M3 MINING LIMITED — Interim / Quarterly Report 2022

Oct 30, 2022

ASX Announcement

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QUARTERLY ACTIVITIES REPORT FOR THE PERIOD ENDING 30 SEPTEMBER 2022

HIGHLIGHTS

• M3 Mining progresses exploration at both the Victoria Bore Copper Project and Edjudina Gold Project

Edjudina Gold Project (100% owned)

• Completed maiden air-core drilling program at the Edjudina Gold Project, testing six of nine high priority targets identified by soil sampling, historic drilling and ground-based Sub-Audio Magnetic (SAM) surveys

• Results are expected to be received in November. A follow up drilling campaign is anticipated to be undertaken in Q1 CY2023

• Additional prospective tenure acquired adjacent to current project area

Victoria Bore Copper Project (100% owned)

• Completed a broad scale high resolution airborne magnetic and radiometric survey at the Victoria Bore Copper Project across all its tenements, with results and interpretation expected in early November.

• Subsequent to the end of the quarter in early October, the Company completed a followup reverse circulation (RC) drilling program to test high priority targets identified by the SQUID FLEM Survey announced in late July.

• M3 Mining will await the results of the drilling and airborne survey to assist in the planning of future exploration works, with any follow up exploration campaigns anticipated to commence in Q1 CY2023.

Corporate

• Well-funded for ongoing exploration activities in CY2023 cash as of 30 September 2022 of approximately $3.1 million.

• The Company also announced the results of the pro-rata entitlement basis, to subscribe for 3,199,936 New Shares worth A$383,992.32 from Eligible Shareholders. The remaining Shortfall Shares totalling a maximum of 6,102,650 raising up to A$732,318 will be placed by the Board in accordance with Section 1.7 of the Entitlement Offer Document in the coming weeks.

• Evaluation of potential project acquisition opportunities continue.

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Registered Address

Directors

Projects

www.m3mining.com.au

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M3 Mining Limited (ASX: M3M ) ( M3 Mining , the Company ) is pleased to provide an update on corporate and exploration activities during the September 2022 Quarter.

EXECUTIVE DIRECTOR SIMON ELEY:

“The September quarter saw progress for M3 Mining and both of its projects. Completion of the maiden drilling campaign at the Edjudina Gold Project during the quarter was highly encouraging, and we keenly await the results from this first pass exploration program. A follow up drilling program to test the three untested priority targets alongside any encouraging results in anticipated for Q1 CY 2023.

The Victoria Bore Copper Project continues to be progressed with a broad scale airborne magnetic and radiometric survey being completed through the quarter and a follow up RC drilling campaign commencing in early Q4 CY2022. Results from both these programmes are expected to be received before the end of the year and any follow up exploration campaigns will be determined by the results.

In addition to Victoria Bore and Edjudina, the M3 team is continuing to assess value accretive projects that could represent a significant opportunity for the Company and all shareholders.”

UPCOMING M3 NEWSFLOW

November 2022 – Gold assays to be received from maiden drilling campaign at Edjudina November 2022 – Victoria Bore Airborne Survey Results

November 2022 – Annual General Meeting

November – December 2022 – Victoria Bore assays from October 2022 drill program January 2023 Quarter – Follow up exploration at both Edjudina and Victoria Bore

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Projects

Edjudina Gold Project

The Edjudina Project is located approximately 150 km northeast of the regional city of Kalgoorlie in Western Australia. It covers a section of the established mineralized trend along the Keith-Kilkenny Tectonic Zone which hosts multiple significant gold discoveries (see Figure 1). Edjudina can be accessed via tarred and gravel roads while the tenement areas are readily accessible by gravel and station access roads.

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Figure 1. Edjudina Gold Project

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No large-scale mining has occurred within the tenement area, however historical near surface workings can be observed throughout the region, particularly within and along strike of the previous mines in the Yilgangi Mining Field.

While some phases of exploration have been completed historically, a large proportion of the grassroots exploration, such as aircore and RAB drilling, has been ineffective due to the depth of regolith cover in the region and the subsequent limited depth of historical drilling.

