LIGHTNING MINERALS LTD — Interim / Quarterly Report 2023

Apr 18, 2023

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ASX Announcement

19 April 2023

QUARTERLY ACTIVITIES REPORT

FOR THE QUARTER ENDED 31 MARCH 2023

Lightning Minerals (“L1M” or “the Company”) is pleased to report its Quarterly Activities Report for the quarter ending 31 March 2023.

HIGHLIGHTS

ASX:L1M Shares on Issue 48,457,170 Performance Rights 4,800,000 Unlisted Options Outstanding 10,200,000 (exercisable at A$0.25) Listed Options Outstanding 26,728,543 Cash Position A$5.278 Million (at 31 Mar 23)

HIGHLIGHTS o Identification of lithium in soil anomalies across tenements E63/2001 and E63/2000 at Company’s Dundas project o Further pegmatite outcrops identified at Company’s Dundas project o Geophysics interpretation completed across all Dundas tenements identifying 28 target areas o Soil sampling completed across all Dundas tenements o Appointment of Jarrad Woodland as the Company’s Exploration Manager o Site visit completed by geology team to all of Company’s tenements o Loyalty options issued as outlined in IPO prospectus

Lightning Minerals Chief Executive Officer Alex Biggs said, “I congratulate the team on a successful quarter of work which has yielded excellent results and forms the basis for ongoing and accelerated exploration at the Company’s Dundas project. It is important as a company that we complete our work in a diligent and efficient manner that creates further opportunity for the Company to grow and the team has demonstrated that ability. We now look forward to further exploration and drilling on our Dundas projects in the upcoming quarter which we feel will be a major catalyst for the Company. The Dundas region as a whole is still proving to be an exciting area for a number of operators and as such it is great for us to be in such a prolific critical minerals and lithium region”.

Level 6, 505 Little Collins Street, Melbourne VIC 3000 | admin@lightningminerals.com.au | www.lightningminerals.com.au

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OPERATIONAL ACTIVITIES

DUNDAS PROJECT OVERVIEW

An extensive soil sampling campaign has now been completed across all Dundas tenements yielding a number of lithium anomalies and target areas for further exploration. Geophysical interpretation has also now been completed across all tenements yielding 28 target areas (ASX announcement 09 Feb 2023) which will be used in conjunction with soil sampling results to develop further drill targets. Further pegmatites have also been identified across the Dundas South tenements (ASX announcement 16 February 2023) as well as soil sampling assay results that have identified a number of lithium in soil anomalies (ASX announcement 23 January 2023, ASX announcement 02 March 2023 and ASX announcement 23 March 2023). The Company’s geology team also visited all Dundas project tenements in February as well as the Company’s other tenements in Western Australia (ASX announcement 16 February 2023). Further infill soil sampling via auger drilling has also been proposed to be undertaken subsequent to the quarter end on tenements E63/2000 and E63/1993 (ASX announcement 31 March 2023).

Progress at the Company’s Dundas tenements has been excellent during the quarter, defining multiple lithium anomalies and targets for follow up both through exploration drilling and infill soil sampling. The results generated throughout the quarter are an excellent foundation for the Company to complete focused exploration activities including drilling in the coming months which will provide potential as a significant catalyst for the Company. A summary of announcements during the quarter is presented below.

LITHIUM-RUBIDIUM ANOMALISM AT DUNDAS PROJECT

(ASX ANNOUNCEMENT 23 JANUARY 2023)

• Results have highlighted an approximate 2km by 2km lithium in soil anomaly (above 60ppm) on tenement E63/2001 as well as a larger rubidium soil anomaly (above 60ppm) extending to the east

• Peak assay result of 112ppm lithium, with multiple samples exceeding 60ppm

• Pathfinder results suggest potential identification of lithium-caesium-tantalum (LCT) pegmatite mineralisation

Analytical results have revealed a 2km x 2km lithium soil anomaly at >60ppm lithium, which shows a broadly northwest-southeast orientation. The lithium anomalism occurs within interpreted felsic volcanic lithologies. Within this, a coherent zone of north south trending anomalism of >100ppm lithium is present, with three contiguous samples and a peak value of 112ppm lithium as shown in Figure 1. Shallow to moderate cover is present over the majority of tenement E63/2001 and for this reason the UFF+ analytical technique that was utilised for assaying is applicable in an attempt to ‘see through’ the transported regolith profile.

