ECLIPSE METALS LIMITED. — Interim / Quarterly Report 2020

Oct 30, 2019

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Activities Report and Appendix 5B

For the Quarter ending 30 September 2019

HIGHLIGHTS

• On-county meetings with traditional owners and with NLC legal representatives has progressed the process for approval for granting of Devil’s Elbow exploration licences.

• Analysis of results from historical regional exploration in the Ngalia Basin and planning future exploration is ongoing.

NORTHERN TERRITORY: URANIUM TENEMENTS

Devil’s Elbow Project (ELA’s 27584, 31065, 31770-772)

The Company has attended “on-country” meetings with the Northern Land Council (NLC), Traditional Owners and their legal representatives to progress the approval for the granting process. Advice on this process is expected in the near future.

Exploration Licence 32080, Ngalia Basin

This EL, adjacent to granted EL 24808, Cusack’s Bore, has been granted, providing additional ground covering known paleochannels in the northern part of Ngalia Basin.

Eclipse Metals Ltd is an Australian exploration company focused on exploring the Northern Territory and Queensland for multi commodity mineralisation. The Company has an impressive portfolio of assets prospective for gold, manganese, base metals and uranium mineralisation. The Company’s mission is to increase Shareholder wealth through capital growth and ultimately, dividends. Eclipse plans to achieve this goal by exploring for and developing viable mineral deposits to generate mining or joint venture income.

BOARD

Rodney Dale Non-Executive Chairman

Carl Popal Non-Executive Director

Ibrar Idrees Non-Executive Director

COMPANY SECRETARY

A gravity survey within the Cusack’s Bore EL late in 2018, identified nearly 20 linekilometres of probable paleochannel targets for uranium and vanadium mineralisation.

In the Ngalia Basin, applications for EL’s 31499 to 31502 and 32077 to 32079, which combined cover an aggregate 400 line-kilometres of probable paleochannels prospective for uranium and vanadium, are progressing through the statutory channels. Applications for EL’s 24623 and 26487 (Yuendi project area) with an area of 1,750sqkm, on the north-western side of the Ngalia Basin are presently in a moratorium period.

Minerals Outlook

The uranium market has shown signs of life over recent months with a minor firming of the spot price.

The vanadium market, after suffering a substantial decline, is again showing signs of recovery. Vanadium is a major constituent of many steel products and has recently been shown to have significant value in the realm of new battery technology.

Eryn Kestel

REGISTERED OFFICE AND PRINCIPAL PLACE OF BUSINESS

Level 3, 1060 Hay Street West Perth WA 6005 Phone: + 61 8 9480 0420 Fax: + 61 8 9321 0320

AUSTRALIAN BUSINESS NUMBER 85 142 366 541

SHARE REGISTRY

Security Transfer Registrars 770 Canning Highway Applecross WA 6153

ASX CODE EPM

WEBSITE

The Liverpool NT tenement applications, now in discussion with traditional owner groups, are known for significant hard-rock uranium occurrences together with highly anomalous gold, platinum and palladium values in historical sampling.

www.eclipsemetals.com.au

With its comprehensive uranium tenement portfolio Eclipse is on track to be well positioned for developments in the nuclear energy market.

Eclipse Metals Limited Quarterly Activities Report for Period Ending 30 September 2019

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Ngalia Basin NT, showing EL Applications and Granted EL’s

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Liverpool Project Tenement Applications

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Eclipse Metals Limited Quarterly Activities Report for Period Ending 30 September 2019

Addendum - ECLIPSE METALS TENEMENT INTERESTS ASX -Listing Rule 5.3.3.

Mining tenements held at the end of the quarter and their locations are listed below. No granted tenement interests were earned into or farmed out.

Granted Tenements

Project Name	Commodity	Status	State	Holder	%	Graticular Blocks
Cusack’s bore	Uranium	Granted	NT	EclipseMetalsLtd	100	27
North Ngalia	Uranium	Granted	NT	Eclipse Metals Ltd	100	32
Mary Valley	Manganese	Granted	Qld	Walla Mines Pty Ltd1	100	7
Amamoor	Manganese	Granted	Qld	WallaMinesPtyLtd1	100	4

