LIBERTY METALS LTD — Interim / Quarterly Report 2021

Jul 25, 2021

ASX/Media Announcement

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26 July 2021

June 2021 Quarterly Activities Report

Maiden Mineral Resource Estimate delivered for Mt Cattlin Gold Project, with new drilling program planned to commence in August to test larger-scale porphyry intrusive potential

Mt Cattlin Gold Project

• Maiden Mineral Resource Estimates completed for the Maori Queen and Sirdar deposits:

• Combined Indicated and Inferred Mineral Resource of 165,094t @ 3.94g/t Au for 22,940oz of contained gold.

• Excellent potential to expand both deposits down-plunge.

• Both Resources represent minor positions within a much larger porphyry intrusive complex at Mt Cattlin.

• Drilling at the newly-identified Revelation Prospect has confirmed the presence of gold and copper mineralisation predominantly within a strongly altered 30m-wide zone of sulphidic rock between 150m and 190m down-hole, with the mineralised zone remaining open along strike and at depth.

• Project-scale geological mapping and drilling indicates that all targets on the Mt Cattlin Gold Project are linked to a large centrally-located intrusive complex surrounded by a wide zone of hydrothermal alteration.

• Preparation is underway for the next phase drilling, with 6-8,000m of RC and diamond drilling scheduled to commence in August. A drill rig has been booked and a start date for drilling will be advised closer to the time.

• New drilling predominantly to assess the larger-scale porphyry potential at Mt Cattlin.

Corporate

• Capital raising launched subsequent to Quarter-end:

• First part of raising completed via a $1m share placement at 1.4c per share; and

• Further funds to be raised via a Share Purchase Plan (SPP) offered at the same price.

• Proceeds to be used to fund new phase of exploration at the Mt Cattlin Gold Project, including the upcoming drilling campaign.

Ground Floor 43 Ventnor Avenue West Perth 6005 Western Australia

Tel: (+61) 8 9322 1655 Fax: (+61) 8 9322 9144 www.trakaresources.com.au traka@trakaresources.com.au

ASX: TKL

ABN 63 103 323 173

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MT CATTLIN GOLD PROJECT

MINERAL RESOURCE ESTIMATE

During the Quarter, Traka reported (4) maiden Mineral Resource estimates for the advanced Maori Queen and Sirdar deposits at its flagship Mt Cattlin Gold Project, located immediately adjacent to Galaxy Resources’ Mt Cattlin lithium mine in the Ravensthorpe Greenstone Belt of south-west Western Australia (Figure 1).

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Figure 1. The Mt Cattlin Gold Project on a Google Earth image showing the position of the Maori Queen and Sirdar prospects and other targets within the porphyry intrusive complex geological setting.

The Mineral Resource estimates for the Maori Queen and Sirdar deposits were completed following the recent drill program. With minor additional drilling added to existing drill data, this has enabled reporting of these Mineral Resource estimates under the guidelines of the JORC (2012) Code (Table 1).

Table 1. Maori Queen and Sirdar Mineral Resource Estimates

Location	Indicated (t)	Inferred (t)	Grade (g/t Au)	Ounces Au
Maori Queen Main Lode		31,908	6.19	6,353
Sirdar	101,214		3.58	12,781
Sirdar		31,972	2.83	3,191
Sub-Total	101,214	63,880		22,940
Indicated+Inferred	165,094		3.94	22,940

Bottom cut-off grade of 1.0 g/t Au Maori Queen and 0.5 g/t Sirdar

Both Maori Queen and Sirdar have Exploration Targets associated with them, providing scope for parallel, down-plunge and/or strike extensions.

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They are also considered to be just two positions of many targets yet to be followed-up within a large porphyry intrusive complex centrally located within Traka’s tenements. The Company is encouraged by its future prospectivity.

At Maori Queen, in the immediate footwall and hanging-wall positions to the Main Lode considered in the Mineral Resource estimate, there are additional lower grade mineralised structures which the Company has outlined an Exploration Target* of 130,000 to 150,000 tonnes at a grade range of between 2.0 to 3.0g/t Au down to 120m vertical depth (Figure 2).

