METALSGROVE MINING LTD — Capital/Financing Update 2022

Dec 18, 2022

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PHASE 1 DRILLING PROGRAMME COMPLETE

UPPER COONDINA LITHIUM PROJECT

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Highlights:

• 4,200m Phase 1 drilling programme completed at the Chola, Happy Go Lucky and Shaw River Lithium Prospects - on time and on budget

• High priority Chola Prospect is a pegmatite corridor measuring approx. 4.0 km x 2.0 km

Date 19 December 2022

ASX Code MGA

Shares on Issue 52,710,000

• Previously completed first pass soil sampling assay results at Chola Prospect confirm strong lithium and tantalum potential

• Deep Ground Penetrating Radar (DGPR) survey has identified 23 new potential pegmatite structures conjugate with existing known mineralised pegmatites within Chola Prospect

• DGPR is proven to be highly effective for identifying pegmatites in previous known pegmatite outcrops

• First drilling assays are expected to be reported in late February

Company Directors

Mr Sean Sivasamy Managing Director and CEO

Mr Richard Beazley Non-Executive Chairperson Mr Haidong Chi Non-Executive Director

Chief Financial Officer Ms Rebecca Broughton

Company Secretary Mr Jack Rosagro

Critical metals exploration and development company MetalsGrove Mining Limited (ASX: MGA ), (“ MetalsGrove ” “ MGA ” or the “ Company ”), is pleased to announce that it has completed its maiden 4,200m Reverse Circulation (“RC”) drilling programme at the Upper Coondina Lithium Project, located 80 km south of Marble Bar.

This maiden drilling programme was designed to test the priority lithium targets at the recently discovered Chola Prospect in the south-east of the main Upper Coondina Project area (see Figure 1 and Figure 2 below). The Company can report that drilling has successfully intersected the main target zone at Chola with first assays expected to be reported in Q1 2023.

MGA is also pleased to confirm the completion of a DGPR survey at Upper Coondina. DGPR is proven technique for identifying additional pegmatites and establishing a more detailed understanding of subsurface mineralisation.

Commenting on the completion of the maiden drilling programme at Upper Coondina, MetalsGrove’s Managing Director, Sean Sivasamy said:

Contact Details

6/123A Colin Street West Perth WA-6005 T: + 61 8 6388 2725

E: info@metalsgrove.com.au W: metalsgrove.com.au

“We are delighted to have completed our maiden RC drilling programme at the Chola Prospect on time and on budget before the end of the year. Chola is an exciting structure with soil sampling already confirming the strong lithium and tantalum potential in the region. Our first drilling programme was designed to confirm the width, tenure and mineralisation profile of the pegmatites, down from 60 to 120m plus depths, and we are confident these initial objectives have been achieved.

Our DGPR survey has also highlighted a host of new potential pegmatite structures nearby to the Chola Prospect which is highly encouraging.

ACN: 655 643 039

MetalsGrove is well positioned to hit the ground running in early 2023 with a busy pipeline of activity planned across the portfolio. We look forward to providing further updates as initial assays from Upper Coondina come to hand early in the New Year.”

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Page 1 of 13

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Figure 1 – Inaugural Drilling at Upper Coondina

Deep Ground Penetrating Radar (DGPR) survey

Ultramag Geophysics was engaged by the Company to undertake a DGPR survey to identify pegmatites and investigate subsurface potential for the known, mapped and sampled at the Upper Coondina lithium project.

Excellent signal quality from depths of 30m to 100m was recorded and a total of 28.5 km of line-data at 50m to 150m spacing was completed.

The DGPR survey has identified 23 new potential pegmatite structures conjugate with existing known mineralised pegmatites within the Chola Prospect.

During the first phase drilling programme, MGA tested approximately 50% of the DGPR anomaly, and the untested anomaly will be drilled during the next phase of drilling programme.

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DGPR is a geophysical technique similar to seismic that emits very short pulses of electromagnetic (EM) radiation into the ground via a transmitter, measuring the reflected energy in a receiver to produce profiles of subsurface resistivity.

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Page 2 of 13

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Figure 2– Showing mapped pegmatites with DGPR interpreted pegmatites at the Chola Prospect.

The DGPR survey was planned to test the extensions at depth of existing surfacemapped, known lithium-rich pegmatites; and potential to identify additional blind pegmatites.

The new interpreted pegmatites, shown in green in Figure 2, appear to be much wider than the mapped and sampled pegmatites at Chola. They are also interpreted to start below the surface and extend slightly deeper; orientation is correlated with the known surface outcrop pegmatite.

