CAULDRON ENERGY LIMITED — Capital/Financing Update 2021

Dec 22, 2021

23 December 2021

ASX Announcement

Cauldron Targets Depth Extensions To Historic Bonanza Gold Grades, Responsible for Blackwood’s 1800s’ Gold Rush

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Photo sourced from N.J. Caire, 1877, courtesy of ExAct Geoscience Mineralisation Report (CXU, 2020)

Highlights

• Cauldron uncovers additional historical reports of a population explosion alongside mined shallow bonanza grades.

• Unlike Bendigo and Ballarat with similar depth potential, Blackwood’s mineralisation potential was never followed up at depth.

• Historical review highlights multiple unexplored areas down-dip of exceptional gold grades in the Western Reefs.

• Strong structural complexities produced mineralisation reportedly up to 9 metres in width and grades of up to 920 g/t Au (from Mine Reports at the Sultan Mine).

• Historic mining reported to have stopped at approx. 230m (Sultan) and 134m (Mounters), leaving potential for large undiscovered gold resources at depth.

• New, high-quality targets can be accessed from within the northern Tyrconnel Adit drive, thus enabling low-impact drilling activities.

Cauldron Energy Limited ( Cauldron or the Company ) (ASX: CXU) is pleased to further update its shareholders regarding the progression of desktop work undertaken on its highly prospective Blackwood Goldfield Joint Venture Project (CXU: 51%, “ the Project ” or “ Blackwood ”) ( Figure 1 ).

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ABN

22 102 912 783

Address

Unit 47, Level 1 1008 Wellington Street WEST PERTH WA 6005

PO BOX 1024 West Leederville WA 6007

ASX Code CXU

Securities on Issue 491,293,630 shares

6,833,395 Options (exercise price: $0.03; expiry 31 Dec 2021)

16,666,666 Options (exercise price: $0.03; expiry 31 Mar 2022)

10,000,0000 Unlisted Options (exercise: $0.03; expiry 16-Sep-22)

6,000,0000 Unlisted Options (exercise: $0.05; expiry 16-Sep-23) 61,001,898 Options (exercise price: $0.05; expiry 30 Nov 2023) 9,000,000 Performance Rights (expiring 10 August 2025)

Board of Directors

Simon Youds Executive Chairman

Jess Oram Non-executive Director

Qiu Derong Non-executive Director

Judy Li Non-executive Director

Chenchong Zhou Non-executive Director

Michael Fry Company Secretary

WWW.CAULDRONENERGY.COM.AU

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Cauldron’s experienced exploration team first initialised the historical review in 2019 upon completion of the Heads of Agreement and subsequent Due Diligence process[1] for the Project. By the end of the third quarter 2020, the Company had established a systems-style exploration model, a series of working 3D geological models and several new exploration target areas, identified both at surface[2] and down-plunge of the known, mined, reefs[3] . For ease of reference, Blackwood was compartmentalised into the Eastern Reef (Annie Laurie / Grace Egerton) and Western Reef (Sultan / Pioneer) systems ( Figure 1 ).

Historic accounts state that Blackwood’s first gold discovery was in 1855 at Jackson’s Creek, Golden Point[4] . The finding of one gold nugget started the gold rush of the area. The bonanza gold grades being discovered both from alluvial and quartz reef sources, resulted in rapid population growth and the establishment of villages such as Blackwood and Barrys Reef (refer to historical photo on title page). Mining reports document Blackwood’s population as approx. 13,000 in September 1855[5] . The rapid population expansion mirrors the better-documented gold-rushes of surrounding regions (e.g., Ballarat and Bendigo). However, Blackwood’s exceptional gold grades were all located within the top 60 – 150 metres (m) of rock. There has been very little exploration undertaken at depth down-dip and plunge of the historically mined areas, leaving great potential for remaining ore reserves of similar exceptional gold grades.

Since 2020, additional historical information has been found and added to the Cauldron Blackwood database. In 2021, the initiation of drilling activities near the Annie Laurie Reef coincided with a renewed review of these data. A schematic long section of the Western Reef mines was compiled from historical mine reports, showing historically reported fractured vein systems of up to 9m in thickness, containing grades of up to 920 g/t gold (Au) within the Western Reef system.