A further Exploration Target* of 25,000 to 35,000 tonnes at a grade range of between 5.5 to 6.5g/t Au has been outlined in the next 100m down-dip extension to the Main Lode.

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Figure 2. Cross-section view of the Maori Queen Main Lode the mineralised footwall and hanging wall lodes to it.

At Sirdar, the Company has identified extensions of mineralisation, below a shallow east-dipping pegmatite, representing an Exploration Target* of 120,000 to 160,000 tonnes at a grade range of between a 2.5 to 3.5g/t Au down-plunge over 100m vertical depth of the Mineral Resource position (Figure 3).

The key parameters used to calculate the Maori Queen and Sirdar Mineral Resource Estimates and Exploration Targets were provided in the Company’s ASX Announcement dated 22 June 2021.

• The potential quantity and grade of the Exploration Targets at Maori Queen and Sirdar is conceptual in nature. There has been insufficient exploration to estimate a Mineral Resource. It is uncertain if further exploration will result in the estimation of a Mineral Resource.

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Figure 3. Schematic view of the 1.0 g/t Au bottom cut-off mineralised model of Sirdar showing the stacked high-grade gold shoots above the east-dipping pegmatite dyke, the IP anomaly position and the drill hole intersection in drill-hole RAGD038.

EXPLORATION RESULTS

Final assays were reported from the Company’s drilling, soil geochemical sampling and geological mapping program at the Mt Cattlin Project, which was completed early in the Quarter.

The program comprised 3,182m of Reverse Circulation (RC), 586.8m of diamond drilling and 3,139 soil samples. This work followed a high-resolution aeromagnetic survey over the whole project and an IP (Induced Polarisation) geophysical survey over a third of the project (Figure 4) (1).

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Figure 4: The Mt Cattlin Gold Project showing, on an aeromagnetic image, the position of old mines and prospects, and the position areas of aeromagnetic, IP and soil geochemical surveys. The round and oval shaped red aeromagnetic features, like that at Maori Queen and Revival, are mineralised intrusives. Other untested aeromagnetic anomalies are likely to be the same.

Sirdar

High-grade assays were reported for two diamond drill-holes (RAGD038 and RAGD039) at the old Sirdar Mine, which continue to characterise this richly-mineralised body. The Sirdar mineralisation is coincident with an IP anomaly at surface which extends to depth in a north-westerly direction (2).

The near-surface intersections from the two diamond drill holes are within the drilled-out Sirdar Mine mineralised envelope. This is a zone about 150 metres in length to about 80 metres depth. These holes have provided confirmatory infill information to the historic drilling as well as structural information required for resource modelling. The results confirm the presence of high-grade gold shoots within an envelope of lower grade mineralisation. A list of the peak drillhole intersections is presented below:

Drill-hole RAGD038	4.50 metres @ 1.7 g/t Au
	including: 2.50 metres @ 2.3 g/t Au
	0.97 metres @ 5.9 g/t Au

Drill-hole RAGD039	9.20 metres @ 8.1 g/t Au
	including: 1.70 metres @ 10.2 g/t Au
	0.80 metres @ 51.3 g/t Au
	1.00 metres @ 11.3 g/t Au
	1.00 metre @ 6.78 g/t Au
	1.00 metre @ 53.6 g/t Au
	1.00 metre @ 3.13 g/t Au

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Drill-hole RAGD038 was also designed to test the IP anomaly at depth. A high-grade intersection was returned in this position well beyond the existing Sirdar mineralized envelope. The following intersection was achieved:

Drill-hole RAGD038 1.60 metres @ 19.20 g/t Au including: 0.50 metres @ 47.90 g/t Au

This intersection, plus disseminated sulphides up-hole from the intersection, account for the IP anomaly below Sirdar, however infill drilling will be required to provide the necessary details to link this mineralisation.

