AUKING MINING LIMITED — Capital/Financing Update 2022

Dec 19, 2022

ASX ANNOUNCEMENT

20 December 2022

Cazaly Signs MoU with AuKing Halls Creek Project to be included in Preliminary Mine Scoping Study

Highlights:

• AuKing to commence a scoping study for the development of a consolidated base metal mining hub

• Cazaly’s Bommie Porphyry Copper and Mount Angelo Copper-Zinc deposits to be included in the scoping study

• The collective substantial deposits are located within a 15km radius

Cazaly Resources Limited (ASX: CAZ, “Cazaly” or “the Company”) is pleased to announce the signing of a Memorandum of Understanding (MoU) with AuKing Mining Limited (ASX: “AKN” or “AuKing”) to include the Company’s Halls Creek Copper deposits in a mine scoping study to be conducted by AuKing. The study will determine the potential viability of open pit and underground operations centred around AuKing’s Sandiego Cu-Zn-Ag deposit.

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Figure 1. Location of Cazaly’s deposits relative to AuKing’s Sandiego copper deposit.

admin@cazalyresources.com.au | Ph: +61 8 93226283 | www.cazalyresources.com.au ASX: CAZ Level 3, 30 Richardson Street West Perth WA 6005 | PO BOX 396 West Perth WA 6872

Cazaly and AuKing recognise that there could be significant benefit in combining their resources in the scoping study and potential future development of a central mining hub at Sandiego with multiple feed options from the surrounding deposits.

Under the terms of the MoU both parties agree to cooperatively collaborate via a mutual exchange of information to support the scoping study under the terms of a standard non-disclosure agreement. There are no other provisions in the MoU binding either party to undertake further dealings, however upon completion of the scoping study both parties may choose to progress further studies and/or enter into further discussions.

Wave International has been engaged by AuKing to conduct the scoping study with a focus on developing an initial mine plan, processing, and product specification to identify project economics and options to progress to a pre-feasibility study. The study will be fully funded by AKN with findings expected to be reported in late FYQ3 or early FYQ4.

The Sandiego deposit is part of AuKing’s Koongie Park project at Halls Creek where they currently hold an 80% interest through a joint venture with Astral Resources NL (ASX:AAR) and have the right to acquire the final 20% interest under the terms of the Koongie Park Joint Venture Agreement (ASX:AKN Announcement dated 5 April 2022). AuKing’s total Mineral Resource Estimates at Koongie Park stand at 21.1 million tonnes (Mt) after a further 12.2Mt at the Emull deposit were added to the company’s existing 8.9Mt resources at the Sandiego and Onedin deposits to the east. Total metal content now comprises 121,800 tonnes of copper; 372,600 tonnes of zinc; 46,000 ounces of gold; 11 million ounces of silver and 79,300 tonnes of lead. (ASX:AKN Announcement dated 1 December 2022).

Cazaly’s Halls Creek Copper Project is situated 25km southwest of Halls Creek and covers part of the Halls Creek Mobile Zone which is highly prospective for a range of commodities including copper, gold, and nickel. The project includes the Mount Angelo North Copper-Zinc deposit, an extensive zone of near surface oxidised Cu-Zn mineralisation overlying massive Cu-Zn sulphide mineralisation. Mineral Resources are reported in accordance with the JORC Code 2012, the Mount Angelo North mineral resource estimate[1] is reported as 1.72Mt @ 1.4% Cu, 1.4% Zn, 12.3ppm Ag (using 0.4% Cu lower cut) for 23,000 tonnes copper, 25,000 tonnes zinc, 680,000 ounces of silver. The Bommie Porphyry Copper mineral resource estimate[2] is reported as 95.6Mt @ 0.27% Cu for 262,000 tonnes copper metal (using 0.2% Cu lower cut) and includes 16Mt @ 0.3% Cu of indicated material for 48,000 tonnes copper metal.

Cazaly’s Managing Director Tara French commented, “We are extremely pleased to be working with AuKing. The signing of this MoU is a significant step towards establishing a potential pathway forward to progress the copper deposits at Halls Creek towards development.”

ENDS

For and on behalf of the Cazaly Board

For further information please contact:

Tara French (Managing Director) / Mike Robbins (Company Secretary)

Cazaly Resources Limited

ACN 101 049 334

Competent Persons Statement

1 The information in this report that relates to the Mount Angelo North Mineral Resource is based on information compiled by Ms Vanessa O’Toole Principle Consultant of Honey Mining and Resources Pty Ltd, a Competent Person, who is a Member of The Australasian Institute of Mining and Metallurgy and 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’. Ms Vanessa O’Toole consents to the inclusion in the report of the matters based on her information in the form and context in which it appears.

2 The information in this report that relates to the Bommie porphyry copper mineral resource estimation is based on work completed by Mr. Stephen Hyland, a Competent Person and Fellow of the AusIMM. Mr. Hyland is Principal Consultant Geologist with Hyland Geological and Mining Consultants (HGMC), who is a Fellow of the Australian Institute of Mining and Metallurgy and holds relevant qualifications and experience as a qualified person for public reporting according to the JORC Code in Australia. Mr Hyland is also a Qualified Person under the rules and requirements of the Canadian Reporting Instrument NI43-101. Mr Hyland consents to the inclusion in this report of the information in the form and context in which it appears.

The information in this report that relates to Exploration Results is based upon information compiled or reviewed by Ms Tara French and Mr Don Horn, who are employees of the Company. Ms Tara French and Mr Horn are both Members of the Australasian Institute of Geoscientists and have sufficient experience which is relevant to the style of mineralisation and type of deposit under consideration and to the activity which they are undertaking to qualify as a Competent Persons as defined in the 2012 Edition of the ‘Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves’. Ms Tara French and Mr Horn both consent to the inclusion of their names in the matters based on the information in the form and context in which it appears.

Forward Looking Statement

This ASX announcement may include forward-looking statements. Forward-looking statements include, but are not limited to, statements concerning Cazaly’s planned exploration program(s) and other statements that are not historical facts. When used in this document, the words such as "could," "plan," "estimate," "expect," "intend," "may”, "potential," "should," and similar expressions are forward looking statements. Although Cazaly Resources believes that its expectations reflected in these forward-looking statements are reasonable, such statements involve risks and uncertainties and no assurance can be given that actual results will be consistent with these forward-looking statements. The forward-looking statements in this announcement reflect views held only as at the date of this announcement.

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