MRG METALS LIMITED — Capital/Financing Update 2021

Aug 10, 2021

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ASX ANNOUNCEMENT

11 August 2021

VERY HIGH ASSEMBLAGE (64.40 to 66.57 %) VALUABLE HEAVY MINERAL (VHM) ESTABLISHED DOWN THE EASTERN SECTOR OF MRG TENEMENTS

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Key Highlights

• A recently completed mineral assemblage study at the Nhacutse deposit, together with interpretation of all previous mineralogy data has confirmed there is a substantial increase in the VHM content of the HMC from west to east within the Nhacutse resource area.

• The study also confirmed previously reported exploration data and demonstrated the existence of a north-south trending very high VHM domain extending down the eastern side of MRG’s Corridor South tenement (refer ASX Announcement 31 July 2020).

• Importantly, mineralogical work is now underway to understand the potential for zones of elevated VHM within the boundaries of the upcoming Mineral Resource Estimations (MREs) at Koko Massava, Nhacutse and Poiombo.

Specific outcomes of the Nhacutse study include:

• identified an increase in the Valuable Heavy Mineral (Rutile + Leucoxene + Altered Ilmenite + Ilmenite + Zircon) content of the Heavy Mineral Concentrate (HMC) from west to east within each of the resource modelling areas in these deposits.

• identified 2 distinctly different HMC types over lithological boundary, Type 1 in red/red-brown coloured sand and Type 2 in white/grey coloured sand. Whilst Type 1 sand is already well known to MRG within the Koko Massava MRE, Type 2 represents future target for further exploration.

• Type 1 is characterised by relatively high unaltered ilmenite, higher magnetite/Fe(HiTi)-oxides, lower altered ilmenite, andalusite, zircon and chromite.

• Type 2 ranges from 64.40 to 66.57 % VHM with higher Zircon also up to 3.66%. Sample CSNH03 in the Type 2 sand returned a VHM % of 73.37% (refer ASX Announcement 31 July 2020).

• 3 discrete exploration targets have resulted from this study, where higher VHM may correspond with high grade % HMC. These targets will be drilled at first opportunity.

• Drilling has currently been halted while MRG awaits laboratory assays to undertake Mineral Resource Estimates (MREs) on the very high grade Koko Massava, Nhacutse and Poiombo. Reconnaissance auger drilling will commence in the eastern domain to identify areas with high THM grade and the very high VHM content.

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 / info@mrgmetals.com.au

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MRG Metals Limited (“ MRG ” or “ the Company ”) ( ASX Code: MRQ ) is pleased to release its most recent excellent results from ongoing mineralogical studies within its Corridor South (6621L) exploration license (Figure 1), as well as interpretive work done on the new and historic mineralogical information.

The most recent study involved 8 composites from 4 aircore holes in and around the Nhacutse deposit (refer previous ASX Announcements 26 August and 31 August 2020; Figures 2 and 3), hole 20CSAC572 in the far west and the rest (20CSAC585, 20CSAC586 and 20CSAC587) towards the east of the deposit (Figure 2). The studies involved 8 composite samples (upper and lower depth interval composite for each hole) and was carried out to augment existing mineralogical data available for Corridor South (refer ASX Announcement 7 January 2021).

The aim of the study was twofold, firstly to further investigate the increase in VHM content of the HMC from west to the east across the Nhacutse deposit, the trend also shown in data from the rest of the Corridor South (6621L) licence (refer ASX Announcement 31 August 2020). Secondly, the study was investigating MRG’s understanding of the very high VHM content of the HMC in the far east of Corridor South, with the contact between red / red-brown aeolian sand in the west and a white / grey sand towards the east of the deposit, interpreted as the boundary with the very high VHM % sands found in the white/grey sand (Figure 3). The study specifically tested MRG’s developing understanding of the relationship between this clear lithological boundary (red/red-brown sand vs white/grey sand) and the significant increase in VHM content within the white/grey sand immediately across this boundary (Figure 3).

