METALSGROVE MINING LTD — Interim / Quarterly Report 2024

Oct 23, 2024

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QUARTERLY ACTIVITIES REPORT FOR PERIOD ENDED 30 September 2024

HIGHLIGHTS

EXPLORATION ACTIVITIES

Date 24 October2024

ASX Code MGA

Shares on Issue 105,420,000

Bruce Gold-Copper Prospect

• During the quarter, the Company completed its initial surface mapping and sampling program over areas prospective for high-grade gold and copper at the Bruce Prospect, Central Desert Region, Northern Territory.

• The work was to follow up on at least three previously identified ferruginous quartz vein sets with strike lengths up to 2.8 km long, with the limited samples achieved returned the best high-grade gold values of 53.0 g/t, 15.0 g/t and 7.2 g/t, and copper values of up to 2.66% .

• Assay results will be announced when available.

Company Directors

Mr Richard Beazley Non-Executive Chairman

Mr Lijun Yang Managing Director and CEO

Mr Haidong Chi Non-Executive Director

Mr John Reynolds Alternate Director to Mr Haidong Chi

Mr Peter Stern Non-Executive director

- Edward Creeks Copper Zinc Prospect

• During the quarter, the Company completed a mineralisation validation site visit and a four-hole RC drill program to follow the historical high-grade intersection of 4.5 meters from 47.45 m at 2.25% Cu, 0.11% Pb, 1.54% Zn and 0.14 g/t Au .

• Assay results will be announced once available.

Leake Gold-Copper Prospect

• During the Quarter, the Company won the ballot for exploration tenement E 77/3152 prospective for gold and copper, located approximately 135 km south of the Southern Cross township and gold province in Western Australia.

CORPORATE SUMMARY

• Cash position as at 30 September 2024 of approximately $2.261M.

Mr Luke Huang Non-Executive director

Chief Financial Officer Ms Rebecca Broughton

Company Secretary Ms Rebecca Broughton

Contact Details

• Board strengthened during the Quarter with the appointment of Mr Luke Huang as Non-Executive Director.

MANAGEMENT COMMENTARY

Commenting on the September quarter, Managing Director Lijun Yang said : “With the favourable environment for gold and copper, I am pleased that, during the Quarter, we were able to undertake on-ground exploration at the Bruce-Gold Copper Prospect and the Edwards Creek Copper-Zinc Prospect, both in the Northern Territory, as well as being awarded tenement E 77/3152 in Western Australia with its high prospectivity for copper and gold.”

Suite 9, Level 2

389 Oxford Street

“I look forward to reporting on assay results for the work undertaken at both Bruce and Edwards Creek once they are received.”

Mount Hawthorn WA 6016

T: + 61 8 9380 6789

E: info@metalsgrove.com.au

“I am pleased to secure Mr Luke Huang’s services as a Director of the Company as his experience and knowledge will be of significant benefit to the team.”

W: metalsgrove.com.au

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ACN: 655 643 039

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Multi-metal resources exploration company MetalsGrove Mining Limited ( ASX:MGA ) (“ MetalsGrove ” or the “ Company ”) is pleased to provide its Quarterly Activities Report for the period ended 30 September 2024 (“ Quarter ”).

- Bruce Gold Copper Prospect

The Bruce Prospect, prospective for gold and copper, comprises a single granted mineral exploration licence (EL31225) comprising an area of approximately 17,722ha located within the Central Desert Region of the Northern Territory, approximately 300 km by road from Alice Springs and 13 km north of the Plenty Highway (Figure 1).

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Figure 1: Map illustrating location of Bruce Gold-Copper Prospect.

On 17 September 2024, MetalsGrove commenced a surface mapping and sampling program over areas prospective for high-grade gold and copper.

The mapping program planned to investigate the northern portion of the tenement where little work has previously been undertaken, including to further evaluate at least three main ferruginous quartz vein sets with strike lengths up to 2.8 km along the westeast trend.

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The rock sampling program has as its aim to sample quartz veins previously identified but not yet sampled. Of the few veins that have previously been sampled, the best high-grade gold-copper assays include gold values of 53.0 g/t, 15.0 g/t and 7.2 g/t, and copper values of up to 2.66% (Figure 2).

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Figure 2: Map illustrating quartz veins at Bruce Prospect showing rock chip sample results.

In addition to the above work, MetalsGrove also undertook a 200m by 50m (200 meters sample line gap and 50 meters samples gap within the line) surface soil sampling program to test a correlation with the low magnetic intensity area (Figure 3).

Upon completion of the field work, rock chip and soil samples were submitted for assay analysis.

Assay results are pending.

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Figure 3: Map illustrating soil sampling program over area of low magnetic intensity.

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– - Edwards Creek Copper Zinc Project

The Edwards Creek Project, prospective for copper and zinc, comprises a single granted mineral exploration licence (EL32420) of an area of approximately 7,568ha located approximately 85 km north-northeast of Alice Springs, Northern Territory (Figure 4).

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Figure 4: Map illustrating location of Edwards Creek Project, as well as MetalsGrove’s other Northern Territory projects.

