ESTRELLA RESOURCES LIMITED — Capital/Financing Update 2020

Oct 19, 2020

20 October 2020

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ASX ANNOUNCEMENT

LARGE CONDUCTIVE BODY DEFINED SURROUNDING NICKEL SULPHIDES

HIGHLIGHTS

• DHTEM defines the massive nickel sulphide mineralisation intersected in CBDD030 at the T5 Prospect, located 1.1km NE of the historical Carr Boyd Nickel Mine

• The DHTEM anomalism/related modelling defines a discrete related body which may be open in all directions (see Figure 3)

• The DHTEM anomaly is open at depth and deeper drilling/DHTEM coverage is required to fully test the potential of this discovery

• CBDD030 intersected the centroid of the conductor plates with a geometry of ~75-85[0] dipping E/ESE with the anomaly covering a large areal extent

• Conductance levels are high at moderate base frequency ~6,000-11,000 Siemens

• Conditions for the surveying were excellent with no overburden / stratigraphic conductor interference, clearly defining the nickel sulphide mineralisation intersected in CBDD030

• Stage 2 drilling has been planned and will comprise 8-10 holes for ~5,000m of RC/DD drilling

• Diamond core drilling surrounding CBDD030 will commence at the completion of the final Stage 1 drill hole CBDD031 which is approaching its target depth

• CBDD031 is testing the basal contact 600m north of CBDD030 and 300m north of the initial 2019 RC drill holes which intersected the first nickel mineralisation at the T5 Prospect

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Figure 1. DHTEM modelled data for CBDD030 which intersected significant nickel sulphide mineralisation at the T5 Prospect located 1.1km NE of the historic Carr Boyd Nickel Mine. A clear strongly conductance body is evident at 438m depth (left image-yellow line) which is accociated with the intersected massive nickel sulphide. Broad moderate-strong anomalies are evident off-hole (right image) supporting a larger unconstrained body of sulphide extending in all directions away from the hole.

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Office Address London House, Level 11, 216 St Georges Terrace, PERTH WA 6000 Postal Address GPO Box 2517, PERTH WA 6831 Phone +61 8 9481 0389 Fax +61 8 9463 6103 Email info@estrellaresources.com.au

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Estrella Resources Limited (ASX: ESR) (Estrella or the Company) is pleased to update the market with results of the highly anticipated Down-Hole Transient Electro-Magnetic (DHTEM) survey of diamond core hole CBDD030 which intersected significant massive Ni-Cu (and PGE) bearing sulphides deep below the T5 discovery zone at the Company’s flagship Carr Boyd Project[1] . The T5 Prospect is located 1.1km NE of the historic Carr Boyd nickel mine and was identified in 2019 following successful RC drilling of a HP FLTEM anomaly[2] .

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Figure 2. Southern Geoscience finalised DHTEM plate models surrounding CBDD030 show both in-hole and off-hole conductors surrounding the drill hole. Due to the high conductance (6,000-11,000S) at moderate base frequency and significance of the sulphide intersected, more holes and DHTEM is required to further test out beyond this mineralised zone. The model above shows the strongest anomalies for targeting and does not define the limits of the anomaly which is unconstrained at depth and may be open in all directions. CBDD029 steepened and did not hit the basal contact, therefore further drill testing is required to the north.

Chris Daws, CEO stated “This has been an astonishing result for the Company and its shareholders who have all been rewarded through patience, persistence and belief. The results of the DHTEM now support the mineralised sulphides seen in the drill core, which is currently in the laboratories being cut, sampled and priority assayed. It is open in all directions and will be chased by immediate further drilling.

“The core was only recovered from the field by the Company’s consulting geologist Neil Hutchison last weekend and showcased the next day at the Diggers and Dealers conference. The results of the DHTEM have put to rest any of my concerns about scale and we are now eagerly awaiting the assay results to get a clear understanding of the potential of this discovery.