Since M3 Mining acquired the Edjudina Gold Project it has completed a Sub-Audio Magnetics (SAM) survey and broad soil sampling across its eastern tenement package.

During the September quarter M3 Mining completed its maiden air-core drilling program across four of the six tenements.

MAIDEN DRILLING CAMPAIGN

A total of 7,826m over 119 holes across six of the nine areas targeted were completed by Raglan Drilling. The drilling depths were generally deeper than expected and, subject to results, M3 Mining expects to return to Edjudina in the coming months to drill the remainder of the holes in this initial program.

The initial phase of this AC drilling program at Edjudina has tested six of nine high priority targets. The targets drilled included Rainbow 1 and 2, Rainbow North 1, 2 and 3 and Jump Up 1 (see Figure 2). The remaining targets to be drilled are Jump Up 2 – 4.

FUTURE PLANNED WORKS

Subject to results from this initial program, M3 Mining anticipates returning to test the remaining targets and complete any infill drilling as well as planning RC drilling to test the priority targets generated by the AC drilling program prior to year’s end or early 2023. The Company expects to receive the assay results from Edjudina in November. These results along with the findings from the drilling program will be released to market as soon as possible after they have been received.

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Figure 2 . Air-core Drilling Targets

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Victoria Bore Copper Project

The Victoria Bore Copper Project is centred on the historic Victoria Bore copper mine which produced high grade copper averaging circa 32.7% Cu for 62.5t of copper from near surface in the 1950’s[1] . The Victoria Bore Project is located approximately 120 km south of the coast town of Onslow and 130km southeast of Exmouth in Western Australia. The tenements lie adjacent to the Northwest Coastal Highway and are readily accessible by gravel tracks (see Figure 3).

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Figure 3. Victoria Bore Copper Project

• 1 Refer to M3 Mining Ltd IPO Prospectus, section 7.

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The small-scale historical Victoria Copper Mine was discovered around 1914, with workings covering a length of 130m via a series of shallow shafts, with the main shaft to a depth of 21m with three drives. Limited exploration has occurred within the tenement with no systematic exploration ever undertaken. A historic MLEM survey identified two shallow, relatively strong late time conductors, potentially associated with mineralisation.

Since M3 Mining acquired the Victoria Bore Project it has taken multiple rock chip samples around the historically mined area confirming the documented grades from historic activities with samples ranging from 6.8% up to 49% Cu[2] . The Company also completed a maiden drilling program, totaling 1,128m across 11 RC holes. The program confirmed the existence of a mineralised sulphide system beneath the historic Victoria Bore Mine. Downhole Electromagnetic (DHEM) surveys conducted in three of the deeper holes indicated that the conductors identified by the historic MLEM survey were sulphidic shales with a conductance of ~250 Siemen (S). Multiple smaller off-hole conductors were also identified that had much higher conductance levels of 30,000S and 10,000S.

The Company also completed a FLEM survey over the Victoria Bore area utilising SQUID sensor technologies. It was successful in identifying the presence of a strong conductor on the northern boundary of the survey (see Figure 4). The new target aligns with the northern extent of a NW trending magnetic anomaly. The magnetic trend appears to be terminated by a regional scale structure that is interpreted to trend approximately NE. The combination of an interpreted regional scale structure, highly conductive body, and regionally anomalous base metals is very encouraging.

2 Refer to M3 Mining IPO Prospectus, section 7.

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Figure 4. Channel 35x SQUID FLEM response with target overview

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During the September quarter and subsequently, M3 Mining completed a tenement wide airborne survey as well as completed a follow-up RC drilling campaign.

AIRBORNE MAGNETIC AND RADIOMETRIC SURVEY

The Company engaged specialist company Magspec Airborne Surveys to complete a broad scale magnetic and radiometric survey of the Company’s tenement package at Victoria Bore (one tenement granted, six pending).

The survey is expected to provide a quality high-resolution dataset for the Company to use to improve the definition of the known magnetic anomalies as well as improve its understanding of the regional geology and structural framework of the project area. The results are expected to be received in November with interpretation to closely follow.

