LODE RESOURCES LTD — Capital/Financing Update 2024

Oct 22, 2024

ASX Announcement | 23 October 2024

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ASX Code: LDR

ADVANCED HIGH-GRADE ANTIMONY & SILVER PROJECT AQUISITION

Lode Resources Ltd (ASX:LDR) (“Lode”, or the “Company”) is pleased to announce it has signed a heads of agreement to acquire 100% of the Montezuma Antimony Project located in Tasmanian’s premier West Coast Mining Province. This project includes a high-grade antimony-silver-lead deposit with initial development, advanced metallurgy, significant mining equipment and beneficiation infrastructure.

Highlights

• High-grade Montezuma antimony-silver-lead deposit defined by surface channel sampling, exploration adit face sampling and diamond drill core sampling.

  • ➢ Surface grab samples grade up to 24.5% antimony (Sb) & 3,050 g/t silver (Ag)

  • ➢ Diamond drill core samples grade up to 20.3% antimony (Sb) & 1,990 g/t silver (Ag)

  • ➢ Development face samples grade up to 21.4% antimony (Sb) & 2,478 g/t silver (Ag)

• Development of portal box cut and commencement of exploration drive has produced stockpiled mineralisation. Representative bulk sampling of combined mineralisation/waste averaged 4.75% antimony (Sb) & 239 g/t silver (Ag) and representative bulk sampling of mineralisation only, averaged 9.02% antimony (Sb) & 769 g/t silver (Ag) reconciling well with corresponding face sampling .

• Metallurgical test work is well advanced with 90% recoveries of antimony achieved producing a saleable antimony product.

• R&D funding discussions are ongoing with local and international institutions including those representing major western governments.

• Montezuma Antimony Project acquisition complements Lode’s antimony exploration portfolio in the New England Fold Belt, NSW’s most prolific antimony province. Together, these assets create a formidable Antimony division within Lode.

• Also compliments Lode's high-grade Silver portfolio with assays due shortly from the Webbs Consol Silver project where drilling at the Castlereagh prospect has been completed.

• Montezuma Antimony Project acquisition terms include:

• ➢ $50,000 non-refundable cash deposit payable within 2 business of execution of the HOA ie 22 October 2024; plus

• ➢ $200,000 cash payable on completion of the Proposed Acquisition; plus

• ➢ 10,000,000 fully paid ordinary shares in the Company at a deemed issue price of $0.10 per share on completion of the Proposed Acquisition subject to 12-month escrow; plus

• ➢ Up to 6,000,000 fully paid ordinary shares in the Company at a deemed issue price of $0.10 per share upon satisfaction of certain performance hurdles by the Sellers (key terms are outlined in Annexure 1) and subject to 12-month escrow.

• ➢ The fully paid ordinary shares will be issued under listing rule 7.1 using the Company's existing capacity.

Legal/88950465_8

ASX Code: LDR | ACN: 637 512 415 | www.loderesources.com A: Level 5, 1 Margaret St Sydney NSW 2000 | P: +61 2 9199 8017 | E: info@loderesources.com

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Proposal to Acquire Montezuma Antimony Project

The Montezuma Antimony Project includes a high-grade antimony-silver-lead deposit with initial development, advanced metallurgical test work and significant beneficiation infrastructure.

Figure 1. Commencement of underground development – 50m exploration drive to feed pilot plant

Figure 2. Saleable antimony product sodium pyroantimonate (Na4Sb2O7) produced during metallurgical test work

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Figure 3. Significant services infrastructure includes recently constructed tailings dam, raw water dam and grid power

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Figure 4. Significant beneficiation infrastructure including crushing and grinding equipment

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Montezuma Antimony Project Deposit

The Montezuma Antimony Project deposit (2M-2023, EL7-2019) is located between well-known mining centres such as Rosebery (Zn,Cu,Pb), Renison Bell (Sn), Henty (Au) and Zeehan(Pb,Ag). Access is via the Zeehan township located 14km to the west.

Figure 5. Montezuma Antimony Project located in Tasmanian’s premier West Coast Mining Province

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The Montezuma antimony-silver-lead deposit is a structurally controlled lode, emplaced primarily within the well-known Motezuma fault and hosted by a sequence of turbidites. Antimony and lead are contained within Jamesonite, a lead-iron-antimony sulphide mineral (Pb4FeSb6S14) and is a late-stage hydrothermal mineral forming at moderate to low temperatures. This project is also prospective for copper, zinc and gold.

The Montezuma antimony-silver-lead deposit is defined by surface sampling of the exposed mineralised structure over 50m strike length, development face sampling and 13 diamond drill holes which have intercepted high-grade mineralisation down to a depth of 80m. The Montezuma antimony-silver-lead deposit remains open to the north, south and at depth.

Cautionary Statement: All Eploration Results from the Montezuma antimony-silver-lead deposit are considered to be “historical”, not reported in accordance with the JORC Code 2012 and a Competent Person has not done sufficient work to disclose the Exploration Results in accordance with the JORC Code 2012. It is possible that following further evaluation and/or exploration work that the confidence in the prior reported Exploration Results may be reduced when reported under the JORC Code 2012. Nothing has come to the attention of the acquirer that causes it to question the accuracy or reliability of the former owner’s Exploration Results. Lode has not independently validated the former owner’s Exploration Results and therefore is not to be regarded as reporting, adopting or endorsing those results. Nevertheless, these exploration results are considered to be material to the acquisition and thus price sensitive. Please refer to Annexure 2 JORC 2012 Table 1 of this announcement for descriptions of sampling methods used. Lode plans to review all exploration sampling to date during the due diligence period under the heads of agreement so as to determine what remedial actions are needed to bring exploration results up to JORC standards. Such actions may include resampling of drill core, surveying drill collars, etc, in addition to further exploration work.

