CONSTELLATION RESOURCES LIMITED — Interim / Quarterly Report 2022

Apr 19, 2022

ASX ANNOUNCEMENT 20 April 2022

MARCH 2022 QUARTERLY REPORT

Constellation Resources Limited (“Constellation” or “Company”) is pleased to present its Quarterly Report for the period ended 31 March 2022. The Company’s focus is the Orpheus Project in the Fraser Range of Western Australia and identifying and evaluating new opportunities in the resources sector.

HIGHLIGHTS DURING AND SINCE THE QUARTER END

• Aircore (“AC”) drilling results to date have defined a prospective nickel-copper-cobalt-PGE (“Ni-CuCo-PGE”) geochemical target that is interpreted to be over three kilometres in strike and up to 300 metres wide – named the “Eyre Anomaly”.

• Completion of a reverse circulation (“RC”) drilling program at the McPherson Prospect on tenement E63/1282 in the southern Fraser Range – assays pending.

• Cash at bank of $4.18 million and no debt as of 31 March 2022, well-funded for planned activities.

• Several opportunities have been reviewed during the quarter, and the Company will continue in its efforts to identify and acquire suitable new business opportunities in the resources sector, both domestically and overseas.

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Figure 1: Location of proposed RC drilling testing identified conductors sitting below first derivative aeromagnetics.

For further information, please contact:

Peter Woodman Peter Muccilli Managing Director Technical Director Tel: +61 8 9322 6322 Tel: +61 8 9322 6322

Level 9, 28 The Esplanade PERTH WA 6000 tel +61 8 9322 6322 fax +61 8 9322 6558 email info@constellationresources.com.au constellationresources.com.au

ABN 57 153 144 211

20 April 2022

MCPHERSON ANOMALY – E63/1282

Subsequent to quarter end, the Company completed a four hole, 535 metre reverse circulation (“RC”) drilling program at the McPherson Prospect (“McPherson”) on tenement E63/1282 in the southern Fraser Range. Assays results are pending and are expected to be received in the coming quarter.

The McPherson nickel sulphide target is a coherent, north-west trending nickel-copper (“Ni-Cu”) soil anomaly, located above a coincident magnetic unit in the north-east corner of the southern tenements of the Orpheus Project which may represent a favourable intrusive unit to host nickel sulphides (Figures 1 and 2). Mid to late time electromagnetic data acquired previously from a moving loop electromagnetic (“MLTEM”) survey has detected features that could be related to subtle bedrock conductors. These MLTEM conductors are located beneath the soil anomaly and two conductors intersect the magnetic unit.

A reconnaissance field trip by the Company confirmed the basement units are concealed under cover. No historic drill holes were found or surface cultural effects identified that may lead to false electromagnetic responses. The drilling is intended to target the coincident and layered Ni-Cu soil anomalism, moderate electromagnetic anomalies and cross-cutting magnetic feature identified at McPherson.

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Figure 2: Location of proposed RC drilling testing identified conductors sitting below the Ni/Cu soil anomalism.

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20 April 2022

EYRE ANOMALY – E28/2403

The Eyre Anomaly is a prospective Ni-Cu-Co-PGE geochemical target interpreted to be over three kilometres in strike and up to 300 metres wide (Figure 3). Strong evidence indicates magmatic nickel sulphides being the source of the Eyre Anomaly with optical petrological analysis confirming trace levels of magmatic nickel-copper sulphides in multiple holes in a fertile mafic intrusion.

The Company is in the process of planning further priority aircore (“AC”) drill programs at the Eyre and Wylie Ni-Cu-Co-PGE geochemical anomalies (Figure 3) which are expected to be undertaken in the June quarter. The anomalies are situated on E28/2403 in the northern portion of the Company’s Orpheus Project.

The drill spacing of much of the Greater Eyre and parts of the Wylie anomalies remains at a reconnaissance density, notionally at 100 metre centres. The next phase of AC drilling is planned to bring the drill density down to 50 metres and to extend the anomalism footprint.

The proposed AC drilling program will focus specifically around to the south of KAC0147 within the Eyre Anomaly. At the Wylie Anomaly, the planned AC drilling program intends to both infill around KAC0192 (previously returned 16m @ 0.11% Ni, 0.05% Cu, 0.01% Co and 7 ppb Pt+Pd including 9m @ 0.15% Ni, 0.07% Cu, 0.02% Co and 10 ppb Pt+Pd) and to extend the open-ended anomaly to the southwest.

Further optical petrology descriptions from the diamond core programme and PGE assay results are also expected in the quarter.