Tenement Applications	Tenement Applications
Tenement	Project Name	Commodity	Status	State	Holder	%	Graticula r
							Blocks
ELA 24623	Yuendi	Cu, Uranium	Application	NT	Eclipse Metals Ltd	100	305
ELA 24861	Lake Mackay	Uranium	Application	NT	Eclipse Metals Ltd	100	50
ELA 26487	Yuendi	Cu, Uranium	Application	NT	WhitvistaPtyLtd2	100	320
ELA 27584	Devil’s Elbow	Uranium	Application	NT	North Minerals Pty Ltd3	100	30
ELA31065	Liverpool 1	Uranium	Application	NT	EclipseMetalsLtd	100	68
ELA 31499	Ngalia 1	Uranium	Application	NT	Eclipse Metals Ltd	100	249
ELA 31500	Ngalia 2	Uranium	Application	NT	Eclipse Metals Ltd	100	250
ELA 31501	Ngalia 3	Uranium	Application	NT	Eclipse Metals Ltd	100	250
ELA31502	Ngalia4	Uranium	Application	NT	EclipseMetalsLtd	100	226
ELA 31770	Liverpool 2	Uranium	Application	NT	Eclipse Metals Ltd	100	50
ELA 31771	Liverpool 3	Uranium	Application	NT	Eclipse Metals Ltd	100	240
ELA 31772	Liverpool 4	Uranium	Application	NT	Eclipse Metals Ltd	100	51
ELA 32077	Central Ngalia	Uranium	Application	NT	Eclipse Metals Ltd	100	195
ELA32078	Central Ngalia	Uranium	Application	NT	EclipseMetalsLtd	100	248
ELA 32079	Central Ngalia	Uranium	Application	NT	Eclipse Metals Ltd	100	248

1 Walla Mines Pty Ltd is a subsidiary of Eclipse Metals Ltd

2 Whistvista Pty Ltd is a subsidiary of Eclipse Metals Ltd

3 North Minerals Pty Ltd is a subsidiary of Eclipse Metals Ltd

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Eclipse Metals Limited Quarterly Activities Report for Period Ending 30 September 2019

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Competent Persons Statement

The information in this report that relates to Exploration Results together with any related assessments and interpretations is based on information compiled by Mr Rodney Dale, a Non-Executive Director of Eclipse Metals Limited. Mr Dale is a Fellow of the Australasian Institute of Mining and Metallurgy 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.

For further information please contact:

Rod Dale Carl Popal Non- Executive Chairman Non-Executive Director T: +61 8 9480 0420 T: +61 8 9480 0420

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Appendix 5B Mining exploration entity and oil and gas exploration entity quarterly report

+Rule 5.5

Appendix 5B

Mining exploration entity and oil and gas exploration entity quarterly report

Introduced 01/07/96 Origin Appendix 8 Amended 01/07/97, 01/07/98, 30/09/01, 01/06/10, 17/12/10, 01/05/13, 01/09/16

Name of entity

ECLIPSE METALS LIMITED

ABN

85 142 366 541

Quarter ended (“current quarter”)

September 19

Consolidated statement of cash flows	Current quarter $A’000	Year to date (3 months) $A’000
1. Cash flows from operating activities 1.1 Receipts from customers 1.2 Payments for (a) exploration & evaluation (b) development (c) production (d) staff costs (e) administration and corporate costs 1.3 Dividends received (see note 3) 1.4 Interest received 1.5 Interest and other costs of finance paid 1.6 Income taxes paid 1.7 Research and development refunds 1.8 Other (BAS Refund) 1.9 Net cash from / (used in) operating activities	(38) - - - (56) - - - - 64 2	(38) - - - (56) - - - - 64 2
	(28)	(28)

September 2019 Quarter

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Appendix 5B Mining exploration entity and oil and gas exploration entity quarterly report

2. Cash flows from investing activities 2.1 Payments to acquire: (a) property, plant and equipment (b) tenements (see item 10) (c) investments (d) other non-current assets 2.2 Proceeds from the disposal of: (a) property, plant and equipment (b) tenements (see item 10) (c) investments (d) other non-current assets 2.3 Cash flows from loans to other entities 2.4 Dividends received (see note 3) 2.5 Other (provide details if material) 2.6 Net cash from / (used in) investing activities	- - - - - - - - -	- - - - - - - - -
	-	-
3. Cash flows from financing activities 3.1 Proceeds from issues of shares 3.2 Proceeds from convertible notes 3.3 Proceeds from exercise of share options 3.4 Transaction costs related to issues of shares, convertible notes or options 3.5 Proceeds from borrowings 3.6 Repayment of borrowings 3.7 Transaction costs related to loans and borrowings 3.8 Dividends paid 3.9 Other (provide details if material) 3.10 Net cash from / (used in) financing activities	- - - - - - - - -	- - - - - - - - -
	-	-