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Montezuma Antimony Project Surface Sampling

Surface grab samples have been taken from trenches perpendicular to strike and at 5m intervals along a 50m exposure of the Montezuma antimony-silver-lead deposit. With reference also to the cautionary statement above, surface samples have graded up to 24.5% antimony (Sb), 3,050 g/t silver (Ag) and 39.1% lead (Pb) .

These surface sample antimony grades ranged from 4.36% to 24.50%, silver (Ag) grades ranged from 124 g/t to 3,050 g/t and lead (Pb) grades ranged from 6.81% to 39.08%. Average grades are 11.9% antimony (Sb), 843 g/t silver (Ag) and 18.0% lead (Pb) .

Table 1. Montezuma antimony-silver-lead deposit surface sample assays - taken at 5m intervals along 50m strike traverse

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Figure 6. Montezuma antimony-silver-lead deposit - surface sample positions

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Cautionary Statement: Grab sampling is selective in nature with resultant assay grades considered to be qualitative rather than quantitative and not necessarily representative of underlying mineralisation which may actually be lower or higher in grade.

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Montezuma Antimony Project Diamond Drilling

To date 13 diamond drill holes have intercepted mineralisation at the Montezuma antimony-silverlead deposit, 4 holes from the hanging wall (MZSHW1-4) and 8 holes from the footwall (MZSFW18). Diamond drill core samples have graded up to 20.3% antimony (Sb), 1,990 g/t silver (Ag) and 27.0% lead (Pb). This is in addition to the historical Electrolytic Zinc (EZ) hole MZP245A .

Table 2. Montezuma antimony-silver-lead deposit – diamond drill hole assay results

Drill Hole Number	From m	To m	Interval m	Sb %	Ag g/t	Pb %
MZSFW1	4.50	11.60	7.10	1.70	216	3.47
MZSFW2	12.10	17.85	5.75	6.60	257	13.60
MZSFW3	9.40	12.20	2.80	10.20	1,470	15.40
MZSFW4	7.50	10.50	3.00	0.20	164	0.15
MZSFW5	3.30	8.20	4.90	10.50	1,010	13.80
MZSFW6	3.00	6.46	3.46	1.78	381	2.76
MZSFW7	16.70	20.70	4.00	6.04	620	8.18
MZSFW8	11.10	13.60	2.50	6.44	747	8.43
MZSHW1	21.00	21.50	0.50	4.70	517	6.83
MZSHW2	22.90	24.00	1.10	3.82	226	6.03
MZSHW3	28.50	29.20	0.70	10.70	1,560	13.50
MZP245A	80.85	81.45	0.60	10.70	1,080	24.40

Drilling to date has primarily been designed to target the Montezuma antimony-silver-lead deposit ahead of adit drive development. The southern most hole (MZSFW7) resulted in an intercept of 4m (16.7m to 20.7m) grading 6.04% Sb, 8.18% Pb, 620 g/t Ag including an individual assay of 0.5m (19.7m to 20.2m) at 20.3% Sb, 26.7% Pb, 824 g/t Ag .

Table 3. Montezuma antimony-silver-lead deposit – drill hole MZSFW7 individual interval assays

Sample Number	From m	To m	Interval m	Sb %	Sb %	Ag g/t	Pb %
MZS07-1 MZS07-2 MZS07-3 MZS07-4 MZS07-5 MZS07-6 MZS07-7 MZS07-8 Intercept Inc. Intercept And Intercept	16.70	17.20	0.50	7.44		1,450	9.38
	17.20	17.70	0.50	0.96		559	1.19
	17.70	18.20	0.50	8.13		857	10.85
	18.20	18.70	0.50	5.72		429	7.53
	18.70	19.20	0.50	0.85		339	1.28
	19.20	19.70	0.50	1.60		334	2.37
	19.70	20.20	0.50	20.30		824	26.70
	20.20	20.70	0.50	3.30		164	6.15
	16.70	20.70	4.00	6.04		620	8.18
	16.70	18.70	2.00	5.5~~6~~		82~~4~~	7.24
	19.70	20.70	1.00	11.8~~0~~		49~~4~~	16.43

The Montezuma antimony-silver-lead deposit remains open to the north, south and at depth . Beside underground development and drilling, initial assessment work will be carried out to determine the best approach to define deposit extensions as well as potential parallel mineralised structures (see Figure 15)T.

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Table 4. Montezuma antimony lead deposit – diamond drill hole information

Hole_ID	Easting	Northing	RL	Azi	Dip	Depth	From	To	Interval
	m ( GDA9 4 )	m ( GDA9 4 )	m	deg	deg	m	m	m	m
MZSFW1	373147.2	5364147.8	630.1	105	-40	12.50	4.50	11.60	7.10
MZSFW2	373146.4	5364148.1	629.8	105	-48	21.00	12.10	17.85	5.75
MZSFW3	373147.4	5364152.0	630.0	65	-45	16.10	9.40	12.20	2.80
MZSFW4	373148.6	5364152.2	630.3	65	-42	12.70	7.50	10.50	3.00
MZSFW5	373148.2	5364155.4	630.5	33	-48	8.50	3.30	8.20	4.90
MZSFW6	373148.7	5364157.0	630.7	31	-40	7.60	3.00	6.46	3.46
MZSFW7	373142.0	5364143.0	630.0	105	-40	30.00	16.70	20.70	4.00
MZSFW8	373142.0	5364143.0	630.0	105	-30	18.00	11.10	13.60	2.50
MZSHW1	373167.1	5364168.1	634.5	255	-45	31.50	21.00	21.50	0.50
MZSHW2	373167.1	5364168.1	634.5	255	-60	36.00	22.90	24.00	1.10
MZSHW3	373167.6	5364167.2	634.5	235	-60	34.50	28.50	29.20	0.70
MZSHW4	373167.6	5364167.2	634.5	235	-50	34.50	Pending
MZP245A	373196.9	5364188.1	636.0	241	-78	374.00	80.85	81.45	0.60

