EAGLE MOUNTAIN MINING LIMITED — Capital/Financing Update 2021

Apr 21, 2021

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A S X A n n o u n c e m e n t | 2 2 A P R I L 2 0 2 1

Accelerating Drilling at Oracle Ridge

Highlights

• Second Boart Longyear diamond drill rig planned to mobilise to site by 10 May 2021

• Three-fold increase in drilling expected when both rigs transition to full-time drilling from June 2021

• Three additional drill rigs planned to be onsite by end of Q4 2021 for a total of 5 drill rigs

• Accelerated diamond drilling program aims to:

• Expand the existing JORC Resource;

• Establish a Measured Resource category in the next Mineral Resource Estimate;

• Drill test high-priority targets within a few kilometres of the existing mine; and

• o Assist in vectoring towards potential deeper sources of mineralisation.

• The Company is well funded for the accelerated drilling program following the capital raising of $11 million announced in February 2021.

Eagle Mountain’s Chief Executive Officer Tim Mason said:

“Our recent drilling and exploration results at Oracle Ridge indicate the very strong potential for Oracle Ridge to host increased levels of mineralisation. We have recently completed extensive earthworks to improve access and establish suitable drill pads in preparation for our accelerated drilling program.

Since commencing drilling in September 2020, more than 90% of the holes assayed outside the existing JORC Resource have intersected mineralisation above our cut-off grade. We are also building a strong pipeline of targets including the recently announced high-grade copper mineralisation outcropping at the OREX prospect along a four-kilometre contact. These results give us confidence to accelerate our drilling with the aim of increasing our existing JORC Resource and evaluating the extraordinary potential of the near-mine area.“

Eagle Mountain Mining Limited ( ASX:EM2 ) (“ Eagle Mountain ”, the “ Company ”) is pleased to announce the proposed acceleration of exploration drilling at its Oracle Ridge Project in Arizona. The Company has been drilling since September 2020 with one drill rig on a 20 day on, 10 day off roster on both day and night shifts. The planned increase in diamond drilling includes a transition to a continuous drilling schedule to maximise productivity.

The decision to accelerate diamond drilling at Oracle Ridge is supported by multiple strong assay and drilling results and an increasing pipeline of high priority targets within a few kilometres of the existing underground mine portals.

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The accelerated exploration program will concentrate on the following areas:

• Leatherwood Contact – The discovery of strong mineralisation along the Leatherwood contact in the southern area of Oracle Ridge indicates significant potential for further mineralisation in this area of the Project. Some of the recent assays in this area include:

  • WT-21-06 – 34.4% Cu, 367g/t Ag and 26.2g/t Au over 0.4m within a broader zone of 12.7m at 3.96% Cu, 49.1g/t Ag and 1.4g/t Au (refer ASX announcement 31 March 2021).

  • WT-21-10 – 11.55% Cu, 273g/t Ag and 5.41g/t Au over 1.5m in WT-20-10 within a broader zone of 13.3m at 2.43% Cu, 52.6g/t Ag and 0.94g/t Au (refer ASX announcement 22 December 2020).

  • As this is a new discovery, metallurgical testwork will also be undertaken on some of these holes to assess variability from the existing resource areas.

• Resource Upgrade – Infill drilling with a view to establishing a Measured Resource as part of the next upgrade to our Mineral Resource Estimate (MRE). This program will be completed in preparation for mining studies in areas likely to be mined early in the potential production profile. Metallurgical testwork will also be undertaken in preparation for the optimisation of processing methods.

• Oracle Ridge Extension “OREX” – Highly prospective for additional skarn-hosted copper-silvergold mineralisation in a similar geological setting to the Oracle Ridge mine. Recent geological mapping and sampling identified extensive outcropping mineralisation along a 4 kilometre zone with copper grades up to 10.6% Cu (refer ASX announcement 20 March 2021). Further work will include geophysics, data compilation, drill targeting and drilling.

• Golden Eagle – The area contains high-grade, shallow gold-copper mineralisation near historical mine workings. The Company is reviewing the results of recently completed mapping and drone magnetic programs in the area.

