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FALCON METALS LTD Capital/Financing Update 2024

May 27, 2024

64898_rns_2024-05-27_1adc6134-875f-4804-b397-407b82a7235f.pdf

Capital/Financing Update

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28 May 2024

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ASX Announcement
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High-Grade Mineral Sands Discovery

Thick, continuous zone of high-grade mineralisation defined over a ~1,200m x ~600m area at the 100% owned Farrelly Prospect

HIGHLIGHTS

  • High-grade mineral sands discovery that remains open in several directions. Significant drill intercepts include:

  • PHAC2062 26m @ 8.9% THM from 6m; including 15m @ 12.9% THM from 13m

  • PHAC2073 22m @ 9.2% THM from 8m, including 12m @ 15.1% THM from 16m; that also includes 3m @ 20.3% THM from 21m

  • PHAC2064 20m @ 9.0% THM from 10m; including 9m @ 14.9% THM from 17m

  • PHAC2063 22m @ 7.8% THM from 8m; including 10m @ 13.8% THM from 15m

  • PHAC2030 18m @ 9.5% THM from 9m; including 10m @ 15.5% THM from 14m; that also includes 2m @ 23.1% THM from 16m

  • PHAC2046 16m @ 10.6% THM from 11m, including 8m @ 18.3% THM from 13m; that also includes 4m @ 20.2% THM from 14m

  • PHAC1996 19m @ 8.5% THM from 11m, including 8m @ 13.9% THM from 16m

  • PHAC1997 17m @ 9.3% THM from 10m, including

  • 7m @ 17.7% THM from 14m; that also includes 3m @ 21.8% THM from 16m

  • PHAC2068 11m @ 14.1% THM from 16m, including 10m @ 14.8% THM from 17m; that also includes 1m @ 22.0% THM from 25m

  • Of the 91 holes drilled in this campaign, 33 holes contained intersections >10% THM, with 11 holes containing intersections >20% THM – grades significantly higher than surrounding deposits in the region at this scale

  • Several additional high-grade intercepts up to 5km from the discovery indicate a potentially significant scale strandline-style system which requires further drilling to define

  • Preliminary mineralogical work on two drill holes in the Main Zone indicates a favourable assemblage including Zircon, Ilmenite, and Rutile as well as potential rareearth-element bearing Monazite and Xenotime (highly sought-after critical minerals)

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 : [email protected] www.falconmetals.com.au ABN 87 651 893 097

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  • Assaying to determine the valuable heavy mineral assemblage in the 20um to 38um size range provides further upside to grade

  • Additional metallurgical and mineralogical work will commence imminently, including the sizing of the heavy minerals and their potential recovery through conventional wet and dry separation techniques – next results expected in Q3 2024

  • Drilling planned to recommence in Q4 2024

Falcon Metals Limited ( ASX: FAL ) ( “Falcon” or “the Company” ) advises that it has received results for the 91-hole aircore (AC) drilling program at its Farrelly Mineral Sands Prospect in Victoria (see Figure 1), following up on the high-grade reconnaissance drilling results announced on 4 March 2024 (See ASX Announcement “High-grade Mineral Sands Intersected at Pyramid Hill” ).

The new results confirm the Farrelly Prospect as a high-grade mineral sands discovery with a thick zone of mineralisation (Main Zone) now defined covering an area of approximately 1,200 metres by 600 metres and remaining open in several directions. Additional high-grade zones have also been identified up to 5km to the north of the Main Zone, indicating a potential large-scale strandline style system.

Initial mineralogical work on the first phase of AC drill holes from PHAC1803 and PHAC1804, as previously announced, indicated a favourable heavy minerals assemblage including Zircon, Ilmenite, and Rutile, as well as potential rare-earth element bearing Monazite and Xenotime (both highly sought-after critical minerals) still to be assessed (see Table 1).

Falcon is currently designing a bulk test work program to further understand the mineralogical and metallurgical properties of the Farrelly Prospect. This bulk test work will also provide important information on likely metallurgical recoveries of the valuable heavy minerals through conventional wet and dry separation techniques, which will be important in assessing the development potential and economic viability of the prospect. Assaying to date indicates consistent, very high grades in the 38µm to 1mm size range. Peer companies with similar styles of mineralisation in the Murray Basin also assess the 20µm to 38µm size range, which has not yet been assayed, and potentially presents further grade upside to the Farrelly Prospect.

The drilling at the Farrelly Prospect has involved drilling on roadsides and on private land. Access to additional private land will be a focus prior to the commencement of the next drilling campaign that is expected to recommence in Q4 2024, dependent on ground conditions, cropping and access.

Falcon Metals’ Managing Director Tim Markwell said:

“The results at Farrelly are quite outstanding and define what appears to be a discovery of a continuous zone of high-grade heavy mineral sands over a sizable area, which remains open. While it is early days in our understanding of Farrelly, with more drilling and test work required, it is shaping up to become a significant mineral sands deposit, in proximity to other major deposits, but at far higher grades.

We need to assess the heavy mineral assemblage, and further work is needed on the sizing, clay content and recovery, which are all important factors in progressing mineral sands projects. There is also an opportunity to look at the critical minerals content with the potential for Monazite and Xenotime, containing important rare-earth-elements.

Importantly, we have not yet defined the limits of the high-grade zone and drilling to test this is expected to recommence in the summer once harvesting is completed, in parallel with our gold exploration at Pyramid Hill.”

