43g/t Au, 3.4g/t Ag from 233.90m including;

• 6.30m @ 2.30% Cu, 0.47g/t Au, 4.8g/t Ag

• 10.80m @ 2.37% Cu, 0.66g/t Au, 4.9g/t Ag

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Aeris Resources Limited

Quarterly Activities Report | For the period ended 31 December 2020

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Drill hole TAKD004 targeted the northern margin of the modelled EM conductor and intersected a series of graphitic shear zones above and close to the target depth (190 metres down hole). The presence of several graphitic shears in the drill hole is worth noting. Similar graphitic shears at the Murrawombie deposit are often located proximal to mineralisation.

Down hole electromagnetic (DHEM) surveys will be completed on both TAKD003 and TAKD004 in the coming weeks to assist with refining the geometry of the conductive body which represents the massive sulphide component.

Figure 2 – Cross section through the Constellation deposit showing the hole path and location of sulphides intersected from drill holes TAKD001 – TAKD003.

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Drill hole TAKD002 was the second hole drilled at the Constellation deposit and was designed to intersect the smaller EM plate defined from the ground EM survey, approximately 300 metres west of the larger plate targeted by TAKD001 (refer Figure 1).

TAKD002 intersected a 3.55 metre thick massive sulphide interval from 61.05 metres down hole. Copper minerals identified include chalcopyrite, chalcocite and minor malachite and azurite. The presence of secondary copper minerals (chalcocite, malachite and azurite) indicates the drill hole intersection is associated with a supergene enriched copper halo below the base of oxidation. Reported assay results returned from the massive sulphide zone are:

 3.55m @ 22.56% Cu, 2.57g/t Au, 16.1g/t Ag

Core loss is recorded through the mineralised horizon (25% core loss) and within the surrounding turbidite sediments. It is not clear whether the core loss is associated with sulphide occurrence or the host turbidite sediments.

A down hole EM (DHEM) survey at TAKD002 has been completed. Results from the survey identified two EM conductors (refer Figure 3).

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Aeris Resources Limited

Quarterly Activities Report | For the period ended 31 December 2020

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The first conductive response between 60 metres to 65 metres down hole is associated with the massive sulphides intersected in TAKD002. The modelled plate is ~15m x ~15m and modelled with a high conductance (~5,000S).

The second conductive response is larger (20m x 60m) and located 15 metres off-hole, south, from TAKD002. The modelled conductance (10,000S to 20,000S) is exceptionally high for conductive bodies modelled within the Tritton tenement package. Current thinking is the off-hole EM conductor is likely to be massive sulphides due to the extremely high conductance and spatial location adjacent to the massive sulphides intersected in TAKD002.

Figure 3 – Images showing the location and dimensions of both DHEM plates detected from drill hole TAKD002.

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Murrawombie Deposit

At the Murrawombie deposit, one exploration drill hole was completed during the quarter. Drill hole TMWD008 was collared from surface and targeted the projected down plunge extension to the known Murrawombie mineralised system from 250 metres to 300 metres beneath the current drilling footprint.

Although the drill hole did not intersect copper sulphide mineralisation, zones of chlorite and sericite alteration, including several graphitic faults were intersected. Similar alteration features and graphitic faults are observed proximal to the current mined lodes at Murrawombie. A down hole EM (DHEM) survey is planned to be completed on drill hole TMWD008 in the forthcoming quarter to detect for conductive bodies within a 200 metre radius. The results from the DHEM survey will guide further exploration drilling at Murrawombie.

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Aeris Resources Limited

Quarterly Activities Report | For the period ended 31 December 2020

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Underground drilling will continue at Murrawombie in the coming quarter with Resource definition drilling targeting the Inferred Mineral Resource inventory associated with lodes 111, 113 and 115.

Figure 4 – Long section view of the Murrawombie deposit showing pierce points through lodes 111, 113 and 115 and surface drill hole TMWD008 hole trace.

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Tritton – Budgerygar Corridor

Exploration drilling at the Tritton deposit was limited to one drill hole (TRGC1064). TRGC1064 was designed to target the projected down plunge continuation of the Tritton deposit approximately 150 metres below current drilling.

The drill hole intersected a very minor amount of sulphides (predominately pyrite based on visual observations). A DHEM survey is planned to be completed on the drill hole in the March quarter. The DHEM survey will be used to detect for conductive bodies within a 200 metre radius from the drill hole and assist with drill targeting.

