CENTAURUS METALS LIMITED — Capital/Financing Update 2018

Mar 26, 2018

AUSTRALIAN SECURITIES EXCHANGE ANNOUNCEMENT & MEDIA RELEASE

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27 March 2018

MORE HIGH‐GRADE NICKEL‐COBALT ASSAY RESULTS FROM ITAPITANGA

Results extend mineralisation to 3.3km long by up to 500m wide and remains open at depth and along strike; 5,000m RC program to start in coming weeks

• Further outstanding high‐grade nickel‐cobalt intersections achieved from first pass hand‐held auger drilling over an extensive area at the Itapitanga Nickel‐Cobalt Project in the Carajás Mineral Province of northern Brazil.

• Results received to‐date include (all intersections are continuous from surface to the end of hole and remain open at depth and along strike):

• 6.5m @ 0.94% nickel and 0.20% cobalt

• 8.0m @ 0.59% nickel and 0.16% cobalt

• 12.0m @ 0.93% nickel and 0.13% cobalt

• 10.1m @ 1.03% nickel and 0.12% cobalt

• 10.0m @ 1.07% nickel and 0.12% cobalt

• 8.0m @ 0.80% nickel and 0.12% cobalt

• 6.0m @ 1.04% nickel and 0.11% cobalt

• 8.7m @ 1.21% nickel and 0.10% cobalt

• 29 of the first 33 auger holes finished in nickel‐cobalt mineralisation.

• The handheld auger can only test the top few metres of the nickel‐cobalt mineralisation, to a maximum depth of 12 metres, with most holes reaching maximum depth at 5‐8 metres below surface.

• A RC drilling rig is being mobilised to site to commence the initial 5,000m drill program in mid‐April

• The neighbouring Jacaré deposit, one of the highest grade large‐tonnage nickel‐cobalt projects in the world, is mineralised from surface down to an average depth of 50 metres. The Company’s upcoming RC drilling will test the depth of nickel‐cobalt mineralisation at Itapitanga.

• The auger has now moved to the Southern Target where 2km of untested prospective lithology will be tested with first pass shallow hand auger drilling.

Centaurus Metals (ASX Code: CTM) is pleased to announce that the auger drilling at the Itapitanga Nickel‐Cobalt Project in northern Brazil continues to produce outstanding near surface high‐grade nickel‐cobalt assay results.

New results include intersections of 12m @ 0.93% Ni and 0.13% Co and 6.5m @ 0.94% Ni and 0.20% Co with most holes starting and finishing in high‐grade mineralisation .

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 9420 4000 Belo Horizonte ‐ MG ‐ CEP: 30.494.275 BRAZIL

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The handheld auger holes have tested a strike length of approximately 3.3km of the Northern Target area where 29 of the first 33 holes finished in high‐grade nickel and cobalt mineralisation.

Auger holes are drilled to ‘drill‐refusal’ and the average holes depth for the first 33 holes of the program is 6.5m. The Northern Target area remains open to the south, south‐east, north‐west and at depth. Drilling of the Southern Target has recently commenced.

Highlights of the second batch of assay results include the following complete hole intersections (surface to end‐ of‐hole). All these intersections finished in mineralisation (see Figure 1 and attached Table 1 for a full list of auger assay results):

• 6.5m @ 0.94% nickel and 0.20% cobalt from surface in ITAP‐AG00018;

• 8.0m @ 0.59% nickel and 0.16% cobalt from surface in ITAP‐AG00031;

• 12.0m @ 0.91% nickel and 0.13% cobalt from surface in ITAP‐AG00033;

• 10.0m @ 1.07% nickel and 0.12% cobalt from surface in ITAP‐AG00032;

• 8.0m @ 0.80% nickel and 0.12% cobalt from surface in ITAP‐AG00015;

• 6.0m @ 0.91% nickel and 0.12% cobalt from surface in ITAP‐AG00026;

• 6.0m @ 1.04% nickel and 0.11% cobalt from surface in ITAP‐AG00027;

• 5.4m @ 1.09% nickel and 0.11% cobalt from surface in ITAP‐AG00011;

• 6.0m @ 0.54% nickel and 0.10% cobalt from surface in ITAP‐AG00024;

• 6.0m @ 0.91% nickel and 0.09% cobalt from surface in ITAP‐AG00013;

• 10.4m @ 1.14% nickel and 0.07% cobalt from surface in ITAP‐AG00022;

• 4.9m @ 1.51% nickel and 0.04% cobalt from surface in ITAP‐AG00030.

