EMU NL — Capital/Financing Update 2020

Sep 27, 2020

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EMU NL
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EMU TRANSFORMS INTO WA-FOCUSSED EXPLORATION & PRODUCTION COMPANY

Emu NL ( EMU or the Company , ASX: EMU) is pleased to announce that it has transitioned into a WA-focused precious and base metals explorer and aspiring gold producer following the acquisition of the:

• Gnows Nest Project: near-term production opportunity covering the historic high-grade Gnows Nest Gold Mine located near Yalgoo.

• Sunfire Project: multiple trends hosting mafic-ultramafic intrusives prospective for nickelcopper-platinum group element (Ni-Cu-PGE) mineralisation located near Bridgetown.

• Graceland Project: untested prominent magnetic anomaly prospective for Ni-Cu-PGE mineralisation located near Lake Grace.

• Viper Project: unexplored trend hosting historic copper workings located near Jerramungup.

All projects are situated close to the State’s capital city, Perth within the emerging South West Terrane in the Wheatbelt Region of WA and the Youanmi Terrane in the Mid-West Region of WA, and add to Emu’s existing 8 Mile Dam Cu-Ni project.

A further acquisition, of an exciting large-scale grass roots project with the perceived potential to host multiple world class deposits, is under negotiation.

Commenting on the acquisitions, EMU’s Chairman, Peter Thomas, said: “ We are delighted to have secured these exciting projects on such favourable terms in the face of bullish sentiment for gold, nickel and PGE’s.

Gnows Nest represents a near-term, gold production opportunity with a defined initial resource covering an exceptionally high-grade historic mine. Significantly, it sits within a highly prospective geological setting with considerable exploration upside. The spot price of gold, coupled with the Board’s vision as to where it may come to rest, explains why the Company is so excited that it has secured this project, which has been tied up in the hands of private landholders for over 30 years.

In addition, exploration work can commence immediately on our highly prospective base metal exploration portfolio within the emerging South West Terrane of WA, highlighted by the recent Julimar PGE-Ni-Cu discovery by Chalice Gold Mines Limited.

Following our exit from Chile and subsequent travel restrictions imposed by the COVID-19 pandemic, the Board made the strategic decision to focus on WA, where it is expected our activities can continue largely unaffected by the pandemic. These compelling acquisitions have resulted from an extensive and comprehensive project generation and due diligence process and were directed at being a value-accretive and well-rounded early to advanced-stage platform from which to launch the Company in WA.

We are now well-positioned to hit the ground running in a cost-effective manner and expect to announce a series of milestones over the coming months, with a view of advancing towards production and generating near-term cash flow from the Gnows Nest project. Another WA gold project is under consideration and while there can be no guarantee a transaction will be concluded, negotiations are at an advanced stage.”

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HIGHLIGHTS - GNOWS NEST

• Agreement executed to secure 100% of the shares in Coruscant Minerals Pty Ltd, the owner of the Gnows Nest Gold Project located 32km southeast of Yalgoo in WA

• Project hosts the historic Gnows Nest gold mine with reported production of ~27,925oz at a recovered grade of 22g/t Au between 1923 and 1941

• It has been reported that that mining ceased during the World War II due to the shortage of labour

• Recent drilling by Coruscant has outlined a shallow Mineral Resource which remains open at depth and along strike

• EMU has concluded there exists extensive exploration upside potential within the central mining lease and surrounding exploration leases

• EMU’s principal focus will be to advance the Mineral Resource as a near-term production opportunity via a simple shallow open cut gold operation for possible toll treatment

• Significant scope for resource expansion and further high-grade gold discoveries along strike and down dip of the former mine and within the surrounding exploration holding

• Project located within same greenstone belt that hosts the world-class Golden Grove copper-zinc mine and has been the focus of recent exploration success for gold by Firefly Resources Limited (ASX: FFR) and base metals by Venture Minerals Limited (ASX: VMS)