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Figure 3: Section Through A-A’ from Figure 1 DGPR Survey interpretation at Chola

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Figure 4: Section Through B-B’ from Figure 1 DGPR Survey interpretation at Chola

Next steps

• RC Drill samples have been sent to the laboratory for analysis.

• Continue detailed field mapping in the areas north of Chola, Happy Go Lucky and Shaw River Prospects to further enhance the geological modelling.

• Continue DGPR survey in the areas north of Chola, Happy Go Lucky and Shaw River Prospects to identify potential extensions of the undercover pegmatites.

• Planning for follow-up programmes once assay results have been received and interpreted.

• Commence planning for heritage surveys prior to drill programmes.

• Planning underway for surface field mapping and sampling.

Upper Coondina Project Background

The Upper Coondina Project is located approximately halfway between the major mining regional service centres of Port Hedland and Newman - approximately 200 km northwest and 180 km south-southeast of the project, respectively.

The Project comprises a single granted Exploration Licence. The tenement covers an area of approximately 6,363 ha and the maximum distance across the project is about 11 km east–west and 8 km north–south. Nearby lithium mines include Wodgina (MinRes ASX: MIN), Pilbara Minerals (ASX: PLS) and recent lithium developer Global Lithium (ASX: GL1).

Historical Exploration Summary

The Greater Shaw Tin Field has attracted exploration interest since the discovery of tin in 1890. However, most of the exploration and subsequent mining of tin and tantalum has been on the small scale. The Shaw Tin Field, has historically produced more than 6,500 t of tin concentrate.

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In 1968, Marble Bar Nickel carried out a rock chip sampling programme covering tenement E45/3699 of the current Hillside CRG (A1714). A 1972 stream sediment sampling programme by Anglo American Services Limited targeting Ni-Cu mineralisation identified a copper anomaly in ultramafic and pillow basalts and another in altered gabbro. Both were subsequently found to be insignificant.

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In early 1968, the field was largely abandoned after the shallow deposits were soon exhausted. Towards the end of 1968, a local resident discovered further cassiterite mineralisation in cemented alluvium within a largely concealed tertiary drainage channel. In 1983, CSR Limited explored for economic secondary concentrations of tin and tantalum in the area. Their exploration programme included follow-up on radiometric anomalies, stream sediment sampling and geological mapping. No discrete localities of anomalous tin could be identified. CSR Limited identified simple pegmatite veins as the sources of the tin.

No dedicated Li-focused exploration has been carried out within the project area. However, given historical surface geochemical sampling has returned anomalous values up to 253 ppm LiO2, MetalsGrove considers that this untested magnetic anomaly warrants follow-up exploration to determine its source.

The exploration results that are referred to above were included in MetalsGrove’s IPO prospectus dated 13 May 2022 ( Prospectus ). MetalsGrove is not aware of any new information in respect of these results, and confirms that full details with respect to these results are included in the Prospectus.

About MetalsGrove

MetalsGrove Mining Limited (ASX: MGA) is an Australian-based exploration and development company, focused on the exploration and development of its portfolio of high-quality lithium, rare earth, copper-gold, manganese and base metal projects in Western Australia and the Northern Territory.

MGA is committed to green metal exploration and development to meet the growing demand from the battery storage and renewable energy markets in the transition to a de-carbonised world.

Competent Person Statement – Exploration Strategy

The information in this announcement that relates to exploration strategy has been developed by Sean Sivasamy. All assay results have been complied by Mr Sivasamy who is a member of Australasian Institute of Mining and Metallurgy. Mr Sivasamy is Managing Director and CEO of MetalsGrove Mining Limited.

Mr Sivasamy has sufficient experience which is relevant to the style of mineralisation and exploration processes as reported herein 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 Sivasamy consents to the inclusion in this announcement of the information contained herein, in the form and context in which it appears.

Forward looking statements

This announcement may contain certain “forward looking statements” which may not have been based solely on historical facts, but rather may be based on the Company’s current expectations about future events and results. Where the Company expresses or implies an expectation or belief as to future events or results, such expectation or belief is expressed in good faith and believed to have a reasonable basis.

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However, forward looking statements are subject to risks, uncertainties, assumptions, and other factors which could cause actual results to differ materially from future results expressed, projected or implied by such forward looking statements. Such risks include, but are not limited to exploration risk, mineral resource risk, metal price volatility, currency fluctuations, increased production costs and variances in ore grade or recovery rates from those assumed in mining plans, as well as political and operational risks in the countries

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Page 5 of 13

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and states in which we sell our product to, and government regulation and judicial outcomes.

For more detailed discussion of such risks and other factors, see the Company’s Prospectus, as well as the Company’s other filings. Readers should not place undue reliance on forward looking information. The Company does not undertake any obligation to release publicly any revisions to any “forward looking statement” to reflect events or circumstances after the date of this announcement, or to reflect the occurrence of unanticipated events, except as may be required under applicable securities laws.

