FALCON METALS LTD — Capital/Financing Update 2024

Jun 10, 2024

11 June 2024

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ASX / Media Announcement
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Electromagnetic Survey Identifies New Targets at Mt Jackson

• Ground Electromagnetic (EM) survey at the Mt Jackson Project identifies multiple conductors considered prospective for nickel-copper sulphide mineralisation

• These conductors coincide with nickel, copper and PGM soil anomalies associated with interpreted ultramafic rocks, enhancing their prospectivity

• Southern cluster of three high-conductance, late-time anomalies (>10,000 Siemens), up to 260m long, interpreted to be potential massive sulphides

• Central 1,380m long moderate-conductance anomaly (2,150 Siemens) coincides with the highest priority gold anomaly from soil sampling – gold mineralisation associated with conductive sulphides is present within the Southern Cross Greenstone Belt, most notably at the Bounty Gold Deposit

• Aircore drilling of the gold targets and the up-dip projection of the shallow highconductance EM plates is planned for Q4 2024 following completion of a heritage survey, with RC or diamond drilling of the EM plates to follow

Falcon Metals Limited ( ASX: FAL ) ( “Falcon” or “the Company” ) advises that it has received results for a ground Moving Loop Electromagnetic (“MLEM”) survey at its 100%-owned Mt Jackson Project located 110 kilometres north of Southern Cross in Western Australia (see Figure 1). Mt Jackson is located at the convergence of the Southern Cross Greeenstone Belt and the regional-scale Koolyanobbing Shear Zone at the northern end of the belt. The Southern Cross Greenstone Belt is a well-endowed mineral province and has historically produced ~384kt[1] of nickel from the Forrestania Greenstone Belt, the southern extension of the Southern Cross Greenstone Belt, and more than 15Moz[2] of gold.

The survey was conducted by GEM Geophysics using a high-temperature Superconducting Quantum Interference Device (HT-SQUID) sensor. The program comprised three survey grids targeting separate soil anomalies on E77/2577 (see Figure 2) where Falcon previously announced coincident Ni-Cu-PGM results (see ASX announcement “Soil Sampling Confirms Gold, Nickel and Lithium Potential at Mt Jackson” on 12 December 2023). The MLEM survey has generated nine late-time conductors, which have been modelled as plates (planar rectangular conductive bodies) as shown in Table 1.

Table 1 Modelled priority conductors generated from MLEM survey

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1 ASX announcement: IGO 30/08/2022, “FY22 Cosmos and Forrestania Mineral Resources and Ore Reserves”, p32

2 ASX announcement RRL 03/08/2022, “Diggers and Dealers Mining Forum”

Falcon Metals Limited ASX: FAL Level 6, 350 Collins St, Melbourne VIC 3000 PO Box 106, Flinders Lane VIC 8009

T : +61 3 8648 6684 E : info@falconmetals.com.au www.falconmetals.com.au ABN 87 651 893 097

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Figure 1 Location of Mt Jackson Project in reference to the Southern Cross Greenstone Belt

The South anomaly grid returned three relatively shallow, high conductance plates (see Figure 3):

• Sth_E The highest conductance plate in the survey ( 17,000 Siemens ) starting at 99 metres below surface with a strike extent of 260 metres

• Sth_F A shallower high-conductance plate ( 13,600 Siemens ) starting at 67 metres below surface with a strike extent of 140m

• Sth_C A high-conductance plate ( 10,600 Siemens ) starting at 82 metres below surface with a strike extent of 165m

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Ground truthing of the up-dip projection of these conductors confirmed the presence of shallow cover, which is concealing the bedrock geology. The very strong conductance of these plates (~10,60017,000 Siemens) is consistent with highly conductive bodies such as massive nickel-copper sulphide minerals, sulphide facies banded iron formations or graphite. Three other moderate conductance plates that modelled deeper (between 5,850-10,000 Siemens) will be assessed following testing of the shallower and higher conductance targets.