FOLLOW-UP RC DRILLING

During October, the Company completed a follow-up RC drilling campaign in to test one of the offhole conductors alongside additional conductors identified by the SQUID FLEM Survey.

The program consisted of 607m across three holes and tested the two SQUID FLEM anomalies and the DHEM anomaly. Samples are currently being dispatched to Perth for analysis and results are expected prior to the end of the year.

FUTURE PLANNED WORKS

The Company awaits results from the recent airborne survey along with the recently completed drill program. A comprehensive review of the projects data will be undertaken with the aim of identifying additional targets in the Company’s tenure and planning work programs for Q1 CY2023.

Corporate

M3 Mining made applications for two exploration licences in the Edjudina area. The Company has been working with a party in relation to making these exploration licence applications and has also agreed to acquire a prospecting licence (P31/2131) from this party which is east of the exploration licence applications. The Company has agreed to issue 285,714 shares and pay $15,000 in relation to these new tenements. The expanded portfolio improves the Company’s ground position at the Edjudina Gold Project (see Figure 1).

Current cash as of 30 September 2022 was $3,138,368 and the Company remains well funded for its ongoing exploration activities.

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M3 Mining also commenced a non-renounceable pro-rata Entitlement Offer to Eligible Shareholders (“Entitlement Offer”) announced to the ASX on 29 September 2022, which closed on 17 October 2022.

The Company received valid applications, on a pro-rata entitlement basis, to subscribe for 3,199,936 New Shares worth A$383,992.32 from Eligible Shareholders. This represents approximately 34% of all New Shares offered under the Entitlement Offer.

The remaining Shortfall Shares totaling a maximum of 6,102,650 raising A$732,318 will be placed by the Board in accordance with Section 1.7 of the Entitlement Offer Document.

On completion of the Entitlement Offer, the Company is funded, through raising a total of approximately A$1.1m (before costs), to pursue the ongoing exploration of its projects.

M3 Mining has also been focused on assessing and evaluating strategic acquisition opportunities. Over the June quarter, multiple projects were reviewed by internal and external sources, however, no assessments have progressed to a later stage of assessment that would warrant notifying shareholders.

Financial

STATEMENT PURSUANT TO LISTING RULE 5.3.4

M3 Mining Limited provides the following additional information in accordance with Listing Rule 5.3.4.

Table 1 sets out a comparison of the use of funds to date compared to the Use of Funds Statement included in the Prospectus dated 26 May 2021. The Company was admitted to the Official List of ASX on 27 July 2021.

	Per Prospectus	Expenditure to date to 31
Use of Funds	Dated 26 May 2021	September 2022
	$	$
Exploration Activities	$2,720,000	$942,860
Salaries & Wages	$-	$192,143
Administration expenses and
	$2,233,843	$508,212
working capital

Table 1 . Use of Funds

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The Company considers that there are no material variances with the use of funds table in the Prospectus and the expenditure of funds to date other than the use of consultants to complete technical work on both Projects. Most funds continue to be spent on exploration.

For the purpose of Section 6 of the Appendix 5B, all payments made to related parties have been paid in relation to director fees.

Tenement Schedule

Tenement	Project	District	Status	Date	Term
E08/3220	Victoria Bore	Ashburton	Granted	4 June 2020	5 Years
E08/3326	Victoria Bore	Ashburton	Pending	10 February 2021	5 Years
E08/3427	Victoria Bore	Ashburton	Pending	9 September 2021	5 Years
E08/3428	Victoria Bore	Ashburton	Pending	9 September 2021	5 Years
E08/3429	Victoria Bore	Ashburton	Pending	9 September 2021	5 Years
E08/3430	Victoria Bore	Ashburton	Pending	9 September 2021	5 Years
E08/3431	Victoria Bore	Ashburton	Pending	9 September 2021	5 Years
E08/3440	Victoria Bore	Ashburton	Pending	9 September 2021	5 Years
E 31/1140	Edjudina	Yerilla	Granted	11 July 2017	5 Years
E 31/1141	Edjudina	Yerilla	Granted	11 July 2017	5 Years
E 31/1168	Edjudina	Yerilla	Granted	5 July 2018	5 Years
P 31/2113	Edjudina	Yerilla	Granted	21 December 2017	5 Years
E 31/1249	Edjudina	Yerilla	Granted	6 May 2020	5 Years
E 31/1258	Edjudina	Yerilla	Granted	26 June 2020	5 Years
E 31/1265	Edjudina	Yerilla	Pending	10 July 2020	5 Years
E 31/1344	Edjudina	Yerilla	Pending	16 September 2022	5 Years
E 31/1345	Edjudina	Yerilla	Pending	16 September 2022	5 Years
P 31/2131	Edjudina	Yerilla	Granted	4 December 2020	5 Years

