COBRE LIMITED — Capital/Financing Update 2020

Apr 21, 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

22 April 2020

ASX Limited - Company Announcements Platform

GEOPHYSICAL SURVEY UPDATE FOR THE PERRINVALE VHMS PROJECT

Highlights

• Down hole electromagnetic surveys have been undertaken on the recently completed diamond core drill holes at the Schwabe, Zinco Lago and Monti Prospects, plus two of the reverse circulation holes drilled in 2019.

• A number of promising electromagnetic conductors have been identified within the Perrinvale Project including: the existing Schwabe drill area; below recent drilling at Zinco Lago; off hole along the Zinco Lago - Lago Rame gossan trend; and adjacent to the recent Monti drilling.

• Ground electromagnetic surveys now underway to further refine targets for the next phase of drilling at the Perrinvale Project.

Update on Geophysical Survey Program at the Perrinvale VHMS Project

Cobre Limited (ASX: CBE , Cobre or Company ) is pleased to provide an update of the results from the Down Hole Electromagnetic surveys ( DHEM ) undertaken following the recent diamond drilling program within the Perrinvale Volcanic-Hosted Massive Sulphide ( VHMS ) Project located in Western Australia (refer Figure 4 ).

DHEM surveys were undertaken on the diamond core drill holes recently completed at the Schwabe, Zinco Lago and Monti Prospects, plus two of the reverse circulation ( RC ) holes drilled in 2019 (located southwest of Schwabe and along the gossan trend south of Zinco Lago). This data has been reviewed in conjunction with the broad spaced Moving Loop Electromagnetic ( MLEM ) and Airborne Electromagnetic ( AEM ) surveys completed in 2019.

Schwabe Prospect

The DHEM survey at the Schwabe Prospect aligns well with the model of the 2019 AEM survey, indicating a robust and highly conductive core area within the existing exploration area, and some potential for a lower conductivity zone extending to the north or north-northwest of existing drilling. A MLEM survey is currently underway at Schwabe to further refine the next phase of drilling of the VHMS mineralisation previously identified at this location (refer to ASX announcement 16/04/2020: Significant High-Grade Copper Gold Results at Perrinvale).

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Zinco Lago Prospect

The DHEM surveys of the Zinco Lago diamond drill holes indicate a strong (6,000 to 7,000 Siemens) late time conductor below the drill holes which is not obvious in the AEM data. The spatial position of the modelled conductor is aligned with the down dip projection of the mineralised horizon identified in the Zinco Lago drill core (refer Figure 1 ). The Maxwell model of this conductor strikes roughly northsouth and is open to the limits of the data. The nature of the conductor response is indicative of a massive sulphide or highly graphitic lithology. While further exploration drilling is required to confirm the cause of conductance at the Zinco Largo Prospect, the Company is very encouraged by the primary sulphides including pyrite, pyrrhotite and chalcopyrite as veinlet and narrow (10-30cm) massive zones identified in the recent diamond core holes above this conductor.

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Figure 1: Zinco Lago DHEM conductor model and recent drill results[1]

Zinco Lago - Lago Rame Gossan trend

RC hole 19PVRC004 drilled in 2019, located along the Zinco Lago - Lago Rame gossan trend, 900 metres south of the Zinco Lago diamond drilling, was included in the DHEM surveys. The survey results generated off hole conductance, along with a very small on hole conductor associated with a narrow graphitic shale.

1 refer to ASX announcement 16/04/2020: Significant High-Grade Copper Gold Results at Perrinvale for reporting under JORC 2012 guidelines

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Two conductor plates have been modelled as shown in Figure 2 , including the RC drill trace. The best model fit generates a relatively flat mid time conductor and a deeper west dipping strong (6,000 to 7,000 Siemens) late time conductor. As for Zinco Lago, the strong late time conductor is considered indicative of a massive sulphide or highly graphitic lithology. The area has been revisited on the ground, with small scale folding noted in sub-crop within the sedimentary sequence. Folding on a larger scale may explain the orientations of the conductor models.

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Figure 2: Zinco Lago – Lago Rame Gossan DHEM conductor models and 2019 RC drill trace

Monti Prospect

At the Monti Prospect, DHEM was completed in the north and south, with small conductive features identified in the north. In the south, a much stronger (6,000 to 7,000 Siemens) off hole conductor has been identified north east of diamond hole 20MTDD003, as shown along with recent drill results[1] on Figure 3 .