The assay results outlined above supported the completion of the maiden Mineral Resource estimate completed for the Sirdar deposit during the reporting period.

Maori Queen

Assay results received during the Quarter from the Maori Queen Mine continued to demonstrate the continuation of the high-grade Main Lode to depth, with highlights from the Main Lode including:

Drill-hole RAGC050	3 metres @ 2.6g/t Au
Drill-hole RAGC052	3 metres @ 7.9g/t Au
	including: 2 metres @ 11.4g/t Au
Drill-hole RAGC053	2.00 metres @ 4.50 g/t Au
	including: 1.00 metre @ 6.30 g/t Au

Collectively, the assay results confirm the presence of a steep north-west dipping narrow but high-grade gold shoot at Main Lode, open to depth with lower grade parallel mineralised structures in the footwall and hanging wall.

These assays supported the completion of the maiden Mineral Resource estimate completed for the Maori Queen deposit during the reporting period.

Maori Queen to Lone Hand line of mineralisation

The Maori Queen to Lone Hand line of mineralisation is a 1-kilometre-long shear zone with a coincident soil and resistivity anomaly along its length. The Maori Queen Mine is at the north end of the shear and the Lone Hand at the south end. Opportunities for the location of high-grade gold lodes, like that at Maori Queen, were the objective along this shear (2).

RC drillhole RAGC054 was drilled on the shear zone, 300 metres south-west from Maori Queen Mine below the old shallow prospecting pits comprising the old Maori Chief Prospect. The following peak intersection was achieved:

Drill-hole RAGC054

2.00 metres @ 4.16 g/t Au.

Another RC drillhole (RAGC056), a further 200 metres south-west from Maori Chief, returned the following peak intersection:

Drill-hole RAGC056

4.00 metres @ 20.44 g/t Au including: 1.00 metre @ 79.60 g/t Au

These drill holes results are very encouraging and support the original objective of locating other highgrade gold lodes.

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Revelation

Project-scale geological mapping and drilling indicates that the Revelation Prospect and all other targets on the Mt Cattlin Gold Project are linked to a large centrally located intrusive complex surrounded by a wide zone hydrothermal alteration.

Two RC drill-holes (RAGC058 and RAGC059) were completed on the new Revelation Prospect, which represents one of six aeromagnetic targets evident as round or oval shaped bullseye anomalies at Mt Cattlin (Figures 4, 5 and 6). These targets are a contrast to the non-magnetic shear-hosted Maori Queen type mineralisation in being better opportunities for larger scale resources (3).

Laboratory assay results confirmed the presence of gold and copper mineralisation predominantly within a strongly altered 30-metre-wide zone of sulphidic rock between 150m and 190m down-hole. The sulphide concentration, including chalcopyrite (copper sulphide), pyrite and pyrrhotite, reaches up to 15% in several narrow stringers and variably disseminated amounts down to 1% near the boundaries of and within dolerite and porphyritic rock throughout the holes.

Compilation and interpretation of the geology is still underway, but it is already clear that further drill evaluation of the mineralised zone along strike and at depth is warranted.

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Figure 5: Aeromagnetic image plan view of the Revelation Prospect showing the coincident bulls-eye (red colour) magnetic anomaly with pXRF copper soil anomaly (black contours). The new drill holes (blue dots) and Traka’s old drill holes (black dots) are shown.

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Figure 6: Cross-section through the Revelation Prospect showing drillhole RAGC058 and RAGC059 and Traka’s drillhole in 2003.

EXPLORATION – NEXT STEPS

A new drilling program is scheduled to commence at Mt Cattlin in August, comprising 6-8,000m of Reverse Circulation and diamond drilling.

A recent geological reinterpretation at Mt Cattlin has identified the presence of an extensive porphyry intrusive complex with the potential for larger-scale gold-copper discoveries.

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GORGE CREEK PROJECT

There has been no reportable activity on this project this quarter.

MUSGRAVE PROJECT

There has been no reportable activity on this project this quarter.