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Figure 1: Blackwood Gold Project Location Map

• 1 Refer ASX:CXU Announcement dated 12 December 2019

• 2 Refer ASX:CXU Announcement dated 31 August 2020

• 3 Refer ASX:CXU Announcement dated 23 September 2020

4 Refer to Blackwood District & Historical Society: “HISTORICAL ACCOUNT OF THE FIRST DISCOVERY OF BLACKWOOD.” https://www.blackwoodpublishing.com/historical-account-of-the-first-discovery-of-blackwood/ 5 Refer to Heritage Victoria, “SOUTHWEST VICTORIA HISTORIC MINING PLOTS: 1850-1980 - Historic Notes”. https://www.heritage.vic.gov.au/__data/assets/pdf_file/0019/512272/South-West-Victoria-Historic-Mining-Plots-1850-1980Historic-Notes-Bannear-nd.pdf

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Cauldron’s Executive Chairman, Simon Youds, stated, “ The review of historical information and data is throwing up some valuable information with stark similarities between Blackwood and other local, more wellknown, gold rush centres like Bendigo and Ballarat. The similarities of population explosion and extreme grade in the same geology settings are obvious. What is not so obvious is the reason why no exploration or mining was continued down-dip at Blackwood, as is the case in most of the other surrounding mines in the Central Victorian Goldfields.

The exciting aspect of this operation for Cauldron is having an underground drill platform to be able to assess the down-dip potential here. Coupled with more modern techniques and recent geological understanding in the area, we will be able to answer the question of depth extensions. This will assist in the search for additional gold reserves down-dip of historical operations. At the same time, we will be able to live up to our commitment to leave the surface-sensitive environment pristine and undisturbed. This has already been achieved for a number of years at the Henty Gold Mine in Tasmania.”

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The Blackwood region represents Victoria’s forgotten Goldfield. Although the gold rush began in 1855, seriously funded mining operations commenced in 1864. Between then and 1960, Blackwood produced approximately 218,000 ounces of gold from both orogenic (~199,000 oz) and placer sources (~19,000 oz), worth around US$390 million at today’s gold price (USD per ounce). Although gold was mined down to a maximum of 100min many of the shafts, there was little to no mining activity below 150m. The exception is the Sultan mine, which was sunk to a depth of approx. 300m. Historical mining, however, only went to a maximum depth of approx. 230m, where the exceptional gold grades were found. Due to the technological limitations of the era, the miners failed to follow the grades down-dip of the known reef and so concluded that the grades did not continue. The London-based directors of the Sultan Mining Company therefore terminated mining and sold all of the equipment, including the dewatering pumps, flooding the Sultan and surrounding mines. None of the smaller, mining companies could afford the required pumping equipment, resulting in the halt of all mining at depth in the goldfield. Historical gold mining did continue after this event, but at shallower levels throughout the area.

Cauldron’s Blackwood Gold Joint Venture Project comprises one Exploration Licence (EL 5479) and one Prospecting Licence Application (PL007763) situated over the Blackwood/Barrys Reef area, approximately 40 km east-northeast of Ballarat. The Exploration Licence is granted and is in Good Standing with a licence expiry date of 23 March 2024. The Project is centred on the Sultan Mine which historically produced a little over 73,000 ounces of gold at an average grade of 28 g/t Au. In addition, Blackwood contains more than 250 historically-excavated underground workings. Table 1 provides the list of the largest known gold producers active within these mines at the time.

Most mining activity on reef structures halted at shallow depths, but in many cases this was not due to depletion of mineralisation. Other factors, such as the inability to cope with high flow rates of groundwater in the underground mines, or the inability to raise capital for development work, also led to the halt of mining. This knowledge, together with the interpreted down-plunges of the mineralised reefs and case studies such as the Fosterville gold mine, strongly implies that there are likely significant gold resources still to be discovered at depths below these historical mines.

Two important considerations for any drill-testing of targets in the Victorian Goldfields are:

1. A good understanding of structural geology and targeting the geometries that are significant.

2. Testing lode structures at depths either above or below the geochemical depletion zone – i.e., a zone of reduced gold grade and tenor. This has only been done sporadically throughout Blackwood, leaving many targets untested and thus attesting to the high prospectivity of the goldfield.

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Table 1: Historic Gold Production from Various Reef Sources in the Blackwood Goldfield.