• Targeted program of IP geophysics and RC drilling to commence Q4 2020

Refer also ASX Announcement (EMU:ASX) 28 September 2020 “Emu Secures Historic High-grade Gnows Nest Gold Project near Yalgoo, WA”

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Figure 1: Location map of EMU project acquisitions in WA (NB: The Menzies “8 Mile Dam” project was granted to Emu on 23 July 2020)

HIGHLIGHTS - AVENGER PORTFOLIO

• Acquisition of 3 projects covering a combined area of 91.3km[2] with strong potential for hosting Ni, Cu and PGE mineralisation

• Additional EMU tenement applications of approximately 120km[2] covering areas of strategic interest at 2 of the projects

• Modest purchase consideration to deliver 100% ownership of each project.

• All projects located within the emerging South West Terrane in the Wheatbelt Region of WA.

• Flagship Sunfire Project covers 3 interpreted trends hosting mafic-ultramafic rocks including a significant Ni-Cu anomaly in close proximity to the recently announced Venture Minerals/Chalice Gold Mines ‘Julimar lookalike’ JV.

• Graceland Project covers a largely untested 5km-long magnetic feature interpreted as a mafic-ultramafic intrusion prospective for Ni-mineralisation.

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• Viper Project centred around the historic Netty Copper Mine, interpreted to be a discrete mineral occurrence along a broad base metal trend associated with shearing at the contact of a mafic intrusive with a granite dome.

• Intermittent previous mining and exploration activity on all project areas provides support for a targeted program of exploration to commence immediately.

Refer also ASX Announcement (EMU:ASX) 28 September 2020 “Emu Secures Highly Prospective Exploration Portfolio in WA”

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Figure 2: Location map of EMU projects in WA overlain on geology

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EMU will undertake a share issue to sophisticated and professional investors to assist the funding of the acquisitions.

Refer also ASX Announcement (EMU:ASX) 28 September 2020 “Placement to Sophisticated and Professional Investors”

COMPETENT PERSON’S STATEMENT

Emu NL ABN 50 127 291 927

ASX Codes: EMU and EMUCA

10 Walker Ave West Perth, WA 6005 T +61 8 9226 4266 E info@emunl.com.au PO Box 1112 West Perth, WA 6872

Fully paid shares (listed) 298,005,436 (inc. 15.7m which EMU can buy back for nil consideration)

Contributing Shares (listed)

33,725,496 paid to $0.03, $0.03 to pay, no call before 31/12/2023

Options (unlisted)

65,759,750 options to acquire partly paid shares, exercisable at $0.02 each, on or before 21 December 2020 84,355,000 options to acquire fully paid shares, exercisable at $0.20 each, on or before 15 January 2021 8,454,468 options to acquire fully paid shares, exercisable at $0.20 each, on or before 16 January 2021 22,000,000 options to acquire partly paid shares, exercisable at $0.03 each, on or before 21 December 2021

Directors:

Peter Thomas

Non-Executive Chairman

Terry Streeter Non-Executive Director

The information in this report that relates to Exploration Results is based on, and fairly represents information and supporting documentation prepared by Mr. Francisco Montes, a Competent Person who is a Member of the Australian Institute of Geoscientists. Mr. Montes is an employee of Emu NL and has sufficient experience in the activity which 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 Montes consents to the inclusion herein of the matters based upon his information in the form and context in which it appears.

FORWARD LOOKING STATEMENTS

As a result of a variety of risks, uncertainties and other factors, actual events and results may differ materially from any forward looking and other statements herein not purporting to be of historical fact. Any statements concerning mining reserves, resources and exploration results are forward looking in that they involve estimates based on assumptions. Forward looking statements are based on management’s beliefs, opinions and estimates as of the respective dates they are made. The Company does not assume any obligation to update forward looking statements even where beliefs, opinions and estimates change or should do so given changed circumstances and developments.

Gavin Rutherford

Non-Executive Director

Tim Staermose

Non-Executive Director

Investor enquiries: CEO Doug Grewar T +61 8 9226 4266 E info@emunl.com.au

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