Rubidium anomalism is broadly coincident with the elevated lithium values related to the interpreted felsic volcanic lithology. Two zones of anomalism above 100ppm can be seen in Figure 2 with peak rubidium values within each discreet zone of 120ppm and 135ppm.

Level 6, 505 Little Collins Street, Melbourne VIC 3000 | admin@lightningminerals.com.au | www.lightningminerals.com.au

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Figure 1: Lithium UFF+ soil anomalism >60ppm contours on Interpreted 1:100,000 GSWA interpreted geology

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Figure 2: Rubidium UFF+ soil anomalism >60ppm contours on Interpreted 1:100,000 GSWA interpreted geology

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Level 6, 505 Little Collins Street, Melbourne VIC 3000 | admin@lightningminerals.com.au | www.lightningminerals.com.au

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DUNDAS GEOPHYSICAL REVIEW

(ASX ANNOUNCEMENT 09 FEBRUARY 2023)

o Analysis of historical geophysical data has identified 28 target areas

o Targets across all tenements for a range of critical minerals

o Geophysical targets and soil geochemical data will be used as the basis for drill program planning

Southern Geoscience Consultants (SGC) were commissioned during late 2022 to complete a 1: 50,000 scale litho-structural interpretation and target generation for the greater Dundas Project. The objective of the geophysical reinterpretation was to analyse and reprocess data from historical geophysical surveys collected over the last 25 years. Modern geophysical data processing techniques may now be able to identify areas of potential prospectivity for a range of critical minerals that warrant further exploration.

The interpretative work principally focused on a detailed analysis of the aeromagnetic data, with the added context of contemporary geological knowledge, in conjunction with historic drilling and outcrop information.

The review has resulted in the delineation of structural and lithological complexity that had not been recognised in previously available open file outcrop mapping and GSWA interpreted bedrock data. The result of this work is the generation of 28 discreet geophysical targets over the greater Dundas Project as shown in Figure 3.

Target generation criteria was focused firstly on lithium mineralisation, and where appropriate nickel and platinum group elements (PGE) targets have also been identified when ultramafic and differentiated Jimberlana Dyke lithologies have been interpreted.

Of the 28 targets identified, 22 of these occur within the Dundas South project area, notably eight of those within E63/2001. Targets have been prioritised into three categories based upon the geological and geophysical details at each location. Priority one targets are displayed in red, with priority two and priority three shown in orange and green respectively.

Four of these structural targets within E63/2001 are interpreted as high priority, occurring within felsic volcanic lithologies of the Black Flag Group. These targets are also broadly coincident with soil geochemical anomalism identified in the Company’s recent soil sampling campaign (ASX announcement 23 January 2023) which are less than 10km along strike of known lithium mineralisation and within a similar geological setting.

Level 6, 505 Little Collins Street, Melbourne VIC 3000 | admin@lightningminerals.com.au | www.lightningminerals.com.au

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Figure 3: Aeromagnetic data for the Dundas project tenure. Imagery - Reduced to Pole, pseudo linear draped second vertical derivative (2VD)

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FURTHER PEGMATITE OUTCROPS IDENTIFIED AT DUNDAS

(ASX ANNOUNCEMENT 16 FEBRUARY 2023)

• Multiple pegmatite intrusion outcrops identified

• Multiple geological targets form the basis of early-stage work program

• Combined soil sampling, surface mapping and geophysics interpretation designed to identify multiple drill targets across project area

Level 6, 505 Little Collins Street, Melbourne VIC 3000 | admin@lightningminerals.com.au | www.lightningminerals.com.au

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Field reconnaissance activities were undertaken at the Dundas projects with a primary focus on ground truthing recently identified geophysical targets ( ASX announcement 09 February 2023 ). Nineteen of the twenty-eight geophysical target locations were visited, and the surface expression was confirmed at each location. Access for potential future exploration drilling programs was also confirmed.

During the investigation of geophysical target DW_15 within E63/2001 (Figure 3), further outcropping pegmatites were identified as shown in Figure 4. These pegmatites lie approximately 300m to the east of those reported in ASX announcement dated 13th December 2022 and are shown in Figure 5. The north-south striking outcrop consists of two quartz-feldspar-muscovite pegmatites daylighting intermittently over a strike length of approximately 60m. The pegmatites are of variable width, with a maximum outcrop width of ~7m, the true width of the pegmatites is difficult to ascertain due to cover. Five rock chip samples were taken (DSRK00026-30) across the outcrop to assess geochemistry for the appropriate fractionation conditions likely to host of lithium-caesium-tantalum (LCT) pegmatites. Sample locations are shown in Figure 5.