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Note: total reported production in this table is over 93,000 ounces of gold for the larger producers. However, inclusive of the smaller producers, total production for the entire goldfield is over 190,000 ounces

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Another way to represent the undiscovered potential of Blackwood is to compare this goldfield against its peers elsewhere in the Central Victorian Goldfields. Using an averaged depth of mining from all workings at Blackwood, historical gold production figures from the Project were compared with production from current operational goldfields such as Ballarat and Bendigo. Cognisant of the fact that the existing mines have been extended to depths far greater than any historical mining at Blackwood, the Company normalised the known, recent production figures to the same depth of mining as the average for the Project. Results strongly suggest that the Blackwood Goldfield holds far more remaining potential for the same level of bonanza grades and tonnages as its neighbours in the surrounding region ( Figure 2 ).

The current known trend of gold mineralisation in Blackwood is a generally north-south (N-S) strike over a distance of 3.5km strike length, from the North Sultan mine in the north to the Imperial mine in the south[5] . Historically mined depths average between 60 to 100m below ground surface, with the only deep mine being the Sultan mine, as described earlier. All known mineralised reef systems are themselves orientated N-S, with reported dips of between 60 to 70° from horizontal. Little to no exploration has been conducted at depth below the mined regions, for a variety of reasons (e.g., capital, groundwater, lack of appropriate technology and physical space in which to manoeuvre).

Preparation for the December 2021 drilling spurred a revisitation of the historical data compilations. Various cross sections sourced from historical reports contained one particular longitudinal view of the Pioneer to North Sultan mines of the Western Reef system ( Figure 3 ). While this area has been shown previously[6] , the rediscovered section was compiled from multiple historical mining progress reports of the 1800s gold rush period. Each of the original drawings were completed by different generations of mining companies, each again with their own surveying methods. One such historical note reports fractures and veins of up to 9min thickness and grades of up to 920 g/t Au at a vertical depth of approximately 120m.

Given that mining only occurred to an average depth of 60m throughout the Western Reefs, the comparison chart, along with the bonanza grades and thicknesses reported historically, leads to the logical question of the remaining, as-yet undiscovered scale of potential gold resources at depths below 100 – 150m in Blackwood.

6 Refer ASX:CXU Announcement dated 17 November 2021

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Figure 2: Comparison Chart of Blackwood Historical Goldfield versus Current Producing Goldfields

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Figure 3: Barrys Reef (Blackwood) Underground Workings – Western Reef System

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Concurrently, historical photographs ( Figure 4 ) show the population expansion from the Blackwood gold rush era. The felled trees were used for housing and fuel to power historic gold mining operations. Cauldron’s model for exploration and mining activities involves securing historically-mined areas in the top 100m and testing the selected exploration targets at depth from within the existing underground drives. The Company’s operations completed so far have been done in accordance with this model, thereby preserving the overlying forests and ensuring that no surface features are disturbed.

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Figure 4: Historical vs Modern – Barrys Reef showing results of population expansion from only shallow gold mining

The Company looks forward to updating the market with results from the various components of the exploration plan, as they become available.

END

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Authorised for release by Mr Simon Youds, Executive Chairperson Cauldron Energy Limited

For further information please contact:

Simon Youds Michael Fry Executive Chairperson Company Secretary Cauldron Energy Limited Cauldron Energy Limited T: (08) 6270 4693 T: (08) 6260 4693 M: +61 408 937 928 M: +61 417 996 454 simon.youds@cauldronenergy.com.au michael.fry@cauldronenergy.com.au

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The information contained in this report that relates to exploration results for the Blackwood Gold project is provided by Ms Asha Rao, who is a Member of both the AusIMM and the Australasian Institute of Geoscientists (AIG). Ms Rao 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 JORC 2012 edition of the “Australasian Code for Reporting of Mineral Resources and Ore Reserves”. Ms Rao has more than 16 years of experience and is employed fulltime as Exploration Manager for Cauldron Energy Ltd. Ms Rao consents to the inclusion in this report of the matters based on this information in the form and context in which they appear.

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• This market update has been prepared by Cauldron Energy Limited (“Company”). The material contained in this market update is for information purposes only. This market update is not an offer or invitation for subscription or purchase of, or a recommendation in relation to, securities in the Company. Neither this market update, nor anything contained therein, shall form the basis of any contract or commitment.

