ECLIPSE METALS LIMITED. — Capital/Financing Update 2023

Jun 20, 2023

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21[st] June 2023 ASX Announcement

PROMISING MINERALOGICAL RESULTS AT GRØNNEDAL RARE EARTH PROSPECT, GREENLAND

• Encouraging mineralogical determinations from Grønnedal

• Composite ferro-carbonate mineral containing elevated medium to heavy REE

• Grønnedal Pr+Nd account for 55% of the measured 4REE (La+Ce+Pr+Nd)

• On-going assessment of material found over a wide area in Grønnedal

• Located within the Ivigtût multi-commodity project in SW Greenland

• Assays from drilling at Ivigtût project are expected this quarter

Eclipse Metals Ltd ( Eclipse or the Company ) (ASX: EPM) is pleased to provide an update on the Company’s mineralogical determinations and percussion drilling program for its Grønnedal prospect within the Ivigtût multi-commodity project in SW Greenland.

Ongoing mineralogical assessment of pink-orange mineralised material found over a wide area (1.5 km x 3 km) in Grønnedal , including scanning electron microscope (SEM) examination at CSIRO, has identified composite ferro-carbonate minerals containing elevated medium to heavy REE .

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Figure 1: Grønnedal surface sample shows pink/orange REE mineral. Visually estimated to comprise of ~25% pink-orange material and 75% iron oxides and oxidised carbonatite.

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Figure 2: 2022 Maiden drilling and sampling program at Ivigtût multi-commodity project

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Cautionary Statement

Visual estimates of mineral abundance should never be considered a proxy or substitute for laboratory analyses where concentrations or grades are the factor of principal economic interest. Visual estimates also potentially provide no information regarding impurities or deleterious physical properties relevant to valuations.

Executive Chairman Carl Popal commented : “These initial results at Grønnedal are of great significance for Eclipse and follow up the sampling of drill core from the Ivigtût pit which also confirmed the presence of REE mineralisation. The REE prospectivity at both Ivigtût and Grønnedal aligns with our strategy of becoming a leading supplier of metals and minerals used in the green energy industry. Eclipse will continue to actively explore the historic Ivigtût pit and the nearby Grønnedal prospect during 2023.”

Previous ambiguous mineralogical determination attempts could not name the pink/orange coloured minerals containing these REEs with anomalous Pr, Nd and Dy content. Precise mineralogical identification is essential in processing REE and is an important step in prefeasibility studies.

The pink-orange coloured minerals were first submitted by Eclipse for mineralogical determinations in 2021, which initial assessment determined that there is a possible combination of several minerals. During 2022, an XRD assessment was conducted by the St Andrews University School of Earth Science which identified possible bastnasite and proposed further thorough assessment to identify the precise composite nature of the minerals (ASX release 1 November 2022).

Previous laboratory and pXRF assay results from Grønnedal rock chip samples using polished thin sections (ASX release 17 November 2021) and now Scanning Electron Microscopy (SEM) have confirmed the presence of rare earth minerals in three of the four rock samples examined at CSIRO. SEM/EDS (SEM with Energy Dispersive X-ray Spectroscopy) analysis of one sample returned chemistry corresponding to the rare earth minerals Parisite and Ancylite. These two minerals were distinguished by the difference in CaO values showing a composite mineral structure containing REEs with elevated Pr, Nd and Dy values.

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Figure 3. Grønnedal trenching area marked in yellow.

Drilling and trenching at Grønnedal identified this material within part of a widespread dolerite dyke system intruding the carbonatite. Analysis of historical geological and geophysical work has indicated that the dolerite dykes are deep-seated.

Drill and trench samples collected at Ivigtût and Grønnedal in October 2022 are currently being analysed by a laboratory in Australia, with results due during the next few weeks. The laboratory has confirmed significant progress in its work with some samples exceeding the limit of detection (MEMS61L method). The Company anticipates assay results to be received by the end of July. To ensure accuracy, these samples will undergo further testing using the over-limit methods by the laboratory.

Grønnedal Carbonatite

Drill sample analysis using a portable XRF analyzer (pXRF) on five 1.5m composite samples from drillhole L3-9, returned an intersection average of 7.5m @ 0.8% La2O3+Ce2O3+Pr2O3+Nd2O3 (4REO), with praseodymium (Pr)/lanthanum (La) and neodymium (Nd)/cerium (Ce) ratios of about 1:2, plus base metal values of 0.49% Zn+Pb+Ni (Refer ASX announcement 28 November 2022)

Importantly, the pXRF readings suggest that Pr and Nd are significantly enriched in drillhole L3-9 compared to La and Ce , an observation that is consistent with academic studies as well as laboratory results received previously (Refer ASX announcement 28 November 2022).

