EMPIRE RESOURCES LIMITED — Capital/Financing Update 2021

Dec 14, 2021

ASX Release

15 December 2021

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DIAMOND DRILLING COMMENCES AT YUINMERY

HIGHLIGHTS

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• 1,800m diamond drilling program underway at the Yuinmery Copper-Gold Project to test down-dip extensions of previously intercepted mineralisation

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• Drilling to test three high priority targets prospective for Cu-Au, Cu-Ni-Co and PGM’s

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• Smith’s Well Copper-Nickel-Cobalt prospect where 16m @ 0.51% Cu, 0.16% Ni & 0.031% Co from 255m (YRC21-28) was recently intercepted[[1]] ,

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• Constantine PGM prospect where shallow anomalous RC results have recently included 12m @ 0.41g/t Pd & 0.05g/t Pt from 120m (YRC21-21), ending in mineralisation[[1]] ,

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• YT01 prospect where broad zones of copper, nickel, gold, platinum and palladium have been intercepted, including 36m @ 0.34% Cu, 0.07% Ni, 0.16% Pd, 0.03% Pt and 0.07g/t Au from 188m (YRC21-16)[[1]] .

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• Diamond core drilling to test extensions of mineralisation at depth and along strike whilst also providing valuable stratigraphic, structural and petrographic information vital in understanding the mineral assemblages.

Empire Managing Director, Sean Richardson commented:

“The commencement of diamond drilling at Yuinmery is an exciting development for the Company. The diamond core will provide crucial lithological and structural data essential in understanding the localisation of mineralisation at Yuinmery.

“This is an important exploration phase at Yuinmery, and we look forward to updating the market as results become available. The results of the drilling are expected to be available during the March quarter of 2022.”

www.resourcesempire.com.au info@resourcesempire.com.au 159 Stirling Highway, Nedlands WA 6009

t +61 (0) 8 6389 1032

EMPIRE RESOURCES LIMITED ACN 092 471 513 ASX: ERL

ASX Announcement 15 December 2021

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SUMMARY

Empire Resources (ASX:ERL, Empire) is pleased to announce the commencement of diamond core drilling at its Yuinmery Copper-Gold Project in Western Australia.

The 1,800m drilling program is designed to target extensions to mineralisation at Smiths Well, YT01 and Constantine prospects where highly encouraging copper-gold, copper-nickel-cobalt and platinum group metals were encountered in recent deep RC drilling in July 2021[[1]] .

The 2,244m of reverse circulation (RC) drilling completed in July 2021 further delineated the lateral extent and establish continuity of mineralisation at the YT01 Cu-Au-PGM prospect, Smith’s Well Cu-Ni-Co and Constantine PGM prospects.

Smith’s Well intercepts included 16m @ 0.51% Cu, 0.16% Ni & 0.031% Co from 255m in drillhole YRC21-28, including 1m @ 1.05% Cu, 0.19% Ni & 0.033% Co from 261m and 5m @ 0.65% Cu, 0.13% Ni & 0.039% Co from 110m in drillhole YRC21-26 including 1m @ 1.90% Cu, 0.18% Ni & 0.038% Co from 112m.

The results reported above from Smith’s Well are from the deepest mineralised intercepts drilled to date, supporting the hypothesis that Smith’s Well may host economic mineralisation at depth. The mineralised intercepts obtained at Smiths Well since 2019 have very high sulphide content (>50%), primarily Pyrrhotite, enhancing the concept of a substantial mineralised system at depth.

Encouraging PGM results were also returned from drilling at Constantine Prospect, comprising 12m @ 0.41g/t Pd & 0.05g/t Pt from 120m (EOH) in drillhole YRC21-21 including 4m @ 0.64g/t Pd & 0.06g/t Pt from 124m. The drilling at Constantine ended in mineralisation, indicating the mineralised system extends below current drilling depths.

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Figure 1 – Diamond Drillers Setup on 1[st] Hole at Smith’s Well

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EMPIRE RESOURCES LIMITED ASX: ERL

ASX Announcement 15 December 2021

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BACKGROUND

Empire’s Yuinmery Project is located 475km northeast of Perth and comprises six contiguous granted mineral tenements covering approximately 106.7km[2] within the Archaean Youanmi Greenstone Belt (“YGB”).

The Yuinmery Project is bounded by the Youanmi shear zone to the west and the Yuinmery shear zone to the east[[2]] (Figure 2). Known copper-gold mineralisation at Yuinmery is of volcanogenic massive sulphide (VMS) style. Empire’s Just Desserts deposit has a previously reported JORC Resource of 2.5Mt @ 1.31% Cu and 0.49g/t Au[[3]] .