Figure 7. Montezuma Antimony Project diamond drill rig suitable for surface and underground drilling – one of multiple pieces of equipment being acquired

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Montezuma Antimony Project Development Face Sampling

Development of the portal box cut and exploration drive has commenced with samples taken from three development faces up to the initial adit face, each representing a 2.4m cut (drilled, charged, blasted, mineralised/waste rock removed and stockpiled).

Development face samples have graded up to 21.4% antimony (Sb), 2,478 g/t silver (Ag) and 44.3% lead (Pb) . Antimony (Sb) grades ranged from 1.54% to 21.40%, lead (Pb) grades ranged from 2.13% to 44.3% and silver (Ag) grades ranged from 93 g/t to 2,478 g/t.

Total interval grades for face sampling are 9.3% antimony (Sb), 306 g/t silver (Ag) and 16.7% lead (Pb) over 1.85m for development face LT1, 7.8% antimony (Sb), 804 g/t silver (Ag) and 10.9% lead (Pb) over 2.20m for development face LT2 and 6.2% antimony (Sb), 301 g/t silver (Ag) and 11.7% lead (Pb) over 2.00m for development face LT3.

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Table 5. Montezuma antimony-silver-lead deposit – sampling of three development faces

Sample	Easting	Northing	RL	From m	To m	Interval m	Sb	Ag	Pb
Number	**m ( GDA9 4 ) **	m ( GDA9 4 )	m				%	g/t	%
LT101	373154.2 5	364182.0	620.0	0.00	0.50	0.50	17.50	434	34.00
LT102				0.50	1.45	0.95	3.07	186	5.26
LT103				1.45	1.85	0.40	13.90	431	22.40
LT1 Total Interval				0.00	1.85	1.85	9.31	306	16.73
LT201	373154.3 5	364178.1	620.0	0.00	0.50	0.50	18.65	2,478	25.80
LT202				0.50	1.10	0.60	5.90	346	8.49
LT203				1.10	1.60	0.50	6.78	534	9.21
LT204				1.60	2.20	0.60	1.54	93	2.13
LT2 Total Interval				0.00	2.20	2.20	7.81	804	10.85
LT301	373154.0 5	364176.3	620.3	0.00	0.30	0.30	13.65	1,170	21.00
LT302				0.30	0.50	0.20	21.40	462	44.30
LT303				0.50	2.00	1.50	2.66	106	5.51
LT3 Total Interval				0.00	2.00	2.00	6.18	301	11.71

Figure 8. Montezuma antimony-silver-lead deposit – showing development face channel samples assays (LT101, LT102, LT103)

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Charged blast
holes ready to be
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Currently the Montezuma Antimony Project has approval to bulk sample 1,000t from a 50m exploration drive. This will allow better definition of the mineralised lode through face mapping and sampling as well as the establishment of suitable drill positions for deeper drilling. It is intended that exploration drive development mineralisation will be processed through the project’s pilot scale beneficiation plant. Currently, development mineralisation has been stockpiled for treatment at a later date or even, potentially, sold as direct shipped ore (DSO).

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Montezuma Antimony Project Stockpiled Mineralisation

Development of a portal box cut and the commencement of an exploration drive has produced stockpiled mineralisation. Representative sampling of a combined mineralisation/waste batch averaged 4.75% antimony (Sb), 239 g/t silver (Ag) and 9.36% lead (Pb) and representative sampling of a mineralisation only batch averaged 9.02% antimony (Sb), 769 g/t silver (Ag) and 15.47% lead (Pb) which reconciles well with corresponding face sampling – see LT1 Total Interval in Table 4.

Table 6. Montezuma antimony-silver-lead deposit – representative sampling of combined development mineralisation/waste

Sample	Sb	Ag	Pb
Number	%	g/t	%
DSO1 All in	4.16	232	8.48
DSO2 All in	4.30	237	8.87
DSO3 All in	5.25	244	9.88
DSO4 All in	5.29	243	10.20
Average	4.75	239	9.36

Table 7. Montezuma antimony-silver-lead deposit – representative sampling of develpment mineralisation only

Sample	Sb	Ag	Pb
Number	%	g/t	%
DSO11/22 01	7.96	917	12.85
DSO11/22 02	9.01	672	16.30
DSO11/22 03	10.10	718	17.25
Average	9.02	769	15.47

Figure 9. Montezuma Antimony Project mining equipment and stockpiled development mineralisation, potentially DSO.

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Figure 10. Montezuma antimony-silver-lead deposit – Trench grab sample SGD+25, assays returned 24.5% Sb, 501g/t Ag and 39.8% Pb

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Montezuma Antimony Project Beneficiation Plant

The Montezuma Antimony Project’s pilot scale beneficiation plant is located 15km to the northwest of the Zeehan township. Infrastructure includes connection to grid power, cone crusher, ball mill, gravity tables, spirals, tankage, raw water and a recently constructed tailings dam. Trial pilot scale beneficiation treatment of Montezuma mineralisation is planned once metallurgical parameters, tankage configuration and permitting are finalised.

