ENOVA MINING LIMITED — Interim / Quarterly Report 2021

Oct 26, 2021

ASX ANNOUNCEMENT + ASX: ENV

27[th] October 2021

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Enova Mining Limited ABN: 64 087 595 980 Reg. Office: Level 26, 360 Collins Street, Melbourne VIC 3000, Australia Tel: +61398677199, Fax: +61398678587 Email: contact@enovamining.com Mail: PO Box 783, Berwick, VIC 3806 www.enovamining.com

QUARTERLY ACTIVITIES REPORT FOR PERIOD ENDED 30 SEPTEMBER 2021

CORPORATE

Enova Mining Limited (“Enova”, “the Company”), remains focused on the development of the Charley Creek rare earth project located in central Northern Territory, Australia.

FINANCE

On 22[nd] October 2021, an additional loan arrangement amounting to $50,000 was entered into with EMMCO Sdn. Bhd. (EMMCO, a Malaysian incorporated company). The loan is unsecured, with interest of 15% per annum and a maturity date of 22[nd] April 2022. A total of $350,000 has been funded by EMMCO with funds used to support further metallurgical test work of the Cattle Creek area drill samples and ongoing company operational expenses.

To date the total loans committed to by Enova are tabulated below:

Date of Original Loan	Principal AUD$	Flat Interest Rate per annum	Interest on Maturity AUD$	Due Date/Maturity
9 Oct. 2020	50,000	15%	10,701.95	8 Feb 2022
19 Oct 2020	50,000	15%	10,701.95	19 Feb 2022
12 April 2021	100,000	15%	15,562.50	12 April 2022
26 July 2021	100,000	15%	7,561.64	26 Jan 2022
22 Oct 2021	50,000	15%	3,739.73	22 April 2022

Enova Director, Mr Harun Halim Rasip, is a Director and Shareholder of EMMCO. EMMCO has given assurance that Enova will be able to roll-over the loan and will not call for settlement until Enova is in a stronger financial position.

The Company continues to investigate all available funding options and will access short-terms loans, as available, to reduce the impact of share dilution during this stage of project development. The Company is actively in discussions with investors in anticipation of short-term funding by way of private placements.

The Company and its Board closely monitor and manage its treasury to ensure adequate funds for metallurgical test work and other expense commitments are in place.

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critical metals for a sustainable future

Enova Mining Limited (ABN 64 087 595 980) Quarterly Activities Report – Q3, July to Sept 2021

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PROJECT DEVELOPMENT STRATEGY

Background Information

In 2019, the Company completed air-core drilling at Cattle Creek for both resource estimation and for metallurgical testing. This program explored mineralised zones below alluvium/sediments at depth (up to 60 metres in depth). The core program consisted of 105 vertical NQ air-holes drilled to bedrock on a regular 15 (east-west) x 7 (north-south) grid, with nominal dimensions of 200m x 400m between each hole respectively. A further 34 holes were drilled as infill and re-drill holes for check purposes in the same program. This provides added drill hole density in the areas of interest. Assays for these holes were put on hold due to budget reasons.

Elevated grades of rare earth elements (REE) and scandium (Sc) were identified below the alluvium/sediments at the northern extent of Cattle Creek. The respective lithologic sequence beyond the alluvium, with increasing depth, are weathered metasediments, saprolite and weathered bedrock horizons. Enriched clay zones appear within the saprolite, which can be highly enriched in REE and Sc.

In April 2020, the Company commenced preliminary leach tests (‘sighter tests’) using the services of Brisbane Metallurgical Laboratories (BML), Brisbane. During the latter half of 2020, the Company has accumulated data regarding the natural particle sizing and metal deportment for each major rock type to target certain size fraction for preconcentration of metals prior to gravity and/or leaching processes. Four batches of leaching tests have been completed in 2021. Each batch tested different leach conditions and rock types. Testing focuses on leaching REE and Sc from saprolite rock types. The testing process has been slowed by COVID restrictions and a backlog of assays at the laboratories.

