EMPIRE RESOURCES LIMITED — Interim / Quarterly Report 2021

Jul 18, 2021

ASX Release

19 July 2021

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QUARTERLY REPORT FOR THE PERIOD ENDING 30 JUNE 2021

HIGHLIGHTS

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• 2,474m of RC drilling completed at Yuinmery.

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Deep drilling targeting volcanogenic copper-gold targets.

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Follow up RC drilling of historic prospects.

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Results pending at end of the quarter.

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• Strengthening balance sheet and a sound financial position.

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• $1.3M in cash and financial asset receivables.

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• $3.4M investment in Dacian Gold (ASX:DCN).

Empire Managing Director, Sean Richardson commented:

“The RC drilling completed at Yuinmery during the quarter is very exciting. The deep RC drilling targeted multiple highly prospective targets with potential to host repetitions of the nearby Just-Desserts copper-gold Resource.

Additional drilling is also planned for the Penny’s Gold Project. The Company will provide further updates as exploration progresses.”

“Empire’s investment portfolio ensures the Company remains well funded to continue exploration across its entire portfolio. The Company is also encouraged by the progress made by Horizon Minerals and Orminex on their Penny’s Find Gold Mine Joint Venture. Empire looks forward to receiving further progress reports as they become available.”

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

t +61 (0) 8 6389 1032 f +61 (0) 8 9386 9473

EMPIRE RESOURCES LIMITED ACN 092 471 513 ASX: ERL

ASX Announcement 19 July 2021

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YUINMERY COPPER-GOLD PROJECT

RC drilling during the quarter targeted five high priority prospects. In total 18 RC holes for 2,474m were completed across the YT01, YT20, A Zone, Constantine and Smiths Well prospects. Samples have been submitted to the laboratory for analysis with results from the drilling expected during the September quarter.

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Figure 1 – Yuinmery Southern VMS Deposits, Prospects and Historical Drill Collar Locations. Base Image VTEM ch25_1641us_NEshade.

Ongoing geochemical and geophysical studies are being used to identify additional targets for drill testing within the Company’s tenement holding. Empire employs a systematic exploration approach in testing the various established targets which involves first pass AC, infill AC and/or RC programs and where results indicate, diamond drilling.

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EMPIRE RESOURCES LIMITED ASX: ERL

ASX Announcement 19 July 2021

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A Zone – High Grade Copper Opportunity

The A-Zone prospect is located 1.3km along strike from the existing Just Desserts Resource of 2.5Mt @ 1.31% Cu & 0.49g/t Au[[1]] .Previous drilling has returned high-grade results, including 12m @ 2.05% Cu from 138m (YRC18-01) and 7m @ 3.3% Cu from 192m (YRC1126)[[2]] . Limited exploration has been undertaken at A Zone since 2011. With mineralisation open in all directions A Zone offers an opportunity to expand the scale potential of the Project.

Three holes for 408m were drilled during the quarter testing the potential for shallow high grade copper mineralisation up dip of mineralisation intersected in YRC18-01. Samples have been submitted for analysis with results pending.

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Figure 2 – A Zone Oblique Cross Section

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EMPIRE RESOURCES LIMITED ASX: ERL

ASX Announcement 19 July 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[[3]] , including 12m @ 0.34g/t Pd & 0.11g/t Pt from 151m.

One 250m RC hole was drilled under YRC20-28 to test for continuity of mineralisation at depth. Samples have been submitted for analysis with results pending.

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Figure 3 – YT01 Prospect 687,250mE Cross Section.

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EMPIRE RESOURCES LIMITED ASX: ERL

ASX Announcement 19 July 2021

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Smith’s Well – Copper-Nickel Potential

In May 2020 Empire identified a steeply plunging structure trending in a North-East direction at Smiths 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 North-East and down dip. There is every likelihood the copper-nickel mineralisation has continuity 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 elevated nickel (>0.2% Ni), low-level gold and cobalt values demonstrate the potential of the prospect[[4]] .

Four RC holes for 746m were drilled at Smiths Well during the quarter targeting the NorthEast plunge and down dip extensions of the structure. Samples have been submitted for analysis with results pending.

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Figure 4 – Smiths Well Historical Drill Collar Locations.

Base Image RTP_Eagcs50ml.

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EMPIRE RESOURCES LIMITED ASX: ERL

ASX Announcement 19 July 2021

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INVESTMENTS

Dacian Gold

During the March 2021 quarter Dacian Gold Limited (ASX:DCN) completed its scrip offer for NTM Gold Limited (ASX:NTM) and in the process Empire received 16,995,818 Dacian shares for its NTM shares. Empire acquired its shares in NTM in July 2019 at $0.0325 per share for $1,499,875 invested[[5]] , equivalent to $0.08775/DCN share.

During the quarter Empire sold 2,715,000 Dacian shares at an average price of $0.379 per share for net proceeds of $1,026,601.

At the close of the quarter the Company held 13.0 million shares in Dacian Gold Limited valued at $3.4 million.

Penny’s Find Royalty

Empire is entitled to royalty payments on gold produced from the Penny’s Find Gold Mine to the extent of 5% of gold recovered up to 50,000 oz and 2.5% on gold produced above that amount.

