ENEGEX LIMITED — Interim / Quarterly Report 2023

Oct 30, 2022

ASX Announcement

ASX:ENX

31 October 2022

Quarterly Activities Report For the period ending 30 September 2022

Highlights

• Field reconnaissance trip completed for the Hart Project.

• Magnetic gabbro sill delineated at the Hart project with potential for Ni-Cu-PGE and V-Ti mineralisation.

• Land access successfully negotiated for two high priority geophysical targets at the Miamoon project.

• Land access negotiations commenced at the Goomalling and Green Hills projects.

• Preparations for West Yilgarn field season in progress.

West Yilgarn Ni-Cu-PGE Projects – Enegex 100%

Enegex (ASX: ENX ) has built a strategic tenure position in the West Yilgarn Ni-CuPGE province of Western Australia. The prospectivity of the West Yilgarn as Miamoon an endowed mineral province is highlighted by the Miling discovery of the nearby Gonneville Walebing Ni-Cu-PGE resource at Julimar ( Figure 1 ) by Chalice Mining. Bindi Resource Yarawinda Brook The province is now Sovereign a focus of Goomalling exploration activity following the Julimar discovery. Gonneville Resource Newleyin Greenhills

Figure 1. Enegex Tenure across the West Yilgarn Ni-Cu-PGE Province.

==> picture [475 x 53] intentionally omitted <==

1

Enegex Project Overview

Enegex has divided its West Yilgarn tenements into five project areas; Miamoon, Miling, Walebing, Goomalling and Green Hills (Figure 2).

The understanding of the Archean geology across the Enegex project areas is still being developed. Private freehold farming land is prevalent across the West Yilgarn province. As a result, the area has, until recently, undergone precursory geology and explorative work largely limited to broad-scale government mapping, interpreting the bedrock geology as metamorphic sedimentary, greenstone and granite ( Figure 2 ). The economic potential of the province is highlighted by the Julimar discovery of Ni-Cu-PGE mineralisation within a mafic-ultramafic host rock sequence (the Gonneville intrusion) in an area historically interpreted to be a granitic domain.

==> picture [444 x 505] intentionally omitted <==

Figure 2. GSWA Interpreted bedrock geology 1:500,000 scale showing Enegex Tenure.

==> picture [474 x 54] intentionally omitted <==

2

Whilst the geology of Enegex tenements is, at this stage, not well defined, government geology maps record small areas of outcropping mafic (greenstone) to ultramafic units scattered across a number of the tenement areas including Miamoon and Milling. The presence of these maficultramafic rock units on Enegex tenements is encouraging, with further definition and evaluation of these units needed to determine mineralisation potential.

Exploration Activities

Summary

Activities during the quarter were focused on landholder negotiations over all of the project areas in order to gain access to targets on private freehold property. Contact with landowners over higher ranked target areas has been prioritised which will allow expeditious access once crops have been harvested.

Enegex’s near term objective is to define quality drill targets for drill testing as soon as feasible. Target rankings are being dynamically assessed based on accessibility, reconnaissance field visits and geochemical sampling.

Miamoon Project

At its flagship Miamoon Project, Enegex acquired an Airborne Falcon Gravity Gradiometer (AGG) survey over the western part of the Miamoon Project in late 2021 for which interpretation and modelling was subsequently completed.

Numerous geophysical target areas were defined from the gravity data interpretation and are shown on the right panel of Figure 3 , with priority targets highlighted in red.

During the quarter, access was successfully negotiated to geophysical targets 29 and 30 located in the far south west of the Miamoon project. These are high priority coincident magnetic and gravity anomalies.

A DMIRS co-funded drilling grant under the Exploration Incentive Scheme (EIS) in respect of RC drilling at the Miamoon Project was previously awarded to Enegex and is available to use. The grant is for an amount of $90,500 and based on drilling 6 RC holes for 1600m to test the Spitfire target.

However, access has not been granted over the ‘Spitfire’ or the ‘Crusader’ priority areas and thus limited progress has been made with these targets. Negotiations for access to the landholdings that cover these targets will continue.