At Edwards Creek, an historical drill program was undertaken by CRA Exploration Pty Ltd in 1980 and 1981, with the best intercept being 4.5 m from 47.45 m at 2.25% Cu, 0.11% Pb, 1.54% Zn, 0.14 g/t Au in hole DD80EC01 .

More recent drilling conducted by Territory Exploration Pty Ltd in 2018 and MetalsGrove in 2023 have traced mineralisation down dip and along strike with four step outs of up to 170m away from the historical DD80EC01 intersection .

Mineralization validation site visit

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In considering whether Edwards Creek could potentially host a scalable copper-zinc mineralisation system, during the Quarter, MetalsGrove’s geologist undertook a site visit for the purpose of validating collar locations from previously drilled holes as well as mapping the extent of known gossans at surface (Figure 5).

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Figure 5: Aerial photograph of Edwards Creek identifying location of drill collars and assays.

All recent collar locations were confirmed with malachite staining observed in numerous sites across the gossan outcrops (Figure 6).

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Figure 6: Map illustrating historical drilling, planned drilling and newly mapped gossan locations.

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The newly mapped gossan boundary varies slightly from the historically mapped gossan outcrops. Mineralised samples, which are strongly oxidised, have assayed with 1-2% magnetite, and with trace pyrite and chalcopyrite observed.

A photo of an oxide ridge with malachite staining is set out in Figure 7.

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Figure 7: Photo of oxide ridge with malachite staining.

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The stratabound mineralized body was interpreted as a strongly altered volcanic massive sulphide. This lithology, which was intersected in every drill hole, has an orientation of 20° dipping at 50° to the east. The mineralisation remains open along strike and at depth.

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RC drilling

During the Quarter, MetalsGrove completed a four-hole RC drill program for a total of 508 meters to follow the existing intersection of drill hole DD80EC01 along strike to the north and down dip.

A cross section through drill hole DD80EC01 and one of the proposed drill holes to test the potential of this high-grade mineralisation shoot is set out in Figure 8.

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Figure 8: Cross-section looking north-northeast showing historical intersection of DD80EC1 and 2024 planned drilling.

The program was conducted by Strike Drilling Pty Ltd using a Schram RC drill rig, with all holes angled between 55-84° to the west, roughly perpendicular to the orientation of the mapped gossan structure.

A map setting out the location of drill collars is set out in Figure 9.

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Figure 9: Map illustrating completed drilling holes in Edwards Creek.

Drilling information is set out in Table 1.

Table 1. Edwards Creek RC drill collars completed

Hole Id	East (GDA94z53)	North (GDA94z53)	Elev (SRTM)	Max Depth (m)	Dip (⁰)	Azimuth (⁰)
24EC001	400321	7455269	727.8	154	-60	265
24EC002	400394	7455298	721.7	154	-55	277
24EC003	400363	7455351	727.9	100	-50	287
24EC004	400363	7455351	727.9	100	-84	280

All reported lengths are to be considered downhole lengths unless stated as calculated true thickness.

RC drill holes were logged for various geological attributes, including colour, lithology, oxidation, alteration, mineralisation and veining by site geologists (Figure 10).

Lithologies including gabbro, diorite, biotite and garnet schist were recorded as typical host-rock to the stratabound strongly altered volcanic massive sulphide copper and zinc mineralization.

Portable XRF (pXRF) was conducted using an Olympus Delta to fast detect the base metals mineralization on 1m intervals (Figure 10 and Table 2).

Table 2. Notable pXRF reading (≥ 1000 ppm) result

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Hole Id	Depth from(m)	Depth to(m)	Intervals(m)	Notable pXRF reading (≥ 1000ppm)
24EC001	106	110	4	1.30% Cu
	103	127	24	1.90% Zn
24EC002	53	54	1	0.99% Cu
24EC003	51	52	1	0.19% Cu
	56	57	1	1.90% Zn
24EC004	46	53	7	1.30%-3.76% Zn

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Note that handheld XRF (pXRF) results included in this report are preliminary only. The use of spot pXRF readings only provides an indication of the order of magnitude of formal assay results. The samples that are the subject of this report will be submitted for laboratory assay and some variation from the results presented herein should be expected.

Samples were collected with three-metre composites unless the pXRF copper or zinc grade was greater than 1000 ppm, in which case one-metre intervals (approximately 2-3 kg) from a rig-mounted cone splitter was collected.

The samples were delivered to the lab for four acid digestion (ICP-OES) for multi element analysis

Results will be reported once available.

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Figure 10: Chip tray photos for hole 24 EC001, 003 and 004.

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Leake Prospect Tenement Awarded

During the Quarter, the Company announced that, through a recent ballot, it had won the rights to ELA 77/3152, a tenement prospective for copper and gold.

The tenement, which is situated approximately 135 km south of the Southern Cross township and gold province and approximately 385 km east of Perth, comprises an area of approximately 66.7 km[2] (refer Figure 11).

