CODA MINERALS LTD - Capital/Financing Update 2021

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ASX RELEASE 22[nd] March 2021

ASX Code: COD

Coda Expands Australian Copper Portfolio

Highlights

Coda has entered into a binding Farm-in and Joint Venture Agreement to acquire up to 80% ownership of the Cameron River Copper-Gold Project, near Mt Isa in North Queensland.
Excellent strategic fit with flagship Elizabeth Creek Copper Project in South Australia provides Coda with additional highly prospective exposure to copper-gold exploration assets.
Peak grades of 22% Cu and 6.59g/t Au recorded in rock-chip sampling.
Non-cash transaction, amenable to low-risk, low-cost exploration.
Coda’s cash balance remains above $10 million, putting the Company in a strong financial position to deliver on its current and future commitments.

Coda Minerals Limited ( ASX: COD, “Coda” or “the Company” ) is pleased to announce that it has secured an addition to its portfolio of Australian copper exploration projects after entering into a farmin joint venture over the highly prospective Cameron River Project , located in the heart of the worldclass Mt Isa mineral province in North Queensland.

The Company has entered into a binding Farm-in and Joint Venture Agreement with Wilgus Investments Pty Ltd (“ Wilgus ”) giving it the right to acquire up to an 80% ownership in the Cameron River project (“ Cameron River ” or “ Project ”) near Mt Isa in Queensland by spending up to $2 million on exploration in stages over a three-year period (refer Appendix for detailed farm-in terms).

Cameron River consists of 35km[2] of copper and gold exploration tenure spanning two Exploration Permits (EPMs 27042 and 27053). The tenure is located approximately halfway between Mt Isa and Cloncurry, and immediately north of the historic Mary Kathleen Mine.

Coda CEO Chris Stevens said: “While we remain resolutely focused on our work at Elizabeth Creek, particularly the ongoing resource definition drilling at Emmie Bluff and the exciting IOCG work, this was simply an opportunity that was too good to pass up.

“We see this as a logical and complementary addition to our existing portfolio of copper projects in South Australia that will open up a second platform for discovery, exploration success and, ultimately, resource growth for Coda in a Tier-1 copper province.

“With numerous shallow, well-defined targets, Cameron River offers the potential for rapid, low-cost exploration without compromising the pace of ongoing activity at our flagship Emmie Bluff Project or our upcoming IOCG exploration at Elizabeth Creek.”

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6 Altona Street E: [email protected] West Perth Western Australia, 6005 ABN 49 625 763 957

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About the Cameron River Project

Cameron River consists of two granted Exploration Permits (EPM 27042 and EPM 27053) located approximately halfway between Mt Isa and Cloncurry in Northwest Queensland, immediately north of the old Mary Kathleen Uranium Mine. The Project is located in one of Australia’s best mining provinces, with a history of discovery and all necessary mining and exploration infrastructure in place to support Coda’s planned exploration programme, including nearby power, water and paved roads. A native title agreement has been negotiated between Coda’s Farm-in partners Wilgus and the Kalkadoon People, the Traditional Owners of the area, allowing work to commence quickly.

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Figure 1: Regional geographic location of the Cameron River Project in northwest Queensland showing regional geology of major units. Underlying geophysical data TMI Magnetics

Coda’s Exploration Programme

The property has been sporadically explored in the past, but lacks modern, systemic exploration, with large areas effectively unexplored. In addition to standard geological mapping and traverses by Coda personnel, the Company plans to undertake an extensive geochemical program and airborne EM survey across the tenement area to feed into a comprehensive target generation exercise. This is expected to generate new targets and firm up specific drill targets within the broader area of known mineralisation associated with historical rock chip analyses.

Full terms and details of the farm-in agreement are set out in the Appendix to this announcement.