==> picture [182 x 362] intentionally omitted <==

----- Start of picture text -----

Spitfire
Crusader
Targets 29/30
----- End of picture text -----

Figure 3. Miamoon Gravity Survey and anomalies.

==> picture [474 x 54] intentionally omitted <==

3

Miling Project

Enegex has a number of prioritised targets at the Miling project where magnetic anomalies are coincident with prospective stratigraphy and also where mineralised trends identified on adjacent tenements potentially extend in strike into Enegex tenements (Figure 4).

Land access is improving over priority target areas with ongoing landholder negotiations at the Miling project. Landowner access negotiations for the northern part of E70/5445 where the Ni-Cu-PGE anomaly in the adjacent Todd River Resources tenure is projected to extend are also ongoing.

==> picture [415 x 472] intentionally omitted <==

Figure 4. Miling Project target areas on magnetics and anomalous geochemistry zones.

Several occurrences of mafic and ultramafic rocks were observed prior to the cropping season that are potential host rocks for the mineralisation style that Enegex is targeting. These areas will be the focus of more detailed mapping after crops have been harvested.

==> picture [474 x 54] intentionally omitted <==

4

Other West Yilgarn Projects Areas

Enegex’s activities at its southern West Yilgarn project areas (Walebing, Goomalling and Green Hills) incorporates ongoing interpretation and data integration to define first pass target areas. Negotiations with landowners was also a focus during the quarter and will be intensified once crops are harvested (Figure 5) .

Negotiations with landowners in the Goomalling and Green Hills project areas commenced during the quarter. Landowners in these areas have generally been amenable to exploration on their land. Access was granted by 10 landowners at the Goomalling project giving access to approximately 50% of target areas. A higher density of landowners at the Green Hills project makes gaining access to target areas more challenging. Negotiations with landowners from the Walebing project also advanced further during the quarter.

Extraction and capture of assay and spatial geology data for all historical digital data and raster data was completed for the Green Hills project area during the quarter. The data was uploaded to Enegex’s SQL database.

Interpretation of the new datasets is ongoing and will be integrated with historical map and data sets to underpin the target generative activities that define Enegex’s forward exploration framework. An important aspect of this process will be field checking target areas.

==> picture [452 x 255] intentionally omitted <==

Figure 5. Canola crop at the Green Hills project waiting to be harvested.

==> picture [474 x 54] intentionally omitted <==

5

Hart Project, North Kimberley - Enegex 100%

Enegex’s Hart project consists of two tenement areas along the eastern margin of the Kimberley Basin of Western Australia ( Figure 6 ). The tenements incorporate one granted tenement covering 374km[2] (E80/5354) and a second tenement of 350km[2] under application.

The geology of the Hart project has been mapped largely as a regionally extensive Proterozoic sill complex termed the “Hart Dolerite”. The understanding of the geology is still developing within the project area, but mapping of the Hart Dolerite complex to the north of Enegex’s project area indicates the dolerite units consist of a layered series of intrusive rocks including mafic sills that are tholeiitic in composition. Tholeiitic compositions, although associated with a wide range of tectonic settings (continental flood basalt provinces, back-arc basins, volcanic arcs and mid ocean ridges), can often be associated with higher prospectivity for Ni, Cu, PGE, V and Ti mineralisation, concentrated in specific layers within the intrusive complex.

Previous exploration by other companies within the mafic-ultramafic intrusion units within the Halls Creek Orogen have identified a number of Ni sulphide deposits including the Savannah (Sally Malay) and Copernicus (Alicia Downs Ultramafics) deposits in addition to numerous untested prospects along the belt.

==> picture [396 x 444] intentionally omitted <==

Figure 6. Hart Project Location.

6

Exploration Activities

A first-pass field reconnaissance mapping and sampling program was completed between July and August (Figure 7) . The focus of the field campaign was on several high-priority targets identified from a recent desktop geological prospectivity review completed by Dr. Karin Orth on behalf of Enegex. These targets were prioritised according to a number of factors including lithology, magnetism, worldview-3, radiometrics and the presence of known mineralisation or geochemical anomalism.