Figure 11. Montezuma Antimony Project - beneficiation plant and associated services infrastructure

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Beneficiation Plant
Raw Water Dam
New Tailings Dam
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Significant bench scale metallurgical work has been carried out to date by Core Resources, a Brisbane based metallurgical project development firm. Finalisation of this work is needed. “Core has completed flowsheet design, test work and engineering plans for the Montezuma Antimony Project. This work has involved developing an innovative approach to recovering antimony from Jamesonite, whilst recovering silver and lead by-products in a low-cost and straightforward process flowsheet that could be implemented on site using readily available equipment.”[1]

Metallurgical test work (See Figure 13) on a batch of development mineralisation involved bulk leaching, hydrocycloning remaining solids to produce a separate a Pb/Ag product (See Table 8), oxidation, crystallization and precipitation of an antimony compound with a 90% antimony recovery and 47% antimony content by weight was achieved.

The resultant product sodium pyroantimonate (Na4Sb2O7) is primarily used as a glass clarifier and, given its application in solar panels, has particularly strong demand growth. Additional metallurgical test work may include the production of synthetic antimony (Sb2S3). This product has smelter applications, in particular as a harder in lead alloys. Testwork to date has primarily focused on maximising antimony recoveries. Further metallurgical work is needed to determine silver and lead recoveries, however high-grade concentrate grading 2,575 g/t Ag and 60% Pb has already been achieved.

Table 8. Silver-Lead concentrate grades from cyclone overflow (-C5 configuration)

Figure 12. Concentrate product using various cyclone configurations

Bulk	Ag	Pb
Cyclone	g/t	%
Batch 1 O/F	2,390	60.30
Batch 2 O/F	2,760	60.90
Average	2,575	60.60

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1 https://coreresources.com.au/unlocking-antimony-core-resources-expertise-amid-global-supply-challenges/

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Figure 13. Montezuma Processing Flowsheet

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Figure 14. Montezuma Alkaline Sulphide Leaching and Air Oxidation Test Set Up

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Montezuma Antimony Project Exploration Potential

The deepest drill hole to date is MZP245A drilled by the Electrolytic Zinc Company(EZ) in 1983. Resampling of this core, stored at the Tasmanian Geological Survey has shown a mineralised intercept of 0.63m grading 11.58% antimony (Sb), 683 g/t silver (Ag) and 25.64% lead (Pb). This hole has been sampled only for what was considered the highest-grade mineralisation so further assaying is needed of the remaining mineralised core to determine full intercept width. Importantly, this intercept demonstrates the potential continuity of mineralisation at depth. Given that mineralised lode thickness pinches and swells along strike at surface, it is also likely that this also occurs at depth and thus forming steep plunging shoots within the Motezuma lode structure. This is often the result of structural “kinks” and identifying these is important in defining drill targets within the lode structure, both at depth and laterally along strike.

Table 9. Montezuma antimony-silver-lead deposit – EZ diamond drill hole results

Sample Number	From m	To Inte m m	rval Sb %	Ag g/t	Pb %
001	80.82	81.15 0.	33 10.70	1,080	24.40
002	81.15	81.45 0.	30 12.55	247	27.00
Intecept	80.82	81.45 0.	63 11.58	683	25.64

Figure 15. Montezuma antimony-silver-lead deposit – deeper drill targeting

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West East
Exploration
Drill Target
Under Sampled
Mineralised Intercept
in EZ Drill Hole
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Figure 16. Plan view of Montezuma drilling and grab samples

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This announcement has been approved and authorised by Lode Resource Ltd’s Managing Director, Ted Leschke.

For more information on Lode Resources and to subscribe for our regular updates, please visit our website at www.loderesources.com or email info@loderesoruces.com

No Material Changes

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

Competent Person’s Statement

The information in this market announcement that relates to exploration results is based on information compiled by Mr Jason Beckton, who is a Member of the Australian Institute of Geoscientists. The information in this market announcement is an accurate representation of the available data for Montazoma project. Mr Beckton, who is Executive Director – Resource Development at Lode, has sufficient experience which is relevant to the style of mineralisation and type of deposit under consideration and to the activity which he is 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 Beckton has a beneficial interest as a shareholder and option holder of Lode and consents to the inclusion in this announcement of the matters based on the information in the form and context in which it appears.

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Annexure 1 Summary

Heads of Agreement to Acquire Tasmanian Mining Tenements

The board of Lode Resources Ltd ACN 637 512 415 ( ASX : LDR ) ( Company ) is pleased to announce it signed a binding heads of agreement on 18 October 2024 ( HOA ) with Steven McDermott and Keith McDermott ( Sellers ), and Ten Star Mining Pty Ltd ACN 113 022 914 ( Ten Star Mining ) to acquire 100% of the issued capital of Spero Mining Pty Ltd ACN 640 542 347 ( Spero Mining ) ( Proposed Acquisition ), for the following consideration:

• $50,000 non-refundable cash deposit payable within 2 business of execution of the HOA ie 22 October 2024; plus

• $200,000 cash payable on completion of the Proposed Acquisition; plus

• 10,000,000 fully paid ordinary shares in the Company at a deemed issue price of $0.10 per share on completion of the Proposed Acquisition; plus

• up to 6,000,000 fully paid ordinary shares in the Company at a deemed issue price of $0.10 per share upon satisfaction of certain performance hurdles by the Sellers.

Ten Star Mining is the wholly owned subsidiary of Spero Mining. The Sellers, Spero Mining and Ten Star Mining are the registered and beneficial owners of the mining tenements in Tasmania detailed below ( Tenements ), which are subject to the Proposed Acquisition.