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Aeris Resources Limited

Quarterly Activities Report | For the period ended 31 December 2020

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Development of an exploration access drive from the Tritton decline toward the Budgerygar deposit continued during the quarter and is scheduled to be completed in the March quarter. The exploration drive will provide a drill platform for resource definition drilling, targeted at converting current Inferred Mineral Resource[2] to an Indicated Mineral Resource category.

Figure 5 – Long section view of the Tritton and Budgerygar deposits showing drilling targets (red shaded rectangles) and the projected exploration access drive from Tritton to Budgerygar.

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Drill target
window
Exploration
access drive
Tritton deposit
Budgerygar
deposit
Drill target
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2 Budgerygar June 2020 Reported Inferred Resource 2.3 Mt @ 1.5% Cu

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Aeris Resources Limited

Quarterly Activities Report | For the period ended 31 December 2020

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EXPLORATION – CRACOW GOLD OPERATIONS

Since Aeris took ownership of the Cracow Gold Operations at the beginning of July 2020, one of the key focuses is mine life extension. The Company has budgeted to spend $13 million on exploration activities over the first two years of ownership, on both greenfields and brownfields exploration.

Key exploration activities undertaken during the quarter included:

• Roses Pride Deeps drilling from surface;

• Roses Pride Mineral Resource update;

• Klondyke – Royal Mineral Resource Update; and

• Underground near-mine targets

Roses Pride Deeps Surface Drilling

Surface drilling at the Roses Pride Deeps target continued during the quarter with a further two drill holes (CRD106 and CRD107) completed. A total of three drill holes have now tested the target.

Previous underground mining at Roses Pride is located within the “upper mineralised panel”, a favourable stratigraphic sequence within the Western Field. The underlying volcaniclastic stratigraphic sequence referred to as the ‘FoD’ has historically not been considered prospective. Recent stratigraphic reinterpretation across the Western Field has provided a greater understanding of the lateral extent, thickness and lithological facies variations within each unit, including the FoD.

Drill holes CRD106 and CRD107 were designed to test for lateral continuity of a potentially favourable stratigraphic unit (a coherent intermediate intrusive) located within the FoD at the intersection with the interpreted down dip continuation of the Roses Pride mineralised structure.

Both drill holes intersected the favourable coherent unit within the FoD stratigraphic domain. At the interpreted position of the Roses Pride mineralised structure a subtle fault with weak quartz veining was intersected. Due to the poor volume of epithermal quartz veining, these intersections are not considered prospective and significant assays are not anticipated (assay results are pending). In spite of this, the general target concept remains prospective. Further drilling will be considered along the newly identified stratigraphic horizon within the FoD further along strike (north). The intent of such drilling would be to test for sites of increased epithermal vein volume, in response to greater dilation along the Roses Pride mineralised structure.

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Aeris Resources Limited

Quarterly Activities Report | For the period ended 31 December 2020

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Figure 6 – Cross section through the Roses Pride deposit. Showing mined structure and the projected down plunge extension within an interpreted favourable unit below the FoD.

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Roses Pride Mineral Resource Update

An updated Mineral Resource estimate for the Roses Pride deposit was completed during the quarter (refer to ASX Announcement “Roses Pride Mineral Resource Update” dated 6[th] January 2021). The updated Mineral Resource represents a 260% increase in total contained gold ounces compared to the previously reported Mineral Resource (December 2019). The updated Mineral Resource contains 177,000 tonnes at 4.6 grams per tonne gold for 26.1 thousand ounces of gold.

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Aeris Resources Limited

Quarterly Activities Report | For the period ended 31 December 2020

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The updated Mineral Resource is based on a combination of additional drilling data and an alternate reporting schema. Further drilling is planned in the first half of 2021 to continue drill testing the Roses Pride mineralised system.

Klondyke – Royal Mineral Resource Update

Work on an updated Mineral Resource estimate for the Klondyke and Royal deposits commenced during the quarter. The updated Mineral Resource estimate is being prepared following the completion of an RC drill program across both deposits in the September quarter (refer to September 2020 Quarterly Activities Report).

The Klondyke and Royal deposits are high grade shoots which form along the same mineralised structure. The RC drill program, totalling 23 drill holes, was designed to infill around existing drill hole data above the higher grade Klondyke deposit and test the extents of mineralisation along the structure between the two deposits.

Figure 7: Klondyke and Royal long section view showing Au intersections from the recently completed 2020 drill program (annotated) and pre 2020 drilled Au intersections.

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Underground near-mine targets

A detailed geological review defining additional drill targets surrounding underground infrastructure was completed during the quarter. The review identified a significant number of targets in proximity to current underground workings.