==> picture [436 x 546] intentionally omitted <==

----- Start of picture text -----

Hart Project
Northwest-dyke
Target
Archies Creek Target
Central Target
Duracks Target
Pelican Target
Gum Hole Target
----- End of picture text -----

Figure 7. Completed field traverses and sites visited over total magnetic image.

==> picture [474 x 54] intentionally omitted <==

7

Exploration activities completed included conceptual target ground validation, rock chip sampling, traverse mapping, magnetic susceptibility data collection and pXRF data on collected rocks across the main target areas. A series of 9 traverse lines each up to 5km long were completed on foot over 4 target areas across the Hart Dolerite intrusive complex and additional targets were tested by helicopter further to the north.

Four of the traverse lines delineated a magnetic gabbro sill analogous to the hosts rocks of the Speewah Dome V-Ti-Fe resource (Figure 8A) . The magnetic sill has a magnetic susceptibility of up to 92 x 10[-3] SI and an interpreted strike length of over 50km within Enegex tenure.

A felsic rock unit prospective for low-sulfide style PGE-Cu-Ni mineralisation was also defined that consists of multiple horizons with an extensive lateral footprint (Figure 8B) . These felsic horizons are also prospective for Cu-Au mineralisation at fault intersections.

==> picture [462 x 157] intentionally omitted <==

----- Start of picture text -----

A B
----- End of picture text -----

Figure 8. A) Disseminated magnetite gabbro sample and B) felsic differentiated sample that are prospective target horizons for V-Ti and Ni-Cu-PGE mineralisation.

A total of 214 samples were collected with a subset of approximately 140 samples selected and submitted for multi-element analysis at Genalysis Intertek, Perth, and final results are pending. Several samples have also been selected for petrographic and short wave infrared analysis.

Once assay results have been received, all data will be used to assess the prospectivity and to refine and update the exploration model and to prioritise target areas for further work at the commencement of the next dry season.

==> picture [474 x 54] intentionally omitted <==

8

Corporate

During the quarter 2,472,307 listed options were exercised. The options had an expiry date of 31 August 2022 and official quotation of the options ceased on 25 August 2022. Options that were not exercised have now lapsed.

By Order of the Board

==> picture [99 x 36] intentionally omitted <==

Rae Clark , Director 31 October 2022

==> picture [474 x 54] intentionally omitted <==

9

Additional Information Required by Listing Rules 5.3.3 and 5.4.3

Mining Tenements held/applied for at the end of the quarter and their location

Tenement	Enegex Interest	Km2	Tenement Status
Western Australia (Kimberley Region)
E80/5354	100%	373.79	Granted
E80/5355	100%	350.22	Application
Western Australia (South-West Terrane)
E 70/5439	100%	203.55	Granted
E 70/5440	100%	206.21	Granted
E 70/5441	100%	85.43	Granted
E 70/5442	100%	82.40	Granted
E 70/5446	100%	207.76	Granted
E 70/5459	100%	207.64	Granted
E 70/5457	100%	207.55	Granted
E 70/5458	100%	208.00	Granted
E 70/5460	100%	207.71	Granted
E 70/5463	100%	207.97	Granted
E 70/5444	100%*	204.00	Granted
E 70/5445	100%*	203.93	Granted
E 70/5566	100%	203.78	Granted
E 70/5567	100%	204.06	Granted
E 70/5568	100%	203.47	Granted
E 70/5569	100%	203.83	Granted
E 70/5570	100%	203.45	Granted
E 70/5571	100%	203.72	Granted
E 70/5580	100%	214.18	Granted
E 70/5631	100%	115.06	Granted

• via First Right of Refusal

Tenements acquired during the quarter and their location

Nil

Tenements disposed of during the quarter and their location Nil

Beneficial percentage interests held in farm ‐ in or farm ‐ out agreements at the end of the Quarter: Nil

Additional Information Required by Listing Rule 5.3.5

Payments to related parties during the quarter included in Appendix 5B – Quarterly Cash Flow Report

Payments were made to directors and their associates during the quarter totaling approximately $148,000. Payments were for contracted services including consulting fees, office costs and administrative support.

==> picture [474 x 54] intentionally omitted <==

10