Project	Teneme	Holder	Date of	Location	Area
	**nt No. **		expiry
Montezuma Antimony	2M-02023	K & S McDemott	28/12/2025	Moore's Pimple, Montezuma Nth	5 ha
	EL7-2019	Spero Mining	24/03/2020	Moore's Pimple	4 sq km
Heemskirk Tin – Globe Sivler Mine	2M-2018	Ten Star Mining	05/03/2027	Donnelly's Lookout, two separate areas	78 ha
	32M-1988	Ten Star Mining	01/11/2024	Granville Harbour, Mt Heemskirk dolerite rock quarry, within EL9-2019	1 ha
	EL9-2019	Ten Star Mining	10/06/2026	Vicinity of Heemskirk Rd	91 sq km

Due Diligence to be undertaken and Acquisition Document to be negotiated

The Proposed Acquisition is subject to satisfactory completion of legal, financial, technical and contractual due diligence amongst others conditions precedent.

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Annexure 1 Material Terms of Heads of Agreement

Proposed 100% (100 shares, referred to as Sale Shares ) of the issued share capital in Spero acquisition Mining Pty Ltd ( Spero Mining ) and thereby 100% of the shares in Ten Star Mining Pty Ltd ( Ten Star Mining ), a wholly owned subsidiary of Spero Mining and the tenements owned by Spero Mining and Ten Star Mining.

Counterparty Steven McDermott, Keith McDermott and Ten Star Mining

Spero Mining and Ten Star Mining

Project	Tenement	Holder	Date of	Location	Area
	**No. **		expiry
Montezuma Antimony	2M-2023	K & S McDermott	28/12/2025	Moore's Pimple, Montezuma Nth	5 ha
	EL7-2019	Spero Mining	24/03/2020	Moore's Pimple	4 sq km
Heemskirk Tin – Globe Siler Mine	2M-2018	Ten Star Mining	05/03/2027	Donnelly's Lookout, two separate areas	78 ha
	32M-1988	Ten Star Mining	01/11/2024	Granville Harbour, Mt Heemskirk dolerite rock quarry, within EL9-2019	1 ha
	EL9-2019	Ten Star Mining	10/06/2026	Vicinity of Heemskirk Rd	91 sq km

Purchase Price

In consideration, the Company agrees to pay the following to the Sellers:

• A. $50,000 non-refundable within two days from execution of the HOA ( Signing Consideration );

• B. $200,000 in cash on the completion date ( Completion Payment );

• C. 10,000,000 fully paid ordinary shares in the Company on the completion date ( Consideration Shares );

• D. up to 6,000,000 fully paid ordinary shares ( Performance Shares ) within seven days of satisfaction of the below performance conditions:

• i. research and development grant from AusIndustry – R&D Tax Incentive with minimum R&D refund of $50,000;

• ii. submission of US Department of Defence white paper;

• iii. achieve a JORC Mineral Resources estimate with no minimum tonnage or grade required;

• iv. antimony offtake agreement for a minimum of 85 tonnes; and

• v. completion of a 50m exploration drive.

• E. The performance shares have an expiry date of 30 June 2026 and if the above milestones are not achieved by the expiry date the performance shares will be cancelled.

Note that:

• F. the Signing Consideration is non-refundable; and

• G. the Consideration Shares and Performance Shares will be subject to 12 months voluntary escrow from the date of issue.

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Expected Completion date is the date notified by the Company within 7 business days completion after all the conditions precedent to completion (see below) have been date satisfied or waived.

Source of funds to pay the Purchase Price

The Company will fund the Purchase Price using existing funds held within its cash reserves.

Conditions precedent to Completion

The following key conditions precedent must be satisfied prior to completion:

• ( Due Diligence ): the Company completing and being fully satisfied with its financial, legal, technical, operational and contractual due diligence investigations into Ten Star Mining and Spero Mining.

• ( Shareholder Approvals ): if required, approval from the Company's shareholders for the issue of the Consideration Shares.

• ( Regulatory Approvals ): receipt of the relevant minister's, consent for the transfer of the Tenements to the Company.

The parties have also agreed to enter into a formal agreement detailing the full terms of the Proposed Acquisition ( Acquisition Document ). Lode may choose not to proceed with the Proposed Acquisition if it is not satisfied with the results of its due diligence investigations in Spero Mining or Ten Star Mining. Investors should note that as a result of that conditionality, there can be no guarantee that the parties will proceed with completion of the Proposed Acquisition.

Should the parties choose to proceed with the Proposed Acquisition under the Acquisition Document, key terms of the Acquisition Document will also be announced.

Changes to The proposed acquisition will not result in any change to the board, however Steve Board/senior McDermott and Keith McDermott will be retained as employees of the Company management to facilitate the integration of the companies and in the hopes of achieving those performance conditions which will entitle them to Performance Shares

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JORC Code, 2012 Edition – Table 1 report template

