JINDALEE LITHIUM LIMITED — Capital/Financing Update 2021

Jun 21, 2021

ASX RELEASE 22 JUNE 2021 ASX: JRL

JINDALEE CONTINUES TO ADVANCE ITS US LITHIUM ASSETS

• Drill permits submitted for McDermitt Project

• Exploration drilling at Clayton North expected to commence in July

• Metallurgical test work on McDermitt bulk samples commissioned

• McDermitt Scoping Study components progressing well

• New Exploration Manager and US Project Manager appointed

Jindalee Resources Limited ( Jindalee , the Company ) is pleased to provide the following update on developments with respect to its US lithium assets. The Company holds 100% interest in two projects in the United States: the advanced McDermitt lithium deposit in Oregon, and the Clayton North prospect in Nevada, with significant activities planned at both projects over the coming months.

McDermitt Lithium Project

In April 2021 Jindalee announced an updated Indicated and Inferred Mineral Resource at McDermitt of 1.43Bt @ 1,320ppm Li for 10.1Mt of contained Lithium Carbonate Equivalent (LCE)[1] . The Mineral Resource was estimated using a cut-off grade of 1,000ppm Li, which is considered appropriate in the context of similar projects and based on an assessment of the likelihood of future economic extraction as required by the JORC (2012) Code.

The Company confirms that it is not aware of any new information or data that materially affects the information included in this market announcement and that all material assumptions and technical parameters underpinning the estimates of mineral resources referenced in this market announcement continue to apply and have not materially changed.

Mining, engineering, and geotechnical components of a scoping study are underway, with the market to be advised of outcomes as guided by ASX and ASIC reporting frameworks in the September quarter.

In addition to the Scoping Study, drill planning for the 2021 season is well advanced with an extensive RC and diamond drill program designed to upgrade and extend the current Mineral Resource at McDermitt. The program is designed to maximise resource conversion while minimising the disturbance footprint. Drill permitting is currently with the government agencies and a drill contractor has been appointed to complete the programs, with drilling expected to commence in the September quarter.

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After successfully demonstrating the ability to upgrade lithium content by 60% through attrition scrubbing[2] , Jindalee has commissioned test work to be completed on bulk samples collected in the 2020 drill program. The test sample will consist of approximately 1,000kg of ore and will follow a staged process of attrition scrubbing, acid leaching and purification through to final production of lithium carbonate. The entire process is expected to take approximately 6 months.

The Company is also pleased to advise the additional tenements staked at McDermitt in March 2021[3] have been approved by the Bureau of Land Management (BLM). The new tenements straddle the Oregon-Nevada border and are interpreted to contain extensions of sediments hosting the lithium mineralisation at the McDermitt deposit (Figure 1).

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Figure 1. Plan of Jindalee’s McDermitt Project with new mining claims outlined in red.

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Clayton North Project

An exploration diamond drill program is planned to test Jindalee’s 100% owned Clayton North prospect. Clayton North is located 23km north of Albermarle’s Silver Peak brine operation, which is currently the only domestic source of lithium in US. Samples taken by Jindalee in 2018 confirm the presence of lithium mineralisation, with up to 930ppm Li detected at surface[4] . This drill program is the first follow up of the surface sampling results with drillholes planned to ascertain grade continuity of lithium mineralisation in fresh sediments. Drilling is expected to commence in July 2021.

US Lithium Assets – Sector Developments

The Biden Administration remain committed to their strategy for net-zero carbon emissions by 2050. The Federal Consortium for Advanced Batteries (FCAB) is a collection of US Federal agencies developing a collaborative strategy for ensuring US self-sufficiency with regards to the lithium battery supply chain. On 7 June 2021, the FCAB released the National Blueprint for Lithium Batteries with five critical goals to attain, with the first being “securing US access to raw materials by incentivising growth in safe, equitable and sustainable domestic mining ventures while leveraging partnerships with allies and partners to establish a diversified supply”[5] .

McDermitt is well placed to provide a large steady domestic supply of lithium to support the US meeting their targets for decarbonisation. To meet the increased demand requirements multiple battery factory developments have been announced or proposed in the US (Figure 2).

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Figure 2. Location of planned and operating battery factories in the United States in relation to Jindalee’s projects.

Jindalee remains actively engaged with potential North American groups and is participating in several online conferences over the coming months. All discussions are preliminary in nature and Jindalee will advise the market of any material developments as appropriate.

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New staffing appointments

With development of the McDermitt project ramping up, the Company recently secured two valuable additions to the Jindalee team.

Jindalee is pleased to announce the appointment of Mr Jimmy Thom as Exploration Manager. Mr Thom, an experienced geologist, has 15 years’ experience across project generation, brownfields exploration and resource development in Australia, Africa, and Canada. Mr Thom will primarily focus on progressing Jindalee’s WA assets, particularly the Widgiemooltha project which is highly prospective for gold, nickel, and lithium.

In addition, Jindalee has engaged Mr Paul Meyer to manage the exploration and development activities at the Company’s lithium assets in the United States. Mr Meyer is based in the US and brings a wealth of experience in both exploration geology and environmental management, which will be of great value as the Company progresses development at McDermitt.

Jindalee is delighted to welcome Jimmy and Paul to the team.

Authorised for release by the Board of Jindalee Resources Limited.

For further information please contact:

LINDSAY DUDFIELD

KAREN WELLMAN

Chief Executive Officer

Executive Director

T: + 61 8 9321 7550 T: E: enquiry@jindalee.net E:

T: + 61 8 9321 7550 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 initial 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[6] . This funding, combined with the Company’s tight capital structure (only 53.6M 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 08/04/2021: “McDermitt Lithium Deposit confirmed as largest in US”.

2. Jindalee Resources ASX announcement 22/02/2021: “More Positive Metallurgical Results from McDermitt”.

3. Jindalee Resources ASX announcement31/03/2021: “Jindalee Increases Size of McDermitt Project by 67%”.

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

5. US Department of Energy 07/06/2021: “FCAB: National Blueprint for Lithium Batteries”. https://www.energy.gov/eere/vehicles/articles/national-blueprint-lithium-batteries

6. Jindalee Resources ASX announcement 29/04/2021: “Quarterly Activities & 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.

The information in this report that relates to the Exploration Target and the Mineral Resource Estimate for the McDermitt deposit is based on information compiled by Mr. Arnold van der Heyden, who is a Member and Chartered Professional (Geology) of the Australasian Institute of Mining and Metallurgy and a Director of H&S Consultants Pty Ltd. Mr. van der Heyden has sufficient experience 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’ (JORC Code). The Company confirms that it is not aware of any new information or data that materially affects the information included in the original market announcements by Jindalee Resources Ltd (JRL) entitled: “Maiden Lithium Resource at McDermitt” released on 19 November 2019; and “McDermitt Lithium Deposit confirmed as largest in the USA” released on 8 April 2021, and, in the case of estimates of Minerals Resources, that all material assumptions and technical parameters underpinning the estimates in the relevant market announcements continue to apply and have not materially changed. To the extent disclosed above, the Company confirms that the form and context in which the Competent Person’s findings are presented has not been materially modified from the original market announcement.

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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