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Figure 2 Plan map of Mt Jackson showing the location of the ground EM surveys

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Figure 3 South anomaly showing all the high-priority EM plates generated

The Central anomaly survey returned two priority conductors:

• Cen_B A large moderate conductance plate ( 2,150 Siemens ) starting at 51 metres below surface with a strike extent of 1,380m, the longest of the survey; and

• Cen_A A smaller higher conductance plate ( 7,160 Siemens ) at the southern end of the larger plate, starting at a depth of 95 metres below surface with a strike extent of 180m

Both EM plates are coincident with the highest gold anomaly in the area, which is encouraging as significant gold mineralisation was associated with pyrrhotite at the Bounty Gold Deposit in the Southern Cross Greenstone Belt. Orientation studies after discovery showed the Bounty deposit demonstrated high conductance[3] . The Central anomaly plates are also coincident with Ni, Cu and PGM anomalism in the soil sampling (see Figures 4 and 5), and although the size of the larger plate suggests that it could be stratigraphic in nature, it is still a compelling target due to its association with a smaller, higher conductance plate and the overlying soil anomalism. Importantly, the soil anomalism includes Pt and Pd, which are often indicative of the Ni and Cu being sulphide-derived rather than just being enriched during the weathering of otherwise unmineralized ultramafic rocks.

Only one significant conductor was generated from the North anomaly survey, a 2,500 Siemens plate modelled to start at 295 metres below surface. This will be assessed once the shallower and higher conductance targets are tested at the other anomalies.

The initial aircore drill program at Mt Jackson is expected to be undertaken in Q4 2024 but will be dependent on heritage clearance being obtained in the coming months. The aircore drilling program aims to test the anomalous gold zones, the up-dip projection of the three high-conductance plates in the South anomaly area, and the two plates in the Central anomaly area.

A deeper drill program specifically targeting the conductors will be submitted in August as part of the Geological Survey of Western Australia (“GSWA”) Exploration Incentive Scheme co-funded drilling program - Round 30.

3John H Coggon & Robert A. Rutherford (1994) GOLD: Bounty Gold Deposit, Western Australia: Magnetic and Electromagnetic Responses, ASEG Extended Abstracts, 1994:1, 233-240, DOI: 10.1071/ASEGSpec07 15

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Figure 4 Central anomaly Cu-Ni-PGE

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Figure 5 Central anomaly Au

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This announcement has been approved for release by the Board of Falcon Metals. For more information, please contact:

Tim Markwell Media and Investor Queries Managing Director Ben Creagh tmarkwell@falconmetals.com.au benc@nwrcommunications.com.au

COMPETENT PERSON STATEMENT:

The information contained within this announcement relates to exploration results based on and fairly represents information compiled and reviewed by Mr Doug Winzar who is a Member of the Australian Institute of Geoscientists. Mr Winzar is a fulltime employee of Falcon Metals Limited and has sufficient experience which is relevant to the style of mineralisation and type of deposit under consideration and to the activity which he is undertaking to qualify as a Competent Person as defined in the 2012 edition of the “Australian Code for Reporting Exploration Results, Mineral Resources and Ore Reserves”. Mr Winzar consents to the inclusion in the documents of the matters based on this information in the form and context in which it appears.

FORWARD LOOKING STATEMENT:

This announcement may contain certain forward-looking statements, guidance, forecasts, estimates, prospects, projections or statements in relation to future matters that may involve risks or uncertainties and may involve significant items of subjective judgement and assumptions of future events that may or may not eventuate (Forward Statements). Forward Statements can generally be identified by the use of forward looking words such as "anticipate", "estimates", "will", "should", "could", "may", "expects", "plans", "forecast", "target" or similar expressions and may include, without limitation, statements regarding plans, strategies and objectives of management, anticipated production and expected costs. Indications of, and guidance on future earnings, cash flows, costs, financial position and performance are also forward-looking statements. Forward looking statements, opinions and estimates included in this announcement are based on assumptions and contingencies which are subject to change, without notice, as are statements about market and industry trends, which are based on interpretation of current market conditions. Forward looking statements are provided as a general guide only and should not be relied on as a guarantee of future performance.

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APPENDIX: JORC Table 1 – Mt Jackson Project

