ARUMA RESOURCES LIMITED — Capital/Financing Update 2020

Nov 10, 2020

==> picture [157 x 66] intentionally omitted <==

11 November 2020

ASX: AAJ

UPDATE ON SALTWATER GOLD PROJECT DRILLING PLANS

DRILLING TO COMMENCE THIS MONTH

Capital Structure

1,589M Shares on Issue 330M Options on issue CASH $3.7M

Highlights

Board of Directors

• PoW for drilling approved and site access complete at Saltwater

• First phase of drilling contracted to commence late November

• Mark Styles appointed Exploration Manager

• Sale of Slate Dam-Trojan Project completed - $500,000 received

• $162,000 R&D Tax Refund received

Aruma Resources Limited (ASX: AAJ) (Aruma or the Company) is pleased to provide the following update on its plans for the first phase of drilling at the Saltwater Gold Project.

The Saltwater Gold Project consists of the eight granted Exploration Licences for a total area of 701km[2] . The Project is located approximately 100 kilometres south-west of the regional mining centre of Newman.

The Project area covers a strike extent of more than 65km of the highly significant Nanjilgardy fault (Figure 1), the same regional structure reported as the primary source of gold mineralisation at Northern Star Resources’ (ASX: NST) Paulsens Gold Mine and the Mt Olympus Gold Mine in the region.

Non-Executive Chairman Paul Boyatzis Managing Director Peter Schwann

Non-Executive Director Mark Elliott

Company Secretary Phillip MacLeod

Gold Projects -1,572km[2] Norseman

SCOTIA SOUTH - 217km[2]

Pilbara

MELROSE - 282km[2] SALTWATER - 701km[2]

NSW Lachlan Fold Belt CAPITAL - 372km[2]

Aruma advises that its drilling contractor Ausdrill expects to commence the maiden, 5,000 metre reverse circulation (RC), drilling program at the Saltwater Project in the last week of November.

Drilling is anticipated to take approximately 25 days to complete, and results are expected in late January 2021.

Head Office

Level 1, 6 Thelma Street West Perth, WA 6005 T +61 8 9321 0177 F +61 8 9226 3764

E info@arumaresources.com W www.arumaresources.com

As previously announced (ASX announcements, 27 October, 20 October and 23 September 2020), a reconnaissance mapping program, rock chip and soil sampling program has been completed targeting outcropping areas on the western end of a large 60km[2] magnetic ring structure - the Saltwater Ring Structure (Figure 2).

Postal Address

PO Box 152 West Perth, WA 6872

ABN 77 141 335 364

==> picture [71 x 61] intentionally omitted <==

Aruma Resources Limited is a proud supporter and member of the Association of Mining and Exploration Companies, 2020.

==> picture [158 x 67] intentionally omitted <==

==> picture [356 x 219] intentionally omitted <==

Figure 1: Nanjilgardy Fault (yellow) at Black Hill within the Saltwater Project

This initial exploration program defined the area for initial drilling by identifying quartz veins, anomalous rock and soils with alteration and mineralisation identified in work by previous explorers to quickly identify drilling areas and targets (Figure 3).

==> picture [364 x 277] intentionally omitted <==

Figure 2: Saltwater exposed area for exploration south of access road

==> picture [71 x 61] intentionally omitted <==

Aruma Resources Limited is a proud supporter and member of the Association of Mining and Exploration Companies, 2020.

==> picture [158 x 67] intentionally omitted <==

==> picture [366 x 275] intentionally omitted <==

Figure 3: Saltwater gossan - alteration by pyrite and carbonate associated with gold

==> picture [366 x 275] intentionally omitted <==

Figure 4: Saltwater quartz veins and carbonate alteration associated with gold

==> picture [71 x 61] intentionally omitted <==

Aruma Resources Limited is a proud supporter and member of the Association of Mining and Exploration Companies, 2020.

==> picture [158 x 67] intentionally omitted <==

Working Heritage Agreements with the JJAC for the Saltwater Project have been agreed, which has allowed the Heritage Survey to clear the area for the first drilling program.

Aruma subsequently received program of works (PoW) approval for up to 20,000 metres of drilling at Saltwater, and drill site and access preparation has been completed for the first phase of drilling at the Project.

The area targeted in the initial RC drilling program is outlined in red in Figure 5 below and is detailed in Figure 6. The closer spaced lines in Figure 5 are concentrating on the anomalous areas whilst the regional lines to the east are targeting the ring structure under cover.

==> picture [452 x 271] intentionally omitted <==

Figure 5: Aruma's Saltwater Project area on 500K geology showing Faults and anomalies.

==> picture [71 x 61] intentionally omitted <==

Aruma Resources Limited is a proud supporter and member of the Association of Mining and Exploration Companies, 2020.