CORPORATE

Business Development

Several opportunities have been reviewed during the quarter, and the Company will continue in its efforts to identify and acquire suitable new business opportunities in the resources sector, both domestically and overseas. However, no agreements have been reached or licences granted and the Directors are not able to assess the likelihood or timing of a successful acquisition or grant of any opportunities.

Capital Position

Constellation is in a strong financial position with cash at bank of approximately $4.18 million and no debt as at 31 March 2022.

As at the date of this report, the Company has the following securities on issue:

Security Type	Number
Fully Paid Ordinary Shares	49,905,426
Unlisted options exercisable at $0.40 to $0.60 each, expiring 30 June 2023	1,300,000

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20 April 2022

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Figure 3: Growing regional scale opportunities within Eyre and Wylie Anomalies over an aeromagnetic image, with selected AC drill and optical petrology results.

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20 April 2022

ABOUT THE FRASER RANGE TENEMENTS

The Company manages the Orpheus Project (Figure 4), comprising six tenements covering approximately 443km[2] in the Fraser Range province of Western Australia. In the Fraser Range, certain Proterozoic mafic/ ultramafic intrusion suites are prospective to host nickel-copper sulphide mineralisation. The region is currently experiencing high levels of exploration activity for nickel following the Nova, Silver Knight, Mawson and Lantern discoveries.

The Orpheus Project includes a 70% interest in three mineral exploration licences (E28/2403, E63/1281 and E63/1282) and one mineral exploration licence application (E63/1695). The granted exploration licences form part of a joint venture between the Company (70%) and Enterprise Metals Limited (“Enterprise”) (30%, ASX: ENT). Pursuant to the joint venture agreement, the Company is responsible for sole funding all joint venture activities on the tenements, which form part of the joint venture, up to completion of a bankable feasibility study.

Additionally, the Company has further 100% interests in two exploration licences (E28/2738 and E28/2957).

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Figure 4: Tenement Plan – Orpheus Project.

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20 April 2022

COMPETENT PERSONS STATEMENT

The information in this report that relates to Exploration Results is extracted from the following ASX announcements:

• “Initial Fraser Range Diamond Drilling Completed” – dated 23 November 2021;

• “ Diamond Drilling to Test Fraser Range Nickel Sulphide Target ” – dated 22 September 2021;

• “June 2021 Quarterly Reports” – dated 30 July 2021;

• “Drilling Results Confirm Trace Magmatic Nickel Sulphides” – dated 20 July 2021;

• “Trace Magmatic Nickel Sulphides in Multiple Drill Holes” - dated 22 April 2021;

• “Exploration Identifies Three Kilometre Ni-Cu-Co-PGE Target” – dated 19 January 2021;

• “ Trace Magmatic Nickel Sulphides Intersected in AC Drilling ” – dated 8 December 2020; and

• “ Aircore Drilling Identifies Anomalous Nickel-Copper-Cobalt ” – dated 14 July 2020.

These announcements are available to view at the Company’s website on www.constellationresources.com.au. The information in the original ASX Announcements that related to Exploration Results was based on, and fairly represents information compiled by Peter Muccilli, a Competent Person who is a Member of the Australasian Institute of Mining and Metallurgy. Mr Muccilli is a Technical Director of Constellation Resources Limited and a holder of options in Constellation Resources Limited. Mr Muccilli has sufficient experience that is relevant to the styles of mineralisation and types 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” (JORC Code). The Company confirms that it is not aware of any information or data that materially affects the information included in the original market announcements. The Company confirms that the form and context in which the Competent Person’s findings are presented have not been materially modified from the original market announcements.

FORWARD LOOKING STATEMENTS

Statements regarding plans with respect to Constellation’s project are forward-looking statements. There can be no assurance that the Company’s plans for development of its projects will proceed as currently expected. These forwardlooking statements are based on the Company’s expectations and beliefs concerning future events. Forward looking statements are necessarily subject to risks, uncertainties and other factors, many of which are outside the control of the Company, which could cause actual results to differ materially from such statements. The Company makes no undertaking to subsequently update or revise the forward-looking statements made in this announcement, to reflect the circumstances or events after the date of that announcement.

This announcement has been authorised for release by the Company’s Managing Director, Peter Woodman.

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20 April 2022

Appendix 1: Disclosures in accordance with ASX Listing Rule 5.3

Summary of Mining Tenements

As at 31 March 2022, the Company has an interest in the following projects:

Project Name	Permit Number	Percentage Interest	Status
Fraser Range, Western Australia	E63/1281	70%	Granted
	E63/1282	70%	Granted
	E28/2403	70%	Granted
	E63/1695	70%	Application
	E28/2738	100%	Granted
	E28/2957	100%	Granted

No other interests in mining tenements were acquired or disposed of during the quarter.