Two very different HMC mineral compositions were found, mirroring the lithological interpretation:

• Type 1 % VHM (corresponding to the mineralised sand found in the Koko Massava, Nhacutse and Poiombo deposits) in the red / red-brown sand ranged from 43.59 to 52.13 (the lower value west and the higher value west); and

• Type 2 % VHM in the white / grey sand ranged from 64.40 to 66.57 % VHM (Table 1). Higher Zircon content, as high as 3.66% was also found in the Type 2 samples.

The results from this study were then incorporated into the available data from the larger Corridor South licence (Figure 4) to identify target areas with higher % VHM, with 3 large target areas identified with very high VHM % (Figure 5). These targets will now be further explored to identify areas where higher Total Heavy Mineral (THM) grades corresponds to the very high VHM%.

MRG Metals Chairman, Mr Andrew Van Der Zwan said: ”As we are moving towards defining 3 separate MRE’s across our Corridor portfolio, these latest results are both encouraging and very exciting as they add a further string to our bow in terms of exploration upside.

“What is key to understand here is that these new results have identified a different assemblage sands to what our previous work is based on and this new sand type (Type 2) demonstrates very high levels

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 / info@mrgmetals.com.au

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of Ilmenite and Zircon. Follow up drilling will be performed to see whether High THM is achievable with this assemblage.

“Whilst we remain focused on progressing and reporting our Koko Massava/Poiombo/Nhacutsce MREs in the near term, this new high VHM Type 2 sand potentially brings significant future upside to the table as well as providing optimism that the assemblage in the new eastern zone of the Koko Massava high THM MRE target will also reflect improving Ilmenite and Zircon.”

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Figure 1: Map of the location of the Corridor South (6621L) project in relation to other MRG licences.

Nhacutse mineralogical study

The most recent mineralogical studies within Corridor South (6621L) involved 8 composite samples (upper and lower depth interval composite for each hole) from 4 aircore holes drilled in the Nhacutse deposit area. The mineralogical work was done to augment existing mineralogical data, but also to test MRG’s understanding of this change in HMC composition from the west to east of the Corridor South license and then particularly the contact between red / red-brown aeolian sand in the west and a white / gray sand towards the east of the deposit interpreted as the boundary with the high VHM % sands found in the white / grey sand (Figure 3).

A composited sample from an auger drillholes within the white/grey sand in the vicinity of the 3 eastern holes (20CSAC585, 20CSAC586 and 20CSAC587) in sample CSNH03 (composite from auger

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 / info@mrgmetals.com.au

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hole 19CSHA067; Figure 2 and 3) analysed by CSIRO Mineral Resources via particle analyses, QemScan and Bulk Mineralogy indicated the VHM % (Rutile + Leucoxene + Altered Ilmenite + Ilmenite + Zircon) of 73.37% (refer ASX Announcement 31 July 2020). A similar pattern was found from other Corridor South (6621L) mineralogical work, particularly samples CSPM19A, CSPM20A and CSPM31A in the east of the Nhacutse and Poiombo deposits (refer ASX Announcement 31 July 2020, Figure 2), this clearly illuminates the potential of the eastern area for supplying high % VHM material in close proximity to the Nhacutse and Poiombo High Grade Zones.

Two very different HMC mineral compositions were found, mirroring the lithological interpretation, with Type 1 % VHM in the red/red-brown sand ranged from 43.59 to 52.13 and Type 2 % VHM in the white/grey sand ranged from 64.40 to 66.57 % VHM (Table 1). Higher Zircon content, as high as 3.66%, was also found in the Type 2 samples. The results from this study were then incorporated into the available data from the larger Corridor South licence (Figure 4) to identify target areas with higher % VHM, with 3 large target areas identified with very high VHM % (Figure 5). These targets will now be further explored to identify areas where higher THM grades corresponds to the very high VHM%.

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 / info@mrgmetals.com.au

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Figure 2: Map of the Corridor South (6621L) Projects showing the locations of all composited drillholes used for mineralogic studies.

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 / info@mrgmetals.com.au

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Figure 3: Map of the 4 drillholes in relation to the red/red-brown vs white/grey sand boundary.