Highlights from the previously released results included:

• 10.1m @ 1.03% nickel and 0.12% cobalt from surface in ITAP‐AG00003;

• 8.7m @ 1.21% nickel and 0.10% cobalt from surface in ITAP‐AG00004;

• 11.5m @ 1.05% nickel and 0.08% cobalt from surface in ITAP‐AG00007.

The auger drilling at Itapitanga continues to demonstrate that the nickel‐cobalt laterite mineralisation occurs from surface, with high grades of both nickel and cobalt mineralisation intersected to depths of 12m prior to drill refusal occurring.

The Itapitanga Project is located in the Carajás Mineral Province, a tropical region that hosts deep weathering profiles generally to 50m and often up to 100m. The high‐grade nickel‐cobalt laterite mineralisation is hosted within this weathered profile.

Anglo American’s neighbouring world‐class Jacaré Ni‐Co Deposit, one of the highest large‐tonnage nickel‐cobalt grades in the world with Mineral Resource of 307Mt at 1.3% Ni and 0.13% Co, including a high‐grade cobalt resource of 185Mt at 1.2% Ni and 0.18% Co[1] , is hosted in a laterite profile that is mineralised from surface down to an average depth of 40‐50m.

RC drilling will now be done to determine the full width and grade of the nickel‐cobalt mineralisation at the Project. Accordingly, the Company has recently executed a 5,000m RC drill contract with specialist Brazilian RC drilling group, Geosenda Perfurações Especiais. The rig is now being mobilised and drilling is set to start mid‐April.

1 Resource data sourced from Anglo American Presentations “O Depósito de Níquel Laterítico do Jacaré (PA), Brasil” – Simexmin 2010 and Ore Reserves and Mineral Resources Report 2016

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Figure 1 – The Itapitanga Project: Auger drill locations with significant nickel and cobalt intersections over Magnetic Image (Analytic Signal); New results (white) and previously released results (grey).

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Management Comment

Centaurus’ Managing Director, Darren Gordon, said the latest results supported the Company’s view that Itapitanga is a highly promising nickel‐cobalt project with scale and grade.

“To have numerous continuous intersections of high grade nickel and cobalt from surface to the bottom of the auger hole is exceptional and the fact that 29 of these first 33 holes finished in mineralisation is highly encouraging,” Mr Gordon said.

“We have so far defined a strike length of 3.3km with widths of up to 500m at the Northern Target and have recently started auger drilling on the Southern Target.

AUSTRALIAN SECURITIES EXCHANGE ANNOUNCEMENT & MEDIA RELEASE

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“Mobilisation of a RC rig has commenced for the maiden RC drill program that is set to start in mid‐April. Given the mineralisation profile of the neighbouring Jacaré deposit, which hosts one of the highest large‐tonnage nickel‐ cobalt grades in the world, we’re confident that the RC drilling can extend the current mineralised intersections significantly.

“With the EV space driving the cobalt prices towards US$100,000/t along with a positive outlook for nickel we are looking forward to start delivering quality nickel and cobalt drill results from the RC drilling from early May.”

‐ENDS‐

Released by: On behalf of: Nicholas Read Darren Gordon Read Corporate Managing Director M: +61 419 929 046 Centaurus Metals Limited T: +618 9420 4000

Competent Person Statement

The information in this report that relates to Exploration Results 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.

AUSTRALIAN SECURITIES EXCHANGE ANNOUNCEMENT & MEDIA RELEASE

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The Itapitanga Nickel‐Cobalt Project

Centaurus’ Itapitanga Project is located to the south of Anglo American’s world‐class Jacaré Ni‐Co Project (Figure 2), which has a global Mineral Resource of 307Mt at 1.3% Ni and 0.13% Co that includes a high‐grade cobalt resource of 185Mt at 1.2% Ni and 0.18% Co[1] . Jacaré’s cobalt resource grade of 0.18% Co is one of the highest cobalt grades globally for large‐tonnage nickel‐cobalt deposits.

The Project tenement area covers 50km[2] of highly prospective ground at the southern extension of the same ultramafic‐mafic intrusive complex that hosts both the Jacaré Ni‐Co deposit and several unpublished nickel‐cobalt resources held by Vale (Figure 2).

Figure 2 – Location of the Itapitanga Nickel‐Cobalt Project. The regional magnetic signature (AS) is coincident with the ultramafic intrusive that hosts the nickel‐cobalt mineralisation.

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AUSTRALIAN SECURITIES EXCHANGE ANNOUNCEMENT & MEDIA RELEASE

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Table 1 – Itapitanga Nickel‐Cobalt Project – Hand‐held auger drill results to date; All intersections are continous complete drill hole intersections (ie. surface to end‐of‐hole).

