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LOYAL METALS LTD Capital/Financing Update 2023

Feb 28, 2023

65244_rns_2023-02-28_d18293fe-d4ef-44c7-83ae-28c8d075772a.pdf

Capital/Financing Update

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ASX:LLI
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ASX Announcement | 1 March 2023

High Resolution Aeromagnetic Survey Completed at Trieste Lithium Project to Support Pre-emptive Drilling Permit Application - Updated

Highlights:

  • A high-resolution aeromagnetic survey has been completed across the most prospective greenstone targets in the northwest section of the Trieste Lithium Project.

  • The survey has been conducted ahead of the field program to support the preparation of a pre-emptive drilling application enabling a fast-tracked drilling campaign.

  • Trieste Lithium Project is a large-scale lithium project located 14km east of Winsome Resources’ (ASX: WR1) Adina Lithium Project’s drill hole that recently recorded a significant lithium mineralised intercept[(1)] .

  • Trieste Lithium Project contains 153 logged pegmatite outcrop observations with 35 ‘A-Type’ pegmatite samples (I1A) - which is the same classification (and 11 times more) as originally sampled at Winsome Resources’ (ASX: WR1) Adina Lithium Project.

Loyal Lithium Limited ( ASX:LLI ) ( Loyal Lithium , LLI or the Company ) is pleased to announce that it has completed a high-resolution aeromagnetic survey across prospective greenstone targets at the Trieste Lithium Project (“ Project ”). The survey will support a pre-emptive drilling application enabling a fasttracked drilling campaign at the project, in the event of a successful inaugural field program. The 251 km[2] project is 8.6 times larger than Winsome Resources' Adina Lithium Project and contains 153 logged pegmatite outcrop observations and 35 'A-Type' (I1A) pegmatite samples.

Loyal Lithium’s Managing Director, Mr Adam Ritchie, commented:

“The prospectivity of the Trieste Lithium Project warrants an aggressive approach.”

“Although a high-resolution aeromagnetic survey and the submission of a drilling application typically follows a successful infield program – we are planning for success. Conducting these works now, enables us to fast track a drilling campaign in the event of a successful inaugural field program.”

“The opportunity at Trieste is exciting and we will continue to look for opportunities to fast track our exploration activates at Trieste.”

A: 5/10 Johnston St, Peppermint Grove WA, 6011

ASX Code: LLI ACN : 644 564 241 www.loyallithium.com

P: (08) 6245 2490 E: [email protected]

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HIGH-RESOLUTION AEROMAGNETIC SURVEY

Prospectair Geosurveys Inc. has completed a helicopter-borne high-resolution magnetic data survey over a 23 square kilometre area of the northwest Trieste claims, with a total of 555-line km flown at 50m line spacings. Prospectair is a highly regarded geophysics contractor, completing similar surveys on Patriot Battery Metals’ Corvette (ASX:PMT, TSXV:PMET) lithium discovery [3] , showing the utility of highresolution magnetic data in lithium pegmatite exploration.

The area surveyed is highly prospective and contains a noted A Type pegmatite with a high concentration of resistive outcrop occurrences within and around the greenstone. The first pass raw high-resolution magnetic data has been received (figure 1), with levelling and findings report pending.

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Figure 1 - Trieste Lithium Project –High-Resolution Aeromagnetic Image - First Pass Raw Data

High-resolution magnetic data has the potential to save significant exploration time and expense by identifying areas of demagnetisation (lithium pegmatites are not magnetic) and favourable structures around large volumes of volcanic and volcano-sedimentary rocks (greenstones), where pegmatites are more likely to intrude. The data can also be useful in inferring potential lithium source intrusives and identification of concealed (undercover) lithium pegmatite extensions.

A: 5/10 Johnston St, Peppermint Grove WA, 6011

ASX Code: LLI ACN : 644 564 241 www.loyallithium.com

P: (08) 6245 2490 E: [email protected]

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The successful collection of high-resolution magnetic data could alter the priorities within the inaugural field program by providing further support for known pegmatites outcrops. The successful collection of high-resolution magnetic data could result in further deployment across other prospective targets at the Trieste Lithium Project.

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Figure 1 –Trieste Lithium Project (west) – Virginia Mines Local Interpretation (1:10k) overlay

Although, the Trieste Lithium Project has never been explored for lithium, historical data has 153 logged pegmatite outcrop observations, 35 of which are the same classification as those identified at Winsome Resources’ (ASX: WR1) Adina Lithium Project. This is a notable 11 times more ‘A Type’ Pegmatites observations (I1A) than Adina. The historical data also includes 118 ‘G Type’ mapped Pegmatite observations (I1G). Both ‘A Type’ & ‘G Type’ are prospective for lithium.