Corridor South (6621L) mineralogical studies

The new mineralogical study found exactly the same trend as previous studies. That is, much higher VHM % found in the white / grey sand areas / lithology in the east of the Corridor South license versus the red/red-brown sand lithology. Looking at a plot of the VHM % (Figure 4) within the Corridor South license, with the red/brown vs white/grey boundary derived from Google Earth imagery, the trend is very clear in the northeast of the license where the Nhacutse and Poiombo licenses are found. Generally, the trend is therefore lower VHM% in the west of most of the license, the VHM% then increasing slightly to the east, and then a sharp increase in VHM% over the lithological boundary. Towards the south (Zulene deposit) of the license there is gradual but clear increase in VHM% as well (Figure 4).

When investigating the trends of individual minerals within the VHM assemblage, the trends clearly show the reason for the increase of VHM % over the lithological boundary. A sharp increase in ilmenite content in the HMC can be seen in the northeast of the license over the lithological boundary. It does not appear as if there is an increase in magnetite content of the HMC to the south of the license.

For leucoxene / weathered ilmenite content in the HMC (Figure 4) the trend is very clear. There is a sharp increase from nearly no leucoxene / weathered ilmenite in the HMC to the west of the lithological boundary, to a significant amount to the east of the boundary (as seen in the results from the new mineralogical study). There is not a clear increase in leucoxene / weathered ilmenite content of the HMC to the south of the license.

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 / info@mrgmetals.com.au

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For rutile content in the HMC (Figure 4) the trend is clear, with significantly more zircon in the east of the lithological boundary. There is a clear increase in rutile content of the HMC towards the south of the license.

For Zircon and Rutile (Figure 4) content in the HMC is the same, with a sharp increase in both over the lithological boundary.

For magnetite content in the HMC there is a very sharp decrease in the northeast of the license over the lithological boundary, with nearly no magnetite in this area. It does appear as if there is a decrease in magnetite content of the HMC to the south of the license as well.

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Figure 4: Maps of VHM % of HMC, then Zircon, Rutile, altered ilmenite / Leucoxene content of the HMC within Corridor South.

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 / info@mrgmetals.com.au

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Targets generated

With the mineralogical studies done to date and the findings of the studies showing areas with significantly higher VHM%, as well as possibly higher value assemblage composition within the VHM portion of the HMC in these areas (more Rutile and Zircon), this data was used to generate targets where the high value and / grade VHM meets areas with higher THM grades (Figure 5). Two areas towards the north east of Corridor South, to the east of the Nhacutse and Poiombo deposits (Targets 1 and 2, Figure 5), as well as in the Zulene deposit area, appear to be the best targets for additional exploration drilling (Target 3, Figure 5).

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Figure 5: Maps of VHM % with the targets generated within Corridor South.

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 / info@mrgmetals.com.au

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Table 1 : Summary quantitative mineral composition of composite samples from 4 Nhacutse aircore drillholes.

Sample	AC572 Comp 1	AC572 Comp 2	AC586 Comp 3	AC586 Comp 4	AC587 Comp 5	AC587 Comp 6	AC585 Comp 7	AC585 Comp 8
Mineral or Phase	Mass %	Mass %	Mass %	Mass %	Mass %	Mass %	Mass %	Mass %
Zircon	1.57	1.76	2.59	3.02	1.74	1.94	3.32	3.66
Rutile	1.02	0.68	2.52	2.41	0.99	0.59	2.13	1.70
Leucoxene	0.82	0.81	1.57	1.56	0.84	0.86	1.94	2.05
Altered Ilmenite	2.10	1.91	12.19	11.03	2.19	2.57	24.46	10.95
Ilmenite	43.01	38.43	45.53	48.55	45.46	46.17	36.99	58.06
Total VHM	48.52	43.59	64.40	66.57	51.22	52.13	68.84	76.42
Low & Intermediate Ti Ilmenite/Titanomagne tite	34.35	39.70	3.78	4.58	30.55	30.04	0.07	0.27
Chromite	4.32	3.55	5.70	5.45	4.40	3.11	5.68	7.96
Others	12.81	13.16	26.12	23.40	13.83	14.72	25.41	15.35

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 employee 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: andrew@mrgmetals.com.au E: victoria@nwrcommunications.com.au

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 / info@mrgmetals.com.au

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 Sampling • Nature 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 300600g using a three tier riffle splitter for export to the Primary processing laboratory.

