CATALYST METALS LIMITED — Interim / Quarterly Report 2019

Oct 30, 2018

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ASX: CYL

Quarterly Activities Report

Quarter ended 30 September 2018

SUMMARY

• Strong gold intersections continued to be produced from RC and diamond drilling at the Four Eagles Gold Project’s Boyd’s Dam Prospect, including:

• 4.0m @ 11.62g/t Au (FERC211)

• 5.0m @ 9.91g/t Au and 3.0m @ 17.2g/t Au (FERC227)

• 16.0m @ 8.2g/t Au (FEDD011)

• 4.0m @ 9.53g/t Au (FEDD015)

• Gold intersected at 260 metres below surface at Boyd’s Dam Prospect – the deepest yet recorded at the Four Eagles Gold Project, and strong evidence of “stacked” repetitions at depth of high-grade shallow gold zones

• Gold mineralisation over 3 kilometre strike-length confirmed by air core drill results from Eagle1 Prospect (now re-named the “Cunneen’s Prospect”), also within the Four Eagles Gold Project

• Acceptance by DEDJTR of the Mineralisation Report for the Tandarra Retention Licence (RL006660)

• Imminent completion of detailed Tandarra Joint Venture Agreement following confirmation of Catalyst’s 51% interest

• New gold occurrence reported from initial reconnaissance RAB-drilling at Golden Camel exploration licences:

• 6.0m @4.2g/t Au (RGB040)

• First drilling results from Drummartin EL6507

INTRODUCTION AND OVERVIEW

Exploration activity conducted and results received during the September 2018 Quarter have further advanced both the Four Eagles Gold Project and the Tandarra Gold Project in Catalyst’s Whitelaw Gold Belt tenement blocks (Figure 1).

At the Four Eagles Gold Project, assay results were received for the remaining 8 reverse circulation (RC) drill holes at Boyd’s Dam, confirming the continuity of high-grade mineralisation along a strikelength of at least 600 metres, at depths of less than 120 metres (Figures 3 and 4). Processing of the cores from 13 diamond drill (DD) holes testing for lode repetitions at depth below the Boyd’s and Hayanmi prospects continues at the date of this report. The DD holes below Boyd’s Dam confirmed the existence of multiple heavily quartz-veined zones mineralised with common pyrite and arsenopyrite and occasional occurrences of visible gold, while most results from Hayanmi are still awaited. Air core (AC) drilling confirmed the continuity of gold mineralisation at the Eagle 1 prospect, now re-named as the Cunneen’s Prospect.

At the Tandarra Gold Project (Catalyst interest 51%), the official acceptance by the Victorian Department of Economic Development, Jobs, Transport and Resources ( DEDJTR ) of the Mineralisation Report lodged in late 2017 marks a key pre-requisite for the grant of a Retention Licence which will provide secure tenure over the Tomorrow Zone gold zone and surrounding prospects for a period of up to 10 years. Following the completion of the expenditure of $3.0 million to earn its interest of 51%

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in the Tandarra Project, Catalyst has been in advanced discussion with partner Navarre Minerals Ltd to finalise the terms of the operating Joint Venture Agreement (JVA), which is expected to be concluded in the December 2018 quarter, in time for the resumption of drilling.

Catalyst has significant interests in seven exploration licences (ELs) and one retention licence (RL) covering the whole of the known Whitelaw Belt - an area of approximately 75 kilometres long, and 5- 10 kilometres wide commencing immediately north of the outcropping Bendigo Goldfield (Figure 1). This is the structural zone thought to control the emplacement of the Bendigo gold deposits, and to extend in generally northerly direction in favourable Ordovician rocks beneath the covering veneer of younger Murray Basin sediments. In particular, the Four Eagles and Tandarra gold projects (respectively about 55 kilometres and 40 kilometres north-north-west of Bendigo) contain gold discoveries similar in style to those at the historic Bendigo mines (Figure 1). In addition to these gold discoveries, this belt remains largely untested or at best sparsely tested and highly prospective for the discovery of new gold deposits of Bendigo and Fosterville styles. Catalyst has additional tenement holdings and joint venture interests covering areas of similar geological relationships to east and west of the Whitelaw Belt holdings (Figure 1).

Work during the September 2018 quarter included initial reconnaissance drilling programs on the Drummartin and Golden Camel gold projects to the east of the Whitelaw Gold Belt, and logging, sampling and processing of assay results from Four Eagles Gold Project drilling programs.