• The market update may contain forward-looking statements. Forward-looking statements include, but are not limited to, statements concerning Cauldron Energy Limited’s business plans, intentions, opportunities, expectations, capabilities and other statements that are not historical facts. Forward-looking statements include those containing such words as could-plan-target-estimate-forecast-anticipate-indicate-expect-intend-may-potential-should or similar expressions. Such forward-looking statements are not guarantees of future performance and involve known and unknown risks, uncertainties, assumptions and other important factors, many of which are beyond the control of the Company, and which could cause actual results to differ from those expressed in this market update. Since actual results might differ materially to the information in this market update, the Company does not make ( nor should this report be relied upon as) any representation or warranty as to the accuracy, or reasonableness, of the underlying assumptions and uncertainties. Investors are cautioned to view all forward-looking statements with caution and to not place undue reliance on such statements.

• The market update has been prepared by the Company based on information available to it, including information from third parties, and has not independently verified. No representation or warranty, express or implied, is made to the fairness, accuracy or completeness of the information or opinions contained in this market update.

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APPENDIX 1 – JORC TABLE 1, SECTIONS 1 – 2

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JORC Table 1: Section 1 Sampling Techniques and Data

Criteria of JORC Code 2012	Reference to the Current Report
	Comments / Findings
Sampling techniques	The historical drillholes reported in this announcement were completed between 1981 and 1989. Due to the historic nature of these data, it is not always possible to comment on the accuracy or quality of the gold grades derived from geochemical assay analysis. Selected geological data were sourced from various sources, including hard copy reports provided Blackwood Gold Mines Pty Ltd. Historical drilling data (from Reverse Circulation (RC) and diamond core) were extracted from work conducted by Carpentaria Exploration Company Pty Ltd (CEC), Western Gulf Oil and Mining Ltd (WGOM), Continent Resources Pty Ltd, Diamin Resources Pty Ltd, Grants Patch Mining Ltd, and Blackwood Gold Mines Pty Ltd. Historical face sampling from the underground workings were collected by historical Joint Venture partners Grants Patch and Regent Mining Ltd, and comprising a total of 428 samples assayed only for gold. No historical information is provided as to the establishment of the underground face channel sample widths although it is thought likely that this width would have been the width of the target quartz reef. Nor is any information provided regarding any associated hangingwall / footwall stockwork zone sampled. A total of 1,640 samples were collected from RC drilling undertaken by Dome Resources NL, Triad Minerals NL and NORD Resources (Pacific) Pty Ltd between 1986 and 1989. Samples were assayed only for gold. Information in the historical reports suggests that the samples were selected based on the presence and percentage of reef-style quartz in the zones of interest. A total of 502 samples were collected from Diamond Core drilling undertaken by CEC, Endeavour Resources, and WGOM and New Holland Mining NL between 1981 and 1997 – samples collected by New Holland in 1997 were part of a relogging/resampling validation exercise only and did not involve any drilling. Historical data have been reviewed by Cauldron Energy’s Competent Person who is satisfied that the information contained therein is of sufficient enoughqualitytoprovide a reasonable,indicativebasis for the existence ofpotentiallyeconomic mineralisation within the specified target areas.
Drilling techniques	Historical drilling within the Blackwood Gold Project mostly comprised RC drilling with a total of 47 holes drilled for 2,035 metres. A smaller component of Diamond Core (DD) drilling was completed by the various historical explorers listed below, for a total of 26 holes and 4,774.12 metres. - 1981 – Carpentaria Exploration Company Pty Ltd (CEC): 6 holes for a total 1,056.1 metres (DD) - 1981 – 1982 – Endeavour Resources NL: 11 holes for a total 2,104.62 metres (DD) - 1986 – 1987 – Western Gulf Oil and Mining Ltd: 9 holes for a total 1,613.4 metres (DD) - 1986 – 1989 – Triad Minerals NL: 9 holes for a total 255 metres (RC) - 1988 – 1989 – Dome Resources NL: 26 holes for a total 1,009 metres (RC) - 1989 – NORD Resources (Pacific) Pty Ltd: 12 holes for a total 771 metres (RC). To date, collar locations for the various drillholes have not been validated during field site visits, so the information remains indicative only. However, Cauldron Energy plans to validate these historical drill collars wherever and whenever possible during its exploration programs in the forthcoming months.
Drill sample recovery	Information on sample recovery was compiled by ExAct Geosciences during the 2020 data review exercise undertaken on behalf of Cauldron Energy Ltd. Historical sample recoveries were recorded on downhole (drilling) geology logging sheets by various historical explorers with some companies recording recoveries as physical measurements in lengths (metres) and others as both metre lengths and percentages. Core blocks were often used for diamond drilling (Endeavour Resources) to record both core recovery lengths and changes. Historical sample recoveries from RC drilling were reported to be generally poor in mineralised intervals, due to the presence of highly fractured ground, water saturated zones and the intersection of multiple voids. Historical recoveries for diamond drill core were reported to be vary greatly between 57% (lowest recorded) and 95% (highest recovered in a single run duringdrillingwith an NQ diameter core barrel). No other information has been found however review of all historical information is ongoing.

