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ARROW MINERALS LTD Capital/Financing Update 2023

Aug 6, 2023

64374_rns_2023-08-06_6790d7f8-85fc-4ff5-a1c7-3c842b5629cc.pdf

Capital/Financing Update

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ASX RELEASE | 7[th] August 2023

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RAIDEN ACQUIRES LITHIUM RIGHTS OVER THE ARROW PROJECT IN THE PILBARA

Highlights

  • Raiden enters into agreement with Arrow Minerals Limited (ASX:AMD) to earn-in to 85% position of the Arrow Project (E47/3476 & E47/3478) Lithium-Caesium-Tantalum (Li-Cs-Ta or “LCT”) rights, with option to purchase 100% of those rights

  • Project is located in proven lithium-pegmatite district[1,2,3] with defined lithium bearing pegmatites hosted in adjacent projects

  • Project geology and setting considered highly prospective for LiCs-Ta mineralisation, with historical results confirming presence of lithium bearing pegmatites

  • Arrow Project also considered prospective for Hemi-style (ASX:DEG) gold mineralisation (30km along strike), and Raiden owns 100% of all other mineral rights

ASX CODE: RDN DAX CODE: YM4

BOARD & MANAGEMENT Non-Executive Chairman Mr Michael Davy

Managing Director Mr Dusko Ljubojevic

Non-Executive Director Mr Dale Ginn

Non-Executive Director & Company Secretary Ms Kyla Garic

Chief Operating Officer Mr Warrick Clent

Key Terms of the Transaction[* ]

  • Raiden will have an exclusive option for a staged earn-in to 85% of the Li-Cs-Ta rights over the two Arrow project tenements; or

  • Raiden has the exclusive right to purchase 100% of the Li-CsTa rights within three months, by making a $250k cash payment and issuing $250k in RDN shares to Arrow

ASSET PORTFOLIO

SERBIA

Cu & Au

BULGARIA Cu, Au & Ag

AUSTRALIA Li, Au, Cu, Ni & PGE

Raiden Resources Limited (ASX: RDN) (“Raiden” or “the

Company”) is pleased to announce that it has entered into a transaction for an option to either earn into an 85% position or purchase 100% of the lithium-caesium-tantalum rights on the Arrow Project (E47/3476 and E47/3478).

*Refer to Transaction Terms section of the announcement for detailed description of the transaction

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Figure 1 : Raiden Resource’s Arrow lithium-gold project in relation to adjoining lithium projects and discoveries in the district

Mr Dusko Ljubojevic, Managing Director of Raiden commented: “This transaction significantly expands the Company’s lithium portfolio and potential for discovery in the Pilbara, while at the same time complementing our strategy of existing work programs and plans. The Arrow project is considered highly prospective for Hemi style gold mineralisation, which the Company is evaluating. This transaction will allow us to evaluate the lithium potential of the

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project in tandem with the gold exploration program and provide our shareholders with further exposure to lithium, as well as, to gold potential.”

Arrow Project and Lithium Potential

The 100% owned Arrow project (E47/3476 and E47/3478) totals 223km[2] . The Company owns 100% of the two tenements, but the Li-Cs-Ta rights are currently owned by Arrow Minerals Limited (ASX:AMD), the subject of this transaction. Historic exploration in the area has identified fertile and fractionated granitic intrusions, which could produce mineralised Li-CsTa bearing (LCT) pegmatites. The rock chipping and field observations confirmed that the Satirist Granite was a potential source rock for LCT bearing pegmatites.

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Figure 2: Overview of recent lithium drill intercepts in adjoining projects and historical sampling on the Arrow project area[1,2] – lithology over open file 40m RTP TMI 1VD Magnetics

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The project lies within the folded and faulted siliciclastics, volcaniclastics and mafic sills of the Mallina Basin, which is part of the De Grey Supergroup (3010 to 2930 Ma). The Satirist Granite (2935 Ma) intrudes the southern portion of the project area and is considered to be the source of the lithium mineralisation in the district.

Transaction Terms

Under the terms of the Agreement, Raiden will have the exclusive right to earn up to an 85% interest in the Granted Li-Cs-Ta Rights (with an option to acquire the remaining 15% to attain a 100% interest in the Li-Cs-Ta rights), and potentially form a joint venture, by fulfilment of certain milestone and expenditure obligations in relation to exploring for Minerals within the Tenements on the terms set out in this Agreement.

