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MRG METALS LIMITED Capital/Financing Update 2021

Oct 18, 2021

65374_rns_2021-10-18_f08f8240-5dc4-4541-bb60-0aba256cc5cb.pdf

Capital/Financing Update

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ASX ANNOUNCEMENT

19 October 2021

THREE VERY HIGH GRADE ZONES CONFIRMED AT KOKO MASSAVA

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Key Highlights

  • Analytical assay results from a 34 aircore infill drilling program confirm three very high grade +6% Total Heavy Mineral (THM) mineralised zones between the towns of Koko Massava and Malahice, within MRG’s Koko Massava Mineral Resource Estimation (MRE) area (refer ASX Announcements 22 April 2020, 10 March 2021 and 10 May 2021, Figure 3).

  • The combined surface footprint of these very high grade zones is approximately 1.8 sq km, with all zones remaining open to the east.

  • Multiple very high grade individual 1.5m intervals assayed up to 18.32% THM, with zones of consecutive samples assaying as high as 16.5m at 10.75% THM (21CCAC703, Table1).

  • Significant intersections from the program include:

  • 21CCAC703 0.0 – 58.5m 58.5m @ 5.77% THM including 6.0 – 58.5m 52.5m @ 6.23% THM and 39.0 – 55.5m 16.5m @ 10.75% THM;

  • 21CCAC709 0.0 – 58.5m 58.5m @ 5.64% THM including 7.5 – 58.5m 51.0m @ 6.05% THM and 25.5 – 33.0m 7.5m @ 8.95% THM and 42.0 – 54.0m 12.0m @ 8.68% THM;

  • 21CCAC687 0.0 – 19.5m 19.5m @ 6.2% THM;21CCAC710 0.0 – 22.5m 22.5m @ 6.05% THM including 3.0 – 22.5m 19.5m @ 6.68% THM;

  • 21CCAC699 0.0 – 19.5m 19.5m @ 5.83% THM including 4.5 – 19.5m 15.0m @ 6.37% THM;

  • 21CCAC706 0.0 – 27.0m 27.0m @ 6.12% THM;21CCAC694 0.0 – 61.5m 61.5m @ 4.34% THM including 33.0 – 43.5m 10.5m @ 7.42% THM;

  • 21CCAC711 0.0 – 28.5m 28.5m @ 5.38% THM including 10.5 – 28.5m 18.0m @ 6.27% THM;

  • 21CCAC679 0.0 – 58.5m 58.5m @ 5.54% THM including 52.5 – 58.5m 6.0m @ 11.39% THM.

  • 3 of the 34 aircore holes drilled, totaling 48 individual 1.5m samples, were drilled as twin holes and assayed by the same analytical laboratory (Western Geolabs Pty Ltd in Western

MRG Metals Limited ABN: 83 148 938 532 / ASX Code: MRQ Phone: +61 3 5330 5800 / Fax: +61 3 53330 5890

12 Anderson Street West, Ballarat VIC 3350 / PO Box 237 Ballarat VIC 3353 www.mrgmetals.com.au / [email protected]

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Australia) as used for the original Koko Massava MRE work. Reasonable comparison was achieved.

  • Due to very significant delays encountered for transport, quarantine and related heat treatment of the samples sent to Western Australia, most of the samples from the Koko Massava infill drilling program were analysed at MAK Analytical in South Africa. Samples from 2 holes (>5% of the total sample amount) have been dispatched for a 3-way interlaboratory check analysis exercise involving MAK Analytical; Western Geolabs and Diamantina Laboratories (WA).

  • An additional mineral assemblage study is now underway, involving 21 composite samples representing all of the interpreted lithological units within the infill drilled zone of the Koko Massava MRE.

  • An updated MRE for Koko Massava incorporating the new infill drilling data and additional mineralogical information has been commissioned at IHC Mining. The expected outcome of the updated MRE is an Indicated Resource (tonnage and grade) for two of the very high grade zones and at least Inferred Resource for the third (southernmost) zone.

  • The same route on additional mineralogical studies and maiden MREs is being followed for the Nhacutse and Poiombo deposits.

MRG Metals Limited (“ MRG ” or “ the Company ”) ( ASX Code: MRQ ) is pleased to announce the assay results from the recently completed aircore drilling program at a very high grade area (+6% THM) at the Company’s Koko Massava prospect (refer ASX Announcement 10 March 2021 and 10 May 2021, Figures 2, 3 and 4) which lies within the Corridor Central (6620L, Figures 1 and 2) licence.

The 34 aircore hole infill drilling program, totaling 2,085m of drilling and 1,448 samples (inclusive of QAQC samples), took place between the towns of Malahice and Koko Massava within an Inferred Resource area (Figure 3 and 4) of the maiden Mineral Resource Estimate ( MRE ) (refer ASX Announcement 22 April 2020, Figure 3). Within the Koko Massava global MRE is an Inferred Mineral Resource of 1,133 Mt @ 5.3% THM and 16% Slimes, containing 60 Mt of THM with a valuable mineral assemblage of 42% ilmenite, 7% Ti ilmenite/titanomagnetite, 2% zircon, 1% rutile, 1% leucoxene and 0.2% monazite.

