INFINITY MINING LIMITED — Interim / Quarterly Report 2022

Jan 30, 2022

31 January 2022

QUARTERLY ACTIVITIES REPORT FOR THE PERIOD ENDING 31 DECEMBER 2021

Highlights:

• Successful ASX listing on 22 December 2021 raising A$10 million (ASX Code: IMI)

• Heritage surveys completed across the Central Gold Field tenements

• Drilling completed at Great Northern historical gold mine in January 2022 (results pending)

• Soil sampling program completed at Hillside tenements in the Pilbara (results pending)

• Extension to E45/4685 (Hillside) for a further 5 years

• Completion of the IMI / Zanil / Pointon Tenement sale and Purchase Agreement

• Track access and rehabilitation work completed at Hillside

• Reconnaissance geological program planned for Panorama, Strelley Gorge, and Tambourah tenements.

Infinity Mining Limited (ASX: IMI) (“Infinity” or the “Company”) is pleased to report on its activities for the quarter ending 31 December 2021.

The Company commenced trading on the Australian Stock Exchange (“ASX”) on 22 December 2021 at 3.00pm AEDT under the ASX ticker IMI.

The IPO raised the maximum $10m (before costs) through the issue of 50 million new fully paid ordinary shares at an issue price of $0.20 per new share. As part of the Offer, the Company has also issued one attaching unlisted Option for every two Shares subscribed for, with an exercise price of $0.30 exercisable on or before 10 June 2023.

The Company’s two focus areas are:

1. Targeting gold, copper, lithium and base metals in the Pilbara region of Western Australia, and if a commercial resource is identified, to develop its Pilbara Tenements into world class mining projects; and

2. The Central Goldfields Tenements, exploration for gold mineralisation targeting historical exploration activities and gold workings. If a gold resource is viable, advance these projects into small scale mining activities.

The exploration portfolio include some 21 tenements covering over 700 square km, being:

1. The Pilbara Tenements containing 9 Exploration Licences in the Pilbara region, in addition to two Exploration Licences held by Macarthur Iron Ore in respect of which the Company holds NonIron Ore Rights; and

2. The Central Goldfields Tenements currently held by the relevant Zanil Vendor containing 7 Prospecting Licenses (two currently under conversion to Mining Leases), two granted Mining Leases and one granted Exploration Licence, situated in and around the Leonora region, some ~220 km north of Kalgoorlie.

Infinity entered into the Zanil/Pointon Sale Purchase Agreement dated 18 October 2021 with Zanil Pty Ltd (Zanil) and Alec Pointon (the Zanil Vendors) to acquire 100% of the Central Goldfields Tenements, held by the relevant Zanil Vendor which includes 7 Prospecting Licenses, two granted Mining Leases and one granted Exploration Licence, situated in and around the gold-rich Leonora region, approximately ~220 km north of Kalgoorlie.

Review of Operations

Pilbara Projects

The Pilbara Tenements comprise an extensive portfolio of gold, copper, zinc and lithium exploration tenements held by the Company and located in the geographical region known as the Pilbara in the Northwest of Western Australia ( Figure 1).

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Figure 1: Pilbara Project Location

Figure 2 shows the regional geology of the Pilbara Project tenements. Descriptions of the geology, mineralisation and exploration undertaken over the Project area are summarised by Cooper (Independent Technical Assessment Report), included in the December 2021 Infinity Prospectus.

The tenements are considered prospective for gold – including intrusive-hosted, greenstone-hosted, and conglomerate-hosted deposit types, copper and base metals, lithium, and iron ore. Cooper reports several examples of mineralisation styles including:

• Hemi (intrusive-hosted gold deposit)

• Klondyke (greenstone-hosted gold deposit)

• Purdy’s Reward (conglomerate-hosted gold deposit)

• Sulphur Springs and Kangaroo Caves (volcanic massive sulphide deposits); and

• Pegmatite-hosted lithium-tin-tantalum deposits.

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Figure 2: Pilbara tenements and regional geology

1. Hillside Gold Project

The Hillside Gold Project encompasses Exploration License E45/4685, E45/4824, E45/4708 and E45/4709 held by the Company. This group of tenements is located approximately 185 kilometres (“km”) SE of Port Hedland and 50 km SW of Marble Bar (the “Hillside Gold Project”) in Western Australia.

The Hillside Gold Project is highly prospective for gold and copper. The area has previously been explored by various companies for gold, copper, zinc and lead, but limited drilling exists.

