APOLLO MINERALS LIMITED — Capital/Financing Update 2021

Apr 8, 2021

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ASX RELEASE | 9 April 2021 | ASX: AON

$3.25 million placement to fund Kroussou Project exploration

Apollo Minerals Limited ( Apollo Minerals or Company ) is pleased to announce the Company has secured firm commitments from sophisticated investors in Australia, United Kingdom, Portugal and the United States to subscribe for 50 million new ordinary shares in the Company, raising gross proceeds of $3.25 million.

The placement proceeds will be used to expedite exploration programs at the Kroussou Project (Kroussou Project or Project ) in Gabon. Drilling has recently commenced at the Project with results expected from the Phase 1 campaign in the coming months.

The majority of commitments have come from existing shareholders and current and former Directors of the Company. Messrs Inwood, Behets, Welborn, Schumann, and Pearce will all participate in the placement, subject to the necessary approvals.

The issue price of $0.065 represents an 18% discount to the last closing price of $0.08, and a 5% discount to the 20-day VWAP.

Apollo Mineral’s Executive Director, Mr Neil Inwood, was delighted with the strong support received for the placement: “These funds will support the broader scale drilling and surface exploration programs we have planned at the Kroussou Project during 2021. We are very excited to have commenced drilling and look forward to testing the many identified targets at the Project. The significant support received from existing investors and directors highlights the opportunity for value creation as we systematically explore a large scale, near surface zinc-lead project which has more than 80km of prospective strike and multiple opportunities for significant discovery.”

Capital Raising

The Company will place up to 50 million ordinary shares at $0.065 each to sophisticated investors, to raise $3.25 million before costs.

The placement will be completed in two tranches as follows:

• (a) Tranche 1 Placement Shares : 45,150,000 new ordinary shares at $0.065 each to raise approximately $2.95 million under the Company’s capacity under Listing Rule 7.1. The Company is in discussions to incur a fee of up to 4% on a small amount of the shares placed in Tranche 1; and

• (b) Tranche 2 Placement Shares: 4,850,000 new ordinary shares at $0.065 each to raise approximately $0.3 million. Tranche 2 is being issued to current and former directors and is subject to shareholder approval at a general meeting of Shareholders to be held in May 2021.

The Company expects to complete Tranche 1 of the placement on or about 16 April 2021. A Notice of General Meeting in respect of Tranche 2 will be issued in the coming days.

For further information contact:

Neil Inwood, Executive Director Tel: +61 8 9322 6322 Email: info@apollominerals.com.au

Apollo Minerals Limited | ASX code: AON | ABN: 96 125 222 924 | www.apollominerals.com PERTH Level 9, 28 The Esplanade Perth, WA 6000 | T: +61 8 9322 6322 | F: +61 8 9322 6558

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KROUSSOU PROJECT OVERVIEW

The Kroussou Project consists of the Prospecting License G4-569 which covers 986.5km[2] in the Ngounié Province of Western Gabon located approximately 220km southeast of the capital city of Libreville (Figure 1). The project is easily accessible by the major sealed N1 road from Libreville, and well-maintained provincial roads to towns bordering the Project; and then wellestablished wide forestry tracks to site.

A drilling campaign has recently commenced at the Project with Phase 1 consisting of 1,000m of diamond drilling targeting shallow, high grade zinc-lead ( Zn-Pb ) mineralisation at the Dikaki and Bouambo Prospects (Figure 1). Zn-Pb mineralisation at the Project is hosted in Cretaceous sediments on the margin of the Cotier Basin within preserved channels lying on unconformable Archaean and Paleoproterozoic basement rocks (Figure 2).

Historical exploration work at the Kroussou Project identified 150 base metal occurrences along 80km of strike length of prospective geology within the project area. The zinc-lead mineral occurrences are hosted within exposed channels that offer very shallow, near surface targets close to the basement rocks.

Two of the 18 exposed channels were drill tested in historical work conducted by the French public geological survey group, the Bureau de Recherches Géologiques et Minières ( BRGM ). Both of the channels drill tested by the BRGM were found to contain significant base metal mineralisation.

A further two near surface targets were drilled Trek Metals Limited ( Trek ). This drilling also returned significant Zn-Pb intervals, further validating the province scale, base metal potential of the project area.

The current drill program underway at the Project is designed to have multiple phases to enable the broad scale exploration program required to confirm the scale of Zn-Pb mineralisation and to define shallow, open pit mineralisation over the abundant prospect areas.

Multiple opportunities for significant discoveries of base metal mineralisation exist across the 14 untested channels. Strong and ongoing news flow is expected from the Company’s planned 2021 work program with drilling results expected to confirm the Project’s scale and quality.

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Figure 1 – Kroussou Project Location Plan

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Figure 2 – Kroussou Project Showing Key Prospects and Focus areas for the Phase 1 Drilling (red circle)

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Not for release in the United States

This announcement has been prepared for publication in Australia and may not be released in the United States. This announcement does not constitute an offer to sell, or a solicitation of an offer to buy, securities in the United States or any other jurisdiction. Any securities described in this announcement have not been, and will not be, registered under the US Securities Act of 1933 and may not be offered or sold in the United States except in transactions exempt from, or not subject to, the registration of the US Securities Act and applicable US state securities laws.

Forward Looking Statement

This release may include forward-looking statements, which may be identified by words such as "expects", "anticipates", "believes", "projects", "plans", and similar expressions. These forward-looking statements are based on Sovereign’s expectations and beliefs concerning future events. Forward looking statements are necessarily subject to risks, uncertainties and other factors, many of which are outside the control of Sovereign, which could cause actual results to differ materially from such statements. There can be no assurance that forwardlooking statements will prove to be correct. Sovereign makes no undertaking to subsequently update or revise the forward-looking statements made in this release, to reflect the circumstances or events after the date of that release.

Competent Persons Statement

The information in this announcement that relates to historical metallurgical and Exploration Results are extracted from the Company’s ASX announcements dated 3 September 2019, 15 January 2021, and 29 January 2021. These announcements are available to view on the Company’s website at www.apollominerals.com. The Company confirms that: a) it is not aware of any new information or data that materially affects the information included in the original ASX announcements; b) all material assumptions and technical parameters underpinning the content in the relevant ASX announcements continues to apply and have not materially changed; and c) the form and context in which the relevant Competent Person’s findings are presented have not been materially modified from the original ASX announcements.

This announcement has been authorised for release by the Board of Directors.

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