The assay results from the infill drilling program confirm the presence and position of the three interpreted very high grade THM zones, which have a combined area of approximately 1.8 sq km that remains open towards the east (Figures 4 and 5). High THM grades were found from the assay results, for individual samples and thick intersections within holes (refer Cross section in Figure 5). Individual 1.5m intervals contained % THM grades as high as 18.32% THM, with individual holes returning as

MRG Metals Limited ABN: 83 148 938 532 / ASX Code: MRQ Phone: +61 3 5330 5800 / Fax: +61 3 53330 5890

12 Anderson Street West, Ballarat VIC 3350 / PO Box 237 Ballarat VIC 3353 www.mrgmetals.com.au / [email protected]

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high as 6.68% THM over 19.50m and 6.37% THM over 15.00m from surface or close to surface in 21CCAC710 and ‘699 respectively (Table 1).

7 of the 31 resource holes (excluding the twin holes) have assay grades of >6.0% THM over significant intervals from surface or close to surface, with 6 additional holes showing assay grades of between 5.5% and 6.0% THM over significant intervals from surface or close to surface. Additionally, several holes show extremely high grade intersections within the mineralised zone, with hole 21CCAC709 returning assay grades for 25.5 – 33.0m of 7.5m @ 8.95.2% THM and 42.0 – 54.0m of 12.0m @ 8.68% THM and hole ‘703 returning assay grades for 39.0 – 55.5m of 16.5m @ 10.75% THM within the broader mineralisation.

Due to very significant delays reported/quoted by the related contractors for transport, quarantine related heat treatment of the samples and analysis in WA, most of the samples from the Koko Massava infill drilling program were analysed at MAK Analytical in South Africa. A study of the visually estimated (VIS EST) % THM from field logging (which, as reported previously is generally a very reliable indicator of THM and silt grades) vs the assay results show that the MAK results report on average 0.89 % THM under the VIS EST results. Samples from 2 holes (>5% of the sample amount) have been dispatched for a 3-way inter-laboratory check analysis exercise by MAK Analytical; Western Geolabs and Diamantina Laboratories (WA). The results of the comparative 3-way analysis will be reported as soon as it has been received.

21 Composite samples from the individual 1.5m Heavy Mineral Concentrate (HMC) samples covering all interpreted lithological units are currently being studied for additional mineral assemblage investigations. The new data will augment previous studies done and will feed into an updated MRE and JORC compliant resource report for Koko Massava commissioned from IHC Mining, who also conducted the original MRE and report.

The 3 twin holes were drilled for quality assurance and quality control (QA/QC) of analytical results, the outcome of the results can be seen in Table 2. The twin holes were drilled ~5m from the original holes, sampling was done at 1.5m intervals as per the rest of the sampling during the infill drilling program. The original 3 holes were sampled at 3m intervals, results for the new holes were therefore averaged to 3m intervals for comparison. The % silt comparison between the 2 drilling programs is generally good with an average of only 0.56 % silt higher in the new drilling program, while the % THM was more variable and on average 0.66 % THM lower than the original program. The 1.5m intervals vs the original 3m intervals and the distance between the holes is thought to play a role in the differences.

MRG Metals Limited ABN: 83 148 938 532 / ASX Code: MRQ Phone: +61 3 5330 5800 / Fax: +61 3 53330 5890

12 Anderson Street West, Ballarat VIC 3350 / PO Box 237 Ballarat VIC 3353 www.mrgmetals.com.au / [email protected]

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MRG Metals Chairman, Mr Andrew Van Der Zwan said: “Our infill and expansion drilling program at Koko Massava has continued to deliver excellent results, with the latest assays confirming three very high grade +6% Total Heavy Mineral (THM) mineralised zones located between the towns of Koko Massava and Malahice. This area incorporates the Inferred Resource contained within our original Koko Massava MRE. Results from this drilling and additional mineralogical information will be included in our upcoming, updated MRE for Koko Massava, which we expect to detail substantial tonnage of high grade Indicated Resource.

From there, we will be following the same process for declaring our maiden MREs for both the Nhacutse and Poiombo deposits.”

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Figure 1: MRG Projects in Mozambique, aircore drilling taking place within Corridor Central (6620L) and Corridor South (6621L) projects.

MRG Metals Limited ABN: 83 148 938 532 / ASX Code: MRQ Phone: +61 3 5330 5800 / Fax: +61 3 53330 5890

12 Anderson Street West, Ballarat VIC 3350 / PO Box 237 Ballarat VIC 3353 www.mrgmetals.com.au / [email protected]

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Figure 2: Map of the Corridor Central (6620L) and Corridor South (6621L) Projects showing the locations of the various Prospects and the completed infill aircore holes at Koko Massava prospect.

MRG Metals Limited ABN: 83 148 938 532 / ASX Code: MRQ Phone: +61 3 5330 5800 / Fax: +61 3 53330 5890

12 Anderson Street West, Ballarat VIC 3350 / PO Box 237 Ballarat VIC 3353 www.mrgmetals.com.au / [email protected]

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Figure 3: Map of the Koko Massava Project within Corridor Central (6620L), showing MRE resource areas and drilled infill aircore holes, including twinned holes.

MRG Metals Limited ABN: 83 148 938 532 / ASX Code: MRQ Phone: +61 3 5330 5800 / Fax: +61 3 53330 5890

12 Anderson Street West, Ballarat VIC 3350 / PO Box 237 Ballarat VIC 3353 www.mrgmetals.com.au / [email protected]

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Figure 4: Map of the Koko Massava prospect within Corridor Central (6620L), showing the 3 very high grade zones in white (+6% THM areas) within a larger high grade area shown in black (+4.5% THM area) with the new aircore holes and assay grades and existing drilling information shown.