Summary of Mining Exploration Activities Expenditure

Activity	Amount($A’000)
Consultants – Geophysical,Geochemistry,DrillingField Team	(5)
Field Supplies,Equipment Hire,Vehicles,Travel & Accommodation,Other	(28)
Sample Analysis	(22)
Tenement Maintenance,Rents and Rates	(55)
Total as reported in Appendix 5B	(110)

There were no mining or production activities and expenses incurred during the quarter ended 31 March 2022.

Related Party Payments

During the quarter ended 31 March 2022, the Company made payments of $199,000 to related parties and their associates. These payments relate to existing remuneration arrangements (executive salaries, director fees and superannuation of $139,000) and provision of a serviced office ($60,000).

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Rule 5.5

Appendix 5B

Mining exploration entity or oil and gas exploration entity quarterly cash flow report

Name of entity

CONSTELLATION RESOURCES LIMITED ABN Quarter ended (“current quarter”) 57 153 144 211 31 March 2022

Consolidated statement of cash flows	Current quarter $A’000	Year to date (9 months) $A’000
1. Cash flows from operating activities 1.1 Receipts from customers 1.2 Payments for (a) exploration & evaluation (b) development (c) production (d) staff costs (e) administration and corporate costs 1.3 Dividends received (see note 3) 1.4 Interest received 1.5 Interest and other costs of finance paid 1.6 Income taxes paid 1.7 Government grants and tax incentives 1.8 Other – Business development costs 1.9 Net cash from / (used in) operating activities	- (110) - - (140) (11) - 4 - - - -	- (918) - - (417) (220) - 12 - - - (10)
	(257)	(1,553)
2. Cash flows from investing activities 2.1 Payments to acquire or for: (a) entities (b) tenements (c) property, plant and equipment (d) exploration & evaluation (e) investments (f) other non-current assets	- - - - - -	- - (2) - - -

ASX Listing Rules Appendix 5B (17/07/20) + See chapter 19 of the ASX Listing Rules for defined terms.

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Appendix 5B

Mining exploration entity or oil and gas exploration entity quarterly cash flow report

Consolidated statement of cash flows	Current quarter $A’000	Year to date (9 months) $A’000
2.2 Proceeds from the disposal of: (a) entities (b) tenements (c) property, plant and equipment (d) investments (e) other non-current assets 2.3 Cash flows from loans to other entities 2.4 Dividends received (see note 3) 2.5 Other (provide details if material) 2.6 Net cash from / (used in) investing activities	- - - - - - - -	- - - - - - - -
	-	(2)
3. Cash flows from financing activities 3.1 Proceeds from issues of equity securities (excluding convertible debt securities) 3.2 Proceeds from issue of convertible debt securities 3.3 Proceeds from exercise of options 3.4 Transaction costs related to issues of equity securities or convertible debt securities 3.5 Proceeds from borrowings 3.6 Repayment of borrowings 3.7 Transaction costs related to loans and borrowings 3.8 Dividends paid 3.9 Other (provide details if material) 3.10 Net cash from / (used in) financing activities	- - - - - - - - -	- - 2,800 (1) - - - - -
	-	2,799
4. Net increase / (decrease) in cash and cash equivalents for the period
4.1 Cash and cash equivalents at beginning of period 4.2 Net cash from / (used in) operating activities (item 1.9 above) 4.3 Net cash from / (used in) investing activities (item 2.6 above) 4.4 Net cash from / (used in) financing activities (item 3.10 above)	4,438 (257) - -	2,937 (1,553) (2) 2,799

ASX Listing Rules Appendix 5B (17/07/20) + See chapter 19 of the ASX Listing Rules for defined terms.

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Appendix 5B

Mining exploration entity or oil and gas exploration entity quarterly cash flow report

Consolidated statement of cash flows	Current quarter $A’000	Year to date (9 months) $A’000
4.5 Effect of movement in exchange rates on cash held 4.6 Cash and cash equivalents at end of period	-	-
	4,181	4,181
5. Reconciliation of cash and cash equivalents at the end of the quarter (as shown in the consolidated statement of cash flows) to the related items in the accounts	Current quarter $A’000	Previous quarter $A’000
5.1 Bank balances 5.2 Call deposits 5.3 Bank overdrafts 5.4 Other (provide details) 5.5 Cash and cash equivalents at end of quarter (should equal item 4.6 above)	8 4,173 - -	4 4,434 - -
	4,181	4,438

