EMU NL — Interim / Quarterly Report 2021

Apr 28, 2021

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EMU NL
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SUMMARY

• EMU commenced RC drilling programmes at Gnows Nest Gold Project, near Yalgoo, WA

• EMU announced high-grade gold intercepts from assays taken from maiden RC drilling programme at both Monte Cristo Prospect and Gnows Nest

• EMU commenced Auger drilling programmes at Viper, Graceland and 8 Mile Dam Copper / Nickel and PGE prospects

EMU NL (“EMU” or “The Company”) completed significant drilling programmes during the quarter at a number of its exploration projects. Following successful acquisitions in the previous period, EMU immediately developed planning and activities to progress work at these projects. In all, 10,932m of RC Drilling were completed at the Gnows Nest Gold Project whilst 1077m of auger drilling were completed at EMU’s Nickel Copper PGE projects (Table 1).

Table 1 - Drilling Statistics for	Table 1 - Drilling Statistics for	Q1 2021
Project/ Prospect	Drilling Type	No Holes Drilled	Metres Drilled (m)	Max Depth (m)	Average Depth (m)
Gnows Nest	RC	88	9166.0	196.0	104.6
Monte Cristo	RC	17	1766.0	130.0	103.9
Viper	Auger	158	323.5	5.0	2.0
Graceland	Auger	150	280.4	4.5	1.9
8 Mile Dam	Auger	143	473.5	18.0	3.3
			10932.0 1077.4
RC Drilling Totals (m) =		105	10932.0
Auger Drilling Totals (m) =		451	1077.4

EXPLORATION DRILLING PROGRAMMES COMMENCED AND COMPLETED AT GNOWS NEST AND MONTE CRISTO

Following the acquisitions of Gnows Nest Gold Project and the adjoining Monte Cristo Gold Prospect near Yalgoo WA, in the latter half of 2020, EMU commenced an RC drilling programme in January 2021. The initial programme included a budget for 9,000m of RC drilling designed to verify historical drilling and test for extensions of the mineralised envelope in each of the target areas. A total of 10,932m was drilled during the quarter represented by 9,166m at Gnows Nest and 1,766m at Monte Cristo Gold Prospect.

At Monte Cristo Gold Prospect, EMU sought to confirm and verify historic drill intercepts and test for depth and strike extensions to the mineralised zone in this historical gold working.

EMU provisionally scheduled a RC drilling programme, at Gnows Nest Prospect, designed to extend the known shallow mineralisation delineated in the 2018 and 2019 drilling campaigns completed by Coruscant Minerals Pty Ltd. EMU’s programme was directed at increasing the

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JORC 2012 Indicated and Inferred Resource of 113,400t at 3.78g/t Au for 13,777oz Au (See ASX Announcement 28 September 2020 “Emu Secures Historic High Grade Gnows Nest Gold Project WA”). EMU’s programme was designed to test strike and depth extensions of the lode which remained open along strike to the North, South and at depth.

GNOWS NEST Prospect: Assay Results Confirmed High Grade Gold Mineralisation

Significant intercepts from the programme reported in ASX Announcement on 22 February 2021included:

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• 4m at 20.40g/t gold from 51m including; o 1m at 57.41g/t gold from 52m and o 1m at 16.86g/t gold from 54m

• 4m at 18.32g/t gold from 95m including; o 1m at 17.53g/t gold from 95m; and o 1m at 51.66g/t gold from 96m

• 3m at 42.18g/t gold from 77m including; o 1m at 89.57g/t gold from 78m; and o 1m at 32.64g/t gold from 79m

• 2m at 26.88g/t gold from 60m including: o 1m at 53.05g/t gold from 60m

• 6m at 6.42g/t gold from 116m including;

• 1m at 30.19g/t gold from 118m; and

• 1m at 47.12g/t gold from 63m

EMU completed drilling at Gnows Nest Prospect on 26 March 2021 and awaits assay results from the programme.

MONTE CRISTO Gold Prospect: Assay Results Confirmed High Grade Gold Mineralisation

Significant intercepts from the programme reported in ASX Announcement on 22 February 2021included:

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3m at 13.35g/t gold from 67m including; o 1m at 19.90g/t gold from 68m 6m at 6.51g/t gold from 120m including; o 1m at 22.77g/t gold from 121 4m at 3.29g/t gold from 120m including; o 1m at 5.97g/t gold from 121m

EMU completed drilling at Monte Cristo Prospect on 26 March 2021 and is awaiting assay results from the programme.