• Composite samples for QEMSCAN mineral assemblage analysis were created from heavy mineral concentrate (HMC) from each of the sample intervals in selected aircore holes.

• Each HMC was split with a Jones micro-riffle splitter and combined with other splits from a single hole and combined to create composite sample.

1

• Criteria JORC Code explanation Commentary • Composite samples were prepared and submitted to SJTMetMin.

• Drilling • Drill type (eg core, reverse circulation, open-hole hammer, rotary air • Reverse Circulation ‘Aircore’ drilling with inner tubes for sample return techniques blast, auger, Bangka, sonic, etc) and details (eg core diameter, triple was used. or standard tube, depth of diamond tails, face-sampling bit or other • Aircore drilling is considered a standard industry technique for heavy type, whether core is oriented and if so, by what method, etc). 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 recoveries • Drill sample recovery is monitored by measuring and recording the recovery 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 in

• • Whether a relationship exists between sample recovery and grade the initial 0.0m to 3.0m sample intervals owing to sample and air loss and whether sample bias may have occurred due to preferential 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.

• • For preparation of QEMSCAN composite samples each HMC for each sample interval was split with a Jones micro-riffle splitter and combined with other splits from a single hole and combined to create the composite sample.

• • Composite samples have weights of between15.85g and 40.96g.

• Logging • Whether core and chip samples have been geologically and • The 1.5m aircore drill intervals are logged onto paper field log sheets geotechnically logged to a level of detail to support appropriate at the drill site prior to transcribing into a Microsoft Excel spreadsheet

2

Criteria	JORC Code explanation	Commentary
	Mineral Resource estimation, mining studies and metallurgical	at the field office. Field paper logs are scanned and archived digitally
	studies.	on a cloud storage site with the broader geological database.
	• Whether logging is qualitative or quantitative in nature. Core (or	•The aircore samples were logged for lithology, colour, grainsize,
	costean, channel, etc) photography.	rounding, sorting, estimated %THM, estimated %slimes and any
	• The total length and percentage of the relevant intersections 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 closely
	sample preparation technique.	monitored by a geologist to ensure sampling quality is maintained.
	• Quality control procedures adopted for all sub-sampling stages to	•Almost all of the samples are sand, silty sand, sandy silt, clayey sand
	maximise representivity of samples.	or sandy clay and this sample preparation method is considered
	• Measures taken to ensure that the sampling is representative of the in	appropriate.
	situ material collected, including for instance results for field	•The sample sizes were deemed suitable to reliably capture THM,
	duplicate/second-half sampling.	slime, and oversize characteristics, based on industry experience of
	• Whether sample sizes are appropriate to the grain size of the material	the geologists involved and consultation with laboratory staff.
	being sampled.	•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	laboratory procedures used and whether the technique is considered	content within the sample which is sufficient for the purpose of
and	partial or total.	determining approximate concentrations of %THM.
laboratory	• For geophysical tools, spectrometers, handheld XRF instruments, etc,	•The field derived visual panned THM estimates are compared to a
tests	the parameters used in determining the analysis including instrument	range of laboratory derived THM images of pan concentrates. This
	make and model, reading times, calibrations factors applied and their	allows the field geologists to calibrate the field panned visual
	derivation, etc.	estimated THM with known laboratorymeasured THMgrades.

3

• Criteria JORC Code explanation Commentary • Nature of quality control procedures adopted (eg standards, blanks, • The laboratory analyses and procedures are consistent with and duplicates, external laboratory checks) and whether acceptable levels applicable to the heavy sand analysis. of accuracy (ie lack of bias) and precision have been established. • Each composite sample was split using a 2-way splitter at SJTMetMin Services to produce representative sub-samples for X-ray fluorescence (XRF) analyses, X-ray diffraction (XRD) analyses and polished sections preparation for microscopic examination.