Table 2 - M3 Mining Tenement Schedule – New tenements listed in Gold

Announcement References

Date	Title
27 Jul 2021	Prospectus
3 Nov 2021	High Grade Copper at Victoria Bore and drilling commences
1 Dec 2021	High priority gold targets identified at Edjudina
10 Feb 2022	Copper Intercepted in maiden drilling campaign
5 Jul 2022	Robust drill targets identified at Edjudina gold project
27 Jul 2022	M3 Mining discovers strong EM conductor at Victoria Bore
28 Sep 2022	M3 Mining expands strategic footprint at Edjudina
12 Oct 2022	M3 Mining Victoria Bore Update

Table 3 . ASX announcements referred to within report

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-END-

This announcement has been authorised by the Board of M3 Mining Ltd.

For further information please contact:

Simon Eley Executive Director M3 Mining Ltd

Media

Executive Director David Tasker M3 Mining Ltd Chapter One Advisors T +61 8 6365 5200 T +61 433 112 936 E info@m3mining.com.au E dtasker@chapteroneadvisors.com.au

About M3 Mining

M3 Mining Limited (ASX:M3M) is a Perth-based mineral exploration company focused on creating value for shareholders through exploration and development of a high-quality copper and gold exploration portfolio. M3 Mining’s projects are strategically located in regions surrounded by major mining groups with both projects having experienced minimal modern, systematic exploration. The Company’s strategy is to apply a systematic approach to the assessment and prioritisation of its projects, all of which have the potential to produce material discoveries.

The information in this announcement that relates to exploration results is based on and fairly represents information compiled by Jeremy Clark, a competent person who is a member of the AusIMM. Jeremy Clark is the sole director of Lily Valley International Pty. Ltd. Jeremy Clark has sufficient experience that is relevant to the style of mineralisation and type of deposits under consideration and to the activity being undertaken to qualify as a Competent Person as defined in the 2012 edition of the Australasian Code of Reporting of Exploration Results, Mineral Resources and Ore Reserves. Jeremy Clark consents to the inclusion in this announcement of the matters based on his work in the form and context in which it appears.

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Appendix 5B

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

Name of entity

M3 MINING LMITED

ABN Quarter ended (“current quarter”) 98 644 548 434 30 SEPTEMBER 2022

Consolidated statement of cash flows	Current quarter $A’000	Year to date (3 months) $A’000
1. Cash flows from operating activities 1.1 Receipts from customers 1.2 Payments for (a) exploration & evaluation (b) development (c) production (d) staff costs (e) administration and corporate costs 1.3 Dividends received (see note 3) 1.4 Interest received 1.5 Interest and other costs of finance paid 1.6 Income taxes paid 1.7 Government grants and tax incentives 1.8 Other (provide details if material) 1.9 Net cash from / (used in) operating activities	- (242) - - (86) (101) - 3 - - - -	- (242) - - (86) (101) - 3 - - - -
	(426)	(426)
2. Cash flows from investing activities 2.1 Payments to acquire or for: (a) entities (b) tenements	- -	- -

