IRON BEAR RESOURCES LTD — Capital/Financing Update 2022

Dec 27, 2022

ASX Announcement

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28 December 2022

Further Consolidation of Key Nickol River Gold Tenement

Cyclone Metals Limited (ASX: CLE ) ( Cyclone or the Company ) is pleased to advise that a key tenement, P47/1812, has been acquired, at the 100% owned Nickol River Gold Project (Image 1), located 10km east of Karratha in the West Pilbara of Western Australia.

Highlights

• Acquisition of P47/1812, now creates a contiguous block of tenements in the central Nickol River gold project area, where test pitting has successfully recovered coarse gold[1]

• The consolidation increases the targets for a maiden drill program, based on an earlier Cyclone initiated Sub Audio Magnetics (SAM) geophysical survey.

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Figure 1: Nickol River Project, acquisition of central key tenement P47/1812 to consolidate area for proposed drilling program.

The acquisition of P47/1812 consolidates the central drilling target area that includes contiguous tenements M47/401, M47/421 and M47/577. The consolidated area at Nickol River covers the original GML’s (GoldMining Leases) owned by Kerry Harmanis’s, Sir Samuel Mines NL, and included in their prospectus, which later was renamed Jubilee Mines NL.

The recent pitting program indicated that this central target area represents the first target area for the maiden drill program. All the test pits were over historically prospected and worked ground, with ASX: CLE recovered gold thought to be a small indication of the eluvial gold found over 140 years.

1 See ASX News Releases “Completion of Test Pit Program on the Nickol River Project” 10 October 2022

ASX Announcement 28 December 2022

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The most pleasing aspect of the pit program was the extensive reef structures that were uncovered. Only a few reef systems are visible from the surface and we believe that a drilling program utilising information from the SAM survey (Figure 2) and the tests pits, can define the primary gold mineralisation.

Commenting on the acquisition, Cyclone Metals Director Will Scott said:

“It is with great pleasure I confirm that the acquisition of P47/1812 gives Cyclone Metals the opportunity to design a robust drill program over the central portion of the project area utilising the information from the test pit program and the Sub-Audio Magnetics interpretation from Southern Geoscience Consultants, and we hope the drills will be turning soon”

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Figure 2: Sub-Audio Magnetics (SAM) Data from Gap Geophysics Australia, showing increased anomalies.

The proposed drilling program will focus on tenements M47/401, 421, 577 and P47/1812 (Figure 3) with the aim of testing the reef system to a depth of a maximum of 100 metre.

A Program of Work (POW) will be submitted shortly to DMIRS.

Cyclone Metals Limited ASX: CLE

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ASX Announcement 28 December 2022

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Figure 3 : Showing first leases to be targeted for the inaugural drilling program.

Acquisition Terms

The Company will issue 60,000,000 fully paid ordinary shares at a deemed issue price of $0.002 per share and 30,000,000 unlisted options with an exercise price of $0.003 each expiring 2 years from the date of issue to Stonefield Developments Pty Ltd for the acquisition of lease number P47/1812.

Securities will be issued under the Company’s existing placement capacity under Listing Rule 7.1.

Completion of the acquisitions is conditional upon conditions considered customary for a transaction of this nature.

This announcement has been approved by the Company’s board of directors.

Yours faithfully Cyclone Metals Limited

Terry Donnelly Non-Executive Chairman

Cyclone Metals Limited ASX: CLE

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ASX Announcement 28 December 2022

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For further information please contact:

Investor Relations +61 (0) 8 9380 9555 ir@cyclonemetals.com

Follow us @cyclonemetals cyclone-metals

Competent Persons Statement

The Information in this report that relates to exploration results, mineral resources or ore reserves is based on information compiled by Mr Edward Mead, who is a Member of the Australasian Institute of Mining and Metallurgy. Mr Mead is a consultant to the company and employed by Doraleda Pty Ltd. Mr Mead has sufficient experience which is relevant to the style of mineralisation and type of deposits under consideration and to the activity that 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’ (the JORC Code). Mr Mead consents to the inclusion of this information in the form and context in which it appears in this report

Cyclone Metals Limited ASX: CLE

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ASX Announcement 28 December 2022

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JORC Code, 2012 Edition – Table 1 SECTION 1 SAMPLING TECHNIQUES AND DATA