Section 1 Sampling Techniques and Data

Criteria	JORC Code explanation	JORC Code explanation	Commentary	Commentary
Sampling techniques	•	Nature and quality of sampling (eg. cut	•	The recent soil samples were collected from 0- 25 cm and
		channels, random chips, or specific		sieved to -0.3mm in the field with approximately 500g
		specialised industry standard measurement		collected. The samples are then dried and sieved to -50um
		tools appropriate to the minerals under		(0.05mm) at the laboratory and 30g of this material is used
		investigation, such as down hole gamma		for assay.
		sondes, or handheld XRF instruments, etc).
		These examples should not be taken as
		limiting the broad meaning of sampling.
	•	Include reference to measures taken to
		ensure sample representivity and the
		appropriate calibration of any measurement
		tools or systems used.
	•	Aspects of the determination of
		mineralisation that are Material to the Public
		Report.
	•	In cases where ‘industry standard’ work has
		been done this would be relatively simple
		(eg. ‘reverse circulation drilling was used to
		obtain 1 m samples from which 3 kg was
		pulverised to produce a 30 g charge for fire
		assay’). In other cases, more explanation may
		be required, such as where there is coarse
		gold that has inherent sampling problems.
		Unusual commodities or mineralisation types
		(eg. submarine nodules) may warrant
		disclosure of detailed information.
Drilling techniques	•	Drill type (eg. core, reverse circulation, open-	•	Not applicable.
		hole hammer, rotary air blast, auger, Bangka,
		sonic, etc) and details (eg. 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).
Drill sample recovery	•	Method of recording and assessing core and	•	Not applicable.
		chip sample recoveries and results assessed.
	•	Measures taken to maximise sample
		recovery and ensure representative nature of
		the samples.
	•	Whether a relationship exists between
		sample recovery and grade and whether
		sample bias may have occurred due to
		preferential loss/gain of fine/coarse material.
Logging	•	Whether core and chip samples have been	•	Not applicable.
		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
		relevant intersections logged.

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Criteria	JORC Code explanation	JORC Code explanation	Commentary	Commentary
Sub-sampling	•	If core, whether cut or sawn and whether	•	The recent sampling involved sieving the material to -50um
techniques and		quarter, half or all core taken.		to remove the diluting effect of sand from the clay that was
sample preparation	•	If non-core, whether riffled, tube sampled,		targeted. This was done in the laboratory once the sample
		rotary split, etc and whether sampled wet or		was dried.
		dry.	•	The sample size was appropriate to ensure enough -50um
	•	For all sample types, the nature, quality and		material was available for analysis.
		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 beingsampled.
Quality of assay data	•	The nature, quality and appropriateness of	•	Soil samples were processed by Intertek Genalysis in
and laboratory tests		the assaying and laboratory procedures used		Maddington, WA.
		and whether the technique is considered	•	The samples were analysed using a 10g Cyanide Leach for
		partial or total.		Au (CN10/MS), specifically designed for fine fraction soil
	•	For geophysical tools, spectrometers,		sampling. This is a partial digest. The sample was also
		handheld XRF instruments, etc, the		analysed with a 0.5 g Aqua Regia digest with a 53-element
		parameters used in determining the analysis		package and analysed on a triple quad ICPMS to allow for
		including instrument make and model,		low level detection (AR005/MSQ53). This is considered a
		reading times, calibrations factors applied		partial digest.
		and their derivation, etc.	•	Falcon used 1 standard every 100 samples.
	•	Nature of quality control procedures adopted	•	The lab uses their own certified standards and blanks, and
		(eg. standards, blanks, duplicates, external		this data is also provided to Falcon.
		laboratory checks) and whether acceptable
		levels of accuracy (ie. lack of bias) and
		precision have been established.
Verification of	•	The verification of significant intersections by	•	Results were checked by the Falcon Metals Exploration
sampling and		either independent or alternative company		Manager.
assaying		personnel.
	•	The use of twinned holes.
	•	Documentation of primary data, data entry
		procedures, data verification, data storage
		(physical and electronic) protocols.
	•	Discuss anyadjustment to assaydata.
Location of data	•	Accuracy and quality of surveys used to	•	Sample locations have been picked up using a handheld
points		locate drill holes (collar and down-hole		global positioning system (GPS) with a ±5 m error.
		surveys), trenches, mine workings and other	•	The grid system used for the location of all drillholes is
		locations used in Mineral Resource		MGA, GDA94 (Zone 50).
		estimation.	•	The reliability of RL data is unknown.
	•	Specification of the grid system used.
	•	Qualityand adequacyof topographic control.
Data spacing and	•	Data spacing for reporting of Exploration	•	Sample spacing was 100m x 100m, this was designed to
distribution		Results.		increase the resolution of previously defined anomalous
	•	Whether the data spacing and distribution is		zones.
		sufficient to establish the degree of	•	This spacing is not considered suitable for establishing
		geological and grade continuity appropriate		geological or grade continuity but to aid in the drill
		for the Mineral Resource and Ore Reserve		planning.
		estimation procedure(s) and classifications	•	No sample compositing has been applied.
		applied.
	•	Whether sample compositing has been
		applied.