• Deep Porphyry Potential – Targeting the source of the skarn mineralisation below the Leatherwood granitic intrusive that may host a deeper mineralised porphyry system. Advanced studies are currently ongoing to improve the understanding of the alteration system at Oracle Ridge and allow vectoring towards the potential deep porphyry.

• Red Hawk – Very strong geophysical anomaly which is prospective for a large copper mineralised porphyry system. The Company is currently assessing additional exploration activities in the area including a selection of suitable drill pad locations for an initial drill program.

• Figure 1 below shows the location of key exploration areas.

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Figure 1 – Location of target areas for planned drilling and exploration activities (Note: Areas with surface access only are owned by Pima County and private owners. The Company has an agreement for low disturbance exploration activities.)

Eagle Mountain is pleased to continue the engagement of Boart Longyear, a worldwide and reputable drilling contractor, to supply a second drill rig which is planned to mobilise to site by 10 May 2021 and commence drilling shortly thereafter. Since commencing drilling at Oracle Ridge, Eagle Mountain has been very satisfied with Boart Longyear’s safety, productivity and commitment to the Project.

Boart Longyear will transition from the existing 20 day on,10 day off drilling schedule to full time drilling for both rigs from June 2021. This change will effectively provide a three-fold increase in drilling activities compared to the current roster.

The Company is also seeking proposals from Boart Longyear and other drilling companies with the aim to incrementally mobilise additional drill rigs to site in the second half of 2021. The Company is working towards having a total of five drill rigs by the end of the year.

There is no defined end date to the drilling program. Drill testing of targets will be undertaken once necessary permits are received.

In preparation for the increased drilling, a range of activities are well advanced including earthworks (see Figure 2) and the on-boarding of additional geologists for core logging, geological interpretation and mapping.

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Figure 2 - Completed new pad in South Zone ready for the additional drilling rig

Eagle Mountain Mining is well funded for the planned acceleration of drilling and exploration activities following the capital raising of $11 million announced in February 2021. This includes funds of $2 million from an entity associated with Mr Charles Bass, which is subject to shareholder approval and will be considered at the Company’s General Meeting to be held on 30 April 2021.

For further information please contact:

Tim Mason Mark Pitts BEng, MBA, GAICD B.Bus, FCA, GAICD Chief Executive Officer Company Secretary tim@eaglemountain.com.au mark@eaglemountain.com.au

Jane Morgan Investor and Media Relations jm@janemorganmanagement.com.au

This Announcement has been approved for release by the Board of Eagle Mountain Mining Limited

COMPETENT PERSON STATEMENT

The information in this document that relates to new Exploration Activities is based on information compiled by Mr Fabio Vergara and Mr Brian Paull who are both Members of The Australasian Institute of Mining and Metallurgy (MAusIMM) and have sufficient experience relevant to the activity which they are undertaking to qualify as a Competent Persons as defined in the 2012 Edition of the Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves (JORC Code 2012). Mr Vergara is the Chief Geologist and Mr Paull Principal Geologist of Eagle Mountain Mining Limited and consent to the inclusion in this document of the information in the form and context in which it appears. Mr Vergara and Mr Paull hold shares and options in Eagle Mountain Mining Limited.

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Where the Company references historic exploration results including technical information from previous ASX announcements including 25 May 2020, JORC Table 1 disclosures are included within them. The Company confirms that it is not aware of any new information or data that materially affects the information included in those announcements, and all material assumptions and technical parameters underpinning the results within those announcements continue to apply and have not materially changed. In addition the form and context in which the Competent Persons findings are presented have not been materially modified from the original reports.

EAGLE MOUNTAIN MINING LIMITED

Eagle Mountain is a copper-gold explorer focused on the strategic exploration and development of the Oracle Ridge Copper Mine and the highly-prospective greenfield (Silver Mountain) project, both located in Arizona, USA. The Company has an 80% interest in the Oracle Ridge Copper Project and a 100% interest in Silver Mountain Project.

Arizona is at the heart of America’s mining industry and home to some of the world’s largest copper discoveries such as Bagdad, Miami and Resolution, one of the largest undeveloped copper deposits in the world.

Follow the Company developments through our website and social media channels:

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Website https://eaglemountain.com.au/ Twitter https://twitter.com/eagle_mining LinkedIn https://www.linkedin.com/company/eagle-mountain-mining-ltd/

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