CENTAURUS METALS LIMITED — Capital/Financing Update 2018

Sep 9, 2018

AUSTRALIAN SECURITIES EXCHANGE ANNOUNCEMENT & MEDIA RELEASE

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10 September 2018

DRILLING COMMENCES AT PEBAS COPPER‐GOLD PROJECT, BRAZIL
Highlights:
 Maiden 2,000m RC drilling program underway at the Pebas Copper‐Gold Project.
 The fault‐related copper‐gold targets at Pebas are analogous to the high‐grade Antas Norte Copper‐
Gold Mine operated by Oz Minerals, located just 25km to the south.
 The main targets at the Pebas Copper‐Gold Project include:
o The Tucunaré Target – a +1.5km long copper‐in‐soils (+1,000ppm Cu) anomaly coincident
with a discrete magnetic anomaly that has returned rock chip results of up to 27.6% copper,
4.6g/t gold and 0.75% cobalt;
o The Surubim Target – a 400m long and up to 500m wide soil anomaly with sample grades of
over 1,000ppm copper. The Surubim anomaly is coincident with a magnetic low set inside a
broader magnetic high; and
o The Filhote Target – an 800m long, +500ppm copper anomaly coincident with a magnetic
signature and interpreted structural zone.
 All drill holes will be prepared for down‐hole EM surveying.
Centaurus Metals (ASX Code: CTM) is pleased to announce that it has commenced its maiden drilling program at
its 100%‐owned Pebas Copper‐Gold Project, located in the world‐classCarajás Mineral Provincein northern
Brazil. The 2,000m program will test multiple copper‐gold targets.
The Pebas Project contains four quality targets set within the highly prospective Itacaiúnas Supergroup, which
hosts all IOCG deposits within the Carajás Mineral Province. Historical diamond drilling carried out by a TSX‐listed
explorer in 2010 returned broad zones of lower grade mineralisation (146.9m at 0.21% Cu and 0.08 g/t Au from
surface). Within these zones there are localised high‐grade intersections of up to 3.74% Cu and 0.47 g/t gold.
Drilling will focus on high‐grade fault‐related IOCG targets at Pebas that are analogous to the Antas Norte Copper‐
Gold Mine, located 25km to the south and operated by ASX 100 Company, Oz Minerals Ltd. The geological and
structural settings are similar and the copper‐in‐soils anomalies at the Tucunaré and Surubim Targets are of the
same magnitude (+1,000 ppm Cu) as the original Antas Norte geochemical anomalies.
The high‐grade copper mineralisation at the Antas Norte mine is roughly 60m thick, has a strike of 700m and sub‐
vertical dip and is one of the highest‐grade copper mines in the world with a reserve grade of 2.4% Cu1.
1Refer to Oz Minerals presentation “OZ Minerals takeover offer for Avanco Resources” dated 27 March 2018 at www.ozminerals.com
Australian Office Brazilian Office ASX: CTM
Centaurus Metals Limited Centaurus Brasil Mineração Ltda ACN 009 468 099
Level 3, 10 Outram St Avenida Barão Homem de Melo, 4391 office@centaurus.com.au
WEST PERTH WA 6005 Salas 606 e 607 ‐ Estoril Telephone: +61 8 6424 8420
Belo Horizonte ‐ MG ‐ CEP: 30.494.275
BRAZIL

AUSTRALIAN SECURITIES EXCHANGE ANNOUNCEMENT & MEDIA RELEASE

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The Company plans to test multiple high‐grade fault‐related IOCG targets at Pebas that were not tested by previous drilling. The program will initially cover three of the four high priority targets (Tucunaré, Surubim and Filhote, see Figure 1).

Figure 1 – The Pebas Cu‐Au Project – Target Locations

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Tucunaré Target

The +1.5km long Cu‐Au‐Co‐P soil anomaly at the Tucunaré Target is coincident with a 1.5km long discrete magnetic signature (Figure 1) that is distinct from the regional anomalies that are associated with the iron formations of the Itacaiúnas Supergroup. Historical rock chips from the Tucunaré Target have returned assay results of up 27.6% copper, 4.6g/t gold and 0.75% cobalt.

TSX‐listed explorer INV Metals Inc. (INV) completed nine reconnaissance diamond holes over the Tucunaré Target in 2010. Highlights of the historical results include the following continuous intersections (see attached Table 1 for a full list of the drill results historically released by INV).

