CRITICAL RESOURCES LIMITED — Interim / Quarterly Report 2021

Jul 25, 2021

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ASX ANNOUNCEMENT

26 July 2021

About Critical Resources

Critical Resources Limited is a Perth based exploration and development company listed on the Australian Stock Exchange (ASX Code: CRR) and is focused on base metals exploration and project development.

June 2021 QUARTER REVIEW OF OPERATIONS

ACTIVITIES REPORT FOR THE QUARTER ENDED 30 June 2021

Critical Resources Limited (ASX Code: CRR) (“ Critical ” or the “ Company ”) provides its activities report for the quarter ended 30 June 2021.

Summary

Project Summary

Sohar (Block 4 & 5) Project (Copper) – Oman Halls Peak-Gibson Project (ZincLead- Silver-Copper) - Australia.

Directors and Management

Mr Robert Martin – Chairperson Mr Alex Biggs – Chief Executive Officer

Mr Jihad Malaeb - Director Mr Michael Leu – Director Mr Jeremy Whybrow - Director Mr Chris Achurch – Company Secretary

Capital Structure

Shares on Issue:

-1,053,345,302 fully paid ordinary

Options on Issue:

• -40,000,000 exercisable @$0.02 expiring 31 October 2021 -3,334,000 exercisable @$0.025 expiring 3 November 2022 -1,300,000 exercisable @$0.05 expiring 30 June 2024 -1,300,000 exercisable @$0.07 expiring 30 June 2024 -5,000,000 exercisable @$0.10 expiring 30 June 2024

Appointment of CEO

• Alexander Biggs appointed as Chief Executive Officer

Name change

• The Company changed its name to Critical Resources Limited (ASX CRR)

Halls Peak-Gibson Project - Australia

• Reinterpretation of previous geophysical data completed with new targets developed at Gibsons and Sunnyside

• Drill program developed for 4,200m at Gibsons and Sunnyside

• Austwide appointed as tenement managers and to assist with permitting for the upcoming drill program

Sohar Block 4 and 5 Project – Sultanate of Oman

• During the period Critical was informed that the renewal of the Block 4 licence, which the Company holds 51%, will be subject to public tender.

• Block 5 minimum expenditure already met for its annual reporting period ending in August 2021

• Kenex continue to perform prospectivity reviews for Block 4 and Block 5

Project Generation

Performance Rights on Issue

• -30,000,000 Director and Company Secretary Performance Rights -10,000,000 CEO Performance Rights

• Seeking suitable base metals, gold and copper exploration and development opportunities. The Company continues to assess projects that would be complimentary to its business

Critical Resources Ltd | 45 Ventnor Avenue, West Perth, WA, 6005 | P: +61 9389 4499 | web:criticalresources.com.au | Email: admin@criticalresources.com.au | ABN 12 145 184 667 | ASX:CRR

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Appointment of CEO

• As advised on 8 June 2021, Alexander Biggs was appointed as Chief Executive Officer.

Alexander is a BEng (Hons) qualified Mining Engineer, educated at the Western Australian School of Mines. He has experience in operations, consulting and finance with a focus on feasibility studies, budgeting, financial modelling, project evaluation and project management. He also has experience in capital raising, both equity and debt as well as deal structuring and significant commercial expertise. Alexander has a strong focus on underground and open pit hard rock mining in multiple commodities.

The appointment of Mr Biggs marks a clear intention by the company to explore its Halls Peak and Oman assets and delineate economic mining opportunities for the Company and its shareholders.

Mr Biggs commented, “The recent work on reinterpreting previous geophysical data has yielded some excellent targets at both our Gibsons and Sunnyside prospects at Halls Peak. These targets present a clear path forward for the company and we look forward to keeping the market updated on our progress. In regard to Oman, our assets present a strong opportunity to gain exposure to the currently strong copper market. The Company is evaluating a number of commercialisation and joint venture opportunities in country that can add value to our assets in the near term.”

Halls Peak-Gibson Project- Australia

• Reinterpretation of 2012 VTEM data has yielded multiple targets which are to be tested in the upcoming drill program. None of these targets have been previously tested.

• Near surface drilling around the Gibsons Mine has produced some exceptional high-grade base metal intercepts. The Company is of the opinion that this mineralisation is indicative of a larger and more prospective system at depth.

• This view is supported by large conductive zones defined by a VTEM survey comprising 1,221 line kilometres conducted in 2012. Of particular interest is the fact that large, flat lying conductive zones are bounded by faults, these features are known to be important in sedimentary exhalative deposits. Numerous conductors defined by this survey remain untested, by further geophysical methods to better define them, or by drilling.