Authorised for release by the MetalsGrove Mining Limited Board of Directors,

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SHAREHOLDER ENQUIRIES Sean Sivasamy Managing Director & CEO MetalsGrove Mining Ltd seans@metalsgrove.com.au

MEDIA ENQUIRIES GENERAL ENQUIRIES Sam Burns MetalsGrove Mining Ltd SIXº Investor Relations www.metalsgrove.com.au +61 400 164 067 sam.burns@sdir.com.au info@metalsgrove.com.au

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JORC Code, 2012 Edition – Table 1

Section 1 Sampling Techniques and Data

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

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|||||||||
|---|---|---|---|---|---|---|---|
|Criteria|JORC Code Explanation|Commentary|
|•|
|Sampling|Nature and quality of sampling|•|
|Deep Ground Penetrating Radar|
|Techniques|(e.g. cut channels, random chips,|
|survey results.|
|or|specific|specialised|industry|
|•|
|standard|measurement|tools|No assay reported in this release.|
|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.|
|Drilling|•|Drill|type|(e.g.|core,|reverse|•|
|No drilling results are included in this|
|Techniques|circulation,|open-hole|hammer,|
|release.|
|rotary air blast, auger, Bangka,|
|sonic, etc.) and details (e.g. core|
|diameter, triple or standard tube,|
|depth of The samples were rock|
|chip samples, no drill samples were|
|collected.|
|•|
|Drill Sample|Method of recording and assessing|•|
|No drilling results are included in this|
|Recovery|core and chip sample recoveries|
|release.|
|and results assessed.|
|•|Measures|taken|to|maximize|
|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.|
|•|
|Logging|Whether core and chip samples|•|
|No sampling result in this release.|
|have|been|geologically|and|
|geotechnically logged to a level of|
|Page|7|of|13|

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Criteria JORC Code Explanation Commentary
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- • If core, whether cut or sawn and
•
No drilling results are included in this
sampling whether quarter, half or all core
release.
Techniques taken.
and • If non-core, whether riffled, tube
Sample sampled, rotary split, etc. and
Preparation 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 maximize 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.
Quality of • The nature, quality and •
No assay reported in this release.
Assay Data appropriateness of the assaying
and and laboratory procedures used
Laboratory and whether the technique is
Tests 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
derivation, etc.
• Nature of quality control
procedures adopted (e.g.
standards, blanks, duplicates,
external laboratory checks) and
whether acceptable levels of
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Criteria JORC Code Explanation Commentary
accuracy (i.e. lack of bias) and
precision have been established.
Verification • The verification of significant •
No drilling results are included in this
of Sampling intersections by either independent
release.
and or alternative company personnel.
Assaying • The use of twinned holes.
•
Documentation of primary data,
data entry procedures, data
verification, data storage (physical
and electronic) protocols.
•
Discuss any adjustment to assay
data.
Location of • Accuracy and quality of surveys • The transmitting and receiving
Data Points used to locate drillholes (collar and
antennas were laid on the ground in
down-hole surveys), trenches, mine
a co-linear manner. Location of the
workings and other locations used
two antennas during data
in Mineral Resource estimation.
acquisition was recorded using
•
Specification of the grid system
handheld GPS (~3 to ~4m
used.
accuracy).
• Quality and adequacy of
topographic control.
Data • Data spacing for reporting of •
No mineral resource reported in this
Spacing and Exploration Results.
release.
Distribution • Whether the data spacing and
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
been applied.
Orientation • Whether the orientation of
• Survey lines were designed to
of data in sampling achieves unbiased
provide a section across and
relation to sampling of possible structures and
perpendicular to the previously
geological the extent to which this is known,
identified mineralised pegmatites.
structure considering the deposit type.
•
If the relationship between the
drilling orientation and the
orientation of key mineralised
structures is considered to have
introduced a sampling bias, this
should be assessed and reported if
material.
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||||||
|---|---|---|---|---|
|Criteria|JORC Code Explanation|Commentary|
|Sample|•|The measures taken to ensure|•|
|No sampling results reported in this|
|security|sample security.|
|release.|
|Audits or|•|The results of any audits or reviews|•|No external audits or reviews of the|
|Reviews|of sampling techniques and data.|
|sampling techniques and data has|
|been conducted.|

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Section 2 Reporting of Exploration Results

(Criteria listed in the preceding section also apply to this section.)

