DELTA LITHIUM LIMITED — Capital/Financing Update 2019

Jul 23, 2019

ASX Announcement 24 July 2019

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TNT ACQUIRES HOT SPUR EXPLORATION PROJECT, NEVADA Targeting high grade base & precious metals

Highlights:

• North American strategy advances with acquisition of Hot Spur Project, Nevada

• 100% ownership via 70 unpatented mining claims, potential to increase strategic land position

• Classic “under cover” exploration potential with world-class address:

• 9km west of the operating 5Moz Bald Mountain Gold Mine and extensive hydrothermal system

• Abutting & immediately north of Pasinex Resources Ltd’s Spur Zinc Project that has reported intersections to 43.9m at 14.2% Zn including 13.7m at 26.1% Zn from 43.3m[1]

• Spur is primarily targeted as a high-grade zinc carbonate replacement deposit

• Hot Spur project area is soil-covered & offers excellent untested strike targets for base metals & gold

• Simple & relatively inexpensive geological model to test

• Consistent with TNT’s strategy targeting world class metal deposits in under-explored yet highly prospective terrains in North America

• Nevada rated #1 jurisdiction for mining investment in the world in 2018 Fraser Institute Survey[2]

TNT Mines Ltd (ASX: TIN, “TNT” or “the Company”) , is pleased to announce that it has acquired the Hot Spur base and precious metals project, located in White Pine County, Nevada, USA (Figure 1), as part of its strategy to build a portfolio of North American mining and exploration assets.

Prospective for carbonate-hosted gold and base metal deposit styles

The Hot Spur Project is targeting highly prospective geology within the Carlin Trend (Figure 2) in a geological setting that contains structures that are known to host fertile geology and multiple gold, silver and Cu-Au mineral systems.

TNT identified and has acquired a significant “under cover” exploration position located in low lying terrain on the eastern flank of the Diamond Range (Figure 3) to the north of and along strike from the Spur Zinc Project of Canadian company Pasinex Resources Ltd ( CSE code: PSE and FSE code: PNX), and immediately to the west of Kinross Gold Corporation’s Bald Mountain Mine , one of the largest active gold mines in the United States.

1 For full announcement refer to “Pasinex makes new zinc sulphide discovery at the Spur Project in Nevada and verifies high grade zinc oxides: 43.9 metres @ 14.2% zinc including 13.7 metres @ 26.1% zinc and 5.6 ounces of silver” announced September 11[th] , 2018 (CSE code: PSE and FSE code: PNX).

2 Source: Fraser Institute Annual Survey of Mining Companies, 2018

ASX Announcement 24 July 2019

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Figure 1. General location map of Hot Spur Project over Google Earth image

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Figure 2. Carlin Deposit Corridors

ASX Announcement 24 July 2019

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Figure 3. Regional geology map

Bald Mountain is an intrusive related mineralised system contained a pre-mining resource endowment of five million ounces of gold, and is currently producing approximately 285,000 ounces of gold per year. Bald Mountain lies in the adjoining range, some 9km to the east and comprises a number of commercial deposits within a multi-kilometre scale alteration system that overprints surrounding carbonate and siltstone sedimentary rocks.

The Spur Zinc Project is considered to be an example of a high-grade Carbonate Replacement Deposit (CRD) style zinc system where multiple significant zinc intercepts have been reported from a prospective fault-bound carbonate package. Mineralisation is located alongside range-bounding fault structures and close to onlapping transported cover. Significant intercepts reported include 43.9m at 14.2% Zn from 43.3m, including 13.7m at 26.1% Zn from 48.8m in drill hole SRDD-2018-001 (for full announcement refer to: “ Pasinex makes new zinc sulphide discovery at the Spur Project in Nevada and verifies high grade zinc oxides: 43.9 metres @ 14.2% zinc including 13.7 metres @ 26.1% zinc and 5.6 ounces of silver” announced September 11[th] 2018 (CSE code: PSE and FSE code: PNX).

CRD systems can achieve significant scale. For example the Taylor deposit, part of the Hermosa Project (155-million tonnes, grading 3.39% zinc, 3.67% lead, 69 g/t silver for some 5.3-million tonnes of zinc, 5.7-million tonnes of lead and 344million tonnes of silver) in neighboring Arizona, was sold by Arizona Mining to South 32 for USD$1.3 billion in 2018 (see ASX code: S32 Announcement: “South32 completes acquisition of Arizona Mining” released August 13[th] 2018).

Hot Spur

TNT’s claim group is located immediately along strike from the Spur system and the host geological sequence is interpreted to trend into the project area. Despite boasting prospective geology (the right type, structure and age rocks to host mineralisation), the project area has never previously been explored due to relatively thin cover (‘pediment’) masking geology. TNT is also reviewing the potential to add to this strategic acreage position.

