BLACK CANYON LIMITED — Capital/Financing Update 2021

Sep 1, 2021

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ASX:BCA

Grant of the Lofty Range Tenement

HIGHLIGHTS

• Strategically located 30km northwest of the Butcherbird Manganese Operation

• In close proximity to infrastructure including the Great Northern Highway

• Regional mapping confirms prospective manganese enriched shales

• Initial field assessment identifies outcropping manganese mineralisation

• Surface mineralisation remains untested in addition to large areas of prospective geology that have not been subjected to ground geophysical surveys and followup drilling.

Black Canyon (ASX: BCA) is pleased to advise that the Lofty Range tenement, E52/3897 covering 206km² has been granted. A field assessment conducted over the tenement has identified manganese mineralisation related to shales occurring across the project area (Figure 1). The tenement is located approximately 30km northwest of the recently commissioned Butcherbird Operation and just west of the Great Northern Highway (Figure 2). The exploration license is held by Zephyr Exploration Pty Ltd a wholly owned subsidiary of Black Canyon.

Black Canyon Executive Director Brendan Cummins said: “With the grant of the Lofty Range tenement strategically located in close proximity to the Great Northern Highway and recently commissioned Butcherbird Manganese Operation the 100% owned project provides yet another great opportunity for Black Canyon to discover manganese in a proven belt. The initial field investigation has confirmed manganese mineralisation and enrichment at a number of locations across 22km of strike. Clearly it is early days at Lofty Range and further evaluation is required to understand the full potential of the project.”

There has been limited exploration work undertaken by previous explorers for sediment hosted supergene manganese mineralisation within E52/3897. The geology of the Lofty Range project contains the same stratigraphy as the Butcherbird deposit owned by Element 25 (ASX:E25) located on the east side of the Neds Gap Fault array. Early work indicates a shale dominant sequence with outcropping Mn enrichment within the project area. Initial surface reconnaissance mapping completed by Black Canyon across the tenement has delineated widespread residual manganese enriched shales of the Ilgarari Formation and manganiferous - ferruginous deposits associated with laterite and duricrust.

Telephone: +61 8 9426 0666 Email: info@blackcanyon.com.au Website: www.blackcanyon.com.au

ASX Code: BCA

Registered Address 283 Rokeby Road Subiaco, WA, 6008

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Figure 1 Outcropping manganese enriched shale at Lofty Range (E52/3897)

Further field work is planned to confirm shale hosted manganese and will include detailed mapping and rock chip sampling. These activities will assist in identifying zones of manganese enrichment so geophysical surveys can be planned prior to follow up RAB/AC and RC drill programs.

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Figure 2. Location of the Black Canyon tenement

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The grant of the tenement triggers the issue of 1 million Tranche 2 shares to the original shareholders of Zephyr Exploration Pty Ltd under the Zephyr Exploration Pty Ltd Share Sale Agreement as disclosed in the Black Canyon Prospectus dated 17 March 2021. A portion (750,000) of the Tranche 2 shares are subject to a 24 month escrow period until 5 May 2023, with the remaining 250,000 to be held in escrow for 12 months from date of issue.

This announcement is approved for release by the Board of Directors.

ENDS

For Further Information

Brendan Cummins Jay Stephenson +61 400 799 756 +61 412 474 180

Competent Person Statement

The information in this report that relates to previous Exploration Results is based on, and fairly represents, information and supporting documentation reviewed by Mr Brendan Cummins, Executive Director of Black Canyon Limited. Mr Cummins is a member of the Australian Institute of Geoscientists and he has sufficient experience which is relevant to the style of mineralisation and type of deposits under consideration and to the activity which has been 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”. Mr Cummins consents to the inclusion in this release of the matters based on the information in the form and context in which they appear. Mr Cummins is a shareholder of Black Canyon Limited.

About Black Canyon

Black Canyon has entered into a farm-in and joint venture with ASX listed Carawine Resources Limited (ASX:CWX) to acquire a majority interest in the Carawine Project in Western Australia. The Carawine Project covers approximately 800km[2] of tenure located south of the operating Woodie-Woodie manganese mine, providing a large footprint in a proven and producing manganese belt. Black Canyon has also applied directly for another exploration license adjacent to the Carawine Project that would increase the total land holdings to over 1400km[2] on grant. In addition to manganese, the Carawine Project also hosts multiple copper occurrences including the Western Star prospect which comprises a large zone of surface copper enrichment.

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The Company has also secured the Lofty Range manganese project located immediately to the west of the Butcherbird manganese deposit being developed by Element 25.

Manganese and copper continue to have attractive fundamentals with growing utilization in the battery mineral sector and challenging supply conditions.

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