Celsius Resources Limited — Capital/Financing Update 2018

Jul 18, 2018

ASX RELEASEASX RELEASE | 16 February 2017 | 19 July 2018

AIRBORNE EM SURVEY COMMENCES AT OPUWO

HIGHLIGHTS

• Electromagnetic (EM) survey using the SkyTEM system is underway.

• Approximately 650 line kilometres completed (out of a planned 6,090 km) on the Celsius Opuwo Cobalt Project.

• Final interpreted results and data products expected in September/October, 2018.

Celsius Resources Limited (“Celsius” or “the Company”) is pleased to provide an update on the previously announced electromagnetic survey at its 95% owned Opuwo Cobalt Project (“Project”) in Namibia.

As previously announced, the Company has appointed SkyTEM Surveys ApS to fly a helicopter-borne electromagnetic and magnetic geophysical survey over three key licences that comprise the Opuwo Cobalt Project (Figure 1). The objectives of the survey are:

• 1. To assist in geological mapping of near surface conductive sedimentary horizons, which is expected to include the Dolomite Ore Formation (DOF);
• 1. To delineate discrete conductive zones along the sedimentary horizons; and
• 1. To detect deeper discrete conductive bodies that may be related to deeper stockwork or semimassive/massive sulphide mineralisation in feeder zones.

The survey has commenced on the neighboring project held by Namibia Critical Metals (NMI:CVE), and is flying parts of the Celsius Project area during this time, to maximize operational efficiency. As of July 19, approximately 650 line km out of a planned 6,090 line km has been completed on the Celsius licences.

Celsius has agreed to share data with Namibia Critical Metals to allow an integrated regional interpretation of the results to be undertaken. Final interpreted results and data products are expected from the survey in September/October, 2018.

Celsius Managing Director, Brendan Borg commented:

“The commencement of the airborne EM survey is an exciting milestone for exploration in the Opuwo region, which will assist in understanding the potential still to be uncovered at the Project. This is the first time a geophysical survey of this nature has been conducted in the region, and we look forward to further investigating targets that may be generated as the survey progresses.”

==> picture [560 x 64] intentionally omitted <==

----- Start of picture text ----- Level 3, 216 St Georges Terrace, P: +61 8 6188 8181Perth WA 6000 F: +61 8 6188 8182PO Box 7054, Cloisters Square, info@celsiusresources.com.auPerth WA 6850 www.celsiusresources.com.au----- End of picture text -----

==> picture [576 x 107] intentionally omitted <==

Figure 1: SkyTEM Survey Extents

==> picture [439 x 302] intentionally omitted <==

Figure 2: SkyTEM system taking off from Opuwo

==> picture [213 x 298] intentionally omitted <==

ASX RELEASE | PAGE 2

==> picture [576 x 107] intentionally omitted <==

About the Opuwo Cobalt Project

Celsius is aiming to define a long life, reliable source of cobalt at Opuwo. The Company considers the Project to have the following advantages:

• Large scale.

• Favourable mineralogy: cobalt and copper sulphide minerals.

• Low in deleterious elements: notably arsenic, cadmium and uranium.

• Mining friendly, politically stable and safe location with excellent infrastructure.

• Cobalt: best exposure to lithium ion battery boom.

The Opuwo Cobalt Project is located in northwestern Namibia, approximately 800 km by road from the capital, Windhoek, and approximately 750 km from the port at Walvis Bay (Figure 3). The Project has excellent infrastructure, with the regional capital of Opuwo approximately 30 km to the south, where services such as accommodation, fuel, supplies, and an airport and hospital are available. Good quality bitumen roads connect Opuwo to Windhoek and Walvis Bay. The Ruacana hydro power station (320 MW), which supplies a majority of Namibia’s power, is located nearby, and a 66 kV transmission line passes through the eastern boundary of the Project. The Opuwo Project consists of four Exclusive Prospecting Licences covering approximately 1,470 km[2] .

A maiden JORC Compliant Indicated and Inferred Mineral Resource was announced on 16 April, 2018, comprising 112.4 million tonnes, grading 0.11% cobalt, 0.41% copper and 0.43% zinc, at a cut-off grade of 0.06% cobalt. (Please refer to ASX announcement of 16 April, 2018 for more details on the Mineral Resource.)

Figure 3: Location of the Opuwo Cobalt Project, Namibia

==> picture [225 x 304] intentionally omitted <==

ASX RELEASE | PAGE 3

==> picture [576 x 107] intentionally omitted <==

Celsius Resources Contact Information

Level 3, 216 St Georges Terrace Perth WA 6000 PO Box 7054 Cloisters Square Perth WA 6850 P: +61 8 6188 8181 F: +61 8 6188 8182 E: info@celsiusresources.com.au www.celsiusresources.com.au

Competent Persons Statement

Information in this report relating to Exploration Results is based on information reviewed by Mr. Brendan Borg, who is a Member of the Australasian Institute of Mining and Metallurgy and Managing Director of Celsius Resources. Mr. Borg has sufficient experience which is relevant to the style of mineralisation and type of deposit under consideration and to the activity which he is undertaking to qualify as a Competent Person as defined by the 2012 Edition of the Australasian Code for reporting of Exploration Results, Mineral Resources and Ore Reserves. Mr. Borg consents to the inclusion of the data in the form and context in which it appears.

ASX RELEASE | PAGE 4