Section 1 Sampling Techniques and Data

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

	Criteria	JORC Code explanation	Commentary	Commentary
	Sampling	• Nature and quality of sampling (eg cut channels,	•	All exploration work by Spero and EZ is considered Historical and Material to the
	techniques	random chips, or specific specialised industry		acquisition.
		standard measurement tools appropriate to the minerals under investigation, such as down hole gamma sondes, or handheld XRF instruments, etc). These examples should not be taken as limiting the broad meaning of sampling.	•	All exploration results such as grab sampling, diamond drill core sampling, face sampling was sourced directly from Spero’s files. Spero is a private company and has not issued any public reports to date. The one exception is drill hole MZP245A drilled by Electrolytic Zinc Company of Australasia Ltd but with Spiro assaying the core as reported in this
		• Include reference to measures taken to ensure		market announcement.
		sample representivity and the appropriate calibration	•	Spero’s exploration work does not conform to JORC Code 2012 requriements.
		of any measurement tools or systems used. • Aspects of the determination of mineralisation that are Material to the Public Report. • In cases where ‘industry standard’ work has been done this would be relatively simple (eg ‘reverse	• •	Lode has reviewed all the data and has visited the Montezuma Antimony Project. Lode considers the data to be reliable but not JORC Code 2012 compliant. The work programmes to date are well documented in the text of this announcement and represents a summary of all work programmes completed to date.
		circulation drilling was used to obtain 1 m samples	•	Lode plans to review all exploration sampling to date during the due diligence period
		from which 3 kg was pulverised to produce a 30 g		under the heads of agreement so as to determine what remedial actions are needed to
		charge for fire assay’). In other cases more explanation may be required, such as where there is coarse gold that has inherent sampling problems. Unusual commodities or mineralisation types (eg submarine nodules) may warrant disclosure of	•	bring exploration results up to JORC standards. Such actions may include resampling of drill core, surveying drill collars, etc, in addition to further exploration work. Spero NTW diamond core was logged and sample intervals assigned based on the geological contacts.
		detailed information.	•	The core to be sampled was sawn in half and bagged according to sample intervals.
			•	Samples were cut, measured and bagged by Spero employees.
			•	Spero diamond core samples were processed at ALS or Core Resources laboratory
				where they were crushed and split to 3kg then pulverized to 85% passing 75 microns.
			•	Surface samples were taken using a rock drill with a short steel for control, a large 52mm
				reaming bit was used to ensure the drill chipped off samples and didn't begin to collar.
				Samples were taken across the high-grade mineralisation from footwall to hanging wall at
				5m intervals along strike. Samples were pulverized to 85% passing 75 microns at Core
				Resources Laboratory.
			•	Representative sampling of a combined mineralisation/waste batch and representative
				samplingof a mineralisation onlywere taken byblindgrab x 2 for everytonne from the

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Criteria	JORC Code explanation	Commentary	Commentary
			polyweave bulk bags and placed in a drum that was mixed and then samples taken from
			this drum for analysis. Samples were pulverized to 85% passing 75 microns at Core
			Resources Laboratory (See Tables 6 & 7).
Drilling	• Drill type (eg core, reverse circulation, open-hole	•	All Spero drilling is NTW Diamond drilling (core), with core collected using a standard
techniques	hammer, rotary air blast, auger, Bangka, sonic, etc)		tube. Core was not oriented.
	and details (eg core diameter, triple or standard tube, depth of diamond tails, face-sampling bit or other type,	•	EZ drilling of MZP245a was NQ diamond core with core collected using a standard tube
	whether core is oriented and if so, by what method,
	_etc). _
Drill sample	• Method of recording and assessing core and chip	•	Core recovery in holes MZSFW1-8 was 100% below 0.5m
recovery	sample recoveries and results assessed.	•	Core recovery in holes MZSHW2-3 was 100% below 1.0m
	• Measures taken to maximise sample recovery and	•	Minor core loss in MZSHW1 from 26.2m of 0.4m due to a vug of sulphide mineralisation
	ensure representative nature of the samples.
	• Whether a relationship exists between sample
	recovery and grade and whether sample bias may
	have occurred due to preferential loss/gain of
	fine/coarse material.
Logging	• Whether core and chip samples have been	•	Spero core has been geologically logged but not oriented
	geologically and geotechnically logged to a level of
	detail to support appropriate Mineral Resource
	estimation, mining studies and metallurgical studies.
	• Whether logging is qualitative or quantitative in nature.
	Core (or costean, channel, etc) photography.
	• The total length and percentage of the relevant
	_intersections logged. _
Sub-sampling	• If core, whether cut or sawn and whether quarter, half	•	Core from EZ245a was filleted (i.e. a sliver sawn off the side) in 3m max. lengths by EZ.
techniques and sample preparation	or all core taken. • If non-core, whether riffled, tube sampled, rotary split, etc and whether sampled wet or dry. • For all sample types, the nature, quality and appropriateness of the sample preparation technique. • Quality control procedures adopted for all sub-	• •	Subsequent duplicate sampling by Spero of the high-grade interval (80.82-81.45m) was quarter core Core was sawn in half using a diamond core saw and half core was sent to ALS Brisbane via Core Resources for assay. For MZSFW1-8 sample intervals ranged from 2.5m to 7.1m.
	sampling stages to maximise representivity of	•	For MZSHW1-4 sample intervals ranged from 0.5m to 1.1m.
	samples.	•	No duplicate sampling has yet been conducted on the Spero core
	• Measures taken to ensure that the sampling is
	representative of the in-situ material collected,