“Planning and scheduling of the next round of holes to further test this zone is well underway, as we await the completion of hole CBDD031 which is the final hole of the Stage 1 drill program. It is being drilled 600m north of the discovery hole into a blind basal contact position in the same manner as CBDD030 and will provide critical geological and geophysical data to assist in unlocking and understanding the potential of the T5 Prospect discovery zone”

1 Significant Massive Ni Sulphide Discovery at Carr Boyd – 8 October 2020

2 Assay Results Confirm New Sulphide Nickel Discovery Zone at Carr Boyd Rocks - 8 July 2019

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Diamond core hole CBDD030 (Figure 3) was collared 300m south of the T5 zone (Figure 4), testing the Carr Boyd Layered Intrusions contact at depth, below and south of the previously identified mineralisation. The hole successfully intersected the basal contact of the layered mafic/ultramafic intrusion, returning a significant ~15m wide zone of sulphide mineralisation (Table 1) starting from 430.55m downhole, which contains a 2.9m thick core zone of massive Ni-Cu sulphide mineralisation from 435.9m depth (refer ASX: ESR Significant Massive Ni Sulphide Discovery at Carr Boyd – 8 October 2020). Hole CBDD029 steepened due to the steeper collar angle and the regional foliation within the footwall sedimentary volcano-clastic rock and did not intersect the basal contact so remains untested at this position.

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2.29m @ 0.8% Ni
OPEN
OPEN
~15m Wide
Sulphide Zone
Assays Pending
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Figure 3. Cross Section 6673640mN showing CBDD030 and modelled DHTEM plates. The plates and mineralisation are unconstrained; open up and down dip, along strike to the north and south as well as to the east of the hole.

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Down-Hole Transient Electro-Magnetic (DHTEM) surveying of diamond core hole CBDD030 was completed using two alternate coupling loop configurations and was modelled by Southern Geoscience Consultants. The DHTEM data defines a clear massive sulphide signature/conductor associated with the nickel mineralisation which is unconstrained at depth and may be open in all directions. The survey used moderate base frequency readings, providing a moderate to high conductance estimate of up to 11,000 Siemens, which will potentially increase further with lower base frequency readings. Southern Geoscience have recommended using these lower base frequencies for upcoming surveys to test further for high conductance targets out beyond the zone of known mineralisation.

Conditions for the survey were excellent with no overburden or stratigraphic geological units to cause false anomalies/interference (i.e. black shales/graphite etc.) therefore the DHTEM is seeing only the sulphide mineralisation. Multiple model scenarios were run using varied channel timeframes, producing two plates with an overall geometry of ~75-85[0] dip to the E/ESE (Figures 1, 2 & 3). The hole intersected close to the centroid of the modelled conductor plates which have moderate to high conductance levels (6,000-11,000 SI). The late channel model has the best fit (Figures 1 & 2) and is deemed locally robust. The DHTEM anomalism remains open at depth and deeper DHTEM coverage is required in coming diamond holes. In addition, extensional sulphide mineralisation could also be present if structure/contact complexity has electrically disconnected sulphide pods/bodies in the immediate vicinity of the known mineralisation.

The final Stage 1 diamond core hole CBDD031 is nearing completion and is anticipated to intersect the basal contact of the layered mafic/ultramafic intrusion in the coming days, providing a first look at the deep geological/geophysical target zone over a 600m long strike zone.

The areas surrounding CBDD030 requires immediate follow up drilling, with planning well underway to rapidly expand the exploration program at Carr Boyd. Following this significant development, an initial 8- 10 holes has been planned on a 40 x 40m pattern surrounding CBDD030 as well as a hole below CBDD028 and the untested contact near CBDD029 comprising ~5,000m of core drilling and RC precollars. The Company has retained the Topdrive Drillers (TDA) diamond drill rig and is currently employing the local station owner to assist in upgrading site support infrastructure as all efforts are focused towards defining the mineralisation intersected in hole CBDD030. The Company will also be increasing the number of drilling rigs, personnel and support so that we can quickly determine the extent of this discovery.

