Celsius Resources Limited — Interim / Quarterly Report 2020

Apr 29, 2020

ASX RELEASEASX RELEASE | 16 February 2017 | 30 April 2020

QUARTERLY ACTIVITIES REPORT

MARCH 2020

Summary

During the Quarter, the Company continued work programs which keep the Opuwo Project in good standing in terms of in country expenditure and reporting including Corporate Social Responsibility (CSR) programs, government consultation regarding the current status of the Project and limited on ground activities assessing targets generated from data review and collecting baseline environmental data.

In addition the Company continued reviewing potential acquisitions and investments in commodities which complement or diversify the Company's current commodity exposure. Specifically, the Company has reviewed projects in commodities including nickel, copper-gold, copper, cobalt, manganese, gold, uranium, high-purity alumina (HPA). As at today’s date a transaction is yet to be completed, although detailed due diligence and ASX engagement has been completed on a number of opportunities.

At the end of the Quarter, the Company held approximately $5.9 million in cash.

Opuwo Cobalt Project, Namibia (CLA 95%)

OPUWO COBALT PROJECT

During the Quarter HiSeis Pty Ltd completed field trials at the Opuwo Cobalt Project including over 600 measurements of specific gravity and sonic velocity on existing drill core samples and reconnaissance of the project area. Initial findings indicate potential for hard rock seismic to assist in exploration for feeder zones and other structures at depth as well as mapping the DOF stratigraphy between and below existing drilling. Further interpretation of the data collected will be completed during the forthcoming quarter.

METALLURGICAL FLOWSHEET REVIEW AND OPTIMISATION

During the Quarter, the independent external review on metallurgical testwork and process design commenced. The initial phase is anticipated to be completed during the forthcoming quarter at which point results will be reported.

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Level 2, 22 Mount Street, P: +61 8 6188 8181
Perth WA 6000 F: +61 8 6188 8182
PO Box 7054, Cloisters Square, info@celsiusresources.com.au
Perth WA 6850 www.celsiusresources.com.au
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PRE FEASIBILITY STUDY ACTIVITIES

Baseline environmental monitoring continued at the Opuwo Cobalt Project during the Quarter. The Company is awaiting feedback from the Ministry of Environment and Tourism on the EIA Scoping Report submitted (along with any public submissions). Once the Scoping Report is approved specialist environmental and social studies would be able to commence, readying the Project to ramp up the PFS to meet forthcoming demand for cobalt.

Abednegno Hill Project, WA (CLA 100%)

The Abednegno Hill Nickel Project is located to the south and west of Minara Resources’ Murrin Murrin nickel mine.

As reported in the previous Quarterly Activities Reports, Celsius completed a ground EM survey over its Leonora tenements during October – November 2017 which detected two bedrock anomalies. Given the recent improvement in the nickel price and forward forecasts, the Company is evaluating opportunities to unlock value from the Abednegno Hill Project, either by implementation of exploration programs, and/or seeking JV opportunities to advance the Project.

Carnilya Hill Project, WA (CLA 30%)

Celsius (through View Nickel Pty Ltd) owns a 30% joint venture interest in the Carnilya Hill Joint Venture in Western Australia with Mincor Resources NL. Mincor Resources NL (ASX:MCR) is the operator of the Carnilya Hill JV. No activity was reported by Mincor during the quarter.

Hann River Project, WA (E80/5117 CLA 100%, base metal rights on E80/5027)

Celsius has an Exploration Licence Application pending (E80/5117) over an area located in the Kimberley region of Western Australia, approximately 300 km east of Derby. The application area is considered prospective for copper and cobalt mineralisation, hosted in the Mt Carson Volcanics geological unit. An agreement is in place with Jindalee Resources Limited (ASX:JRL) regarding their adjacent granted Exploration Licence (E80/5027), whereby the diamond rights on CLA’s licence application area have been exchanged for the base metal rights on E80/5027. The Company is currently negotiating access agreements with the Pastoral Lease holder of part of the land that covers the exploration licence application.

Corporate and Expenditure

At the end of the Quarter, the Company held approximately $5.9 million in cash reserves, with ongoing costs continuing to be reduced during the Quarter.

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During the Quarter the Company’s expenditure was primarily on activities related to the exploration and development of the Opuwo Cobalt Project (approximately $130,000) and are detailed in the Cashflow Report (5B) appended to this report. The costs included under “Corporate” include payment of costs relating to the Company’s 249D process and costs associated with due diligence into new project opportunities.

Payments were made to related parties for directors’ fees as listed in section 6 of the Cashflow Report.

This announcement has been authorised by the Board of Celsius Resources Ltd.

Celsius Resources Contact Information

Melanie Ross – Company Secretary Level 2, 22 Mount Street 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 a Non-Executive 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.

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Tenement Table: ASX Listing Rule 5.3.3

Mining tenement interests held at the end of the quarter and their location

PERMIT NAME	PERMIT NUMBER	REGISTERED HOLDER / APPLICANT	PERMIT STATUS	INTEREST / CONTRACTUAL RIGHT
Western Australia
Carnilya Hill	M26/47	View Nickel Pty Ltd	Granted	30%
Carnilya Hill	M26/48	View Nickel Pty Ltd	Granted	30%
Carnilya Hill	M26/49	View Nickel Pty Ltd	Granted	30%
Carnilya Hill	M26/453	View Nickel Pty Ltd	Granted	30%
Carnilya Hill	L26/241	View Nickel Pty Ltd	Granted	30%
Abednegno Hill	E39/1684	View Nickel Pty Ltd	Granted	100%
Namibia
	EL 4346	Gecko Cobalt Holdings	Granted	95%
	EL 4351	Gecko Cobalt Holdings	Granted	95%
	EL 4351	Gecko Cobalt Holdings	Granted	95%

The mining tenement interests relinquished during the quarter and their location

Nil.

The mining tenement interests acquired during the quarter and their location

Nil.

Beneficial percentage interests held in farm-in or farm-out agreements at the end of the quarter

Not applicable.

Beneficial percentage interests in farm-in or farm-out agreements acquired or disposed of during the quarter

Nil.

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