Raiden will also have the exclusive option to acquire an immediate 100% interest in the LiCs-Ta rights (Upfront Option) during the upfront option Period, subject to the satisfaction of the Upfront Option Conditions. The key terms of the agreement are;

  • Within five (5) business days of the date the last party executes the Agreement (Execution Date), Raiden will make a cash payment of $50,000 in immediately available funds to a bank account nominated by Arrow (or its nominee/s).

Upfront Option

If Raiden elects to exercise the Upfront Option within 3 months from execution of the agreement, Raiden (or its nominee) will have the option to acquire 100% of the rights by;

  • Making a cash payment of $250,000 to Arrow Minerals and

  • Subject to shareholder approval, issue that number of fully paid ordinary shares in the capital of Raiden (Shares) equal to the value of $250,000 divided by a deemed issue price equal to a twenty (20) day volume weighted average price (VWAP) of the Shares as traded on the ASX prior to the date that the Election Notice is given,

If Raiden elects to exercise the Upfront Option, it will acquire 100% of the Li-Cs-Ta rights. Arrow Minerals will retain a 1% Net Smelter Royalty (“NSR”), over the Li-Cs-Ta minerals, with Raiden retaining the first right of refusal if Arrow Minerals wishes to sell the NSR.

Earn-in Option

If Raiden does not elect to exercise the Upfront Option, it will have right to earn into an 85% position in the Li-Cs-Ta rights over the project by:

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  • Initial Option Period: Incurring $1m on exploration expenditure within 3 years from execution of the agreement for a 51% interest

  • Second Option Period: Spend $2m on exploration activities over a further 3-year period and make a $150,000 cash, or at Raiden’s election a share payment to Arrow Minerals for a 75% interest (with a deemed issue price equal to a twenty (20) day VWAP of the Shares as traded on the ASX prior to the date that the Second Option is validly exercised)

  • Third Option Period: At any time during the two (2) year period commencing on the date the Third Earn-in Election is provided, Raiden (or its nominee) may exercise the Third Option and earn into an 85% interest, subject to the satisfaction of the following;

  • Paying Arrow (or its nominee/s) $550,000 in cash or, at Raiden’s sole election, procuring the issue to Arrow of the equivalent value in Shares (with a deemed issue price equal to a twenty (20) day VWAP of the Shares as traded on the ASX prior to the date that the Second Option is validly exercised)

  • incurring further exploration Expenditure on the Tenements (following the exercise of the Second Option) of the lesser of the amount required to complete a preliminary feasibility study in relation to any of the Minerals within the Tenements and $5,000,000

  • announcing to the ASX a preliminary feasibility study in relation to any of the Minerals within the Tenements

On formation of the incorporated Joint Venture, if at any time Arrow Minerals wishes to withdraw from the joint venture, Raiden will have the standard right of first refusal over Arrow Mineral’s interest.

This ASX announcement has been authorised for release by the Board of Raiden Resources Limited.

FOR FURTHER INFORMATION PLEASE CONTACT

DUSKO LJUBOJEVIC

Managing Director

RAIDEN RESOURCES LIMITED

[email protected]

www.raidenresources.com.au

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ASX Announcements referenced to directly in this release

1ASX:1MC 07 December 2022 Drilling Confirms High-grade Lithium Mineralisation at Mallina

2ASX:1MC 25 May 2023 Mallina Drilling Intercepts 23 Metres of Pegmatite, Hosting Visual Spodumene

3ASX:1MC 06 July 2023 Mallina Drilling Increases Strike and Identifies New Zones of Mineralised Spodumene

Competent Person's Statement and Previously Reported Information

The information in this announcement that relates to exploration results is based on and fairly represents information and supporting documentation, and has been reviewed and approved by Mr Warrick Clent, a competent person who is a member of the Australasian Institute of Mining and Metallurgy (AusIMM). Mr Warrick Clent is employed by Raiden Resources Limited. Mr Warrick Clent has sufficient experience that is relevant to the style of mineralisation and type of deposits under consideration and to the activity being undertaken to qualify as a Competent Person as defined in the 2012 edition of the JORC Code. Mr Warrick Clent has provided his prior written consent as to the form and context in which the exploration results and the supporting information are presented in this announcement.

