BOAB METALS LIMITED — Capital/Financing Update 2021

Jan 31, 2021

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1 February 2021

DFS Metallurgical and Geotechnical Programs Underway

Boab Metals Limited (ASX: BM L) (“ Boab ” or the “ Company ”) is pleased to report that the Metallurgical and Geotechnical testwork programs for the Sorby Hills Definitive Feasibility Study (“ DFS ”) have commenced.

HIGHLIGHTS

• 28 metallurgical drill holes for 2,116m have been completed .

• 14 geotechnical drill holes for 1,224m have been completed .

• All assay results for the metallurgical drill holes have been received.

• Composite samples have been successfully collected and submitted to ALS Metallurgical Laboratories in Perth.

• Comprehensive testwork programs will further de-risk the Project and simultaneously investigate value-adding opportunities.

The DFS metallurgical testwork program has been carefully designed to investigate and define the optimal processing parameters and associated metallurgical performance of ore to be mined from Sorby Hills deposit. A total of 28 metallurgical drill holes (Figure 1) for 2,116m have been completed from which master, schedule and variability composite samples have been selected and submitted to ALS Metallurgical Laboratories in Perth.

In addition to comminution (crushing and grinding), flotation and tailings testwork, a primary objective of the metallurgical program will be to further investigate the incorporation of a Dense Media Separation (“DMS”) plant into the processing flowsheet as a way to add value to the Sorby Hills Project.

Previous metallurgical testwork conducted by the Company has demonstrated that the inclusion of a DMS in the flowsheet would potentially allow for the economic incorporation of lower grade ore into the production schedule by enhancing feed grade (2.7x for Lead and 2.4x for Silver - ASX release 30 April 2020) and increasing ore throughput. The DFS will build on this body of work through a combination of bench scale and pilot scale testwork programs.

Lead-Silver concentrate samples and specifications generated from the metallurgical testwork program will support discussions with Offtakers over the coming months.

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Figure 1: Location of Metallurgical and Geotechnical drill holes completed at B, Omega and Norton deposits as part of the Phase IV drilling program relative to Resource in-fill and Exploration holes, the Sorby Hills Resource, previously completed drill hole locations and open pit design outlines.

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Key activities of the metallurgical testwork program include:

• Materials Handling testwork – to define bulk solids flow properties to provide materials handling design details.

• Comminution testwork - to define crushing and grinding characteristics as a function of ore type and location in the processing schedule.

• Heavy Liquid Separation (“HLS”) testwork - to define optimum crush size for DMS beneficiation of lower grade ore and variability response.

• Pilot DMS - to demonstrate gravity separation at a large scale and augment the HLS testwork data set for design .

• Flotation testwork - to define optimal grind size, reagent regime and flotation circuit design as a function of ore type and location in the processing schedule, including locked cycle tests for the schedule composites

• Dewatering testwork - including tailings and concentrate thickening and filtration vendor equipment selection/sizing testwork.

• Lead-Silver Concentrate testwork - including Transportable Moisture Limit (“ TML ”) measurement and the provision of concentrate product to support the securing of binding Offtake agreements.

The DFS Geotechnical drilling comprised 14 diamond drill holes for 1,224m (Figure 1) of which 6 were drilled in the Norton Deposit area. All data collection has been completed and sufficient geotechnical data now exists to underpin the Omega, B and Norton DFS open pit designs.

Boab Managing Director Simon Noon stated: “The commencement of our DFS metallurgical and geotechnical testwork programs represents another significant milestone as we progress toward the development of the Sorby Hills Project.

The 28 metallurgical drill holes and 14 geotechnical drill holes collected during the Phase IV drilling program are a significant addition to the already substantial body of data that exists at Sorby Hills. The forthcoming testwork program is comprehensive and seeks to de-risk the Project whilst simultaneously investigate exciting value-adding opportunities.

We look forward to reporting the results of the testwork programs over the coming months.”

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The Board of Directors have authorised this announcement for release to the market.

FOR FURTHER INFORMATION, PLEASE CONTACT:

Simon Noon Managing Director

Phone: +61 (0)8 6268 0449

Email: info@BoabMetals.com

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About Boab Metals Limited

Boab Metals Limited (“ Boab ”, ASX: BML ) is a Western Australian based exploration and development company with interests in Australia and South America. In Australia, the Company is currently focused on developing the Sorby Hills Lead-Silver-Zinc Joint Venture Project in WA. Boab owns a 75% interest in the Joint Venture with the remaining 25% (contributing) interest held by Henan Yuguang Gold & Lead Co.Ltd.

Sorby Hills is located 50km from the regional center of Kununurra in the East Kimberley and has existing sealed roads to transport concentrate from site to the facilities at Wyndham Port, a distance of 150km. Established infrastructure and existing permitting allows for fast-track production.