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Previous laboratory and pXRF assay results from Grønnedal rock chip samples

• On 17[th] November 2021, the Company reported pXRF results indicating potentially significant rare ‐ earth element content. Subsequent laboratory results from samples tested by pXRF confirmed significant 4REE (La+Ce+Pr+Nd) (reported on 9 March 2022).

• On 22[nd ] November 2021, Eclipse reported laboratory assays from historical Grønnedal drill core sample IVT 21-4, which yielded 2.1% TREO, including 0.12% Pr2O3 and 0.46% Zn.

• On 9[th] March 2022, the Company reported highly anomalous heavy REE laboratory assay results for six rock chip samples (G21010, G21011, G21014, G21016, G21017 and G21019), demonstrating that the Grønnedal carbonatite complex is – at least in part – enriched in Pr and Nd.

• On 24[th] March 2022, Eclipse reported the final laboratory assay results for the above samples with G21016 having returned 4.66% TREO, 0.13% Gd2O3 and 3.3% BaO, and sample G21011, collected from an aplite cutting the Grønnedal complex, returned analyses of 0.93% Nb2O5, 0.07% Rb2O and 1.77% ZrO2.

Discussion

Overall, analysis of the Grønnedal rock chip samples demonstrated unusual patterns for Pr/La and Nd/Ce ratios compared with other REE-mineralised carbonatite complexes such as Mountain Pass (California) and Mt Weld (Western Australia).

Lower La and Ce content measured by pXRF, if confirmed by laboratory assay results across the Grønnedal complex or a significant part thereof, would indicate that REE mineralisation at Grønnedal contains a higher proportion of the commercially more valuable magnetic REE, Pr and Nd. The latter are often termed the ‘magnet feed’ REE which are critical elements for high-performance magnets in high demand from the automotive sector and for wind turbines.

More specifically, pXRF readings and laboratory assay results recorded thus far show a relatively large proportion of Pr and Nd, comprising up to 55% of the measured 4REE.

This can be compared with other rare earth deposits:

i) Grønnedal Pr+Nd: 55% of the measured 4REE (La+Ce+Pr+Nd) ii) Mountain Pass Pr+Nd: 17% of the measured 4REE (La+Ce+Pr+Nd) iii) Mount Weld CLD Pr+Nd: 25% of the measured 4REE (La+Ce+Pr+Nd)

* Reference: Technology Metals Research, TMR (2015)

Such a difference in composition for the project could have positive implications for the so-called “basket price”. The basket price is described as the sum of proportions of individual REOs in the product multiplied by the price of the individual REOs.

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Figure 4. MEL 2007-45 Location Map, showing the geology of the Grønnedal covering nepheline syenite with a carbonatite plug.

Authorised for release by the Board of Eclipse Metals Ltd.

Carl Popal Aiden Bradley Executive Chairman Investor Relations aiden@nwrcommunicaitons.com.au

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Figure 5. Greenland REE Deposits and location of Grønnedal and Ivigtût

About Eclipse Metals Ltd (ASX: EPM)

Eclipse Metals Ltd is an Australian exploration company focused on mineral exploration in South-western Greenland, Northern Territory and Queensland for multi commodity mineralisation. Eclipse Metals Ltd has an impressive portfolio of assets prospective for cryolite, fluorite, siderite, quartz, REE, gold, platinum group metals, manganese, palladium, vanadium and uranium mineralisation. The Company’s mission is to increase shareholders’ wealth through capital growth and ultimately dividends. Eclipse Metals Ltd plans to achieve this goal by exploring for and developing viable mineral deposits to generate mining or joint venture incomes.

Competent Persons Statement

The information in this report / ASX release that relates to Exploration Results and Exploration Targets is based on information compiled and reviewed by Mr. Rodney Dale, Non-Executive Director of Eclipse Metals Ltd. Mr. Dale holds a Fellowship Diploma in Geology from RMIT, is a Fellow of the Australasian Institute of Mining and Metallurgy (FAusIMM) and has sufficient experience relevant to the styles of mineralisation under consideration and to the activity being reported 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 Dale consents to the inclusion in this report / ASX release of the matters based on information in the form and context in which it appears. Additionally, Mr Dale confirms that the entity is not aware of any new information or data that materially affects the information contained in the ASX releases referred to in this report.