FOUR EAGLES JOINT VENTURE (RL 6422, EL 5295, EL 5508) (CATALYST 50%)

Catalyst holds a 50% joint venture interest in the Four Eagles Gold Project with Gold Exploration Victoria Pty Ltd ( GEV ) (a wholly-owned subsidiary of Hancock Prospecting Pty Ltd).

Retention Licence ( RL ) 6422 flanked by the remaining ELs comprises the Four Eagles Gold Project and covers an envelope of gold mineralisation about 6 kilometres long and 2.5 kilometres wide. Three prospects have produced high grade gold mineralisation (Hayanmi, Boyd’s Dam and Discovery) over strike lengths of 500 to 800 metres (Figure 2).

Cunneen’s Prospect

A fourth prospect (formerly designated “Eagle 1”, renamed as “Cunnen’s Prospect”) located 2 kilometres further west, was confirmed by AC drilling completed during the current quarter (Figure 2). Cunneen’s Prospect is located about 4 kilometres west of the Whitelaw Fault; a similar distance to the most productive area of the Bendigo Goldfield. Interpretation of anomalous arsenic assays and gravity signatures indicates that the structure is at least 3 kilometres long. It will be the subject of systematic follow-up drilling in 2019

Gold intersections included

• 1.0m @ 1.26g/t Au from 149m (FE852)

• 1.0m @ 1.26g/t Au from 107m (FE867)

In addition to:

• 1.0m @ 3.1g/t Au from 124m (FE847) (previously reported in 2017)

Boyd’s Dam RC Blade/Hammer Drilling

The assay results for the last 8 of 37 RC drill holes completed at Boyd’s Dam yielded 6 significant gold intersections (greater than 20 ‘gram-metres’) including:

• 4.0m @ 11.62g/t Au from 79m (FERC211)

• 5.0m @ 9.91g/t Au from 80m and 3.0m @ 17.21 g/t from 107m (FERC227)

These drill holes served to better define the cross-sectional shape of gold mineralisation on 25 metre spaced traverses along a 600 metre strike length of Boyd’s Dam. The results are summarised in Figures 4 and 5, respectively illustrating Boyd’s Dam drilling results in longitudinal projection and cross section.

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Bulk cyanide leach assays carried out on larger samples from each mineralised interval have as in previous drill programs proved to be generally confirmatory of the reported intersection values based on analysis of 25-gram samples using aqua regia digest and analysis by mass spectroscopy (ICP-MS).

Full location data on the RC Blade/Hammer holes were provided in Appendix 1 of the ASX Announcements dated 25 June 2018 and 30 October 2018, together with Summary of Sampling Techniques and Reporting of Exploration Results according to the JORC Code 2012 Edition. Maximum gold values in each hole were also tabulated in the same reports.

Processing and interpretation of the results of RC and DD drilling programs is continuing.

Diamond Drilling Boyd’s Dam and Hayanmi

At the completion of the programme in mid-June 2018, 13 holes had been completed for a total of 3,150 metres of diamond core and 826 metres of pre-collar drilling. Six DD holes were completed on the Boyd’s Dam trend as shown on Figure 4 and another 7 holes at Hayanmi. The Boyd’s Dam holes intersected multiple broad zones of quartz with arsenopyrite and some visible gold (Figure 4).

This deeper diamond drilling was designed to test for repeat gold bearing structures below the highgrade zones encountered in 2017 and 2018 and is funded jointly by the Victorian Government under the ‘TARGET’ co-funding scheme. The potential for high grade shoots of gold mineralisation below a vertical depth of 100 metres had not been previously tested at Four Eagles but these vertically stacked zones are a characteristic of mining at Bendigo which historically produced 22 million ounces of gold at an average grade of 15g/t Au, and also at the Fosterville mine, which occurs in a similar geological setting to the east of Bendigo.

The DD holes intersected the shallow Boyd’s Dam prospect en route to target zones at greater depth, producing the following best intersections (Figure 5):

• 16.0m @ 8.2g/t Au from 62m (FEDD011)

• 4.0m @ 9.53g/t Au from 108m (FEDD015)

The first of these appears to be related to the eastern limb or nose of an anticlinal “saddle reef”, a style of gold mineralisation typical of Bendigo gold deposits, as shown in cross section in Figure 5.