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Coda and Wilgus have executed two agreements: a binding Farm-in and Joint Venture Agreement and a Subscription Agreement. Set out below is a summary of the key aspects of the transactions under these agreements.	Coda and Wilgus have executed two agreements: a binding Farm-in and Joint Venture Agreement and a Subscription Agreement. Set out below is a summary of the key aspects of the transactions under these agreements.
*Farm-in and Joint Venture Agreement*
Farm-in right (no obligation)	Stage 1: Expenditure of $1 million on exploration activities within 2 years from execution to earn a 51% interest in the Project. Stage 2: Expenditure of an additional $1 million on exploration activities within 1 year of earning the Stage 1 interest, to earn an additional 29% interest in the Project. Coda will have the right to determine exploration activity conducted on the Project during the farm-in.
Withdrawal from farm in	Coda must keep the Project tenements in good standing, but may withdraw from the farm-in at any point.
Formation of Joint Venture	An unincorporated joint venture for the exploration of minerals at the Project (“Joint Venture”) will be formed on the earlier of: • Coda earning and receiving the Stage 1 interest, but electing not to proceed with learning the Stage 2 interest (i.e. Coda 51% / Wilgus 49%); and • Coda earning and receiving the Stage 2 interest (i.e. Coda 80% / Wilgus 20%).
Manager of Joint Venture	Coda will be appointed as the manager of the Joint Venture.
Funding of Joint Venture	Each joint venturer will each be responsible for funding exploration work in proportion with their ownership interests. A party that elects not to contribute will be subject to dilution of its interest in the Project.
Royalty	Wilgus will withdraw from the Joint Venture and will be entitled to a royalty of 1.5% based on the net smelter return of minerals extracted from the Project tenements, if its Joint Venture interest is diluted below 10%.
*Subscription Agreement*
Subscription	In consideration for Wilgus agreeing to enter the Farm-in and Joint Venture Agreement, Coda will issue/grant to Wilgus the following (“Consideration Securities”): • 250,000 fully-paid ordinary shares in Coda – 50% of which will be subject to 6 months voluntary escrow; • 250,000 tranche 1 performance rights; and • 250,000 tranche 2 performance rights.
Performance rights	Each tranche 1 performance right entitles Wilgus to receive a fully-paid ordinary share upon Coda having earned the Stage 1 interest and electing to proceed with Stage 2, in accordance with the Farm- in and Joint Venture Agreement. Each tranche 2 performance right entitles Wilgus to receive a fully-paid ordinary share upon Coda having earned the Stage 2 interest in accordance with the Farm-in and Joint Venture Agreement. Each performance right expires 42 months from the date of grant (if not exercised), will not be quoted on ASX, will not be transferrable, and will otherwise be granted on terms considered customary for performance rights.

Criteria	JORC	Code explanation	Commentary	Commentary
Sampling	•	Nature and quality of sampling (eg cut channels,	•	Historical sample results discussed in this release are a mix of single and
techniques		random chips, or specific specialised industry		composite rock chips.
		standard measurement tools appropriate to the	•	Single rock chip samples are inherently selective, while composite rock chips
		minerals under investigation, such as down hole		make an effort to be non-selective by sampling outcrops multiple times to
		gamma sondes, or handheld XRF instruments,		assess the true overall grade.
		etc). These examples should not be taken as	•	Coda cannot comment on the representivity, calibration, appropriateness of
		limiting the broad meaning of sampling.		sample techniques etc. beyond this as the samples are historical in nature
	•	Include reference to measures taken to ensure		and were collected by previous holders.
		sample representivity and the appropriate	•	Coda intends to undertake its own sampling programme where methodology
		calibration of any measurement tools or systems		and other factors can be better controlled. At this time, the rock chips are
		used.		reported primarily as a general indication of prospectivity at the project.
	•	Aspects of the determination of mineralisation
		that are Material to the Public Report.
	•	In cases where ‘industry standard’ work has been
		done this would be relatively simple (eg ‘reverse
		circulation drilling was used to obtain 1 m
		samples from which 3 kg was pulverised to
		produce a 30 g charge for fire assay’). In other
		cases more explanation may be required, such as
		where there is coarse gold that has inherent
		sampling problems. Unusual commodities or
		mineralisation types (eg submarine nodules) may
		warrant disclosure of detailed information.