• 146.9m at 0.21% Cu and 0.08g/t Au in drill hole PRN‐DD‐37 from surface, including

• 2.1m at 0.96% Cu from 53.7m,

• 1.0m at 1.73% Cu from 91.6m; and

• 2.3m at 1.15% Cu from 115.9m.

• 105.0m at 0.23% Cu in drill hole PRN‐DD‐36 from surface, including o 31.3m at 0.33% Cu from 18.2m.

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Copper mineralisation appears to be controlled by an east‐west trending fault along the northern limit of the Tucunaré Target. The Company’s interpretation of the drilling – which has been further supported by detailed mapping and soil geochemistry – indicates that the mineralisation appears to be thinning and becomes of lower grade with increasing distance from the fault contact.

Figure 2 – The Pebas Copper‐Gold Project – Drill Section (from INV NI 43‐101 Technical Report of March 2012). Section location can be seen on Figure 1 (the N‐S section)

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As the section shows, there is a distance of more than 300m between holes PRN‐DD‐36 and 40. The faulted contact between the siliceous quartzite (North) and the highly altered mafic schists (South) remains untested. This fault may have served as a feeder structure for the mineralising fluids and is the initial key exploration target at the Tucunaré Target.

Surubim Target

The Surubim Target is located 2.5km to the north‐east of the Tucunaré Target. The Surubim Target is around 400m long and up to 500m wide with consistent soil sample grades of over 1,000 ppm copper. This anomaly is coincident with a magnetic low set inside a broader magnetic high – an important geophysical feature which may represent sulfidation of iron oxides.

Recently completed detailed mapping has identified a cupriferous gossan that sits within the interpreted NE‐ SW fault zone. This fault zone represents the north‐western limit of the +1,000ppm copper‐in‐soils anomaly (see Figure 1).

There has been no historical drilling on the Surubim Target. The Company has planned a number of drill holes to test the gossan at depth.

AUSTRALIAN SECURITIES EXCHANGE ANNOUNCEMENT & MEDIA RELEASE

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Filhote Target

The Filhote Target zone consists of an 800m long, +500 ppm copper anomaly coincident with a magnetic signature and interpreted structural zone. There has been no historical drilling on the Filhote Target. The Company has planned a number of drill holes to test the copper‐in‐soils anomaly.

Figure 3 – RC rig drilling at drill hole PBS‐RC‐18‐001

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‐ENDS‐

Released by: Nicholas Read Read Corporate M: +61 419 929 046

On behalf of: Darren Gordon Managing Director Centaurus Metals Limited T: +618 6424 8420

Competent Person Statement

The information in this report that relates to Exploration Results and Exploration Targets is based on information compiled by Roger Fitzhardinge who is a Member of the Australasian Institute of Mining and Metallurgy. Roger Fitzhardinge is a permanent employee of Centaurus Metals Limited. Roger Fitzhardinge 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 in the 2012 Edition of the ‘Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves’. Roger Fitzhardinge consents to the inclusion in the report of the matters based on his information in the form and context in which it appears.

Exploration Target

This report comments on and discusses Centaurus Metals Limited’s exploration in terms of target size and type. The information relating to Exploration Targets should not be misunderstood or misconstrued as an estimate of Mineral Resources or Ore Reserves. The potential quantity and quality of material discussed as Exploration Targets is conceptual in nature since there has been insufficient work completed to define them as Mineral Resources or Ore Reserves. It is uncertain if further exploration work will result in the determination of a Mineral Resource or Ore Reserve.

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Table 1 – INV Drill Results for the Pebas Copper‐Gold Project Area (source INV NI 43‐101 Technical Report dated March 2012)