Sohar Block 4 and 5 – Sultanate of Oman

• The Company was advised that renewal of the exploration license over Block 4 of which the Company holds a 51% interest will be subject to public tender. This reflects the Minerals Department’s latest strategy of producing new concession blocks for various mineral ores and then offering them for public tender. The Company continues to liaise with the Omani Mining Authority and will update the market in due course, reserving all its legal rights.

• Block 5 minimum expenditure had already been met at 30 June 2021, for the annual reporting period ending in August 2021.

• The Company’s geologists and external consultants continue their work on prospectivity reviews for both Block 4 and Block 5 in Oman. Areas have been delineated for future work programs based on aerial magnetics and ground checking of areas previously unexplored.

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• Joint venture and commercialisation opportunities have been evaluated during the period as the Board and Management continue to assess the Company’s Oman assets, their economics and the best path forward for any proposed development in this area.

PROJECT SUMMARY

1. HALLS PEAK-GIBSON PROJECT – AUSTRALIA

The Halls Peak-Gibson Project comprises granted Exploration Licenses EL 4474 and EL 7679, located in north-eastern NSW and covering an area of about 84km[2] .

The Halls Peak-Gibson Project area contains several known occurrences of base metals rich in zinc and lead with varying associated levels of copper, silver and gold.

The Company has completed a significant data review over the quarter involving reinterpretation of geophysical data that has yielded clear targets for exploration drilling. A drill program has been designed for both the Gibsons (2,500m) and Sunnyside (1,500m) prospects and permitting is underway.

Project Highlights

• Reinterpretation of VTEM data has yielded excellent exploration drilling targets.

• Project located in New England Fold Belt, a prolific mineral rich region.

• Previous historic mining and exploration has returned high-grade massive sulphides.

• Exploration to a maximum of 150m below surface – deeper potential is untested.

• Drill programs designed for Gibsons and Sunnyside and in permitting stage.

2. SOHAR COPPER PROJECT (Block 4 and Block 5) - OMAN

On 4 November 2020, the Company announced that it had completed the transaction announced on 1 September 2020 to acquire 100% of Savannah’s interests in the Block 4 and Block 5 copper projects in Oman (the “ Projects ”) from Savannah Resources plc (“ Savannah ”).

Project Highlights

• The Company acquired 100% of Savannah’s subsidiary, Savannah Resources B.V., which via its subsidiaries has a 51% interest in Block 4 (granted Exploration Licence), a 65% interest in Block 5 (granted Exploration Licence and 2 Mining Lease applications) and a 70% interest in two Exploration Licence applications near Block 10 to the west of Blocks 4 and 5.

• The Projects cover 999 km² of the copper-rich Ophiolite belt, proven to host clusters of relatively high grade VHMS copper deposits. Ores within these deposits are metallurgically simple and contain gold and silver credits.

• Measured, Indicated and Inferred Mineral Resources (2012 JORC) of 0.82Mt at 3.4% Cu (including a high-grade zone of approximately 0.5Mt at 4.5% Cu) are in two deposits within

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Block 5. Contained metal is reported at 28,000 tonnes of Copper, 5,900 ounces of Gold and 220,000 ounces of Silver (Table 1-3).

3. TSHIMPALA PROJECT – MALAWI

No work was completed on the project during the quarter.

4. KITOTOLO-KATAMBA PROJECT – DEMOCRATIC REPUBLIC OF CONGO

No work was completed on the project during the quarter.

5. KANUKA PROJECT – DEMOCRATIC REPUBLIC OF CONGO

No work was completed on the project during the quarter.

6. PROJECT GENERATION

Project generation continues to advance, with several new project opportunities in copper and base metals reviewed during the quarter. The Company will continue to assess any projects that would be complimentary to its business.

7. CORPORATE AND FINANCE

Company name change

Following shareholder approval, the Company changed its name to Critical Resources Limited (ASX: CRR), effective Tuesday 1 June 2021

Cash at Bank

Cash at bank at 30 June 2021 - $1.504 million

Shares on Issue

During the quarter ended 30 June 2021, 34,444,444 options exercisable at $0.02 and expiring 30 June 2021 were exercised into ordinary shares, raising $688,889. 2 options lapsed unexercised.