Figure 4: Pegmatite outcrop identified within E63/2001 during February field reconnaissance. Photograph taken looking South from approximately 417731mE, 6447983mN (MGA94-Zone51)

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Level 6, 505 Little Collins Street, Melbourne VIC 3000 | admin@lightningminerals.com.au | www.lightningminerals.com.au

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Figure 5: Mapped Pegmatite outcrops within E63/2001 showing rock chip sampling locations from Table 1 and new rock chip locations plotted on aerial photography (MGA94-Zone51)

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Rock Chip sample results were returned for prior reconnaissance samples taken during December 2022 and are shown in Table 1. The results are encouraging as samples taken within outcropping pegmatites show adequate potassium/rubidium (K/Rb) geochemical signatures. This may indicate that the pegmatites sampled across the Dundas projects are fractionated to the appropriate level for lithium mineralisation to occur. The potassium/rubidium (K/Rb) ratios are a tool used to indicate the fractionation state and mineralisation potential of pegmatites, with spodumene-bearing pegmatites typically having a ratio between 5 and 40 K/Rb. The lithium tenor within the returned samples is subdued, as outcropping lithologies are moderately to intensely weathered. This is interpreted as the result of lithium’s mobility in the weathered profile and being readily depleted from the sampled horizon. Drill testing beneath the oxidised pegmatite outcrops is planned.

Table 1: Pegmatite Rock Chip results from Dundas Project. Notable K/Rb ratios are bolded (MGA94 Zn51)

SAMPLE ID	Easting	Northing	DESCRIPTION	K/Rb (Ratio)	Be ppm	Cs ppm	K ppm	Li ppm	Nb ppm	Rb ppm	Sn ppm	Ta ppm
DSRK0001	6465151	427869	Small pegmatite vein within monzogranite	37.48	12	30.1	19000	10.3	79.4	507	19.5	14
DSRK0004	6465024	427995	Highly weathered pegmatite	39.70	8.07	68.7	40100	4.1	51.7	1010	4.5	13.6
DSRK0003	6448058	417307	Pegmatite outcrop, moderate weathering	31.99	54.8	12.9	43500	5.6	34.3	1360	9.3	31.3
DSRK0007	6448130	417301	Pegmatite, moderately to strongly weathered	19.25	15.1	21.7	56800	12.3	72.9	2950	14.5	23.5
DSRK0008	6448026	417456	Pegmatite, moderately to strongly weathered	52.87	13	0.4	497	3.1	53.6	9.4	11.4	33.2
DSRK0009	6448084	417431	Pegmatite, moderately to strongly weathered	35.75	8.07	7.3	25100	15.3	60.6	702	19.5	22
DSRK0011	6453348	428020	Pegmatite, moderately to strongly weathered	56.36	1.63	12	62000	10.2	10.7	1100	0.7	0.7

Level 6, 505 Little Collins Street, Melbourne VIC 3000 | admin@lightningminerals.com.au | www.lightningminerals.com.au

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LITHIUM SOIL ANOMALY AT DUNDAS AND DRILL PROGRAM PLAN

(ASX ANNOUNCEMENT 02 MARCH 2023)

• Exploration strategy confirmed for a drilling program of up to 2,500m Reverse Circulation and 10,000m of Air Core, to commence in the second quarter of 2023

• Soil geochemistry results within E63/2028 provide further lithium-caesium targets for follow up exploration

• Air Core drilling Programme of Work approval received for E63/2001

Drill program design has been completed for Dundas South tenement E63/2001, with ~2,500m Reverse Circulation (RC) and ~10,000m of Air Core (AC) now confirmed. Drill areas are shown in Figure 6. Drilling will follow up a combination of recent priority targets identified through the mapping of outcropping pegmatites, geophysical reinterpretations, and lithium-rubidium in soil anomalism identified in the south-eastern corner of tenement E63/2001.

Figure 6: Planned Phase 1 drilling areas within tenement E63/2001 at the Dundas South Project. Priority geophysical targets are shown in red

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Level 6, 505 Little Collins Street, Melbourne VIC 3000 | admin@lightningminerals.com.au | www.lightningminerals.com.au

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Analytical results have revealed areas of elevated lithium and caesium on tenement E63/2028. Elevated zones occur within greenstone lithologies similar to those that are known to host a LCT deposit approximately 10km to the south-east: Liontown’s Buldania/Anna lithium project.