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Logging	Due to the historic nature of the results included in this report, it is not possible to comment on the accuracy or quality of any geological logging used to produce the results described therein. There appears to be sparse geological information available for the various channel samples collected historically, whereas detailed geological logs have been sourced from the various RC and diamond drilling programs completed by CEC, Endeavour, WGOM, Dome, Triad and NORD.
Sub- sampling techniques and sample preparation	The following information is available on sampling methods/techniques: - Historical underground face/channel samples were pulverised to pass -75μm mesh size with 2 splits of 25 grams each taken for assay. - Half-core diamond drill samples (Endeavour) were collected and pulverised first to 3mm, then ground to an approx. 1kg split. Two splits were sent for assay (50-gram Fire Assay). Laboratory duplicate samples were also reported. Half-core samples were retained for mineralogical records. - Bulk RC samples were split by riffle to 2kg samples, pulverised to -75μm mesh size. - RC sampling by Dome Resources were collected every metre and were based on the presence and percentage of reef-style quartz, with differences in sampling attributed to the intersection of historical mining voids. Samples were crushed but it is unknown how and to what size. Sampling for RC drillholes by Triad was completed on metre intervals except for one hole that was terminated in a 2.2 metre-wide (downhole) void. Field preparation procedures are also unknown. - Historical sampling completed by New Holland in 1997 involved resampling remaining diamond core drilled by Endeavour Resources, as well as re-assaying stored sample pulps. Resampled of RC materials involved the collection of 70 x 3-metre composites from RC bulk samples presumed to have been composited by Endeavour Resources as there are no records to suggest that New Holland composited samples themselves. No other information has yet been found for sample preparation or sub-sampling procedures. Sample lengths are reported to be variable between the different explorers: - CEC (1981) – samples between 0.10 – 1.15m - CEC (1982) – 0.30 – 1.00m. Both campaigns involved assaying for Au, Sb, As, Pb, Zn, Cu, Bi, Mo. Sample selection was later reported by Dome Resources to be questionable, being favourably selected from massive quartz and ignoring areas of quartz stringers and disseminated sulphides. - Endeavour (1981- 1982) – 0.05 – 7.76m, assaying mostly only for Au but including Ag on a non-routine basis. Due to the historic nature of this information and reporting methods, it is not possible to comment on the accuracy or quality of any of the sub-sampling techniques, sample preparation or calibration methods used to produce the final geochemical assays. However, the Competent Person is satisfied that the historical data contained therein is of sufficient enough quality to provide a reasonable,indicativebasis for the existence of potentially economic mineralisation within the specified target areas.
Quality of assay data and laboratory tests	The following information is gleaned from various historical reports and from two external data reviews by Exploration Management Services and ExAct Geosciences: - Diamond drill core samples collected by CEC were assayed by ComLabs Pty Ltd and Pilbara Laboratories. Gold assays were collected as part of a suite of multi-elements comprising Au, Ag, As, Bi, Co, Cu, Hg, Mo, Pb, Sb, and Zn. Assaying was completed by Aqua Regia Digest, Atomic Absorption Spectrometry (AAS) and XRF. Lower detection limits for the gold are taken to be 0.05ppm, based on historical information. - Geochemical assaying completed by Dome in 1988 were submitted to Classic Comlabs Ltd. Gold analysis was completed by 50-gram Fire Assay and AAS, with selected samples duplicated in Aqua Regia Digest. Laboratory certificates are sparse, however lower detection limits were reported as 0.05ppm (Au) for Fire Assay and 0.01ppm Au for Aqua Regia. - There is no information available for the laboratory to which Triad had submitted geochemical samples. No laboratory assay reports are available, however lower detection limit are reported to be 0.01ppm for gold. - There is no information available for the laboratory to which samples collected by Western Gulf (WGOM) were submitted. No laboratory certificates or technical reports are available, with the source of the assay data being geological logging sheets from the respective drillholes. No information is recorded as to the method of analysis or further definition of results. The lowest detection limit recorded by WGOM is 0.01ppm Au. Alldrilling assaysreported are therefore takento beindicative only of remainingmineralpotential intheProject area.