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ASX Announcement 24 July 2019

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The pediment cover present at the project is not dissimilar to typical Australian “under cover” exploration plays, with exploration led by geophysics and low-cost exploration drilling.

A review of previous drilling into the pediment adjacent to Spur and between Spur and Bald Mountain indicates that cover material is likely to be approximately 20-100m thick (thickening to the east).

Geology

Hot Spur is interpreted to host the pediment-covered north-trending continuation of the host geological sequence at the Spur Zinc Project, covering an area of Permian carbonates and clastic rocks over-thrusted on a steeply dipping carbonate sequence. The geology of the property is dominated by a broad north-south plunging syncline with sandstone-conglomerate in the core (Figure 4). The main body of mineralisation within the Pasinex tenure to the south appears is interpreted to be controlled by a steep fault set that trends sub-parallel to range front extensional faulting. Pasinex has intersected metal mineralisation along the eastern limb of the fold, and potential is seen into the fold hinge.

TNT recognises significant exploration potential for strike-extensions of Spur style zinc mineralisation and/or new carbonate hosted gold or basemetal mineralisation in the broader Bald Mountain alteration halo.

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Figure 4. Simplified cross-section showing the structural setting of Spur carbonate replacement zinc mineralisation

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ASX Announcement 24 July 2019

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In summary the new Hot Spur Project offers :

• Untested drill-targets along strike from known high-grade base metal mineralisation

• Near a major fault zone close to the junction of the Carlin and Ruby Mountain Trends, and adjacent to the significant Bald Mountain gold deposit and alteration system

• Simple & relatively inexpensive testing via aircore or RC drilling

• Excellent logistics and infrastructure – main road runs through the property (see Figure 1)

• Located in Nevada, the most mining friendly state in the USA

TNT Executive Chairman Brett Mitchell said: “ We are very pleased to have added a second North American exploration project to the portfolio, particularly one in arguably the best mining jurisdiction in the world that has never previously been explored. When you factor in Hot Spur’s proximity to some world-class mineral deposits and exploration projects, it makes for an exciting proposition.”

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Figure 5. Photo taken within Hot Spur looking East towards Bald Mountain gold mine.

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ASX Announcement 24 July 2019

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Hot Spur Exploration Program – Next Steps

TNT intends to acquire available geophysical data and will then decide whether to conduct ground geophysics or to conduct a low-cost aircore or RC drill program to map geology and geochemical trends beneath pediment cover.

Additional project generation work is continuing with an aim to increase TNT’s land position along the corridors of high prospectivity in the Hot Spur corridor.

Hot Spur joins the Pelley Ridge zinc project in Montana as North American exploration projects in the TNT portfolio. Planning is underway for TNT’s maiden drilling program at Pelley Ridge following the identification of several significant IP geophysical anomalies defined beneath the known gossan and mineralisation.

Hot Spur acquisition terms

The Company has agreed to the following success-based formula with the Project Generator (NV Resources & Nedeel LLC).

• (a) 2% Expenditure Fee: TNT shall pay the Project Generator the amount of two percent (2%) of all exploration and development work expenditures (i.e. $20,000 fee per $1,000,000 spent on the project) that are subject to approval by the Directors of TNT incurred until the commencement of Commercial Production (Fee).

• (b) The 2% Expenditure Fee converts to a 2% Net Smelter Royalty upon Commercial Production.

• (c) The Company shall have the option to purchase the Fee. The price payable for the Fee and Royalty, if purchased within the next four years, is USD$2,000,000.

--Ends—

The information in this announcement that relates to Exploration Targets, Exploration Results, Mineral Resources or Ore Reserves is based on information compiled by Ms Cherie Leeden, who is consulting Technical Director of the Company and shareholder of NV Resources. Ms Leeden is a Member of the Australian Institute of Geoscientists and has sufficient experience of relevance to the styles of mineralisation and the types of deposits under consideration, and to the activities undertaken, to qualify as a Competent Person as defined in the 2012 Edition of the Joint Ore Reserves Committee (JORC) Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves. Ms Leeden consents to the inclusion in this report of the matters based on their information in the form and context in which it appears.

Ms Cherie Leeden has reviewed the historical exploration results that are contained in this announcement and has validated the source of the historical information. Ms Cherie Leeden is satisfied with its inclusion in the form and context in which it appears in this announcement.

For further information, please contact:

Media Enquiries TNT Mines Ltd Luke Forrestal Brett Mitchell Media and Capital Partners Executive Chairman +61 411 479 144 +61 8 6319 1900 luke.forrestal@mcpartners.com.au frontdesk@tntmines.com.au

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TNT Mines | ACN 107 244 039 | tntmines.com.au
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