The priority one areas for follow up are shown in red in Figure 7. These areas have broadly coincident elevations of both lithium and caesium, and importantly these occur within Archaean mafic and ultramafic greenstone lithologies. Peak results of 60.9ppm lithium and 5.6ppm caesium have been returned for samples that lie above the interpreted greenstone terrains.

These results are encouraging as crustal mafic rocks typically have caesium values of <1ppm. The tenor of elevation of caesium in the weathered soil sample analysed may be further subdued. These first pass results at a sample spacing of 400m x 400m are considered encouraging as potential pathfinder elements and warrant further follow up field investigation.

Figure 7: UFF+ lithium (>40ppm) and caesium (>4ppm) soil geochemistry results on Interpreted 1:100k GSWA geology

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Level 6, 505 Little Collins Street, Melbourne VIC 3000 | admin@lightningminerals.com.au | www.lightningminerals.com.au

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FURTHER LITHIUM ANOMALY IDENTIFIED AT DUNDAS

(ASX ANNOUNCEMENT 23 MARCH 2023)

• Elevated lithium-in-soil anomaly over a broad ~8km[2] area, including a peak result of 218ppm lithium

• Soil geochemistry within E63/2000 provide priority targets for follow up exploration

• Project scale soil sampling field programs complete across Dundas tenure

Results for a further 972 samples were received for tenements E63/2000, E63/1993, E63/1932 and E15/1748 of the Dundas South project, thus completing the laboratory analytical work for the Dundas South soil sampling works. The reconnaissance exploration campaign samples were collected on a nominal 400m x 400m grid across the tenement. The primary target for further exploration has been identified within E63/2000, where a broad, moderate to high tenor lithium-in-soil geochemical anomaly has been discovered over an approximate 3.5km x 2.4km area (Figure 8) with assays up to 218ppm lithium.

Figure 8: Lithium in soil geochemical results within E63/2000 and E63/1993, shown on Analytic Signal Total

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Level 6, 505 Little Collins Street, Melbourne VIC 3000 | admin@lightningminerals.com.au | www.lightningminerals.com.au

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INFILL AUGER PROGRAM TO TARGET LITHIUM ANOMALY AT DUNDAS

(ASX ANNOUNCEMENT 31 MARCH 2023)

• Infill program to target 8km[2] lithium-in-soil anomaly identified by reconnaissance soil sampling campaign

• Up to 2,200 samples to be collected within E63/2000 and E63/1993

• Results of infill program have potential to progress to drill ready exploration targets

Results from reconnaissance soil sampling campaign were completed in March for the Company’s Dundas South Project. A target has been identified within E63/2000, where a broad, >80 PPM tenor lithium-in-soil geochemical anomaly has been discovered over an approximate 8km[2] area. A smaller anomaly of the same tenor is also present within E63/1993.

A higher resolution 50m x 100m infill sample grid will be completed directly over the concentrated contour highs of >120 PPM lithium, as shown in red in Figure 9. The remaining area shown in orange will be assessed utilising a mixed sample spacing, with areas using a grid sample resolution of 100m x 200m and 200m x 200m.

Figure 9: Lithium in soil geochemical results within E63/2000 and E63/1993, showing areas for infill sampling to further delineate targets in red and orange

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Level 6, 505 Little Collins Street, Melbourne VIC 3000 | admin@lightningminerals.com.au | www.lightningminerals.com.au

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MT JEWELL PROJECT (100% L1M)

A site visit was completed to Mt Jewell during the quarter in February (ASX announcement 16 February 2023). Rock chip samples were collected at site with results pending subsequent to the end of quarter. Heritage agreements have been reviewed and the Company is awaiting final versions to sign-off on. Work program design has begun during the quarter to determine on site activities during the second half of 2023. POW applications have been approved by The Department of Mines, Industry Regulation and Safety (DMIRS).

MAILMAN HILL PROJECT (100% L1M)

A site visit was completed to Mailman Hill during the quarter in February (ASX announcement 16 February 2023). Rock chip samples were collected at site with results pending subsequent to the end of quarter. Heritage agreements have been reviewed and the Company is awaiting final versions to sign-off on. Work program design has begun during the quarter to determine on site activities during the second half of 2023. POW applications have been approved by The Department of Mines, Industry Regulation and Safety (DMIRS).