With results received from five of the six DD holes completed at Boyd’s Dam the occurrence is confirmed from several holes of multiple zones of extensive quartz veining with common arsenopyrite and pyrite, and several occurrences of visible gold (Figures 4 and 5). The best intersections reported from deeper zones are:

• 2.9m @ 5.91g/t Au from 108m (FEDD011) (probably connecting to the previously reported intersection of 6.0m @ 31.6g/t Au in FERC152)

• 2.0m @ 8.04g/t Au from 298m (FEDD015)

The second of these is the deepest gold intersection recorded from the Four Eagles Gold Project.

Full results and location data on the Boyd’s Dam DD holes were provided in Appendix 1 in the ASX Announcement dated 30 October 2018 together with a Summary of Sampling Techniques and Reporting of Exploration Results according to the JORC Code 2012 Edition. The core from Hayanmi is still being logged, cut and sampled and assays are expected to be available during the December quarter.

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TANDARRA GOLD PROJECT (EL4897) (CATALYST HAS EARNED 51% FROM NAVARRE MINERALS LIMITED)

The Tandarra Gold Project is situated along the Whitelaw Fault Corridor which is considered to be a major structural control of gold mineralisation north of Bendigo. It is located about 15 kilometres south of the Four Eagles Gold Project (Figure 1).

In December 2017, an application was lodged with the DEDJTR for the conversion of EL4897 into a Retention Licence (RL006660). A detailed Mineralisation Report and Programme of Works was lodged in conjunction with this application as part of the requirement to show that significant gold mineralisation had been discovered in the project area. Under Victorian regulations, EL4897 continues in full effect until the Retention Licence is granted or refused.

Following the provision of supplementary information requested by DEDJTR, Catalyst has been advised by DEDJTR of its acceptance of the Mineralisation Report. This notification provides a key prerequisite for the grant of the Retention Licence which will provide secure tenure over the Tomorrow Zone gold zone and surrounding prospects for a period of up to 10 years.

Following the completion of the expenditure of $3.0 million to earn its interest of 51% in the Tandarra Gold Project, Catalyst has been in advanced discussion with partner Navarre Minerals Ltd to finalise the terms of the operating Joint Venture Agreement. The agreement is expected to be concluded in the December 2018 quarter, in time for the resumption of drilling.

GOLDEN CAMEL PROJECT (ELs 5449 and 5490 CATALYST EARNING 50.1%)

In July 2018 the Company entered into an agreement with private company, Golden Camel Mining Pty Ltd, to earn 50.1% interest in Exploration Licences EL5449 and EL5490 (Figure1). The completion of an initial 130-hole program of Rotary Air Blast (RAB) drilling has generated results providing sufficient encouragement to justify the Company embarking on the main Phase 2 of the Agreement. Phase 2 entitles the Company by the expenditure of $650,000 over the next four years, to earn a 50.1% interest in the two exploration licences.

Included in the tenement package are Mining Leases MIN5548 and MIN5570 covering the Golden Camel Gold Mine. In 2017, Golden Camel Mining successfully mined and processed approximately 6,000 tonnes of ore between surface and 10 metres depth from the Golden Camel mine. Historical drill results demonstrate the continuation of gold mineralisation to greater depth (Figure 7).

The tenements cover a large area of over 25 kilometres north-south by 3 kilometres wide, totalling 85 square kilometres, located approximately 15 kilometres east of the Fosterville Gold Mine (Figures 1 and 7). In addition to the Golden Camel gold deposit, historical gold mining is evident at Toolleen and Glengarry localities (Figure 7), demonstrating prospectivity in each of the main geological units within the tenement block.

Phase 2 of Catalyst’s earn-in agreement includes the option to purchase a 50.1% interest in the Mining Leases for $1.0 million after expenditure of $350,000 and the completion of 1,200 metres of diamond/precollar drilling at the Toolleen and Golden Camel Mines.

Public records indicate that the area has been only lightly explored. Catalyst’s reconnaissance program comprised 130 RAB drill holes on 8 traverses. (Figure 7). The relatively widely-spaced drill holes on very widely-spaced (3-4km apart) traverses provided geological orientation and assay results which included a number of zones variably anomalous in several elements commonly associated with gold in this part of the Bendigo region (arsenic, antimony and silver). Most importantly, an intersection of 6.0m @ 4.2g/t Au was reported from 12-18 metres in hole RBG040, located 3 kilometres along strike from the old Glengarry Mine workings. The gold result and these anomalous zones provide a focus for follow up drilling which is planned for the first half of 2019.

