JINDALEE LITHIUM LIMITED — Capital/Financing Update 2021

Jul 20, 2021

ASX RELEASE 21 July 2021 ASX: JRL

JINDALEE COMMENCES DRILLING AT CLAYTON NORTH

• Diamond drill program designed to follow up anomalous lithium from surface samples at Clayton North

• Clayton North is located in Nevada, 22km from the only lithium producing operation in the USA

• Studies and permitting ongoing and on track at McDermitt

Jindalee Resources Limited ( Jindalee , the Company ) is pleased to announce drilling has commenced at its 100% owned Clayton North project located in Nevada, US (Figure 1). The program is designed to follow up anomalous lithium results from surface sampling undertaken by Jindalee in 2018 where results of up to 930ppm Li were detected at surface[1] .

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Figure 1.Diamond drill rig at Clayton North

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The Clayton North area hosts lithium-bearing sediments of the Tertiary Esmeralda Formation. The unit outcrops in the south-east of the claim and is interpreted to strike north-west under thin cover. Up to 12 drill holes have been approved on this exploration permit (Figure 2) to test the thickness of the cover and the lithium-bearing sediments, with the final number of holes dependent on visual results in the field. Drilling is expected to take approximately 3 weeks with first assays anticipated by early October 2021.

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Figure 2. Plan view of the Clayton North claims with surface sampling results

Background

Jindalee Resources has two 100% owned lithium projects in the United States: McDermitt and Clayton North. The discovery of extensive mineralisation in the first drill program at McDermitt in 2018 has seen Jindalee focus on resource definition activities at the project, culminating in announcing a significant Indicated and Inferred Mineral Resource of 1.43Bt @ 1,320ppm Li for a total 10.1Mt of Lithium Carbonate Equivalent (LCE) at a 1,000ppm Li cut-off grade[2] in April 2021.

Clayton North is located approximately 22km north of Albemarle’s (NYSE: ALB) Silver Peak brine operations, currently the only producing lithium mining operation in the United States (Figure 3). Jindalee pegged the mineral claims at Clayton North following a reconnaissance field trip in 2018.

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A combination of auger and composited rock chip samples were taken at the Clayton North project, confirming sediment hosted lithium mineralisation in weathered surface materials[1] . This will be the first time the project potential will be tested by drilling.

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Figure 3. Location map of Clayton North in relation to Albermarle’s Silver Peak operation

In addition, Jindalee advises that McDermitt studies and drill permitting are ongoing, with no significant delays expected at this time. All elements of the technical study are coming together with several options are being considered for the flowsheet by the process engineering team.

Authorised for release by the Board of Jindalee Resources Limited.

For further information please contact:

LINDSAY DUDFIELD KAREN WELLMAN Executive Director Chief Executive Officer T: + 61 8 9321 7550 T: + 61 8 9321 7550 E: enquiry@jindalee.net E: enquiry@jindalee.net

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About Jindalee

Jindalee Resources Limited (ASX: JRL) is an exploration company with direct and indirect exposure to lithium, gold, base and strategic metals, iron ore, uranium and magnesite through projects generated by the Company’s technical team. Jindalee has a track record of rewarding shareholders, including priority entitlements to several successful IPO’s and payment of a special dividend.

Jindalee’s strategy is to acquire prospective ground, add value through low-cost exploration and, where appropriate, either introduce partners to assist in funding further progress, or fund this activity via a dedicated company in which Jindalee retains a significant interest.

At 31 March 2021 Jindalee held cash and marketable securities worth approximately $12.7M[3. ] This funding, combined with the Company’s tight capital structure (only 53.4M shares on issue), provides a strong base for advancing projects currently held by Jindalee and leveraging into new opportunities.

References:

Additional details including JORC 2012 reporting tables, where applicable, can be found in the following releases lodged with ASX and referred to in this announcement:

1. Jindalee Resources ASX announcement 8/06/2018: “Jindalee acquires US Lithium Project at Clayton North”.

2. Jindalee Resources ASX announcement 08/04/2021: “McDermitt Lithium Project confirmed as largest in USA”.

3. Jindalee Resources ASX Announcement 29/04/2021: “Quarterly Activities and Cashflow Report”.

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 Lindsay Dudfield and Mrs Karen Wellman. Mr Dudfield is consultant to the Company and a Member of the Australasian Institute of Mining and Metallurgy and the Australian Institute of Geoscientists. Mrs Wellman is an employee of the Company and a Member of the Australasian Institute of Mining and Metallurgy. Both Mr Dudfield and Mrs Wellman have sufficient experience relevant to the styles of mineralisation and types of deposits under consideration, and to the activity being undertaken, to qualify as Competent Persons as defined in the 2012 Edition of the ‘Australasian Code for Reporting of Exploration Results, Minerals Resources and Ore Reserves.’ Mr Dudfield and Mrs Wellman consent to the inclusion in this report of the matters based on this information in the form and context in which it appears.

Forward-Looking Statements

This document may contain certain forward-looking statements. Forward-looking statements include but are not limited to statements concerning Jindalee Resources Limited’s (Jindalee’s) current expectations, estimates and projections about the industry in which Jindalee operates, and beliefs and assumptions regarding Jindalee’s future performance. When used in this document, the words such as “anticipate”, “could”, “plan”, “estimate”, “expects”, “seeks”, “intends”, “may”, “potential”, “should”, and similar expressions are forward-looking statements. Although Jindalee believes that its expectations reflected in these forward-looking statements are reasonable, such statements are subject to known and unknown risks, uncertainties and other factors, some of which are beyond the control of Jindalee and no assurance can be given that actual results will be consistent with these forward-looking statements.

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