MT BARTLE PROJECT (100% L1M)

No work has been performed at Mt Bartle this quarter. In the coming months data analysis including geophysical data reviews and historical drilling will be conducted. Heritage agreements have been reviewed and the Company is awaiting final versions to sign-off on. Application for the Mt Bartle tenements is still pending.

CURRENT WORK PROGRAMS

Soil sampling and geophysics work programs at Dundas are now complete. An infill auger soil sampling campaign is planned subsequent to end of quarter on tenement E63/2000 with plans for drilling on tenement E63/2001 underway.

The company continues to evaluate all data collected from all tenements with a view to develop a pipeline of high-quality drill targets across its tenure.

PERMITTING, HERITAGE AGREEMENTS AND POW APPLICATIONS

A summary of POW applications and status is shown in Table 2.

Table 2: Current POW applications with Department of Mines, Industry Regulation and Safety (DMIRS)

Project	Tenement	Drill Type	Approved	Holes Drilled
Dundas South	E63/2001	RC	Yes	0
Mt Jewell	E27/566	DD	Yes	0
Mailman Hill	E37/1408	RC	Yes	0
Dundas South	E63/2001	AC	Yes	0
Dundas South	E63/2000	AUG	Pending	0

During the quarter negotiations with The Ngadju Native Aboriginal Title Corporation (NNTAC) were ongoing and subsequent to the end of quarter a heritage agreement has been signed.

Level 6, 505 Little Collins Street, Melbourne VIC 3000 | admin@lightningminerals.com.au | www.lightningminerals.com.au

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Figure 10: Lightning Minerals’ project tenement summary

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Level 6, 505 Little Collins Street, Melbourne VIC 3000 | admin@lightningminerals.com.au | www.lightningminerals.com.au

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Figure 11: Location of Dundas project tenements

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Level 6, 505 Little Collins Street, Melbourne VIC 3000 | admin@lightningminerals.com.au | www.lightningminerals.com.au

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OTHER ANNOUNCEMENTS DURING THE QUARTER

APPOINTMENT OF JARRAD WOODLAND AS EXPLORATION MANAGER

(ASX ANNOUNCEMENT 06 JANUARY 2023)

Jarrad Woodland was appointed as the Company’s Exploration Manager in January. Jarrad is a Geologist with a Bachelor of Science (Applied Geology) from Curtin University of Technology. His expertise is across a range of critical minerals including lithium, copper, gold and base metals and he possesses regional expertise relevant to the Company’s Dundas projects. Jarrad joins Will Clarke who is already employed by the Company as Project Geologist. Will brings strong experience in both lithium and base metals both in Australia and Canada and will work closely with Jarrad in developing and actioning the Company’s exploration strategy.

LOYALTY OPTIONS

(ASX ANNOUNCEMENT 13 MARCH 2023)

The Company published it’s Loyalty Options prospectus on 13 February 2023, see ASX announcement of that date. Pursuant to the Loyalty Options Prospectus, eligible shareholders were invited to participate in a pro-rata non-renounceable entitlement issue of one (1) Loyalty Option for every two (2) Shares held by shareholders registered at the Record Date of 17th February 2023 at an issue price of $0.001 per Loyalty Option with an exercise price of A$0.25.

The Loyalty Options Offer closed on Monday 6 March 2023. The Company advises that shareholders subscribed for 16,635,013 Loyalty Options, representing a 68.65% take-up of their rights entitlement, leaving a shortfall of 7,593,530 Shortfall Options which have been placed by the lead manager, PAC Partners.

PROJECT GENERATION

During the period the Company received a number of project opportunities, and conducted high-level internal project evaluation and will continue to identify and review projects that may be complimentary to its business.

FINANCE

EXPLORATION EXPENDITURE

The Company spent A$573,000 on exploration activities during the period, focused principally on the Dundas Projects.

The Company has cash and cash equivalents of A$5.278 Million at 31 March 2023.

QUARTERLY USE OF FUNDS

Under ASX listing rule 5.3.4 the company presents its quarterly use of funds against its IPO Prospectus projections as shown in Table 3.