					Significant Intersections	Significant Intersections	Significant Intersections	Significant Intersections	Significant Intersections
HOLEID	Easting	Northing	mRL	EOH Depth	From (m)	To (m)	Interval (m)	Ni %	Co %
ITAP‐AG00001 ITAP‐AG00002 ITAP‐AG00003 ITAP‐AG00004 ITAP‐AG00005 ITAP‐AG00006 ITAP‐AG00007 ITAP‐AG00008 ITAP‐AG00009 ITAP‐AG00010 ITAP‐AG00011 ITAP‐AG00012 ITAP‐AG00013 ITAP‐AG00014 ITAP‐AG00015 ITAP‐AG00016 ITAP‐AG00017 ITAP‐AG00018 ITAP‐AG00019 ITAP‐AG00020 ITAP‐AG00021 ITAP‐AG00022 ITAP‐AG00023 ITAP‐AG00024 ITAP‐AG00025 ITAP‐AG00026 ITAP‐AG00027 ITAP‐AG00028 ITAP‐AG00029 ITAP‐AG00030 ITAP‐AG00031 ITAP‐AG00032 ITAP‐AG00033	386952 386771 386025 386320 387544 387208 387325 387066 387182 386837 386886 385925 385812 386185 385914 386440 386559 386635 387393 387133 387056 387337 387294 387257 385767 385816 385851 385930 386007 386083 386152 386244 386262	9299063 9298693 9297492 9297761 9299611 9299369 9299271 9298967 9298870 9299158 9298594 9297055 9297151 9297360 9297587 9297667 9298350 9298288 9299736 9299433 9299498 9299522 9299554 9299587 9296929 9297401 9297373 9297306 9297240 9297176 9297645 9297579 9297548	209 201 206 205 210 214 215 206 214 209 213 203 207 210 202 207 206 198 205 216 223 221 217 225 209 198 202 197 201 205 196 207 205	3.9 5.4 10.1 8.7 5 3.7 11.5 4.6 6.5 3.9 5.4 6.6 6.0 6.5 8.0 9.0 4.0 6.5 6.0 8.3 6.0 10.4 7.0 6.0 5.0 6.0 6.0 1.5 1.1 4.9 8.0 10.0 12.0	0.0 3.9 3.9 1.16 0.04 0.0 5.4 5.4 0.84 0.06 0.0 10.1 10.1 1.03 0.12 0.0 8.7 8.7 1.21 0.10 0.0 3.7 3.7 0.41 0.05 0.0 11.5 11.5 1.05 0.08 0.0 4.6 4.6 0.78 0.07 0.0 6.5 6.5 1.37 0.05 0.0 3.9 3.9 0.69 0.06 0.0 5.4 5.4 1.09 0.11 0.0 6.6 6.6 0.79 0.02 0.0 6.0 6.0 0.91 0.09 0.0 6.5 6.5 0.55 0.04 0.0 8.0 8.0 0.80 0.12 0.0 9.0 9.0 0.34 0.06 0.0 4.0 4.0 0.45 0.10 0.0 6.5 6.5 0.94 0.20 0.0 8.3 8.3 1.05 0.05 0.0 10.4 10.4 1.14 0.07 0.0 7.0 7.0 0.51 0.07 0.0 6.0 6.0 0.54 0.10 0.0 5.0 5.0 0.78 0.07 0.0 6.0 6.0 0.91 0.12 0.0 6.0 6.0 1.04 0.11 0.0 1.5 1.5 1.38 0.07 0.0 1.1 1.1 1.45 0.06 0.0 4.9 4.9 1.51 0.04 0.0 8.0 8.0 0.59 0.16 0.0 10.0 10.0 1.07 0.12 0.0 12.0 12.0 0.91 0.13 No significant Intersection No significant Intersection No significant Intersection

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& MEDIA RELEASE

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Figure 3 – Regional location map of the Carajás Mineral Province, showing the location of Centaurus’ key projects.

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Figure 4 – Photos of the auger drilling at the Itapitanga Ni‐Co Project; Moving hole (left), field team work hard to secure the new auger drill (right).