Fully paid ordinary shares on issue totalled 1,053,345,302 at 30 June 2021

Options on Issue

As at 30 June 2021, options on issue were:

40,000,000 exercisable at $0.02; expiring 31 October 2021

3,334,000 exercisable at $0.025; expiring 3 November 2022

1,300,000 exercisable at $0.05; expiring 30 June 2024

1,300,000 exercisable at $0.07; expiring 30 June 2024

5,000,000 exercisable at $0.10; expiring 30 June 2024

Performance Rights on Issue

As at 30 June 2021, performance rights on issue were:

30,000,000 Director and Company Secretary Performance Rights

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10,000,000 CEO Performance Rights

8. MATERIAL EVENTS SUBSEQUENT TO THE END OF QUARTER

There were no material events subsequent to the end of the quarter.

GUIDENCE NOTE 23 DISCLOSURES

Details of mining exploration activities

Details of exploration activities during the quarter are set out above.

The $121,000 amount of exploration and evaluation expenditure capitalised is comprised of expenditure relating to geological staff salaries, tenement administration and maintenance, IP survey, diamond drilling and assaying, exploration programme generation/administration, drone magnetic surveys, geophysical data reprocessing and geological interpretations.

Details of mining production and development activities

No production and development activities were undertaken during the quarter.

Details of tenement activities

The tenement schedule included on the following page shows all holdings and any change for the Company and its subsidiaries.

Details of related party payments

The aggregate amount of payments to related parties and their associates included in the current quarter cash flows from operating and investing activities was $55,000, comprising Directors and consultancy fees.

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9. SCHEDULE OF MINERAL TENEMENTS AS AT 30 JUNE 2021

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Licence No. Project / Location Acquired Disposed Interest at
Interest interest end of
during during Quarter
quarter quarter
EL 4474 Halls Peak, NSW - - 100%
EL 7679 Halls Peak, NSW - - 55.7%
PE 13247 [(1)] Kitotolo, DRC - - 70%
PR 12453 [(1)] Kitotolo, DRC - - 70%
PE 13082 [(2)] Kanuka, DRC - - 51%
PR 4100 [(2)] Kanuka, DRC - - 51%
EPL 479 Tshimpala, Malawi - - 51% [(3)]
EPL 483 Tshimpala, Malawi - - 51% [(3)]
EPL 484 Tshimpala, Malawi - - 51% [(3)]
-
AML 0029 Tshimpala, Malawi - - 51% [(3)]
Block 5 Oman - - 65%
Block 4 Oman - - 51%
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• (1) legal transfer of the tenements has been affected; official recording of tenements in DRC Mines Department system has not yet occurred

• (2) tenements are held by joint venture partner, with Critical having a 51% joint venture interest in the Lithium rights only

• (3) tenement at risk of vendor take-back under the terms of share sale and purchase agreement

This report has been authorised for release to ASX by the Chairman.

ENDS

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Figure 1: Halls Peak Project Location

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Figure 2: Historical Drilling at Gibsons Prospect

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Figure 3: Gibsons geophysical targets demonstrating three sections at 100m intervals

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Section 407500mE
Section 407600mE
Section 407700mE
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Figure 4: Sunnyside geophysical targets and planned drill holes

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Figure 5: Sunnyside geophysical targets demonstrating three sections at 100m intervals
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Section 406300mE
Section 406400mE
Section 406500mE
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Figure 6: Oman Tenement Location Plan

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Table 1: Mahab 4 Mineral Resource Estimate 0.5% Cu Cut-off

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Tonnes Cu Au Ag Cu Au Ag
Domain
t % ppm ppm tonnes Ounces Ounces
Oxide Domain
Measured
Indicated 22,000 0.2 1.4 14 40 1,000 10,000
Inferred
Total Oxide 22,000 0.2 1.4 14 40 1,000 10,000
Supergene Domain
Measured
Indicated 11,000 14.8 1.1 41 1,700 400 15,000
Inferred
Total Supergene 11,000 14.8 1.1 41 1,700 400 15,000
Massive Sulphide Domain
Measured 307,000 5.3 0.3 14 16,300 3,000 143,000
Indicated 60,000 4.6 0.3 15 2,800 600 29,000
Inferred
Total Massive Sulphide 367,000 5.2 0.3 15 19,100 3,600 172,000
Disseminated Domain
Measured
Indicated 64,000 0.6 0.05 2 400 100 4,000
Inferred 234,000 0.7 0.02 1 1,700 200 6,000
Total Disseminated 297,000 0.7 0.03 1 2,000 300 10,000
All Domains
Measured 307,000 5.3 0.3 14 16,300 3,000 143,000
Indicated 157,000 3.1 0.4 11 4,900 2,100 58,000
Inferred 234,000 0.7 0.2 1 1,700 200 6,000
Total Mahab 4 Deposit 698,000 3.3 0.2 9 22,800 5,300 207,000
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• Oxide reported at 0.5 ppm Au Cut-off