Table 3: Use of funds against IPO prospectus projection

Expenditure	Prospectus	Q2 23	Q3 23	Q4 23	Q1 24	Q2 24	Q3 24	Q4 24	Q1 25	Q2 25	TOTAL
Exploration (A$)1	4,900,000	129,000	364,000								493,000
Working Capital (A$)2	1,374,000	314,000	567,000								881,000
Costs of Offer (A$)3	726,000	486,000	34,000								520,000

1includes items 1.2(a) and 2.1(d) from Appendix 5B, 2includes items 1.2(d) and 1.2(e) from Appendix 5B, 3includes items 3.1 and 3.4

Level 6, 505 Little Collins Street, Melbourne VIC 3000 | admin@lightningminerals.com.au | www.lightningminerals.com.au

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OTHER DISCLOSURES

As disclosed under item 6.1 in the Appendix 5B and under ASX listing rule 5.3.5, the Company made payments for a total consideration of A$72,000 relating to payments for Non-Executive Directors undertaking additional duties to support corporate and exploration activities as well as the Director’s normal monthly fees.

In line with the issue of Loyalty Options the following Directors exercised their rights to participate 100% (Loyalty Options Entitlement Acceptance) with shareholdings changing as shown in Table 4.

There were no other change in Director’s interests to report during the period.

Table 4: Change in Director’s interests related to Loyalty Options entitlement

Director	Number of Securities Prior to **Change **	Class of Securities Acquired	Number Acquired	Value/ Consideration	Number of Securities After **Change **
Francesco Cannavo	3,025,000 Shares 1,400,000 Options (exercise price of $0.25 expiring 22/11/27) 436,364 Performance Rights	Listed Options (L1MO)	1,512,500	A$0.001 per Option	3,025,000 Shares 1,512,000 Listed Options (L1MO) (exercise price of $0.25 expiring 13/03/28) 1,400,000 Options (exercise price of $0.25 expiring 22/11/27) 436,364 Performance Rights
Craig Sharpe	750,000 Shares 1,400,000 Options (exercise price of $0.25 expiring 22/11/27) 436,364 Performance Rights	Listed Options (L1MO)	375,000	A$0.001 per Option	750,000 Shares 375,000 Listed Options (L1MO) (exercise price of $0.25 expiring 13/03/28) 1,400,000 Options (exercise price of $0.25 expiring 22/11/27) 436,364 Performance Rights

CORPORATE ACTIVITIES

CAPITAL STRUCTURE

The capital structure at 31 March2023 was:

• 48,432,000 shares

• 5,200,000 options (each exercisable at $0.25 each expiring 22/11/2027)

• 5,000,000 options (each exercisable at $0.25 each expiring 22/11/2026)

• 4,800,000 performance shares

• 26,728,543 Listed Options (each exercisable at $0.25 each expiring 13/03/2028)

LOYALTY OPTIONS ISSUE

Pursuant to the Loyalty Options Prospectus, eligible shareholders were invited to participate in a prorata non-renounceable entitlement issue of one (1) Loyalty Option for every two (2) Shares held by

Level 6, 505 Little Collins Street, Melbourne VIC 3000 | admin@lightningminerals.com.au | www.lightningminerals.com.au

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shareholders registered at the Record Date of 17th February 2023 at an issue price of $0.001 per Loyalty Option with an exercise price of A$0.25.

The Loyalty Options Offer closed on Monday 6 March 2023. The Company advises that shareholders subscribed for 16,635,013 Loyalty Options, representing a 68.65% take-up of their rights entitlement, leaving a shortfall of 7,593,530 Shortfall Options which have been placed by the lead manager, PAC Partners.

This announcement has been approved for release by the Board of Directors.

-ends

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ABOUT LIGHTNING MINERALS

Lightning Minerals is a mineral exploration company, listed on the Australian Stock Exchange (ASX:L1M) and focused on the exploration of critical minerals and lithium at its tenements across Western Australia. The Company’s flagship Dundas project is located in the prolific Dundas region of Western Australia. The Company also has other projects in Western Australia, Mt Jewell, Mt Bartle and Mailman Hill prospective for base metals and critical minerals.

FORWARD LOOKING STATEMENTS

Information included in this release constitutes forward-looking statements. Often, but not always, forward looking statements can generally be identified by the use of forward looking words such as “may”, “will”, “expect”, “intend”, “plan”, “estimate”, “anticipate”, “continue”, and “guidance”, or other similar words and may include, without limitation, statements regarding plans, strategies and objectives of management, anticipated production or construction commencement dates and expected costs or production outputs.

