CATALINA RESOURCES LTD — Capital/Financing Update 2020

Sep 13, 2020

==> picture [125 x 42] intentionally omitted <==

ASX Announcement 14 September 2020

ASX Code SHH ACN 130 618 683

COMPANY DIRECTORS

Sanjay Loyalka Director and Company Secretary

Amu Shah Non-Executive Director

Davide Bosio Non-Executive Director

CONTACT DETAILS

Principal & Registered Office Unit 38 18 Stirling Highway NEDLANDS WA 6009

www.shreeminerals.com T +61 8 6118 1672

SHREE MINERALS LTD

Fieldwork Commences at the Bruce Gold Project, NT

• Exploration fieldwork has commenced at the Bruce Gold Project

• Previous rock chip sampling returned grades of up to 53g/t Au[1]

• Gossanous quartz veins extend over 2km along strike

Shree Minerals Ltd (“Shree” or “SHH” or the “Company”) is pleased to announce that exploration fieldwork has commenced at the Bruce Gold Project in the Northern Territory (Figure 1).

Planned work comprises reconnaissance geological mapping of gossanous quartz veins, rock chip sampling and an orientation soil sampling program. The fieldwork and sampling program has been designed to determine the extent of the gossanous quartz veins and to validate assay results reported previously.

==> picture [358 x 258] intentionally omitted <==

Figure 1. Regional location of the Arunta Joint Venture projects and major resource projects in the region

SHREE MINERALS LIMITED | ACN 130 618 683 www.shreeminerals.com

Rock chip sampling of the gossanous quartz veins at the project by the Northern Territory Geological Survey (NTGS) returned grades of up to 53g/t Au[2] . Rock chip sampling by Roebuck Resources in 1996 also produced very anomalous assays[3] .

The veins are hosted by a mixed rock sequence including mica schist, calc-silicate and amphibolite that form part of the Irindinia Gniess. The veins are related to an east-west striking and south dipping shear zone. Prospecting along the veins by Olympia Resources in 2005 located intermittent exposures of the gossanous quartz veins over a 2km strike length. The veins have a brecciated texture containing clasts of mica schists, sulphidic sediment and massive sulphides. Typical outcrop of the quartz gossan veins is shown in Figure 2-3.

Between the outcropping quartz veins there are areas of shallow transported sand cover that masks and obscures the bedrock. If this shallow cover provides a geochemical response, soil geochemistry may identify anomalies in areas where gossanous quartz veins are buried by the transported sand.

==> picture [450 x 311] intentionally omitted <==

Figure 2. Gossanous veins with green malachite staining at Bruce’s Gold Prospect; samples yielded 1.9g/t gold and 1.6% copper[1] .

==> picture [359 x 379] intentionally omitted <==

Figure 3 : Outcropping gossanous quartz veins at Bruce’s Gold Prospect.

From aerial imagery, Shree has identified several regional areas, throughout the Exploration Licence, containing outcropping quartz veins. Field reconnaissance and sampling will determine if these regional veins have the same gossanous characteristics seen at Bruce’s Prospect.

Next Steps.

Following this program of reconnaissance geological mapping and sampling, a more detailed soil sampling program, over identified quartz gossans, is required to prioritise targets in readiness for drilling. Gossans exhibiting robust gold and pathfinder geochemistry relative to background will be targeted for drilling.

Background

In June 2020, Shree announced it had entered into a farm-in and joint venture agreement (“Arunta Joint Venture”) with Territory Lithium Pty Ltd (“TLPL”) to explore TLPL’s tenements for gold and base-metals.

The projects of the Arunta Joint Venture are the Box Hole, Edwards Creek and Bruce Gold Projects located in the Northern Territory. The tenements subject to these are EL 31225, EL32419 and EL32420 covering an area of ~380 square kilometres of ground in the highly prospective Arunta Region and 100% owned by TLPL (Figure 1). Significant projects in the area include the Jervois Copper-Silver Project (26.6Mt at 1.47% Cu, 24.7g/t Ag)[4] and the Johnnies Reward Gold-Copper Project.

The Bruce Gold Project covers an area of 127 km sq and is located 94 kilometers east of Harts Range. It can be accessed via the Plenty Highway north of Alice Springs.