This is a significant breakthrough in the development of the T5 Prospect that was initially investigated in mid-2019 through drill testing of a High-Powered Fixed Loop TEM survey target located to the north of the historical intersections around GD124. Our hard work is now beginning to unlock the real potential of the Carr Boyd Project.

Table 1: Sulphide Intersection Summary

Hole ID	**mFrom **	mTo	**Width **	Type	Sulphides	S%	Comment
CBDD0030	430.55	431.60	1.05	Dissem	po,py,cpy	2-5%	Weak sulphides
	431.60	431.70	0.10	Vein	po,py	70%	Remobilised
	431.70	432.15	0.45	Blebby	po,py,pe	50%	Coarse blebs
	432.15	432.35	0.20	Massive	po,pe	70%	Breccia Vein
	432.35	435.90	3.57	Dissem	po,py,cpy	5-15%	Interstitial/dissem
	435.90	438.80	2.88	Massive	po,pe, cpy	80%	Primary Massive
	438.80	440.00	1.20	Matrix	po,pe,cpy	10%	Crystal intergrowths
	440.00	445.50	5.50	Dissem	po,py,cpy	5%	Dissem to blebby

*po=pyrrhotite, py=pyrite, cpy=chalcopyrite, pe=pentlandite

In relation to the disclosure of visual mineralisation, the Company cautions that visual estimates of sulphide and oxide material abundance should never be considered a proxy or substitute for laboratory analysis. Laboratory assay results are required to determine the widths and grade of the visible mineralisation reported in preliminary geological logging. The Company will update the market when laboratory analytical results become available.

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Historical
Final Planned
Shallow
Drill Hole
Intersections
Discovery
Intersection
Historical CBDD030
Intersection Intersection
GD140 Position
Width x Grade
Historical
Intersection
GD124
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Figure 4. Drill hole plan showing ESR’s recent RC and DD drill holes (blue trace) and historical holes >150m depth (grey trace). Nickel intersections are shown by the squares which are coloured by Width x Grade calculation.

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Table 2: Drill hole collar details

Hole ID	**Final Depth **	Easting	Northing	Dip	**Azimuth **	Status
CBDD0028	251.0m	367045	6673940	-60	090	Completed
CBDD0029	603.8m	367000	6673940	-70	090	Completed
CBDD0030	495.7m	367025	6673640	-65	090	Completed
CBDD0031	~600m	366925	6674240	-65	090	In Progress

Competent Person Statement

The information in this announcement relating to Exploration Results, Mineral Resources or Ore Reserves is based on information compiled by Neil Hutchison, who is a consultant to Estrella Resources, and a member of The Australasian Institute of Geoscientists. Mr. Hutchison has sufficient experience 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 Resource and Ore Reserves”. Mr. Hutchison consents to the inclusion in the report of the matters based on his information in the form and context in which it appears.

The Board has authorised for this announcement to be released to the ASX.

FURTHER INFORMATION CONTACT

Christopher J. Daws Chief Executive Officer Estrella Resources Limited +61 8 9481 0389 info@estrellaresources.com.au

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ABOUT THE PROJECT AND THE CBLC

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The Carr Boyd Nickel Project (CBNP) is a magmatic hosted sulphide system which comprises the Carr Boyd Layered Complex (CBLC or the Complex). The CBLC is in a Tier 1 jurisdiction approximately 80km north northeast of Kalgoorlie Western Australia. An all-weather haul road accessible by Estrella under a granted miscellaneous license connects the Project to the Goldfields Highway via Scotia. Estrella holds 259km[2] of contiguous tenure over the entire magmatic maficultramafic layered complex

The CBLC hosts the historic Carr Boyd Rocks nickel mine which was the first magmatic hosted style of nickel deposit discovered and mined in WA. It was discovered an the late 1960’s and produced 202,110t of ore at an average grade of 1.43% Ni and 0.46% Cu between 1973-1977.