Falcon Metals Limited

ASX: FAL

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Table 1 Mineral suite results from sachet scanning from the Farrelly Prospect (VHM>1%) [1]

Hole ID From To Interval THM% Zircon Rutile Leucoxene Ilmenite VHM%2 In Situ
VHM%3
PHAC1788 11 15 4 2.9% 29% 10% 5% 31% 75% 2.2%
PHAC1789 10 17 7 2.1% 22% 13% 11% 36% 82% 1.7%
PHAC1790 8 14 6 4.8% 17% 5% 5% 18% 45% 2.2%
PHAC1803 12 29 17 9.8% 17% 7% 5% 26% 55% 5.4%
incl. 16 27 11 14.4% 20% 7% 5% 27% 59% 8.5%
that also incl. 16 17 1 21.6% 25% 10% 5% 20% 60% 13.0%
and 19 26 7 16.8% 20% 6% 5% 29% 60% 10.1%
PHAC1804 13 31 18 5.5% 14% 9% 5% 22% 50% 2.8%
incl. 20 27 7 10.7% 15% 11% 5% 24% 55% 5.9%
that also incl. 22 26 4 12.0% 15% 10% 5% 24% 54% 6.5%
  • 1 See ASX Announcement “High-grade Mineral Sands Intersected at Pyramid Hill” dated 4 March 2024

  • 2VHM% is calculated by adding Zircon, Rutile, Leucoxene & Ilmenite (NB: Preliminary scanning does not include Monazite or Xenotime) 3In Situ VHM% is calculated by THM% multiplied by VHM%

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Figure 1 Location map of the Farrelly Mineral Sands Prospect

Falcon Metals Limited

ASX: FAL

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Background

In October 2023 Falcon completed its first drill program specifically targeting mineral sands within EL006864 and EL007120. High-grade results were returned from PHAC1803 and PHAC1804, the best results from the program, approximately 5km east of the Wim Resource Wedderburn Deposit, with highlights as follows[ 1] :

PHAC1803 17m @ 9.8% THM from 12m; including 10m @ 15.3% THM from 16m, that also includes 1m @ 21.6% THM from 16m • PHAC1804 18m @ 5.5% THM from 13m; including 4m @ 12.0% THM from 22m

Over 5km north-northeast of these results, Falcon drilled a further three holes 200m apart which also returned anomalous results:

PHAC1790 6m @ 4.8% THM from 8m • PHAC1789 7m @ 2.1% THM from 10m • PHAC1788 4m @ 2.9% THM from 11m

The area of mineral sands mineralisation defined was named the Farrelly Prospect and detailed grain counting and sachet scanning completed on samples from these holes confirmed that the Valuable Heavy Mineral (VHM) assemblage was similar to other known deposits in the Murray Basin ( see Table 1).

AC Drill Results

Main Zone

In March 2024 Falcon completed a follow up aircore drilling program at Farrelly with 91 holes drilled for 3,549m. This included a 200m grid around PHAC1803 and PHAC1804, as well as 200m spacing along roadsides testing for northern extensions to the mineralisation. Additional infill was also undertaken in high-grade zones to obtain sufficient material for subsequent test work and to aid in determining an appropriate drill spacing for future resource drilling purposes.

The prospect lies along the edge of the Murray Basin, a known source of mineral sand enrichment within both ancient beach and back beach settings. The heavy mineral sands present within the prospect are finer in grain size, with the mineralised zone often containing higher clay contents which are formed by weathering of the feldspar grains in these ancient sands. Sample logging has also noted the minor presence of indurated material formed by the leached iron within the high-grade mineralised zone.

A large high-grade zone, called the Main Zone, has now been defined around the PHAC1803 and PHAC1804 intercepts over approximately 1,200m long in an east-west direction, and up to 600m in a north-south direction, and remains open to the northeast, northwest and southwest (See Figure 2). The high-grade Main Zone as shown in Figure 2 is defined by the THM percentage of each interval multiplied by its thickness (meters), being greater than 50 THM% x meters. The depth to mineralisation ranges from between 6m to 20m (>1 THM%) and averages approximately 12m.

1 See ASX Announcement “High-grade Mineral Sands Intersected at Pyramid Hill” dated 4 March 2024

Falcon Metals Limited

ASX: FAL

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Highlights from the Main Zone include:

PHAC2062 26m @ 8.9% THM from 6m; including 15m @ 12.9% THM from 13m • PHAC2073 22m @ 9.2% THM from 8m, including 12m @ 15.1% THM from 16m; that also includes 3m @ 20.3% THM from 21m • PHAC2064 20m @ 9.0% THM from 10m; including 9m @ 14.9% THM from 17m • PHAC2063 22m @ 7.8% THM from 8m; including 10m @ 13.8% THM from 15m • PHAC2030 18m @ 9.5% THM from 9m; including 10m @ 15.5% THM from 14m; that also includes 2m @ 23.1% THM from 16m • PHAC1996 19m @ 8.5% THM from 11m, including 8m @ 13.9% THM from 16m • PHAC1997 17m @ 9.3% THM from 10m, including 7m @ 17.7% THM from 14m; that also includes 3m @ 21.8% THM from 16m • PHAC2068 11m @ 14.1% THM from 16m, including 10m @ 14.8% THM from 17m; that also includes 1m @ 22.0% THM from 25m

The geometry and scale of the Main Zone is yet to be adequately defined due to the limited drilling, however the consistency and thickness of the drill results are highly encouraging as shown in the cross-sections in Figures 3 to 5. These include an east-west section through the widest part of the Main Zone in Figure 3 (Section A-A’) where 17 consecutive holes intersected high-grade mineralisation (>10% THM), with the zone becoming shallower towards the west. Assays remain pending for two holes testing the western extension of this zone. An additional east-west section 200m to the north is shown in Figure 4 (Section B-B’), and two north-south lines are shown in Figure 5 (Sections C-C’ and D-D’). It seems likely that the size of the zone will increase with additional drilling as some of the highest-grade results remain open such as PHAC2030 in the north-west, PHAC2073 to the north-east and PHAC1996-1998 to the south-west.

Now that it has been confirmed as a discovery, additional sampling is underway to better constrain the Farrelly Prospect and to assist in targeting follow up drilling. This involves sampling above and below zones that returned higher than expected grades, and for holes initially unsampled that are adjacent to holes with high-grade intercepts.