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JORC Code, 2012 Edition – Table 1

Section 1 Sampling Techniques and Data

(Criteria in this section apply to all succeeding sections.)

Criteria	JORC Code explanation	Commentary	Commentary
Sampling	• Nature and quality of sampling (eg cut	•	Grønnedal carbonatite samples
techniques	channels, random chips, or specific		represent outcropping rock
	specialised industry standard measurement tools appropriate to the minerals under investigation, such as down hole gamma sondes, or handheld XRF instruments, etc). These examples	•	formations; qualitative only. Initial field tests by hand-held XRF assumed to be indicative only. Instrument not calibrated.
	should not be taken as limiting the broad	•	Chemical analyses to assess levels
	meaning of sampling.		of elements contained, not for ore-
	• Include reference to measures taken to ensure sample representivity and the		grade estimates.
	appropriate calibration of any
	measurement tools or systems used.
	• Aspects of the determination of
	mineralisation that are Material to the
	Public Report.
	• In cases where ‘industry standard’ work
	has been done this would be relatively
	simple (eg ‘reverse circulation drilling
	was used to obtain 1 m samples from
	which 3 kg was pulverised to produce a
	30 g charge for fire assay’). In other
	cases more explanation may be
	required, such as where there is coarse
	gold that has inherent sampling
	problems. Unusual commodities or
	mineralisation types (eg submarine
	nodules) may warrant disclosure of
	detailed information.
Drilling	• Drill type (eg core, reverse circulation,	•No drilling was undertaken as part of the
techniques	open-hole hammer, rotary air blast,	grab sampling program.
	auger, Bangka, sonic, etc) and details
	(eg core diameter, triple or standard
	tube, depth of diamond tails, face-
	sampling bit or other type, whether core
	is oriented and if so, by what method,
	_etc). _
Drill	• Method of recording and assessing core	•No drilling was undertaken as part of this
sample	and chip sample recoveries and results	grab sampling program.
recovery	assessed.
	• Measures taken to maximise sample
	recovery and ensure representative
	nature of the samples.
	• Whether a relationship exists between
	sample recovery and grade and whether
	sample bias may have occurred due to
	preferential loss/gain of fine/coarse
	material.

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Criteria	JORC Code explanation	Commentary
Logging	• Whether core and chip samples have	•Samples geologically logged before
	been geologically and geotechnically	submission for analysis for identification
	logged to a level of detail to support	only. Not quantitative.
	appropriate Mineral Resource
	estimation, mining studies and
	metallurgical studies.
	• Whether logging is qualitative or
	quantitative in nature. Core (or costean,
	channel, etc) photography.
	• The total length and percentage of the
	_relevant intersections logged. _
Sub-	• If core, whether cut or sawn and whether	•Samples for geological determination
sampling	quarter, half or all core taken.	and identification only. Not quantitative.
techniques	• If non-core, whether riffled, tube	•No duplicates collected or determined.
and sample	sampled, rotary split, etc and whether
preparation	sampled wet or dry.
	• For all sample types, the nature, quality
	and appropriateness of the sample
	preparation technique.
	• Quality control procedures adopted for
	all sub-sampling stages to maximise
	representivity of samples.
	• Measures taken to ensure that the
	sampling is representative of the in situ
	material collected, including for instance
	results for field duplicate/second-half
	sampling.
	• Whether sample sizes are appropriate to
	the grain size of the material being
	sampled.
Quality of	• The nature, quality and appropriateness	•Diamantina Laboratories, Report 24693,
assay data	of the assaying and laboratory	SEM Analysis for Rare Earths in Rock
and	procedures used and whether the	Sample #2.
laboratory	technique is considered partial or total.	•No new laboratory results reported.
tests	• For geophysical tools, spectrometers,	Previous reports cited-
	handheld XRF instruments, etc, the	•Standard laboratory procedures for
	parameters used in determining the	sample preparation, elemental
	analysis including instrument make and	determination, QA / QC.
	model, reading times, calibrations factors	•XRF instrument used only to select
	applied and their derivation, etc.	mineralised samples for shipment to
	• Nature of quality control procedures	reduce quantity and weight of samples
	adopted (eg standards, blanks,	sent from Greenland to Australia.
	duplicates, external laboratory checks)	•Standard laboratory procedures with
	and whether acceptable levels of	blanks and duplicates. No external
	accuracy (ie lack of bias) and precision	laboratory checks warranted at this
	have been established.	stage.
Verification	• The verification of significant	•No drilling was undertaken as part of this
of	intersections by either independent or	grab sampling program.
sampling	alternative company personnel.
and	• The use of twinned holes.
assaying	• Documentation of primary data, data
	entry procedures, data verification, data