Location of Carr Boyd Project

Komatiites flows have been the main source of developed nickel sulphide mines in WA and have been explored extensively since the late 1960’s. Due to their well understood geochemistry, formation, and high-grade sulphide enrichment process within defined channels, most of the studies and exploration programs in WA have focused on discovering this style of mineralisation. The Kambalda-Kalgoorlie-Leinster-Laverton Goldfields Region has been the main focus for komatiite exploration, with limited potential existing outside this region. Greenfields discoveries of komatiite nickel have all bar dried up in the Goldfields Region and its only deep brownfields exploration that is delivering new nickel deposits.

Elsewhere around the world, large scale magmatic nickel deposits are the norm, producing world-class deposits with long productive mine lives. In WA, magmatic nickel deposits occur scattered throughout the state, however, they have had a long and slow history of discovery, development and understanding. Its only in recent years, since the discovery of the Nova-Bollinger deposit (2012) in the Fraser Range (which had been historically explored for over 40yrs), that a string of magmatic nickel deposit have suddenly been discovered. As komatiite sources dry up, focus and understanding around magmatic nickel deposits is starting to gain momentum, resulting in exploration companies looking at various mafic-ultramafic bodies which have had limited to no exploration completed over them to date. This is resulting in a new level of understanding in WA on the formation/deposition of nickel-copper sulphides within magmatic rocks, leading to a wave of new discoveries.

Interest in magmatic nickel-copper deposits have had a resurgence with the recent discoveries of magmatic hosted sulphide mineralisation at Legend Mining’s (ASX:LEG) Rockford Project and Chalice Gold Mines (ASX:CHN) Julimar Projects. A “Voisey Bay” magmatic style model has not been adequately explored within the CBLC. This represents a compelling exploration target opportunity which the Company will continue to aggressively pursue.

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APPENDIX 1 JORC TABLE 1 - JORC CODE, 2012 EDITION – TABLE 1 Section 1 Sampling Techniques and Data

(Criteria in this section apply to all succeeding sections.)

Criteria	JORC Code explanation	Commentary
Sampling	Nature and quality of sampling (e.g. cut	DD core samples have been half cut with automatic core
techniques	channels, random chips, or specific	saw
	specialised industry standard	0.3m-1.1m samples are collected from the core trays as
	measurement tools appropriate to the	marked out by the supervising geologist
	minerals under investigation, such as	A handheld XRF tool was used to verify the mineralisation
	down hole gamma sondes or handheld	with samples reporting >0.3% Ni in disseminated zones
	XRF instruments, etc.). These	and >1% Ni in the matrix sulphide zones.
	examples should not be taken as	XRF results have not been reported and are used as a
	limiting the broad meaning of sampling.	logging/sampling verification tool only.
		No other measurement tools other than directional survey
		tools have been used in the holes.
	Include reference to measures taken to	Core is continuously cut on the same side of the
	ensure sample representivity and the	orientation line and the same side is sampled to ensure
	appropriate calibration of any	the sample is representative and no bias is introduced.
	measurement tools orsystems used.
	Aspects of the determination of	Determination of mineralisation has been based on
	mineralisation that are material to the	geological logging and confirmation using a pXRF
	Public Report.	machine. Samples were dispatched for laboratory multi-
		element analysis.
		.
	In cases where ‘industry standard’ work	Diamond Core drilling was used to obtain 3-6m length
	has been done this would be relatively	samples from the barrel which are then marked in one
	simple (e.g. ‘reverse circulation drilling	meter intervals based on the drillers core block
	was used to obtain 1 m samples from	measurement.
	which 3 kg was pulverised to produce a	Assay samples are selected based on geological logging
	30g charge for fire assay’). In other	boundaries or on the nominal meter marks.
	cases more explanation may be	Collect samples weigh a nominal 2-3 kg (depending on
	required, such as where there is coarse	sample recovery) was sent to lab and pulverised.
	gold that has inherent sampling	Samples have been dispatched to a commercial
	problems. Unusual commodities or	laboratory in Perth for analysis
	mineralisation types (e.g. submarine nodules) may warrant disclosure of detailed information	Samples are being analysed using a 4 acid digest for ME- ICP for 33 elements and ore zone samples are also being tested for PGM-ICP testing for Au & PGE elements
Drilling	Drill type (e.g. core, reverse circulation,	Drilling was undertaken using NQ2 sized drill core.
techniques	open-hole hammer, rotary air blast,	Hole was collar with mud rotary from surface, HQ rough
	auger, Bangka, sonic, etc) and details	cored to top of fresh rock then NQ2 cored to EOH.
	(e.g. core diameter, triple or standard
	tube, depth of diamond tails, face-
	sampling bit or other type, whether core
	is oriented and if so, by what method,
	etc).