Hole	East	North	Dip	Azimuth	EOH	To	From	Interval(m)	Cu %	Auppm
PRN‐DD‐35	627143	9332062	‐50	360	210	0	22.5	22.5	0.15
PRN‐DD‐36	627121	9332182	‐50	360	300.1	0	105	105.0	0.23
including						18.2	49.5	31.3	0.33
PRN‐DD‐37	627348	9332157	‐50	360	209	0	146.9	146.9	0.21	0.08
including						53.7	55.8	2.1	0.96
and						91.6	92.6	1.0	1.73
and						112.5	120.4	7.9	0.56
including						115.9	118.2	2.3	1.15
PRN‐DD‐38	627358	9332079	‐50	360	191	102	118.8	16.8	0.18
including						113.4	118.8	5.4	0.38
PRN‐DD‐39	627500	93332000	‐50	360	219	0	29.5	29.5	0.19
						79.7	80.8	1.1	0.89
						187.1	188.6	1.5	0.94
PRN‐DD‐40	627088	9332505	‐50	360	277.1	115	120	5.0	0.39
including						119	120	1.0	1.12	0.12
						174.1	208.9	34.8	0.19
PRN‐DD‐41	628072	9331966	‐55	320	200.2	45.4	49.7	4.3	0.38
including						47.2	48.4	1.2	0.84	0.21
						59.2	60	0.8		2.50
						159.7	178	18.3	0.16
PRN‐DD‐42	628097	9332210	‐50	360	193.9	41.1	95	53.9	0.10
PRN‐DD‐43	628915	9331967	‐50	360	221	39.9	40.4	0.5	3.74	0.47
						111.2	144	32.8	0.10

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APPENDIX A – TECHNICAL DETAILS OF THE PEBAS COPPER‐GOLD PROJECT, JORC CODE, 2012 EDITION – TABLE 1 SECTION 1 SAMPLING TECHNIQUES AND DATA

Criteria			Commentary
Sampling techniques			 Soil samples were collected at 50m intervals along 100, 200 or 400m spaced grid lines along
			the strike of the project. Surface material was first removed and sample holes were dug to
			roughly 30cm depth. A 2‐3kg sample was taken from the subsoil. The sample was placed in
			a plastic sample bag with a sample tag before being sent to the lab.
			 Roughly 350 historical samples were collected by INV and Teck.
			 Surface rock chip/soil samples were collected from in situ outcrops and rolled boulders for
			chemical analysis.
Drilling techniques			 Historical drilling was carried out by Geoserv Pesquisas Geologicas, using a hydraulic
			diamond rig,drillingNQand HQcore.
Drill sample	recovery		 Information on sample recovery of historical drilling has not been identified; the Company is
			endeavouringto access the complete database.
Logging			 All outcrop and soil sample points were registered and logged in the Centaurus geological
			mapping points database;
			 Information on drill hole logging of historical drilling has not been identified; the Company is
			endeavouringto access the complete database.
Sub‐sampling			 All geological samples were received and prepared by SGS Geosol Laboratories in
techniques and sample			Parauapebas, Brazil as 0.5‐5kg samples. They were dried at 105°C until the sample was
preparation			completely dry (6‐12hrs), crushed to 90% passing 3mm and reduced to 200‐300g. The
			samples were pulverised to 95% passing 150µm and split further to 50g aliquots for
			chemical analysis.
			 Information on sample techniques of historical rock chip and soil sampling has not been
			identified; the Company is endeavouring to access the complete database.
			 Information on historical drill hole sampling designates that the diamond core (HQ) was cut
			using a core saw where compact and half core was sampled. Samples were collected
			representingat least 0.5m and a maximum of 2.0m
Quality of assay data			 Drill core samples were prepared and analysed at SGS Geosol Laboratories. Preparation of
and laboratory tests			the sample consisted of drying, crushing to 2 mm and pulverising to 300gm using a carbon
			steel mill until 95% of sample passes ‐150 mesh. The pulverised sample was then split to 50
			grams.
			 Chemical analysis for drill core, soil and stream sediment samples was completed for gold
			by fire assay and ICP for limit of 0.001ppm as well as multi element using ICP.
			 Chemical analysis for metal oxides is determined using XRF analysis (XRF79C). Fusion disks
			are made with pulped sample and the addition of a borate based flux. Analysis at ALS is for
			a 10 element suite. FeO is determined using titration and LOI using loss determination by
			thermo‐gravimetric analysis at 1000°C.
			 SGS Geosol Laboratories insert their own standards at set frequencies and monitor the
			precision of the XRF analysis. These results reported well within the specified 2 standard
			deviations of the mean grades for the main elements. Additionally the labs perform repeat
			analyses of sample pulps at a rate of 1:20 (5% of all samples). These compare very closely
			with the original analysis for all elements.
			 INV inserted standard samples every 20 samples (representing 5%). Results of the QAQC
			data are not known.
			 Laboratory procedures are in line with industrystandards.
Verification		of	 All recent samples were collected by Centaurus field geologists. All assay results were
sampling and assaying			verified by alternative Company personnel and the Competent Person before release.
			 All historical samples were collected by INV and Teck field geologists. All assay results were
			verified and reported by INV’s Qualified Person.
			 The Companydoes not have access to the database.
Location	of	data	 The survey grid system used is SAD‐69 22S. This is in line with Brazilian Mines Department
points			requirements. All sample and mapping points were collected using a Garmin hand held GPS.