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	Due to the historic nature of the logging data and gold grades included in this report, it is not possible to comment on the specific accuracy or quality of any analytical or calibration methods used to produce the historical results from drilling. However, based on the above listed information, the Competent Person is satisfied that the reported geochemical assays are of sufficient quality to provide a reasonable,indicativebasis for the existence of potentially economic mineralisation within the specified target areas.
Verification of sampling and assaying	Due to the historic nature of the sampling, the nuggety, narrow-vein style of mineralisation and consequent gold grade data included in this report, it is not possible to comment on the accuracy or quality of the assays from historical drilling. However, it is part of the Company’s overall work program to attempt to verify significant intersections and validate historical assay accuracy by the forthcoming drilling programs and resampling any, and all, existing historical drill core that may be found during the exploration activities about to be undertaken.
Location of data points	Due to the historic nature of the drilling data included in this report, it is not possible to comment on the accuracy of the initial positioning and subsequent surveying used to locate the historical drilling. 3D modelling work completed thus far has involved digitisation of historic maps, plans and sections from which the collar locations have been established and converted from either original local grids or Australian Geodetic Datum 66 (AGD66) to the current Geodetic Datum of Australia (GDA94), zone 55. Underground survey points collected historically were used to digitise scanned maps (originally hand-drawn) of historically excavated rises and drives. Sample locations and widths were subsequently picked from these original historical hand-drawn maps. To date, collar locations for the various drillholes have not been validated during field site visits, so the information remains indicative only. However, Cauldron Energy plans to validate these historical drill collars wherever and whenever possible during its exploration programs in the forthcoming months. Until then, based on the historical information compiled to date, the Competent Person is satisfied that the location data from drilling undertaken in the same historical generations is of sufficient accuracy to provide reasonable,indicativebasis for the existence of potentially economic mineralisation within the specified target areas. LiDAR data recently acquired in December 2021 were purchased through Melbourne-based company Spatial Vision (https://spatialvision.com.au/company/). These data were selectively chosen from the Greater Melbourne LiDAR Project of Nov 2017 – Oct 2018 as flown by the Department of Environment, Land and Water Planning (DELWP, Victoria). Specifications for the survey were as follows: - horizontal accuracy of 0.2m. - vertical accuracy of 0.1m. - average point density of 8 points per square metre. - resolution of 1m. - contour interval 0.5m–horizontal contours=0.2m, vertical contours=0.25m.
Data spacing	The spacing and distribution of various data are dependent on the historical identification of reef structures and systems. Historical underground face/channel samples were collected on 1 – 3 metres spacings.
and distribution	Where historical information is available, drill samples were collected on 1 metre intervals and constrained by geological boundaries.
Orientation of data in relation to geological structure	Historical channel samples were collected across the strike of reef structures and therefore are considered to be close to true widths. Historical drilling was undertaken on a variety of orientations, depending on the orientation of the targeted reef structures. Azimuths were variable between 60 and 290 degrees from north. Hole inclinations were also variable between 50 and 80 degrees from horizontal.
Sample security	Due to the historic nature of the geological and geochemical information contained herein, it is not always possible to comment on the sample security methods employed for the data used toproduce the results described in this report.

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All hard copy reports, maps, plans, and cross sections are currently housed at the Company’s office on site, with the process under way to scan and digitise all information on to Cauldron’s digital server. The physical office is locked and secured while not in use. Digital data is also stored online and transferred via Dropbox and Microsoft Teams, through secured channels. Access to these online, cloud-based, server systems is only possible by invitation and email. Data stored on these cloud-based servers are also backed up on a physical, hardware, server located in the Company’s head office in Perth, Western Australia, with backups taken regularly. As these data are from areas that are in a purely exploratory stage of operation, the Competent Person has considered that any issues potentially relating to sample security do not present a material risk at this current stage of evaluation.

