EMMERSON RESOURCES LIMITED — Capital/Financing Update 2020

Apr 1, 2020

ASX Announcement 2 April 2020

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New Grants from NSW Government for Next Drill Program

Highlights

• Emmerson awarded drilling co-funding grants from the NSW Government for both the Kiola and Kadungle projects

• Kiola lies within the highly ranked Molong Belt which hosts Alkane Resources’ Boda copper-gold discovery and Newcrest’s world class Cadia-Ridgeway copper-gold deposit

• Kadungle lies within the Narromine Belt where previous drilling has intersected high grade gold and copper

• New cutting-edge techniques combined with traditional exploration has outlined several new porphyry and related epithermal gold-silver targets

• Timing of the commencement of drill testing is now dependent on health and travel considerations relating to recent COVID-19 protocols

• Given the global economic circumstances, budget reductions have been implemented that include reduced fees and salaries for Directors, Management and staff of up to 50%

Emmerson Managing Director Mr Rob Bills commented :

“Emmerson is well placed to emerge in a very strong position once this COVID-19 crisis allows field activities to recommence. We have exceptional ground positions in one of the Australia’s highest-grade gold provinces at Tennant Creek plus a suite of early mover assets in some of the hottest exploration districts in NSW.

“The announcement by the NSW Government that Emmerson has secured two Cooperative Drilling Grants has not only reduced our exploration costs across both our Kiola and Kadungle projects but is also testament to the potential of these projects to generate new copper-gold discoveries.

“Additionally, we have prudently implemented cost saving measures across our business to help weather the challenging economic conditions we currently face.”

Emmerson Resources Limited ~~ABN 53 117 086 745~~

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t: +61 8 9381 7838 | e: admin@emmersonresources.com.au | w: www.emmersonresources.com.au 3 Kimberley St, West Leederville 6007 WA

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NSW New Frontiers Cooperative Drilling Grants

The New Frontiers Cooperative Drilling grants program by the NSW Government encourages private exploration drilling in the search of high value mineral deposits in prospective underexplored areas of NSW and where companies are using the latest technology to identify new deposits.

The $2 million program is a co-funded initiative where the NSW Government provides up to 50 per cent of direct drilling costs for individual projects, capped at $200,000. Emmerson is pleased to advise that it has recently been awarded grants for upcoming drilling at both the Kiola and Kadungle projects.

Kiola Project (Figure 1)

Emmerson’s Kiola project is a highly ranked, early stage gold-copper project centred on the 15km[2] Kiola Geochemical Zone (KGZ) within the highly prospective Molong Belt. It encompasses favourable Ordovician age rocks that display anomalously high gold and copper geochemistry, mineralisation associated with skarns and many historic workings. Although there is limited exposure of the Ordovician stratigraphy due to soil cover, recent exploration has confirmed similarities to the world class Cadia-Ridgeway deposit.

Furthermore the aeromagnetic survey suggest potential for multiple Ordovician intrusions within the subsurface and given the anomalous gold, copper and base metals, likely represent the source of these metals (Figure 2). Most of the targets in our forthcoming drill program occur within 400m of the surface and will be the deepest drill holes in the history of the project.

Some 15-line km of Induced Polarisation (IP) geophysics collected in late 2019 has reinforced the depth potential of the target areas, particularly when combined with the geochemistry, age dates, intrusion fertility plots and geology.

Nasdaq Skarn (Northern Area)

Shallow historic drilling in this area has intersected copper, gold and base metals within calc-silicates (i.e. skarn mineralisation) (Figure 3). Some of the better results include:

• 8m at 2.52g/t gold and 0.19% copper including 3m at 6.43g/t gold from 32m (drill hole CWC002);

• 13m at 0.26g/t gold from 44m (CWC022);

• 17m at 0.19g/t gold and 0.17% copper from the surface (CWC016); and

• 13m at 0.17g/t gold from the surface (CWC017).

- South Pole, Kiola and Right Hand Creek (Southern Area)

This southern area features highly anomalous geochemistry (up to 19% copper and 4.5g/t gold in rock chips), several historic mines, extensive geophysical anomalies (both chargeable and resistive) across consecutive lines of IP geophysics, plus favourable geology and alteration.