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Criteria	JORC Code explanation	Commentary	Commentary
	including for instance results for field
	duplicate/second-half sampling.
	• Whether sample sizes are appropriate to the grain
	_size of the material being sampled. _
Quality of	• The nature, quality and appropriateness of the	•	For EZ hole 245a samples were submitted by EZ to Analabs in Cooed, Tasmania and
assay data and laboratory tests	assaying and laboratory procedures used and whether the technique is considered partial or total. • For geophysical tools, spectrometers, handheld XRF instruments, etc, the parameters used in determining the analysis including instrument make and model, reading times, calibrations factors applied and their	•	analysed for Cu, Pb, Zn, Ag, Fe and Mn by A.A.S. after nitric/perchloric acid digestion, for As by A.A.S. after vapor Hydride generation and for Sn by pressed powder XRF Testing method for holes MZSFW1-6 was 4 acid digest with ICP scan for common elements in Ores, Aqua Regia digest with ICP scan for high concentrations of As, Ge, Hg, Sb in ores at Core Resources Laboratory
	derivation, etc.	•	Testing Method for holes MZSFW7& MZSFW8 was Ag by aqua regia digestion, ICP-AES
	• Nature of quality control procedures adopted (eg		or AAS and Samples are also analysed by XRF following a lithium borate fusion with the
	standards, blanks, duplicates, external laboratory checks) and whether acceptable levels of accuracy (ie lack of bias) and precision have been established.	•	addition of strong oxidising agents to decompose sulphide-rich ores at ALS Burnie Testing method for the holes MZSHW1-4 was 4 acid digest with ICP scan for common elements in Ores, Aqua Regia digest with ICP scan for high concentrations of As, Ge,
			Hg, Sb in ores at Core Resources Laboratory
		•	Testing method for surface samples and bulk samples was 4 acid digest with ICP scan
			for common elements in Ores, Aqua Regia digest with ICP scan for high concentrations
			of As, Ge, Hg, Sb in ores at Core Resources Laboratory
		•	No Standards, blanks or duplicates were use in the analysis of Spero diamond core
Verification of	• The verification of significant intersections by either	•	An independent geologist form Mining One Consultants has geologically logged the
sampling and assaying	independent or alternative company personnel. • The use of twinned holes. • Documentation of primary data, data entry procedures, data verification, data storage (physical	• •	Spero diamond holes and reviewed and modelled the laboratory results in Leapfrog Geo No twin holes have yet been drilled. Commercial laboratory certificates have been received from ALS.
	and electronic) protocols.
	• _Discuss any adjustment to assay data. _
Location of	• Accuracy and quality of surveys used to locate drill	•	A permanent base station was established with RTK GPS central to the project area
data points	holes (collar and down-hole surveys), trenches, mine		using GDA94.
	workings and other locations used in Mineral Resource estimation. • Specification of the grid system used. • Quality and adequacy of topographic control.	• •	Drill holes collars and orientation and rock chip sample locations were picked up with a theodolite. All locations are reported in GDA94 MGA Zone 55

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Criteria	JORC Code explanation	Commentary
		.
Data spacing	• Data spacing for reporting of Exploration Results.	•Spero sampling has composited the high-grade mineralisation for each of the diamond drill
and	• Whether the data spacing and distribution is sufficient	holes into one sample. Sample analysis of the remainer of the core is yet to be undertaken
distribution	to establish the degree of geological and grade
	continuity appropriate for the Mineral Resource and
	Ore Reserve estimation procedure(s) and
	classifications applied.
	• _Whether sample compositing has been applied. _
Orientation of	• Whether the orientation of sampling achieves	•The azimuth of all diamond drill holes were oriented approx. perpendicular to the strike
data in	unbiased sampling of possible structures and the	direction of the mineralisation
relation to	extent to which this is known, considering the deposit	•Limited access has meant the diamond holes MZSFW1-8 have been drilled into the
geological	type.	footwall of the mineralisation and intercept at a steep angle to the mineralisation causing
structure	• If the relationship between the drilling orientation and	intercepts that are significantly greater than true width.
	the orientation of key mineralised structures is	•Diamond Holes MZSHW1-4 and EZ245a are drilled from the hanging wall and oriented
	considered to have introduced a sampling bias, this	closer to perpendicular to the dip of the zone of mineralisation
	should be assessed and reported if material.
Sample	• The measures taken to ensure sample security.	•All Spero samples have been overseen by the Project Manager during transport from site
security		to the assay laboratories.
Audits or	• The results of any audits or reviews of sampling	•No audits or reviews have yet been undertaken
reviews	techniques and data.

Section 2 Reporting of Exploration Results (Criteria listed in the preceding section also apply to this section.)

	Criteria	JORC Code explanation	Commentary
	Mineral	• Type, reference name/number, location and	•The Montezuma Project contains two tenements EL7/2019 and 2M/2023
	tenement and	ownership including agreements or material issues	•The Granville Project contains 3 tenements EL9/2019, 2M/2018 & 32M/1988
	land tenure	with third parties such as joint ventures, partnerships,	•Spero and related entities and parties to the HOA have a 100% interest in these
	status	overriding royalties, native title interests, historical	tenements
		sites, wilderness or national park and environmental
		settings.
		• The security of the tenure held at the time of reporting
		along with any known impediments to obtaining a
		_licence to operate inthe area. _