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Office Address London House, Level 11, 216 St Georges Terrace, PERTH WA 6000 Postal Address GPO Box 2517, PERTH WA 6831 Phone +61 8 9481 0389 Fax +61 8 9463 6103 Email info@estrellaresources.com.au

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Criteria	JORC Code explanation	Commentary
Drill sample	Method of recording and assessing	Core recovery was recorded by the drill crew and verified
recovery	core and chip sample recoveries and	by the geologist.
	results assessed.	RQD measurements were digitally recorded to ensure
	Measures taken to maximise sample	recovery details were captured.
	recovery and ensure representative	Sample recovery in both holes was high with negligible
	nature of the samples.	loss of recovery observed.
	Whether a relationship exists between	Diamond core drilling is the highest standard and no
	sample recovery and grade and	relationship has been established between sample
	whether sample bias may have	recovery and reported grade as the core is in very good
	occurred due to preferential loss/gain of	condition.
	fine/coarsematerial.
Logging	Whether core and chip samples have	Detailed industry standard of collecting core in core trays,
	been geologically and geotechnically	marking meter intervals & drawing core orientation lines
	logged to a level of detail to support	was undertaken
	appropriate Mineral Resource	Core trays were photographed wet and dry prior to
	estimation, mining studies and	sampling.
	metallurgical studies.	Drill hole logs are recorded in Excel spread sheets and
	Whether logging is qualitative or	validated in Micromine Software as the drilling
	quantitative in nature. Core (or costean,	progressed.
	channel, etc) photography.	The entire length of both holes was logged.
	The total length and percentage of the
	relevantintersectionslogged.
Sub-	If core, whether cut or sawn and	Core is half cut using an automatic core saw to achieve a
sampling	whether quarter, half or all core taken.	nominal 2-3kg split sample for laboratory submission
techniques	If non-core, whether riffled, tube	Ore zone core will quarter cut to maintain sufficient
and sample	sampled, rotary split, etc and whether	material for further test works.
preparation	sampled wet or dry.	The sample preparation technique is considered industry
	For all sample types, the nature, quality	best standard practice
	and appropriateness of the sample	No field duplicates have been collected in this program.
	preparation technique.	Field duplicates will be collected once initial results are
	Quality control procedures adopted for	return and resampling of the mineralised zones is
	all sub-sampling stages to maximise	warranted.
	representivity of samples.	Sample sizes are appropriate to the grain size of the
	Measures taken to ensure that the	mineralisation.
	sampling is representative of the in-situ
	material collected, including for
	instance results for field
	duplicate/second-half sampling.
	Whether sample sizes are appropriate
	to the grain size of the material being
	sampled.
Quality of	For geophysical tools, spectrometers,	No handheld XRF results are reported however the tool
assay data	handheld XRF instruments, etc, the	was used to verify the mineralisation with reporting >0.3%
and	parameters used in determining the	Ni in disseminated zones and >1% Ni in the matrix
laboratory	analysis including instrument make and	sulphide zones.
tests	model, reading times, calibrations	DHTEM parameters are as follows;
	factors applied and their derivation, etc.	 Tx Loop size: 500 x 800 m
	Nature of quality control procedures	 Transmitter: GAP HPTX-70
	adopted (e.g. standards, blanks,	 Receiver: EMIT SMARTem24
	duplicates, external laboratory checks) and whether acceptable levels of accuracy (i.e. lack of bias) and precision have been established.	 Sensor: EMIT DigiAtlantis  Station spacing: 2m to 10 m  Tx Freq: 0.5 Hz  Duty cycle: 50%
		 Current: ~130 Amp
		 Stacks: 32-64
		 Readings: 2-3 repeatable readings per
		station