Strong zones of shearing outside of the large magnetic anomaly at South Pole plus the associated calcsilicate skarn to the north (Figure 2) suggests some similarities to the northern Nasdaq area. With potential for structurally controlled, vein style copper-gold mineralisation peripheral to a porphyry system.

The drill program consists of a minimum of 2,000m of diamond drilling across five holes – with an ability to extend the holes based on visual results. The NSW drilling grant will now reduce the direct drilling costs by 50% or $83k.

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Kadungle Project

Kadungle sits in the highly prospective Narromine Volcanic Belt within the Lachlan Transfer Zone that hosts the Northparkes gold-copper deposit (Figure 3). Some of the historic drilling at Kadungle intersected epithermal gold-silver and porphyry copper-gold with best assays of 12m at 7.7g/t gold and 0.12% copper from 62m (drill hole KDD002) and 37m at 0.23% copper including 6m at 1.1% copper from 560m (KDD013) (ASX: 4 October 2016) (figure 4).

Recent trace element, alteration and petrochemistry studies on the historic drill holes indicates the source for the gold and copper likely resides at depth in the Mount Leadley/Mount Leadley South prospects. The drill program consists of a minimum of 1,700m of diamond and RC drilling across two deep holes – with an ability to extend the holes based on visual results. The NSW drilling grant will now reduce the direct drilling costs by 50% or ~$101k.

For and on behalf of the Board of Emmerson Resources Limited

Rob Bills

Managing Director & CEO

For further information, please contact:

Rob Bills

Media enquiries

Managing Director and CEO Michael Vaughan, Fivemark Partners E: rbills@emmersonresources.com.au E: michael.vaughan@fivemark.com.au T: +61 8 9381 7838 T: +61 422 602 720

About Emmerson Resources, Tennant Creek and New South Wales

Emmerson is fast tracking exploration across five exciting early-stage gold-copper projects in NSW, identified (with our strategic alliance partner Kenex/Duke Exploration) from the application of 2D and 3D predictive targeting models – aimed at increasing the probability of discovery.(Duke can earn up to 10% (to pre BFS) of any project generated providing certain success milestones are met).

The highly prospective Macquarie Arc in NSW hosts >80Mozs gold and >13Mt copper with these resources heavily weighted to areas of outcrop or limited cover. Emmerson’s five exploration projects contain many attributes of the known deposits within the Macquarie Arc but remain underexplored due to historical impediments, including overlying cover (farmlands and younger rocks) and a lack of exploration. Kadungle is a JV with Aurelia Metals covering 43km[2 ] adjacent to Emmerson’s Fifield project.

In addition, Emmerson has a commanding land holding position and is exploring the Tennant Creek Mineral Field (TCMF), one of Australia’s highest-grade gold and copper fields producing over 5.5 Mozs of gold and 470,000 tonnes of copper from deposits including Warrego, White Devil, Orlando, Gecko, Chariot, and Golden Forty. These high-grade deposits are highly valuable exploration targets, and to date, discoveries include high-grade gold at Edna Beryl and Mauretania, plus copper-gold at Goanna and Monitor. These are the first discoveries in the TCMF for over two decades.

Emmerson announced the formation of a strategic alliance with Territory Resources in 2018 in which Territory Resources will build a central mill in Tennant Creek to support the processing from Emmerson’s small gold mines and other third-party feed. This alliance also extends to a $5m earn-in by Territory Resources over Emmerson’s southern tenements (where ERM is the Operator and Manager) plus a Mining Joint Venture over a portfolio of Emmerson’s small mines that is on a 75/25 profit share basis, except for the Edna Beryl and Chariot mines which have a 12% and 6% gold production royalty respectively.

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Competency Statement

The information in this report which relates to NSW Projects Exploration Results is based on information compiled by Dr Ana Liza Cuison, MAIG, MSEG. Dr Cuison is a Member of the Australian Institute of Geoscientists and has sufficient experience which is relevant to the style of mineralisation and types of deposits under consideration and to the activity which she is undertaking to qualify as a Competent Person as defined in the 2004 edition and the 2012 edition of the Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves. Dr Cuison is a full-time employee of the Company and consents to the inclusion in this report of the matters based on her information in the form and context in which it appears.