Forward looking statements inherently involve known and unknown risks, uncertainties and other factors that may cause the Company’s actual results, performance and achievements to differ materially from any future results, performance or achievements. Relevant factors may include, but are not limited to, changes in commodity prices, foreign exchange fluctuations and general economic conditions, increased costs and demand for production inputs, the speculative nature of exploration and project development, including the risks of obtaining necessary licences and permits and diminishing quantities or grades of reserves, political and social risks, changes to the regulatory framework within which the Company operates or may in the future operate, environmental conditions including extreme weather conditions, recruitment and retention of personnel, industrial relations issues and litigation.

Forward looking statements are based on the Company and its management’s good faith assumptions relating to the financial, market, regulatory and other relevant environments that will exist and affect the Company’s business and operations in the future. The Company does not give any assurance that the assumptions on which forward looking statements are based will prove to be correct, or that the Company’s business or operations will not be affected in any material manner by these or other factors not foreseen or foreseeable by the Company or management or beyond the Company’s control.

Although the Company attempts and has attempted to identify factors that would cause actual actions, events or results to differ materially from those disclosed in forward looking statements, there may be other factors that could cause actual results, performance, achievements or events not to be as anticipated, estimated or intended, and many events are beyond the reasonable control of the Company. Accordingly, readers are cautioned not to place undue reliance on forward looking statements. Forward looking statements in these materials speak only at the date of issue. Subject to any continuing obligations under applicable law or any relevant stock exchange listing rules, in providing this information the Company does not undertake any obligation to publicly update or revise any of the forward-looking statements or to advise of any change in events, conditions or circumstances on which any such statement is based.

COMPETENT PERSONS STATEMENT

The information contained herein that relates to exploration results is based on information compiled or reviewed by Mr Jarrad Woodland, who is a Competent Person and a member of the Australasian Institute of Mining and Metallurgy. Mr Woodland is a full-time employee of the company. Mr Woodland has sufficient experience which is relevant to the style of mineralisation and types of deposit under consideration and to the activity which he is undertaking to qualify as a Competent Persons as defined in the 2012 Edition of the ‘Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves’. Mr Woodland consents to the inclusion of his name in the matters based on the information in the form and context in which it appears.

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, and that all material assumptions and technical parameters have not materially changed. The Company also confirms that the form and context in which the Competent Person’s findings are presented have not been materially modified from the original market announcements.

Level 6, 505 Little Collins Street, Melbourne VIC 3000 | admin@lightningminerals.com.au | www.lightningminerals.com.au

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APPENDIX 1 - SCHEDULE OF TENEMENTS AS AT 31 MARCH 2023

Project					i	Annual	Annual Edit		Ownership
			Area
	Tenement	Status	**(km2) **	Grant Date	Expry Date	Rent (A$)	xpenure (A$)	Royalty
Dundas South	E15/1748	Granted	29.13	6/11/2020	05/11/2025	2,750	20,000	1% NSR	100%
	E63/1932	Granted	17.01	30/09/2019	19/09/2024	1,650	20,000	1% NSR	100%
	E63/1993	Granted	29.07	15/05/2020	14/05/2025	2,750	20,000	1% NSR	100%
	E63/2000	Granted	93.10	23/10/2020	22/10/2025	8,800	32,000	1% NSR	100%
	E63/2001	Granted	23.24	23/10/2020	22/10/2025	2,200	20,000	1% NSR	100%
	E63/2028	Granted	46.50	14/05/2021	13/05/2026	2,448	20,000	1% NSR	100%
Dundas North	E28/3027	Granted	160.84	17/05/2021	06/05/2026	8,415	55,000	1% NSR	100%
	E28/3028	Granted	55.51	17/05/2020	16/05/2026	2,907	20,000	1% NSR	100%
Mt Jewell	E27/566	Granted	8.89	8/11/2016	07/11/2026	2,133	30,000	1.5% NSR	100%
Mailman Hill	E37/1408	Granted	101.83	12/05/2021	11/05/2026	5,202	34,000	1% NSR	100%
Mt Bartle	E53/2151	Pending	193.62	(01/10/2020)	-	-	-	1% NSR	100%
	E53/2159	Pending	78.33	(08/09/2020)	-	-	-	1% NSR	100%
	E53/2147	Pending	124.98	(18/12/2020)	-	-	-	1% NSR	100%