MRG Metals Limited ABN: 83 148 938 532 / ASX Code: MRQ Phone: +61 3 5330 5800 / Fax: +61 3 53330 5890

12 Anderson Street West, Ballarat VIC 3350 / PO Box 237 Ballarat VIC 3353 www.mrgmetals.com.au / [email protected]

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Figure 5: Cross section through the 3 very high grade zones (refer Figure 4 for section line).

MRG Metals Limited ABN: 83 148 938 532 / ASX Code: MRQ Phone: +61 3 5330 5800 / Fax: +61 3 53330 5890

12 Anderson Street West, Ballarat VIC 3350 / PO Box 237 Ballarat VIC 3353 www.mrgmetals.com.au / [email protected]

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Table 1 : Summary collar and lab assay THM% results for aircore drill data for Koko Massava Very High Grade deposit, drilling completed during early April 2021.

DRILLHOLE INFORMATION DRILLHOLE INFORMATION DRILLHOLE INFORMATION DRILLHOLE INFORMATION MINERALISATION MINERALISATION
LAB RESULTS
HOLE ID UTM
EAST
WGS84
UTM
NORTH
WGS84
ELEV'N
(M)
EOH
(M)
DRILL
TYPE
FROM TO INTERSECTION
(M)
% LAB
THM
21CCAC678 7260397 567899 101 66.0 AIRCORE 0.0 37.5 37.5 4.65
4.5 37.5 33.0 4.90
21CCAC679 7259943 567877 94 63.0 AIRCORE 0.0 58.5 58.5 5.54
4.5 58.5 54.0 5.75
52.5 58.5 6.0 11.39
21CCAC686 7260337 567565 104 51.0 AIRCORE 0.0 39.0 39.0 4.73
3.0 21.0 18.0 5.93
21CCAC687 7261096 567550 82 63.0 AIRCORE 0.0 19.5 19.5 6.20
21CCAC688 7261489 567296 67 69.0 AIRCORE 0.0 30.0 30.0 5.13
21CCAC689 7261143 566980 45 63.0 AIRCORE 0.0 30.0 30.0 4.06
6.0 30.0 24.0 4.37
21CCAC690 7260747 567275 70 69.0 AIRCORE 0.0 40.5 40.5 3.26
21CCAC691 7260742 566783 49 66.0 AIRCORE 0.0 66.0 66.0 4.85
4.5 30.0 25.5 5.70
21CCAC692 7260742 566627 51 67.5 AIRCORE 0.0 49.5 49.5 3.74
21CCAC693 7260540 566765 56 66.0 AIRCORE 0.0 66.0 66.0 3.61
0.0 15.0 15.0 4.36
21CCAC694 7260356 566332 52 63.0 AIRCORE 0.0 61.5 61.5 4.34
7.5 61.5 54.0 4.45
33.0 43.5 10.5 7.42
21CCAC695 7259644 566220 71 39.0 AIRCORE 0.0 21.0 21.0 3.38
21CCAC696 7259853 566096 42 61.5 AIRCORE 0.0 28.5 28.5 5.45
4.5 28.5 24.0 5.93
21CCAC697 7259955 566643 54 60.0 AIRCORE 0.0 15.0 15.0 2.85
21CCAC698 7260336 566933 68 66.0 AIRCORE 0.0 66.0 66.0 3.84
4.5 18.0 13.5 4.32
21CCAC699 7260135 567079 70 66.0 AIRCORE 0.0 64.5 64.5 3.91
0.0 19.5 19.5 5.83
4.5 19.5 15.0 6.37

MRG Metals Limited ABN: 83 148 938 532 / ASX Code: MRQ Phone: +61 3 5330 5800 / Fax: +61 3 53330 5890

12 Anderson Street West, Ballarat VIC 3350 / PO Box 237 Ballarat VIC 3353 www.mrgmetals.com.au / [email protected]

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21CCAC700 7259572 566936 68 69.0 AIRCORE 0.0 24.0 24.0 4.09
21CCAC701 7259937 567222 71 69.0 AIRCORE 0.0 18.0 18.0 5.29
3.0 18.0 15.0 5.57
21CCAC702 7259931 567541 70 63.0 AIRCORE 0.0 24.0 24.0 4.37
4.5 24.0 19.5 4.68
21CCAC703 7259337 567671 88 69.0 AIRCORE 0.0 58.5 58.5 5.77
6.0 58.5 52.5 6.23
39.0 55.5 16.5 10.75
21CCAC704 7259533 567523 88 69.0 AIRCORE 0.0 31.5 31.5 3.78
10.5 31.5 21.0 4.30
21CCAC705 7259738 567369 65 66.0 AIRCORE 0.0 21.0 21.0 5.38
21CCAC706 7259538 567277 82 69.0 AIRCORE 0.0 27.0 27.0 6.12
21CCAC707 7259171 567230 71 69.0 AIRCORE 0.0 21.0 21.0 4.27
21CCAC708 7259021 566879 86 63.0 AIRCORE 0.0 34.5 34.5 3.58
21CCAC709 7259054 566662 94 69.0 AIRCORE 0.0 58.5 58.5 5.64
7.5 58.5 51.0 6.05
25.5 33.0 7.5 8.95
42.0 54.0 12.0 8.68
21CCAC710 7259249 566522 85 63.0 AIRCORE 0.0 22.5 22.5 6.05
3.0 22.5 19.5 6.68
21CCAC711 7258985 566427 77 69.0 AIRCORE 0.0 28.5 28.5 5.38
10.5 28.5 18.0 6.27
21CCAC712 7258862 566830 98 69.0 AIRCORE 0.0 69.0 69.0 4.96
10.5 69.0 58.5 5.34
21CCAC713 7258267 567287 76 69.0 AIRCORE 0.0 24.0 24.0 4.07
6.0 24.0 18.0 4.51
0.0 48.0 48.0 5.05
21CCAC714 7258443 565882 88 69.0 AIRCORE 10.5 48.0 37.5 5.58