NEW PROJECT DEVELOPMENT

Whilst the Company is busy on its existing projects, ongoing efforts continue to be made to identify other opportunities to expand the company’s exploration portfolio.

CORPORATE

Payments to Related Parties

(as reported in Section 6 of the Appendix 5B Quarterly Cash Flow Report)

The $83,000 cash outflow for the quarter reported under Section 6.1 of the Appendix 5B Quarterly Cash Flow Report relates to:

$000 Remuneration of Managing Director 63 Director fees paid to non-executive directors 16 Reimbursement of director expenses Rent of storage space paid to company associated with a director

By authority of the Board

Patrick Verbeek

Managing Director

• (1) Traka ASX announcement 7 June 2021

• (2) Traka ASX announcement 21 April 2021

• (3) Traka ASX announcement 1 June 2021

• (4) Traka ASX announcement 22 June 2021

COMPLIANCE STATEMENT RELATING TO TRAKA’S PROJECTS

The information in this report that relates to Exploration Targets, Exploration Results, Mineral Resources or Ore Reserves is based on information compiled by Mr P Verbeek a Competent Person who is a Member of the Australasian Institute of Mining and Metallurgy and is engaged full time as the Managing Director of the Company. Mr Verbeek has sufficient experience that is relevant to the style of mineralisation and type of deposit under consideration and to the activity being undertaking 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 Verbeek consents to the inclusion in the report of the matters based on his information in the form and context in which it appears.

Rule 5.5

Appendix 5B

Mining exploration entity or oil and gas exploration entity quarterly cash flow report

Name of entity

Traka Resources Limited ABN Quarter ended (“current quarter”) 63 103 323 173 30 June 2021

Consolidated statement of cash flows	Current quarter $A’000	Year to date (12 months) $A’000
1. Cash flows from operating activities 1.1 Receipts from customers 1.2 Payments for (a) exploration & evaluation (b) development (c) production (d) staff costs (e) administration and corporate costs 1.3 Dividends received (see note 3) 1.4 Interest received 1.5 Interest and other costs of finance paid 1.6 Income taxes paid 1.7 Government grants and tax incentives 1.8 Other – Government co-funding drilling 1.9 Net cash from / (used in) operating activities	- (403) - - (62) (44) - 1 - - - 100	- (1,366) - - (115) (290) - 4 - - 21 100
	(408)	(1,646)
2. Cash flows from investing activities 2.1 Payments to acquire or for: (a) entities (b) tenements (c) property, plant and equipment (d) exploration & evaluation (e) investments (f) other non-current assets	- - - - - -	- - (3) - - -

ASX Listing Rules Appendix 5B (17/07/20) + See chapter 19 of the ASX Listing Rules for defined terms.

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Appendix 5B

Mining exploration entity or oil and gas exploration entity quarterly cash flow report

Consolidated statement of cash flows	Current quarter $A’000	Year to date (12 months) $A’000
2.2 Proceeds from the disposal of: (a) entities (b) tenements (c) property, plant and equipment (d) investments (e) other non-current assets 2.3 Cash flows from loans to other entities 2.4 Dividends received (see note 3) 2.5 Other (provide details if material) 2.6 Net cash from / (used in) investing activities	- - - - - - - -	- - - - - - - -
	-	(3)

3. Cash flows from financing activities 3.1 Proceeds from issues of equity securities (excluding convertible debt securities) 3.2 Proceeds from issue of convertible debt securities 3.3 Proceeds from exercise of options 3.4 Transaction costs related to issues of equity securities or convertible debt securities 3.5 Proceeds from borrowings 3.6 Repayment of borrowings 3.7 Transaction costs related to loans and borrowings 3.8 Dividends paid 3.9 Other (provide details if material) 3.10 Net cash from / (used in) financing activities	- - - - - - - - -	2,240 - - (114) - - - - -
	-	2,126
4. Net increase / (decrease) in cash and cash equivalents for the period
4.1 Cash and cash equivalents at beginning of period 4.2 Net cash from / (used in) operating activities (item 1.9 above) 4.3 Net cash from / (used in) investing activities (item 2.6 above) 4.4 Net cash from / (used in) financing activities (item 3.10 above)	1,005 (408) - -	120 (1,646) (3) 2,126

ASX Listing Rules Appendix 5B (17/07/20) + See chapter 19 of the ASX Listing Rules for defined terms.