Further details of our tests for the quarter are provided in the Project Activity section of this report.

Enova Mining Strategy

Our immediate strategy focuses on high value mineral zones, identified from our drilling, that will form the basis of the future project. Laboratory test work is necessary to identify and assess hydrometallurgical leach processes to concentrate and recover REE and Sc from higher-grade weathered material below the alluvium horizons. This first step will provide information required as the basis for a process plant design concept, which can then be economically assessed. This work shall enhance the existing gravity process plant project or spawn a new project concept. An added leach plant operation will benefit the project by generating additional resources and mineral value only recoverable by leach processing.

• The Company is progressing with the following work programme, in order of priority: 1. Complete metallurgical tests.

Over the last 12-months, Enova’s leach test work is incrementally improving its in-house chemical extraction techniques for the recovery of valuable minerals (REE and Sc) and to reduce acid consumption. Tests are honing a combination

Enova Mining Limited (ABN 64 087 595 980) Quarterly Activities Report – Q3, July to Sept 2021

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of process techniques, with consideration of practical scalability. Test work must be of a confidence level that confirm ‘reasonable’ expectations for a selected treatment process to be a commercial success;

1. Based on the results from the metallurgical tests above, independent consultants will be engaged to peer-review on-going test work. Following this, engineers will determine the conceptual plant design case and provide recommendations for further work. With sufficient confidence from our metallurgical tests, we expect to finalise our conceptual process flowsheet and estimate key project parameters and costs. This will allow Enova to assess the viability of this process and to ascribe economic cut-off grade(s) to resource data and move forward with supporting resource reporting work. Enova has identified process engineering consultants to review metallurgical test work to assist in the process design;

2. Using samples from 34 infill holes, selected drill intervals are currently being used for metallurgical tests. This material is also assayed and used to enhance our drill database. This data combined with the existing database will be used to update the resource block model;

3. Continue independent technical development of the existing resource grade model using updated drill information, focusing on mineralized zones that support the project concept;

4. With the above technical work complete, Enova can report ‘significant drilling’ intercept results and a technical summary of metallurgical work with a work schedule and budget estimate;

5. Pending further funding, Enova will recommence finalizing the resource model and thereafter undertake economic pit optimization and mine planning work,

6. Finalise JORC 2012 RPEEE (Reasonable Prospects of Eventual Economic Extraction test) requirements and complete the resource estimate for publication;

7. Secure funding to proceed with the scoping study.

Enova expects to publish significant results from the 2019 drilling programme and the metallurgical results from leach test work in late 2021. A resource statement announcement is then planned by early 2022.

Enova is actively seeking interest and support from ‘Sophisticated Investors’. Failing this, the Company will seek public funding, by preparing an Information Memorandum and engaging an advisor to assist in raising funds.

PROJECT ACTIVITY

Current metallurgical leach testing continues using the services of BML in Brisbane Australia. Metallurgical samples are taken from drill sample intervals selected from 34 infill and redrill/twinned holes yet to be assayed. These samples are made up from drill hole intervals passing through the enriched grade saprolite and puggy clay zones. Enova is investigating the sizing and leach character of specific rock types within the mineralized zone, such as weathered meta-sediments, weathered saprolite variants (ferruginous, mottled, pallid), clays and weathered bedrock. The saprolite horizon and puggy clay zones are of primary economic interest due to significant localized zones of high-grade REE and Sc.

Enova Mining Limited (ABN 64 087 595 980) Quarterly Activities Report – Q3, July to Sept 2021

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Enova received assays from a further 71 samples from the 2019 infill drilling programme, mainly to generate samples for the latest round of metallurgical testing. These samples will also provide added assay information to the drilling database. This database will ultimately be used for grade modelling later this year. Arrangements are in place with SRK Perth to commence a model update in late November 2021. This model will incorporate data from prior drilling.