About Henan Yuguang Gold and Lead Co Ltd

Henan Yuguang Gold and Lead Co., Ltd (“ Yuguang ”) was established in 1957 by the government of Jiyuan City which is in Henan Province in North China. In July 2002, HYG (exchange code: 600531) was listed on the Shanghai Stock Exchange (“ SSX ”). Current ownership is approximately 29.61% by Jiyuan City. Yuguang is the largest lead smelting company and silver producer in China and has been among the Top 500 Chinese enterprises and Top 500 China manufacturing enterprises for the last five consecutive years. The main products produced by Yuguang are electrolytic lead, gold, silver and copper which are all registered at LME and LBMA respectively. In 2017, Yuguang produced 415,100 tonnes of electrolytic lead, 110,000 tonnes of copper, 958 tonnes of silver, 7,383 kg of gold and achieved sales of about US$2,684 million. Yuguang’s plants are largely modern, focussed on development of industrial technology and are environmentally friendly. Its recently refurbished lead smelting plant has achieved full automation. More information can be found on the Yuguang website: http://www.yggf.com.cn/en/.

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APPENDIX 1

Table 1: Mineral Resource Estimate. Reported above a cut-off of 1% Pb (Pb domains only)

		Measured				Indicated				Inferred				Total
Deposit	Mt	Pb (%)	Ag (g/t)	Zn (%)	Mt	Pb (%)	Ag (g/t)	Zn (%)	Mt	Pb (%)	Ag (g/t)	Zn (%)	Mt	Pb (%)	Ag (g/t)	Zn (%)
A	-	-	-	-	-	-	-	-	0.6	6.1	32	1.2	0.6	6.1	32	1.2
B	0.5	4.3	24	0.3	1.3	4.2	24	0.3	-	-	-	-	1.8	4.3	24	0.3
Omega	4.2	4.3	45	0.4	9.2	3.2	29	0.4	2.5	3.0	23	0.6	15.8	3.5	32	0.4
Norton	2.4	4.3	83	0.3	2.2	3.4	38	0.5	16.0	2.5	30	0.4	20.6	2.8	37	0.4
Alpha	-	-	-	-	1.0	2.8	50	0.6	1.0	3.4	85	1.4	2.0	3.1	67	1.0
Beta	-	-	-	-	-	-	-	-	3.3	4.6	61	0.4	3.3	4.6	61	0.4
Total	7.1	4.3	57	0.4	13.7	3.3	31	0.4	23.4	3.00	36	0.5	44.1	3.3	38	0.5

Notes. 1. The information is extracted from the report entitled “Mineral Resource Update Sorby Hills Pb-Ag-Zn Project” released on 2 June 2020 and is available to view on www.boabmetals.com.

2. Tonnes and grade are rounded.

Table 2: Sorby Hills Ore Reserves Statement

		Proved			Probable			Total Ore Reserve
Deposit	Tonnes (Mt)	Pb (%)	Ag (g/t)	Tonnes (Mt)	Pb (%)	Ag (g/t)	Tonnes (Mt)	Pb (%)	Pb (kt)	Ag (g/t)	Ag (Moz)
B	0.6	3.7	20	1.3	3.4	20	1.8	3.5	60	20	1
Omega	4.1	4.1	43	5.5	3.1	29	9.6	3.6	340	35	11
Norton	2.1	4.0	82	0.2	3.5	48	2.2	4.0	90	79	6
Total	6.8	4.1	53	6.9	3.2	28	13.6	3.6	490	40	18

Notes: 1. Ore Reserves are a subset of Mineral Resources.

2. Ore Reserves are estimated using a lead price of US$2,095/tonne and silver price of US$21.10/ounce and USD/AUD exchange rate of 0.7.

3. Ore Reserves are estimated using a cut-off grade of 1.5% Pb.

4. The above data has been rounded to the nearest 100,000 tonnes, 0.1% lead grade and 10,000 lead tonnes,

1g/t silver grade and 1,000,000 silver ounces. Errors of summation may occur due to rounding.

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Competent Person Statement and JORC Information

The information in this release that relates to Exploration Results is based on information prepared by Dr Simon Dorling. Dr Dorling is a member of the Australasian Institute of Geoscientists (Member Number: 3101). Dr Dorling has sufficient experience which is relevant to the style of mineralization and type of deposit under consideration and to the activity which they are undertaking to qualify as a Competent Person as defined in the 2012 Edition of the JORC Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves. Dr Dorling consents to the inclusion in the release of the matters based on their information in the form and context in which it appears.

The interpretations and conclusions reached in this announcement are based on current geological theory and the best evidence available to the authors at the time of writing. It is the nature of all scientific conclusions that they are founded on an assessment of probabilities and, however high these probabilities might be, they make no claim for absolute certainty. Any economic decisions which might be taken on the basis of interpretations or conclusions contained in this announcement will therefore carry an element of risks.

Compliance Statements

Information included in this announcement relating to Mineral Resources and Ore Reserves has been extracted from the Mineral Resource Estimate dated 2 June 2020 and the Pre-Feasibility Report and Ore Reserve Statement dated 25 August 2020, both available to view at www.boabmetals.com. The Company confirms that it is not aware of any new information or data that materially affects the information included in either the Mineral Resource Estimate or the Ore Reserve Statement and that all material assumptions and technical parameters underpinning the estimates continue to apply and have not materially changed. The Company confirms that the form and context in which the Competent Person’s findings are presented have not been materially modified from the Mineral Resource Estimate or the Ore Reserves Statement.

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