Criteria	JORC	Code explanation	Commentary	Commentary
Drilling	•	Drill type (eg core, reverse circulation, open-hole	•	Drilling has not been reported as part of this release
techniques		hammer, rotary air blast, auger, Bangka, sonic,
		etc) and details (eg core diameter, triple or
		standard tube, depth of diamond tails, face-
		sampling bit or other type, whether core is
		oriented and if so, by what method, etc).
Drill sample	•	Method of recording and assessing core and chip	•	Drilling has not been reported as part of this release
recovery		sample recoveries and results assessed.
	•	Measures taken to maximise sample recovery
		and ensure representative nature of the samples.
	•	Whether a relationship exists between sample
		recovery and grade and whether sample bias may
		have occurred due to preferential loss/gain of
		fine/coarse material.
Logging	•	Whether core and chip samples have been	•	Drilling has not been reported as part of this release
		geologically and geotechnically logged to a level
		of detail to support appropriate Mineral Resource
		estimation, mining studies and metallurgical
		studies.
	•	Whether logging is qualitative or quantitative in
		nature. Core (or costean, channel, etc)
		photography.
	•	The total length and percentage of the relevant
		intersections logged.

Criteria	JORC	Code explanation	Commentary	Commentary
Sub-sampling	•	If core, whether cut or sawn and whether	•	Drilling has not been reported as part of this release
techniques		quarter, half or all core taken.
and sample	•	If non-core, whether riffled, tube sampled, rotary
preparation		split, etc and whether sampled wet or dry.
	•	For all sample types, the nature, quality and
		appropriateness of the sample preparation
		technique.
	•	Quality control procedures adopted for all sub-
		sampling stages to maximise representivity of
		samples.
	•	Measures taken to ensure that the sampling is
		representative of the in situ material collected,
		including for instance results for field
		duplicate/second-half sampling.
	•	Whether sample sizes are appropriate to the
		grain size of the material being sampled.

Criteria	JORC	Code explanation	Commentary	Commentary
Quality of	•	The nature, quality and appropriateness of the	•	Full details are not available regarding the assay techniques used due to the
assay data and		assaying and laboratory procedures used and		age of the historical data and lack of available records in some cases.
laboratory		whether the technique is considered partial or	•	Coda has limited the reporting of samples to those which it can confirm to a
tests		total.		reasonable degree of confidence the provenance of the sample and the
	•	For geophysical tools, spectrometers, handheld		assay. These assays fall into two groups.
		XRF instruments, etc, the parameters used in	•	The “Seymour” samples were collected by G.L. Seymour and assayed at the
		determining the analysis including instrument		then AMDEL lab in Mt Isa at various points in the 1990s. Full details are not
		make and model, reading times, calibrations		provided, with the Gold and Copper results being reported solely as “Fire
		factors applied and their derivation, etc.		Assay” and “AAS” respectively. Based on the reputation and professional
	•	Nature of quality control procedures adopted (eg		accreditation of the laboratory, Coda has assumed that these results were
		standards, blanks, duplicates, external laboratory		obtained using industry standard techniques and can be relied upon.
		checks) and whether acceptable levels of	•	The “Mosquito” samples were collected by M. Ball in 2008 and assayed by the
		accuracy (ie lack of bias) and precision have been		then ALS Chemex laboratory in Brisbane. Samples were crushed to <2mm,
		established.		pulverised to <75μm before 4 acid ICP-AES multielement assay, plus fire assay
				AAS for Au and follow-up Aqua Regia ICP-AES for ore grade (>1%) Cu.
Verification of	•	The verification of significant intersections by	•	No details are available of repeats, standards etc. undertaken in either of the
sampling and		either independent or alternative company		above sets of assays.
assaying		personnel.	•	The company intends to undertake fieldwork to verify the general conclusions
	•	The use of twinned holes.		inferred by the historical assays in the coming weeks.
	•	Documentation of primary data, data entry	•	This will include rock chip sampling over the same general areas and a broad
		procedures, data verification, data storage		soil sampling programme which the company hopes will indicate
		(physical and electronic) protocols.		mineralisation in the same general areas.
	•	Discuss any adjustment to assay data.
Location of	•	Accuracy and quality of surveys used to locate	•	Historical results in the “Seymour” series were recorded using AGD84 Zone 54
data points		drill holes (collar and down-hole surveys),		coordinate system. Where AGD84 coordinates were not available (i.e. where
		trenches, mine workings and other locations used		a local grid has been used) samples were excluded from consideration.
		in Mineral Resource estimation.	•	Historical results in the “Mosquito” series were recorded using GDA94 Zone
	•	Specification of the grid system used.		54 coordinate system.
	•	Quality and adequacy of topographic control.	•	In both cases, coordinates appear to have been obtained with handheld GPS.