Table 2: Maqail South Mineral Resource Estimate 0.5% Cu Cut-off

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Tonnes Cu Au Ag Cu Au Ag
Domain
t % ppm ppm tonnes Ounces Ounces
Massive Sulphide Domain
Measured
Indicated 121,000 4.2 0.2 3 5,100 600 13,000
Inferred
Total Maqail South
Deposit 121,000 4.2 0.2 3 5,100 600 13,000
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Table 3: Total Mineral Resource Estimate 0.5% Cu Cut-off

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Tonnes Cu Au Ag Cu Au Ag
Classification
t % ppm ppm tonnes Ounces Ounces
Measured 307,000 5.3 0.3 14 16,300 3,000 143,000
Indicated 279,000 3.6 0.3 8 10,000 2,700 70,000
Inferred 234,000 0.7 0.02 1 1,700 200 6,000
Total Project 819,000 3.4 0.2 8 28,000 5,900 220,000
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Table 4: Significant Copper Assay Results - Oman

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Hole Id Prospect Northing Easting RL Dip Azimuth EOH From To Interval Grade Cu Sulphide
(mN) (mE) (ASL) (Degrees) (Degrees) (m) (m) (m) (m) (%Cu) (Type)
20B5DD001 Mahab 4 2656158 468753 226 -61 250 42 25 31.8 6.8 3.44 Massive
including 25 27 2 8.08 Massive
35.65 41 5.35 3.43 Massive
20B5DD001R Mahab 4 2656157 468757 226 -60 250 132 24 37 13 5.6 Massive
including 25 27 2 15.7 Massive
and 35 37 2 9.11 Massive
37 60 23 0.79 Disseminated
78 124 46 0.99 Disseminated
20B5DD002 Hara kilab 2659947 464563 214 -90 0 50 18 26.3 8.3 1.34 Massive
20B5DD004 Hara kilab 2659938 464559 214 -70 360 41.5 19 26 7 1.26 Massive
21.7 23 1.3 2.28 Massive
20B5DD005 Mahab 4 2656101 468765 224 -62 216 70 29 65.4 36.4 2.80 Massive
46 56 10 4.80 Massive
20B5DD006 Mahab 4 2656101 468765 224 -66 270 77.5 11 60 49 4.50 Massive
including 19.2 53 33.8 6.10 Massive
20B5DD007 Mahab 4 2656361 468755 219 -60 240 150.00 Not Sampled
20B5DD008 Mahab 4 2659864 464765 214 -90 0 60.00 Not Sampled
20B5DD009 Hara kilab 2659931 464569 214 -70 350 42 5 7 2 2.30 Massive
19 27 8 3.40 Massive
20B5DD010 Hara kilab 2659913 464541 214 -70 35 62.7 No Significant Assays
20B5DD011 Hara kilab 2659934 464538.8 214 -70 35 44.7 22 23 1 1.26 Massive
34 35 1 1.25 Massive
20B5DD012 Hara kilab 2659954 464532 214 -70 35 35.7 21 28.9 7.9 1.39 Disseminated
including 23 25 2 2.39 Massive
20B5DD013 Hara kilab 2569931 464505 214 -70 35 55 No Significant Assays
20B5DD014 Hara kilab 2659960 464490 214 -70 35 44.7 15 17 2 0.56 Disseminated
28.45 29.2 0.75 0.92 Disseminated
20B5DD015 Hara kilab 2659968 464472.4 214 -70 35 44.7 No Significant Assays
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Table 5: Significant Gold Assay Results - Oman