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Criteria	JORC Code explanation	JORC Code explanation	Commentary	Commentary
Orientation of data in	•	Whether the orientation of sampling	•	The infill sampling on a 100m x 100m grid was designed to
relation to geological		achieves unbiased sampling of possible		remove any bias.
structure		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.
Sample security	•	The measures taken to ensure sample	•	Samples were delivered to the laboratory by the
		security.		contractors who collected the samples.
Audits or reviews	•	The results of any audits or reviews of	•	No review has been carried out to date.
		samplingtechniques and data.

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Section 2 Reporting of Exploration Results

Criteria	JORC Code explanation Commentary	JORC Code explanation Commentary	JORC Code explanation Commentary	JORC Code explanation Commentary	JORC Code explanation Commentary
Mineral tenement	•	Type, reference name/number, location and •	Surface		sampling has been carried out within
and land tenure		ownership including agreements or material	E77/2577 and E77/2946. The tenement areas are
status		issues with third parties such as joint ventures,	wholly owned by Falcon Metals (WA) Pty Ltd
		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 obtaininga licence to operate in the area.
Exploration done by	•	Acknowledgment and appraisal of exploration •	Southern Cross Goldfields took eight rock chip
other parties		by other parties.	samples at the south end of the project area in 2009.
			No	gold	values were noted in the digital data file. No
			anomalous pathfinder results were noted in the
			multi-elements. In 2018, Fleet Street Holdings took
			63	soil samples within the southwest corner of the
			project area. A peak gold value of 7 ppb was
			returned, and no significant gold pathfinder results
			are noted.
Geology	•	Deposit type, geological setting and style of •	Two mineralisation styles are being explored for:
		mineralisation.		1)	orogenic style gold similar to that seen
					across the goldfields of the Yilgarn Craton.
				2)	Komatiite hosted Ni-Cu-PGE
		•	In addition to this the area is also prospective for LCT
			pegmatites and this will be assessed as part of the
			exploration.
Drill hole	•	A summary of all information material to the •	Not applicable.
Information		understanding of the 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.
	•	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.
Data aggregation	•	In reporting Exploration Results, weighting •	Not Applicable.
methods		averaging techniques, maximum and/or
		minimum grade truncations (eg. 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 in detail.
	•	The assumptions used for any reporting of
		metal equivalent values should be clearly
		stated.

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Relationship	•	These relationships are particularly important •	Not applicable.
between		in the reporting of Exploration Results.
mineralisation	•	If the geometry of the mineralisation with
widths and		respect to the drill hole angle is known, its
intercept lengths		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 (eg. ‘down hole
		length,true width not known’).
Diagrams	•	Appropriate maps and sections (with scales) •	The results of the soil sampling results for the
		and tabulations of intercepts should be	targeted elements are shown in the figures and
		included for any significant discovery being	discussed in the text.
		reported These should include, but not be
		limited to a plan view of drill hole collar
		locations and appropriate sectional views.
Balanced reporting	•	Where comprehensive reporting of all •	The contouring has been done to5ppb Pd, 5ppb Pt,
		Exploration Results is not practicable,	50 ppm Cu and 50ppm Ni. This is appropriate for the
		representative reporting of both low and high	identification of anomalous areas for further
		grades and/or widths should be practiced to	targeting MLEM and drilling.
		avoid misleading reporting of Exploration
		Results.
Other substantive	•	Other exploration data, if meaningful and •	The results of the High Temperature SQUID MLEM
exploration data		material, should be reported including (but not	survey are provided in this announcement. Initial
		limited to): geological observations;	surveying was done with a 200m loop in a slingram
		geophysical survey results; geochemical survey	configuration with 100m between stations and 200m
		results; bulk samples – size and method of	between lines. The southern area had infill
		treatment; metallurgical test results; bulk	undertaken to tighten the line spacing to 100m to
		density, groundwater, geotechnical and rock	better constrain the deeper targets.
		characteristics; potential deleterious or
		contaminatingsubstances.
Further work	•	The nature and scale of planned further work •	Drilling is planned to test the shallower high
		(eg. tests for lateral extensions or depth	conductance targets generated from the MLEM
		extensions or large-scale step-out drilling).	survey
	•	Diagrams clearly highlighting the areas of
		possible extensions, including the main
		geological interpretations and future drilling
		areas, provided this information is not
		commerciallysensitive.

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