METALS AUSTRALIA LTD — Capital/Financing Update 2022

Jun 13, 2022

ASX Announcement 14 June 2022 ASX:MLS

Diamond Drilling to Test High-Grade Zinc & Lithium at Manindi

• to follow up the spectacular 68m @ 3.09% Zn[0] intersection as well as,

• test the high-grade Foundation Pegmatite under 11m @ 1.23% Li2O[1]

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• Metals Australia is about to commence a follow-up diamond drilling program at its flagship Manindi Battery Minerals Project in Western Australia, to test two key resource targets:

• i) Follow-up diamond drilling to test for extensions of the high-grade zinc mineralisation at Kultarr Prospect to the south of the previously announced spectacular intersection of:

  • 68m @ 3.09% Zn (0.20% Cu, 2.33 g/t Ag) from 89m (downhole) in MNRC070[0] , including 24.0m @ 6.47% Zn (0.29% Cu, 3.58 g/t Ag) from 100m,

as well as test a strong electromagnetic (EM) conductor to the south, down plunge.

• ii) Test depth extensions of the Foundation Pegmatite below previous, high-grade lithium-rubidium intersections including:

• 11m @ 1.23% Li2O, 0.31% Rb from 16m (down hole) in MNRC045[1] ,

including 5m @ 1.47% Li2O, 0.30% Rb from 16m, and,

including 2m @ 1.73% Li2O, 0.64% Rb from 25m,

as well as obtain samples for mineragraphy and metallurgical (Li, Rb, Ta) testwork, and to inform a maiden JORC 2012 Resource estimate and development studies .

Metals Australia Chairman, Mike Scivolo, said:

“Manindi is an outstanding battery metals project with high-grade resource potential for zinc and lithium as well as the recently identified vanadium, nickel, copper and cobalt potential.

“We’ve been able to secure a diamond drilling rig at short notice that will now allow us to follow up the recent exceptional intersection of high-grade zinc mineralisation and potentially extend the highgrade zinc resources at the Project.”

“In addition, we will diamond drill test extensions of the thick and high-grade Foundation Lithium Pegmatite, which will provide samples for very important mineralogical and metallurgical testwork as a prelude to initial JORC 2012 mineral resource estimates for the project.”

Metals Australia Ltd ( “MLS” or “the Company” ) has secured a diamond drilling rig to follow-up test extensions of the high-grade zinc mineralisation intersected at the Kultarr Zinc-Copper Prospect. The diamond drilling will also test depth extensions and provide metallurgical samples from the Foundation Pegmatite below previous, high-grade lithium-rubidium intersections at the Manindi Project (“ Manindi ” or “ the Project ”), located 20 km southwest of Youanmi in the Murchison District of Western Australia (Figure 1).

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Figure 1: Manindi Project. Location of Kultarr and Kowari zinc prospects and key lithium prospects

Diamond Drilling to Test High-Grade Zinc Resource Extensions:

The new diamond drilling program will test for extensions to the previously announced high-grade intersection in MNRC070 of 68m @ 3.09% Zn, 0.20% Cu, 2.33 g/t Ag from 89m, including 24.0m @ 6.47% Zn, 0.29% Cu, 3.58 g/t Ag from 100m[0] . This exceptional reverse circulation (RC) drilling intersection extended the high-grade zinc mineralisation at the Kowarri Prospect (“ Kowarri ” or “ the Prospect ”) down plunge to the west of previous high-grade intersections[2] (see longitudinal projection, Figure 2).

Previous electromagnetic (EM) surveys show EM anomalies at depth below both the Kultarr (K2 anomaly) and Kowari (C1 anomaly) zones[2] (Figure 2). The high-grade intersection in MNRC070 confirmed that the high-grade zinc mineralisation extends beyond the previous drilling and opened-up potential to significantly expand the high-grade zinc resources at the prospect.

The new diamond drilling program, to commence early next week, will include two holes testing to the south of the MNRC070 intersection, down plunge towards the previously identified EM conductor (Figure 2).