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Figure 3[1]

The main exploration targets are gold, copper and other base metals within the north- south striking Coongan-Greenstone Belt.

1 Press Release filed 10 February 2020 by ASX: CUF, titled “Initial Drilling Results Received from the Hillside Project”.

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Strelley Gorge and Tambourah Tenements

The Strelley Gorge (E45/4735) and Tambourah tenements (E45/5324 & E45/4848) are prospective for zinc and copper (Strelley Gorge) and for Lithium (Tambourah).

In adjoining tenure south of Strelley Gorge, Venturex Resources Limited are developing their Sulphur Springs and Kangaroo Caves deposits (JORC Resource reported: 17.4Mt @ 1.3% Cu, 4.2% Zn, 17g/t Ag – see announcement here). Both the Sulphur Springs and Kangaroo Caves deposits are associated with the prospective geological contact that occurs between the Marker Chert and the underlying felsic volcanic units. The prospective geological contact that occurs between the Marker Chert and the underlying felsic volcanic units extends into the Strelley Gorge tenement.

The main exploration targets at Tambourah are lithium bearing pegmatites within the various rock types. A digital database of known mineral deposits provided by the Geological Survey of WA, Mindex, indicates a number of Li, Sn, Ta bearing pegmatites and alluvials within the Tambourah tenements.

On the 9 September 2021, Infinity transferred E45/4735 (Strelley Gorge) and E45/5324 (Tambourah) over into the Macarthur Group. Whilst Macarthur Iron Ore Pty Ltd will be the registered owner of these two tenements; Infinity retains all non-iron mineral rights on these tenements.

2. Noreena Downs

The main exploration targets at Noreena Downs are lithium bearing pegmatites within the various rock types. The Mosquito Creek Formation has been mapped by the GSWA as having folded pegmatite dykes close to the faulted contact with the Kurrana Batholith. A reconnaissance helicopter visit by the Company was conducted in 2021. There has been no relevant exploration conducted by the Company or by previous companies on the tenement.

3. Panorama

The Panorama Gold Project encompasses Exploration Licenses E45/4732, E454764 and E45/4779 held by the Company, covering a total of 252.3km2.

The Panorama Gold Project is located 265km south-south-east of Karratha in the Pilbara Region of Western Australia. The project is prospective for lithium and gold hosted within conglomerate. The tenement group contains an extensive area of the Mt Roe Basalt which is the geological member of the Fortescue Group that overlies the conglomerate gold horizon at Artemis Resources Limited’s Purdy’s Reward Project near Karratha, Western Australia.

. Another key exploration target at Panorama is conglomerate hosted gold deposits along the Mt Roe Basalt/Hardey Formation contact, as found at Artemis Resources Limited’s Purdy’s Reward.

During the last quarter a field crew visited these tenements planning for the development of access roads in and around the target areas to facilitate the 2022 field program.

Central Goldfields Projects

The Central Goldfields Tenements present multiple geological models over the tenure in and around Leonora, which are comparable to nearby gold mines, and includes the following tenements:

• Craig’s Rest, a single PL and a single EL

• Barlow’s Gully, a single PL with a ML application to replace the PL

• Coppermine, a single PL

• Chicago, a single ML

• Victor Bore, a single PL and a single ML

• Camel, a single PL

• Specking Patch, a single PL

• Great Northern Workings, a single PL with a ML application to replace the PL; and

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• These tenements hosted historical mined shallow gold workings.

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Figure 3: Projects Locations

The Central Goldfields Tenements are located in the geographical district surrounding the town of Leonora in the Central Goldfields of Western Australia (Figure 4). The tenement portfolio consists of mining leases, prospecting licences and an exploration licence, with nine of the areas located on historic gold workings. Although Barlow’s Gully, has no established mine workings, it has been subject to surface gold extraction for over 100 years and review now suggests gold is sourced locally on some layer or structure.

The key Central Goldfields Tenements include:

• Craig’s Rest which was mined prior to 1987 and subsequently subject to periodic exploration campaigns. Significant drill intersections were obtained in historical drilling and those results give evidence for potential mineralisation extensions in alluvial and eluvial covered strike extensions.

• Great Northern Workings Lease with significant gold intersections in historical drilling and recent recognised sulphide rich black shale sequence that will be targeted for VMS style mineralisation

4. Craig’s Rest

The Craig’s Rest project area is located approximately 60km north-north-west of Leonora and 40km north of the Tarmoola mine site. The close proximity of known deposits and the potentially favourable structural/geological setting within the Craig’s Rest area lends a highly prospective nature to the project.