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Results and location data on the Golden Camel RAB drill program were provided in Appendix 1 in the ASX Announcement dated 18 October 2018 together with Summary of Sampling Techniques and Reporting of Exploration Results tables as required by the JORC Code 2012 Edition.

DRUMMARTIN PROJECT (EL006507 CATALYST 100%)

The Drummartin EL006507 was granted to Catalyst’s wholly owned subsidiary Kite Operations Pty Ltd, in December 2017 for a term of five years. Situated east of the Company’s Whitelaw Gold Belt landholdings (Figure 1), the area was selected to cover the northerly extensions of the major Redesdale and Drummartin faults, which are concealed beneath younger sedimentary cover. These are thought to control the mineralisation of the Fosterville Gold Mine to the south in a structural relationship analogous to that which links the Whitelaw Fault to the Bendigo goldfield, as well as to Catalyst’s Four Eagles and Tandarra gold discoveries to the west (Figure 1).

There has been little previous exploration of the EL, with occasional anomalous arsenic and trace gold values reported from drilling programs testing targets identified beneath typically 80-100 metres of younger sediment cover. To the south of the eastern part of the EL, evidence of the existence below the sedimentary cover of the Whitelaw Belt style of gold mineralisation is provided by the Lockington discovery (Figure 1) outlined in 2007.

Catalyst’s initial reconnaissance of the EL comprised four single-traverse tests by AC drilling, of targets identified by reinterpretation based on Whitelaw Gold Belt models of public domain gravity survey records. The survey totalled 27 holes, typically to around 150 metres depth, testing weathered basement below 50-100 metres sedimentary cover. Despite the wide spacing between holes, encouraging intercepts were recorded of abundant quartz veining, occasional pyrite mineralisation and scattered Au and As anomalism.

Follow-up drilling will be planned around these encouraging results and in the eastern half of the EL

Full results and location data on the Drummartin AC drill program were provided in Appendix 2 in the ASX Announcement dated 18 October 2018 together with Summary of Sampling Techniques and Reporting of Exploration Results tables as required by the JORC Code 2012 Edition. Additional details of the Catalyst AC drill results and the Lockington gold mineralisation are included in the same report.

SEBASTIAN PROJECT (EL5533 CATALYST 100%)

The Sebastian Project is located at the southern end of Catalyst’s Whitelaw Belt tenement block (Figure 1).

New corridors of previously identified potential gold mineralisation remain to be followed up by further AC drilling.

MACORNA BORE PROJECT (EL5521 CATALYST 100%, EL5508 CATALYST 50%)

The Macorna Bore Project is located at the northern end of Catalyst’s Whitelaw Gold Belt tenement block (Figure 1). As reported earlier in 2018 new gold-prospective corridors were identified by orientation AC drill-testing of targets identified by detailed gravity survey. These arsenic-anomalous zones await more detailed evaluation by AC drilling. Both the gravity survey and the AC drill-testing are funded by the Victorian Government under its ‘TARGET’ co-funding scheme.

REGIONAL EXPLORATION (EL006670 CATALYST 100%)

There were no material developments during the September 2018 quarter on Catalyst’s exploration lease EL006670 (Boort), situated to the west of the Whitelaw Gold Belt (Figure 1)

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PROGRAM FOR DECEMBER 2018 QUARTER

During the December 2018 quarter, work will continue to complete logging and assaying of the Four Eagles Gold Project (Boyd’s Dam and Hayanmi) and Tandarra Gold Project (Tomorrow) DD core, drilled earlier in 2018, and the application of this data to interpretation of the gold zones outlined, and the detailed design of drill programs. AC, RC and DD drilling programs are scheduled to resume in November 2018.

At the same time, detailed planning of drilling and supporting exploration programs will continue for all the other Catalyst-managed ELs along the Whitelaw Gold Belt and elsewhere in the region.

Negotiations will continue to expedite the grant of the Retention Licence over the Tandarra Project and the completion of the Tandarra Project Joint Venture Agreement

CORPORATE

In July 2018, 318,528 ordinary shares were issued to ASX-listed St Barbara Limited pursuant to an underwriting agreement for the shortfall from the exercise of listed options which expired on 30 June 2018. No fee or commission was payable for the underwriting of the options.