Falcon Metals Limited

ASX: FAL

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Figure 2 Main Zone Inset A showing the high-grade mineralisation and the location of the cross sections in Figures 3-5

Falcon Metals Limited

ASX: FAL

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ASX Announcement
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Figure 3 Cross section A-A’, an east-west line showing the 1,200m long high-grade Main Zone at 10 times vertical exaggeration

Falcon Metals Limited

ASX: FAL

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ASX Announcement
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Figure 4 Cross-section B-B’, 200m north of the A-A’ through the Main Zone at 10 times vertical exaggeration

Falcon Metals Limited

ASX: FAL

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Figure 5 Cross-sections C-C’ and D-D’, north-south lines through the Main Zone at 10 times vertical exaggeration

Falcon Metals Limited

ASX: FAL

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Northern Exploration Upside

North of the Main Zone, the 200m spaced drilling along roadsides also intercepted several zones of high-grade mineralisation up to 5km away (see Figure 6). Additional drilling is required to define the extent and orientation of these zones.

Highlights include:

PHAC2046 16m @ 10.6% THM from 11m, including 8m @ 18.3% THM from 13m; that also includes 4m @ 20.2% THM from 14m • PHAC2001 9m @ 10.4% THM from 10m, including 4m @ 16.9% THM from13m • PHAC2043 12m @ 5.5% THM from 14m, including 5m @ 10.7% THM from 19m • PHAC2042 10m @ 5.9% THM from 12m, including 3m @ 14.9% THM from 17m • PHAC2044 12m @ 4.5% THM from 13m, including 1m @ 10.2% THM from 20m • PHAC2075 8m @ 6.4% THM from 8m, including 3m @ 11.6% from 9m

Next Steps

At this stage, Falcon has not yet assessed the mineral sands assemblage of the new drill holes. However, the follow-up drill program has provided sufficient material to complete a more comprehensive program of test work on the mineralogical and metallurgical properties better suited to understanding the valuable heavy mineral assemblage distribution across the deposit, the sizing of the heavy minerals, and their potential recovery through conventional wet and dry separation techniques.

The THM analysis to date was completed upon the 38µm to 1mm size fraction, as is standard practice in reporting mineral sands results. Further studies to test for the THM and VHM abundance of the 20µm to 38µm fine fraction will be investigated, as will the monazite and xenotime distribution, and rare earth element grades of these critical minerals.

Planning is underway for the next drill campaign to define the extents of the high-grade Main Zone, as well as the other significant intercepts further to the north in the greater Farrelly Prospect area. This will require access to farms held by several landholders. In the coming months Falcon will focus on gaining consent to explore in these prospective areas so that drilling can recommence once harvesting has been completed in Q4 2024.

Falcon would like to thank the local stakeholders who have supported the Company through the drilling, including the local council and private landholders. Falcon is committed to positive community engagement and looks forward to working with these stakeholders in the upcoming drilling program.

Falcon Metals Limited

ASX: FAL

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Figure 6 Farrelly Prospect showing the northern high-grade intercepts

This announcement has been approved for release by the Board of Falcon Metals.

For more information, please contact:

Tim Markwell Ben Creagh Managing Director Media and Investor Queries [email protected] [email protected]

Falcon Metals Limited

ASX: FAL

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COMPETENT PERSON STATEMENT:

The information contained within this announcement relates to exploration results based on and fairly represents information compiled and reviewed by Mr Mark Gifford, a Competent Person who is a Fellow of the Australian Institute of Mining and Metallurgy (FAusIMM). Mr Mark Gifford is an independent consultant for Falcon Metals Ltd and has sufficient experience that is relevant to the style of mineralisation and type of deposit under consideration and to the activity being undertaken to qualify as a Competent Person as defined in the 2012 Edition of the ‘Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves’. Mr Gifford consents to the inclusion in the report of the matters based on his 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.

Falcon Metals Limited

ASX: FAL

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APPENDIX 1: Details for aircore drill holes with results available in this announcement

Prospect Easting Northing RL Azimuth Dip Depth
Hole ID Zone Grid
(m) (m) (m) UTM (°) (°) (m)
Farrelly PHAC1993 742409 5986550 109 54 GDA94 0 -90 39
Farrelly PHAC1994 742209 5986593 109 54 GDA94 0 -90 39
Farrelly PHAC1995 742108 5986607 109 54 GDA94 0 -90 39
Farrelly PHAC1996 741898 5986646 109 54 GDA94 0 -90 39
Farrelly PHAC1997 741705 5986675 110 54 GDA94 0 -90 39
Farrelly PHAC1998 741509 5986709 110 54 GDA94 0 -90 39
Farrelly PHAC1999 741308 5986747 111 54 GDA94 0 -90 39
Farrelly PHAC2000 741110 5986771 112 54 GDA94 0 -90 39
Farrelly PHAC2001 744627 5988928 101 54 GDA94 0 -90 39
Farrelly PHAC2002 744657 5989124 101 54 GDA94 0 -90 39
Farrelly PHAC2003 744691 5989328 100 54 GDA94 0 -90 39
Farrelly PHAC2004 744722 5989525 100 54 GDA94 0 -90 39
Farrelly PHAC2005 744757 5989712 100 54 GDA94 0 -90 39
Farrelly PHAC2006 744799 5989911 99 54 GDA94 0 -90 39
Farrelly PHAC2007 744827 5990132 99 54 GDA94 0 -90 39
Farrelly PHAC2008 745047 5990218 99 54 GDA94 0 -90 39
Farrelly PHAC2009 745241 5990184 98 54 GDA94 0 -90 39
Farrelly PHAC2010 745438 5990151 98 54 GDA94 0 -90 39
Farrelly PHAC2011 745636 5990123 98 54 GDA94 0 -90 39
Farrelly PHAC2012 745816 5990154 98 54 GDA94 0 -90 39
Farrelly PHAC2013 744842 5990310 99 54 GDA94 0 -90 39
Farrelly PHAC2014 744802 5990594 98 54 GDA94 0 -90 39
Farrelly PHAC2015 744756 5990790 98 54 GDA94 0 -90 39
Farrelly PHAC2016 744727 5990985 98 54 GDA94 0 -90 39
Farrelly PHAC2017 744692 5991190 97 54 GDA94 0 -90 39
Farrelly PHAC2018 744649 5991456 97 54 GDA94 0 -90 39
Farrelly PHAC2019 744536 5991748 97 54 GDA94 0 -90 39
Farrelly PHAC2020 744580 5991901 97 54 GDA94 0 -90 39
Farrelly PHAC2021 745255 5991784 97 54 GDA94 0 -90 39
Farrelly PHAC2022 745430 5991755 96 54 GDA94 0 -90 39
Farrelly PHAC2023 745616 5991724 96 54 GDA94 0 -90 39
Farrelly PHAC2024 742602 5986522 109 54 GDA94 0 -90 39
Farrelly PHAC2025 742687 5986508 109 54 GDA94 0 -90 39
Farrelly PHAC2026 742459 5986354 110 54 GDA94 0 -90 39
Farrelly PHAC2027 742658 5986321 109 54 GDA94 0 -90 39