The structural trend joining the Craig’s Rest workings with the Katalina workings is poorly tested over its 1.5km strike length, especially in the alluvial covered drainage between the workings.

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Workings at the Craig’s Rest prospect extend over a strike of some 500m and consist of several quartz veins with stock worked alteration zones up to 20m wide (See the Independent Technical Assessment Report in the Prospectus here for detail).

A new application for an Exploration Permit has recently been lodged based on recognition that the structural trend joining the Craig’s Rest workings with the Katalina workings extends westwards into the application area ( Figure 5 ). On the 19 October 2021, E37/1442 application was granted through to 19 October 2026.

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Figure 4: Craig’s Rest Project

The objectives of the Company are to:

• Further explore target previously identified gold anomalies to determine the potential for economic gold mineralisation

• Survey locations of historical drill collars to ensure best fit of the historical drill data

• Air core or RAB drilling of the structural trend joining the Craig’s Rest workings with the Katalina workings is poorly tested over its 1.5km strike length, especially in the alluvial covered drainage between the workings

• Deeper drill testing of the Craig’s Rest workings

• Aircore drilling of identified structural trend in the EL; and

• RC drilling of targets generated in the EL.

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5. Great Northern Workings

The Great Northern Workings are on a strike of approximately 80 meters long and steeply dip to the north-east. There are exposed stopes on the strike with an offset shaft on the north-east side, and an associated large mullock heap.

The objectives of the Company are to:

• carry out a compilation of existing data combining Melita’s RC drilling with the soil sampling program carried out by North Limited that defines a gold in soil anomaly that extends south-east of the Great Northern Mine working. This work has been completed and formed the basis for the current RC drilling campaign.

• survey locations of historical drill collars to enable the historical data to be included in future interpretations

• Potential exists for further vein sets at depth. A RC drilling program to a nominal depth of 100 metres at 25 metre centres was designed to test this prospect.

• On 8 January 2022, a 1000meter RC Drilling program was commenced and was completed on 14 January 2022. The results of this program have been sent for assay and should be available in early March 2022; and

• 3D modelling of the mine workings, historic drilling and 2022 drilling data will be compiled prior to any further drilling activities.

• An area of black ferruginous shale with weak but possible gossanous outcrop was identified on the tenement. An additional short program will include:

• searching for historical reports containing additional data on this occurrence, and

• undertaking geological mapping of the ferruginous shale, to be carried out with systematic rock sampling;

6. Camel Leases

Located approximately 5kms north-east of Leonora, historically this was one of the earliest leases taken up in the district.

The objectives of the Company are to:

• carry out a detailed compilation of the existing data and survey the locations of historical drill hole collars; and

• target the known workings with deeper drilling.

7. Barlow’s Gully

Barlow’s Gully is located some 40km NNW of the town of Leonora. First discovered in the late 1890s by the Morris brothers when returning from Lake Darlot to Coolgardie.

Regionally, Barlow’s Gully is located on a splay structure off the regionally significant Ursus Fault, which is considered a key gold bearing structure at the nearby +2Moz King of the Hills gold mine. The splay structure has been intruded by a felsic porphyry in the area of the Barlow’s Gully tenement. It was noted in the field that the numerous shallow gold diggings and scrapes in the tenement may follow this structure.

The objectives of the Company are to:

• carry out a geological mapping exercise locating all prospector workings and scrapes, and investigate if their source could be topographically controlled; and

• if the topographic control is supported by the mapping, carry out drill several traverses using the Aircore drilling method.

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8. Victor Bore

The Victor Bore leases are adjacent to the Kailis deposit currently being mined by Northern Star.

M37/1349 contains numerous old workings in two lines. The mine names are Lights of London, Riviera nth, Morning Lights, Coffee Pot and various others.

The objectives of the Company are to:

• Update the detailed geological mapping of the project; and

• targeted aircore drilling traverses over the two lines of workings.

9. Coppermine, Chicago and Specking Patch

No additional work has been undertaken on these areas.

New Tenement Application and Transfer of Tenements

During the period under review, all of the Pilbara tenements held by Macarthur Lithium Pty Ltd (now Infinity Mining Limited) were retained with the exception of E45/4735 and E45/5324. These two tenements were transferred to Macarthur Iron Ore Pty Ltd as part of the consolidated Macarthur Group. Infinity retains the rights to all non-iron minerals on these two tenements.