Disclaimer:

Forward-looking statements are statements that are not historical facts. Words such as “expect(s)”, “feel(s)”, “believe(s)”, “will”, “may”, “anticipate(s)”, “potential(s)”and similar expressions are intended to identify forwardlooking statements. These statements include, but are not limited to statements regarding future production, resources or reserves and exploration results. All of such statements are subject to certain risks and uncertainties, many of which are difficult to predict and generally beyond the control of the Company, that could cause actual results to differ materially from those expressed in, or implied or projected by, the forwardlooking information and statements. These risks and uncertainties include, but are not limited to: (i) those relating to the interpretation of drill results, the geology, grade and continuity of mineral deposits and conclusions of economic evaluations, (ii) risks relating to possible variations in reserves, grade, planned mining dilution and ore loss, or recovery rates and changes in project parameters as plans continue to be refined, (iii) the potential for delays in exploration or development activities or the completion of feasibility studies, (iv) risks related to commodity price and foreign exchange rate fluctuations, (v) risks related to failure to obtain adequate financing on a timely basis and on acceptable terms or delays in obtaining governmental approvals or in the completion of development or construction activities, and (vi) other risks and uncertainties related to the Company’s prospects, properties and business strategy. Investors are cautioned not to place undue reliance on these forward-looking statements that speak only as of the date hereof, and the Company does not undertake any obligation to revise and disseminate forward-looking statements to reflect events or circumstances after the date hereof, or to reflect the occurrence of or non-occurrence of any events.

About Raiden Resources

Raiden Resources Limited . (ASX:RDN / DAX:YM4) is a dual listed base metal—gold exploration Company focused on the Mt Sholl nickel-copper-cobalt- PGE project in the Pilbara region of Western Australia project. In addition, the company holds other highly prospective gold projects within the Pilbara region, as well as the emerging and prolific Western Tethyan metallogenic belt in Eastern Europe, where it has established a significant exploration footprint in Serbia and Bulgaria.

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The Directors believe the Company is well positioned to unlock value from this exploration portfolio and deliver a significant mineral discovery.

Appendix 1: Pacton Pilbara Pty Ltd 2018 rock chips sample results (Li2O >0.09%)

Sample ID Easting Northing Li Li2O Be Cs Nb Ta
GDA 94_Z50 GDA 94_Z50 ppm % ppm ppm ppm ppm
pos9 609847 7667229 1450 0.31 68.0 43.3 2.4 0.89
pos31 612803 7666656 419 0.09 3.8 5.8 < 0.5 < 0.01
pos33g 609798 7667176 884 0.19 6.7 39.4 2.1 1.40

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JORC Code, 2012 Edition. Table 1

Section 1 Sampling Techniques and Data

(Criteria in this section apply to all succeeding sections)