Falcon Metals Limited

ASX: FAL

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Prospect Easting Northing RL Azimuth Dip Depth
Hole ID Zone Grid
(m) (m) (m) UTM (°) (°) (m)
Farrelly PHAC2028 742279 5986394 109 54 GDA94 0 -90 39
Farrelly PHAC2029 742071 5986417 110 54 GDA94 0 -90 39
Farrelly PHAC2030 742131 5986806 109 54 GDA94 0 -90 39
Farrelly PHAC2031 742314 5986781 108 54 GDA94 0 -90 39
Farrelly PHAC2032 742704 5986712 107 54 GDA94 0 -90 39
Farrelly PHAC2033 742521 5986745 108 54 GDA94 0 -90 39
Farrelly PHAC2034 743130 5986449 106 54 GDA94 0 -90 39
Farrelly PHAC2035 743333 5986426 106 54 GDA94 0 -90 39
Farrelly PHAC2036 743527 5986388 106 54 GDA94 0 -90 39
Farrelly PHAC2037 742383 5987051 108 54 GDA94 0 -90 39
Farrelly PHAC2038 742412 5987239 108 54 GDA94 0 -90 39
Farrelly PHAC2039 744422 5988332 102 54 GDA94 0 -90 39
Farrelly PHAC2040 744268 5988359 102 54 GDA94 0 -90 39
Farrelly PHAC2041 744073 5988394 103 54 GDA94 0 -90 39
Farrelly PHAC2042 743878 5988426 103 54 GDA94 0 -90 39
Farrelly PHAC2043 743674 5988464 103 54 GDA94 0 -90 39
Farrelly PHAC2044 743485 5988495 102 54 GDA94 0 -90 39
Farrelly PHAC2045 743283 5988530 102 54 GDA94 0 -90 39
Farrelly PHAC2046 743081 5988565 102 54 GDA94 0 -90 39
Farrelly PHAC2047 744619 5988302 102 54 GDA94 0 -90 39
Farrelly PHAC2048 745630 5988126 103 54 GDA94 0 -90 39
Farrelly PHAC2049 745405 5988166 102 54 GDA94 0 -90 39
Farrelly PHAC2050 745210 5988198 102 54 GDA94 0 -90 39
Farrelly PHAC2051 745019 5988230 102 54 GDA94 0 -90 39
Farrelly PHAC2052 744818 5988268 102 54 GDA94 0 -90 39
Farrelly PHAC2053 743048 5984836 113 54 GDA94 0 -90 39
Farrelly PHAC2054 742851 5984867 113 54 GDA94 0 -90 39
Farrelly PHAC2055 742648 5984897 113 54 GDA94 0 -90 39
Farrelly PHAC2056 742456 5984931 113 54 GDA94 0 -90 39
Farrelly PHAC2057 742255 5984958 115 54 GDA94 0 -90 39
Farrelly PHAC2058 742067 5984984 115 54 GDA94 0 -90 39
Farrelly PHAC2059 741864 5985021 116 54 GDA94 0 -90 39
Farrelly PHAC2060 741671 5985055 116 54 GDA94 0 -90 39
Farrelly PHAC2061 741475 5985082 116 54 GDA94 0 -90 39
Farrelly PHAC2062 741997 5986638 109 54 GDA94 0 -90 39
Farrelly PHAC2063 742047 5986625 109 54 GDA94 0 -90 39
Farrelly PHAC2064 742153 5986599 109 54 GDA94 0 -90 39

Falcon Metals Limited

ASX: FAL

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Prospect Easting Northing RL Azimuth Dip Depth
Hole ID Zone Grid
(m) (m) (m) UTM (°) (°) (m)
Farrelly PHAC2065 742251 5986591 109 54 GDA94 0 -90 39
Farrelly PHAC2066 742354 5986562 109 54 GDA94 0 -90 39
Farrelly PHAC2067 742455 5986545 109 54 GDA94 0 -90 39
Farrelly PHAC2068 742547 5986531 109 54 GDA94 0 -90 39
Farrelly PHAC2069 742501 5986951 108 54 GDA94 0 -90 39
Farrelly PHAC2070 742756 5987320 107 54 GDA94 0 -90 39
Farrelly PHAC2071 742862 5987302 107 54 GDA94 0 -90 39
Farrelly PHAC2072 742830 5987105 107 54 GDA94 0 -90 39
Farrelly PHAC2073 742806 5986936 107 54 GDA94 0 -90 39
Farrelly PHAC2074 744838 5991856 97 54 GDA94 0 -90 39
Farrelly PHAC2075 745009 5991829 96 54 GDA94 0 -90 39
Farrelly PHAC2076 745704 5991707 96 54 GDA94 0 -90 39
Farrelly PHAC2077 745926 5991672 96 54 GDA94 0 -90 39
Farrelly PHAC2078 742245 5986183 110 54 GDA94 0 -90 39
Farrelly PHAC2079 742370 5986380 110 54 GDA94 0 -90 39
Farrelly PHAC2080 742563 5986338 110 54 GDA94 0 -90 39
Farrelly PHAC2081 742428 5986153 110 54 GDA94 0 -90 39
Farrelly PHAC2082 742180 5986403 109 54 GDA94 0 -90 39
Farrelly PHAC2083 742039 5986217 110 54 GDA94 0 -90 39