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AUGER DRILLING PROGRAMMES COMMENCED AND COMPLETED AT VIPER, GRACELAND AND 8 MILE DAM

EMU completed the field component of a first pass auger geochemistry sampling programme at its WA Viper Project, near Jerramungup, Graceland Project near Hyden and its 8 Mile Dam Project near Menzies. The programmes represented the first systematic geochemical sampling ever completed in the target areas and were designed to test for low-level dispersions of copper, nickel and platinum group element mineralisation. The drilling programme was completed utilising a contractor-supplied 4-wheel drive mounted auger rig which had the capability of drilling up to depths of 30m. The geologist-supervised programme completed approximately 150 holes in each project (see Table 1) on broad spaced lines. Rock chips and surface samples were also collected during the programme.

VIPER Auger Drilling Programme

A total of 158 samples were collected over 10 lines with nominal spacing of 400m between lines and 100m between samples for a total of 323 drilled metres over an area of approximately 6km[2] . Average depth of sample taken was approximately 2m. Sampling was conducted along North-South lines at 400m spacings along the East-West trending Netty mafic dyke geological feature over a total of 3.6km, centred at the historic high-grade Netty Copper Mine. The samples are currently being assayed by ALS Laboratories utilising their analytical method MEMS41L (aqua regia digestion with super-trace ICP-MS analysis for a 53-element suite). During the sampling, visible malachite (copper carbonate) was evident in mineralised areas associated with the host granite and intrusive mafic lithologies.

GRACELAND Auger Drilling Programme

A total of 150 samples were taken over 10 lines with nominal spacings of 400m between lines and 100m between auger collar positions for a total of 280 drilled metres over an area of approximately 7km[2] . Average depth of sample taken was approximately 1.9m. The auger sampling was conducted along East-West lines at 400m spacings designed to fully test the North-South extending interpreted magnetic anomaly. The samples are currently being assayed by ALS Laboratories utilising aqua regia digestion with super-trace ICP-MS analysis for a 53element suite.

8 MILE DAM Auger Drilling Programme

A total of 143 samples were taken over 3 lines with a spacing of 100m between auger collar positions for a total of 473 drilled metres over an area of 28km[2] . Average depth of sample taken was approximately 3.3m. The auger sampling was conducted along three East-West lines (utilising existing roads wherever possible) and spaced between 3 and 5km apart targeting key positions over the interpreted greenstone units under colluvial cover. Sampling lines were established between 3 and 5 km apart and transverse East West over interpreted greenstone undercover units. The samples are currently being assayed by ALS Laboratories utilising aqua regia digestion with super-trace ICP-MS analysis for a 53-element suite.

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CORPORATE ACTIVITIES

Capital Raising

During the quarter, the Company completed a placement of 77,251,906 shares ( New Shares ) to sophisticated and professional investors raising ~$3 million after costs, with the proceeds being applied to assist with the final acquisition settlement of EMU’s Gnows Nest tenements, progressing the Company’s exploration activities at its other West Australian projects and funding its continuing working capital expenditures.

Applicants for New Shares were entitled to be issued with one (1) free option for every two (2) New Shares applied for. These options ( New Options ) to subscribe for fully paid shares are exercisable at fifteen ($0.15) each on or before 23 August 2021.

The New Shares were listed on ASX and rank equally with the existing fully paid ordinary shares quoted as ASX:EMU.

The ASX Listing Rules permitted the making of the placement as follows:

1. 50,000,000 New Shares were issued as previously approved at the Company’s AGM held on 30 November 2020;

2. 27,251,906 New Shares were issued under Listing Rule 7.1A; and

3. the remaining 38,625,953 New Options were issued within its Listing Rule 7.1 placement capacity.

During the quarter, 84,355,000 unlisted options to acquire fully paid ordinary shares (exercisable at $0.20 each) expired on 15 January 2021; 8,454,468 unlisted options to acquire fully paid ordinary shares (exercisable at $0.20 each) expired on 16 January 2021, and 500,000 options exercisable at $0.15 each on or before 23 August 2021 were cancelled by agreement.