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Figure 2: Kultarr and Kowari Longitudinal Projection with MNRC070 Intersection and diamond drilling targets

The Manindi Project is located on three granted mining licences (Figure 1) and includes the high-grade Kultarr and Kowari Zinc deposits (Figure 2). These deposits already host a JORC 2012, Measured, Indicated & Inferred Mineral Resource of 1.08Mt @ 6.52% Zn, 0.26% Cu, 3.19% Ag for 70,102t Zn (2% Zn cut-off)[2] (including a Measured: 37.7kt @ 10.22% Zn, 0.39% Cu, 6.24 g/t Ag; Indicated: 131.5kt @ 7.84% Zn, 0.32% Cu, 4.60 g/t Ag and Inferred: 906.7kt @ 6.17% Zn, 0.25% Cu, 2.86 g/t Ag).

The Company has identified potential to significantly grow the high-grade zinc with copper resources at the Project through extending identified zones, including through this diamond drilling program, and testing for deeper repeats and other key VHMS targets identified through geophysical modelling.

Diamond Drilling to test the High-Grade Foundation Lithium Pegmatite Discovery:

This new diamond drilling program will also include a large diameter (HQ or PQ) diamond hole through the higher-grade section of the 500m strike-length Foundation Pegmatite , located within the 3km corridor of lithium bearing pegmatites identified at the Manindi Project (see Figure 1 and Figure 3 below).

This new diamond drilling program will test down dip extensions of the highest-grade lithium-rubidium pegmatite zone where previous thick and high-grade intersections were recently announced[1] , including (see location, Figure 3):

o 11m @ 1.23% Li2O, 0.31% Rb from 16m (down hole) in MNRC045[1] ,

• including 5m @ 1.47% Li2O, 0.30% Rb from 16m, and,

• including 2m @ 1.73% Li2O, 0.64% Rb from 25m

The diamond drilling will also obtain metallurgical samples for mineragraphy and further lithium-rubidium (tantalum) concentrate testwork.

This work will also determine the lithium-bearing mineral assemblage (e.g., lepidolite vs spodumene) and the relative proportions of these minerals.

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Figure 3: Manindi lithium Project, Foundation pegmatite, downhole intercepts and rockchip sample locations

See Appendix 1, JORC Table 1, sections 1 and 2 for detailed information on the Project.

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About Metals Australia

Metals Australia is actively exploring a number of other highly prospective battery minerals (and base and precious metals) projects within Western Australia and Quebec, Canada.

The immediate objectives of the Company are to build the value of its key battery minerals resource projects through drilling and initial studies to determine economic value and development potential.

Manindi Project

The flagship Manindi Project includes the Manindi Zinc and Manindi Lithium Projects and comprises three granted mining leases (M57/227, M57/240 and M57/533) located in the Murchison District of Western Australia (Figure 1, inset) in close proximity to the Golden Grove Base Metals Mine and the Youanmi Gold Mine.

The Manindi Zinc Project includes the high-grade Kultarr and Kowari Zinc deposits (Figure 2), located close to the northern end of the Project at the boundary between a sequence of mafic intrusive units and mafic volcanics and felsics to the west. The zinc-copper prospects are regarded as volcanic hosted massive sulphides (VHMS) type, similar to the nearby Golden Grove deposits. The recently announced spectacular zinc intersection in MNRC070 of 68m @ 3.09% Zn, 0.20% Cu, 2.33 g/t Ag from 89m, including 24.0m @ 6.47% Zn, 0.29% Cu, 3.58 g/t Ag from 100m[0 ] was from the Kultarr deposit.

The Company also recently announced a substantial intersection of mafic hosted vanadium bearing titanomagnetite with zones of nickel-copper-cobalt sulphide mineralisation from the previously un-drilled Manindi West magnetic trend (Figure 1) that included an overall intersection of 82m @ 0.30% V2O5, 27.5% Fe and >2% Ti from 48m downhole incl. 52m @ 0.35% V2O5, 31.5% Fe, >2% Ti, 0.03% Ni, 0.04% Cu, 181ppm Co from 48m[3] .