1 refer to ASX announcement 16/04/2020: Significant High-Grade Copper Gold Results at Perrinvale for reporting under JORC 2012 guidelines

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Figure 3: Monti DHEM conductor model and recent drill results (20MTDD003)[1]

Moving Loop EM Survey Underway

The Company has now commenced a program of ground electromagnetic ( MLEM) surveys across the Perrinvale Project area. The MLEM surveys will encompass both recently drilled prospects and priority conductive features identified during the 2019 interpretation of the AEM data. Field truthing of these priority conductive features has recently been completed, prior to the MLEM survey design.

The broad objectives of the MLEM program include:

• to assess the potential for deeper conductors associated with the Schwabe VHMS system;

• further assessment of areas where DHEM conductors may be open or are yet to generate clear models; and

• improve resolution of other priority conductors noted in the 2019 AEM survey.

A review of all data, including geophysics (magnetics & EM), geological mapping and drill hole logging, has led to the design of MLEM surveys across eight areas (refer Figure 4 ). The MLEM surveys, which typically have much greater depth penetration, have been designed to better assess potential deeper conductors, as well as to improve confidence in conductor models generated from AEM and DHEM data. At the completion of the MLEM surveys, the next phase of exploration drilling will be refined. This phase of drilling will include a mix of both RC (for shallower targets) and diamond core drilling (for deeper targets).

1 refer to ASX announcement 16/04/2020: Significant High-Grade Copper Gold Results at Perrinvale for reporting under JORC 2012 guidelines

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Figure 4: MLEM survey area locations

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Exploration Program Moving Forward

The MLEM data is expected to be received progressively over the next 3 weeks of the survey period, allowing refinement of targets and finalisation of drill hole design. For most of the conductors being investigated, the existing Program of Works approvals will allow for immediate drilling.

Cobre’s Executive Chairman and Managing Director, Martin Holland, said in relation to the recent EM results at the Perrinvale Project:

“The recent down hole EM results follows the positive diamond drill results reported recently[1 ] at the Perrinvale Project. In particular, the off hole conductor along the Zinco Lago – Lago Rame gossan is an exciting new prospect identified by our exploration team. All together, these EM results provide encouragement to continue Cobre’s systematic plan of utilising geophysics to refine drill targets in favourable geological positions across the Perrinvale Project area. I am encouraged in knowing our work to date has focused on a small part of the total project area. The 2019 AEM survey covered about 30% of our tenure and this current program is focused on a fraction of that survey area. I look forward to updating the market on the MLEM results as they become available and to leveraging the knowledge we gain to unlock potential across the entire project.

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

2 Reported under JORC 2012 in section 5 of the Cobre Prospectus: http://www.cobre.com.au/prospectus

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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.

Appendix 1: DHEM Logging Specifications

Downhole electromagnetic (DHEM) surveys were completed at nine drill holes across the Perrinvale Project, Western Australia (see below). Vortex Geophysics acquired data using a DigiAtlantis probe measuring the B-field. Downhole station intervals were varied according to geological intervals of interest. Specifications of transmitter loop sizes, locations and recording intervals are detailed below.

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Table 1: JORC Code Reporting Criteria

Section 1 Sampling Techniques and Data – Diamond Core & Reverse Circulation Drilling

Criteria	JORC Code explanation	Commentary
Sampling techniques		Not relevant for reporting DHEM geophysical survey
Drilling techniques	Drill type (e.g. core,reverse circulation,open‐hole hammer, rotary airblast, auger, Bangka, sonic, etc) anddetails (e.g. core diameter, triple orstandard tube, depth of diamond tails,face‐sampling bit or other type, whethercore is oriented and if so, by what method, etc).	HQ2 core drilling was completed by contractor Westralian Diamond Drillers using a McCulloch drill rig. Where ground conditions allowed core was orientated using a Reflex ACT Orientation tool. RC drilling was completed by contractor Challenge Drilling using KWL 350 drill rig with face-sampling hammer, onboard 1100cfm /350psi compressor, and a 1000/850 booster compressor on separate truck. 50mm diameter PVC casing was inserted in to holes post drilling for later DHEM surveys
Drill sample recovery		Not relevant for reporting DHEM geophysical survey
Logging		Not relevant for reporting DHEM geophysical survey
Sub‐sampling techniques and sample preparation		Not relevant for reporting DHEM geophysical survey
Verification of sampling and assaying		Not relevant for reporting DHEM geophysical survey
Location of data points	Accuracy & quality of surveys used to locate drill holes (collar & downhole). Specification of thegridsystem used.	All collars survey with DGPS and downhole surveys either Gyro or single shot camera. These methods are suitable for using data in future resource estimation. DHEM surface loop positions (detailed in Appendix 1) located with handheld GPS expected accuracy 5m, which is suitable for the purpose. GDA94zone 50.
	Quality and adequacy oftopographic control.	GPS survey, which is suitable for the stage of exploration.
Data spacing and	Data spacingfor reporting of	Three component DHEM data were