MRG Metals Limited ABN: 83 148 938 532 / ASX Code: MRQ Phone: +61 3 5330 5800 / Fax: +61 3 53330 5890

12 Anderson Street West, Ballarat VIC 3350 / PO Box 237 Ballarat VIC 3353 www.mrgmetals.com.au / [email protected]

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Table 2 : Twin drilling program, original aircore vs new twin aircore hole comparison. New holes analyzed at 1.5m intervals, original holes at 3m intervals, assay data for new holes averaged to 3m intervals for comparison. Refer Figures 2 and 4 for location of the twin holes.

Table 2: Twin drilling program, original aircore vs new twin aircore hole comparison. New holes analyzed at
1.5m intervals, original holes at 3m intervals, assay data for new holes averaged to 3m intervals for
comparison. Refer Figures 2 and 4 for location of the twin holes.
Table 2: Twin drilling program, original aircore vs new twin aircore hole comparison. New holes analyzed at
1.5m intervals, original holes at 3m intervals, assay data for new holes averaged to 3m intervals for
comparison. Refer Figures 2 and 4 for location of the twin holes.
Table 2: Twin drilling program, original aircore vs new twin aircore hole comparison. New holes analyzed at
1.5m intervals, original holes at 3m intervals, assay data for new holes averaged to 3m intervals for
comparison. Refer Figures 2 and 4 for location of the twin holes.
Table 2: Twin drilling program, original aircore vs new twin aircore hole comparison. New holes analyzed at
1.5m intervals, original holes at 3m intervals, assay data for new holes averaged to 3m intervals for
comparison. Refer Figures 2 and 4 for location of the twin holes.
Table 2: Twin drilling program, original aircore vs new twin aircore hole comparison. New holes analyzed at
1.5m intervals, original holes at 3m intervals, assay data for new holes averaged to 3m intervals for
comparison. Refer Figures 2 and 4 for location of the twin holes.
Table 2: Twin drilling program, original aircore vs new twin aircore hole comparison. New holes analyzed at
1.5m intervals, original holes at 3m intervals, assay data for new holes averaged to 3m intervals for
comparison. Refer Figures 2 and 4 for location of the twin holes.
Table 2: Twin drilling program, original aircore vs new twin aircore hole comparison. New holes analyzed at
1.5m intervals, original holes at 3m intervals, assay data for new holes averaged to 3m intervals for
comparison. Refer Figures 2 and 4 for location of the twin holes.
Table 2: Twin drilling program, original aircore vs new twin aircore hole comparison. New holes analyzed at
1.5m intervals, original holes at 3m intervals, assay data for new holes averaged to 3m intervals for
comparison. Refer Figures 2 and 4 for location of the twin holes.
Table 2: Twin drilling program, original aircore vs new twin aircore hole comparison. New holes analyzed at
1.5m intervals, original holes at 3m intervals, assay data for new holes averaged to 3m intervals for
comparison. Refer Figures 2 and 4 for location of the twin holes.
Table 2: Twin drilling program, original aircore vs new twin aircore hole comparison. New holes analyzed at
1.5m intervals, original holes at 3m intervals, assay data for new holes averaged to 3m intervals for
comparison. Refer Figures 2 and 4 for location of the twin holes.
Table 2: Twin drilling program, original aircore vs new twin aircore hole comparison. New holes analyzed at
1.5m intervals, original holes at 3m intervals, assay data for new holes averaged to 3m intervals for
comparison. Refer Figures 2 and 4 for location of the twin holes.
Table 2: Twin drilling program, original aircore vs new twin aircore hole comparison. New holes analyzed at
1.5m intervals, original holes at 3m intervals, assay data for new holes averaged to 3m intervals for
comparison. Refer Figures 2 and 4 for location of the twin holes.
Table 2: Twin drilling program, original aircore vs new twin aircore hole comparison. New holes analyzed at
1.5m intervals, original holes at 3m intervals, assay data for new holes averaged to 3m intervals for
comparison. Refer Figures 2 and 4 for location of the twin holes.
Table 2: Twin drilling program, original aircore vs new twin aircore hole comparison. New holes analyzed at
1.5m intervals, original holes at 3m intervals, assay data for new holes averaged to 3m intervals for
comparison. Refer Figures 2 and 4 for location of the twin holes.
3 BO REHOLE T WIN DRILLING PRO GRAM
NEW MINUS
ORIGINAL
%THM
NEW MINUS
ORIGINAL
%SILT
ORIGINAL AIRCORE HOLE NEW TWIN AIR CORE
HOLE_ID FROM TO %THM %SILT HOLE_ID FROM TO %THM %SILT %THM
3m
%SILT
3m
AC116 0.0 3.0 4.69 14.07 AC680 0.0 1.5 3.91 12.54 4.37 14.15 -0.33 0.08
1.5 3.0 4.82 15.76
3.0 6.0 5.58 17.60 3.0 4.5 2.69 10.24 3.54 15.21 -2.05 -2.40
4.5 6.0 4.38 20.17
6.0 9.0 5.74 18.48 6.0 7.5 3.16 18.29 3.58 18.77 -2.16 0.29
7.5 9.0 4.00 19.25
9.0 12.0 6.28 21.51 9.0 10.5 5.60 21.54 5.85 22.16 -0.43 0.65
10.5 12.0 6.10 22.77
12.0 15.0 6.77 28.55 12.0 13.5 7.24 21.06 7.07 22.46 0.30 -6.10
13.5 15.0 6.89 23.85
15.0 18.0 11.35 5.12 15.0 16.5 9.80 10.30 9.73 8.48 -1.63 3.36
16.5 18.0 9.65 6.66
18.0 21.0 8.93 5.70 18.0 19.5 7.73 7.14 8.82 8.12 -0.11 2.42
19.5 21.0 9.90 9.10
AC159 0.0 3.0 4.48 13.19 AC681 0.0 1.5 5.41 7.94 4.73 10.53 0.25 -2.66
1.5 3.0 4.05 13.12
3.0 6.0 5.41 16.15 3.0 4.5 4.84 14.94 5.25 17.09 -0.16 0.94
4.5 6.0 5.66 19.23
6.0 9.0 3.67 17.30 6.0 7.5 4.16 17.06 4.69 19.50 1.02 2.20
7.5 9.0 5.21 21.94
9.0 12.0 5.73 21.98 9.0 10.5 5.10 23.52 4.99 23.21 -0.74 1.23
10.5 12.0 4.88 22.90
12.0 15.0 5.93 24.00 12.0 13.5 5.96 23.27 5.88 22.59 -0.05 -1.41
13.5 15.0 5.79 21.91
15.0 18.0 6.10 31.82 15.0 16.5 5.79 27.82 5.76 29.72 -0.34 -2.10
16.5 18.0 5.73 31.62
18.0 21.0 8.53 27.57 18.0 19.5 5.87 31.19 7.29 30.26 -1.24 2.69
19.5 21.0 8.71 29.32
21.0 24.0 5.56 12.00 21.0 22.5 7.08 29.76 5.86 24.05 0.30 12.05
22.5 24.0 4.64 18.34
AC118 0.0 3.0 4.05 12.38 AC682 0.0 1.5 4.96 5.75 4.64 8.71 0.59 -3.68

