ESTRELLA RESOURCES LIMITED — Capital/Financing Update 2021

May 19, 2021

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20 May 2021

ASX ANNOUNCEMENT

Significant Massive Sulphide Intersection Extends T5 South at Carr Boyd

HIGHLIGHTS

• CBDD048 intersects 12.9m[(1) ] zone of massive (Figure 1), semi-massive, breccia, matrix and disseminated Ni-Cu-Fe sulphides on the T5 pyroxenite contact 40m south of previous discovery hole CBDD030.

• Sulphide and rock textures confirm basal contact mineralisation and massive Ni-Cu sulphide potential.

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Figure 1: Massive sulphide in CBDD048 at 386m on the basal contact south of T5 discovery

(1): Downhole lengths are reported, true widths are approximately one quarter of downhole length. Nickel and copper tenor within the feeder zone is variable. Intersections are reported above a 1% nickel-copper-iron sulphide cut-off.

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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 announce another strong Ni-Cu-Fe intersection confirming the T5 EM Conductor contains significant nickel-copper sulphides.

CBDD048 was the first diamond tail drilled by Rig 2, contracted from DDSR, into a position 40m south of previous discovery drill hole CBDD030 and penetrated the postulated EM Plate, confirming Ni-Cu-Fe sulphides (Figure 4). The hole intersected 12.9m of massive, breccia, matrix and disseminated Ni-Cu-Fe sulphides on the T5 basal contact (Table 2). The core will be cut and samples sent away for assay.

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Figure 2: CBDD048 Blebby and breccia sulphides at 383m downhole (top image), and rubble breccia matrix sulphides from 385m downhole (lower image) indicating the basal contact and massive sulphide accumulation through gravity at the time of deposition was towards the bottom of the hole.

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The intersection is significant as the Company follows the T5 Conductor south from the discovery drill hole CBDD030. CBDD048 is the first of several holes planned to intersect the basal contact in this area with CBDD049 now already underway. Textures within the drill intercept have given the clearest evidence yet that the flow dynamics of the pyroxenite intrusion at T5 has the capability to form massive sulphides in multiple areas along the basal contact at Estrella’s 100% owned Carr Boyd Nickel and Copper Project.

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Figure 3: Massive semi-massive sulphide zone approx 382.5m down hole CBDD048

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The discovery of massive, semi-massive, breccia, matrix and disseminated sulphide accumulations on a basal contact position bodes well for the Carr Boyd Project as the Company accelerates the Phase 3 drilling to test the full extents of previous downhole electromagnetic (DHEM) targets and to generate new targets with careful step-out drilling.

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Figure 4: Longsection showing the CBDD048 intersection in relation to other significant intersections and the T5 downhole electromagnetic (DHEM) Conductors.

Phase 3 will also incorporate plans to extend DHEM coverage both north and south along the contact away from the discovery area (Figure 5). The company currently has 2 diamond drill rigs testing the extents of the T5 mineralisation.

Phase 4, currently being planned, will extend drill and DHEM coverage north along an extensive and untested basal contact (refer to ASX announcement “Exploration Update Carr Boyd” released 18 May 2021) and also south to assist in the Company’s strategy of uncovering the relationship between the T5 mineralisation and the Carr Boyd Mine 1km to the southeast (previously mined by WMC and now owned 100% by the Company).

Phase 4 will incorporate the seismic survey results currently being interpreted by Australia’s leading seismic geologist, Mr. Graeme Hird, details of which will be reported to shareholders when available.

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Estrella Managing Director Chris Daws commented:

“I am extremely pleased with this significant intersection as it further validates our exploration strategy at the T5 Conductor. Make no mistake, our resolve to locate a world class orebody for our shareholders is unwavering and this intersection is yet another promising sign that we are homing in on this orebody.

“Phase 3 drilling in particular has been highly successful, with a 100 percent strike rate for hitting nickelcopper sulphides.

“It is very rewarding personally to once again see first-hand the efforts of our exploration staff, drilling crews and everyone that is making this project come to life. We are still drilling 24/7 and I look forward to the next drill core to hit the racks at Carr Boyd.”

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Figure 5: Locations that are to be targeted in Phase 3. The flat fault has a lateral throw of 80m to the East.

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Figure 6: Cross Section showing drill intercept and their relationship to the T5 conductor.

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

FURTHER INFORMATION CONTACT

Christopher J. Daws Managing Director Estrella Resources Limited +61 8 9481 0389 info@estrellaresources.com.au

Media: David Tasker Managing Director Chapter One Advisors E: dtasker@chapteroneadvisors.com.au T: +61 433 112 936

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Competent Person Statement

The information in this announcement relating to Exploration Results is based on information compiled by Steve Warriner, who is the Exploration Manager of Estrella Resources, and a member of The Australasian Institute of Geoscientists. Mr. Warriner 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. Warriner consents to the inclusion in the report of the matters based on his information in the form and context in which it appears.