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Criteria	JORC Code explanation Commentary
Verification of sampling and assaying	The verification of significant intersections by either independent or alternative company personnel. Results verified by Company CEO
	The use oftwinnedholes. Hole CBDD0028is twinninghole CBP042
	Documentation of primary data, data entry procedures, data verification, data storage (physical and electronic) protocols. The data was collected and logged using Excel spreadsheets and validated using Micromine Software. The data will be loaded into an externally hosted and managed database and loaded by an independent consultant, before being validated and checked, then exported and send backtoESR foranalysis.
	Discuss any adjustment to assay data. No adjustments have been made to the assay data other than length weighted averaging.
Location of data points	Accuracy and quality of surveys used to locate drill holes (collar and down-hole surveys), trenches, mine workings and other locations used in Mineral Resource estimation. The holes were pegged by Geolithic Geological Services using a hand held GPS+3m The rig was setup over the nominated hole position and final GPS pickup occurred at the completion of the hole.
	Specification of thegrid system used. MGA94_51
	Quality and adequacy of topographic control. Topography is relatively flat and is more than adequate given the early stage of the project. A drone ortho- photographic survey is planned to create a DTM of the project area.
Data spacing and distribution	Data spacing for reporting of Exploration Results. Refer to Cross Sections and Plans included
	Whether the data spacing and distribution is sufficient to establish the degree of geological and grade continuity appropriate for the Mineral Resource and Ore Reserve estimation procedure(s) and classifications applied. Not applicable, no Mineral Resource is being stated.
	Whether sample compositing has been applied No compositing has been applied. Intercepts are quoted aslength weightedintervals.
Orientation of data in relation to geological structure	Whether the orientation of sampling achieves unbiased sampling of possible structures and the extent to which this is known, considering the deposit type. If the relationship between the drilling orientation and the orientation of key mineralised structures is considered to have introduced a sampling bias, this should be assessed and reported if material. The drill line and drill hole orientation are oriented as close as possible to normal the interpreted MLEM target.
Sample security	The measures taken to ensure sample security. Samples are in the possession of Geolithic personnel from field collectiontolaboratory submission.
Audits or reviews	The results of any audits or reviews of sampling techniques and data. No audits or reviews have been conducted for this release giventhevery smallsize ofthe dataset.

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Section 2 Reporting of Exploration Results

(Criteria listed in the preceding section also apply to this section.)