A total of 100,000 ordinary shares were issued in July 2018 following the exercise of unlisted options exercisable at $1.00 each.

Enquiries to:

Bruce Kay Steve Boston Technical Director Chairman Telephone: +61 400 613 180 +61 409 574 515

Corporate summary (at 30 September 2018)

ASX trading code: CYL Quoted shares: 70,212,444 Unquoted options: 1,000,000 Cash balance at end of quarter: $4.6 million Postal address: PO Box 778 Claremont, Western Australia 6910 Telephone: (+61 8) 6263 4423 Facsimile: (+61 8) 9284 5426 E-mail: admin@catalystmetals.com.au Web-site: www.catalystmetals.com.au

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Tenement directory
Project	Tenement number	Beneficial interest
Victoria
Four Eagles	RL6422	50%
Four Eagles	EL5295	50%
Pyramid	EL5508	50%
Raydarra East	EL5509	100%
Tandarra	EL4897	51%
Sebastian	EL5533	100%
Raydarra	EL5266	51% (earning in via farm-in agreement)
Macorna Bore	EL5521	100%
Drummartin	EL006507	100%
Boort	EL006670	100%
Golden Camel	EL5449 and EL5490	50.1% (earning in via farm-in agreement)
Retention Licence RL006660 is under application to replace EL4897. Interests in Exploration Licences
5449 and 5490 were as a result of the farm-in agreement entered into with Golden Camel Pty Ltd in July
2018
No other interests in mining tenements or farm-in or farm-out agreements were acquired or disposed
of during the quarter.

JORC Reporting of Historic Navarre Exploration Results

Although Catalyst was not involved in previous exploration at the Tandarra Gold Project, it has elected to update the information to comply with the JORC 2012 Code. The results had been publicly reported by Leviathan Resources Pty Ltd (ASX code LVR) (December 2004 to January 2007), Perseverance Corporation Limited (ASX code PSV) (January 2008 to March 2011) and Navarre Minerals Limited (ASX code NML) (March 2011 to September 2015) in numerous announcements during the stated periods under the JORC 2004 Code. Catalyst has limited knowledge on how the data was collected but has had to make assumptions based on the available historic data generated by these companies.

Full location data on the Tandarra drill holes and a Summary of Sampling Techniques and Reporting of Exploration Results according to the JORC Code 2012 Edition were included in the Company’s ASX announcement dated 1 September 2014.

Competent person’s statement

The information in this report that relates to exploration results is based on information compiled by Mr Bruce Kay, a Competent Person, who is a Fellow of the Australasian Institute of Mining and Metallurgy. Mr Kay is a non-executive director of the Company 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 (the JORC Code). Mr Kay consents to the inclusion in the report of the matters based on his information in the form and context in which it appears.

Much of the historical information relating to the Four Eagles project was prepared and first disclosed under the JORC Code 2004. This information has not been updated since to comply with the JORC Code 2012 on the basis that the information has not materially changed since it was reported.

Information relating to the Tandarra project was first disclosed by previous tenement holders under the JORC Code 2004. This information has been subsequently reported by the Company in accordance with the JORC Code 2012, refer to announcement dated 1 September 2014 and the quarterly activities report dated 31 July 2014.

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Figure 1: Whitelaw Gold Belt and Adjacent Tenement Holdings showing major Catalyst managed projects

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Figure 2: Four Eagles Gold Project showing areas of drilling in 2018 and newly named Cunneens Prospect. Drillhole collars shown do not include 2018 RC or DD holes (shown on Figures 3 and 4)

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Figure 3: Four Eagles Project: Boyd’s Dam detailed plan view showing position of 2018 RC and diamond drill collars and significant results

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Figure 4: Longitudinal Projection of Boyd’s Dam Prospect showing areas of RC and diamond drilling in 2018. Significant drill intersections from 2018 are highlighted in blue.

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Figure 5: Boyd’s Dam cross section showing stacked zones of gold mineralisation interpreted from RC and diamond drilling

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Figure 6: Tandarra Gold Project showing location of Tomorrow and McNaughtons Gold Zones and air core drilling of Gravity and DGPR geophysical targets.

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Figure 7: Golden Camel Project Map showing Known Mineralisation, RAB Drilling completed and Interpreted Gold and Arsenic-Antimony-Silver Anomalies

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