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AUSTRALIAN SECURITIES EXCHANGE ANNOUNCEMENT & MEDIA RELEASE

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APPENDIX B – TECHNICAL DETAILS OF THE ITAPITANGA NICKEL‐COBALT PROJECT, JORC CODE, 2012 EDITION – TABLE 1 SECTION 1 SAMPLING TECHNIQUES AND DATA

Criteria					Commentary
Sampling techniques					 Soil samples were collected at roughly 100‐150m intervals along a fence line oblique to the
					mineralisation. 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.
					 Surface rock chip/soil samples were collected from in situ outcrops and rolled boulders for
					chemical analysis.
					 Channel samples were taken at a road cutting site vertically across the profile. The channel
					sample height was 2.5m, approximately 3‐5kg of sample was collected.
					 Auger samples are taken by a hand‐held auger. Initial sections are 400m apart with 100m
					between holes. Care is taken to try to remove up‐hole contamination from the auger bit
					during sampling. A 3‐5kg sample was taken from the bit. The sample was placed in a plastic
					sample bagwith a sample tagbefore beingsent to the lab.
Drilling techniques					 Auger drilling completed using a hand‐held auger with a 200mm auger bit. Drilling depth is
					determined bydrill refusal.
Drill sample		recovery			 Not applicable.
Logging					 All outcrop and soil sample points were registered and logged in the Centaurus geological
					mapping points 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.
Quality	of assay		data		 Chemical analysis for metal oxides is determined using XRF analysis (XRF79C). Fusion disks
and laboratory tests					are made with pulped sample and the addition of a borate based flux. Analysis at SGS is for
					a 12 element suite. LOI using loss determination by thermo‐gravimetric analysis at 1000°C.
					 Chemical analysis was completed for gold by fire assay and ICP for limit of 0.001ppm as well
					as multi element using ICP (IC40B) for select samples.
					 SGS Geosol Laboratories insert their own standards at set frequencies and monitor the
					precision of the XRF and ICP 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.
					 Laboratory procedures are in line with industrystandards.
Verification				of	 All samples were collected by Centaurus field geologists. All assay results were verified by
sampling and assaying					alternative Company personnel and the Competent Person before release.
Location		of	data		 The survey grid system used is SAD‐69 22S. This is in line with Brazilian Mines Department
points					requirements. No mapping points are reported.
Data	spacing		and		 Initial soil samples were collected on 100‐150m spacing along a fence line.
distribution					 In future, soils sampling will be conducted on 200‐400m line spacing with 50m between
					sample.
					 Sample locations 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 initial field
relation	to	geological			mapping and regional geophysical interpretations.
structure

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Sample security	 All samples were placed in plastic sample bags and then numbered. Bags are sealed and
	placed in larger bags (10 samples per bag) and then transported 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.
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	Commentary
Mineral tenement and					The Itapitanga project includes one exploration licence 850.475/2016, for a total area of
land tenure	status				circa 50km2.
					The tenements are part of an agreement where Centaurus will pay R$150k (~A$60k) over
					six months. At the end of the period, assuming Centaurus continues with the project, it
					will pay the vendor a further R$500k (~A$200k). Further, milestone payments to the
					vendor may be made ‐ R$1 million (~A$400,000) if a JORC Resource is defined and R$1.5
					million (~A$600,000) if a Mining Lease is granted by the Brazilian Mines Department
					(DNPM).
					All mining projects in Brazil are subject to a CFEM royalty, a government royalty of 2% on
					base metals revenues.
					Landowner royalty is 50% of the CFEM royalty.
					Theproject is locatedprimarilyin farmingland.
Exploration	done		by		The company is not aware of any historical exploration.
other parties
Geology					The Itapitanga Project forms part of the southern extension of the ultramafic‐mafic
					intrusive complex (2.8Ga) that intrudes the Archean Xingu basement granites in the
					western region of the Carajás Mineral Province.
					Nickel‐cobalt laterite mineralisation generally occurs from surface and is associated with
					the ferruginous laterite of the ultramafic protore. Nickel mineralisation is associated with
					the saprolite that underlies the ferruginous laterite.
Drill hole Information					At the date of announcement, a total of 40 auger holes for 241.5m has been completed.
					Assay results have been received for 33 holes. A further 7 holes have been completed
					pending results. Auger drilling is ongoing.
					Refer to Table 1 for full list of significant intersection and auger hole data from recent
					drilling.
Data methods	aggregation				Continuous sample intervals are calculated via weighted average, no cut offs have been used.
					All holes are reported as complete hole intervals (surface to end‐of‐hole). No selective
					intervals are reported. Further details of the intersections can be found in the drill hole
					results table.
					No metal equivalents are reported.
Relationship		between			The auger holes are vertical and have been located across the target area. All holes
mineralisation		widths			started in mineralisation and 29 out of the first 33 holes finished in mineralisation.
and intercept lengths
Diagrams					Refer to Figures 1‐4.
Balanced reporting					All exploration results received by the Company to date are included in this report or can
					be referenced toprevious ASX releases.
Other exploration	substantive data				The Company is working with the CPRM geological and geophysical regional data set (Carajás – Área I (1047)).

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Criteria	Commentary
Further work
	 Auger drilling is ongoing.
	 The maiden RC drill program is set to start in mid‐April 2018 with the RC rig having
	recently commenced mobilisation.