A: 5/10 Johnston St, Peppermint Grove WA, 6011

ASX Code: LLI ACN : 644 564 241 www.loyallithium.com

P: (08) 6245 2490 E: [email protected]

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PRE-EMPTIVE DRILLING APPLICATION

The high-resolution magnetics survey will support the preparation of a pre-emptive drilling permit application. The data obtained will assist with the application by providing insight into the geological orientation and inferred extensions of the pegmatites, ultimately defining the potential drill locations.

A pre-emptive drilling application will also fast track a future expanded drilling program as it involves foundational activities, creates project awareness and establishes relationships with key stakeholders, such as first nations, the environment review board and other government and regulatory bodies.

THE TRIESTE LITHIUM PROJECT

The 100% owned Trieste Lithium Project is a large-scale lithium Project located 14km east of Winsome Resources’ (ASX: WR1) Adina Lithium Project drill hole that recently recorded a significant Lithium mineralised intercept of 1.34% over 107.6m[(1)] (Figure 3). Loyal Lithium acquired the Trieste Lithium Project in October 2022 - prior to the recent drill campaign results at the Adina Lithium Project.

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Figure 3 - Trieste Lithium Project – GSQ Region Interpretation (1:100k)

Loyal Lithium is the largest land holder within the highly prospective Trieste Greenstone Belt. The Trieste Lithium Project covers 251 km[2] , which is 8.6 times larger than Winsome Resources’ (ASX: WR1) Adina Lithium Project. The project area includes a 39 km long contact zone in the Trieste Greenstone Belt with a significant amount of historical data. Although the Project hasn’t ever previously been explored for lithium, it does contain an anomalous historical lithium assay site (180ppm Li).

This announcement has been authorised for release by Loyal Lithium’s Board of Directors

For more information:

Adam Ritchie

Managing Director [email protected] +61 (0) 403 462 383

Jane Morgan

Investor & Media Relations [email protected] + 61 (0) 405 555 618

A: 5/10 Johnston St, Peppermint Grove WA, 6011

ASX Code: LLI

P: (08) 6245 2490 E: [email protected]

ACN : 644 564 241 www.loyallithium.com

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About Loyal Lithium

Loyal Lithium Limited (ASX: LLI) is a well-structured listed resource exploration company with projects in Tier 1 North American mining jurisdictions in the James Bay Lithium District in Quebec, Canada and Nevada, USA. Through the systematic exploration of its projects, the Company aims to delineate JORC compliant resources, creating value for its shareholders.

Future Performance

This announcement may contain certain forward-looking statements and opinion Forward-looking statements, including projections, forecasts and estimates, are provided as a general guide only and should not be relied on as an indication or guarantee of future performance and involve known and unknown risks, uncertainties, assumptions, contingencies and other important factors, many of which are outside the control of the Company and which are subject to change without notice and could cause the actual results, performance or achievements of the Company to be materially different from the future results, performance or achievements expressed or implied by such statements. Past performance is not necessarily a guide to future performance and no representation or warranty is made as to the likelihood of achievement or reasonableness of any forward-looking statements or other forecast. Nothing contained in this announcement, nor any information made available to you is, or and shall be relied upon as, a promise, representation, warranty or guarantee as to the past, present or the future performance of Loyal Lithium Limited.

Qualified and Competent Person

The information in this announcement that relates to exploration results, is based, and fairly reflects, information compiled by Mr Darren Allingham, who is the Company’s geologist. Mr Allingham is a Fellow of the Australian Institute of Geoscientists. Mr Allingham has sufficient experience which is relevant to the style of mineralisation and type of deposit under consideration and the activity he is undertaking to qualify as a Competent Person as defined in the 2012 Edition of the Australasian Code for Reporting of Exploration Results and Mineral Resources (JORC Code). Mr Allingham consents to the inclusion in the announcement of the matters based on the information in the form and context in which it appears.

References

1 ASX Announcement WR1: 6th January 2023. Strong lithium mineralisation recorded from first Adina drill hole assays

2 ASX Announcement LLI: 20th October 2022. Monger triples land position with the acquisition of the Trieste Lithium Project in the James Bay Lithium District, Quebec

3 https://patriotbatterymetals.com/patriot-battery-metals-completes-property-wide-remote-sensing-surveyand-engages-prospectair-for-high-resolution-heliborne-magnetic-survey-at-the-corvette-fci-propertyquebec-canada/

A: 5/10 Johnston St, Peppermint Grove WA, 6011

ASX Code: LLI ACN : 644 564 241 www.loyallithium.com

P: (08) 6245 2490 E: [email protected]

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JORC Code, 2012 Edition – Table 1 report template

Section 1 Sampling Techniques and Data

(Criteria in this table apply to all preceding sections.)