As reported last quarter, encouraging results were received from leach tests in April. Two additional test results were received in May and June, respectively. Three leach tests were completed during the September quarter. The tests successfully achieved high leach efficiency with lower acid consumption. Tests reduced acid consumption by half without affecting the leach efficiency or duration. One test result was extremely encouraging, indicating high leach efficiency is possible without roasting at the low acid consumption levels. Puggy clay (PC) was tested for the first time. Based on drilling data, PC is identified to contain higher Sc and REE grades than any other rock type. The clay tended to clump during the roasting process and leach process test. Despite less-than-ideal physical conditions of clay in leach, the leach efficiency was surprisingly high. Alternate sample preparation techniques are available to overcome this in the future. Few commercial laboratories can accurately measure the spectrum of metals for diagnostic leaching work. Due to industry high demand and few laboratories capable of doing the work, assay turn-around is slow. The whole process of sample preparation, testing, assay work and interpretation, and reaction to results can take up to 10 weeks.

Rather than continue further remote testing, Enova will seek an expert metallurgical engineering group to review the metallurgical test work completed to date. During the quarter, Enova compiled results from test work and developing an operational case proposal in-house. Enova has agreed in principle to engage consultants Engenium Brisbane of the Stantec group, to peer review our work and assist with metallurgical development. This work will principally include reviewing test work commenced in 2019 until present, advising and overseeing future test work with the view to supporting a commercial leach operation. The Scope of Work will be finalized after the compilation is complete in October. This review will lead to a process plant concept that will provide supporting information necessary for the JORC code RPEEE. The study may require follow up tests which will further delay completing the resource estimate.

TENEMENTS

There has been no change in tenement holdings since the March 2020 quarter and no tenement reductions are planned in 2021.

Further information about Enova is available at our website www.enovamining.com.

The market will be kept appraised of developments, as required under ASX Listing Rules and in accord with continuous disclosure requirements.

Enova Mining Limited (ABN 64 087 595 980) Quarterly Activities Report – Q3, July to Sept 2021

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Approved for release by the Board of Enova Mining Limited

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Eric Vesel, CEO/ Executive Director. Enova Mining Limited

Contact details: eric@enovamining.com

About the Charley Creek Project

The Charley Creek rare earth project is located 110 km W-NW of Alice Springs in the central Northern Territory, Australia (see map below, Figure 1). Enova Mining Limited, with 100% project equity, is working to re-establish a resource statement and scoping study. The project is well positioned to be a low environmental impact mine with few encumbrances. Conditions are ideal for low-cost mining, in low laying topography with dry free-dig material. Following a comprehensive drilling programme at Cattle Creek in 2019, over an area of 10 sq.km, metallurgical laboratory test-work is investigating the recovery of rare earth and scandium metals. The targeted final products are high purity rare earth and scandium oxide/hydroxide/carbonates, suitable for export to downstream high-purity product refiners, with potential industrial mineral by-products.

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Figure 1 - Project Location
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Enova Mining Limited (ABN 64 087 595 980) Quarterly Activities Report – Q3, July to Sept 2021

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Disclaimer

This ASX announcement (Announcement) has been prepared by Enova Mining Limited (“Enova” or “the Company”). It should not be considered as an offer or invitation to subscribe for or purchase any securities in the Company or as an inducement to make an offer or invitation with respect to those securities. No agreement to subscribe for securities in the Company will be entered into on the basis of this Announcement.

This Announcement contains summary information about Enova, its subsidiaries, and their activities, which is current as at the date of this Announcement. The information in this Announcement is of a general nature and does not purport to be complete nor does it contain all the information which a prospective investor may require in evaluating a possible investment in Enova.

By its very nature exploration for minerals is a high-risk business and is not suitable for certain investors. Enova’s securities are speculative. Potential investors should consult their stockbroker or financial advisor. There are many risks, both specific to Enova and of a general nature which may affect the future operating and financial performance of Enova and the value of an investment in Enova including but not limited to economic conditions, stock market fluctuations, commodity price movements, regional infrastructure constraints, timing of approvals from relevant authorities, regulatory risks, operational risks and reliance on key personnel.