The Manindi Lithium Project is described below and includes a series of lithium bearing pegmatites, generally striking east-west, within a 3km strike-length corridor that transect the same mafic intrusive / mafic volcanic boundary as the zinc deposits (Figure’s 1 and 3).

Manindi Lithium Project:

Detailed surface mapping carried out at Mulgara and Warabi, situated approximately 1.3km SE of the Kultarr and Kowari zinc resources (Figure 1), previously identified at least three lithium bearing pegmatites outcropping at surface with strike lengths of over 300m and widths of up to 25-30m.

Re-sampling of previous diamond drillcore that targeted VHMS sulphide mineralisation at Mulgara, produced intersections including[4] :

• 15m @ 1.20% Li2O from 34m, including 5m @ 1.53% Li2O from 38m in MND018, and,

• 3m @ 1.00% Li2O from 41m in MND022 .

Following the positive identification of lithium-caesium-tantalum (LCT) pegmatites at Manindi, a shallow RC percussion drilling program was completed in 2018[5,6 ] at the Mulgara Prospect to test the three outcropping pegmatite dykes identified.

Significant intersections produced from this RC drilling program at Mulgara included[5,6] :

• MNRC030: 8m @ 1.06% Li2O from 18m incl. 3m @ 1.65% Li2O with up to 1.96% Li2O

• MNRC032: 7m @ 599ppm Ta205

• MNRC033: 8m @ 1.00% Li2O, 158ppm Ta205 from 32m, and 7m @ 1.29% Li2O, 242ppm Ta205 from 42 m incl. 5m @ 1.53% Li2O

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Preliminary flotation tests on previous diamond drilling samples produced concentrates with grades up to 3.05% Li2O and lithium recovery of up to 77% from a concentrated 30% of the mass feed[7] . Flotation tails contained significant tantalite mineralisation (Ta2O5) that could also be recovered and provide additional upside to the potential economics of the project.

Potential for further improvements in the metallurgical results is high given that the previous tests carried out were scoping level in nature and that the flowsheet had not been optimised for the Manindi mineralization.

Recent mapping and systematic rockchip sampling resulted in the identification of other LCT pegmatites within a 3km corridor at the northwest end of the Manindi Mining Leases. This included the identification of the Foundation Pegmatite[8] (Figure 1) that is the largest pegmatite identified to date at Manindi. The Foundation Pegmatite has a 500m strike-length, trending in a southwest–northeast direction, and includes multiple pegmatite outcrops across a 200m wide zone in a northwest-southeast direction (see Figure 1 and 3)

Rockchip sample results averaging >1% Li2O with Cs, Ta and >0.4% Rb and up to 2.30% Li2O and 0.70% Rb[8] , confirm that Foundation is a high-grade LCT pegmatite (Figure 3). These results compare favourably with previous results from rockchip sampling of the Mulgara pegmatites that produced high-grade results of up to 2.84% Li2O, 296 ppm Ta205 and up to 746ppm Cs2O[6] .

The Company recently completed a 44 hole, ~3,500m, RC drilling program[9] that tested the Foundation and Mulgara Pegmatites (Figure 1) as well as other nearby zones (e.g., Dibbler, Quoll). Significant lithium-rubidium results have been produced from results received to date from the Foundation Pegmatite, including the following thick and high-grade intersection[9,10] :

• 16m @ 1.12% Li2O, 0.32% Rb from 19m in MNRC042, incl. 13.0m @ 1.25% Li2O, 0.34% Rb[9]

• 11m @ 1.23% Li2O, 0.31% Rb from 16m in MNRC045, incl. 5m @ 1.47% Li2O, 0.30% Rb[10]

Final results from the remaining holes in the program are expected to be received shortly.

Following the diamond drilling referred to in this release, further metallurgical testwork will be carried out to optimise lithium and rubidium recovery and differentiate the tantalum mineralisation, prior to developing a lithium-rubidium-tantalum processing flowsheet.

The Company then plans to initiate scoping studies into a Manindi mining and processing operation.