Shareholder approval of contracts and Notice of Meeting

ASX finally approved the issue of the notice to convene a general meeting of shareholders to consider approving the issue of securities pursuant to the terms of the Avenger Projects and Gnows Nest agreements (announced ASX on 28 September 2020). Relevant extensions to the contract terms were secured.

ASX Additional Information

EMU provides the following information pursuant to ASX Listing Rule requirements:

1. ASX Listing Rule 5.3.1 - Exploration and Evaluation Expenditure during the quarter was $174k. Full details of exploration activities during the March quarter are set out in this report;

2. ASX Listing Rule 5.3.2 - There was no substantive mining production or development activity during the quarter;

3. ASX Listing Rule 5.3.3 – Details of mining tenements acquired or disposed of during the quarter, and held at the end of the quarter are set out in this report; and

4. ASX Listing Rule 5.3.5 - Payment to related parties of the Company and their associates during the quarter: $53k cash. The Company advises that this relates to remuneration for services as directors (including statutory superannuation), and for office rental paid to a director.

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RELEASE AUTHORISED BY THE BOARD

Contact Details: Doug Grewar - Office: +61 8 9226 4266; Mobile: 0419 833 604

Table 2: Schedule of Tenements – Western Australia

Table 2 - Schedule of Tenements - Western Australia

Table 2 - Schedule of Tenements - Western Australia	Table 2 - Schedule of Tenements - Western Australia	Table 2 - Schedule of Tenements - Western Australia	Table 2 - Schedule of Tenements - Western Australia
Tenement ID (DMIRS ID)	Emu Project	Type	Description/ Status
E29/1080 – Marmion	8 Mile Dam	Exploration	EMU 100% - Granted
E59/2495 – Warramboo	Gnows Nest	Exploration	EMU 100% - Granted
E59/1735 – Gnows Nest	Gnows Nest	Exploration	EMU 100% - Granted - in process of being transferred
M59/739 – Gnows Nest	Gnows Nest	Mining	EMU 100% - Granted - in process of being transferred
M59/763 – Gnows Nest	Gnows Nest	Mining	EMU 100% - Application - in process of being transferred
P59/2068 – Monte Cristo	Gnows Nest	Exploration	EMU 100% - Granted - in process of being transferred
P59/2071 – Gnows Nest	Gnows Nest	Exploration	EMU 100% - Granted - in process of being transferred
P59/2072 – Gnows Nest	Gnows Nest	Exploration	EMU 100% - Granted - in process of being transferred
P59/2073 – Gnows Nest	Gnows Nest	Exploration	EMU 100% - Granted – in process of being transferred
P59/2074 – Gnows Nest	Gnows Nest	Exploration	EMU 100% - Granted – in process of being transferred
E70/5146 - Graceland	Graceland	Exploration	EMU 100% - Granted – in process of being transferred
E70/5155 - Viper	Viper	Exploration	EMU 100% - Granted – in process of being transferred
E70/5507 – Sunfire	Sunfire	Exploration	EMU 100% - Application – in process of being transferred
E70/5602 – Kent	Viper	Exploration	EMU 100% - Application
E70/5603 – Roe	Graceland	Exploration	EMU 100% - Application

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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) 433,657,342 (including 18.6m which EMU can buy back for nil consideration) Contributing Shares (listed) 40,485,069 paid to $0.03, $0.03 to pay, no call before 31/12/2023 Options (unlisted)

38,125,953 options to acquire fully paid shares, exercisable at $0.15 each, on or before 23 August 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 Gavin Rutherford Non-Executive Director Tim Staermose Non-Executive Director Investor enquiries: Doug Grewar CEO T +61 8 9226 4266 M +61 419833604 E info@emunl.com.au

The information in this report that relates to exploration results is based on, and fairly represents information and supporting documentation prepared by 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.

NEW INFORMATION OR DATA

EMU confirms that it is not aware of any new information or data that materially affects the information included in the original market announcements and, in the case of estimates of Mineral Resources, which all material assumptions and technical parameters underpinning the estimates in the relevant market announcement continue to apply and have not materially changed. The Company confirms that the form and context in which the Competent Person’s findings are presented have not materially changed from the original market announcement.

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