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Criteria	JORC Code explanation	Commentary
	storage (physical and electronic)
	protocols.
	• _Discuss any adjustment to assay data. _
Location of	• Accuracy and quality of surveys used to	•Handheld GPS locations:-
data points	locate drill holes (collar and down-hole	Grønnedal – within 100m of 658880mE :
	surveys), trenches, mine workings and	6791300mN.
	other locations used in Mineral Resource	No grid. Handheld GPS only and
	estimation.	correlation with hard-copy maps.
	• Specification of the grid system used.
	• Quality and adequacy of topographic
	control.
Data	• Data spacing for reporting of Exploration	•Grab samples were collected at random
spacing	Results.	sites, determined by outcrop availability.
and	• Whether the data spacing and	•No assumption of continuity or resource
distribution	distribution is sufficient to establish the	estimation.
	degree of geological and grade	•Samples not composited.
	continuity appropriate for the Mineral
	Resource and Ore Reserve estimation
	procedure(s) and classifications applied.
	• Whether sample compositing has been
	_applied. _
Orientation	• Whether the orientation of sampling	•No drilling was undertaken as part of this
of data in	achieves unbiased sampling of possible	grab sampling program.
relation to	structures and the extent to which this is
geological	known, considering the deposit type.
structure	• If the relationship between the drilling
	orientation and the orientation of key
	mineralised structures is considered to
	have introduced a sampling bias, this
	should be assessed and reported if
	material.
Sample	• The measures taken to ensure sample	•Samples secured on-site and
security	security.	transported by airline to Australia under
		normalsecurity procedures.
Audits or	• The results of any audits or reviews of	•No audits have been completed yet.
reviews	sampling techniques and data.

Section 2 Reporting of Exploration Results

(Criteria listed in the preceding section also apply to this section.)

Criteria	JORC Code explanation	Commentary
Mineral	• Type, reference name/number, location	•MEL 2007 / 45 granted to Eclipse
tenement and	and ownership including agreements or	Metals in February 2021 for a period of
land tenure	material issues with third parties such	3 years with extensions subject to
status	as joint ventures, partnerships,	activities and expenditure.
	overriding royalties, native title	•Granted by Government of Greenland.
	interests, historical sites, wilderness or
	national park and environmental
	settings.
	• The security of the tenure held at the
	time of reporting along with any known
	impediments to obtaining a licence to

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Criteria	JORC Code explanation	Commentary
	_operate inthe area. _
Exploration	• Acknowledgment and appraisal of	GEUS Report File No. 20236
done by other	exploration by other parties.	The Planning of the Ivigtût Open Pit of
parties		Kryolitselskabet Oresund A/S - Mining of
		the Flouritic Orebody”; Outokompu OY
		Mining Consultants, 1987. This report
		provided 18 cross sections showing drill
		traces with cryolite (kry), fluorite (fs) and
		siderite (sid) values together with pit
		profiles, resource blocks and tabulated
		tonnage estimates on each section with an
		SG of 2.95.
		GEUS Report File No. 20238
		“The Planning of the Ivigtût Open Pit of
		Kryolitselskabet Oresund A/S – Report of
		the First Phase, Investigation of the
		Quantity and Quality of Extractable Ore
		from the Ivigtût Open Pit”; Outokompu OY
		Mining Consultants, 1986. This report
		contained 23 sections showing drillhole
		traces and contoured cryolite/fluorite
		grades with an overlay of resource blocks.
		These sections were used to check
		positions of drillholes relative to those
		shown in the above report (GEUS 20236).
		Resource tonnages are provided.
		GEUS Report File No. 20335
		Kryolitselskabet Oresund A/S, De
		Resterende Mineralreserver I
		Kryolitforekomsten Ved Ivigtût, Ultimo
		1987” This report is the most useful of the
		reports. It provides: - Drillhole location plan
		- Complete cross section locations - Pit
		survey points - Plans of underground and
		in-pit ramp - 38 cross section showing
		drillhole traces, geological interpretation
		and ore blocks - Tabulated ore blocks with
		cryolite, fluorite and siderite grades and
		tonnages (back-calculated blanket SG of 3)
		GEUS Report File No. 21549
		“Ivigtût Mineopmaaling, 1962” This report is
		a survey record of the open pit and includes
		28 sections, each of which show the pit
		profile together with drillhole traces and, on
		some sections, underground workings.
		GEUS Report File No. 20241
		Kryolitselskabet Oresund A/S,
		Lodighedsdistribution I, Ivigtût Kryolitbrud,
		31.12.1985” (Danish) 108 pages of
		drillhole analyticaldatain%: holeID,from