Table 1: Drill hole collar details for CBDD048

Hole ID	Final Depth	Easting	Northing	RL	Dip	Azi	Status
CBDD048	514	367423	6673626	429.2	-61	261	Complete

Table 2: CBDD048 Sulphide Percentages

Hole ID	From	To	Width	Rock type	Sulphide Type	Visual Sulphide Estimation	Visual Pentlandite Estimation	Visual Chalcopyrite Estimation
CBDD048	380.65	381.6	0.95	Pyroxenite	Cloud	1	Tr	Tr
	381.6	382.1	0.5	Pyroxenite	Disseminated	5	Tr	2
	382.1	382.5	0.4	Pyroxenite	Breccia	10	5	3
	382.5	383.14	0.64	Pyroxenite	Massive	60	10	1
	383.14	383.92	0.78	Pyroxenite	Disseminated	5	Tr	3
	383.92	384.4	0.48	Pyroxenite	Breccia	25	5	1
	384.4	384.67	0.27	Pyroxenite	Semi-massive	20	3	8
	384.67	384.77	0.1	Pyroxenite	Disseminated	10	1	3
	384.77	385	0.23	Pyroxenite	Breccia	25	5	1
	385	385.98	0.98	Pyroxenite	Disseminated	5	3	2
	385.98	386.2	0.22	Pyroxenite	Massive	75	20	2
	386.2	387.65	1.45	Pyroxenite	Stringer	7	4	1
	387.65	393.57	5.92	Basalt	Stringer	5	2	2
Tr = Trace In relation to the disclosure of visual mineralisation, the Company cautions that visual estimates of sulphide abundance should never be considered a proxy or substitute for laboratory analysis. Laboratory assay results are required to determine the widths and grade of mineralisation. The Company will update the market when laboratory analytical results become available.

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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 an automatic
techniques	channels, random chips, or specific	core saw.
	specialised industry standard	0.25m-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.
	Include reference to measures taken to	Core is cut and sampled to ensure the sample is
	ensure sample representivity and the	representative and no bias is introduced. Cutting of
	appropriate calibration of any	specific, banded or stringer sulphide zoned core is done
	measurement tools or systems used.	orthogonal to the banding to ensure there is no bias.
	Aspects of the determination of	Determination of mineralisation has been based on
	mineralisation that are material to the	geological logging, visual sulphide estimates and
	Public Report.	confirmation using a pXRF machine. Samples were
		dispatched to an accredited laboratory for multi-element
		analysis.
		.
	In cases where ‘industry standard’ work	Diamond core drilling was used to obtain 3m length
	has been done this would be relatively	samples from the core barrel which are then marked in
	simple (e.g. ‘reverse circulation drilling	one meter intervals, based on core block measurements.
	was used to obtain 1 m samples from	Samples are selected based on geological logging
	which 3 kg was pulverised to produce a	boundaries or on nominal meter marks.
	30g charge for fire assay’). In other	Collected samples weigh a nominal 2-3 kg (depending on
	cases more explanation may be	sample length).
	required, such as where there is coarse	Samples have been dispatched to an accredited
	gold that has inherent sampling	commercial laboratory in Perth for analysis.
	problems. Unusual commodities or mineralisation types (e.g. submarine nodules) may warrant disclosure of detailed information	Samples are being analysed using a 4-acid digest, ME- ICP for 33 elements and ore zone samples are also being tested for Au & PGE elements using ICP analysis.
Drilling	Drill type (e.g. core, reverse circulation,	Drilling was undertaken using NQ2 sized drill core.
techniques	open-hole hammer, rotary air blast,	Holes have been collared with mud rotary from surface,
	auger, Bangka, sonic, etc) and details	HQ rough cored to top of fresh rock then NQ2 cored to
	(e.g. core diameter, triple or standard	EOH.
	tube, depth of diamond tails, face-
	sampling bit or other type, whether core
	is oriented and if so, by what method,
	etc).
Drill sample	Method of recording and assessing	Core recovery was recorded by the field 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 all mineralised zones is high with
	nature of the samples.	negligible core loss 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/coarse material.