Lac Rainy Graphite Project, Quebec, Canada

The Company’s other flagship, the Lac Rainy Graphite Project (“ Lac Rainy ” or the “ Project ”), is located in Quebec, Canada, in close proximity to the operating mines around Fermont and is 100% owned by Metals Australia. The Project hosts a JORC 2012 Indicated and Inferred Resource of 13.3Mt @ 11.5% Total Graphitic Carbon (Cg)[11] (including Indicated: 9.6Mt @ 13.1% Cg and Inferred: 3.7Mt @ 7.3% Cg).

In 2021 Metals Australia completed a Phase 1 Scoping Study that highlighted the significant economic potential of the Lac Rainy Graphite Project[12] .

Recently completed Phase 2 metallurgical tests have produced very encouraging results[13] based on the optimum flowsheet developed through testing of a composite sample from the high-grade Lac Rainy Graphite Project grading 16.2% Cg . Highlights of the Phase 2 testing program are as follows:

• i) Optimised tests produced a combined, -150µm and +150µm, concentrate grade of 96.8% Cg , which is at the upper end of the targeted purity range of 95% to 97% Cg[13] .

• ii) The proportion of larger flake recovered under these optimised grinding and flotation conditions was 13.9% in the +150µm fraction, at a very high-purity of 97.4% Cg[13] .

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• iii) Locked closed circuit (LCT) testwork produced a very-high overall recovery into the concentrate of 95.1% Cg . Concentrate grade was maintained in target range at 95.5% Cg[14] .

The flow-sheet development program has significantly improved the conditions of the rougher, primary cleaning and secondary cleaning flotation circuits.

The Company is now very close to finalising the generation of the bulk, high-purity, flake-graphite concentrate sample, targeting 5 to 10kg of material at a grade of >94% Cg .

This bulk flake-graphite concentrate sample will shortly be sent to ProGraphite in Germany, to conduct specialist downstream testwork; including spheroidization and purification, to be followed by battery testwork to determine the quality of the Lac Rainy graphite products for use in lithium-ion battery applications.

This downstream testwork will provide impetus to discussions with potential off-take and/or funding partners to assist driving the Lac Rainy Project towards feasibility, development and production.

Eade-Felicie-Pontois Copper-Gold-Polymetallic Projects, Canada

The Eade-Felicie-Pontois Copper-Gold-Polymetallic Projects are located in northern Quebec, Canada, in the Lac Grande Greenstone Belt. The Company has received the results of a Time-Domain Electromagnetic (TDEM) and heliborne Magnetic (MAG) survey that confirmed areas of identified mineralisation and identified new targets to be field tested across the extensive 15km strike corridor of identified targets[14] .

The Company recently completed a reconnaissance fieldwork program over high priority target areas and, based on re-evaluation of the geophysical interpretation and a more intensive and systematic fieldwork program, will be finalising plans for an initial drilling campaign.

- Lac du Marcheur Copper Cobalt Project, Canada

The Lac du Marcheur Copper-Cobalt Project is located in central Quebec, Canada, in close proximity to the Chilton Copper-Cobalt project. An initial field program was undertaken by the Company in 2017 which confirmed the historical high-grade copper and cobalt occurrences and prospects on surface.

The Company has recently completed an airborne TDEM and MAG survey over the entire tenement area. The preliminary processed results of these surveys have highlighted several conductors aligned and coincident with magnetic trends/lineaments trending NW-SE to NNE-SSW. These conductors/anomalies may be associated with graphitic and/or sulphidic zones and field work will be carried out to identify the source of the conductors/anomalies[14] .