Table 1: Table of historical and recent drilling at EL6226 Kadungle, Mount Leadley and Mount Leadley South prospects

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Total Relevant ASX Release
Hole MGA94_z55 MGA94_z55 Az_ EL
HoleID Type Easting Northing RL Depth (m) Dip Mag Prospect Company/ Operator number Date/Source/ Report Annual
PL1 RC 560389 6378716 317 102 -60 272 Mt Leadley BP Minerals EL2171 GS1984_361.R00009523
PL2 RC 560488 6378698 314 111 -60 270 Mt Leadley BP Minerals EL2171 GS1984_361.R00009523
PL3 RC 560411 6378710 318 113 -60 91 Mt Leadley BP Minerals EL2171 GS1984_361.R00009523
PL4 RC 560343 6378509 300 117 -60 90 Mt Leadley BP Minerals EL2171 GS1984_361.R00009523
PL5 RC 560296 6378516 301 127.5 -60 88 Mt Leadley BP Minerals EL2171 GS1984_361.R00009523
PL6 RC 560245 6378523 304 105 -60 87 Mt Leadley BP Minerals EL2171 GS1984_361.R00009523
PDH8 RC 560415 6378798 307 100 -50 272 Mt Leadley Peko Wallsend Operations Ltd EL2171 GS1984_361.R00009531
PDH9 RC 560460 6378796 306 78 -50 272 Mt Leadley Peko Wallsend Operations Ltd EL2171 GS1984_361.R00009531
PDH11 RC 560423 6378709 319 90 -50 272 Mt Leadley Peko Wallsend Operations Ltd EL2171 GS1984_361.R00009531
PDH10 RC 560511 6378794 301 80 -50 272 Mt Leadley Peko Wallsend Operations Ltd EL2171 GS1984_361.R00009531
KRC001 RC 559634 6378205 315 90 -60 270 Mt Leadley South LFB Resources NL EL4933 GS2001_297.R00031870
KRC002 RC 559674 6378205 316 78 -60 270 Mt Leadley South LFB Resources NL EL4933 GS2001_297.R00031870
KRC003 RC 559634 6378105 315 78 -60 270 Mt Leadley South LFB Resources NL EL4933 GS2001_297.R00031870
KRC004 RC 559594 6378105 312 78 -60 270 Mt Leadley South LFB Resources NL EL4933 GS2001_297.R00031870
KRC005 RC 559804 6378100 300 78 -60 270 Mt Leadley South LFB Resources NL EL4933 GS2001_297.R00031870
KRC006 RC 559754 6378095 305 78 -60 270 Mt Leadley South LFB Resources NL EL4933 GS2001_297.R00031870
KRC007 RC 559714 6378105 310 78 -60 278 Mt Leadley South LFB Resources NL EL4933 GS2001_297.R00031870
KRC008 RC 559674 6378105 315 102 -60 270 Mt Leadley South LFB Resources NL EL4933 GS2001_297.R00031870
KRC009 RC 559714 6378205 314 138 -60 270 Mt Leadley South LFB Resources NL EL4933 GS2001_297.R00031870
KRC010 RC 560454 6378865 300 72 -60 90 Mt Leadley LFB Resources NL EL4933 GS2001_297.R00031870
KRC011 RC 560414 6378865 300 72 -61 90 Mt Leadley LFB Resources NL EL4933 GS2001_297.R00031870
KRC012 RC 560374 6378865 296 78 -60 90 Mt Leadley LFB Resources NL EL4933 GS2001_297.R00031870
KDD001 RCDDH 559770 6378111 299 219.2 -54 259 Mt Leadley South Big Sky Holdings EL6226 GS2006_310.R00054445
KDD002 RCDDH 560489 6378692 313 249.5 -70 259 Mt Leadley Big Sky Holdings EL6226 GS2006_310.R00054445
KDD003 DDH 559791 6378212 303 297.8 -55 259 Mt Leadley South Big Sky Holdings EL6226 GS2006_310.R00054445
KDD004 DDH 559927 6378108 288 442.9 -55 251 Mt Leadley South Big Sky Holdings EL6226 GS2006_310.R00054445
KDD005 RCDDH 559812 6378303 307 120.4 -55 256 Mt Leadley South Big Sky Holdings EL6226 GS2006_310.R00054445