MRG Metals Limited ABN: 83 148 938 532 / ASX Code: MRQ Phone: +61 3 5330 5800 / Fax: +61 3 53330 5890

12 Anderson Street West, Ballarat VIC 3350 / PO Box 237 Ballarat VIC 3353 www.mrgmetals.com.au / [email protected]

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1.5 3.0 4.31 11.66
3.0 6.0 4.87 6.84 3.0 4.5 3.61 8.41 4.18 10.86 -0.70 4.02
4.5 6.0 4.74 13.30
6.0 9.0 4.53 10.73 6.0 7.5 4.89 14.09 4.80 14.85 0.27 4.12
7.5 9.0 4.71 15.61
9.0 12.0 5.52 17.66 9.0 10.5 5.12 17.21 4.72 20.52 -0.80 2.86
10.5 12.0 4.32 23.83
12.0 15.0 6.35 20.38 12.0 13.5 5.20 20.20 5.08 21.59 -1.28 1.21
13.5 15.0 4.95 22.97
15.0 18.0 6.23 23.02 15.0 16.5 6.06 18.97 6.40 21.68 0.16 -1.34
16.5 18.0 6.73 24.39
18.0 21.0 6.21 9.90 18.0 19.5 4.30 10.41 3.74 9.66 -2.47 -0.24
19.5 21.0 3.18 8.91
21.0 24.0 11.24 10.47 21.0 22.5 8.59 8.10 10.39 8.56 -0.85 -1.91
22.5 24.0 12.19 9.02
24.0 27.0 12.55 8.96 24.0 25.5 10.99 6.90 9.10 6.05 -3.46 -2.92
25.5 27.0 7.20 5.19

Competent Persons’ Statement

The information in this report, as it relates to Mozambique Exploration Results is based on information compiled and/or reviewed by Mr JN Badenhorst, who is a member of the South African Council for Natural Scientific Professions (SACNASP) and the Geological Society of South Africa (GSSA). Mr Badenhorst is a contracted consultant of the Company and has sufficient experience which is relevant to the style of mineralisation and type of deposits under consideration and to the activity which has been undertaken 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 Badenhorst consents to the inclusion in this report of the matters based on the information in the form and context in which they appear.

This release is authorized by the Board of MRG Metals Ltd.

For more Information please contact:

MRG Metals Investor Relations Andrew Van Der Zwan Victoria Humphries Chairman NWR Communications M: +61 (0) 400 982 987 M: +61 (0) 431 151 676 E: [email protected] E: [email protected]

MRG Metals Limited ABN: 83 148 938 532 / ASX Code: MRQ Phone: +61 3 5330 5800 / Fax: +61 3 53330 5890

12 Anderson Street West, Ballarat VIC 3350 / PO Box 237 Ballarat VIC 3353 www.mrgmetals.com.au / [email protected]

Appendix 1

JORC Code, 2012 Edition – Table 1

Section 1 Sampling Techniques and Data

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

  • Criteria JORC Code explanation SamplingNature and quality of sampling (eg cut channels, random chips, or techniques 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 (eg ‘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 (eg submarine nodules) may warrant disclosure of detailed information.

Commentary

  • Aircore drilling was used to obtain samples at 1.5m intervals. • The larger 1.5m interval aircore drill samples were homogenized by rotating the sample bag prior to being grab sampled for panning.

  • • A sample of sand, approximately 20g, was scooped from the sample bag of each sample interval for wet panning and visual estimation.

  • The same sample mass is used for every pan sample visual estimation.