Certain statements contained in this announcement, including information as to the future financial or ‐ operating performance of Enova and its projects, are forward looking statements that: may include, among other things, statements regarding targets, estimates and assumptions in respect of mineral reserves and mineral resources and anticipated grades and recovery rates, production and prices, recovery costs and results, capital expenditures, and are or may be based on assumptions and estimates related to future technical, economic, market, political, social and other conditions; are necessarily based upon a number of estimates and assumptions that, while considered reasonable by Enova, are inherently subject to significant technical, business, economic, competitive, political and social uncertainties and contingencies; and, involve known and unknown risks and uncertainties that could cause actual events or results to differ materially from estimated or anticipated events or results reflected in such forward ‐ looking statements.

Enova disclaims any intent or obligation to update publicly any forward-looking statements, whether because of new information, future events, or results or otherwise. The words ‘believe’, ‘expect’, ‘anticipate’, ‘indicate’, ‘contemplate’, ‘target’, ‘plan’, ‘intends’, ‘continue’, ‘budget’, ‘estimate’, ‘may’, ‘will’, ‘schedule’ and similar expressions identify forward-looking statements.

All forward-looking statements made in this announcement are qualified by the foregoing cautionary statements. Investors are cautioned that forward-looking statements are not guarantee of future ‐ performance and accordingly investors are cautioned not to put undue reliance on forward looking statements due to the inherent uncertainty therein. No verification: although all reasonable care has been undertaken to ensure that the facts and opinions given in this Announcement are accurate, the information provided in this Announcement has not been independently verified.

Enova Mining Limited (ABN 64 087 595 980) Quarterly Activities Report – Q3, July to Sept 2021

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Rule 5.5

Appendix 5B

Mining exploration entity or oil and gas exploration entity quarterly cash flow report

Enova Mining Limited ABN Quarter ended (“current quarter”) 64 087 595 980 30 September 2021

Consolidated statement of cash flows	Consolidated statement of cash flows	Current quarter	Year to date (9
		$A’000	months)
			$A’000
1.	Cash flows from operating activities
1.1	Receipts from customers
1.2	Payments for
	(a) exploration & evaluation	(31)	(78)
	(b) development
	(c) production
	(d) staff costs
	(e) administration and corporate costs	(49)	(126)
1.3	Dividends received (see note 3)
1.4	Interest received
1.5	Interest and other costs of finance paid
1.6	Income taxes paid
1.7	Government grants and tax incentives
1.8	Other (GST & Workers Compensation	4	14
	Insurance Refund)
1.9	Net cash from / (used in) operating	(76)	(190)
	activities
2.	Cash flows from investing activities
2.1	Payments to acquire or for:
	(a) entities
	(b) tenements
	(c) property, plant and equipment
	(d) exploration & evaluation
	(e) investments
	(f) other non-current assets

ASX Listing Rules Appendix 5B (17/07/20) + See chapter 19 of the ASX Listing Rules for defined terms.

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Appendix 5B

Mining exploration entity or oil and gas exploration entity quarterly cash flow report

Consolidated statement of cash flows	Consolidated statement of cash flows	Current quarter	Year to date (9
		$A’000	months)
			$A’000
2.2	Proceeds from the disposal of:
	(a) entities
	(b) tenements
	(c) property, plant and equipment
	(d) investments
	(e) other non-current assets
2.3	Cash flows from loans to other entities
2.4	Dividends received (see note 3)
2.5	Other (provide details if material)
2.6	Net cash from / (used in) investing
	activities
3.	Cash flows from financing activities
3.1	Proceeds from issues of equity securities
	(excluding convertible debt securities)
3.2	Proceeds from issue of convertible debt
	securities
3.3	Proceeds from exercise of options
3.4	Transaction costs related to issues of equity
	securities or convertible debt securities
3.5	Proceeds from borrowings	100	200
3.6	Repayment of borrowings
3.7	Transaction costs related to loans and
	borrowings
3.8	Dividends paid
3.9	Other (provide details if material)
3.10	Net cash from / (used in) financing	100	200
	activities
4.	Net increase / (decrease) in cash and	34	48
	cash equivalents for the period
4.1	Cash and cash equivalents at beginning of
	period
4.2	Net cash from / (used in) operating	(76)	(190)
	activities (item 1.9 above)
4.3	Net cash from / (used in) investing activities
	(item 2.6 above)
4.4	Net cash from / (used in) financing activities	100	200
	(item 3.10 above)