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Appendix 5B

Mining exploration entity or oil and gas exploration entity quarterly cash flow report

Consolidated statement of cash flows	Current quarter $A’000	Year to date (12 months) $A’000
4.5 Effect of movement in exchange rates on cash held 4.6 Cash and cash equivalents at end of period	-	-
	597	597

5. Reconciliation of cash and cash equivalents at the end of the quarter (as shown in the consolidated statement of cash flows) to the related items in the accounts	Current quarter $A’000	Previous quarter $A’000
5.1 Bank balances 5.2 Call deposits 5.3 Bank overdrafts 5.4 Other (provide details) Term Deposits 5.5 Cash and cash equivalents at end of quarter (should equal item 4.6 above)	294 - - 303	152 - - 853
	597	1,005

6. Payments to related parties of the entity and their associates	Current quarter $A'000
6.1 Aggregate amount of payments to related parties and their associates included in item 1 83 6.2 Aggregate amount of payments to related parties and their associates included in item 2 - Note: if any amounts are shown in items 6.1 or 6.2, your quarterly activity report must include a description of, and an explanation for, such payments.	83
	-

7. 7.1 7.2 7.3 7.4 7.5 7.6	Financing facilities Note: the term “facility’ includes all forms of financing arrangements available to the entity. Add notes as necessary for an understanding of the sources of finance available to the entity. Total facility amount at quarter end $A’000 Amount drawn at quarter end $A’000 Loan facilities - - Credit standby arrangements - - Other (please specify) - - Total financing facilities - - Unused financing facilities available at quarter end Include in the box below a description of each facility above, including the lender, interest rate, maturity date and whether it is secured or unsecured. If any additional financing facilities have been entered into or are proposed to be entered into after quarter end, include a note providing details of those facilities as well.	Total facility amount at quarter end $A’000	Amount drawn at quarter end $A’000
		-	-
		-	-
		-	-
		-	-
	N/A

ASX Listing Rules Appendix 5B (17/07/20) + See chapter 19 of the ASX Listing Rules for defined terms.

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Appendix 5B

Mining exploration entity or oil and gas exploration entity quarterly cash flow report

8.	Estimated cash available for future operating activities	$A’000
8.1 8.2 8.3 8.4 8.5 8.6 8.7 8.8	Net cash from / (used in) operating activities (item 1.9) (408) (Payments for exploration & evaluation classified as investing activities) (item 2.1(d)) - Total relevant outgoings (item 8.1 + item 8.2) (408) Cash and cash equivalents at quarter end (item 4.6) 597 Unused finance facilities available at quarter end (item 7.5) - Total available funding (item 8.4 + item 8.5) 597 Estimated quarters of funding available (item 8.6 divided by item 8.3) 1.5 Note: if the entity has reported positive relevant outgoings (ie a net cash inflow) in item 8.3, answer item 8.7 as “N/A”. Otherwise, a figure for the estimated quarters of funding available must be included in item 8.7. If item 8.7 is less than 2 quarters, please provide answers to the following questions: 8.8.1 Does the entity expect that it will continue to have the current level of net operating cash flows for the time being and, if not, why not?	(408) - (408) 597 -
		597
	Yes
	8.8.2 Has the entity taken any steps, or does it propose to take any steps, to raise further cash to fund its operations and, if so, what are those steps and how likely does it believe that they will be successful?
	Yes. Since the end of the quarter, the Company has raised $1m (before costs) through a Placement of shares and has subsequently launched an SPP (currently still open) to raise additional funding.
	8.8.3 Does the entity expect to be able to continue its operations and to meet its business objectives and, if so, on what basis?
	Yes, the Company has raised sufficient capital since the quarter end to ensure it has at least an estimated 2 quarters of funding available, given the current relevant outgoings per 8.3 above.
	Note: where item 8.7 is less than 2 quarters, all of questions 8.8.1, 8.8.2 and 8.8.3 above must be answered.