	Consolidated statement of cash flows		Current quarter	Year to date (3
			$A’000	months)
				$A’000
		(c) property, plant and equipment	(4)	(4)
		(d) exploration & evaluation (capitalised)	-	-
		(e) investments	-	-
		(f) other non-current assets	-	-
	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	(4)	(4)
		activities
	3.	Cash flows from financing activities
	3.1	Proceeds from issues of equity securities
		(excluding convertible debt securities)	-	-
	3.2	Proceeds from issue of convertible debt	-	-
		securities
	3.3	Proceeds from exercise of options	-	-
	3.4	Transaction costs related to issues of equity	-	-
		securities or convertible debt securities
	3.5	Proceeds from borrowings	-	-
	3.6	Repayment of borrowings	-	-
	3.7	Transaction costs related to loans and	-	-
		borrowings
	3.8	Dividends paid	-	-
	3.9	Other (provide details if material)	-	-
	3.10	Net cash from / (used in) financing	-	-
		activities
					14

Consolidated statement of cash flows	Current quarter $A’000	Year to date (3 months) $A’000
4. Net increase / (decrease) in cash and cash equivalents for the period
4.1 Cash and cash equivalents at beginning of period 4.2 Net cash from / (used in) operating activities (item 1.9 above) 4.3 Net cash from / (used in) investing activities (item 2.6 above) 4.4 Net cash from / (used in) financing activities (item 3.10 above) 4.5 Effect of movement in exchange rates on cash held 4.6 Cash and cash equivalents at end of period	3,567 (426) (4) -	3,567 (426) (4) -
	3,137	3,137
5. Reconciliation of cash and cash equivalents at the end of the quarter (as shown in the consolidated statement of cash flows) to the related items in the accounts	Current quarter $A’000	Previous quarter $A’000
5.1 Bank balances 5.2 Call deposits 5.3 Bank overdrafts 5.4 Other (provide details) 5.5 Cash and cash equivalents at end of quarter (should equal item 4.6 above)	3,137 - - -	3,567 - - -
	3,137	3,567
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 64 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.		64
		-

7. 7.1 7.2 7.3 7.4 7.5 7.6	Financing facilities Note: the term “facility’ includes all forms of financing arrangements available to the entity. Add notes as necessary for an understanding of the sources of finance available to the entity. Total facility amount at quarter end $A’000 Amount drawn at quarter end $A’000 Loan facilities Credit standby arrangements Other (please specify) Total financing facilities Unused financing facilities available at quarter end Include in the box below a description of each facility above, including the lender, interest rate, maturity date and whether it is secured or unsecured. If any additional financing facilities have been entered into or are proposed to be entered into after quarter end, include a note providing details of those facilities as well.	Total facility amount at quarter end $A’000	Amount drawn at quarter end $A’000
8.	Estimated cash available for future operating activities		$A’000
8.1 8.2 8.3 8.4 8.5 8.6 8.7 8.8	Net cash from / (used in) operating activities (item 1.9) (426) (Payments for exploration & evaluation classified as investing activities) (item 2.1(d)) - Total relevant outgoings (item 8.1 + item 8.2) (426) Cash and cash equivalents at quarter end (item 4.6) 3,137 Unused finance facilities available at quarter end (item 7.5) - Total available funding (item 8.4 + item 8.5) 3,137 Estimated quarters of funding available (item 8.6 divided by item 8.3) 7.36 Note: if the entity has reported positive relevant outgoings (ie a net cash inflow) in item 8.3, answer item 8.7 as “N/A”. Otherwise, a figure for the estimated quarters of funding available must be included in item 8.7. If item 8.7 is less than 2 quarters, please provide answers to the following questions: 8.8.1 Does the entity expect that it will continue to have the current level of net operating cash flows for the time being and, if not, why not?		(426) - (426) 3,137 -
			3,137
	Answer: N/A

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8.8.2 Has the entity taken any steps, or does it propose to take any steps, to raise further cash to fund its operations and, if so, what are those steps and how likely does it believe that they will be successful? Answer: N/A 8.8.3 Does the entity expect to be able to continue its operations and to meet its business objectives and, if so, on what basis? Answer: N/A

Note: where item 8.7 is less than 2 quarters, all of questions 8.8.1, 8.8.2 and 8.8.3 above must be answered.

Compliance statement

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

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

Date: .......31 OCTOBER 2022....................................................

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.