ASX Listing Rules Appendix 5B (17/07/20) + See chapter 19 of the ASX Listing Rules for defined terms.

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Appendix 5B

Mining exploration entity or oil and gas exploration entity quarterly cash flow report

Consolidated statement of cash flows	Consolidated statement of cash flows	Current quarter	Year to date (9
		$A’000	months)
			$A’000
4.5	Effect of movement in exchange rates on
	cash held
4.6	Cash and cash equivalents at end of	58	58
	period
5.	Reconciliation of cash and cash	Current quarter	Previous quarter
	equivalents	$A’000	$A’000
	at the end of the quarter (as shown in the
	consolidated statement of cash flows) to the
	related items in the accounts
5.1	Bank balances	58	34
5.2	Call deposits
5.3	Bank overdrafts
5.4	Other (provide details)
5.5	Cash and cash equivalents at end of	58	34
	quarter (should equal item 4.6 above)
6.	Payments to related parties of the entity and their		Current quarter
	associates		$A'000
6.1	Aggregate amount of payments to related parties and their		NIL
	associates included in item 1
6.2	Aggregate amount of payments to related parties and their		NIL
	associates included in item 2
Note: if any amounts are shown in items 6.1 or 6.2, your quarterly activity report must include a			description of, and an
explanation for, such payments.

ASX Listing Rules Appendix 5B (17/07/20) + See chapter 19 of the ASX Listing Rules for defined terms.

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Appendix 5B

Mining exploration entity or oil and gas exploration entity quarterly cash flow report

7.	Financing facilities Total facility	Amount drawn at
	Note: the term “facility’ includes all forms of financing arrangements available to the entity. Add notes as necessary for an understanding of the sources of finance available to the entity. amount at quarter end $A’000	quarter end $A’000
7.1	Loan facilities 300	300
7.2	Credit standby arrangements 0	0
7.3	Other (please specify) 0	0
7.4	Total financing facilities 300	300
7.5	Unused financing facilities available at quarter end	-
7.6	Include in the box below a description of each facility above, including	the lender, interest
	rate, maturity date and whether it is secured or unsecured. If any additional financing
	facilities have been entered into or are proposed to be entered into after quarter end,
	include a note providing details of those facilities as well.

New Loan was received on 26[th] July 2021 from EMMCO Mining Sdn Bhd (EMMCO) of AUD$100,000 maturing on the 26[th] Jan 2022.

As of 30.09.2021, four Loans provided by Emmco Mining Sdn Bhd total AUD$300,000 (Principal only) plus accrued interest of AUD$24,812.13. Each loan having a maturity date of 08/02/2022, 19/02/2022, 12/10/2021 and 26/01/2022 respectively.

As at the date of this report, a further loan of $50,000 was received on the 22[nd] Oct. 2021 from EMMCO, with a maturity date of 22/04/2022.

All loans are six-month term with interest at 15% pa.

EMMCO is an associated with Director, Mr Harun Halim Rasip.