References

0 Metals Australia Ltd, 24 May 2022. Exceptional 68m @ 3.09% Zinc Intersection at Manindi.

1 Metals Australia Ltd, 26 May 2022. Multiple High-Grade Lithium Intersections from Manindi Pegmatites.

2 Metals Australia Ltd, 25 July 2017. C4 Conductor Delivers High Grade Zinc Intersection at Manindi.

3 Metals Australia Ltd, 09 June 2022. Substantial Vanadium (Iron-Titanium) Intersection at Manindi.

4 Metals Australia Ltd, 21 March 2017. High Grade Lithium Bearing Pegmatites Discovered at Manindi.

5 Metals Australia Ltd, 12 June 2018. Lithium pegmatite drilling program commences at Manindi Lithium Project.

6 Metals Australia Ltd, 24 July 2018. Results of RC percussion drilling program at Manindi Lithium Project.

7 Metals Australia Ltd, 13 April 2018. Preliminary Metallurgical Test program underway at Manindi Lithium Project.

8 Metals Australia Ltd, 10 November 2021. High Grade Lithium-Tantalum Results from Manindi Pegmatites.

9 Metals Australia Ltd, 3 May 2022. Excellent Drill Hits from Manindi pegmatites.

10 Metals Australia Ltd, 16 May 2022. Thick Lithium Bearing Pegmatite Intersections at Manindi.

11 Metals Australia Ltd, 15 June 2020. Metals Australia delivers High Grade Maiden JORC Resource at Lac Rainy Graphite Project, Quebec.

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12 Metals Australia Ltd, 3 February 2021. Lac Rainy Graphite Study delivers strong economics with Significant Economic upside.

13 Metals Australia Ltd, 28 February 2022. Outstanding 96.8% Flake Graphite Concentrate for Lac Rainy.

14 Metals Australia Ltd, 28 April 2022. Quarterly Activities Report for the Quarter Ended 31 March 2022.

This announcement was authorised for release by the Board of Directors.

*ENDS***

For further information, please refer to the Company’s website or contact:

Michael Muhling Company Secretary Metals Australia Limited +61 (08) 9481 7833

Cautionary Statement regarding Forward-Looking information

This document contains forward-looking statements concerning Metals Australia Ltd. Forward-looking statements are not statements of historical fact and actual events and results may differ materially from those described in the forwardlooking statements as a result of a variety of risks, uncertainties and other factors. Forward-looking statements are inherently subject to business, economic, competitive, political and social uncertainties and contingencies. Many factors could cause the Company’s actual results to differ materially from those expressed or implied in any forward-looking information provided by the Company, or on behalf of, the Company. Such factors include, among other things, risks relating to additional funding requirements, metal prices, exploration, development and operating risks, competition, production risks, regulatory restrictions, including environmental regulation and liability and potential title disputes.

Forward looking statements in this document are based on the company’s beliefs, opinions and estimates of Metals Australia Ltd as of the dates the forward-looking statements are made, and no obligation is assumed to update forward looking statements if these beliefs, opinions and estimates should change or to reflect other future developments.

Competent Person Statement

The information in this report that relates to exploration results has been reviewed, compiled and fairly represented by Mr Nick Burn. Mr Burn is the Exploration Manager of Metals Australia Limited and a member of the AIG. Mr Burn has sufficient experience relevant to the style of mineralisation and type of deposits under consideration to qualify as a Competent Person as defined in the 2012 Edition of the Joint Ore Reserves Committee (‘JORC’) Australasian Code for Reporting of Exploration Results, Minerals Resources and Ore Reserves. Mr Burn consents to the inclusion in this report of the matters based on this information in the form and context in which it appears.

The information in this report that relates to Mineral Resources and Exploration Targets has been reviewed, compiled and fairly represented by Mr Jonathon Dugdale. Mr Dugdale is a Technical Advisor to Metals Australia Ltd and a Fellow of the Australian Institute of Mining and Metallurgy (‘FAusIMM’). Mr Dugdale has sufficient experience, including over 34 years’ experience in exploration, resource evaluation, mine geology and finance, relevant to the style of mineralisation and type of deposits under consideration to qualify as a Competent Person as defined in the 2012 Edition of the Joint Ore Reserves Committee (‘JORC’) Australasian Code for Reporting of Exploration Results, Minerals Resources and Ore Reserves. Mr Dugdale consents to the inclusion in this report of the matters based on this information in the form and context in which it appears.

The Company confirms that it is not aware of any new information or data that materially affects the information included in the original market announcements. The Company confirms that the form and context in which the Competent Person’s findings are presented have not been materially modified from the original market announcements.