  • The consistent sized pan sample is to ensure visual calibration is maintained for consistency in percentage visual estimation of total heavy mineral (THM).

  • Images of pan concentrate samples with associated laboratory THM results are used in the field as comparisons to further refine visual estimation of THM.

  • Geologists enter the laboratory THM results for each sample on field log sheets against the visual estimation of THM to refine and further calibrate field visual estimation of THM.

  • Geotagged photographs are taken of each panned sample with the corresponding sample bag to enable easy reference at a later date.

  • • A sample ledger is kept at the drill rig for recording sample intervals and sample mass, and photographs are taken of samples for each hole to cross-reference with logging.

  • The large 1.5m drill samples have an average of about 7kg, range 1-21kg, and are being split down in Mozambique to approximately 300-600g using a three tier riffle splitter for export to the Primary processing laboratory.

  • At the laboratory the 300-600g laboratory sample was dried and split to 100g, de-slimed (removal of -45µm fraction) and oversize (+1mm fraction) removed, then subjected to heavy liquid separation using TBE to determine total heavy mineral (THM) content.

1

Criteria **JORC Code explanation ** Commentary
Drilling Drill type (eg core, reverse circulation, open-hole hammer, rotary air
•Reverse Circulation ‘Aircore’ drilling with inner tubes for sample
techniques blast, auger, Bangka, sonic, etc) and details (eg core diameter, return was used.
triple or standard tube, depth of diamond tails, face-sampling bit or •Aircore drilling is considered a standard industry technique for
other type, whether core is oriented and if so, by what method, etc). heavy mineral sand (HMS) mineralization. Aircore drilling is a form
of reverse circulation drilling where the sample is collected at the
face and returned inside the inner tube.
•Aircore drill rods used were 3m long.
•Drill rods used were 76mm in diameter and NQ diameter (80mm)
Harlsan aircore drill bits were used.
•All drill holes were drilled vertical.
•The drilling onsite is governed by an Aircore Drilling Guideline to
ensure consistency in application of the method between geologists.
Drill sample Method of recording and assessing core and chip sample •Drill sample recovery is monitored by measuring and recording the
recovery recoveries and results assessed. total mass of each 1.5m sample at the drill rig with a standard spring
Measures taken to maximise sample recovery and ensure balance.
representative nature of the samples. •While initially collaring the hole, limited sample recovery can occur
Whether a relationship exists between sample recovery and grade in the initial 0.0m to 3.0m sample intervals owing to sample and air
and whether sample bias may have occurred due to preferential loss into the surrounding loose soil.
loss/gain of fine/coarse material. •The initial 0.0m to 3.0m sample intervals are drilled very slowly in
order to achieve optimum sample recovery.
•The entire 1.5m sample is collected at the drill rig in large numbered
plastic bags for dispatch to the onsite initial split preparation facility.
•At the end of each drill rod, the drill string is cleaned by blowing
down with air to remove any clay and silt potentially built up in the
sample pipes and cyclone.
•The twin-tube aircore drilling technique is known to provide high
quality samples from the face of the drill hole.
•Wet and moist samples are placed into large plastic basins to dry
prior to splitting.
Logging Whether core and chip samples have been geologically and •The 1.5m aircore drill intervals are logged onto paper field log
geotechnically logged to a level of detail to support appropriate sheets at the drill site prior to transcribing into a Microsoft Excel
Mineral Resource estimation, mining studies and metallurgical spreadsheet at the field office. Field paper logs are scanned and
studies. archived digitally on a cloud storage site with the broader geological
Whether logging is qualitative or quantitative in nature. Core (or database.
costean, channel, etc) photography. •The aircore samples were logged for lithology, colour, grainsize,
The total length and percentage of the relevant intersections rounding,sorting,estimated %THM,estimated %slimes and any

2

Criteria JORC Code explanation Commentary Commentary
logged. relevant comments, such as slope and vegetation.
A representative portion of every sample interval is collected in a
chip-tray and archived at the field base for any additional logging. A
photograph is collected of the chip tray related to each hole and is
digitally archived on a cloud storage site.
Geological logging is governed by an Aircore Drilling Guideline
document with predefined log codes and guidance of what to
include in data fields to ensure consistency between individuals
logging data.
Data is backed-up each day at the field office to a cloud storage
site.
Data from the Microsoft Excel spreadsheets is imported into a
Microsoft Access database and the data is subjected to numerous
validationqueries to ensure data quality.
Sub-sampling
If core, whether cut or sawn and whether quarter, half or all core
The entire 1.5m aircore drill sample collected at the rig was
techniques taken. dispatched to a sample preparation facility to split with a three tier
and sample If non-core, whether riffled, tube sampled, rotary split, etc and riffle splitter to reduce sample mass.
preparation whether sampled wet or dry. The water table depth was noted in all geological logs if intersected.
For all sample types, the nature, quality and appropriateness of the Employees undertaking the primary sampling and splitting are
sample preparation technique. closely monitored by a geologist to ensure sampling quality is
Quality control procedures adopted for all sub-sampling stages to maintained.
maximise representivity of samples. Almost all of the samples are sand, silty sand, sandy silt, clayey
Measures taken to ensure that the sampling is representative of the sand or sandy clay and this sample preparation method is
in situ material collected, including for instance results for field considered appropriate.
duplicate/second-half sampling. The sample sizes were deemed suitable to reliably capture THM,
Whether sample sizes are appropriate to the grain size of the slime, and oversize characteristics, based on industry experience of
material being sampled. the geologists involved and consultation with laboratory staff.
Field duplicates of the samples are completed at a frequency of 1
per 25 primary samples.
Standard Reference Material (SRM) samples are inserted into the
sample streamat afrequency of 1per50 samples.
Quality of The nature, quality and appropriateness of the assaying and The wet panning of samples provides an estimate of the %THM
assay data
and
laboratory
tests
laboratory procedures used and whether the technique is
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 (eg standards, blanks,

content within the sample which is sufficient for the purpose of
determining approximate concentrations of %THM.
The field derived visual panned THM estimates are compared to a
range of laboratory derived THM images of pan concentrates. This
allows the field geologists to calibrate the field panned visual
estimated THM with known laboratory measured THM grades.
3Twinaircoreholeswere drilled ofpreviously drilled andreported

