CLASSIC MINERALS LTD — Capital/Financing Update 2021

May 11, 2021

CLASSIC MINERALS LIMITED

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71 Furniss Rd, Lansdale Western Australia 6065

ASX: CLZ | ABN 119 484 016 contact@classicminerals.com.au

12 May 2021

ASX Announcement

CLASSIC’S GOLD PROCESSING PLANT

SUCCESSFULLY COMMISSIONED

Highlights:

• The Gekko gold processing plant was successfully assembled and commissioned with small parcels of ore processed at Classsic’s testing site in Gnangara WA.

• The plant will now be moved to the Kat Gap Gold Project in readiness for processing. Once necessary approvals have been granted Classic will look to immediately commence mining operations and process the gold rich ore.

• JT Metallurgical Services Pty Ltd undertook the testing and commissioning of the plant.

• This achievement marks another milestone met by the Classic Minerals Ltd team as they continue to advance the planned development of its 100% owned flagship Kat Gap Gold Project which lies 170km south of Southern Cross and has an initial JORC 92,869 oz @ 2.96 g/t Au with gravity and conventional cyanide leach process proving 95-96% recovery from both fresh and oxide samples[1] .

• Classic Minerals remains on track to achieve the first gold recovery through the Gekko processing plant by the end of August 2021.

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Figure 1: JTMS staff commissioning the plant.

1 ASX announcement dated 10 Aug 2020

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CLASSIC MINERALS LIMITED

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71 Furniss Rd, Lansdale Western Australia 6065 ASX: CLZ | ABN 119 484 016 contact@classicminerals.com.au

Classic Minerals Limited (ASX: CLZ, “the Company” or “CLZ”) is pleased to announce the successfull assembly and commissioning of the 100% complete Gekko Gold Processing Plant, which has a 30 tonne per hour (tph) capacity and is scalable to a Gekko Python size plant with a processing capacity of 250 tph. The company will look to update shareholders as site mobilisation occurs.

Small parcels of ore were processed. Test operations were successfully conducted; with assessment and commissioning now complete this plant will now be moved to Kat Gap.

JT Metallurgical Services Pty Ltd (JTMS) undertook the testing and commissioning of the plant. They generated a process flow diagram, process design, electrical load study and mass/water balance for the plant capable of achieving maximum gold recovery.

JTMS provided metallurgical support and guidance to Classic Minerals with regard to testing and commissioning the pilot plant that was conducted at Classsic’s testing site in Gnangara WA. JTMS aided in the development and operation of the onsite process for the trial parcel and during the operation of the pilot plant, samples were taken of the crushed product and In-Line Spinner tailings to develop a mass balance. JTMS will continue to manage the ore processing at Kat Gap.

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Figure 2: JTMS staff commissioning the plant.

This achievement marks another milestone met by the Classic Minerals Ltd team as they continue to advance the planned development of its 100% owned flagship Kat Gap Gold Project which lies 170km south of Southern Cross and has an initial JORC 92,869 oz @ 2.96 g/t Au with conventional cyanide leach process proving 95-96% recovery from both fresh and oxide samples[2] .

2 ASX announcement dated 10 Aug 2020

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CLASSIC MINERALS LIMITED

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71 Furniss Rd, Lansdale Western Australia 6065 ASX: CLZ | ABN 119 484 016 contact@classicminerals.com.au

The Chairman, John Lester said “ This is yet another key milestone achieved by the management and operations team of Classic Minerals Ltd required to formally transform Classic from an explorer to a miner. We remain on track to construct and mine at full capacity by the end of July 2021 and we look forward to updating shareholders as additional milestones are reached”.

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Figure 3: Staff and plant.

This announcement has been approved by the Board.

For further information, please contact:

Company Secretary Madhukar Bhalla

contact@clasicminerals.com.au

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CLASSIC MINERALS LIMITED

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71 Furniss Rd, Lansdale Western Australia 6065

ASX: CLZ | ABN 119 484 016 contact@classicminerals.com.au

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Figure 4: Testing various parts of the plant.