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Criteria	JORC Code explanation Commentary
Logging	Whether core and chip samples have been geologically and geotechnically logged to a level of detail to support appropriate Mineral Resource estimation, mining studies and metallurgical studies. Whether logging is qualitative or quantitative in nature. Core (or costean, channel, etc) photography. The total length and percentage of the relevantintersectionslogged. Detailed industry standard of collecting core in core trays, marking meter intervals & drawing core orientation lines was undertaken. Core trays were photographed wet and dry prior to sampling. Drill hole logs are recorded in Excel spread sheets and validated in Micromine Software as the drilling progresses. The entire length of all holes is logged.
Sub- sampling techniques and sample preparation	If core, whether cut or sawn and whether quarter, half or all core taken. If non-core, whether riffled, tube sampled, rotary split, etc and whether sampled wet or dry. For all sample types, the nature, quality and appropriateness of the sample preparation technique. Quality control procedures adopted for all sub-sampling stages to maximise representivity of samples. Measures taken to ensure that the 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. Core is half cut using an automatic core saw to achieve a half-core sample for laboratory submission. The sample preparation technique is considered industry best standard practice. No field duplicates have been collected in this program. Field duplicates will be collected once initial results are returned and resampling of the mineralised zones is warranted. Sample sizes are appropriate to the grain size of the mineralisation.
Quality of assay data and laboratory tests	For geophysical tools, spectrometers, handheld XRF instruments, etc, the parameters used in determining the analysis including instrument make and model, reading times, calibrations factors applied and their derivation, etc. Nature of quality control procedures adopted (e.g. standards, blanks, duplicates, external laboratory checks) and whether acceptable levels of accuracy (i.e. lack of bias) and precision have been established. No handheld XRF results are reported however the tool was used to verify the mineralisation with reporting >0.3% Ni in disseminated zones and >1% Ni in the matrix sulphide zones. DHTEM parameters are as follows;  Tx Loop size: 500 x 800 m  Transmitter: GAP HPTX-70  Receiver: EMIT SMARTem24  Sensor: EMIT DigiAtlantis  Station spacing: 2m to 10m  Tx Freq: 0.5 Hz  Duty cycle: 50%  Current: ~130 Amp  Stacks: 32-64  Readings: 2-3 repeatable readings per station
Verification of sampling and assaying	The verification of significant intersections by either independent or alternative company personnel. Results verified internally by Company personnel
	The use of twinned holes. Hole CBDD0028 is twinning hole CBP042. No other twinningiswarranted at this stage.
	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.
	Discuss any adjustment to assay data. No adjustments have been made to the assay data other than length weighted averaging.

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Criteria	JORC Code explanation Commentary
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 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. Holes are progressively surveyed by DGPS on a batch basis.
	 Specificationofthe grid systemused. MGA94_51
	Quality and adequacy of topographic control. Topography is relatively flat and control is more than adequate given the early stage of the project. A 3D drone ortho-photographic survey had been used to create a DTMofthe 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 hole orientation does not introduce a sample bias.
Sample security	The measures taken to ensure sample security. Samples are in the possession of Estrella’s 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 giventhe early stage ofthe project.

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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	Code explanation	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 mafic-ultramafic intrusive complex (CBIC).
								Several distinctive styles of Ni and Ni-Cu mineralisation
								have been identified within the CBIC. 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 locations within the layered magmatic
								complex.
								Estrella is in the process of re-mapping and reclassifying
								the Carr Boyd Igneous Complex. Previous “Layered
								Intrusive” models are misleading as the complex is made
								up of many overprinted and juxtaposed, smaller layered
								and non-layered intrusives that have progressed from
								Ultramafic to Mafic over time. The complex is better
								described as a magma feeder zone, where the earliest
								melts passing through the Morelands Formation have
								assimilated graphitic sulphidic shales, reached sulphur
								saturation and deposited nickel sulphides along basal
								contacts.
								These basal contacts are not restricted to the base of the
								complex, but can form within the complex, wherever
								access was gained by these earlier flows.
								The complex has then been intruded and inflated over
								time by progressively more mafic, barren magmas to
								produce what we see today.
Drill hole	A	summary	of	all	information			All relevant drillhole information can be found in the
Information	material to the understanding of						the	Tables and sections within 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
	o	hole length.

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Criteria	JORC Code explanation Commentary
	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 0.5% Ni cut-off with SG and length weighted intervals. All intercepts are reported using SG and length weighted intervals.
	The assumptions used for any reporting of metal equivalent values should be clearly stated. No metal equivalents have been stated
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’). True widths have not been stated. The variable orientation of mineralisation within magma feeders combined with a structural overprint and steep drill angles make true width calculations highly misleading.
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. Maps and sections with drill hole locations are included in the announcement.
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 drillhole information within this announcement is reported
Other substantive exploration data	Other exploration data, if meaningful and material, should be reported including (but not limited to): geological observations; geophysical survey results; geochemical survey results; bulk 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 out.

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Criteria	JORC Code explanation	Commentary	Commentary
	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		Diamond drilling and DHTEM geophysical testing is
	further work (e.g. tests for lateral		continuing.
	extensions or depth extensions or
	large-scale step-out drilling).
	Diagrams clearly highlighting the
	areas of possible extensions,
	including the main geological
	interpretations and future drilling
	areas, provided this information is
	not commercially sensitive.