COBRE LIMITED — Capital/Financing Update 2020

Jun 9, 2020

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Cobre Limited A.C.N. 626 241 067 ( ASX: CBE Level 7/151 Macquarie Street SYDNEY NSW 2000 Tel: + 61 2 9048 8856 www.cobre.com.au

10 June 2020

ASX Limited - Company Announcements Platform

THIRD DRILLING PROGRAM COMMENCES AT PERRINVALE VHMS PROJECT

Highlights

• Cobre’s third drilling program at the Perrinvale VHMS Project has commenced, with the diamond drill rig now onsite. The reverse circulation drill rig is due to mobilise to site this week.

• This program includes 6,000m of RC and DD drilling at Perrinvale with the dual aim of extending current VHMS mineralisation and drill testing new targets.

• Metallurgical test work will commence on an ore sample from the Schwabe Prospect.

Update on the Exploration Program at the Perrinvale VHMS Project

Cobre Limited (ASX: CBE , Cobre or Company ) is pleased to announce that its third drilling program has now commenced at the 100% owned Perrinvale Volcanic-Hosted Massive Sulphide ( VHMS ) Project located in Western Australia ( refer Figure 1 ).

As announced to the ASX 19 May 2020, the Company has budgeted for a combined 6,000m of Diamond Core ( DC ) and Reverse Circulation ( RC ) drilling as part of this program. This is Cobre’s third drill program at Perrinvale, and will include further holes at the Schwabe, Zinco Lago and Zinco Rame prospects, plus the first drill testing of several other VHMS targets in the area ( refer Figure 2 ).

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Figure 1: Diamond drill rig on site at the Schwabe Prospect at Perrinvale

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Figure 2: Perrinvale Project drilling plan - June 2020 (on AEM 60m depth conductivity)

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Further Drilling at Schwabe, Zinco Lago, Zinco Rame and Lago Rame Prospects

Drilling and surface sampling over the last 18 months have confirmed the VHMS prospectivity of the Panhandle Greenstone Belt within the Perrinvale Project. Recent down-hole and ground-based ElectroMagnetic ( EM ) surveys have further defined conductive targets. The known base & precious metal prospects at Schwabe, Zinco Lago, Zinco Rame and Lago Rame will all be progressed with a mix of RC and DC holes as part of this campaign.

Other Prospective Drill Targets within the Perrinvale Project

The Company has also completed field investigations and EM surveys in adjacent areas which have identified new VHMS prospects at Piega del West, Costa del Islas, and Ponchiera North within the Perrinvale Project. These target areas, along with an initial drill test of the anticlinal structure at the Ponchiera Copper Prospect, will be tested via RC drilling ( as shown on Figure 3 ).

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Figure 3: New VHMS drill targets within the Perrinvale Project (on AEM 60m depth conductivity)

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Schwabe Prospect Metallurgical Test

With high-grade VHMS mineralisation confirmed at the Schwabe Prospect earlier this year[1] , and the recent arrival of the DC rig onsite, the Company is using this opportunity to generate a sample for sighter metallurgical test work.

The drill rig has commenced a HQ diamond core hole at Schwabe, with the aim of generating an ore sample which can be assessed for its suitability for sorting, leaching and flotation processing. Results of the metallurgical testing are expected to be received progressively over an eight-week period from delivery of the ore sample to the laboratory.

Flexible Drilling Program

Many of the VHMS targets within the Perrinvale Project have never been drilled, accordingly, Cobre’s technical team is taking a staged approach to this third exploration program. Approximately 2,000m of RC drilling and 1,600m of DC drilling has been allocated to date (60% of the 6,000m total). This allows for any positive assay results to be immediately followed up with additional exploration drilling.

Cobre’s Executive Chairman and Managing Director, Martin Holland, said in relation to this latest drilling program at the Perrinvale Project:

“Cobre’s highly specialised and experienced VHMS technical team has completed a thorough analysis of recent assaying and electromagnetic survey results at Perrinvale in order to determine the priorities and targets for the current drilling program. This program has twin aims of extending the strike length and depth of known VHMS mineralisation, while also stepping out to test new targets at Perrinvale. Our objective is to unlock the broader potential of the Perrinvale Project beyond the existing VHMS mineralisation at Schwabe[1] . With the DC rig now drilling onsite, and the RC rig due to commence in the coming days, we look forward to reporting the assay results as they become available.”

Background on the Perrinvale Project

As a private company in June 2019, Cobre undertook an initial reverse circulation drilling program within the Perrinvale tenements to investigate targets identified by earlier exploration. At that time, the drilling program intersected very high-grade VHMS base metal & gold mineralisation at shallow depth. The best assayed intercept was at the Schwabe Prospect to date: 5m at 9.75% copper, 3.2g/t gold, 34g/t silver and 3.1% zinc from 50m depth[1] . Subsequently in August 2019, Cobre completed an airborne electromagnetic survey within the Perrinvale project area and identified a total of 10 potential VHMS prospects. Cobre was listed on ASX in January 2020. Since that time, Cobre has embarked on a systematic exploration program of RC and diamond drilling and electromagnetic surveys in order to further investigate the VHMS potential of the Perrinvale area.

This ASX release was authorised on behalf of the Cobre Board by: Martin C Holland, Executive Chairman and Managing Director.

For more information about this announcement:

Martin C Holland

Executive Chairman and Managing Director

holland@cobre.com.au

1. Reported under JORC 2012 ASX announcement 16/04/2020: Significant High-Grade Copper Gold Results at Perrinvale

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Competent Persons Statement

The information in this report that relates to mineral exploration results and exploration potential is based on work compiled under the supervision of Mr Todd Axford, a Competent Person and member of the AusIMM. Mr Axford is the Principal Geologist for GEKO-Co Pty Ltd and contracted to the Company as Exploration Manager and has sufficient experience relevant to the style of mineralisation and type of deposit under consideration and to the activity that 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 ’. Mr Axford consents to the inclusion in this report of the information in the form and context in which it appears.