September 2019 Quarter

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Appendix 5B

Mining exploration entity and oil and gas exploration entity quarterly report

4. Net increase / (decrease) in cash and cash equivalents for the period 4.1 Cash and cash equivalents at beginning of period 4.2 Net cash from / (used in) operating activities (item 1.9 above) 4.3 Net cash from / (used in) investing activities (item 2.6 above) 4.4 Net cash from / (used in) financing activities (item 3.10 above) 4.5 Effect of movement in exchange rates on cash held 4.6 Cash and cash equivalents at end of period	358 (28) - - -	358 (28) - - -
	330	330
5. Reconciliation of cash and cash equivalents at the end of the quarter (as shown in the consolidated statement of cash flows) to the related items in the accounts	Current quarter $A’000	Previous quarter $A’000
5.1 Bank balances 5.2 Call deposits 5.3 Bank overdrafts 5.4 Other (provide details) 5.5 Cash and cash equivalents at end of quarter (should equal item 4.6 above)	330 - - -	358 - - -
	330	358

6.	Payments to directors of the entity and their associates	Current quarter
		$A'000
6.1	Aggregate amount of payments to these parties included in item 1.2	15
6.2	Aggregate amount of cash flow from loans to these parties included	-
	in item 2.3
6.3	Include below any explanation necessary to understand the transactions included in
	items 6.1 and 6.2
Director	and geological fees for services provided.

September 2019 Quarter

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Appendix 5B Mining exploration entity and oil and gas exploration entity quarterly report

7.	Payments to related entities of the entity and their	Current quarter
	associates	$A'000
7.1	Aggregate amount of payments to these parties included in item 1.2	-
7.2	Aggregate amount of cash flow from loans to these parties included	-
	in item 2.3
7.3	Include below any explanation necessary to understand the transactions included in
	items 7.1 and 7.2

8. Financing facilities available Add notes as necessary for an understanding of the position Total facility amount at quarter end $A’000 Amount drawn at quarter end $A’000 8.1 Loan facilities - - 8.2 Credit standby arrangements - - 8.3 Other (please specify) - - 8.4 Include below a description of each facility above, including the lender, interest rate and whether it is secured or unsecured. If any additional facilities have been entered into or are proposed to be entered into after quarter end, include details of those facilities as well.	Total facility amount at quarter end $A’000	Amount drawn at quarter end $A’000
	-	-
	-	-
	-	-

9. Estimated cash outflows for next quarter	$A’000
9.1 Exploration and evaluation 9.2 Development 9.3 Production 9.4 Staff costs 9.5 Administration and corporate costs 9.6 Other (provide details if material) 9.7 Total estimated cash outflows	70 - - - 60
	130

September 2019 Quarter

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Appendix 5B Mining exploration entity and oil and gas exploration entity quarterly report

10. Changes in tenements (items 2.1(b) and 2.2(b) above)	Tenement reference and location	Nature of interest	Interest at beginning of quarter	Interest at end of quarter
10.1 Interests in mining tenements and petroleum tenements lapsed, relinquished or reduced
10.2 Interests in mining tenements and petroleum tenements acquired or increased

Compliance statement

• 1 This statement has been prepared in accordance with accounting standards and policies which comply with Listing Rule 19.11A.

• 2 This statement gives a true and fair view of the matters disclosed.

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Sign here: ............................................................
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Date: 31 October 2019
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Print name: Rod Dale Non-Executive Chairman

Notes

1. The quarterly report provides a basis for informing the market how the entity’s activities have been financed for the past quarter and the effect on its cash position. An entity that wishes to disclose additional information is encouraged to do so, in a note or notes included in or attached to this report.

2. If this quarterly report has been prepared in accordance with Australian Accounting Standards, the definitions in, and provisions of, AASB 6: Exploration for and Evaluation of Mineral Resources and AASB 107: Statement of Cash Flows apply to this report. If this quarterly report has been prepared in accordance with other accounting standards agreed by ASX pursuant to Listing Rule 19.11A, the corresponding equivalent standards apply to this report.

3. Dividends received may be classified either as cash flows from operating activities or cash flows from investing activities, depending on the accounting policy of the entity.

September 2019 Quarter

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