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Hole Id Prospect Northing Easting RL Dip Azimuth EOH From To Interval Grade
(mN) (mE) (ASL) (Degrees) (Degrees) (m) (m) (m) (m) g/t Au
20B5DD001R Mahab 4 2656157 468757 226 -60 250 132 5 37 32 1.05
including 16 25 9 2.22
20B5DD002 Hara kilab 2659947 464563 214 -90 0 50 No Significant Assays
20B5DD004 Hara kilab 2659938.039 464559 214 -70 360 41.5 No Significant Assays
20B5DD005 Mahab 4 2656101 468765 224 -62 216 70 29 65.4 36.4 0.30
20B5DD006 Mahab 4 2656101 468765 224 -66 270 77.5 11 60 49 0.30
20B5DD007 Mahab 4 2656361 468755 219 -60 240 150.00 Not Sampled
20B5DD008 Mahab 4 2659864 464765 214 -90 0 60.00 Not Sampled
20B5DD009 Hara kilab 2659931 464569 214 -70 350 40 5 7 2 0.10
19 27 8 0.10
20B5DD010 Hara kilab 2659913 464541 214 -70 35 62.7 No Significant Assays
20B5DD011 Hara kilab 2659934 464538.8 214 -70 35 44.7 22 23 1 0.07
34 35 1 0.05
20B5DD012 Hara kilab 2659954 464532 214 -70 35 35.7 21 28.9 7.9 0.09
including 23 25 2 0.07
20B5DD013 Hara kilab 2569931 464505 214 -70 35 55 No Significant Assays
20B5DD014 Hara kilab 2659960 464490 214 -70 35 44.7 15 17 2 0.05
28.45 29.2 0.75 0.09
20B5DD015 Hara kilab 2659968 464472.4 214 -70 35 44.7 No Significant Assays
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Figure 7: Cross Section of Mahab 4 with completed diamond drill hole 20B5DD006. Orebody in red.

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Figure 8: Cross Section Mahab 4 with completed diamond drill holes 20B5DD005

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Competent Person Statement

The Information in this ASX Announcement that relates to Exploration Results is based on information compiled by Mr Michael Leu, a Competent Person who is a Member of the Australasian Institute of Mining and Metallurgy. Mr Leu is a full-time employee of Critical Resources Limited. Mr Leu has sufficient experience that is relevant to the style of mineralisation and 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 Leu consents to the inclusion in this ASX Announcement of the matters based on his information in the form and context in which it appears.

The Information in this report that relates Mineral Resources is based on information compiled by Mr Paul Payne, a Competent Person who is a Fellow of the Australasian Institute of Mining and Metallurgy. Mr Payne is a full-time employee of Payne Geological Services. Mr Payne has sufficient experience that is relevant to the style of mineralisation and 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 Payne consents to the inclusion in the report of the matters based on his information in the form and context in which it appears.

JORC Code Compliant Reports

The information regarding the Mineral Resource is extracted from the report entitled “Force to Acquire High Grade Copper Projects in Oman” created 1 September 2020 and is available to view on www.criticalresources.com.au. The Company confirms that it is not aware of any new information or data that materially affects the information included in the original market announcement and, in the case of estimates of Mineral Resources or Ore Reserves, that all material assumptions and technical parameters underpinning the estimates in the relevant market announcement continue to apply and have not materially changed. 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 announcement.

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Forward looking statements

Information included in this release constitutes forward-looking statements. Often, but not always, forward looking statements can generally be identified by the use of forward looking words such as “may”, “will”, “expect”, “intend”, “plan”, “estimate”, “anticipate”, “continue”, and “guidance”, or other similar words and may include, without limitation, statements regarding plans, strategies and objectives of management, anticipated production or construction commencement dates and expected costs or production outputs.

Forward looking statements inherently involve known and unknown risks, uncertainties and other factors that may cause the Company’s actual results, performance and achievements to differ materially from any future results, performance or achievements. Relevant factors may include, but are not limited to, changes in commodity prices, foreign exchange fluctuations and general economic conditions, increased costs and demand for production inputs, the speculative nature of exploration and project development, including the risks of obtaining necessary licences and permits and diminishing quantities or grades of reserves, political and social risks, changes to the regulatory framework within which the company operates or may in the future operate, environmental conditions including extreme weather conditions, recruitment and retention of personnel, industrial relations issues and litigation.

Forward looking statements are based on the Company and its management’s good faith assumptions relating to the financial, market, regulatory and other relevant environments that will exist and affect the Company’s business and operations in the future. The Company does not give any assurance that the assumptions on which forward looking statements are based will prove to be correct, or that the Company’s business or operations will not be affected in any material manner by these or other factors not foreseen or foreseeable by the Company or management or beyond the Company’s control.

Although the Company attempts and has attempted to identify factors that would cause actual actions, events or results to differ materially from those disclosed in forward looking statements, there may be other factors that could cause actual results, performance, achievements or events not to be as anticipated, estimated or intended, and many events are beyond the reasonable control of the Company. Accordingly, readers are cautioned not to place undue reliance on forward looking statements. Forward looking statements in these materials speak only at the date of issue. Subject to any continuing obligations under applicable law or any relevant stock exchange listing rules, in providing this information the company does not undertake any obligation to publicly update or revise any of the forward-looking statements or to advise of any change in events, conditions or circumstances on which any such statement is based.

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