Criteria	JORC	Code explanation	Commentary	Commentary
Data spacing	•	Data spacing for reporting of Exploration Results.	•	Drilling has not been reported as part of this release
and	•	Whether the data spacing and distribution is	•	Reported geochemical samples are irregularly spaced and distributed.
distribution		sufficient to establish the degree of geological	•	Sample compositing appears to have been applied to some of the rock chips
		and grade continuity appropriate for the Mineral		when collected in an attempt to provide a more representative view of the
		Resource and Ore Reserve estimation		copper and gold grades across a given outcrop. Coda does not consider this
		procedure(s) and classifications applied.		material for the purposes of indicating general prospectivity of the ground.
	•	Whether sample compositing has been applied.
Orientation of	•	Whether the orientation of sampling achieves	•	Drilling has not been reported as part of this release.
data in		unbiased sampling of possible structures and the	•	Reported geochemical samples are irregularly spaced and distributed. Rock
relation to		extent to which this is known, considering the		chip sampling is inherently biased as samplers tend to sample rocks
geological		deposit type.		considered prospective for potential mineralisation.
structure	•	If the relationship between the drilling
		orientation and the orientation of key
		mineralised structures is considered to have
		introduced a sampling bias, this should be
		assessed and reported if material.
Sample	•	The measures taken to ensure sample security.	•	As the data is historical, Coda cannot confirm the security measures taken
security				when initially collected. Coda has attempted to ensure integrity of its
				reported dataset by excluding results where provenance, location or
				analytical technique cannot be determined to a reasonable level of
				confidence.
Audits or	•	The results of any audits or reviews of sampling	•	No audits, umpire assays or reviews have been undertaken on the historical
reviews		techniques and data.		assay results.

Criteria	JORC	Code explanation	Commentary	Commentary
Mineral	•	Type, reference name/number, location and ownership including	•	EPMs 27042 and 27053 are currently 100% owned by
tenement and		agreements or material issues with third parties such as joint		Wilgus Investments.
land tenure		ventures, partnerships, overriding royalties, native title interests,	•	Coda Minerals is currently farming in to increase its
status		historical sites, wilderness or national park and environmental		ownership to a maximum of 80%.
		settings.	•	The tenure is in good standing and is considered secure
	•	The security of the tenure held at the time of reporting along with any		at the time of this release. No other impediments are
		known impediments to obtaining a licence to operate in the area.		known at this time.

Criteria	JORC	Code explanation	Commentary	Commentary
Exploration	•	Acknowledgment and appraisal of exploration by other parties.	•	Prior to Wilgus’ acquisition of the properties, two parties
done by other				undertook the majority of the work which informs this
parties				release. These were:
			`o`	G.L. Seymour, who attempted to define the near
				surface mineralisation by composite rock chip
				sampling, much of which is incorporated into the
				geochemical database used by Coda, and
			`o`	Mosquito Consolidated Gold Mines Ltd, who
				undertook detailed mapping and rock chip sampling in
				2008.
			•	Coda considers the Mosquito work to be of high quality,
				with high detail mapping and well kept records detailing
				the location, collection methodology and assay
				techniques used to generate geochemical data. Coda
				considers the Seymour work to be of lower but
				acceptable quality, with less detail around
				methodologies and less accurate location data due to
				technological limitations associated with the date of
				collection.
			•	Of the 37 geochemical samples of 1 g/t Au or better and
				the 70 of 1% Cu or better, 14 and 47 respectively come
				from the Seymour data, with the remaining 23 in both
				cases coming from the Mosquito data.