Criteria JORC Code explanation JORC Code explanation Commentary Commentary
Sampling
techniques
Nature and quality of sampling (eg cut channels, random chips, or specific
specialised industry standard measurement tools appropriate to the minerals
under investigation, such as down hole gamma sondes, or handheld XRF
instruments, etc). These examples should not be taken as limiting the broad
meaning of sampling.
Include reference to measures taken to ensure sample representivity and the
appropriate calibration of any measurement tools or systems used.
Aspects of the determination of mineralisation that are Material to the Public
Report.
In cases where ‘industry standard’ work has been done this would be relatively
simple (eg ‘reverse circulation drilling was used to obtain 1 m samples from
which 3 kg was pulverised to produce a 30 g charge for fire assay’). In other
cases more explanation may be required, such as where there is coarse gold
that has inherent sampling problems. Unusual commodities or mineralisation
types (eg submarine nodules) may warrant disclosure of detailed information.
• In relation to this announcement no sampling
by Raiden has been conducted as yet and no
assays are being reported.
• Historical rock chip sampling, as tabulated in
this
announcement,
was
conducted
by
professional prospectors on behalf of Pacton
Pilbara Pty Ltd during 2018, with all data
obtained from DMIRS WAMEX reports.
Drilling
techniques
Drill type (eg core, reverse circulation, open-hole hammer, rotary air blast,
auger, Bangka, sonic, etc) and details (eg core diameter, triple or standard
tube, depth of diamond tails, face-sampling bit or other type, whether core is
oriented and if so, by what method, etc).
• In relation to this announcement no drilling by
Raiden has been conducted as yet and no
assays are being reported
Drill sample
recovery
Method of recording and assessing core and chip sample recoveries and
results assessed.
Measures taken to maximise sample recovery and ensure representative nature
of the samples.
Whether a relationship exists between sample recovery and grade and whether
sample bias may have occurred due topreferential loss/gain of fine/coarse
• In relation to this announcement no drill
sampling by Raiden has been conducted as yet
and no assays are being reported
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Criteria JORC Code explanation Commentary Commentary Commentary
material.
Logging Whether core and chip samples have been geologically and geotechnically
logged to a level of detail to support appropriate Mineral Resource estimation,
mining studies and metallurgical studies.
Whether logging is qualitative or quantitative in nature. Core (or costean,
channel, etc) photography.
The total length and percentage of the relevant intersections logged.
• In relation to this announcement no drilling by
Raiden has been conducted as yet.
Sub-
sampling
techniques
and sample
preparation
If core, whether cut or sawn and whether quarter, half or all core taken.
If non-core, whether riffled, tube sampled, rotary split, etc and whether
sampled wet or dry.
For all sample types, the nature, quality and appropriateness of the sample
preparation technique.
Quality control procedures adopted for all sub-sampling stages to maximise
representivity of samples.
Measures taken to ensure that the sampling is representative of the in situ
material collected, including for instance results for field duplicate/second-half
sampling.
Whether sample sizes are appropriate to the grain size of the material being
sampled.
• Labwest (Mineral Analysis) have followed
standard procedures for sample preparation to
produce sub-samples for analysis on historical
rock chip samples as sighted by the CP in
WAMEX reports.
Quality of
assay data
and
laboratory
tests
The nature, quality and appropriateness of the assaying and laboratory
procedures used and whether the technique is considered partial or total.
For geophysical tools, spectrometers, handheld XRF instruments, etc, the
parameters used in determining the analysis including instrument make and
model, reading times, calibrations factors applied and their derivation, etc.
Nature of quality control procedures adopted (eg standards, blanks, duplicates,
external laboratory checks) and whether acceptable levels of accuracy (ie lack
of bias) and precision have been established.
• Laboratory procedures and assaying are
considered appropriate by the CP for the type
of sample.
• Laboratory quality control procedures are not
available for the samples.
Verification
of sampling
The verification of significant intersections by either independent or alternative
company personnel.
The use of twinned holes.
• Because the data is historical, the methods of
data documentation, verification and storage
are not known.
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Criteria JORC Code explanation Commentary
and
assaying
Documentation of primary data, data entry procedures, data verification, data
storage (physical and electronic) protocols.
Discuss any adjustment to assay data.
• As far as the CP is aware, no adjustments
have been made to assay data as sighted in
WAMEX reports.
Location of
data points
Accuracy and quality of surveys used to locate drill holes (collar and down-
hole surveys), trenches, mine workings and other locations used in Mineral
Resource estimation.
Specification of the grid system used.
Quality and adequacy of topographic control.
• Co-ordinates are provided in the Geocentric
Datum of Australia (GDA94) Zone 50.
Data
spacing and
distribution
Data spacing for reporting of Exploration Results.
Whether the data spacing and distribution is sufficient to establish the degree
of geological and grade continuity appropriate for the Mineral Resource and
Ore Reserve estimation procedure(s) and classifications applied.
Whether sample compositing has been applied.
• Not applicable
Orientation
of data in
relation to
geological
structure
Whether the orientation of sampling achieves unbiased sampling of possible
structures and the extent to which this is known, considering the deposit type.
If the relationship between the drilling orientation and the orientation of key
mineralised structures is considered to have introduced a sampling bias, this
should be assessed and reported if material.
• Not applicable
Sample
security
The measures taken to ensure sample security. • Sample security measures are not known for
the historical rock chip samples.
Audits or
reviews
The results of any audits or reviews of sampling techniques and data. • Review of the assay data

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Section 2 Reporting of Exploration Results

Criteria JORC Code explanation Commentary
Mineral tenement
and land tenure
status
Type, reference name/number, location and
ownership including agreements or material
issues with third parties such as joint ventures,
partnerships, overriding royalties, native title
interests, historical sites, wilderness or national
park and environmental settings.
The security of the tenure held at the time of
reporting along with any known impediments to
obtaining a licence to operate in the area.
• Raiden Resources Ltd tenements are located in the City of
Karratha and the Town of Port Hedland, within the Pilbara region
of Western Australia.
• The tenements are held by Raiden Resources Ltd 100%.
• The Arrow Project has two granted Exploration Licenses 47/3476
and 47/3478.
• Tenements are located on the Mallina pastoral lease, and the
Yandeyerra Aboriginal Reserve.
• Raiden is currently contesting an Application for Forfeiture action
on E47/3478 but is not aware of any existing impediments nor of
any potential impediments which may impact ongoing exploration
and development activities on E47/3476.
Exploration done by
other parties
Acknowledgment and appraisal of exploration by
other parties.
• A search and compilation of historic exploration has been
completed.
• Work included stream sediment, soil and rock sampling,
geological mapping, and geophysical surveys.
Geology Deposit type, geological setting and style of
mineralisation.
• Potential for lithium-caesium-tantalum bearing pegmatite
mineralisation.
• Raiden’s Arrow licences cover Mesoarchean Mallina Basin rocks
and later intrusions. The ~3 Ga Mallina Basin is more than 200
km long and up to 90 km wide elongate NE-SW. Several suites of
layered mafic-ultramafic rocks intruded basinal sequences. In the
Egina area, sills form part of the Millindinna intrusion, described
as a thin (<200 m) but regionally extensive differentiated sill that
ranges from lherzolite togabbro. Granitic intrusions comprise