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Aeris Resources Limited

Quarterly Activities Report | For the period ended 31 December 2020

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A second drill rig arrived onsite and commenced drilling on the 8[th] January to accelerate drill testing of the near mine targets, in-conjunction with infill grade control drilling.

Drilling in the December quarter primarily focused on testing the Kenneth exploration target. The Kenneth drill target, located along strike from the currently mined Killarney deposit, represents an approximate 350 metre x 100 metre target horizon. During the quarter a total of six drill holes were completed at the Kenneth target. The drill holes have intersected significant quartz vein volume with some epithermal vein textures through the target horizon.

Significant assay results returned during the quarter from the Kenneth drilling include:

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Prior to the current drill program only three historical drill holes have intersected the target horizon, with two returning significant assays including:

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There remains a significant portion of the Kenneth exploration target that requires drill testing, which will continue in the March quarter.

Figure 8: Long section view showing the Kenneth near mine exploration drill target.

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Aeris Resources Limited

Quarterly Activities Report | For the period ended 31 December 2020

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EXPLORATION – TORRENS

The Torrens Project (EL6407), a joint venture between Aeris Resources (70% interest) and Kelaray Pty Ltd (a wholly owned subsidiary of Argonaut Resources NL), is exploring for iron-oxide copper-gold (IOCG) systems in the highly prospective Stuart Shelf region of South Australia. The Torrens Project is located on Lake Torrens, near the eastern margin of South Australia’s Gawler Craton and lies within 50 kilometres of Oz Minerals’ Carrapateena deposit and BHP’s Oak Dam West discovery, and 75 kilometres from BHP’s Olympic Dam mine.

A trial passive seismic survey was completed at Lake Torrens within the quarter. The aim of the survey is to more accurately identify the cover sequences above the basement rocks to assist with refining geological and geophysical models. Processing and interpretation of the passive seismic data will occur in the March quarter.

Figure 9: Map showing location of EL 6407 (The Torrens Project).

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Aeris Resources Limited

Quarterly Activities Report | For the period ended 31 December 2020

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Corporate

Cash

At the end of the December quarter, Aeris had useable cash and receivables of $59.3 million, a decrease compared to the previous quarter, impacted by the lower copper production at the Tritton Copper Operations.

(A$ Million)	SEP	DEC
	2020	2020
	QTR	QTR
Useable Cash Tritton - Copper concentrate receivables Cracow – gold/silver dore receivables	41.7 22.4 -	45.5 13.8 -
Useable Cash and Receivables	64.1	59.3

Debt

Aeris made its second repayment of A$7.5 million on the A$30 million Tranche C Acquisition Bridging Facility on 10 December 2020, three weeks ahead of the scheduled payment date of 1 January 2021.

Aeris also made a voluntary US$2 million repayment off the Tranche B Facility.

Debt balances as at 31 December 2020

Debt	Maturity	US$m Balance	A$m Balance1
Tranche A	1 July 2023	23.1	29.8
Tranche B	1 July 2023	9.0	11.6
Tranche C	1 July 2021	-	15.0
TOTAL		32.1	56.4

1 US$ debt converted to A$ equivalent at FX 0.7735

Net debt (A$ equivalent debt less useable cash) as at 31 December 2020 was A$10.9m.

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Gold and Copper Hedging

The outstanding hedge profile of the Group as at 31 December 2020 is shown in the table below:

		MAR	JUN	SEP
		2021	2021	2021
	Unit	QTR	QTR	QTR
Gold Hedge Hedge price Copper Hedge	Oz A$/oz TONNES	9,000 2,536.25 3,166	9,000 2,536.25 2,499	- - 833
Hedge price	A$/t	9,165.84	9,228.00	9,228.00

Sale of the Yandan gold exploration project

On 20 October 2020 Aeris announced that it had sold its Yandan gold exploration project, located in Queensland’s Drummond Basin, to GBM Resources Limited (GBM).

As consideration for the sale of Yandan, Aeris will receive $3 million of GBM shares and a 1.5% Net Smelter Royalty on the first 300,000 ounces of gold equivalent mined from the Yandan tenements.

Concurrently Aeris is to subscribe for $1 million in GBM shares through a separate placement.

The transaction was completed on 13 January 2021.

Authorised for lodgement by: Andre Labuschagne Executive Chairman

ENDS

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For further information, please contact:

Mr. Andre Labuschagne Executive Chairman Tel: +61 7 3034 6200, or visit our website at www.aerisresources.com.au

Media:

Peta Baldwin Cannings Purple Tel: 0477 955 677 pbaldwin@canningspurple.com.au

About Aeris

Aeris Resources Limited (ASX: AIS) is a diversified mining and exploration company. The Company has a growing portfolio of copper and gold operations, development projects and exploration prospects. Aeris has a clear vision to become a mid-tier mining company with a focus on gold and base metals, delivering shareholder value.