Compliance statement

• 1 This statement has been prepared in accordance with accounting standards and policies which comply with Listing Rule 19.11A.

• 2 This statement gives a true and fair view of the matters disclosed.

Date: 26 July 2021................................................

Authorised by: The Board............................................................

(Name of body or officer authorising release – see note 4)

ASX Listing Rules Appendix 5B (17/07/20) + See chapter 19 of the ASX Listing Rules for defined terms.

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Appendix 5B

Mining exploration entity or oil and gas exploration entity quarterly cash flow report

Notes

1. This quarterly cash flow report and the accompanying activity report provide a basis for informing the market about the entity’s activities for the past quarter, how they have been financed and the effect this has had on its cash position. An entity that wishes to disclose additional information over and above the minimum required under the Listing Rules is encouraged to do so.

2. If this quarterly cash flow report has been prepared in accordance with Australian Accounting Standards, the definitions in, and provisions of, AASB 6: Exploration for and Evaluation of Mineral Resources and AASB 107: Statement of Cash Flows apply to this report. If this quarterly cash flow report has been prepared in accordance with other accounting standards agreed by ASX pursuant to Listing Rule 19.11A, the corresponding equivalent standards apply to this report.

3. Dividends received may be classified either as cash flows from operating activities or cash flows from investing activities, depending on the accounting policy of the entity.

4. If this report has been authorised for release to the market by your board of directors, you can insert here: “By the board”. If it has been authorised for release to the market by a committee of your board of directors, you can insert here: “By the [ name of board committee – eg Audit and Risk Committee ]”. If it has been authorised for release to the market by a disclosure committee, you can insert here: “By the Disclosure Committee”.

5. If this report has been authorised for release to the market by your board of directors and you wish to hold yourself out as complying with recommendation 4.2 of the ASX Corporate Governance Council’s Corporate Governance Principles and Recommendations , the board should have received a declaration from its CEO and CFO that, in their opinion, the financial records of the entity have been properly maintained, that this report complies with the appropriate accounting standards and gives a true and fair view of the cash flows of the entity, and that their opinion has been formed on the basis of a sound system of risk management and internal control which is operating effectively.

ASX Listing Rules Appendix 5B (17/07/20) + See chapter 19 of the ASX Listing Rules for defined terms.

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TRAKA RESOURCES LIMITED

MINERAL TENEMENT INFORMATION (ASX Listing Rule 5.3.3)

For the quarter ended 30 June 2021

Type	Tenement	Location	Registered Holding	Beneficial Interest
EA	69/2749	Musgrave, WA	0%	Note 1
E	69/3156	Musgrave, WA	0%	Note 1
E	69/3157	Musgrave, WA	0%	Note 1
EA	69/3490	Musgrave, WA	0%	Note 1
EA	69/3569	Musgrave, WA	0%	Note 1
P	74/0370	Ravensthorpe, WA	0%	Note 2
P	74/0373	Ravensthorpe, WA	0%	Note 2
E	74/0401	Ravensthorpe, WA	0%	Note 2
E	74/0636	Ravensthorpe, WA	0%	20%
EPM	26264	Gorge Creek, QLD	100%	100%
EPM	26723	Gorge Creek, QLD	100%	100%

Mining tenements and beneficial interests acquired during the quarter, and their location:

None

Mining tenements and beneficial interests disposed of during the quarter, and their location: None

Note 1: the Company retains a 2% net smelter return royalty on all minerals produced from these tenements.

Note 2: the Company holds a 100% interest in the gold and other minerals excluding pegmatite minerals.

Key:

• E: Exploration licence

• EA: Exploration licence application

• P: Prospecting licence

EPM: Exploration permit mineral