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Criteria JORC Code explanation Commentary	Criteria JORC Code explanation Commentary	Criteria JORC Code explanation Commentary
Exploration done by other parties • Acknowledgment and appraisal of exploration by other parties. •Electrolytic Zinc Company (EZ) discovered Montezuma while exploring for tin. EZ completed 2 diamond holes including MZP245a that intersected the Antimony/Silver/Lead mineralisation in 1983. •The Montezuma antimony-silver-lead deposit is defined by Spero that undertook surface sampling of the exposed mineralised structure over 50m strike length, development face sampling and 12 diamond drill holes which have intercepted high-grade mineralisation down to a depth of 80m. The Montezuma antimony-silver-lead deposit remains open to the north, south and at depth.
Geology • Deposit type, geological setting and style of mineralisation. •The Montezuma antimony-silver-lead deposit is a structurally control lode emplaced primarily within the well-known Montezuma fault and hosted by a sequence of turbidites. Antimony and lead are contained within Jamesonite, a lead-iron-antimony sulphide mineral (Pb4FeSb6S14) and is a late-stage hydrothermal mineral forming at moderate to low temperatures. Silver is primarily present as tetrahedrite.
Drill hole Information • A summary of all information material to the understanding of the exploration results including a tabulation of the following information for all Material drill holes: o easting and northing of the drill hole collar o elevation or RL (Reduced Level – elevation above sea level in metres) of the drill hole collar o dip and azimuth of the hole o down hole length and interception depth o hole length. • If the exclusion of this information is justified on the basis that the information is not Material and this exclusion does not detract from the understanding of the report, the Competent Person should clearly explain why this is the case. •	Hole_ID Easting Northing RL Azi Dip Depth From To Interval ETW
	m m m deg deg m m m m m
	MZSHW1 373167.1 5364168.1 634.5 255 -45 31.50 21.00 21.50 0.50 0.5
	MZSHW2 373167.1 5364168.1 634.5 255 -60 36.00 22.90 24.00 1.10 1.0
	MZSHW3 373167.6 5364167.2 634.5 235 -60 34.50 28.50 29.20 0.70 0.5
	MZSHW4 373167.6 5364167.2 634.5 235 -50 34.50 Pending
	MZSFW1 373147.2 5364147.8 630.1 105 -40 12.50 4.50 11.60 7.10 2.3
	MZSFW2 373146.4 5364148.1 629.8 105 -48 21.00 12.10 17.85 5.75 1.7
	MZSFW3 373147.4 5364152.0 630.0 65 -45 16.10 9.40 12.20 2.80 1.0
	MZSFW4 373148.6 5364152.2 630.3 65 -42 12.70 7.50 10.50 3.00 1.2
	MZSFW5 373148.2 5364155.4 630.5 33 -48 8.50 3.30 8.20 4.90 0.5
	MZSFW6 373148.7 5364157.0 630.7 31 -40 7.60 3.00 6.46 3.46 0.6
	MZSFW7 373142.0 5364143.0 630.0 105 -40 30.00 16.70 20.70 4.00 1.3
	MZSFW8 373142.0 5364143.0 630.0 105 -30 18.00 11.10 13.60 2.50 1.2
	MZP245A 373196.9 5364188.1 636.0 241 -78 374.00 80.85 81.45 0.60 0.3
Data aggregation methods • In reporting Exploration Results, weighting averaging techniques, maximum and/or minimum grade truncations (eg cutting of high grades) and cut-off grades are usually Material and should be stated. • Where aggregate intercepts incorporate short lengths of high-grade results and longer lengths of low-grade results, the procedure used for such aggregation •For •The into	the Spero results there has been no cut-off applied to the assay grades zone of high-grade mineralisation for each Spero diamond hole has been composited one sample

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Criteria	JORC Code explanation	Commentary
	should be stated and some typical examples of such
	aggregations should be shown in detail.
	• The assumptions used for any reporting of metal
	_equivalent values should be clearly stated. _
Relationship	• These relationships are particularly important in the	•Refer ETW in table above
between	reporting of Exploration Results.
mineralisation	• If the geometry of the mineralisation with respect to
widths and	the drill hole angle is known, its nature should be
intercept	reported.
lengths	• If it is not known and only the down hole lengths are
	reported, there should be a clear statement to this
	_effect(eg ‘down hole length, true width not known’). _
Diagrams	• Appropriate maps and sections (with scales) and	•Refer Figures 5, 6, 8, 15 & 16
	tabulations of intercepts should be included for any
	significant discovery being reported These should
	include, but not be limited to a plan view of drill hole
	_collar locations and appropriate sectional views. _
Balanced	• Where comprehensive reporting of all Exploration	•All analysis has been reported. Refer tables 1,2,3, 6 & 7
reporting	Results is not practicable, representative reporting of
	both low and high grades and/or widths should be
	practiced to avoid misleading reporting of Exploration
	_Results. _
Other	• Other exploration data, if meaningful and material,	•Development of portal box cut and exploration drive has commenced with samples taken
substantive	should be reported including (but not limited to):	from three development faces up to the initial adit face, each representing a 2.4m mining
exploration	geological observations; geophysical survey results;	cut (refer Table 5)
data	geochemical survey results; bulk samples – size and	•Development of a portal box cut and the commencement of an exploration drive has
	method of treatment; metallurgical test results; bulk	produced stockpiled mineralisation. Representative sampling of a combined
	density, groundwater, geotechnical and rock	mineralisation/waste batch and a mineralisation only batch (Refer tables 6&7)
	characteristics; potential deleterious or contaminating	•Core Resources has completed flowsheet design, test work and engineering plans for the
	substances.	Montezuma Antimony Project. This work has involved developing an innovative approach
		to recovering antimony from Jamesonite, whilst recovering silver and lead by-products in a
		low-cost and straightforward process flowsheet that could be implemented on site using
		readily available equipment
		•Metallurgical test work (See Figure 13) on a batch of development mineralisation involved
		bulk leaching, hydrocycloning remaining solids to produce a separate a Pb/Ag product
		(SeeTable 8), oxidation, crystallizationand precipitationofanantimony compoundwitha

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Criteria	JORC Code explanation	Commentary
		90% antimony recovery and 47% antimony content by weight was achieved. The resultant
		product sodium pyroantimonate (Na4Sb2O7) is primarily used as a glass clarifier
		•Further metallurgical work is needed to determine silver and lead recoveries, however
		high-grade concentrate grading 2,575 g/t Ag and 60% Pb has already been achieved.
Further work	• The nature and scale of planned further work (eg tests	•Beside underground development and drilling, initial assessment work will be carried out
	for lateral extensions or depth extensions or large-	to determine the best approach to define deposit extensions as well as potential parallel
	scale step-out drilling).	mineralised structures
	• Diagrams clearly highlighting the areas of possible
	extensions, including the main geological
	interpretations and future drilling areas, provided this
	_information is not commercially sensitive. _

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