On 18 October 2021, Infinity Mining Limited entered into a Tenement Sale and Purchase Agreement with Zanil Pty Ltd and Poynton for the acquisition of the following tenement areas E37/1442, M37/1349, P37/8278, M37/1359 (pending application), M37/983, P37/8310^ M37/1360 (pending application), P37/8325, P37/8376, P37/8468, P37/8571, P37/9162. As at the date of this agreement, the title transfers were not completed as they were initially subject to a duty assessment for transfer. This assessment was finalised on the 24 December 2021 and the assessed amount paid on the 21 January 2022. There is a 7-day period post payment for the process to occur and complete. Infinity will seek the signing of the transfer documents on clearance to finalise the Purchase and Sale Agreement.

During the period, on the 19 October 2021 E37/1442 was granted.

Forward Plan

During the March Quarter 2022:

• On 11 January 2022 E45/4685 was extended for a further 5 years.

• On 16 January 2022 P37/8376 was subject to a mining application.

• • On 16 January 2022 P37/8325 was subject to a mining application.

The key target areas will be subject to further exploration: -

Leonora Goldfields tenement

1. P37/8310 (Great Northern) has had application for conversion into a Mining Lease M37/1360. The results of the January 2022 RC campaign combined with the historical drilling, will be complied into a working 3D model of the mineralisation in order to plan for further drilling.

2. P37/8278 (Barlow’s Gully) has had an application for conversion into a Mining Lease M37/1359. Plan of work has been approved for a 2000-meter Aircore drilling program across the key target areas. This program will commence in late January 2022.

3. E37/1442 (Craig’s Rest) will be subject to soil and rock chip geochemical program, as this is a new untested extension to the previous small historic mining undertaken on P37/8468. Plan of works application will be made for an aircore/RC drilling campaign later in 2022.

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Pilbara Tenements

The March quarter 2022 will see the commencement of exploration on the company’s Pilbara tenements with:

1. Return to the Hillside tenements E45/4685, E45/4708, E45/4709, E45/4824 with a 3000-meter RC drilling campaign planned to be completed in the first half of 2022.

2. Access and tenement tracks to be refreshed on E45/4732, E45/4764, E45/4779 and this will open the opportunity for detailed mapping, rock and soil sampling program. This area has never been subject to a comprehensive geological program targeting gold and base metals.

3. An assessment of the lithium potential for E45/4732, E45/4764, E45/4779, E45/4848, E46/1210 and E45/4735, E45/5324.

Corporate

Payments to related parties of the entity and their associates

In the 31 December 2021 Appendix 5B, the figure of $283,700 as disclosed in section 6.2 represents payments to Zanil Pty Ltd (an entity controlled by director Joe Groot) under a Services Agreement for exploration and evaluation services provided to the company, including staff and contractor costs associated with geological mapping soil sampling, vehicle hiring fees, travel to tenement sites and rehabilitation & construction of washed-out vehicle tracks on tenement sites.

Summary of Expenditure

• The Company’s major cashflow movements for the quarter included: • Exploration and Evaluation expenditure - $ 668,777 and

• Employee, administration and corporate costs - $ 745,963.

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Interests in Mining Tenements

In accordance with Listing Rule 5.3.3, Infinity provides the following information in relation to its tenements as at 31 December 2021:

Mining Tenement	Location	Beneficial Percentage held	Area km2	Interest acquired/farm-in or disposed/farm-out during thequarter
E37/1442	Craig’s Rest	100%	2.65	No change
M37/1349	Victor Bore	100%	0.154	No change
P37/8278^	Barlow’s Gully	100%	2.0	No change
M37/1359 (pending application)	Barlow’s Gully	P37/8278 converted to MiningLease	Under application	No change
M37/983	Chicago	100%	0.378	No change
P37/8310^	Great Northern Workings	100%	1.340	No change
M37/1360(pending application)	Great Northern Workings	P37/8310 converted to MiningLease	Under application	No change
P37/8325	Camel	100%	1.910	No change
P37/8376	Victor Bore	100%	1.800	No change
P37/8468	Craig’s Rest~	100%	1.380	No change
P37/8571	Specking Patch	100%	1.087	No change
P37/9162	Coppermine	100%	1.110	No change
E45/4685	Hillside	100%	35.03	No change
E45/4708	Hillside	100%	85.99	No change
E45/4709	Hillside	100%	70.15	No change
E45/4824	Hillside	100%	206.30	No change
E45/4732	Panorama	100%	137	No change
E45/4764	Panorama	100%	12.77	No change
E45/4779	Panorama	100%	102.57	No change
E45/4848	Tambourah	100%	3.18	No change
E46/1210	Noreena Downs	100%	44.47	No change
E45/4735*	Strelley Gorge	Non-iron ore mineral rights	11.17	No change
E45/5324*	Tambourah	Non-iron ore mineral rights	12.77	No change