Audits or reviews

All information and data used in this report have been reviewed by the Cauldron Energy Competent Person. Two data reviews were conducted by independent geological consultancy services in 2019 and 2020 (Exploration Management Services and ExAct Geoscience, respectively). Data quality, desktop reviews and some basic field validations were undertaken during these periods, with mineral resource estimates (not compliant with JORC 2012) completed forindicativepurposes only. Reports from these respective consultants have been reviewed by Cauldron’s Competent Person and are considered to be of sufficient quality and accuracy to provide a reasonable, ifindicativeonly, basis for the mineralisation reported herein. Due to the historic nature of these results, and the inability to further acquire additional data caused by various statutory restrictions, no further reviews or audits have been undertaken.

JORC Table 1: Section 2 Reporting of Exploration Results

Criteria of JORC Code 2012	Reference to the Current Report
	Comments / Findings
Mineral tenement and land tenure status	The Blackwood Gold Project comprises one Exploration Licence (EL) 5479 and is subject to a Joint Venture Agreement between Cauldron Energy Ltd (51%) and Blackwood Gold Mines Pty Ltd (49%).
Exploration done by other parties	The Blackwood Gold Project and surrounding areas have been systematically explored, drilled and mined since the 1850s. Modern drilling and mining activities recommenced in the local area in the early 1970s. Modern exploration, drilling and small-scale mining activities have been undertaken since 1981, commencing with Endeavour Resources NL undertaking a surface geological mapping program. The following drilling and sampling programs have been completed historically: - 1981 – Carpentaria Exploration Company Pty Ltd (CEC): 6 holes for a total 1,056.1 metres (DD), and 34 samples collected. - 1981 – 1982 – Endeavour Resources NL: 11 holes for a total 2,104.62 metres (DD), and 201 samples collected. - 1986 – 1987 – Western Gulf Oil and Mining Ltd: 9 holes for a total 1,613.4 metres (DD). The number of samples collected is unknown. - 1986 – 1989 – Triad Minerals NL: 9 holes for a total 255 metres (RC), and 255 samples collected. - 1988 – 1989 – Dome Resources NL: 26 holes for a total 1,009 metres (RC), and 998 samples collected. - 1989 – NORD Resources (Pacific) Pty Ltd: 12 holes for a total 771 metres (RC), and 387 samples collected. In 1997, New Holland Mining NL undertook a relogging and resampling exercise to test for lower-grade gold mineralisation in areas previously untested by Endeavour Resources. This program involved the collection of 267 samples.
Geology	Gold mineralisation at Blackwood is hosted within - quartz-rich reef systems and laminated quartz veins in north-south trending, westerly-dipping, folded, turbidite sequences of Ordovician-aged sediments.

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	- Mineralised structures typically, also, have a north-south strike orientation and a generally easterly dip, being either parallel or oblique to bedding. - Reef development appears to have occurred by intersection of high-angle faults sub-parallel to the fold axes. - Younger, oblique faulting and low-angle reverse fault structures seem to crosscut, offset and terminate mineralised structures. - Expansion of reef widths and enrichment of existing gold mineralisation occurs within southerly plunging ore “shoots.”
Drill hole Information	Detailed drill logs, downhole surveys and coordinates in the form of local grids are available. However, no records have yet been found relatingto drillingrates, rigdesigns,pre-collar depths etc.
Data aggregation methods	Drilling data have been averaged over mineralised reef widths rather than the pre-selection of high-grade zones within those mineralised intervals. No data aggregation methods or high-grade topcuts have been applied.
Relationship between mineralisation widths and intercept lengths	The geometry of the mineralisation in the reef and structure systems relative to the various channel and drilling samples collected has been established. Only mineralisation widths greater than 1m or 1 gram per tonne Au have been tabulated.
Diagrams	Appropriate and relevant diagrams have been included in the body of this announcement.
Balanced reporting	Balanced reportinghas been adhered to. Seeprevious exploration announcements referred to in the bodyof this report.
Other substantive exploration data	Based on the known fact that historical miners could not mine below the water table at the time (due to the lack of pumping technologies and funding), gold mineralisation of significant economic grade and tenor is still considered to be open down-plunge and dip to the various reefs referred to herein.
Further work	Exploration for the remainder of 2021/2022 field season involves recommencement of the planned drilling referred to in this, and previous, reports in order to validate historically high-grade gold mineralisation within the Annie Laurie Reef. The secondary objective for this drilling is to determine an indication of the remaining mineral potential contained within the reef system. Results will be released accordinglyand will decide the design of additional exploration work.

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