Criteria	JORC Code explanation	Commentary
Mineral	Type, reference name/number,	Carr Boyd Nickel Pty Ltd (a wholly owned subsidiary of
tenement and	location and ownership including	ESR) holds a 100% interest in the nickel and base metal
land tenure	agreements or material issues with	rights to the project.
status	third parties such as joint ventures,	There are no known impediments to operate in the area.
	partnerships, overriding royalties,
	native title interests, historical sites,
	wilderness or national park and
	environmental settings.
	The security of the tenure held at the
	time of reporting along with any
	known impediments to obtaining a
	licence to operateinthe area.
Exploration	Acknowledgment and appraisal of	The Carr Boyd Rocks deposit was discovered by Great
done by other	exploration by other parties.	Boulder Mines, in a joint venture with North Kalgurli Ltd
parties		in 1968. The deposit was mined between 1972 and
		1975, during which time they explored for additional
		breccia pipe occurrences near the mine.
		WMC acquired Great Boulder Mines Ltd in 1975, briefly
		reopening the mine in 1977 before closing it permanently
		shortly thereafter due to a collapse in the nickel price.
		The mine had produced 210,000t at 1.44% Ni and 0.46%
		Cu before its closure.
		From 1968 Pacminex Pty Ltd held most of the ground
		over the CBLC outside of the immediate mine area.
		Between 1968 and 1971 they conducted extensive
		exploration programs searching for large basal contact
		and/or stratabound Ni-Cu deposits. It was during this
		time that most of the disseminated and cloud sulphide
		occurrences such as those at Tregurtha, West Tregurtha
		and Gossan Hill were discovered.
		Defiance Mining acquired the regional tenements from
		Pacminex in 1987 and focused on exploration for PGE
		deposits between 1987 and 1990. In 1990 Defiance
		purchased the Carr Boyd Rocks mine from WMC and
		switched focus to the mine area between 1990 and 2001,
		leaving many PGE targets untested.
		From 1990 Defiance dewatered the mine to conduct
		testwork and feasibility studies on the remnant
		mineralisation. Metallurgical testwork, Mineral Resource
		estimations, and scoping studies were completed.
		Around 1996 the focus shifted again to regional
		exploration for large tonnage basal contact deposits.
		In 2001 Titan Resources Ltd (Titan) acquired the project
		and recommenced economic evaluations of the remnant
		material at Carr Boyd Rocks before embarking on
		another regional exploration program focusing on the
		basal contact. An aeromagnetic survey, airborne EM
		reprocessing, and several programs of RAB and RC
		drilling were completed.
		From 2005 Yilgarn Mining entered a JV with Titan and
		continued with some regional exploration, but focused
		most attention in and around the Carr Boyd Rocks mine.
		In 2007 Titan was acquired by Consolidated Minerals Ltd
		(Consmin). Consmin conducted IP surveys and detailed
		gravity surveys, but did not drill any targets before selling
		the project to Salt Lake Mining (SLM) in 2013. SLM
		completed limited drilling to meet expenditure

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Criteria	JORC Code explanation	JORC Code explanation	JORC Code explanation	JORC Code explanation			Commentary
							commitments, before selling the project to Apollo
							Phoenix Resources in 2016.
							Apollo sold the project to ESR in 2018.
Geology	Deposit	type,	geological setting			and	The Carr Boyd project lies within the Achaean Yilgarn
	style of mineralisation.						Craton in a 700km belt of elongate deformed and folded
							mafic, ultramafic rocks and volcanic sediments intruded
							by granitoids which is referred to as the Norseman-
							Wiluna Belt. The belt has been divided into several
							geological distinct terranes, with the project area lying at
							the northern end of the Gindalbie terrane (Swager, 1996).
							The geology of the Carr Boyd area is dominated by the
							Carr Boyd layered mafic-ultramafic intrusive complex
							(CBLC). This layered intrusive covers an area of 17 km
							by 7km and has intruded into an Achaean
							Greenstone/Granite succession. The CBLC is comprised
							of a basal sequence of dunites, which are overlain by
							peridotites / pyroxenites and above that by gabbros. The
							intrusion has been interpreted to have been tilted to the
							east with the geometry of the intrusive further
							complicated by regional deformation and folding. The
							sequence has been metamorphosed to upper
							greenschist to lower amphibolite facies.
							Several distinctive styles of Ni and Ni-Cu mineralisation
							have been identified within the CBLC. At the Carr Boyd
							Rocks Nickel Mine Ni-Cu mineralisation is hosted within
							several 20 - 60m diameter brecciated pipe-like bodies
							that appear to be discordant to the magmatic
							stratigraphy. Mineralisation is hosted by a matrix of
							sulphides (pyrrhotite, pentlandite, pyrite and
							chalcopyrite) within brecciated Bronzite and altered
							country rock clasts.
							Stratiform Ni-Cu-PGE mineralisation has been identified
							at several different stratigraphic levels within the layered
							magmatic complex. Low grade stratiform disseminated
							Ni-Cu-PGE sulphides have been identified at several
							locations within the basal parts of the complex and at
							shallower stratigraphic levels of the complex. The
							presence of Ni-Cu-PGE mineralisation within multiple
							stratigraphic positions and of several unique styles of
							mineralisation highlights the potential of the CBLC for
							hosting a substantial Ni-Cu deposit.
							The Company is not aware of any significant cobalt
							explorationbeing completedinthe area.
Drill hole	A summary		of all		information		All relevant drillhole information can be found in Table 2
Information	material to the understanding of					the	of the announcement.
	exploration		results		including	a
	tabulation		of	the	following
	information for			all Material		drill
	holes:
	o	easting		and northing of		the
		drill hole collar
	o	elevation or RL (Reduced
		Level	–	elevation above		sea
		level	in	metres) of the		drill
		hole collar
	o	dip and		azimuth of the hole
	o	down		hole	length	and
		interception depth