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Criteria	JORC Code explanation	Commentary
		to, cryolite, fluorspar, Fe, Cu, Zn, Pb, S
Geology	• Deposit type, geological setting and	•Late stage granitic / syenitic /
	style of mineralisation.	carbonatite intrusions into crystalline
		basement.
Drill hole	• A summary of all information material	•No drilling was undertaken as part of
Information	to the understanding of the exploration	this grab sampling program.
	results including a tabulation of the
	following information for all Material drill
	holes:
	o easting and northing of the drill hole
	collar
	o elevation or RL (Reduced Level –
	elevation above sea level in metres)
	of the drill hole collar
	o dip and azimuth of the hole
	o down hole length and interception
	depth
	o hole length.
	• If the exclusion of this information is
	justified on the basis that the
	information is not Material and this
	exclusion does not detract from the
	understanding of the report, the
	Competent Person should clearly
	_explain why this is the case. _
Data	• In reporting Exploration Results,	•No drilling was undertaken as part of
aggregation	weighting averaging techniques,	this grab sampling program.
methods	maximum and/or minimum grade
	truncations (eg cutting of high grades)
	and cut-off grades are usually Material
	and should be stated.
	• Where aggregate intercepts
	incorporate short lengths of high grade
	results and longer lengths of low grade
	results, the procedure used for such
	aggregation should be stated and some
	typical examples of such aggregations
	should be shown in detail.
	• The assumptions used for any
	reporting of metal equivalent values
	_should be clearly stated. _
Relationship	• These relationships are particularly	•No drilling was undertaken as part of
between	important in the reporting of Exploration	this grab sampling program.
mineralisation	Results.
widths and	• If the geometry of the mineralisation
intercept	with respect to the drill hole angle is
lengths	known, its nature should be reported.
	• If it is not known and only the down
	hole lengths are reported, there should
	be a clear statement to this effect (eg
	‘down hole length, true width not
	_known’). _

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Criteria	JORC Code explanation	Commentary
Diagrams	• Appropriate maps and sections (with	•Appropriate maps are provided in the
	scales) and tabulations of intercepts	body of the text.
	should be included for any significant
	discovery being reported These should
	include, but not be limited to a plan
	view of drill hole collar locations and
	_appropriate sectional views. _
Balanced	• Where comprehensive reporting of all	•Not applicable in relation to the
reporting	Exploration Results is not practicable,	project’s available data.
	representative reporting of both low
	and high grades and/or widths should
	be practiced to avoid misleading
	_reporting of Exploration Results. _
Other	• Other exploration data, if meaningful	•The exploration by Eclipse Metals of
substantive	and material, should be reported	the Ivigtût and Grønnedal prospects is
exploration	including (but not limited to): geological	at an early stage with field work to date
data	observations; geophysical survey	consisting of reconnaissance sampling
	results; geochemical survey results;	and a maiden drilling program. The
	bulk samples – size and method of	Company expects to be able to report
	treatment; metallurgical test results;	substantive exploration data once it has
	bulk density, groundwater, geotechnical	completed it’s 2023 field season at the
	and rock characteristics; potential	prospects.
	deleterious or contaminating
	_substances. _
Further work	• The nature and scale of planned further	•Geological mapping; remote sensing;
	work (eg tests for lateral extensions or	drilling.
	depth extensions or large-scale step-	•Detailed geological assessments
	out drilling).	planned for 2023 field season.
	• Diagrams clearly highlighting the areas
	of possible extensions, including the
	main geological interpretations and
	future drilling areas, provided this
	information is not commercially
	sensitive.

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