Criteria JORC Code explanation Commentary
Nature and quality of sampling (e.g.,
cut channels, random chips, or specific
specialised industry standard
measurement tools appropriate to the
minerals under investigation, such as
down hole gamma sondes, or
handheld XRF instruments, etc). These


• High-Resolution Heliborne Magnetic
Survey by Prospectair Geosurveys, 15
chemin de l’Étang Gatineau, Québec,
J9J 3S9, acquired high-resolution
magnetic data in the LG-4 area of the
Baie-James Region, Québec.
• The ideal spacing did not vary by more
than 30 % over a distance of more
examples should not be taken as
limiting the broad meaning of
sampling.
than 300m. No re-flights were
attempted as line spacing did not
exceed this tolerance. The minimum
Include reference to measures taken
to ensure sample representivity and
length of any traverse or tie-line was
3 km.
Sampling
techniques
the appropriate calibration of any
measurement tools or systems used.
Aspects of the determination of
mineralisation that are Material to the

• Aircraft Speed and Altitude: The
helicopter was flown at approximately
120 km/h in gentle terrain. Under
these conditions, the distance
Public Report.
In cases where ‘industry standard’
work has been done this would be
relatively simple (e.g., ‘reverse
circulation drilling was used to obtain
1 m samples from which 3 kg was
between samples along survey lines
were typically 3.3 meters.
• This was magnetics only data
acquisition, so nominal terrain
clearance of the helicopter was set to
45 m with smooth line-to-line
pulverised to produce a 30 g charge
for fire assay’). In other cases, more
explanation may be required, such as
where there is coarse gold that has
compatible draping of topography.
The nominal mag detector ground
clearance was approximately 25
meters.
inherent sampling problems. Unusual
commodities or mineralisation types
(e.g., submarine nodules) may warrant
disclosure of detailed information.
• Altitude was ultimately controlled at
the discretion of the helicopter pilot
with safety held in priority
consideration.
Whether core and chip samples have
been geologically and geotechnically
logged to a level of detail to support
appropriate Mineral Resource
Logging estimation, mining studies and
metallurgical studies.
Whether logging is qualitative or
• No geological logging occurred as this
is a geophysical survey
quantitative in nature. Core (or
costean, channel, etc) photography.
The total length and percentage of the
relevant intersections logged.

A: 5/10 Johnston St, Peppermint Grove WA, 6011

ASX Code: LLI ACN : 644 564 241 www.loyallithium.com

P: (08) 6245 2490

E: [email protected]

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Criteria JORC Code explanation Commentary
If core, whether cut or sawn and
whether quarter, half or all cores
taken.
If non-core, whether riffled, tube
sampled, rotary split, etc and whether
sampled wet or dry.
For all sample types, the nature,
Sub- quality and appropriateness of the
sampling
techniques
and sample
preparation
sample preparation technique.
Quality control procedures adopted
for all sub-sampling stages to
maximise representivity of samples.
Measures taken to ensure that the
• No sub-sampling techniques and
sample preparation occurred as this is
a geophysical survey
sampling is representative of the in-
situ material collected, including for
instance results for field
duplicate/second-half sampling.
Whether sample sizes are appropriate
to the grain size of the material being
sampled.
• To encourage improved magnetic data
corrections, “racetrack flying” was
NOT done. Adjacent flight lines were
flown consecutively in a regular
progression. Flying commenced at the
end of the block and proceeded
The nature, quality and towards the other end until the block
appropriateness of the assaying and was completed.
laboratory procedures used and
whether the technique is considered PROSPECTAIR provided the following
partial or total. instrumentation for this survey:
For geophysical tools, spectrometers, • Airborne Magnetometers Geometrics
Quality of
assay data
and
handheld XRF instruments, etc, the
parameters used in determining the
analysis including instrument make
G-822A: The heliborne magnetic
sensor consisted of a non-oriented
(strap-down) optically-pumped
laboratory
tests
and model, reading times, calibrations
factors applied and their derivation,
Caesium split beam sensor. These
magnetometers have a sensitivity of
etc. 0.005 nT and a range of 15,000 to
Nature of quality control procedures 100,000 nT with a sensor noise of less
adopted (e.g., standards, blanks, than 0.02 nT. The heliborne sensor is
duplicates, external laboratory checks)
mounted in a bird made of
and whether acceptable levels of nonmagnetic material located 19 m
accuracy (i.e., lack of bias) and below the helicopter when flying.
precision have been established. Total magnetic field measurements
were recorded at 10 Hz in the aircraft.
The ground system recording
magnetic data at 1 sample every
second.
• An OmniStar Real-Time differential
GPS navigation systemprovided real-