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Criteria	JORC Code explanation Commentary
	o hole length. If the exclusion of this information is justified on the basis that the information is not Material and this exclusion does not detract from the understanding of the report, the Competent Person should clearly explain why this is the case. No information is excluded.
Data aggregation methods	In reporting Exploration Results, weighting averaging techniques, maximum and/or minimum grade truncations (e.g. cutting of high grades) and cut-off grades are usually Material and should be stated. Where aggregate intercepts incorporate short lengths of high grade results and longer lengths of low grade results, the procedure used for such aggregation should be stated and some typical examples of such aggregations should be shown indetail. Intersections are reported on a nominal 0.3% Ni or 0.1% Cu cut-off with length weighted intervals. All intercepted are reported using length weighted intervals to balance with short higher grade lengths.
	The assumptions used for any reporting of metal equivalent values should be clearly stated. No metal equivalents are used in this announcement.
Relationship between mineralisation widths and intercept lengths	These relationships are particularly important in the reporting of Exploration Results. If the geometry of the mineralisation with respect to the drill hole angle is known, its nature should be reported. If it is not known and only the down hole lengths are reported, there should be a clear statement to this effect (e.g. ‘down hole length, true width not known’). The drill line and drill hole orientation in relation to mineralisation orientation is perpendicular to the MLEM plate and the geological contact targeted. True width cannot be fully determined at this stage as the dip of the contact is not planar or fully controlled due to lack of drilling. The intersection in CBDD030 is close to true width as the contacts are near perpendicular to the core axis.
Diagrams	Appropriate maps and sections (with scales) and tabulations of intercepts should be included for any significant discovery being reported. These should include, but not be limited to a plan view of drill hole collar locations and appropriate sectional views. Appropriate maps, sections and tables are included in the body of the Report.
Balanced reporting	Where comprehensive reporting of all Exploration Results is not practicable, representative reporting of both low and high grades and/or widths should be practiced to avoid misleading reporting of Exploration Results. All new drillholes within this announcement are reported in Table 2  Sulphide percentage estimates and type are reported in Table 1.
Other substantive exploration data	Other exploration data, if meaningful and material, should be reported including (but not limited to): geological observations; geophysical survey results; Everything meaningful and material is disclosed in the body of the report. Geological observations are included in the report. No bulk samples, metallurgical, bulk density, groundwater, geotechnical and/or rock characteristics test were carried

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Criteria	JORC Code explanation	Commentary	Commentary
	geochemical survey results; bulk		out.
	samples – size and method of		There are no known potential deleterious or contaminating
	treatment; metallurgical test results;		substances.
	bulk density, groundwater,
	geotechnical and rock
	characteristics; potential deleterious
	orcontaminating substances.
Further work	The nature and scale of planned		Continued deep diamond drilling is underway And further
	further work (e.g. tests for lateral		drilling of the target zone well coomence at the completion
	extensions or depth extensions or		of the current hole
	large-scale step-out drilling).		Surface HPEM to the NE of the project is currently being
	Diagrams clearly highlighting the		scheduled to commence.
	areas of possible extensions,		Further RC/DD drilling has been planned, comprising ~8-
	including the main geological		10 holes for 5000m.
	interpretations and future drilling		A drone ortho-photographic survey is planned to create a
	areas, provided this information is		DTM of the project area.
	not commerciallysensitive.