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Youanmi Shear
Zone
Yuinmery Shear
Zone
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Figure 2 – Yuinmery Project Location Map

Empire has identified a pipeline of Cu, Au, Ni, and PGM targets within its southern Yuinmery tenement area. Multiple targets from greenfields-style conceptual anomalies through to more advanced prospects have been tested by the Company in recent years, culminating the need for diamond drilling techniques to assess deep mineralised targets.

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EMPIRE RESOURCES LIMITED ASX: ERL

ASX Announcement 15 December 2021

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DIAMOND DRILLING

A 1,800m diamond drilling campaign testing several high priority geochemical and geophysical targets prospective for VMS-type Cu-Au and Cu-Ni-PGM mineralisation has commenced at YT01, Constantine, and Smith’s Well.

The program consists of 5 diamond holes to a maximum depth of 450m designed to trace the established mineralisation of those prospects to greater depth.

Diamond drilling allows the lithology to be assessed across the full stratigraphic host sequence, offering valuable structural and geological information important for understanding the relationship between vein hosted and disseminated copper mineralisation. The opportunity to undertake down-hole electromagnetic (DHEM) geophysical surveys in the search for conductors is still present with diamond drilling.

The diamond drilling campaign will run for approximately 4 to 5 weeks until the end of January 2022. Logging, processing and sampling of core will continue throughout the campaign, it is anticipated that final laboratory assays will be returned during the March 2022 quarter.

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Figure 3 – Yuinmery Base Metal Deposits, Prospects and Drill Collar Locations Base Image 2009 VTEM ch25_1641us_NEshade Geophysics

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EMPIRE RESOURCES LIMITED ASX: ERL

ASX Announcement 15 December 2021

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Smith’s Well – Copper-Nickel-Cobalt Potential

In May 2020 Empire identified a steeply plunging structure trending in a northeast direction at Smith’s Well. This structure has been tested by RC drilling for over 200m of strike and to 240m vertical depth. The structure is associated with the regional magnetic trend and remains open to the northeast and down dip. There is high probability that the copper-nickel mineralisation will continue beyond the zone already identified.

Drilling to date has returned broad zones of disseminated to matrix sulphide mineralisation, including chalcopyrite, pyrrhotite and pyrite in varying concentrations. Drill intercepts of >1% Cu, and associated nickel (>0.2% Ni), gold and cobalt values demonstrate the potential of the prospect[[5]] .

Three RC holes drilled in July 2021[[1]] also intersected a steeply dipping, broad zone of Cu-NiCo mineralisation on the contact between ultramafic rocks and overlying dolerite. Where seen, this contact can be both sharp and irregular, however the mineralisation occurs as matrix and disseminated sulphides within the ultramafic rocks.

The July 2021 RC drilling encountered mineralisation increasing in thickness at depth (Figure 4) in what is interpreted to be a shallowing structure and lithological boundary. Empire believes it may be drilling on the edge of a more laterally extensive sulphide pile. Alternatively the increased thickness seen in the mineralisation could possibly be related to a switch from an extensional regime to a compression regime, post the main mineralisation event at Yuinmery resulting in the remobilisation of mineralisation to its current position.

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Figure 4 – Smith’s Well Oblique Cross Section

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EMPIRE RESOURCES LIMITED ASX: ERL

ASX Announcement 15 December 2021

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A series of deep diamond core holes will be drilling during this campaign to test the mineralised zone at depth and along strike.

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Figure 5 – Smith’s Well Historical Drill Collar Locations Base Image RTP_Eagcs50nl

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EMPIRE RESOURCES LIMITED ASX: ERL

ASX Announcement 15 December 2021

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Constantine Prospect – Ni-PGM Potential

In July 2021[[1]] five RC holes for 692m were drilled at the Constantine Prospect to investigate anomalous Ni and PGM values obtained from shallow RAB drilling in 2010/2011. Analysis of Cu/Pd ratios from historical samples collected from below the base of oxidation had indicated the PGM values are indicative of mineralisation rather than normal mantle concentrations.

Hole YRC21-20 (Figure 6) terminated in mineralisation after having assayed 56m @ 0.10% Ni & 0.01% Co from 52m downhole, an intercept that partially overlaps a deeper interval of 28m @ 0.14% Pd from 104m to end of the hole. Similarly, YRC21-21 ended in mineralisation with an intercept of 12m @ 0.41% Pd from 120m.

Hole YRC21-21 is to planned to be extended by up to 150m of diamond NQ core to test the stratigraphic sequences and assess mineralisation potential at depth.