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Appendix 2 JORC Code, 2012 Edition – Table 1 - Section 1 Sampling Techniques and Data

	Appendix 2 JORC Code, 2012 Edition – Table 1 - Section 1 Sampling Techniques and Data
	Criteria JORC Code explanation	Commentary
	Sampling techniques  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 examples should not be taken as limiting the broad meaning of sampling.  Include reference to measures taken to ensure sample representivity and the appropriate calibration 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 (e.g., ‘reverse circulation drilling was used to obtain 1 m samples from which 3 kg was 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 inherent sampling problems. Unusual commodities or mineralisation types(e.g., submarine nodules) may warrant disclosure of detailed information. Reverse circulation (RC) percussion drilling was used to obtain 1 m samples, from which approximately 2-3 kg was sub-sampled and pulverised to produce a sample for assay. Previous diamond drilling has also been sampled at approximate 1m intervals, utilising geological contacts where necessary.
	Drilling techniques  Drill type (e.g., core, reverse circulation, open-hole hammer, rotary air blast, auger, Bangka, sonic, etc) and details (e.g., core diameter, triple or standard tube, depth of diamond tails, face- sampling bit or other type, whether core is oriented and if so, by what method, etc). Drilling type is reverse circulation (RC) percussion drilling, using a 4.5” face-sampling drill bit.
	Drill sample recovery  Method of recording and assessing core and chip sample recoveries and results assessed.  Measures taken to maximise sample recovery and 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. Sample recovery was visually assessed on basis of the volume of RC percussion chip recovery and overall is considered to be good based on the drilling records. Standard RC percussion drilling techniques were utilised to maximise sample recovery. The cyclone unit was routinely cleaned to limit contamination and ensure representivity of the sample. There is no apparent relationship between sample recovery and grade.
	Logging  Whether core and chip samples have been 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 andpercentage of the relevant intersections logged. Chips from 1m RC percussion drilling intervals were logged according to industry standard practice and representative samples stored in chip trays. Logging was qualitative in nature and recorded using standard logging templates. The resulting data was uploaded to a Datashed database and validated. 100% of the drilling was logged.
	Sub-sampling techniques and sample preparation  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, quality and appropriateness of the sample preparation technique.  Quality control procedures adopted for all sub-sampling stages to maximise representivity of samples.  Measures taken to ensure that the 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. Assaying for this current RC program is being undertaken by Intertek Perth utilising their 4A /MS48 (four acid digest/ICP-MS) package. The quality of the assay and laboratory procedures is considered to be high and appropriate for the type of mineralisation. The technique used is considered to be a total digestion. A comprehensive QAQC program (1 in 25) including blank, standard and duplicate samples were submitted by the Company for analysis with the drilling samples. The results of the QAQC program have been reviewed by the Company’s consultant, who has not identified any material concerns. Routine internal QAQC checks were also completed by Intertek and the results are considered to be satisfactory with no material concerns.being sampled and appropriate for the sample type.being sampled and appropriate for the sample type.