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Criteria	JORC Code explanation	Commentary
distribution	ExplorationResults.	collected on station intervals from 2.5m to 10m(specific detail in Appendix 1)
Orientation of data in relation to geological structure		Orientation of DHEM surface loops was based on lithological logging of the drilled holes and modelling of AEM survey.
Sample security		Not relevant for reporting DHEM geophysical survey
Audits or reviews		Contractors DHEM data and report reviewed by consultant from Core Geophysics PtyLtd

Section 2 Reporting of Exploration Results

Criteria	JORC Code explanation	Commentary
Mineral tenement and land tenure status	Type, referencename/number, location and ownershipincluding agreements or material issueswith third parties such as jointventures, partnerships, overridingroyalties, native title interests, historicalsites, wilderness or national parkand environmentalsettings.	Reported results all from 100% Toucan Gold Pty Ltd tenements at Perrinvale WA, which may include E29/929, E29/938, E29/946, E29/986, E29/987, E29/988, E29/989, E29/990 & E29/1017. Toucan Gold Pty Ltd is a subsidiary (80% owned) of Cobre Ltd. FMG Resources Pty Ltd retains a 2% net smelter royalty on any future metal production from three tenements E29/929, 938 and 946. All samples were taken on Crown Land covered by a Pastoral Lease. No native title exists. The land is used primarilyfor cattlegrazing.
	The security of the tenure heldatthe time of reporting along withany known impediments to obtaininga license to operate in thearea.	The tenements are in good standing, and all work has been conducted under specific approvals from Department of Mining Industry Resources & Safety.
Exploration done by other parties	Acknowledgment andappraisalof exploration byotherparties.	No results are relied on from other parties in this report.
Geology	Deposit type, geologicalsettingand style ofmineralisation.	The Perrinvale Project area includes parts of the Illaara and Panhandle Greenstone Belts (GB) located in the northern Southern Cross Domain of the Younami Terrane, in the Central part of Western Australia’s Yilgarn Craton.

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Criteria	JORC Code explanation	Commentary
		The prospects drilled are located within the Panhandle GB in areas dominated by mafic volcanics and intrusives. Locally interflow sedimentary zones are present and consist variably of mudstones, shales and cherty exhalites. VHMS mineralisation in these mafic dominated rocks, associated with the intercalated sediments, is present. Disseminated, stringer and massive sulphides have been identified.
Drill hole Information	A summary of allinformation material to the understanding ofthe exploration results includinga tabulation of thefollowing information for all Material drillholes: - easting and northing of the drillhole collar - elevation or RL (Reduced Level–elevation above sea level in metres)ofthe drill holecollar - dip and azimuth of thehole down hole length andinterception depth	Included in appendix 1
Data aggregation methods		Not relevant for reporting DHEM geophysical survey
Relationship between mineralisation widths and intercept lengths		Not relevant for reporting DHEM geophysical survey
Diagrams	Appropriate maps and sections (with scales) and tabulations of intercepts should be included for any significant discovery being reported These should include, but not be limited to a plan view of drill hole collar locations and appropriate sectional views.	Included within the report (or as appendices) are plans, sections, showing modelled conductor plates and related drill holes used in Down Hole Electro- Magnetic surveying.
Balanced reporting	Where comprehensivereportingof all Exploration Results isnotpracticable, representativereportingof both low and highgradesand/orwidths should	All significant results are included on the plans and/or cross-sections. Full survey details, including all holes surveyed are included in appendix 1.

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Criteria	JORC Code explanation	Commentary
	be practiced toavoidmisleading reportingofExploration Results.
Other substantive exploration data	Other exploration data,ifmeaningful and material, shouldbereported including (but notlimitedto): geologicalobservations;geophysical surveyresults;geochemical survey results;bulksamples – size and methodoftreatment; metallurgical test results;bulk density,groundwater, geotechnical and rockcharacteristics; potential deleteriousor contaminating substances.	Exploration of significance completed prior to December 2019 is detailed in the Cobre Ltd Prospectus that can be accessed via the Company website along with results of 2020 diamond drilling at: http://www.cobre.com.au/
Further work	The nature and scale ofplanned further work (e.g. tests forlateral extensions or depth extensionsor large‐scale step‐outdrilling). Diagrams clearly highlightingthe areas of possible extensions, includingthe main geological interpretationsand future drilling areas, providedthisinformation is not commercially sensitive.	Further work is discussed in the document.