KRC013 RC 559748 6378284 307 128 -55 233 Mt Leadley South Big Sky Holdings EL6226 GS2006_310.R00054445
KRC014 RC 559700 6378275 308 120 -55 260 Mt Leadley South Big Sky Holdings EL6226 GS2006_310.R00054445
KRC015 RC 559819 6378305 307 131 -55 245 Mt Leadley South Big Sky Holdings EL6226 GS2006_310.R00054445
KDD006 DDH 560337 6378714 311 240.8 -58 78 Mt Leadley YTC Resources Ltd EL6226 GS2008_0758.R00030798
KDD007 DDH 559509 6378376 291 323.6 -60 77 Mt Leadley South YTC Resources Ltd EL6226 GS2008_0758.R00030798
KDD008 DDH 559449 6378058 289 311.6 -60 74 Mt Leadley South YTC Resources Ltd EL6226 GS2008_0758.R00030798
KDD010 DDH 560149 6378534 299 299.7 -50 75 Mt Leadley YTC Resources Ltd EL6226 GS2008_0758.R00030798
KDD013 DDH 560345 6378713 312 693.9 -70 247 Mt Leadley YTC Resources Ltd EL6226 GS2008_0758.R00030798
KRC016 RC 560410 6378082 275 147 -60 255 Mt Leadley YTC Resources Ltd EL6226 GS2009_0529.R00034506
KRC017 RC 560610 6378233 273 132 -60 255 Mt Leadley YTC Resources Ltd EL6226 GS2009_0529.R00034506
KRC018 RC 559764 6377996 289 114 -60 258 Mt Leadley South YTC Resources Ltd EL6226 GS2009_0529.R00034506
KRC019 RC 560407 6378652 324 204 -60 80 Mt Leadley YTC Resources Ltd EL6226 GS2012_0779.R0002367
KRC020 RC 560394 6378608 312 172 -65 79 Mt Leadley YTC Resources Ltd EL6226 GS2012_0779.R0002367
KDD014 RCDDH 560108 6378262 293 375.5 -60 254 Mt Leadley South Emmerson Resources Ltd EL6226 ASX: 13 December 2017
KDD015 DDH 560400 6378693 320 282.6 -61 92 Mt Leadley Emmerson Resources Ltd EL6226 ASX: 18 July 2017
KDD016 RCDDH 559979 6378548 291 450.6 -70 116 Mt Leadley Emmerson Resources Ltd EL6226 ASX: 13 December 2017
KDD017 RCDDH 559960 6378554 291 573.6 -68 76 Mt Leadley Emmerson Resources Ltd EL6226 ASX: 13 December 2017
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Figure 1 . Location of Emmerson’s NSW Projects (Lachlan Resources). The background is the regional magnetic image, with orange indicating the various segments of the Macquarie Arc.

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Figure 2: Plan view of the Kiola Geochemical Zone (KGZ) showing historic drill results at the Nasdaq skarn, and the southern South Pole, Kiola, Right Hand Creek Mine.

Note the background image is the Reduced to Pole Magnetics, with red-white colour outlining interpreted Ordovician age intrusions

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Figure 3: Emmerson’s consolidated ground position (purple outline) within the highly prospective Lachlan Transfer Zone (blue dashed lines). Includes the Fifield and Kadungle tenements which host the Whatling Hill and Mt Leadley projects. Note the background image is a grey scale image of the aeromagnetics

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Figure 4: Plan view of Kadungle - Mount Leadley and Mount Leadley South prospects, showing recent and historic drilling results – the next drill program will test two deep targets aimed at pinpointing the source to this gold and copper.

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