Aeris’ Board and management team bring decades of corporate and technical expertise in a lean corporate structure. Its leadership has a shared, and highly disciplined focus on operational excellence, and an enduring commitment to building strong partnerships with the Company’s workforces and key stakeholders.

Headquartered in Brisbane, in FY21 Aeris is forecasting to produce between 23,500 and 24,500 tonnes of copper from its Tritton Copper Operation in New South Wales, and between 70,000 and 75,000 ounces of gold from its Cracow Gold Operation in Queensland.

References in this report to “Aeris Resources Limited”, “Aeris” and “Company” include, where applicable, its subsidiaries.

Competent Persons Statement – Exploration Results

The information in this report that relates to Exploration Results or Mineral Resources is based on information compiled by Bradley Cox, a Competent Person who is a Member of the Australasian Institute of Mining and Metallurgy. Bradley Cox is a full-time employee of Aeris Resources. Bradley Cox has sufficient experience that 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’. Bradley Cox consents to the inclusion in the report of the matters based on his information in the form and context in which it appears.

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APPENDIX A:

Table 1 – Collar details for drill holes completed during the quarter targeting extensions to mineralisation at Murrawombie and Tritton.

Hole ID	Northing	Easting	RL	Dip	Azimuth	Depth(m)
TMWD0081	10013.470	6581.390	5196.07	-75.0	297.8	1037.2
TRGC10642	18798.165	31499.669	4091.68	-38.6	127.5	800.8

1Easting and northing coordinates are reported in Murrawombie mine grid. Azimuth values are transposed to the Murrawombie mine grid.

2 Easting and northing coordinates are reported in Tritton mine grid. Azimuth values are transposed to the Tritton mine grid.

Table 2 – Significant drill hole intersections through the various Murrawombie mineralised zones from drill holes completed during the quarter or assay results received during the quarter.

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Length True thickness Cu grade
Hole ID From (m) To (m) Lode
(m) (m) (%)
MWGC523 286.80 297.95 11.15 4.90 1.16 115
MWGC524A 281.00 292.00 11.00 4.30 1.19 115
MWGC525 134.90 141.10 6.20 4.50 4.07 111
MWGC525 190.50 195.90 5.40 3.10 1.32 113
MWGC525 256.80 270.95 14.15 6.70 1.36 115
MWGC527 233.40 240.80 7.40 4.60 1.15 113
MWGC528 332.30 343.60 20.25 9.90 1.10 115
MWGC530 287.15 291.50 4.35 3.20 1.02 113
MWGC530 348.30 359.85 11.55 5.10 1.44 115
MWGC531 377.30 382.90 5.60 3.50 1.57 115
MWGC532 328.45 340.05 11.60 6.20 1.23 113
MWGC532 377.90 384.10 6.20 3.10 1.02 115
MWGC535 335.30 344.60 9.30 3.80 1.73 115
MWGC536 146.70 152.10 5.40 4.10 1.04 111
MWGC536 271.60 283.50 11.90 5.40 1.41 115
MWGC537 212.80 223.65 10.85 6.10 1.59 115
MWGC538 142.50 156.60 14.10 9.20 2.09 111
MWGC538 257.00 258.80 1.80 1.40 2.40 115
MWGC539 203.20 203.50 0.30 0.20 1.21 115
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• Composites are based on a 0.5% Cu cut-off and can include up to 3.0 metre of internal dilution.

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APPENDIX B:

JORC Code, 2012 Edition – Murrawombie and Tritton Deposits Table 1

Section 1 - Sampling Techniques and Data

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Criteria Commentary
Sampling Drilling
techniques 1. All samples have been collected from diamond drill core.
2. Samples taken over a mineralised interval are collected in
a fashion to ensure a majority are 1.0m in length, whilst the
HW and FW sample are as close to 1.0m as possible. Most
samples are collected at 1.0 metre intervals. HW and FW
intervals are taken as close to 1.0 metre.
Drilling 1. Drilling results reported are via diamond drill core (NQ
diameter).
techniques
Drill sample 1. Core recoveries are recorded by the drillers on site at the
drill rig. Core recoveries are checked and verified by an
recovery
Aeris Resources field technician and/or geologist.
2. Diamond drill core is pieced together as part of the core
orientation process. During this process depth intervals are
recorded on the core and checked against downhole
depths recorded by drillers on core blocks within the core
trays.
3. Historically core recoveries are very high within and outside
zones of mineralisation. Diamond core drilled to date from
the current drill program have recorded very high
recoveries and is in line with the historical observations.
Logging 1. All diamond drill core is logged by an Aeris Resources
geologist. Drill core is logged to an appropriate level of
detail to increase the level of geological knowledge and
further the geological understanding at each prospect.
2. All diamond core is geologically logged, recording
lithology, presence/concentration of sulphides, alteration,
and structure.
3. All geological data recorded during the core logging
process is stored in Aeris Resources AcQuire database.
4. All diamond drill core will be photographed and digitally
stored on the Company network.
5. Core is stored in core trays and labelled with downhole
meterage intervals and drill hole ID.
Sub-sampling 1. All samples collected from diamond drill core are
techniques and collected in a consistent manner. Samples are cut via an
automatic core saw, and half core samples are collected
sample
on average at 1 metre intervals, with a minimum sample
preparation length of 0.4 metre and a maximum length of 1.4 metre.
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Criteria Commentary
2. No field duplicates have been collected.
3. The sample size is considered appropriate for the style of
mineralisation and grain size of the material being
sampled.
Quality of assay 1. All samples are sent to ALS Laboratory Services at their
data and Orange facility.
laboratory tests 2. Samples are analysed by a 3 stage aqua regia digestion
with an ICP finish (suitable for Cu 0.01-1%) – ALS method
ME-ICP41. Samples with Cu assays exceeding 1% will be
re-submitted for an aqua regia digest using ICP-AES
analysis – ALS method ME-OC46. Au analysis will be
performed from a 30g fire assay fusion with an AAS finish
(suitable for Au grades between 0.01-100ppm) – ALS
method Au-AA22. If a sample records an Au grade above
100ppm another sample will be re-submitted for another
30g fire assay charge using ALS method Au-AA25.
3. QA/QC protocols include the use of blanks, duplicates
and standards (commercial certified reference materials
used). The frequency rate for each QA/QC sample type is
5%.
Verification of 1. Logged drillholes are reviewed by the logging geologist
sampling and and a senior geologist. All geological data is logged
directly into Aeris Resources logging computers following
assaying
the standard Aeris Resources geology codes. Data is
transferred to the AcQuire database and validated on
entry.
2. Upon receipt of the assay data no adjustments are made
to the assay values.
Location of data 1. Drillhole collar locations are surveyed via a qualified
points surveyor.
2. All drillhole locations at Murrawombie are referenced in a
local mine grid. The Murrawombie Mine Grid origin (0E, 0N)
= 490306.92mE 6530140.69mN (AGD66). Grid North =
318.259 true. All drill hole locations at Tritton are
referenced in a local mine grid. The Tritton Mine Grid is
rotated 8.423° to the west from AGD66 Zone 55 true north.
3. Quality and accuracy of the drill collars are suitable for
exploration results.
4. Downhole surveys taken during drilling are completed by
the drill contractor using a Reflex gyroscopic tool
measuring azimuth and dip orientations every 30 metres or
shorter intervals if required.
Data spacing 1. Drill spacing at the Murrawombie deposit is spaced
and distribution between 20 metres to 80 metres down plunge. Drillhole
spacing along strike is similarly varied ranging between 20
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Criteria Commentary
metres to 80 metres.
2. The drill spacing at Murrawombie is appropriate to assess
the potential size and grade of a mineralised system to an
Inferred and Indicated Mineral Resource status.
Orientation of 1. All drillholes are designed to intersect the target at, ideally
data in relation to right angles. However, the limited drill locations available
does mean that for some drillholes the intersection angle
geological to mineralisation is more acute.
structure
2. Each drillhole completed has not deviated significantly
from the planned drillhole path.
3. Drillhole intersections through the target zones are not
biased.
Sample security 1. Drillholes have not been sampled in their entirety. Sample
security protocols follow current procedures which include:
samples are secured within calico bags and transported to
the laboratory in Orange, NSW via a courier service or with
Company personal.
Audits or reviews 1. Data is validated when uploading into the Company
AcQuire database.
2. No formal audit has been conducted.
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Murrawombie and Tritton Deposits (current drill programs)