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Criteria JORC Code explanation Commentary
~2.95 Ga alkaline granite and high Mg diorite plus 2.94-2.93 Ga
monzogranite. In the Egina area, the Peawah Granodiorite is part
of the high Mg diorite suite and the Satirist Granite is one of the
later monzogranites.
• The area is located 32 kilometres from De Grey Mining's Hemi
Au discovery and the local geological setting has all the elements
necessary to suggest potential for a similar style of mineralisation:
o Folded Mallina Basin sequences.
o Proximal to the angular unconformity separating the Mallina
Basin from older greenstone rocks.
o Cut by the NE-SW striking Wohler Shear, a splay off the E-
W striking Mallina Shear.
• Numerous small volume intrusions affiliated with the Peawah
Granodiorite and the younger Satirist Granite.
• It is further interpretated that the source of mineralising fluids for
the lithium pegmatites are sourced from the nearby felsic intrusive
Satirist Granite.
Drill hole
Information
A summary of all information material to the
understanding of the exploration results including
a tabulation of the following information for all
Material drill holes:
o easting and northing of the drill hole collar
o elevation or RL (Reduced Level – elevation
above sea level in metres) of the drill hole
collar
o dip and azimuth of the hole
o down hole length and interception depth
o hole length.
If the exclusion of this information is justified on
the basis that the information is not Material and
this exclusion does not detractfrom the
• Not applicable

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Criteria JORC Code explanation Commentary
understanding of the report, the Competent
Person should clearly explain why this is the case.
Data aggregation
methods
In reporting Exploration Results, weighting
averaging techniques, maximum and/or minimum
grade truncations (eg cutting of high grades) and
cut-off grades are usually Material and should be
stated.
Where aggregate intercepts incorporate short
lengths of high grade results and longer lengths of
low grade results, the procedure used for such
aggregation should be stated and some typical
examples of such aggregations should be shown in
detail.
The assumptions used for any reporting of metal
equivalent values should be clearly stated.
• Not applicable
Relationship
between
mineralisation
widths and intercept
lengths
These relationships are particularly important in
the reporting of Exploration Results.
If the geometry of the mineralisation with respect
to the drill hole angle is known, its nature should
be reported.
If it is not known and only the down hole lengths
are reported, there should be a clear statement to
this effect (eg ‘down hole length, true width not
known’).
• Not applicable
Diagrams Appropriate maps and sections (with scales) and
tabulations of intercepts should be included for
any significant discovery being reported These
should include, but not be limited to a plan view of
drill hole collar locations and appropriate
• Maps are included in the body of the announcement.

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Criteria JORC Code explanation Commentary
sectional views.
Balanced reporting Where comprehensive reporting of all Exploration
Results is not practicable, representative
reporting of both low and high grades and/or
widths should be practiced to avoid misleading
reporting of Exploration Results.
• All historic results are reported as they have been released to
DMIRS by the previous explorers as part of their reporting
requirements.
• In relation to this announcement no sampling has been conducted
as yet by Raiden and no assays are being reported
Other substantive
exploration data
Other exploration data, if meaningful and
material, should be reported including (but not
limited to): geological observations; geophysical
survey results; geochemical survey results; bulk
samples – size and method of treatment;
metallurgical test results; bulk density,
groundwater, geotechnical and rock
characteristics; potential deleterious or
contaminating substances.
• The underlying aeromagnetic data included in the image for this
announcement was sourced from open file GSWA data available
through the MAGIX system at:
https://geodownloads.dmp.wa.gov.au/downloads/geophysics/7220
4/WA_Magnetics_40m/
Further work The nature and scale of planned further work (eg
tests for lateral extensions or depth extensions or
large-scale step-out drilling).
Diagrams clearly highlighting the areas of
possible extensions, including the main geological
interpretations and future drilling areas, provided
this information is not commercially sensitive.
• Raiden are currently planning a field reconnaissance program to
further assess the potential for lithium-bearing pegmatites over its
Arrow Project.

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