==> picture [158 x 67] intentionally omitted <==

==> picture [429 x 302] intentionally omitted <==

Figure 6 : Location of drilling lines (T1 to T7) on magnetic image for maiden drill program at Saltwater Project.

EXPLORATION MANAGER APPOINTED

Aruma is pleased to advise of the appointment of Mr Mark Styles as Exploration Manager, effective 16th November 2020.

Mr Styles graduated from the University of Western Australia with First Class Honours in Geology and has nearly 30 years' experience in the mining and exploration industry. His is a key appointment for Aruma and he will be a valuable member of the acquisition and evaluation team.

Mr Styles is well qualified to advance the Company's portfolio of prospective gold exploration projects.

He has worked in the Yilgarn and Pilbara regions in Western Australia, Canada, Saudi Arabia and Tanzania. In addition, he has been involved in exploration and development of epithermal, porphyry, VMS, nickel sulphide and iron ore deposits.

Aruma’s board and management welcome Mr Styles to the Company and look forward to his positive contribution moving forward.

==> picture [71 x 61] intentionally omitted <==

Aruma Resources Limited is a proud supporter and member of the Association of Mining and Exploration Companies, 2020.

==> picture [158 x 67] intentionally omitted <==

CORPORATE

Aruma is also pleased to provide an update on its cash position. As of 10 November 2020, the Company had a cash balance of approximately $3.7 million, which includes an R&D tax refund on $162,000 before costs and $450,000, being the second tranche of payment from Black Cat Syndicate (ASX: BC8) for the sale of the Slate Dam Project to BC8.

Details of the Sale and Purchase Agreement with BC8 are provided in ASX announcement of 7 October 2020.

PROJECTS SUMMARY

Region	Location	Project	Status
WA EASTERN GOLDFIELDS	Norseman Projects	Mt Deans Lithium	JV withdrawn
		South Scotiagold	awaiting grant
WA PILBARA	Nanjilgardy Nanjilgardy	Melrose Gold	awaiting grant
		Saltwater Gold	Granted and drillingin November
NSW LACHLAN FOLD BELT	St George Fault	Capital Gold	awaiting access recommended forgrant

Table 1: Gold Project Status and Activity Table

Authorised for release by Peter Schwann, Managing Director.

For further information please contact:

Peter Schwann James Moses Managing Director Media and Investor Relations Aruma Resources Limited Mandate Corporate Mobile: +61 417 946 370 Mobile: +61 420 991 574 E: info@arumaresources.com El: james@mandatecorporate.com.au

Competent Person’s Statement

The information in this release that relates to Exploration Results, Mineral Resources or Ore Reserves is based on information compiled by Peter Schwann who is a Fellow of the AIG and Australasian Institute of Mining and Metallurgy. Mr Schwann is Managing Director and a full time employee of the Company. Mr Schwann 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 Reserve’. Mr Schwann consents to the inclusion in the release of the matters based on his information in the form and context in which it appears. All exploration results reported have previously been released to ASX and are available to be viewed on the Company website www.arumaresurces.com.au . The Company confirms it is not aware of any new information that materially affects the information included in the original announcement. The Company confirms that the form and context in which the Competent Person’s findings are presented have not been materially modified from the original announcements.

==> picture [71 x 61] intentionally omitted <==

Aruma Resources Limited is a proud supporter and member of the Association of Mining and Exploration Companies, 2020.

==> picture [158 x 67] intentionally omitted <==

Forward Looking Statement

Certain statements contained in this document constitute forward looking statements. Such forward-looking statements are based on a number of estimates and assumptions made by the Company and its consultants in light of experience, current conditions and expectations of future developments which the Company believes are appropriate in the current circumstances. These estimates and assumptions while considered reasonable by the Company are subject to known and unknown risks, uncertainties and other factors which may cause the actual results, achievements and performance of the Company to be materially different from the future results and achievements expressed or implied by such forward-looking statements. Forward looking statements include, but are not limited to, statements preceded by words such as “planned”, “expected”, “projected”, “estimated”, “may”, “scheduled”, “intends”, “anticipates”, “believes”, “potential”, “could”, “nominal”, “conceptual” and similar expressions. There can be no assurance that Aruma plans to develop exploration projects that will proceed with the current expectations. There can be no assurance that Aruma will be able to conform the presence of Mineral Resources or Ore Reserves, that any mineralisation will prove to be economic and will be successfully developed on any of Aruma’s mineral properties. Investors are cautioned that forward looking information is no guarantee of future performance and accordingly, investors are cautioned not to place undue reliance on these forward-looking statements.

==> picture [71 x 61] intentionally omitted <==

Aruma Resources Limited is a proud supporter and member of the Association of Mining and Exploration Companies, 2020.