Criteria	JORC	Code explanation	Commentary	Commentary
Geology	•	Deposit type, geological setting and style of mineralisation.	•	See “Project Geology” in main body of announcement
				for detailed breakdown of the regional and project scale
				geology at Cameron River.
			•	Coda will seek a variety of mineralisation styles during
				first pass exploration and will utilise multielement soil
				sampling, rock chipping and geophysical data collection.
				Preliminary emphasis will be placed on structurally
				controlled Iron Oxide Copper-Gold (IOCG)
				mineralisation, specifically of the carbonaceous
				metasediment subgroup (e.g. Mt Dore, Victoria, Stuart
				etc.).
Drill hole	•	A summary of all information material to the understanding of the	•	Drilling has not been reported as part of this release.
Information		exploration results including a tabulation of the following information	•	While minor historical drilling appears to have been
		for all Material drill holes:		undertaken at the project, data is considered of too low
		`o` easting and northing of the drill hole collar		quality to be reported to the market (details such as
		`o` elevation or RL (Reduced Level – elevation above sea level in		collar locations, hole orientation, geology etc. are not
		metres) of the drill hole collar		known.)
		`o` dip and azimuth of the hole
		`o` down hole length and interception depth
		`o` hole length.
	•	If the exclusion of this information is justified on the basis that the
		information is not Material and this exclusion does not detract from
		the understanding of the report, the Competent Person should clearly
		explain why this is the case.

Criteria	JORC	Code explanation	Commentary	Commentary
Data	•	In reporting Exploration Results, weighting averaging techniques,	•	Drilling has not been reported as part of this release.
aggregation		maximum and/or minimum grade truncations (eg cutting of high
methods		grades) and cut-off grades are usually Material and should be stated.
	•	Where aggregate intercepts incorporate short lengths of high grade
		results and longer lengths of low grade results, the procedure used for
		such aggregation should be stated and some typical examples of such
		aggregations should be shown in detail.
	•	The assumptions used for any reporting of metal equivalent values
		should be clearly stated.
Relationship	•	These relationships are particularly important in the reporting of	•	Drilling has not been reported as part of this release.
between		Exploration Results.
mineralisation	•	If the geometry of the mineralisation with respect to the drill hole
widths and		angle is known, its nature should be reported.
intercept	•	If it is not known and only the down hole lengths are reported, there
lengths		should be a clear statement to this effect (eg ‘down hole length, true
		width not known’).
Diagrams	•	Appropriate maps and sections (with scales) and tabulations of	•	See maps in main body of announcement.
		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.
Balanced	•	Where comprehensive reporting of all Exploration Results is not	•	Maps in body of announcement indicate the prevalence
reporting		practicable, representative reporting of both low and high grades		of mineralised vs unmineralized historical geochemical
		and/or widths should be practiced to avoid misleading reporting of		samples.
		Exploration Results.

Criteria	JORC	Code explanation	Commentary	Commentary
Other	•	Other exploration data, if meaningful and material, should be	•	No other substantive exploration results are considered
substantive		reported including (but not limited to): geological observations;		relevant to this release.
exploration		geophysical survey results; geochemical survey results; bulk samples –
data		size and method of treatment; metallurgical test results; bulk density,
		groundwater, geotechnical and rock characteristics; potential
		deleterious or contaminating substances.
Further work	•	The nature and scale of planned further work (eg tests for lateral	•	Coda intends in the 2021 calendar year to undertake
		extensions or depth extensions or large-scale step-out drilling).		mapping and rock chip sampling programmes, extensive
	•	Diagrams clearly highlighting the areas of possible extensions,		soil sampling programmes and an aerial EM survey of
		including the main geological interpretations and future drilling areas,		the entire project area. It is anticipated that this will
		provided this information is not commercially sensitive.		allow the company to define prospects for further
				exploration, which will most likely include detailed
				mapping and reverse circulation drilling.
			•	Coda does not consider the project mature enough to
				identify areas of possible extensions or future drilling
				areas until the work described above has been
				completed. As a result, Coda cannot provide a map
				showing this information at this time.

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CODA MINERALS LTD — Capital/Financing Update 2021

64682_rns_2021-03-21_fd411894-73eb-4157-815e-4a6b935b9537.pdf

Coda Expands Australian Copper Portfolio

Highlights

About the Cameron River Project

Coda’s Exploration Programme

Full terms and details of the farm-in agreement are set out in the Appendix to this announcement.

Project Geology

Forward Looking Statements

Competent Person’s Statement

Appendix 1: Farm-In and Joint Venture

Farm-in and Joint Venture Agreement

Funding and Consideration

ASX confirmations

Section 1 Sampling Techniques and Data

Section 2 Reporting of Exploration Results

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CODA MINERALS LTD Capital/Financing Update 2021