Falcon Metals Limited

ASX: FAL

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APPENDIX 2: Farrelly Prospect significant aircore drill intersections (>1% THM)

Hole ID From To Interval
THM >1mm <38um
(m) (m) (m)
PHAC1993 11 25 14 8.8% 17.0% 34.2%
incl. 17 24 7 16.2% 21.7% 33.4%
that also incl. 19 20 1 20.6% 20.2% 32.6%
PHAC1994 9 12 3 1.5% 10.3% 33.1%
and 15 27 12 9.9% 11.3% 39.5%
incl. 17 25 8 13.2% 14.0% 37.7%
that also incl. 18 24 6 15.1% 14.6% 36.5%
PHAC1995 10 34 24 5.6% 11.1% 40.9%
incl. 17 28 11 10.5% 14.3% 38.5%
that also incl. 19 25 6 14.6% 15.8% 40.0%
PHAC1996 11 30 19 8.5% 11.3% 40.3%
incl. 15 28 13 11.5% 11.9% 39.5%
that also incl. 16 24 8 13.9% 16.2% 37.9%
PHAC1997 10 27 17 9.3% 12.9% 37.8%
incl. 14 25 11 13.5% 16.4% 34.6%
that also incl. 14 21 7 17.7% 25.0% 32.1%
containing 16 19 3 21.8% 31.8% 28.5%
PHAC1998 6 9 3 2.1% 7.0% 19.1%
and 10 11 1 12.3% 29.0% 24.1%
and 14 24 10 9.2% 8.7% 47.9%
incl. 17 23 6 13.6% 8.3% 39.4%
that also incl. 17 22 5 15.1% 9.4% 39.1%
PHAC1999 Results Pending
PHAC2000 Results Pending
PHAC2001 10 19 9 10.4% 19.0% 31.1%
incl. 12 19 7 12.6% 21.3% 32.1%
that also incl. 13 17 4 16.9% 23.0% 31.4%
containing 14 15 1 23.8% 17.5% 33.7%
PHAC2002 10 20 10 3.2% 20.6% 31.5%
incl. 12 13 1 6.8% 43.3% 22.0%
PHAC2003 13 14 1 1.0% 4.1% 54.8%
PHAC2004 13 15 2 1.4% 15.5% 28.0%
and 16 18 2 4.7% 18.5% 30.2%
PHAC2005 14 19 5 2.4% 19.7% 37.7%
PHAC2006 12 14 2 1.6% 13.3% 32.4%
PHAC2008 11 13 2 1.1% 0.8% 38.9%
PHAC2009 14 24 10 2.3% 11.5% 39.9%
PHAC2010 12 16 4 6.9% 24.0% 36.7%
incl. 12 15 3 8.5% 31.8% 30.5%

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Hole ID From To Interval
THM >1mm <38um
(m) (m) (m)
that also incl. 12 13 1 10.1% 46.3% 23.8%
PHAC2011 15 20 5 1.9% 12.4% 39.0%
PHAC2012 12 13 1 1.3% 12.0% 43.9%
PHAC2013 5 8 3 6.0% 22.9% 33.3%
incl. 5 7 2 8.2% 31.9% 32.5%
that also incl. 5 6 1 10.5% 38.4% 27.3%
PHAC2014 6 9 3 4.6% 25.6% 38.0%
incl. 6 7 1 5.4% 30.5% 39.3%
and 13 21 8 2.9% 8.9% 36.7%
incl. 16 18 2 5.1% 9.1% 36.1%
PHAC2016 12 14 2 1.8% 0.3% 37.4%
PHAC2017 7 10 3 1.3% 9.8% 44.8%
PHAC2018 9 17 8 2.1% 7.2% 43.3%
PHAC2019 8 13 5 1.7% 4.8% 37.3%
PHAC2020 3 5 2 1.3% 2.2% 23.9%
and 11 15 4 1.4% 5.4% 38.1%
PHAC2021 10 12 2 2.7% 18.4% 30.4%
PHAC2022 15 17 2 1.1% 0.5% 37.9%
PHAC2024 20 32 12 11.1% 7.2% 44.9%
incl. 21 30 9 13.8% 9.2% 40.3%
that also incl. 22 28 6 17.2% 12.8% 40.5%
containing 27 28 1 22.1% 6.3% 45.5%
PHAC2025 20 30 10 8.2% 7.5% 45.5%
incl. 21 28 7 10.6% 9.0% 43.0%
that also incl. 23 26 3 14.5% 13.0% 39.4%
PHAC2026 Results Pending
PHAC2027 Results Pending
PHAC2028 15 16 1 1.1% 4.1% 26.0%
and 21 29 8 12.4% 11.7% 41.3%
incl. 21 27 6 15.9% 15.2% 36.7%
that also incl. 25 26 1 20.8% 12.2% 41.1%
PHAC2029 11 12 1 1.3% 9.4% 22.7%
and 15 16 1 1.4% 16.2% 22.5%
and 21 29 8 9.9% 11.7% 46.8%
incl. 21 25 4 17.8% 21.4% 34.6%
that also incl. 22 23 1 25.0% 21.3% 35.1%
PHAC2030 9 27 18 9.5% 15.0% 34.1%
incl. 13 24 11 14.8% 20.7% 34.5%
that also incl. 14 24 10 15.5% 21.1% 34.3%
containing 16 18 2 23.1% 30.2% 28.9%
PHAC2031 8 13 5 1.5% 9.2% 28.3%