8.	Estimated cash available for future operating activities	$A’000
8.1	Net cash from / (used in) operating activities (item 1.9)	(76)
8.2	(Payments for exploration & evaluation classified as investing	-
	activities) (item 2.1(d))
8.3	Total relevant outgoings (item 8.1 + item 8.2)	(76)
8.4	Cash and cash equivalents at quarter end (item 4.6)	58
8.5	Unused finance facilities available at quarter end (item 7.5)
8.6	Total available funding (item 8.4 + item 8.5)	58
8.7	Estimated quarters of funding available (item 8.6 divided by item 8.3)	(0.76)
	Note: if the entity has reported positive relevant outgoings (ie a net cash inflow) in item 8.3, answer item 8.7 as “N/A”.
	Otherwise, a figure for the estimated quarters of funding available must be included in item 8.7.
8.8	If item 8.7 is less than 2 quarters, please provide answers to the following questions:
	8.8.1 Does the entity expect that it will continue to have the current level of net operating
	cash flows for the time being and, if not, why not?
	Answer: Future cash outflows are attributable to the continued metallurgical testing of assay
	samples extracted from the Charley Creek Project, plus corporate costs. Assay
	testing is expected to be complete by Q4, 2021

ASX Listing Rules Appendix 5B (17/07/20) + See chapter 19 of the ASX Listing Rules for defined terms.

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Appendix 5B

Mining exploration entity or oil and gas exploration entity quarterly cash flow report

• 8.8.2 Has the entity taken any steps, or does it propose to take any steps, to raise further cash to fund its operations and, if so, what are those steps and how likely does it believe that they will be successful?

Answer: Yes. The company continues to receive support from its major lender EMMCO Mining Sdn Bhd until such time that the company is in a position to seek external equity capital.

• 8.8.3 Does the entity expect to be able to continue its operations and to meet its business objectives and, if so, on what basis?

Answer: Yes. The company continues to receive support from its major lender EMMCO Mining Sdn Bhd until such time that the company is in a position to seek external equity capital.

Note: where item 8.7 is less than 2 quarters, all of questions 8.8.1, 8.8.2 and 8.8.3 above must be answered.

Compliance statement

• 1 This statement has been prepared in accordance with accounting standards and policies which comply with Listing Rule 19.11A.

• 2 This statement gives a true and fair view of the matters disclosed.

Date: 27 October 2021

Authorised for market release by the Board of Directors of Enova Mining Limited

(Name of body or officer authorising release – see note 4)

Notes

1. This quarterly cash flow report and the accompanying activity report provide a basis for informing the market about the entity’s activities for the past quarter, how they have been financed and the effect this has had on its cash position. An entity that wishes to disclose additional information over and above the minimum required under the Listing Rules is encouraged to do so.

2. If this quarterly cash flow report has been prepared in accordance with Australian Accounting Standards, the definitions in, and provisions of, AASB 6: Exploration for and Evaluation of Mineral Resources and AASB 107: Statement of Cash Flows apply to this report. If this quarterly cash flow report has been prepared in accordance with other accounting standards agreed by ASX pursuant to Listing Rule 19.11A, the corresponding equivalent standards apply to this report.

3. Dividends received may be classified either as cash flows from operating activities or cash flows from investing activities, depending on the accounting policy of the entity.

4. If this report has been authorised for release to the market by your board of directors, you can insert here: “By the board”. If it has been authorised for release to the market by a committee of your board of directors, you can insert here: “By the [ name of board committee – eg Audit and Risk Committee ]”. If it has been authorised for release to the market by a disclosure committee, you can insert here: “By the Disclosure Committee”.

5. If this report has been authorised for release to the market by your board of directors and you wish to hold yourself out as complying with recommendation 4.2 of the ASX Corporate Governance Council’s Corporate Governance Principles and Recommendations , the board should have received a declaration from its CEO and CFO that, in their opinion, the financial records of the entity have been properly maintained, that this report complies with the appropriate accounting standards and gives a true and fair view of the cash flows of the entity, and that their opinion has been formed on the basis of a sound system of risk management and internal control which is operating effectively.

ASX Listing Rules Appendix 5B (17/07/20) + See chapter 19 of the ASX Listing Rules for defined terms.

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