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Figure 6 – Constantine Prospect 6,840,650mN Cross Section

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ASX Announcement 15 December 2021

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Figure 7 – Constantine Drillhole Collar Locations Base Image 2009 VTEM B_field_ch25_1641us Geophysics

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ASX Announcement 15 December 2021

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YT01 Prospect – PGM Discovery

The YT01 prospect was identified by the Company in late 2019 and is associated with a strong east west trending, multi-element (Au-Cu-Zn-Ni) geochemical anomaly that extends over 3.5km in strike length. In June 2020, RC drilling intercepted a broad zone of Cu-Ni-PGM mineralisation. YRC20-28 returned 20m @ 0.39% Cu, 0.11% Ni, 0.02% Co, 0.21g/t Pd & 0.07g/t Pt from 143m[[6]] , including 12m @ 0.38% Cu, 0.34g/t Pd & 0.11g/t Pt from 151m.

In July 2021[[1]] , one 250m RC hole (YRC21-16, Figure 8) was drilled under YRC20-28 to test for continuity of mineralisation at depth. In the targeted downdip position, this hole intersected 36m of mineralisation assaying 0.34% Cu, 0.07% Ni, 0.16% Pd, 0.03% Pt and 0.07g/t Au . These encouraging results demand follow-up and a single deep diamond core hole has been planned for this campaign.

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Figure 8 – YT01 Prospect 687,250mE Cross Section

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EMPIRE RESOURCES LIMITED ASX: ERL

ASX Announcement 15 December 2021

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Figure 9 – YT01 Drillhole Collar Locations Base Image 2009 VTEM B_field_ch25_1641us Geophysics

The geology of the YT01 Prospect is poorly understood. The mineralisation occurs as disseminations towards the base of a complex sequence of sheared and altered mafic to intermediate volcanic rocks, which have locally been intruded by thin dolerite units. This maficintermediate volcanic sequence is underlain by talc-rich rocks which may well be ultramafic.

There is an observed zonation to the mineralisation with gold-copper predominating above about 120m vertical depth below which the mineral assemblage also includes nickel, palladium and platinum as well as copper and gold.

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EMPIRE RESOURCES LIMITED ASX: ERL

ASX Announcement 15 December 2021

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This announcement is authorised for release by:

Sean Richardson

Managing Director

For further information on the Company Phone: +61 (0)8 6389 1032 www.resourcesempire.com.au

Additional Information

Further details relating to the information in this release can be found in the following ASX announcements:

1. ASX:ERL “ Excellent Results from Yuinmery Drilling ” 22 September 2021

2. GSWA Publications, Report 131 “ The Yuinmery volcanogenic massive sulfide prospects: mineralization, metasomatism and geology ” 30 June 2014

3. ASX:ERL “ Updated Copper-Gold Resource Yuinmery Project ” 17 May 2016

4. ASX:ERL “ Further High Grade Copper Intersected at A Zone Prospect ” 8 June 2018

5. ASX:ERL “ Strong DHEM Responses and Broad Sulphide in Drilling at Yuinmery ” 3 June 2020

6. ASX:ERL “ Encouraging Cu-Ni-PGM Mineralisation in Drilling at Yuinmery ” 23 July 2020

Competent Person Statements

The information in this report that relates to Exploration Results is based on information compiled and/or reviewed by Mr Mark Shelverton, who is a Member of the Australian Institute of Geoscientists. Mr Shelverton is a full-time employee of Empire Resources and has sufficient experience that is relevant to the style of mineralisation and type of deposits under consideration and to the activity he is undertaking 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 Shelverton consents to the inclusion in this presentation of the matters based on this information in the form and context in which they appear.

The information is this release concerning the Mineral Resources for the Just Desserts deposit has been estimated by Mr Peter Ball B.Sc who is a director of DataGeo Geological Consultants and is a member of the Australasian Institute of Mining and Metallurgy (AusIMM). Mr Ball has sufficient experience which is relevant to the style of mineralization and type of deposit under consideration and qualifies 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 Ball consents to the inclusion in this public release of the matters based on his information in the form and context in which it appears.

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EMPIRE RESOURCES LIMITED ASX: ERL

ASX Announcement 15 December 2021

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About Empire

Empire Resources Limited (ASX:ERL) is a gold and copper focussed exploration and development company. Empire owns four highly prospective projects. The Yuinmery CopperGold Project 470km northeast of Perth in the Youanmi Greenstone Belt, the Barloweerie multielement precious and base metal project, the Nanadie Copper-Gold Project southeast of Meekatharra in the Murchison Region and the Penny’s Gold Project 45km northeast of Kalgoorlie in the prolific Eastern Goldfields Region of Western Australia. Empire’s projects have numerous exploration targets with excellent potential.

Empire has an experienced team of exploration, development and financial professionals who are committed to developing a sustainable and profitable mineral business. Empire seeks to extract value from direct exploration in its existing projects as well as identifying value accretive investment opportunities that complement the Company’s development objectives.

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Empire Resources Project Location

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EMPIRE RESOURCES LIMITED ASX: ERL