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Data spacing	and	 Soil samples were collected on 50m spacing on section with distance between sections of
distribution		100m, 200m and 400m depending on location.
		 Sample spacing was deemed appropriate for geochemical studies but should not be
		considered for Mineral Resource estimations.
		 Drill holes reported in this announcement were surveyed using hand held GPS.
		 No sample compositinghas been applied.
Orientation of data in		 The extent and orientation of the mineralisation was interpreted based on field mapping.
relation to geological		Sample orientation is perpendicular to the main geological features sequence along which
structure		mineralisation exists.
Sample security		 All samples were placed in pre‐numbered plastic sample bags and then a sample ticket is
		placed within the bag as a check. Bags are sealed and placed in larger bags (10 samples per
		bag) and then transported by courier to the SGS Geosol laboratories in Parauapebas, PA.
		Sample request forms are sent with the samples and via email to the labs. Samples are
		checked at the lab and a work order is generated by the lab which is checked against the
		sample request.
		 All historical samples were placed in pre‐numbered plastic sample bags and then a sample
		ticket was placed within the bag as a check. Bags were sealed and then transported by
		courier to the SGS Geosol laboratories in Parauapebas,PA.
Audits or reviews		 The Company is not aware of any audit or review that has been conducted on the project to
		date.

SECTION 2 REPORTING OF EXPLORATION RESULTS

Criteria			Commentary
Mineral tenement and			 The Pebas project includes one exploration licence (850.133/2013) for a total of circa
land tenure	status		25km2. Granted Exploration Licences have three years of exploration rights that may be
			extended for a further three years.
			 The tenement was part of an earn‐in agreement with Terrativa Minerais SA. Centaurus
			met the minimum earn in obligations under the Agreement and perfected 100% title to
			the Pebas tenement in mid‐2017. Terrativa retain a production royalty of 2% over any
			minerals extracted from the tenement. The royalty may be converted to a 25% project
			interest should it be sold to a third party.
			 All mining projects in Brazil are subject to a CFEM royalty, a government royalty of 2% on
			copper and gold revenue.
			 Landowner royalty is 50% of the CFEM royalty.
			 The project is covered by a mix of cleared farm land and natural vegetation. The project is
			not located within any environmental protection zones and exploration and mining is
			permitted with appropriate environmental licences.
Exploration	done	by	 Historically the Pebas tenement area was explored for copper‐gold by INV and Teck.
other parties			Centaurus has retrieved all data that was made public as NI 43‐101 reports from the Sedar
			website. Centaurus will continue to tryto obtain the original data from these companies.
Geology			 The Pebas Cu‐Au Project is hosted within a slither of the Itacaiúnas Supergroup, host to all
			IOCG deposits within the Carajás, wedged between two regionally important intrusions.
			 The 2km long +500ppm copper in soils anomaly is roughly coincident with a 1km long
			discrete magnetic anomaly.
			 Mapping and integration of drill results shows that the copper mineralisation occurs as
			veins and disseminations of chalcopyrite within strongly altered garnet‐chlorite‐magnetite
			schists, interpreted to be originally metasediments. These rocks are in faulted contact
			with a highly siliceous quartzite, which also contains disseminations and stringers of
			chalcopyrite, pyrite and locallyarsenopyrite.
Drill hole Information			 Refer to Figures 1‐2 and Table 1.
Data	aggregation		 No cut‐offs have been applied in reporting of the exploration results.
methods			 No aggregate intercepts have been applied in reporting of the exploration results.

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Criteria			Commentary
Relationship		between	 The results reported in this announcement reflect individual down hole sample intervals
mineralisation		widths	and no mineralised widths were assumed or stated.
and intercept lengths
Diagrams			 Refer to Figures 1‐2
Balanced reporting			 All exploration results received by the Company to date are included in this report or can
			be referenced toprevious ASX/TSX releases.
Other	substantive		 The Company is not aware of any additional exploration data.
exploration data
Further work
			 The Company is undertaking a 2,000m RC drill program.
			 Drill holes are being cased to allow for down‐hole EM.