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Criteria JORC Code explanation Commentary
Quality of assay  The nature, quality and appropriateness of the assaying and laboratory procedures used and Previous drill sample assaying was completed by the Bureau Veritas (BV) laboratory based in Perth,
data and whether the technique is considered partial or total. Western Australia.
 For geophysical tools, spectrometers, handheld XRF instruments, etc, the parameters used in BV undertook a standard multi-element assay procedures (codes PF100, PF101 and PF102) utilising a
laboratory tests
determining the analysis including instrument make and model, reading times, calibrations peroxide fusion digestion technique followed by ICP-AES and ICP-MS analysis.
factors applied and their derivation, etc.
 Nature of quality control procedures adopted (e.g., standards, blanks, duplicates, external Assaying for this current RC program is being undertaken by Intertek Perth utilising their 4A /MS48
(four acid digest/ICP-MS) package. Gold and PGE assays will be completed by fire assay/ ICP-MS
laboratory checks) and whether acceptable levels of accuracy (i.e., lack of bias) and precision
analysis.
have been established.
The quality of the assay and laboratory procedures is considered to be high and appropriate for the
type of mineralisation. The technique used is considered to be a total digestion.
A comprehensive QAQC program including blank, standard and duplicate samples were submitted
by the Company for analysis with the drilling samples. The results of the QAQC program have been
reviewed by the Company’s consultant, who has not identified any material concerns.
Verification of  The verification of significant intersections by either independent or alternative company Significant intersections have been reviewed and verified by company technical and management
sampling and personnel. personnel.
 The use of twinned holes. Primary drilling data was documented in detailed electronic drill hole logs. Primary assay data was
assaying  Documentation of primary data, data entry procedures, data verification, data storage (physical received electronically from the analytical laboratory. Data is uploaded to a Datashed geological
and electronic) protocols. database and verified. No adjustments have been made to the reported assays (Appendix 1).
 Discuss any adjustment to assay data.
Location of data  Accuracy and quality of surveys used to locate drill holes (collar and down-hole surveys), Drill hole collar and rock chip sample locations have been verified with handheld GPS with a ±5 m
trenches, mine workings and other locations used in Mineral Resource estimation. degree of accuracy.
points
 Specification of the grid system used. The grid system used is GDA94 datum, MGA zone 50 projection.
 Quality and adequacy of topographic control.
Topographic control is based on a digital terrain model (DTM) with an accuracy of ±5m.
Data spacing and  Data spacing for reporting of Exploration Results. Data spacing is 1 m intervals downhole. Drill holes spaced at approximately 20 m intervals along
distribution  Whether the data spacing, and distribution is sufficient to establish the degree of geological and strike of the Kultarr resource.
grade continuity appropriate for the Mineral Resource and Ore Reserve estimation procedure(s) The drilling intersection announced presents sufficient data to establish the degree of geological and
and classifications applied. grade continuity required for estimation of a resource. Further drilling will be carried out before a
 Whether sample compositing has been applied. revised resource estimate is produced.
No sample compositing has been applied.
Orientation of data  Whether the orientation of sampling achieves unbiased sampling of possible structures and the The drilling and sampling orientation is not considered to have resulted in a true width intersection
in relation to extent to which this is known, considering the deposit type. of the zinc mineralised zone (see figure 1, cross section).
 If the relationship between the drilling orientation and the orientation of key mineralised Given the nature of the deposit type, the drilling and the sampling is considered to achieve unbiased
geological
structures is considered to have introduced a sampling bias, this should be assessed and sampling as the sulphide body has been tested from haningwall to footwall.
structure reported if material.
Sample security  The measures taken to ensure sample security. Industry standard chain of custody followed, with samples collected, transported and delivered to a
secure freight depot by Company geologist. Samples were shipped directly to the analytical lab.
Audits or reviews  The results of any audits or reviews of sampling techniques and data. The Company’s consultant has reviewed the sampling and assay data for completeness and quality
control and has not identified any material concerns.
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JORC Code, 2012 Edition – Table 1 - Section 2 Reporting of Exploration Results