ABOUT THE FORRESTANIA GOLD PROJECT

The FGP Tenements (excluding Kat Gap) are registered in the name of Reed Exploration Pty Ltd, a wholly owned subsidiary of ASX listed Hannans Ltd (ASX: HNR). Classic has acquired 80% of the gold rights on the FGP Tenements from a third party, whilst Hannans has maintained its 20% interest in the gold rights. For the avoidance of doubt Classic Ltd owns a 100% interest in the gold rights on the Kat Gap Tenements and also nongold rights including but not limited to nickel, lithium and other metals.

Classic has inferred and indicated Mineral Resources of 8.24 Mt at 1.52 g/t for 403,906 ounces of gold , classified and reported in accordance with the JORC Code (2012), with a recent Scoping Study (see ASX Announcement released 2nd May 2017) suggesting both the technical and financial viability of the project. The current postmining Mineral Resource for Lady Ada, Lady Magdalene and Kat Gap is tabulated below.

Additional technical detail on the Mineral Resource estimation is provided, further in the text below and in the JORC Table 1 as attached to ASX announcements dated 18[th] December 2019, 21[st] January 2020, and 20 April 2020.

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CLASSIC MINERALS LIMITED

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71 Furniss Rd, Lansdale Western Australia 6065

ASX: CLZ | ABN 119 484 016 contact@classicminerals.com.au

	Indicated	Indicated		Inferred	Inferred			Total
Prospect	Tonnes	Grade	Ounces	Tonnes	Grade	Ounces	Tonnes	Grade	Ounces
		(Aug/t)	Au		(Aug/t)	Au		(au)
LadyAda	257	2.01	16,600	1,090,800	1.23	43,100	1,348,100	1.38	59,700
Lady Magdalene				5,922,700	1.32	251,350	5,922,700	1.32	251,350
Kat Gap				975,722	2.96	92,856	975,722	2.96	92,856
Total	257	2.01	16,600	7,989,222	1.50	387,306	8,246,522	1.52	403,906

Notes:

1. The Mineral Resource is classified in accordance with JORC, 2012 edition

2. The effective date of the mineral resource estimate is 20 April 2020.

3. The mineral resource is contained within FGP tenements

4. Estimates are rounded to reflect the level of confidence in these resources at the present time.

5. The mineral resource is reported at 0.5 g/t Au cut-off grade

6. Depletion of the resource from historic open pit mining has been considered

Forward Looking Statements

This announcement may contain certain “forward-looking statements” which may not have been based solely on historical facts, but rather may be based on the Company’s current expectations about future events and results. Where the Company expresses or implies an expectation or belief as to future events or results, such expectation or belief is expressed in good faith and believed to have reasonable basis. However, forward looking statements are subjected to risks, uncertainties, assumptions and other factors, which could cause actual results to differ materially from future results expressed, projected or implied by such forward-looking statements. Such risks include, but are not limited to Resource risk, metals price volatility, currency fluctuations, increased production costs and variances in ore grade or recovery rates from those assumed in mining plans, as well as political and operational risks in the Countries and States in which we operate or sell product to, and governmental regulation and judicial outcomes. For a more detailed discussion of such risks and other factors, see the Company’s annual reports, as well as the Company’s other filings. Readers should not place undue reliance on forward looking information. The Company does not undertake any obligation to release publicly any revisions to any “forward-looking statements” to reflect events or circumstances after the date of this announcement, or to reflect the occurrence of unanticipated events, except as may be required under applicable securities laws.

Competent Persons Statement

The information contained in this report that relates to Mineral resources and Exploration Results is based on information compiled by Dean Goodwin, a Competent Person who is a Member of the Australian Institute of Geoscientists (AIG). Mr Goodwin is a consultant exploration geologist with Reliant Resources Pty Ltd and consults to Classic Minerals Ltd. Mr. Goodwin has sufficient experience that is relevant to the style of mineralisation and the type of deposit under consideration, and to the activity being undertaken 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”. Mr. Goodwin consents to the inclusion in this report of the matters based on his information in the form and context in which it appears.

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Figure 5: The plant and staff.

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