CZR RESOURCES LTD — Capital/Financing Update 2018

Aug 2, 2018

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Coziron Resources Limited

ABN: 91 112 866 869 Level 24, 44 St George’s Terrace Perth Western Australia 6000 PO Box Z5183 Perth WA 6831 Phone: +61 8 6211 5099 Facsimile: +61 8 9218 8875 Website: www.coziron.com

The Company Announcements Office ASX Limited Via E Lodgement

3 August 2018

Coziron Secures Loan Facility of $1m to

Explore High Priority Vanadium and Gold Targets

HIGHLIGHTS

• CZR has extended the terms on its existing Convertible Note agreement with the Creasy Group to raise a further $1 million to continue exploration activities to be undertaken at the Company’s Buddadoo project near Geraldton WA and Croydon Top Camp Project near Karratha.

• Buddadoo Vanadium Project to be advanced towards the generation of a JORC-compliant resource with further drilling and metallurgical studies.

• Croydon Gold Project requires RC drilling of structural targets overlain by soils that are anomalous in gold, pathfinder elements (arsenic and antinomy) and have been worked by prospectors for an extended period.

• Company will continue negotiations with potential funding parties in relation to the development of its suit of Pilbara iron ore projects.

The Directors of Coziron Resources Limited (ASX:CZR) (“CZR” or “Company”) are pleased to announce that they have extended the current debt facility with the Company's largest shareholder, the Creasy Group, to raise a further $1 million. The funds will go towards further exploration activities on high priority targets for vanadiferous titanomagnetite mineralisation in the Buddadoo Gabbro and gold at Croydon Top Camp, along with general working capital.

The funding from the Company’s largest shareholder is considered advantageous given the multi commodity approach to the exploration being undertaken and ability to deliver further results while the Company continues negotiations with potential funding parties and stakeholders on its suit of Pilbara iron ore and gold opportunities.

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Buddadoo Vanadium Project Highlights

The 192km[2] Buddadoo Project (E59/1350) is located in the western Yilgarn, about 60km from a rail siding at Morawa that connects to ports at Geraldton to Kwinana (Fig 3). The tenement is serviced by a bitumen-road between the towns of Morawa and Yalgoo and a number of station tracks. During 2017, CZR mapped, commenced gridded soil sampling and rock-chipped outcrop from the eastern or basal part of the Buddadoo gabbro intrusion (fully reported to the ASX on 17/10/2017). The main target (Budd_gabbro_04) is a 6km long by 350m wide high-order magnetic anomaly that is generated by rocks containing bands of massive and disseminated, vanadiferous titanomagnetite mineralisation (Budd_Gabbro_04). The secondary target (Budd_Gabbro_06) covers a suite of subparallel, lower order magnetic anomalies about 500m to the east of Budd_gabbro_04 that have copper and nickel anomalism in addition to vanadium and titanium (Fig 1).

In the first half of 2018, the Company completed 28 RC drill-holes for a total of 2795 m (full details to the CZR:ASX on 28[th] Feb 2018, 21[st] March 2018 and 5[th] April 2018). Ten holes inclined at -60 to 250°, each to a depth of 200 m are located on four cross-sections to sample the geology in Budd_Gabbro_04 and eighteen holes, inclined -60 to 070°, each to a depth of 100 m are located on three cross-sections to sample the from Budd_Gabbro_06 (Fig 2). All the holes intercepted vanadiferous titanomagnetite mineralisation with higher vanadium contents reported along the eastern portion of the titanomagnetite-rich Budd_Gabbro_04.

The next phase of work will be to undertake follow-up drilling to generate a JORC-compliant resource focussed on the central to southern portion of the Budd_Gabbro_04. This is the interval where the drilling reported thicker intercepts with higher vanadium grade. Metallurgical work is also required to determine mass-yield and composition of the vanadiferous magnetite concentrate. The compositional characteristics of the concentrate will determine the optimal downstream processing options and identify potential customers for the concentrate.