The Penny’s Find Gold Mine is operated as a joint venture between Orminex Limited (ASX:ONX) and Horizon Minerals Ltd (ASX:HRZ). The joint venture allows resource definition and technical works to be fast tracked with the aim for a development decision to be made during the September Quarter 2021[[6]] .

During the quarter the JV partners announced high-grade gold intercepts from 2,013m of Reverse Circulation (RC) and 2,765m of diamond (HQ3) for 4,778m drilled at the Penny’s Find Gold Mine[[][6][7]] .

High grade gold intercepts reported during the quarter include:

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• 3.7m @ 7.46g/t Au from 215.3m in P1_005;

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• 2.7m @ 8.64g/t Au from 171.4m and 1.7m @ 17.91g/t Au from 178.9m in P1_007;

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• 1.9m @ 13.95g/t Au from 251m in P1_009;

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• 5.0m @ 5.27g/t Au from 180.3m in P1_010;

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• 0.9m @ 23.56g/t Au from 216.7m in P1_006;

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• 2.5m @ 7.45g/t Au from 226.0 in P1_020;

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• 2.0m @ 8.47 g/t Au from 227m in P1_008;

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• 0.78m @ 13.34g/t Au from 194.0m in P1_004;

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• 0.50m @ 17.35g/t Au from 185.6m in P1_002; and,

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• 0.47m @ 17.25g/t Au from 208.9m in P1_003.

Horizon Minerals reports that all statutory approvals are in place and a toll milling agreement has been executed for ore processing in the second half of 2021[[8]] .

Empire is pleased with the progress the joint venture has made so far and looks forward to further development of the Penny’s Find Gold Mine throughout 2021.

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EMPIRE RESOURCES LIMITED ASX: ERL

ASX Announcement 19 July 2021

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CORPORATE

Financial Position

Expenditure during the quarter was approximately $447,000 with cash on hand at quarter’s end of $1,324,000.

Eastern Goldfields Milling Services (EGMS)

Empire remains in dispute with Eastern Goldfield Milling Services Pty Ltd regarding gold unaccounted for following a toll treatment milling campaign conducted by EGMS at its Burbanks Gold Processing facility in late 2017. Empire is seeking to recover gold valued in excess of $1 Million. The matter has been referred to Arbitration.

An arbitration hearing was held during the first week of March 2021. The Arbitrator is awaiting further submissions from the parties prior to finalising his ruling.

Additional ASX Information

ASX Listing Rule 5.3.5: The Company advises that $69,000 was paid to related parties or their associates during the quarter, comprising Executive Director salary and superannuation, and Non-Executive Director fees.

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

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EMPIRE RESOURCES LIMITED ASX: ERL

ASX Announcement 19 July 2021

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About Empire

Empire Resources Limited (ASX:ERL) is a gold and copper focussed exploration and development company. Empire owns 100% of three highly prospective projects. The Yuinmery Copper-Gold Project 470km North-East of Perth in the base metal rich Youanmi Greenstone Belt, the Barloweerie multi-element precious and base metal project in the Murchison Region and the Penny’s Gold Project 45km North-East 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.

Competent Person Statements

The information in this report that relates to Exploration Results is based on information compiled and/or reviewed by Gerald Johnson, who is a Member of the Australasian Institute of Mining and Metallurgy. Mr Johnson is an independent geological consultant and has sufficient experience that is relevant to the style of mineralisation and type of deposit 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 Johnson consents to the inclusion in the report 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.

Additional JORC Information

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

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

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

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

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

5. ASX:ERL “ Empire Makes Investment in NTM Gold Limited ” 11 July 2019

6. ASX:HRZ “ Excellent Initial High Grade Drilling Results from Penny’s Find Joint Venture ” 14 April 2021

7. ASX:ONX “ Further High-Grade Drilling Intersections at Penny’s Find Gold Mine ” 30 April 2021

8. ASX:HRZ “ Gold Coast Investment Showcase ” 23 June 2021

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ASX Announcement 19 July 2021

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Empire Resources Project Locations

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ASX Announcement 19 July 2021

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	Tenement Holdings @ 30 June 2021
Project	Tenement ID % Interest Held 31 March 2021 % Interest Held 30 June 2021 Comments
Penny’s	E27/553 100 0 Surrendered
	E27/591 100 100
	E27/592 100 100
	E27/593 100 100
	P27/2245 100 100
	P27/2262 100 100
	E27/640 0 0 Application
Yuinmery	M57/265 100 100
	M57/636 100 100
	E57/1037 100 100
	E57/681 91.89 91.89
	E57/1027 91.89 91.89
	E57/1159 100 100
Barloweerie	E59/2306 100 100
	E59/2521 0 0 Application
	E59/2522 0 0 Application
	E59/2523 0 0 Application
Nanadie Well	E51/1938 100 100
	E51/1985 100 100
	E20/968 100 100
Meekatharra	E51/1995 0 0 Application
Wiluna	P53/1707 0 0 Application

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EMPIRE RESOURCES LIMITED ASX: ERL