A: 5/10 Johnston St, Peppermint Grove WA, 6011

ASX Code: LLI

P: (08) 6245 2490

ACN : 644 564 241 www.loyallithium.com

E: [email protected]

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Criteria JORC Code explanation Commentary
time guidance for the pilot and to
position data to an absolute accuracy
of better than 5 m. The Omnistar
receiver provided real-time
differential GPS for the Agis on-board
navigation system. The differential
data set was relayed to the helicopter
via the Omnistar network appropriate
geosynchronous satellite for the
survey location. The receiver
optimized the corrections for the
current location.
• Airborne Navigation and Data
Acquisition System: Pico-Envirotec
AGIS-XP system. The Airborne
Geophysical Information System
(AGIS-XP) is advanced, software driven
instrument specifically designed for
mobile aerial or ground geophysical
survey work. The AGIS
instrumentation package included an
advanced Satellite navigation (GPS),
real-time flight path information that
was displayed over a map image (BMP
format) of the area, and reliable data
acquisition software. Thanks to simple
interfacing, the radar and barometric
altimeters, the RSI spectrometer and
the Geometrics magnetometer were
easily integrated into the system and
digitally recorded. Automatic
synchronization to the GPS position
and time provided very close
correlation between data and
geographical position. The AGIS is
equipped with a software suite
allowing easy maintenance, upgrades,
data QC, and project and survey area
layout planning. A Magnetic Base
Station GEM GSM-19 Overhauser
magnetometer, a computer
workstation and a complement of
spare parts and test equipment serve
as the base station. PROSPECTAIR
establish the base station in a secure
location with low magnetic noise. The
GSM-19 magnetometer had
resolution of 0.01 nT, and 0.2 nT
accuracyover its operatingrange of

A: 5/10 Johnston St, Peppermint Grove WA, 6011

ASX Code: LLI ACN : 644 564 241 www.loyallithium.com

P: (08) 6245 2490

E: [email protected]

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Criteria JORC Code explanation Commentary
20,000- to 100,000 nT. Its data output
rate is 1 Hz.
• A Free Flight Radar Altimeter
measured height above ground to a
resolution of 0.5 m and an accuracy of
5% over a range up to 2,500 ft. The
radar altimeter data was recorded and
sampled at 10 Hz.
• The digital barometric pressure sensor
measured static pressure to an
accuracy of ± 4 m and resolution of 2
m over a range up to 30,000 ft above
sea level. The barometric altimeter
data were sampled at 10 Hz.
• Survey helicopter was a Eurocopter
EC120 (registration C-GEDI) that
handled efficiently the equipment
load and the required survey range.
• DIURNAL ACTIVITY: Diurnal activity did
not exceed 5nT per minute so no re-
flights occurred.
• Base-station magnetic data for the
removal of diurnal variations were
collected.
• A 0.5 nT magnetic noise envelope was
Verification
of sampling
and
assaying


The verification of significant
intersections by either independent or
alternative company personnel.
The use of twinned holes.
Documentation of primary data, data
entry procedures, data verification,
data storage (physical and electronic)
exceeded over 500 metres line-length
so no re-flights occurred.
• The final data will be lag-corrected
and levelled using both tie-line
leveling and micro-levelling.
• The data will be levelled to the degree
that there will be no flight line striping
visible in the first vertical derivative of
protocols.
Discuss any adjustment to assay data.
the magnetic data and minimal flight
line striping visible in the second
vertical derivative of the magnetic
data. This shall be ascertained using
the current industry standard
GEOSOFT version 2022.1 or higher.
Leveling shall be done with no
amplitude loss for any frequency
content in the magnetic data.
Accuracy and quality of surveys used • The survey block was defined by the
to locate drill holes (collar and down- digital kml file delivered with the
Location of hole surveys), trenches, mine workings proposal, which was created based on
data points and other locations used in Mineral
Resource estimation.
the information provided by LLI and
adjusted for the 3 km minimal line
Specification of the grid system used. length. The coordinates were given
Quality and adequacy of topographic with respect to NAD-83,UTM zone

A: 5/10 Johnston St, Peppermint Grove WA, 6011

ASX Code: LLI

P: (08) 6245 2490

ACN : 644 564 241 www.loyallithium.com

E: [email protected]