Section 2 - Reporting of Exploration Results

Criteria	Commentary
Mineral tenement and land tenure status	1. The Tritton Regional Tenement package is located approximately 45 kilometres north-west of the township of Nyngan in central western New South Wales. 2. The Tritton Regional Tenement package consists of 7 Exploration Licences and 3 Mining Leases. The mineral and mining rights are owned 100% by the Company. 3. The Murrawombie deposit is located within ML1280. ML1280 is in good standing and no known impediments exist.
Exploration done by other parties	1. Regional exploration has been completed over the currently held tenement package by Utah Development Co in the early 1960’s to early 1970’s. Australian Selection P/L completed exploration throughout the 1970’s to late 1980’s prior to NORD Resources throughout the late 1980’s and 1990’s. This included soil sampling and regional magnetics which covered the Avoca, Greater Hermidale, Belmore and Thorndale project areas. Principally exploration efforts were focused on the discoveryof oxide

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Criteria Commentary
copper mineralisation. NORD Resources also completed
some shallow reverse circulation (RC) drilling over the
Avoca Tank Resource. Subsequent exploration efforts have
been completed by Tritton Resources Pty Ltd with the
drilling over a number of RC drillholes within the Greater
Hermidale region in the late 1990’s similarly focused on
heap leachable oxide copper mineralisation, prior to the
acquisition of the Tritton Resources Pty Ltd by Straits
Resources Limited in 2006.
Geology 1. Regionally mineralisation is hosted within early to mid-
Ordovician turbidite sediments, forming part of the
Girilambone group. Mineralisation is hosted within
greenschist facies, ductile deformed pelitic to psammitic
sediments, and sparse zones of courser sandstones.
2. Sulphide mineralisation within the Tritton tenement
package is dominated by banded to stringer pyrite –
chalcopyrite, with a massive pyrite-chalcopyrite unit along
the hanging wall contact. Alteration assemblages
adjacent to mineralisation is characterised by an ankerite
footwall and silica sericite hanging wall.
Drillhole 1. All relevant information pertaining to each drillhole has
information been provided.
Data 1. All historical assay results reported represent length
aggregation weighted composited assays. Compositing was applied to
intervals which nominally exceeded 0.5% Cu with a
methods
maximum of 3.0 metres internal dilution. No top cutting of
assay results was applied.
Relationship 1. Drillholes are designed to intersect the target horizon
between across strike at or near right angles. However, some drill
intersections have intersected mineralisation at shallow
mineralisation
angles and mineralised intersections are longer than the
widths and true thickness.
intercept lengths
Diagrams 1. Relevant diagrams are included in the body of the report.
Balanced 1. The reporting is considered balanced and all material
reporting information associated with the drill results has been
disclosed.
Other substantive 1. There is no other relevant substantive exploration data to
exploration data report.
Further work 1. Drilling will continue at Murrawombie with additional drilling
planned to test the extents of the mineralised system
further.
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APPENDIX C:

Table 3 – Collar details for drill holes completed during the quarter targeting the Kenneth near mine exploration target.

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Hole ID Northing [1] Easting RL Dip Azimuth Depth (m)
KEU001 5412.571 -164.813 1610.929 -37.7 4.6 326.9
KEU002 5412.555 -165.067 1610.63 -47.8 358.6 392.7
KEU003 5412.501 -165.504 1610.589 -48.0 347.0 323.7
KEU004 5412.577 -164.987 1611.028 -35.0 358.0 270.4
KEU005 5412.539 -165.338 1610.999 -36.6 350.0 213
KEU006 5412.56 -164.899 1611.462 -20.6 5.8 185.9
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1Easting and northing coordinates are reported in Klondyke mine grid. Azimuth values are transposed to the Klondyke mine grid.

Table 2 – Significant drill hole intersections through the Kenneth near mine exploration target.

exploration	target.
Hole ID	From (m)	To (m)	Length (m)	True thickness (m)	Au grade (%)
KEU001	208.00	209.00	1.00	0.8	2.62
KEU001	217.00	218.00	1.0	0.8	3.48

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APPENDIX D:

JORC Code, 2012 Edition – Kenneth Near Mine Exploration Drill Program Table 1

Section 1 - Sampling Techniques and Data

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Criteria Commentary
Sampling Drilling
techniques 1. All samples have been collected via diamond drilling.
2. A majority of the samples are collected at 1 metre intervals.
A majority of samples are full core samples. For wider spaced
drill holes half core samples are taken. Sample weights range
from 2 kg to 4kg depending on sample length and half or
whole core.
3. Samples are sent to an independent and accredited
laboratory (ALS Brisbane). Samples less than 3kg are
pulverised to a nominal 85% passing 75 microns. If sample
weights exceed 3kg they are split via a rotary splitter and an
approximate 3kg sub sample retained and pulverised. After
pulverisation a 50g sample is collected for fire assay.
4. The sample size and sample preparation techniques are
considered appropriate for the style of mineralisation.
5. Industry prepared standards are inserted approximately 1 in
20 samples.
6. The samples are considered representative and appropriate
for this type of drilling.
Drilling 1. Drill holes are completed via diamond drilling (NQ2 diameter).
techniques
Drill sample 1. Core recoveries are recorded by the drillers on site at the drill
rig. Core recoveries are checked and verified by an Aeris
recovery
Resources field technician and/or geologist.
2. Diamond drill core is pieced together as part of the core
orientation process. During this process depth intervals are
recorded on the core and checked against downhole
depths recorded by drillers on core blocks within the core
trays.
3. Historically core recoveries are very high within and outside
zones of mineralisation. Diamond core drilled to date from
the current drill program have recorded very high recoveries
and is in line with the historical observations.
Logging 1. All diamond core is logged by an Aeris employee or a fully
trained contract geologist.
2. All diamond core is geologically logged, recording lithology,
vein quantity/texture/mineralogy, alteration and weathering.
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Criteria Commentary
3. All geological and sample data is captured electronically
within LogChief Software and uploaded to Aeris Resources
licenced Datashed database.
4. All diamond drill core is photographed and digitally stored on
the Company network.
5. Core is stored in core trays and labelled with downhole
meterage intervals and drill hole ID.
Sub-sampling 1. All samples collected from diamond drill core are collected in
techniques a consistent manner. Half core samples are cut via an
automatic core saw, and half core samples are collected on
and sample
average at 1 metre intervals, with a minimum sample length
preparation of 0.4 metre and a maximum length of 1.4 metre. For whole
core samples the entire sample interval is collected.
2. Industry prepared independent standards are inserted
approximately 1 in 20 samples.
3. The sample size is considered appropriate for the style of
mineralisation and grain size of the material being sampled.
Quality of 1. All samples are sent to ALS Laboratory Services at their
Brisbane facility for sample preparation. Sub 3kg samples are
assay data
pulverised to 85% passing 75 microns. If samples are greater
and laboratory
than 3kg they are split prior to pulverising.
tests
2. Samples are assayed via ME-MS61 which is a low detection
multi-element analytical method. Au assaying is via a 50g fire
assay charge (Au-AA26) using a AAS finish. Au assaying is
completed at ALS Townsville laboratory. Ag assaying is
completed at the Brisbane laboratory. A sample of 0.5g is
collected and assayed using an aqua regia digest.
3. QA/QC protocols include the use of blanks, duplicates and
standards (commercial certified reference materials used).
The frequency rate for each QA/QC sample type is 5%.
Verification of 1. Logged drillholes are reviewed by the logging geologist and
sampling and a senior geologist. All geological data is logged directly into
Logchief software at the drill rig. The Logchief software is
assaying
installed with Cracow specific logging codes. The data is
systematically transferred to the Datashed database.
Validation of the data is completed within Logchief and
Datashed.
2. Upon receipt of the assay data no adjustments are made to
the assay values.
Location of 1. Drill hole collar locations are surveyed via a qualified surveyor.
data points Collar positions were surveyed using a differential GPS (DGPS).
2. All drillhole locations are referenced in the Klondyke mine co-
ordinate system. The Klondyke mine grid is a transformation
from MGA94 Grid. The Klondyke mine grid was created and
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Criteria Commentary
maintained by onsite registered surveyors.
3. Quality and accuracy of the drill collars are suitable for
exploration results.
4. Downhole surveys taken during drilling are completed by the
drill contractor. Surveys are taken at approximately 20 metres
down hole and at 30 metre intervals thereafter.
Data spacing 1. The drill holes are exploratory in nature and testing a
and conceptual geological target. Drill spacing is completed on
an initial nominal first pass 40m x 40m. Drill spacing will vary
distribution
depending on the results / interpretation obtained from the
initial drill program.
Orientation of 1. All drillholes are designed to intersect the target at a high
data in relation angle to the interpreted structure.
to geological 2. Each drillhole completed has not deviated significantly from
structure the planned drillhole path.
3. Drillhole intersections through the target zones are not biased.
Sample 1. Samples were collected by company personnel and
security delivered to the laboratory via a transport contractor.
Audits or 1. Data is validated when uploading into the companies
reviews Datashed database.
2. No formal audit has been conducted.
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Kenneth Near Mine Exploration Drill Program Table 1 Section 2 - Reporting of Exploration Results