Croydon Top Camp Gold Project Highlights

Coziron is acquiring a 70% interest in the 317 km[2] Croydon Top-Camp project located about 100 km south-east of Karratha in the Pilbara (CTCP, E45/2150) from Creasy Group (Fig 3). The tenement is subdivided into three blocks that cover a crustal-scale north-east trending fault-system which separates granitic rocks of the Pilbara Craton from deformed, metasedimentary rocks of the De Grey Superbasin (Fig 2). These rocks are then overlain in parts by a significantly younger suite of conglomeratic sediments and volcanics of the Fortescue Group.

The western block of the tenement is underlain by rocks in the De Grey Superbasin and the area has a long history of gold prospecting and small-scale mining activity. Some areas with greater evidence of prospector activity have been more systematically sampled using soils, rock-chip and auger methods. Results from these programmes are reported annually to the Geological Survey of Western Australia (described in detail CZR:ASX on 24-May-2018) and have been utilised by Coziron to outline prospects for future work. The most advanced prospect is Top Camp, where two sub-parallel +50ppb gold in auger-sample anomalies some 200m wide and 600-800 m long cover an area with extensive prospector activity above a major structural corridor. Other prospects such as Middle Camp, Golden Valley and Bottom Camp overlie areas of structural disturbance with supporting evidence for gold

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mineralisation shown by prospector activity, soil and rock-chip sample results. There is also the potential for gold bearing conglomerates along the basal contact of the Fortescue Volcanics that can be evaluated by mapping and sampling.

The next field programme will focus on the core areas from the more advanced anomalies and establish targets to commence RC drilling.

Summary of Loan Terms

The debt facility is an extension to the Convertible Note entered into earlier in the year (See ASX Announcement 31 January 2018). The following terms now cover the full $2 million advanced under the Convertible Note :

1. The new funds will be received in a single advance of $1,000,000 on or about 2 August 2018; 2. Interest at 10% is payable on any advance;

2. The term is 6 months;

3. The Lender has the option of securing the loan over the Company’s assets;

4. Repayment of the Loan (and any accrued interest) must be made in cash, unless the lender elects, at its sole discretion, that repayment be made in shares or a combination of both. The shares to be issued will be at the lower of $0.02, or the price at which the Company completes a capital raising during the term of the loan, and be subject to shareholder approval; and

5. The Company may repay the advances made at any time prior to the last repayment date, which is 6 months after the advance is made, unless an extension is agreed in writing by both parties.

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Fig 1. Location of the recently completed RC drill-holes and the traces of Budd_Gabbro_04 and Budd_Gabbro_06 overlain on satellite imagery covering the Buddadoo gabbro intrusion and adjacent area.

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Fig 2. Croydon Top-Camp project (E47/2150) showing location of gold occurrences from the Geological Survey of Western Australia in sediments of the DeGrey Superbasin separated by a crustal-scale fault from granitic rocks of the Pilbara Craton and overlain by younger rocks of the Fortescue Group (Geology from GSWA digital 1:100K mapping).

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Fig 3. Location of the Buddadoo Project in the western Yilgarn and Croydon Top-Camp Project in the Pilbara regions of Western Australia.

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ABOUT COZIRON RESOURCES LIMITED

Coziron Resources Limited has exploration focussed on the Yarraloola (853km[2] of granted tenements), Buddadoo (210km[2] granted) Shepherd Well (193km[2] ) and Yarrie (357.5km[2] ) projects and has an Agreement in place to acquire the Croydon Top Camp project.

For further information regarding this announcement please contact Adam Sierakowski or Rob Ramsay on 08 6211 5099.

Competent Persons Statement

The information in this report that relates to mineral resources and exploration results is based on information compiled by Rob Ramsay (BScHons, MSc, PhD) who is a Member of the Australian Institute of Geoscientists. Rob Ramsay is a full-time Consultant Geologist for Coziron and has sufficient experience which is relevant to the style of mineralisation and type of deposit under consideration and to the activity which 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”. Rob Ramsay has given his consent to the inclusion in this report of the matters based on the information in the form and context in which it appears.

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