The principal terms of the Arunta Joint Venture include:

• SHH can earn a 50% equity interest in the Joint Venture through the total expenditure of $50,000.

• Once SHH has earned a 50% equity interest, further Joint Venture expenditure contributions will be pro-rata, or else a non-contributing party’s equity will be diluted using the standard industry dilution formula.

• If SHH were doing sole expenditure, its share of equity in the Joint Venture would increase to 90% by it making a total expenditure of $450,000.

• Should a party’s equity in the Joint Venture fall to 10%, its share will be automatically acquired by the other party in exchange for a 1% NSR Royalty.

• SHH will manage the Joint Venture during the earn-in stage, and while ever it holds majority equity.

EL31225 (Bruce Gold Project) is a current Exploration Licence. EL32419 (Box Hole Lead-zinc Project) and EL32420 (Edwards Creek Copper Project) are Exploration Licence Applications. Shree is compiling previous exploration data on the Edwards Creek and Box Hole Projects and will commence exploration once the licences are granted and all access approvals are in place.

References

1 Shree Minerals Ltd (ASX:SHH) announcement 30th June 2020: Farm-in and joint venture agreement with Territory Lithium Pty Ltd to explore for gold and basemetals.

2 Baxter, J. 2005. Olympia Resources Limited. Reconnaissance mapping and soil sampling at Bruce’s Copper prospect EL9851, Northern Territory. Unpublished NT Open File Report CR2005/275.

3 Warne, S.B. 1996. Surface sampling and Preliminary assessment Report of the Molyhill Project Area for the period ended Jan. 1996. Roebuck Resources NL. Unpublished NT Open File Report CR19970066.

4 KGL Resources Limited (ASX:KGL) announcement 22nd August 2019. Significant upgrade of resources at KGL’s Jervois Copper Project.

Cautionary Statement

• The Exploration Results for the Bruce Gold Project have been reported by former owners;

• The source and date of the Exploration Results reported by the former owners have been referenced in the body of this announcement where Exploration Results have been reported;

• The historical Exploration Results have not been reported in accordance with the JORC Code 2012;

• A Competent Person has not done sufficient work to disclose the historical Exploration Results in accordance with the JORC Code 2012;

• It is possible that following further evaluation and/or exploration work that the confidence in the prior reported Exploration Results may be reduced when reported under the JORC Code 2012;

• Nothing has come to the attention of the Shree that causes it to question the accuracy or reliability of the historical Exploration Results; but

• Shree has not independently validated the historical Exploration Results and therefore is not to be regarded as reporting, adopting or endorsing those results

• There are no more recent Exploration Results or data relevant to the understanding of the Exploration Results;

• An assessment of the additional exploration or evaluation work that is required to report the Exploration Results in accordance with JORC Code 2012 will be undertaken following acquisition & will be funded by the Company as per the terms of the farm in and Joint Venture Agreement.

Competent Person Statement

The review of historical exploration activities and results contained in this report is based on information compiled by Michael Busbridge, a Member of the Australian Institute of Geoscientists and a Member of the Society of Economic Geologists. He is a consultant to Shree Minerals Ltd. He has sufficient experience which is relevant to the style of mineralisation and types of deposits under consideration and to the activity which he is undertaking 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 (the JORC Code).

Michael Busbridge has consented to the inclusion in the report of the matters based on his information in the form and context in which it appears.

The Company confirms that it is not aware of any new information or data that materially affects the information in the original reports, and that the form and context in which the Competent Person’s findings are presented have not been materially modified from the original reports.

Where the Company refers to the Mineral Resources in this report (referencing previous releases made to the ASX), it confirms that it is not aware of any new information or data that materially affects the information included in that announcement and all material assumptions and technical parameters underpinning the Mineral Resource estimate with that announcement continue to apply and have not materially changed.

About Shree Minerals Limited

Shree Minerals Limited is an exploration and mine development company including being engaged in mining and production of iron ore and dense media magnetite at its Nelson Bay River Iron Project in the north-western Tasmania and Gold exploration at its Golden Chimney Project in Western Australia.

The release of this document to the market has been authorised by:

Sanjay Loyalka Executive Director & Company Secretary +61 8 6118 1672