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Criteria Commentary
Mineral 1. The Cracow Operation is located immediately west of the
tenement and Cracow township in central Queensland. The Cracow
Operation Exploration and Mining Tenement package
land tenure
comprises 3 EPMs and 18 MLs covered a combined area of
status approximately 889km [2] .
2. The Cracow Operation Exploration and Mining tenements are
wholly owned by Aeris Resources wholly owned subsidiary,
Lion Mining Pty Ltd.
3. The drill program reported in this announcement at and
immediately north of the Roses Pride deposit is located within
ML3229. ML3229 is in good standing and no known
impediments exist.
Exploration 1. The Cracow Goldfields were discovered in 1932, with the
identification of mineralisation at Dawn then Golden Plateau
done by other
in the eastern portion of the field. From 1932 to 1992, mining of
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Criteria	Commentary
parties	Golden Plateau and associated trends produced approximately 850koz of Au metal. Exploration across the fields and nearby regions was completed by several identities including BP Minerals Australia, Australian Gold Resources Ltd, ACM Operations Pty Ltd, Sedimentary Holdings NL and Zapopan NL. 2. In 1995, Newcrest Mining Ltd (NML) entered into a 70 % share of the Cracow Joint Venture. Initially exploration was targeting porphyry type mineralisation, focusing on the large areas of alteration at Fernyside and Myles Corridor. This focus shifted to epithermal exploration of the western portion of the field, after the discovery of the Vera mineralisation at Pajingo, which shared similarities with Cracow. The Royal epithermal mineralisation was discovered in 1998, with further discoveries of Crown, Sovereign, Empire, Phoenix, Kilkenny and Tipperary made from 1998 up to 2008 3. Evolution was formed from the divestment of Newcrest assets (including Cracow) and the merging of Conquest and Catalpa in 2012. Evolution continued exploration at Cracow from 2012 to early 2020. 4. Aeris Resources purchased the Cracow Operation (including the exploration and mining tenements) in July 2020.
Geology	1. The Cracow project area gold deposits are in the Lower Permian Camboon Andesite on the south-eastern flank of the Bowen Basin. The regional strike is north-northwest and the dip 20° west-southwest. The Camboon Andesite consists of andesitic and basaltic lava, with agglomerate, tuff and some inter-bedded trachytic volcanics. The andesitic lavas are typically porphyritic, with phenocrysts of plagioclase feldspar (oligoclase or andesine) and less commonly augite. To the west, the Camboon Andesite is overlain with an interpreted disconformity by fossiliferous limestone of the Buffel Formation. It is unconformably underlain to the east by the Torsdale Beds, which consist of rhyolitic and dacitic lavas and pyroclastics with inter-bedded trachytic and andesitic volcanics, sandstone, siltstone, and conglomerate. 2. Mineralisation is hosted in steeply dipping low sulphidation epithermal veins. These veins found as discrete and as stockwork and are composed of quartz, carbonate and adularia, with varying percentages of each mineral. Vein textures include banding (colloform, crustiform, cockade, moss), breccia channels and massive quartz, and indicate depth within the epithermal system. Sulphide percentage in the veins are generally low (<3%) primarily composed of pyrite, with minor occurrences of hessite, sphalerite and galena. Rare chalcopyrite, arsenopyrite and bornite can also be found. 3. Alteration of the countryrock can be extensive and zone

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Criteria Commentary
from the central veined structure. This alteration consists of
silicification, phyllic alteration (silica, sericite and other clay
minerals) and argillic alteration in the inner zone, grading
outwards to potassic (adularia) then an outer propylitic zone.
Gold is very fined grained and found predominantly as
electrum but less common within clots of pyrite.
Drillhole 1. All relevant information pertaining to each drillhole has been
information provided.
Data 1. Reported significant intervals are based on a minimum width
aggregation of 1.0m, minimum Au grade 1g/t Au, maximum of 2m of
below cut-off material (<1g/t Au).
methods
Relationship 1. Drillholes have been designed to intersect the mineralised
between structure at a high angle.
mineralisation 2. As a generalisation drillhole intersections through the
widths and mineralised structure at an acute angle (~30-60°).
intercept 3. Reported significant intervals are based on a minimum width
lengths of 1.0m, minimum Au grade 1g/t Au, maximum of 2m of
below cut-off material (<1g/t Au).
Diagrams 1. Relevant diagrams are included in the body of the report.
Balanced 1. The reporting is considered balanced and all material
information associated with the drill results has been
reporting
disclosed.
Other 1. There is no other relevant substantive exploration data to
substantive report.
exploration
data
Further work 1. Further drilling is planned targeting the Kenneth exploration
target in the March quarter.
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