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Hole ID From To Interval
THM >1mm <38um
(m) (m) (m)
and 16 28 12 8.2% 13.7% 37.8%
incl. 18 24 6 14.2% 23.5% 30.2%
that also incl. 18 23 5 15.1% 26.5% 29.4%
PHAC2032 8 12 4 1.3% 6.3% 23.2%
and 15 32 17 6.9% 11.2% 42.9%
incl. 20 28 8 11.8% 13.2% 39.5%
that also incl. 22 27 5 14.4% 13.4% 38.1%
PHAC2033 8 9 1 1.1% 1.0% 18.7%
and 16 31 15 9.5% 8.5% 46.9%
incl. 17 27 10 13.2% 12.5% 37.6%
that also incl. 18 24 6 16.7% 13.7% 37.6%
PHAC2035 7 8 1 1.2% 0.2% 25.0%
and 22 26 4 1.7% 0.2% 38.2%
PHAC2036 17 18 1 1.8% 1.8% 34.5%
PHAC2037 8 31 23 4.6% 12.8% 40.8%
incl. 18 25 7 10.4% 16.4% 40.5%
that also incl. 21 25 4 12.3% 16.5% 40.1%
PHAC2038 7 8 1 1.0% 2.2% 21.2%
and 11 15 4 1.7% 8.4% 19.8%
and 18 32 14 3.7% 11.5% 37.5%
incl. 22 28 6 5.0% 15.4% 34.5%
PHAC2039 9 10 1 1.0% 0.6% 30.2%
and 14 19 5 1.4% 2.3% 20.9%
PHAC2040 12 19 7 2.6% 22.9% 26.5%
PHAC2041 10 11 1 2.4% 0.7% 28.8%
PHAC2042 12 22 10 5.9% 10.7% 36.1%
incl. 17 21 4 12.7% 21.1% 31.2%
that also incl. 17 20 3 14.9% 25.9% 30.3%
PHAC2043 14 26 12 5.5% 11.4% 38.6%
incl. 15 16 1 5.5% 39.4% 21.6%
incl. 19 24 5 10.7% 15.1% 41.8%
PHAC2044 8 10 2 1.6% 10.2% 30.0%
and 13 25 12 4.5% 12.9% 38.6%
incl. 18 22 4 8.6% 21.0% 37.0%
that also incl. 20 21 1 10.2% 20.0% 40.4%
PHAC2045 6 14 8 2.0% 1.2% 28.7%
and 18 25 7 4.1% 12.6% 41.3%
incl. 21 22 1 5.1% 9.8% 47.3%
PHAC2046 5 6 1 4.4% 1.0% 30.3%
and 11 27 16 10.6% 18.9% 39.1%
incl. 13 26 13 12.4% 20.4% 36.6%

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Hole ID From To Interval
THM >1mm <38um
(m) (m) (m)
that also incl. 13 21 8 18.3% 24.3% 37.1%
containing 14 18 4 20.2% 26.4% 36.7%
PHAC2047 14 18 4 1.5% 4.6% 28.8%
PHAC2048 22 28 6 2.1% 1.5% 27.7%
incl. 26 27 1 5.4% 0.3% 22.7%
PHAC2049 12 13 1 1.3% 33.5% 18.4%
and 17 20 3 2.0% 2.3% 39.4%
PHAC2050 15 16 1 2.0% 4.5% 27.8%
and 19 21 2 1.4% 5.2% 28.3%
PHAC2051 12 25 13 1.6% 14.2% 28.0%
incl. 16 17 1 5.8% 32.9% 24.3%
PHAC2052 7 12 5 1.4% 16.0% 23.5%
PHAC2053 Results Pending
PHAC2054 Results Pending
PHAC2055 Results Pending
PHAC2056 Results Pending
PHAC2057 21 34 13 2.6% 5.7% 40.2%
incl. 28 29 1 8.4% 70.0% 16.2%
PHAC2058 22 27 5 3.7% 5.3% 36.1%
incl. 23 24 1 5.7% 11.5% 29.8%
PHAC2059 31 33 2 1.3% 0.8% 22.4%
PHAC2060 25 27 2 1.2% 1.7% 13.7%
and 30 36 6 3.1% 2.1% 37.7%
incl. 32 35 3 4.6% 1.4% 36.1%
PHAC2061 33 34 1 1.0% 0.5% 24.1%
PHAC2062 6 32 26 8.9% 11.2% 38.4%
incl. 12 32 20 11.2% 12.8% 42.1%
that also incl. 13 28 15 12.9% 16.2% 34.5%
PHAC2063 8 30 22 7.8% 12.4% 37.2%
incl. 15 28 13 11.7% 12.4% 35.9%
that also incl. 15 25 10 13.8% 15.4% 37.1%
PHAC2064 10 30 20 9.0% 12.4% 40.4%
incl. 15 28 13 12.6% 14.2% 41.4%
that also incl. 17 26 9 14.9% 16.3% 38.2%
PHAC2065 12 13 1 1.2% 18.7% 24.0%
and 16 29 13 9.8% 11.9% 38.3%
incl. 16 25 9 12.9% 16.6% 35.1%
PHAC2066 9 25 16 6.7% 12.6% 34.3%
incl. 17 23 6 15.0% 16.4% 36.0%
PHAC2067 16 30 14 9.8% 14.0% 39.4%
incl. 17 26 9 13.4% 20.4% 34.4%