6. Payments to related parties of the entity and their associates	6. Payments to related parties of the entity and their associates	6. Payments to related parties of the entity and their associates	Current quarter $A'000
6.1 Aggregate amount of payments to related parties and their associates included in item 1 199 6.2 Aggregate amount of payments to related parties and their associates included in item 2 - Note: if any amounts are shown in items 6.1 or 6.2, your quarterly activity report must include a description of, and an explanation for, such payments.			199
			-
7. 7.1 7.2 7.3 7.4 7.5 7.6	Financing facilities Note: the term “facility’ includes all forms of financing arrangements available to the entity. Add notes as necessary for an understanding of the sources of finance available to the entity. Total facility amount at quarter end $A’000 Amount drawn at quarter end $A’000 Loan facilities - - Credit standby arrangements - - Other (please specify) - - Total financing facilities - - Unused financing facilities available at quarter end - Include in the box below a description of each facility above, including the lender, interest rate, maturity date and whether it is secured or unsecured. If any additional financing facilities have been entered into or are proposed to be entered into after quarter end, include a note providing details of those facilities as well.	Total facility amount at quarter end $A’000	Amount drawn at quarter end $A’000
		-	-
		-	-
		-	-
		-	-

ASX Listing Rules Appendix 5B (17/07/20) + See chapter 19 of the ASX Listing Rules for defined terms.

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Appendix 5B

Mining exploration entity or oil and gas exploration entity quarterly cash flow report

8.	Estimated cash available for future operating activities	$A’000
8.1 8.2 8.3 8.4 8.5 8.6 8.7 8.8	Net cash from / (used in) operating activities (item 1.9) (257) (Payments for exploration & evaluation classified as investing activities) (item 2.1(d)) - Total relevant outgoings (item 8.1 + item 8.2) (257) Cash and cash equivalents at quarter end (item 4.6) 4,181 Unused finance facilities available at quarter end (item 7.5) - Total available funding (item 8.4 + item 8.5) 4,181 Estimated quarters of funding available (item 8.6 divided by item 8.3) 16 Note: if the entity has reported positive relevant outgoings (ie a net cash inflow) in item 8.3, answer item 8.7 as “N/A”. Otherwise, a figure for the estimated quarters of funding available must be included in item 8.7. If item 8.7 is less than 2 quarters, please provide answers to the following questions: 8.8.1 Does the entity expect that it will continue to have the current level of net operating cash flows for the time being and, if not, why not?	(257) - (257) 4,181 -
		4,181
	Answer: Not applicable
	8.8.2 Has the entity taken any steps, or does it propose to take any steps, to raise further cash to fund its operations and, if so, what are those steps and how likely does it believe that they will be successful?
	Answer: Not applicable
	8.8.3 Does the entity expect to be able to continue its operations and to meet its business objectives and, if so, on what basis?
	Answer: Not applicable
	Note: where item 8.7 is less than 2 quarters, all of questions 8.8.1, 8.8.2 and 8.8.3 above must be answered.

Compliance statement

• 1 This statement has been prepared in accordance with accounting standards and policies which comply with Listing Rule 19.11A.

• 2 This statement gives a true and fair view of the matters disclosed.

Date: 20 April 2022

Authorised by: Company Secretary

(Name of body or officer authorising release – see note 4)

Notes

1. This quarterly cash flow report and the accompanying activity report provide a basis for informing the market about the entity’s activities for the past quarter, how they have been financed and the effect this has had on its cash position. An entity that wishes to disclose additional information over and above the minimum required under the Listing Rules is encouraged to do so.

2. If this quarterly cash flow report has been prepared in accordance with Australian Accounting Standards, the definitions in, and provisions of, AASB 6: Exploration for and Evaluation of Mineral Resources and AASB 107: Statement of Cash Flows apply to this report. If this quarterly cash flow report has been prepared in accordance with other accounting standards agreed by ASX pursuant to Listing Rule 19.11A, the corresponding equivalent standards apply to this report.

3. Dividends received may be classified either as cash flows from operating activities or cash flows from investing activities, depending on the accounting policy of the entity.

4. If this report has been authorised for release to the market by your board of directors, you can insert here: “By the board”. If it has been authorised for release to the market by a committee of your board of directors, you can insert here: “By the [ name of board committee – eg Audit and Risk Committee ]”. If it has been authorised for release to the market by a disclosure committee, you can insert here: “By the Disclosure Committee”.

5. If this report has been authorised for release to the market by your board of directors and you wish to hold yourself out as complying with recommendation 4.2 of the ASX Corporate Governance Council’s Corporate Governance Principles and Recommendations , the board should have received a declaration from its CEO and CFO that, in their opinion, the financial records of the entity have been properly maintained, that this report complies with the appropriate accounting standards and gives a true and fair view of the cash flows of the entity, and that their opinion has been formed on the basis of a sound system of risk management and internal control which is operating effectively.

ASX Listing Rules Appendix 5B (17/07/20) + See chapter 19 of the ASX Listing Rules for defined terms.

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