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Criteria JORC Code explanation Commentary
control. 18N.
Data spacing for reporting of
Exploration Results.
Whether the data spacing, and
• The survey was undertaken with
traverse lines oriented 178 in order to
Data
spacing and
distribution


distribution is sufficient 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

properly map the dominant
magnetic/geological strike, and with a
50m line spacing. Control lines flown
perpendicular to traverse lines and at
a 500 m line spacing. This led to a total
survey distance of 555 l-km.
been applied.
Whether the orientation of sampling
achieves unbiased sampling of
possible structures and the extent to
Orientation
of data in
relation to
geological

which this is known, considering the
deposit type.
If the relationship between the drilling
orientation and the orientation of key

• Flight lines were oriented
perpendicular to the D1 structure and
geological contacts
structure mineralised structures is considered
to have introduced a sampling bias,
this should be assessed and reported
if material.
• Data was downloaded nightly and
Sample
security
The measures taken to ensure sample
security.
uploaded to the central office.
Multiple copies of the dataset were
generated to minimise the potential
for data loss.
Audits or The results of any audits or reviews of • No audits or reviews of sampling
reviews sampling techniques and data. techniques or data were undertaken.

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, • Loyal Lithium Ltd. (100% subsidiary
tenement and
location and ownership including
Project Trieste Lithium Inc.) (LLI) and
land tenure agreements or material issues with Osisko Development Corporation
status third parties such as joint ventures, have signed a Binding Letter of
partnerships, overriding royalties, Intent pursuant to which ensures
native title interests, historical sites, that LLI has exclusivity to work
wilderness or national park and towards the formulation of an
environmental settings. agreement to acquire 100% of the
The security of the tenure held at the
Mineral Claims.
time of reporting along with any
known impediments to obtaining a
licence to operate in the area.

A: 5/10 Johnston St, Peppermint Grove WA, 6011

ASX Code: LLI

P: (08) 6245 2490

ACN : 644 564 241 www.loyallithium.com

E: [email protected]

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Criteria JORC Code explanation Commentary Commentary
Exploration Acknowledgment and appraisal of Historical work has not been
done by other
exploration by other parties.
assessed or appraised in this
parties announcement as this was a new
dataset collected
Regional exploration geological
mapping 1:130,000 scale has been
conducted historically only by the
government agency The Quebec
Geological Survey.
Geology Deposit type, geological setting and Archean aged Lithium in LCT type
style of mineralisation. pegmatites
Data In reporting Exploration Results, No data aggregation methods were
aggregation weighting averaging techniques, used as this is a geophysical survey
methods maximum and/or minimum grade
truncations (e.g., 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 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 No mineralisation has been reported
between important in the reporting of as this is a geophysical survey
mineralisation
Exploration Results.
widths and If the geometry of the mineralisation
intercept with respect to the drill hole angle is
lengths known, its nature should be
reported.
If it is not known and only the down
hole lengths are reported, there
should be a clear statement to this
effect (e.g., ‘down hole length, true
_width not known’). _
Diagrams Appropriate maps and sections (with Appropriate plan and location maps
scales) and tabulations of intercepts on regional and prospect scales are
should be included for any significant included in this ASX announcement.
discovery being reported These
should include, but not be limited to
aplan view of drill hole collar

A: 5/10 Johnston St, Peppermint Grove WA, 6011

ASX Code: LLI

P: (08) 6245 2490

ACN : 644 564 241 www.loyallithium.com

E: [email protected]

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Criteria JORC Code explanation Commentary
locations and appropriate sectional
views.
Balanced Where comprehensive reporting of • All survey results are reported
reporting all Exploration Results is not
practicable, representative reporting
of both low and high grades and/or
widths should be practiced avoiding
misleading reporting of Exploration
Results.
Other Other exploration data, if meaningful
• Geological descriptions included in
substantive and material, should be reported this announcement from the Quebec
exploration including (but not limited to): Geological Survey and a 1:130k
data geological observations; geophysical geological interpretation
survey results; geochemical survey
results; bulk samples – size and
method of treatment; metallurgical
test results; bulk density,
groundwater, geotechnical and rock
characteristics; potential deleterious
or contaminating substances.
Further work The nature and scale of planned • Given the encouraging results from
further work (e.g., tests for lateral this high-resolution geophysics
extensions or depth extensions or survey, more geophysical surveys
large-scale step-out drilling). will be planned including extending
Diagrams clearly highlighting the this survey across targets generated
areas of possible extensions, from a current work program of
including the main geological satellite data analysis
interpretations and future drilling
areas, provided this information is
not commercially sensitive.

A: 5/10 Johnston St, Peppermint Grove WA, 6011

ASX Code: LLI ACN : 644 564 241 www.loyallithium.com

P: (08) 6245 2490

E: [email protected]