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Hole ID From To Interval
THM >1mm <38um
(m) (m) (m)
that also incl. 18 26 8 14.1% 20.8% 34.6%
containing 19 20 1 21.3% 25.7% 30.1%
PHAC2068 16 27 11 14.1% 29.0% 32.1%
incl. 17 27 10 14.8% 28.6% 32.1%
that also incl. 25 26 1 22.0% 11.0% 40.5%
PHAC2069 12 14 2 1.5% 12.6% 32.6%
and 17 26 9 3.1% 11.8% 43.6%
incl. 21 24 3 5.8% 15.7% 34.5%
PHAC2070 19 26 7 3.5% 10.1% 37.7%
PHAC2071 13 25 12 2.9% 5.8% 35.2%
PHAC2072 13 26 13 5.4% 12.7% 39.5%
incl. 16 23 7 7.9% 19.1% 37.5%
that also incl. 22 23 1 10.3% 14.8% 36.2%
PHAC2073 8 30 22 9.2% 12.8% 38.9%
incl. 15 29 14 13.9% 18.9% 37.3%
that also incl. 16 28 12 15.1% 17.5% 36.9%
containing 21 24 3 20.3% 11.9% 38.9%
PHAC2074 10 13 3 4.7% 1.8% 31.9%
incl. 10 12 2 5.7% 1.2% 29.2%
PHAC2075 8 16 8 6.4% 18.6% 38.7%
incl. 9 13 4 10.6% 31.8% 29.5%
that also incl. 9 12 3 11.6% 38.2% 27.7%
PHAC2078 24 25 1 1.2% 0.6% 37.0%
PHAC2079 16 17 1 1.1% 9.4% 26.1%
and 23 25 2 1.1% 0.5% 51.8%
PHAC2080 Results Pending
PHAC2081 Results Pending
PHAC2082 19 31 12 8.5% 12.3% 41.9%
incl. 21 30 9 10.5% 13.6% 40.8%
that also incl. 23 26 3 14.5% 19.7% 33.7%
PHAC2083 Results Pending

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APPENDIX 3: JORC Table 1 – Pyramid Hill – Mineral Sands

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 aircore samples were collected every metre.
channels, random chips, or specific A rotary splitter attached to the cyclone was used to collect
specialised industry standard measurement a representative sample of each interval drilled into a calico
tools appropriate to the minerals under bag with the remainder of the sample collected in a green
investigation, such as down hole gamma plastic bag and retained.
sondes, or handheld XRF instruments, etc). A handful of sample from each interval was panned to
These examples should not be taken as estimate THM% and SLIMES% by the rig geologist.
limiting the broad meaning of sampling. Based on the results of the panning sample intervals were
Include reference to measures taken to selected.
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- The Aircore drilling was completed by Bostech Drilling
hole hammer, rotary air blast, auger, Bangka, Australia using face sampling blade bits with a diameter of
sonic, etc) and details (eg. core diameter, 85mm
triple or standard tube, depth of diamond NQ diameter drill rods were used
tails, face-sampling bit or other type, All holes drilled vertically
whether core is oriented and if so, by what Aircore is considered a standard industry technique for
method, etc). heavymineral sand exploration.
Drill sample recovery
Method of recording and assessing core and Aircore samples were recorded as wet or dry, and samples
chip sample recoveries and results assessed. with low recovery were recorded.
Measures taken to maximise sample Geologists were checking for any signs of downhole
recovery and ensure representative nature of contamination, and this was noted.
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 The aircore chips were logged and sampled from the field
geologically and geotechnically logged to a base
level of detail to support appropriate Mineral
The samples were qualitatively logged via digital entry into
Resource estimation, mining studies and a Microsoft Excel spreadsheet.
metallurgical studies. The logging consisted of lithology, colour, grainsize,
Whether logging is qualitative or quantitative sorting, hardness, sample condition, washability, estimated
in nature. Core (or costean, channel, etc) THM% and SLIMES%. A mineral sands consultant was
photography. present during some of the logging of mineral sands.
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 Field duplicates were collected every 40thsample for the
techniques and quarter, half or all core taken. mineral sands aircore drilling.
sample preparation 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 beingsampled.
Quality of assay data The nature, quality and appropriateness of For the aircore drilling 1m samples were routinely collected
and laboratory tests the assaying and laboratory procedures used of all the zones with mineral sands identified from panning.
and whether the technique is considered Field duplicates were collected every 40thsample for the
partial or total. mineral sands aircore drilling.
For geophysical tools, spectrometers, Field standards were collected every 40thsample for the
handheld XRF instruments, etc, the mineral sands drilling.
parameters used in determining the analysis Samples were submitted to Diamantina
including instrument make and model, Samples were transported to Diamantina laboratory for
reading times, calibrations factors applied assaying.
and their derivation, etc. Diamantina is considered to be a mineral sands industry
Nature of quality control procedures adopted leading laboratory.
(eg. standards, blanks, duplicates, external Samples were weighed by Diamantina laboratory on arrival.
laboratory checks) and whether acceptable The laboratory sample was dried for up to 24 hours @ 105
levels of accuracy (ie. lack of bias) and – 110 degrees Celsius.
precision have been established. The sample was loosened until friable and passed through a
rotary splitter to take 250 g sub-sample.
This sub-sample is then wet screened on a Sweco vibrating
screen deck at a top aperture of 1 mm (oversize ‘OS’) and a
bottom screen of 38 µm (SLIMES fraction).
The sand fraction containing the THM (-1 mm and +38 µm)
is then dried and a sub-split of approximately 100 g is taken
using a micro riffle splitter and used for heavy liquid
separation using funnels and a heavy liquid,
Tetrabromoethane (TBE), with a density of between 2.92
and 2.96 gcm-3 to determine total heavy mineral (THM)
content.
This is considered to be an industry standard technique.
Field duplicates and the HM standards are inserted into the
sample string at a frequency rate of 1 per 40 primary
samples.
Diamantina also completed their own internal QA/QC
checks by inserting laboratory repeats at a rate of 1 in 40
and the insertion of Standard Certified Reference Material
at a rate of 1 in 40.
Verification of The verification of significant intersections by
Significant intersections are checked by the Exploration
sampling and either independent or alternative company Manager. Significant intersections are cross-checked with
assaying personnel. the geology logged after assays are received.
The use of twinned holes. No twin holes have been drilled for comparative purposes.
Documentation of primary data, data entry Drilling at 50m spacing along one line was conducted to aid
procedures, data verification, data storage in assessing drill spacing requirements for resource drilling.
(physical and electronic) protocols. Primarydata was digitallycollected and entered via a field