Level 6, 505 Little Collins Street, Melbourne VIC 3000 | admin@lightningminerals.com.au | www.lightningminerals.com.au

Appendix 5B Mining exploration entity or oil and gas exploration entity quarterly cash flow report

Appendix 5B

Mining exploration entity or oil and gas exploration entity

quarterly cash flow report

Name of entity

LIGHTNING MINERALS LTD ABN Quarter ended (“current quarter”) 40 656 005 122 31 March 2023

Consolidated statement of cash flows	Consolidated statement of cash flows	Current quarter $A’000	Year to date (9 months) $A’000
1.	Cash flows from operating activities	-	-
1.1	Receipts from customers
1.2	Payments for	(1)	(33)
	(a) exploration & evaluation (if expensed)
	(b) development	-	-
	(c) production	-	-
	(d) staff costs	(234)	(371)
	(e) administration and corporate costs	(129)	(330)
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 (provide details if material)	-	-
1.9	Net cash from / (used in) operating activities	(364)	(734)
2.	Cash flows from investing activities	-	-
2.1	Payments to acquire:
	(a) entities
	(b) tenements	6	(300)
	(c) property, plant and equipment	-	-
	(d) exploration & evaluation (if capitalised)	(573)	(672)
	(e) investments	-	-
	(f) other non-current assets	-	-

ASX Listing Rules Appendix 5B (17/07/20)

• See chapter 19 of the ASX Listing Rules for defined terms 1

Appendix 5B

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

Consolidated statement of cash flows	Consolidated statement of cash flows	Current quarter $A’000	Year to date (9 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	(567)	(972)
3.	Cash flows from financing activities	18	7,041
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	(52)	(392)
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	(34)	6,649
4.	Net increase / (decrease) in cash and cash equivalents for the period	(965)	4,943
4.1	Cash and cash equivalents at beginning of period	6,243	335
4.2	Net cash from / (used in) operating activities (item 1.9 above)	(364)	(734)
4.3	Net cash from / (used in) investing activities (item 2.6 above)	(567)	(972)
4.4	Net cash from / (used in) financing activities (item 3.10 above)	(34)	6,649

ASX Listing Rules Appendix 5B (17/07/20)

• See chapter 19 of the ASX Listing Rules for defined terms 2

Appendix 5B

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

Consolidated statement of cash flows	Consolidated statement of cash flows	Current quarter $A’000	Year to date (9 months) $A’000
4.5	Effect of movement in exchange rates on cash held	-	-
4.6	Cash and cash equivalents at end of period	5,278	5,278
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	5,278	6,240
5.2	Call deposits	-	-
5.3	Bank overdrafts	-	-
5.4	Other (provide details) Trust Account	-	3
5.5	Cash and cash equivalents at end of quarter (should equal item 4.6 above)	5,278	6,243

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	72
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 Payments in 6.1 relate to Director fees and salaries

ASX Listing Rules Appendix 5B (17/07/20)

• See chapter 19 of the ASX Listing Rules for defined terms 3

Appendix 5B

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

7.	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
7.1	Loan facilities	-	-
7.2	Credit standby arrangements	-	-
7.3	Other (please specify)	-	-
7.4	Total financing facilities	-	-
7.5	Unused financing facilities available at quarter end		-
7.6	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.
8.	Estimated cash available for future operating activities		$A’000
8.1	Net cash from / (used in) operating activities (Item 1.9)		(364)
8.2	Capitalised exploration & evaluation (Item 2.1(d))		(567)
8.3	Total relevant outgoings (Item 8.1 + Item 8.2)		(931)
8.4	Cash and cash equivalents at quarter end (Item 4.6)		5,278
8.5	Unused finance facilities available at quarter end (Item 7.5)		-
8.6	Total available funding (Item 8.4 + Item 8.5)		5,278
8.7	Estimated quarters of funding available (Item 8.6 divided by Item 8.3)		5
8.8	If Item 8.7 is less than 2 quarters, please provide answers to the following questions:
	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?
	Answer:
	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?
	Answer:
	3. Does the entity expect to be able to continue its operations and to meet its business objectives and, if so, on what basis?
	Answer:

ASX Listing Rules Appendix 5B (17/07/20)

• See chapter 19 of the ASX Listing Rules for defined terms 4

Appendix 5B

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

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: 18/04/23

Authorised by: By the Board

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

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 5