^ Application submitted for conversion to Mining Lease *Tenements owned by a third-party Macarthur Iron Ore Pty Ltd ACN 081 705 651 (MIO). Infinity Mining holds rights to explore for, extract and sell all minerals, including gold, lithium and nickel, from the MIO Tenements other than iron ore (Non – Iron Ore Rights) pursuant to a Tenement Sale and Non-Iron Ore Rights Agreement dated 11 August 2021

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Use of Funds Statement

The current quarter is covered by a use of funds statement outlined in the Prospectus dated 28 October 2021. A summary of expenditure to date is outlined below. Differences are primarily due the Company only being one month into its planned two-year expenditure program:

Items of Expenditure	Per Prospectus (AUD $)	Actual Expenditure to 31 December 2021 (AUD $)	Balance Remaining (AUD $)
Exploration Expenditure
Exploration	8,461,526.00	668,777.27	7,792,748.73
Operating expenses	1,567,980.00	745,963.51	822,016.49
Working capital	357,538.00	199,915.00	157,623.00
Costs of the Offer - fundraising	611,250.00	661,000.00
Costs of the Offer – legal, accounting, other support services	501,706.00	380,555.68	121,150.32
Total uses of funds	11,500,000.00	2,656,211.46	8,843,788.54

On behalf of the Board of Directors, Mr Joe Phillips,Executive Chairman

For more information please contact: Joe Phillips Executive Chairman +61 7 3221 1796 communications@infinitymining.com.au

Investor Relations – Australia The Market Bull Stewart Walters, CEO stewart@themarketbull.com.au

Competent Persons Statement

The information contained in this report that relates to the Exploration Results and Exploration Targets is based on information compiled by Dr Matthew White, who is a Member of the Australian Institute of Geoscientists. Dr White is a Geological Consultant for Infinity Mining and has sufficient experience relevant to the style of mineralisation and type of deposit under consideration, and to the activity which he has undertaken to qualify as Competent Person as defined in the 2012 Edition of the Australasian JORC Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves. Dr White consents to the inclusion in the report of the matters based on his information in the form and context in which it appears.

JORC Reporting of Historic Exploration Results

Details of the historical exploration including previous drilling, as well as details of Infinity’s previous exploration activities and results, including JORC Table 1, sections 1 and 2 (Sampling Techniques and Data and Reporting of Exploration Results) according to the JORC Code 2012 Edition, were included in the Company’s Prospectus dated 28 October 2021, for which Mr Andrew Hawker and Mr Ian S Cooper were the Competent Persons. The Company confirms that it is not aware of any new information or data that materially affects the information included within the Prospectus dated 28 October 2021.

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Company Profile

Infinity Mining Limited (IMI) holds 100% interest on 711km2 of tenements, comprising 10 exploration licences, 2 mining leases and 7 Prospecting licences. The tenements are located in highly prospective gold-copper-lithium terranes of the Pilbara and Central Goldfields regions of Western Australia. Historically the company has spent ~$5.5M on exploration on these tenements. The business strategy moving forward is to develop near-term gold targets in the Central Goldfields, to support the longer-term investment needed to develop projects the Pilbara tenements (Lithium/Gold/Copper projects).

Caution Regarding Forward Looking Statements

Certain of the statements made and information contained in this press release may constitute forward-looking information and forward-looking statements (collectively, “forward-looking statements”) within the meaning of applicable securities laws. All statements herein, other than statements of historical fact, that address activities, events or developments that the Company believes, expects or anticipates will or may occur in the future, are forward-looking statements. The forward-looking statements in this press release reflect the current expectations, assumptions or beliefs of the Company based upon information currently available to the Company. Although the Company believes the expectations expressed in such forward-looking statements are based on reasonable assumptions, such statements are not guarantees of future performance and no assurance can be given that these expectations will prove to be correct as actual results or developments may differ materially from those projected in the forward-looking statements. Readers are cautioned not to place undue reliance on forward-looking statements due to the inherent uncertainty thereof. Such statements relate to future events and expectations and, as such, involve known and unknown risks and uncertainties. The forward-looking statements contained in this press release are made as of the date of this press release and except as may otherwise be required pursuant to applicable laws, the Company does not assume any obligation to update or revise these forward-looking statements, whether as a result of new information, future events or otherwise.

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