3

Criteria JORC Code explanation Commentary Commentary
duplicates, external laboratory checks) and whether acceptable aircore holes and analyzed by the same analytical laboratory as
levels of accuracy (ie lack of bias) and precision have been used during the initial drilling program.
established. A 3-way inter-laboratory check analysis QAQC program of c 5% of
the samples is taking place.
Verification of
The verification of significant intersections by either independent or
Selected visual estimated THM field data are checked by the Chief
sampling and alternative company personnel. Geologist.
assaying The use of twinned holes. Significant visual estimated THM >5% are verified by the Chief
Documentation of primary data, data entry procedures, data Geologist. This is done either in the field or via field photographs of
verification, data storage (physical and electronic) protocols. the pan sample.
Discuss any adjustment to assay data. The Chief Geologist has made numerous visits to the field drill sites
to train and embed process and procedure with field staff.
Twin aircore drilling of three (3) holes were done in this drilling
program and will be used to compare results from the analytical
laboratory between different drilling programs.
The geologic field data is manually transcribed into a master
Microsoft Excel spreadsheet which is appropriate for this stage in
the exploration program.
The raw field data is checked in the Microsoft Excel format first to
identify any obvious errors or outlier data. The data is then imported
into a Microsoft Access database where it is subjected to various
validation queries.
Test work has not yet been undertaken at a Secondary laboratory to
check the veracity of the Primary laboratory data. This work is
planned as part of the Company’s standard QA/QC procedure.
A process of laboratory data validation using mass balance is
undertaken to identify entry errors or questionable data.
Field and laboratory duplicate data pairs (THM/oversize/slime) of
each batch are plotted to identify potential quality control issues.
3 Twin aircore holes were drilled of previously drilled and reported
aircore holes and analyzed by the same analytical laboratory as
used during the initial drilling program.
Location of Accuracy and quality of surveys used to locate drill holes (collar and
Downhole surveys for these aircore holes are not required due to
data points down-hole surveys), trenches, mine workings and other locations the relatively shallow nature.
used in Mineral Resource estimation. A handheld 16 channel Garmin GPS is used to record the positions
Specification of the grid system used. of the aircore holes in the field.
Quality and adequacy of topographic control. Thehandheld GarminGPShas anaccuracy of +/-5m inthe

4

Criteria JORC Code explanation Commentary
horizontal.
•The datum used for coordinates is WGS84 zone 36S.
•The accuracy of the drillhole locations is sufficient for this early
stage exploration.
Data spacing Data spacing for reporting of Exploration Results. •Hole spacing on completion of this drill program will bring the
and Whether the data spacing and distribution is sufficient to establish spacing in the main target areas to 250m - 500m.
distribution the degree of geological and grade continuity appropriate for the •The spacing between aircore holes and between lines combined
Mineral Resource and Ore Reserve estimation procedure(s) and with that of the previously drilled auger holes is sufficient to provide
classifications applied. a good degree of confidence in geological models and grade
Whether sample compositing has been applied. continuity between holes for aeolian style HMS deposits.
•Each aircore drill sample is a single 1.5m sample of sand
intersected down the hole.
•No compositing has been applied to values of THM, slime and
oversize.
Orientation of
Whether the orientation of sampling achieves unbiased sampling of
•The aircore drilling was located at selected sites along the
data in possible structures and the extent to which this is known, interpreted strike of mineralization defined by reconnaissance auger
relation to considering the deposit type. and first phase aircore drill data and geophysical data interpretation.
geological If the relationship between the drilling orientation and the orientation
•Drill holes were vertical and the nature of the mineralisation is
structure of key mineralised structures is considered to have introduced a relatively horizontal.
sampling bias, this should be assessed and reported if material. •The orientation of the drilling is considered appropriate for testing
the lateral and vertical extent of mineralization without any bias.
Sample The measures taken to ensure sample security. •Field photographs are taken of each sample bag with corresponding
security sample number and panned sample in order to track numbers of
samples per hole and per batch.
•Aircore samples remained in the custody of Company
representatives while they were transported from the field drill site to
Chibuto field camp for splitting and other processing.
•Aircore samples remain in the custody of Company representatives
until they are transported to Maputo for final packaging and
securing.
•The Company uses a commercial shipping company, Deugro or
DHL, to ship samples from Mozambique to Perth.
Audits or The results of any audits or reviews of sampling techniques and •Internal data and procedure reviews are undertaken.
reviews data. •No external audits or reviews have been undertaken.