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Criteria JORC Code explanation JORC Code explanation Commentary Commentary
Discuss any adjustment to assay data. Toughbook computer using in house logging codes. The
data is sent to the database manager where the data is
validated and loaded into the master database.
No adjustments have been made to the assay data
received.
Location of data Accuracy and quality of surveys used to Hole collar locations have been picked up by Falcon
points locate drill holes (collar and down-hole employees using a handheld GPS with a +/- 3m error.
surveys), trenches, mine workings and other The grid system used for the location of the drill holes is
locations used in Mineral Resource MGA_GDA94 (Zone 54).
estimation. RL data have been assigned from 10m DEM satellite data.
Specification of the grid system used.
Qualityand adequacyof topographic control.
Data spacing and Data spacing for reporting of Exploration Spacing of the aircore drilling varies. This was generally
distribution Results. 200m spacing. In some case some holes were tightened to
Whether the data spacing and distribution is 100m spacing if additional geological data was required
sufficient to establish the degree of from certain locations. Along a particular high grade zone
geological and grade continuity appropriate the drill spacing was tightened to 50m spacing so that this
for the Mineral Resource and Ore Reserve can be assessed to determine an appropriate spacing for
estimation procedure(s) and classifications resource drilling in the future.
applied. The current spacing is not considered sufficient to assume
Whether sample compositing has been any geological or grade continuity of the results intersected.
applied. No sample compositinghas been applied.
Orientation of data in
Whether the orientation of sampling Drilling was all vertical and is not considered to introduce
relation to geological achieves unbiased sampling of possible any sampling bias.
structure structures and the extent to which this is Drilling was conducted along existing roads and in
known, considering the deposit type. paddocks.
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 are stored on site and were shipped to Diamantina
security. bya freight agent.
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
Mineral tenement Type, reference name/number, location and
Drilling was carried out within EL006864. This licence
and land tenure ownership including agreements or material is wholly owned by Falcon Gold Resources Pty Ltd, a
status issues with third parties such as joint ventures, wholly owned subsidiary of Falcon Metals Limited
partnerships, overriding royalties, native title with no known encumbrances.
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
Mineral Sands exploration over the areas investigated
other parties by other parties. by Falcon was completed by several companies:
Reef Oil in 1973 defined the Gredgwin Prospect in
the area to the south of Woolshed swamp in
EL006864 to the north west of Farrelly Prospect
Aberfoyle Resources Limited identified mineral sands
in an area to the southwest of Terrappee Swamp in
the late 1980’s centred on Wrights Rd.
CRA drilled the area around the Farrelly Prospect on a
coarse spacing targeting a very large WIM style
deposit and results were not considered worthy of
follow up.
Geology Deposit type, geological setting and style of The mineralisation being explored for is either strand
mineralisation. deposits or WIM style within the globally significant
MurrayBasin Perilla and Loxton sands.
Drill hole A summary of all information material to the
Refer Appendices
Information understanding of the exploration results
All mineralisation >1%THM is reported in the
including a tabulation of the following Appendices.
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
A length-weighted averaging technique has been
methods averaging techniques, maximum and/or applied where necessary to produce all displayed and
minimum grade truncations (eg. cutting of tabulated drill intersections. In Appendix tables and
high grades) and cut-off grades are usually figures, results are calculated using either a minimum
Material and should be stated. 1%THM with higher grade zones defined by a
Where aggregate intercepts incorporate short minimum 5% , 10% and 20% and max 2m internal
lengths of high-grade results and longer dilution.
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
The relationship between mineral sands vertical
between in the reporting of Exploration Results. drilling and true width is close because these deposits
mineralisation If the geometry of the mineralisation with are generally horizontal in nature.
widths and respect to the drill hole angle is known, its
Downhole lengths are reported.
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 AC drilling are displayed in the
and tabulations of intercepts should be figures in the announcement.
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.
Balanced reporting Where comprehensive reporting of all
Only results above 1% THM have been tabulated in
Exploration Results is not practicable, this announcement. The results are considered
representative reporting of both low and high representative with no intended bias.
grades and/or widths should be practiced to
avoid misleading reporting of Exploration
Results.
Other substantive Other exploration data, if meaningful and
Only THM% is reported in this announcement.
exploration data material, should be reported including (but not Additional test work is planned and will be reported
limited to): geological observations; once available.
geophysical survey results; geochemical survey
results; bulk samples – size and method of
treatment; metallurgical test results; bulk
density, groundwater, geotechnical and rock
characteristics; potential deleterious or
contaminatingsubstances.
Further work The nature and scale of planned further work
Additional AC drilling is required to define the size
(eg. tests for lateral extensions or depth and grade of the Farrelly Prospect.
extensions or large-scale step-out drilling).
Zones where mineralisation is open are shown on
Diagrams clearly highlighting the areas of the maps and sections provided.
possible extensions, including the main
Mineralogical analysis and metallurgical test work is
geological interpretations and future drilling ongoing.
areas, provided this information is not
commerciallysensitive.

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