	JORC Code, 2012 Edition – Table 1 - Section 2 Reporting of Exploration Results
	Criteria JORC Code explanation Commentary
	Mineral tenement and land tenure status  Type, reference name/number, location and ownership including agreements or material issues with third parties such as joint ventures, partnerships, overriding royalties, native title interests, historical 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 in the area. The Company controls an 80% Interest in three granted Mining Licences in Western Australia covering the known mineralisation and surrounding area. The licences are M57/227, M57/240 and M57/533. The licence reports and expenditure are all in good standing at the time of reporting. There are no known impediments with respect to operating in the area.
	Exploration done by other parties  Acknowledgment and appraisal of exploration by other parties. The Manindi zinc deposits were identified by WMC in the early 1970s and have been extensively explored using surface and geophysical techniques prior to drilling. Mapping and soil geochemistry preceded airborne, and surface geophysical techniques being applied to the project. The Project has been drilled in 8 separate drill programs since 1971, with a total of 393 holes having been completed. These include 109 diamond drillholes, 109 RC drillholes, 169 RAB drillholes and 8 percussion holes. The zinc deposits have never been mined. The Project has not previously been explored for lithium.
	Geology  Deposit type, geological setting and style of mineralisation. The mineralisation at Manindi is hosted within an Archaean felsic and mafic volcanic sequence. The sequence has been extensively deformed by regional metamorphism and structural event related to the Youanmi Fault and emplacement of the Youanmi gabbro intrusion and other later granitic phases. The Manindi zinc-copper mineralisation is considered to be a volcanogenic massive sulphide (VMS) deposit, comprising a series of lenses of zinc-dominated mineralisation that have been folded, sheared, faulted, and possibly intruded by later dolerite and gabbro. Pegmatite dykes crosscut the felsic and mafic rock sequences at a high angle and are interpreted to have intruded along structures that transect the area. The dykes that occur in the area are considered to be of the lithium-caesium-tantalum type (LCT) and some contain visible lepidolite mineralisation.
	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. A summary of all information material to the understanding of the previous lithium exploration results is included in the announcement, see Appendix 1 of the announcement by Metals Australia Ltd, 24 July 2018. “Results of RC percussion drilling program at Manindi Lithium Project”. A summary of previous exploration at Kultarr is included in the announcement by Metals Australia Ltd, 25 July 2017. “C4 Conductor delivers High Grade Zinc Intersection at Manindi”

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Criteria JORC Code explanation Commentary
Data aggregation  In reporting Exploration Results, weighting averaging techniques, maximum and/or minimum Exploration results are reported as a length weighted average grade. This ensures that short lengths
methods grade truncations (e.g., cutting of high grades) and cut-off grades are usually Material and of high-grade material receive less weighting than longer lengths of low-grade material.
should be stated. Where aggregate intercepts incorporate short lengths of high-grade results within longer lengths of
 Where aggregate intercepts incorporate short lengths of high-grade results and longer lengths lower grade results, these zones have been reported separately.
of low-grade results, the procedure used for such aggregation should be stated and some typical
No maximum or minimum grade truncations have been applied.
examples of such aggregations should be shown in detail.
 The assumptions used for any reporting of metal equivalent values should be clearly stated. No metal equivalents are reported.
Relationship  These relationships are particularly important in the reporting of Exploration Results. The orientation and dip of the reported zinc RC drill hole MNRC070 was designed to investigate the
between  If the geometry of the mineralisation with respect to the drill hole angle is known, its nature potential for down plunge Zn mineralisation and an interpreted EM plate anomaly. The reported
should be reported. mineralised intersections are therefore not true width.
mineralisation
 If it is not known and only the down hole lengths are reported, there should be a clear statement
widths and to this effect (e.g., ‘down hole length, true width not known’).
intercept lengths
Diagrams  Appropriate maps and sections (with scales) and tabulations of intercepts should be included for Appropriate maps and sectional views are included in the body of the announcement.
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 reporting  Where comprehensive reporting of all Exploration Results is not practicable, representative Full and representative reporting of previous relevant results in announcement by Metals Australia
reporting of both low and high grades and/or widths should be practiced avoiding misleading Ltd, 24 July 2018. “Results of RC percussion drilling program at Manindi Lithium Project”.
reporting of Exploration Results. With respect to previous zinc exploration, see a summary of previous exploration at Kultarr included
in the announcement by Metals Australia Ltd, 25 July 2017. “C4 Conductor delivers High Grade Zinc
Intersection at Manindi”
Other substantive  Other exploration data, if meaningful and material, should be reported including (but not limited There are no other substantive exploration data.
to): geological observations; geophysical survey results; geochemical survey results; bulk samples
exploration data
– 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 further work (e.g., tests for lateral extensions or depth Further drilling to test the grade, thickness and continuity of lithium mineralisation at the Manindi
extensions or large-scale step-out drilling). Project, as discussed in the previous announcements.
 Diagrams clearly highlighting the areas of possible extensions, including the main geological Further diamond drill testing to determine down plunge extensions of the Kultarr mineral resource.
interpretations and future drilling areas, provided this information is not commercially sensitive.
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