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Figure 11. Map identifying location of Leake Prospect - tenement ELA 77/3152 – shown to the far right.

The tenement is one of nine applied for in mid-2023 by the previous MetalsGrove management team in the broader Dundas/Leake area with the primary target being lithium. However, given the recent demise in the market for lithium, MetalsGrove decided to relinquish eight of the tenements but proceed to grant the copper/ gold opportunity in ELA 77/3152. To reflect the change in focus from lithium to copper-gold, the opportunity will be known as the Leake Prospect (previously, the Dundas Prospect).

The Leake Prospect is situated within a substantial tenement package prospective for gold, nickel and lithium held by Forrestania Resources Limited (ASX: FRS) (“ Forrestania ”).

Forrestania’s Great Southern Gold Mine is located approximately two kilometers from the southernmost tip of ELA 77/3152 along a granite-granite contact trending onto ELA 77/3152.

The area has a rich mining history with approximately 1,000t at 7.13g/t in the 1920s and 2053t at 5.72g/t during the 1980s extracted .

A map illustrating tenement ELA 77/3152 on local area geology, and its location with respect to Forrestania’s Great Southern Gold Mine, is set out in Figure 12.

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Figure 12: Map identifying tenement ELA 77/3152 on local area geology, and its location with respect to Forrestania’s Great Southern Gold Mine.

Upper Coondina and Zimbabwe Lithium Prospects

Given the disappointing exploration result and considering the weakness in the lithium market, the Company relinquished its Upper Coondina and Zimbabwean lithium Prospects during the Quarter.

Other Prospects

No exploration activities of substance were conducted at any of the Company’s other prospects during the Quarter.

The Company is currently reviewing its position with respect to:

• The Box Hole Project targeting rare earth elements (REE) and base metals In the Northern Territory near Alice Springs

• The Woodie Woodie North Project targeting manganese in Western Australia

A location map identifying all prospects is set out in Figure 13.

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Figure 13: Map identifying location of MetalsGrove’s Australian projects.

Corporate Summary

Cash Position

At the end of the Quarter, the Company held $2,261,000 in cash.

New Director Appointment

The Company announced during the Quarter that Mr Luke Huang had been appointed as a Non-Executive Director of the Company.

Mr Huang is an accomplished Investment Director with extensive experience in Australia’s resources operation and investment industry. Mr Huang has a solid background in economics and finance, demonstrated by his leadership as the Managing Director at Au Xingao Investment, where he successfully resolved high-stakes litigation and secured significant assets for his company.

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Mr Huang holds a Chartered Financial Analyst qualification and is proficient in financial analysis, portfolio management, and risk measurement. His career is marked by his ability to build and manage efficient teams, his strategic oversight of resource portfolios, and his fluency in both English and Chinese, enabling effective communication in diverse business environments.

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ASX Additional Information

The Company provides the following information pursuant to ASX Listing Rule requirements:

• ASX Listing Rule 5.3.1:

Exploration and Evaluation Expenditure spend during the quarter was $102,000.

• ASX Listing Rule 5.3.2:

The Company confirms that there was no mine production and development activities for the quarter.

• ASX Listing Rule 5.3.5:

Payments to related parties of the Company and their associates during the quarter totalled $106,000 relating to Director fees and entitlements.

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Tenements

The table below sets out the Company’s tenement portfolio at the end of the Quarter.

Project	Tenement ID	Holder	Lease Status
Woodie Woodie North	E 45/5945	MetalsGrove	Granted
BRUCE	EL 31225	Territory Lithium	Granted
BOX HOLE	EL 32419	Territory Lithium	Granted
EDWARDS CREEK	EL 32420	Territory Lithium	Granted
LEAKE	ELA 77/3152	MetalsGrove	Application

Note: Territory Lithium Pty Ltd is a wholly owned subsidiary of MetalsGrove Mining Limited.

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

SHAREHOLDER ENQUIRIES		MEDIA ENQUIRIES
Mr Lijun Yang Managing Director & CEO MetalsGrove Mining Ltd LijunY@metalsgrove.com.au		Sam Burns SIXº Investor Relations +61 400 164 067 sam.burns@sdir.com.au

About MetalsGrove

MetalsGrove Mining Limited (ASX: MGA) is a multi-metal resources exploration company focused on the exploration of copper-gold, manganese and base metal projects in Western Australia and the Northern Territory of Australia.

Competent Person Statement – Exploration Strategy

The information in this announcement that relates to exploration strategy and results is based on information provided to and compiled by Mr Lijun Yang who is currently a member of the Australian Association of Geologists (MAIG). Mr Lijun Yang is Managing Director and CEO of MetalsGrove Mining Limited.

Mr Lijun Yang 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 Lijun Yang consents to the inclusion in this announcement of the information contained herein, in the form and context in which it appears.

This announcement includes information that relates to Exploration Results prepared and first disclosed under the JORC Code (2012) and extracted from the Company’s previous ASX announcements. A copy of all these announcements are available from the ASX Announcements page of the Company’s website: https://metalsgrove.com.au/

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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.

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 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.

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