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

	Criteria		Commentary	Commentary
	Sampling	•	No sampling
	techniques
	Drilling	•	Drilling not being reported.
	techniques
	Drill sample	•	No drilling undertaken.
	recovery
	Logging	•	No logging being undertaken
	Sub-sampling	•	No sub sampling.
	techniques and
	sample
	preparation
	Quality of assay	•	No assay data is being reported.
	data and
	laboratory tests
	Verification of	•	No verification sampling has	been undertaken.
	sampling and
	assaying
	Location of	•	Zone 51 (GDA 94).
	data points
	Data spacing	•	Randomly spaced test pits with coverage by metal detecting within a small defined area
	and distribution		of 20m x 10 m x 1 m deep.
		•	Not for ore resource estimation.
		•	No compositing applied.
	Orientation of data in	•	No orientation of data.
	relation to geological
	structure
	Sample security	•	No sampling being reported
	Audits or reviews	•	Data is validated upon up-loading into the master database. Any validation issues
			identified are investigatedprior to reportingof results.
SECTION 2 REPORTING OF EXPLORATION RESULTS
	(Criterialistedinthe preceding sectionalso apply to this section.)
	Criteria			Commentary
	Mineral tenement and	•	M47/87, M47/401, M47/127,	M47/421 and M47/577 have a granted PoW, are in the name
	land tenure status		of D & K Corps Investments	Pty Ltd and are owned 100% by Cyclone Metals Limited
		•	The tenements are in good standing, and further extensions of term can be applied for.

Cyclone Metals Limited ASX: CLE

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ASX Announcement 28 December 2022

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Criteria		Commentary
Exploration done by other parties	•	Historic gold production is known from Nickol River through small-scale mining and dry- blowing activities, estimated production is 13kg of gold between 1900-1911.
	•	Trial mining operations at Nickol River in 1984, with a 10 tonne per hour plant tested 600
		tonnes of material, yielded a recovered grade of 0.33 grams per tonne of gold (“g/t Au”)
		and in 1985 a bigger 40 tonne per hour pilot plant processed 42,500 tonnes of material
		that yielded a recovered grade of 0.15 g/t Au.
	•	Samantha Exploration NL completed 21 reverse circulation drillholes following trenching,
		soil sampling and mapping activities in period 1984-5. In 1989 Vince Roberts &
		Associates completed a further 22 reverse circulation drillholes. During 1990-94 Sir
		Samuel Mines NL explored the area completing extensive soil sampling programs and
		an aeromagnetics survey. In 1994 Moonstone Resources NL completed 95 RAB holes
		and 36 reverse circulation drillholes within the area.
	•	All exploration and analysis techniques conducted by the parties are considered to have
		beenappropriate giventhe available techniques at the time.
Geology	•	At Nickol River coarse gold mineralisation is thought to be present as the basal
		remnants of a supergene enriched zone developed during lateritisation, with primary
		mineralisation originally emplaced along a fault/shear zones.
	•	Gold mineralisation has more recently been identified as being associated with
		ultramafic lithologies, and quartz veins.
	•	As exploration is at an early stage at Nickol River, further work is required to determine
		the geologicalsetting and provenance ofthe goldmineralisation.
Drill hole Information	•	No drill holes being reported.
Data aggregation	•	No aggregation methods used.
methods
Relationship between	•	No mineralisation widths are being reported.
mineralisation widths
and intercept lengths
Diagrams	•	Appropriate diagrams are contained in this document.
Balanced reporting	•	Reporting of results in this report is considered balanced.
Other substantive	•	A Sub Audio Magnetics survey has been completed by Gap Geophysics and an
exploration data		interpretation is currently underway by Southern Geoscience Consultants.
	•	Cyclone Metals Ltd (Cyclone) commissioned Gap Geophysics (Gap) to carry out a sub-
		audio magnetic (SAM) survey in August 2021. The SAM survey data was acquired by Gap
		field staff and were able to use a higher frequency transmitter signal to recover TFMMIP
		data as well the TFEM data. The survey lines were planned at 100m spacing on both a
		N-S and E-W lines. During the survey a galvanic loop is used to inject current directly into
		the ground, which enables SAM to deliver high-definition Total Magnetic Intensity and
		Magnetometric Conductivity (MMC) data sets. Various filters on the MMC and other data
		produced bythe surveywereprocessed bySouthern Geoscience Consultants.
Further work	•	Plans are to undertake a maiden drilling program.

Cyclone Metals Limited ASX: CLE

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