5

Section 2 Reporting of Exploration Results

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

Criteria JORC Code explanation Commentary
Mineral Type, reference name/number, location and ownership including •The exploration work was completed on the Corridor Central
tenement and
agreements or material issues with third parties such as joint
tenement (6620L) which is 100% owned by the Company through its
land tenure ventures, partnerships, overriding royalties, native title interests, 100% ownership of its subsidiary, Sofala Mining & Exploration
status historical sites, wilderness or national park and environmental Limitada, in Mozambique.
settings. •All granted tenements have initial 5 year terms, renewable for 3
The security of the tenure held at the time of reporting along with any years. An application for renewal of tenement 6620L was submitted in
known impediments to obtaining a licence to operate in the area. 03 September 2020 and is under review.
•Traditional landowners and village Chiefs within the areas of influence
were consulted prior to the aircore drilling programme and were
supportive of the programme.
•Representatives from the Provincial Directorate of Mineral Resources
and Directorate of Lands, Environment and Rural Development, and
District Planning and Infrastructure Departments are also part of the
consent and consultation process.
•An Environment Management Plan was prepared by an independent
consultant and submitted to the Gaza Provincial Directorate of Lands,
Environment and Rural Development in accordance with Mining Law
and Regulations. An Environmental License has been obtained by the
Company.
Exploration Acknowledgment and appraisal of exploration by other parties. •Historic exploration work was completed by Corridor Sands Limitada,
done by other a subsidiary of Southern Mining Corporation and subsequently
parties Western Mining Corporation, in 1999. BHP-Billiton acquired Western
Mining Corporation and undertook a Bankable Feasibility Study of the
Corridor Deposit 1 about 15km north of the Company’s tenements.
•The Company has obtained digital data in relation to this historic
information.
•The historic data comprises limited Aircore/Reverse Circulation
drilling.
•The historic results are not reportable under JORC 2012.
Geology Deposit type, geological setting and style of mineralisation. •Two types of heavy mineral sand mineralisation styles are possible
along coastal Mozambique:
1. Thin but high grade strandlines which may be related to marine
or fluvial influences, and
2. Large but lowergrade deposits related to windblown sands.

6

Criteria JORC Code explanation Commentary
•The coastline of Mozambique is well known for massive dunal
systems such as those developed near Inhambane (Rio Tinto’s
Mutamba deposit), near Xai Xai (Rio Tinto’s Chilubane deposit) and
in Nampula Province (Kenmare’s Moma deposit). Buried strandlines
are likely in areas where palaeoshorelines can be defined along
coastal zones.
Drill hole A summary of all information material to the understanding of the •Summary drill hole information is presented within Table 1 of the main
Information exploration results including a tabulation of the following information body of text of this announcement.
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. _
Data In reporting Exploration Results, weighting averaging techniques, •No cut-offs were used in the downhole averaging of results.
aggregation maximum and/or minimum grade truncations (eg cutting of high •The visual estimated THM% averaging is grade-weighted.
methods grades) and cut-off grades are usually Material and should be stated. •An example of data averaging is shown below.
Where aggregate intercepts incorporate short lengths of high grade
results and longer lengths of low grade results, the procedure used
HOLE_ID FROM TO PCT VIS
THM
Average
visTHM
Average
visTHM
for such aggregation should be stated and some typical examples of 19CCAC104 0.0 3.0 6.0
such aggregations should be shown in detail.
The assumptions used for any reporting of metal equivalent values
should be clearly stated.
19CCAC104
19CCAC104
19CCAC104
19CCAC104
19CCAC104
19CCAC104
19CCAC104
19CCAC104
3.0
6.0
9.0
12.0
15.0
18.0
21.0
24.0
6.0
9.0
12.0
15.0
18.0
21.0
24.0
27.0
6.0
6.0
8.0
6.2
6.6
5.5
8.0
4.0
37.5m @ 4.9% 27m @ 6.3%
19CCAC104 27.0 30.0 2.5
19CCAC104 30.0 33.0 2.0
19CCAC104 33.0 36.0 1.7
19CCAC104 36.0 37.5 1.5
Relationship These relationships are particularly important in the reporting of •The nature of the mineralisation is broadly horizontal, thus vertical
between Exploration Results. aircore holes are thought to represent close to true thicknesses of the
mineralisation
If the geometry of the mineralisation with respect to the drill hole
mineralisation.
widths and angle is known, its nature should be reported.

7

Criteria JORC Code explanation Commentary
intercept If it is not known and only the down hole lengths are reported, there •Downhole widths are reported.
lengths should be a clear statement to this effect (eg ‘down hole length, true
_width not known’). _
Diagrams Appropriate maps and sections (with scales) and tabulations of •Figures are displayed in the main text.
intercepts should be included for 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 Where comprehensive reporting of all Exploration Results is not •A summary of the visual estimated THM% data is presented in Table
reporting practicable, representative reporting of both low and high grades 1 of the main part of the announcement, comprising downhole
and/or widths should be practiced to avoid misleading reporting of averages, together with maximum and minimum estimated THM
Exploration Results. values in each hole.
Other Other exploration data, if meaningful and material, should be reported
•No other material exploration information has been gathered by the
substantive including (but not limited to): geological observations; geophysical Company.
exploration survey results; geochemical survey results; bulk samples – size and
data 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 (eg tests for lateral •Further work will include heavy liquid separation analysis for
extensions or depth extensions or large-scale step-out drilling). quantitative THM% data.
Diagrams clearly highlighting the areas of possible extensions, •Additional mineral assemblage and ilmenite mineral chemistry
including the main geological interpretations and future drilling areas, analyses will also be undertaken on suitable composite HM samples
provided this information is not commercially sensitive. to determine valuable heavy mineral components.
•As the project advances, TiO2 and contaminant test work analyses
will also be undertaken.

8