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||||||||
|---|---|---|---|---|---|---|
|Criteria|JORC Code Explanation|Commentary|
|Mineral|•|Type, reference name/number,|•|The DGPR survey were completed|
|Tenement|location and ownership including|
|from tenement E45/5952.|
|and Land|agreements or material issues with|
|Tenure Status|third parties such as joint ventures,|•|There|are|no|third-party|
|partnerships, overriding royalties,|arrangements or royalties etc. to|
|native title interests, historical sites,|impede|exploration|on|the|
|wilderness or national park and|tenure.|
|environmental settings.|•|There are no reserves or national|
|•|
|The security of the tenure held at|
|parks to impede exploration on|
|the time of reporting along with|the tenure.|
|any|known|impediments|to|
|•|
|Ownership – 100% MetalsGrove|
|obtaining a licence to operate in|
|Mining Ltd.|
|the area.|
|•|
|Exploration|Acknowledgment and appraisal|•|All historical work referenced in|
|Done by|of exploration by other parties.|
|this report has been undertaken|
|Other Parties|
|by previous project explorers.|
|Whilst it could be expected that|
|work and reporting practices|
|were of an adequate standard,|
|this cannot be confirmed.|
|Geology|•|Deposit type, geological setting|•|The tenement lies within what is|
|and style of mineralisation.|
|generally referred to as the Shaw|
|Tin Field (Blockley, 1980), owing to|
|the numerous alluvial tin and|
|tantalum deposits in the area. The|
|tin|(mainly|cassiterite)|and|
|tantalum|(mainly|tantalite)|
|mineralisation were derived from|
|albite pegmatites intruded along|
|the margins of the post-tectonic|
|Cooglegong|and|Spear|Hill|
|Monzogranites, which belong to|
|the|Split|Rock|Supersuite.|
|Practically|all|of|the|tin|
|Page|10|of|13|

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Criteria JORC Code Explanation Commentary
concentrate produced from
1965–1968 came from shallow
alluvial deposits following small,
first or second order tributaries of
the Shaw River. Tin-bearing
gravels are restricted to the upper
parts of the streams (Blockley,
1980).
Drill hole • A summary of all information •
No drilling results are included in
Information material to the understanding of
this release.
the exploration results including a
tabulation of the following
information for all Material
drillholes:
•
easting and northing of the
drillhole collar elevation or RL
(Reduced Level – elevation
above sea level in metres) of the
drillhole collar dip and azimuth of
the hole
• down hole length and
interception depth hole length.
Data • In reporting Exploration Results, •
No data aggregation.
Aggregation weighting averaging techniques,
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 • If the geometry of the •
No mineralisation reported in this
Between mineralisation with respect to the
release.
Mineralisation drillhole angle is known, its nature
Widths and should be reported.
Intercept
Lengths
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Criteria JORC Code Explanation Commentary
•
Diagrams Appropriate maps and sections •
See maps in the body of the
(with scales) and tabulations of
report.
intercepts should be included for
any significant discovery being
reported These should include,
but not be limited to a plan view
of drillhole collar locations and
appropriate sectional views.
Balanced • Where comprehensive reporting •
All exploration data and results
Reporting of all Exploration Results is not
conducted by MetalsGrove to
practicable, representative
date have been reported.
reporting of both low and high
grades and/or widths should be
practiced avoiding misleading
reporting of Exploration Results.
Other • Other exploration data, if •
Deep Ground Penetrating Radar
Substantive meaningful and material, should
data.
Exploration be reported including (but not
•
Data limited to): geological Ground Penetrating Radar (GPR)
observations; geophysical survey is a geophysical technique similar
results; geochemical survey to seismic that emits very short
results; bulk samples – size and pulses of electromagnetic (EM)
method of treatment; radiation into the ground via a
metallurgical test results; bulk transmitter, measuring the
density, groundwater, reflected energy in a receiver to
geotechnical and rock produce profiles of subsurface
characteristics; potential resistivity.
deleterious or contaminating • A total of 28.5km of line-data at
substances.
100 and 50m spacing was
completed over the Upper
Coondina lithium project.
•
The level of energy, timing of
pulses and speed of
displacement of the radar at
surface were calibrated to image
precisely the top 50m of
subsurface.
• Data quality was deemed
excellent by the acquisition team
and interpretation was possible to
depths greater than 50m below
surface.
Further Work • The nature and scale of planned •
Additional sampling and surface
further work (e.g. tests for lateral
mapping and DGPR survey is
extensions or depth extensions or
planned for the coming months.
large-scale step-out drilling).
• Diagrams clearly highlighting the • Drilling will be planned subject to
areas of possible extensions, results.
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	Criteria JORC Code Explanation Commentary
	including the main geological interpretations and future drilling • The images included show the location of the current areas of
	areas, provided this information is not commercially sensitive. interest.

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