• • Chemical assays were done by Scientific Services using X-Ray Fluorescence (XRF) spectroscopy conducted on a Rigaku Mini 200 XRF on fused beads. The beads were prepared by conducting a loss on ignition at 950degrees C and the beads were cast using a Claisse M4 Fluxer, utilizing the Claisse borate flux. A full calibration for the elements reported was conducted using international certified material.

• • The bulk mineralogical compositions were determined by X-ray diffraction (XRD) analyses using a Panalytical diffractometer and Coradiation. The phases were identified using Panalytical Highscore Plus software and phase quantification was performed using the Rietveld Refinement method.

• • Polished sections for light and electron microscopic examinations were prepared by SJTMetMin Services.

• • A Zeiss Stereo Discovery stereomicroscope was used for stereomicroscopic examination and a Zeiss Axio Imager A1m optical microscope was used for optical microscopy. Counting was done by traversing the polished sections at set distances in the x and y directions using a Swfit point counter and recording the particles at the intersection points. All the light microscopic studies were done by the author using instruments at the Laboratory for Microscopy and Microanalysis at the University of Pretoria.

• • SJTMetMin Services used scanning electron microscopy (SEM) coupled with energy dispersive spectroscopy (EDS) and a Mineral Liberation Analyser (MLA) to determine the bulk modal mineralogical (BMA) composition, mineralogical calculated chemical composition, particle characteristics and associated particle size distribution of each sample.

• • SJTMet Min uses QAQC standards based on their internal systems and processes and industry standards.

• • Particle type definition is shown in table below: Mineral Mineral Formula

4

Criteria JORC Code explanation	Commentary
	Fe-oxides	Fe2O3
	Fe(HiTi)-oxides	(FeTi)2O3/(Fe,Ti)3O4
		Total Fe(Ti)-oxides:
	Ilmenite(TiO₂52%)	FeTiO3
	Alt-Ilmenite I (TiO₂ 62%)	Fe₂Ti₃O₉
	Alt-Ilmenite II (TiO₂ 74%)	Fe₂-xTi₃+xO₉+y
		Total Ti(Fe)-oxides:
	Rutile	TiO2
	Sphene	CaTiSiO4
	Goethite	FeO(OH)
	Zircon	ZrSiO4
		Total Zircon:
	Quartz	SiO2
	Feldspar	NaAlSi3O8
	Mica*	KAl₂(Si₃Al)O₁₀(OH,F)₂
	Kaolinite/Clay	Al2Si2O5(OH)4
	Kaolinite(Fe)	(Al,Fe)2Si2O5(OH)5
	Pyroxene/Amphibole	NaCa2Mg3FeSi6Al3O22(OH)2
	Tourmaline	Al6B3Fe3H10NaO31Si6
	Andalusite	Al₂SiO₅
	Garnet(Ca,Fe)	Ca3(Al,Fe)2(SiO4)3
		Total Silicates:
	Chromite	FeCr2O4
	Corundum	Al₂O₃

5

Criteria JORC Code explanation	Commentary
	Mn-hydroxides	(Ba,Ce)1-y(MnO2)2-x(OH)2- 2y+2x•n(H2O)
	Other Oxides	MgAl2O4
		Total Oxides:
	Monazite	(Ce,La,Nd,Th)PO4
	Others	CaCO3;BaSO4;Ca5(PO4)3F
Verification of sampling and assaying • The verification of significant intersections by either independent or alternative company personnel. • 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.	•Selected visual estimated THM field data are checked by the Chief Geologist. •Significant visual estimated THM >5% are verified by the Chief Geologist. This is done either in the field or via field photographs of the pan sample. •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 two (2) holes were drilled and used to compare results from the analytical laboratory between different drilling programs. The comparison is good. •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 analyses of samples analysed by CSIRO is also being done by SJTMetMin. •The QEMSCAN data are checked by SJTMetMin laboratory for correctness before provision to the Company, and then checked by the Company consulting mineralogist.
Location of data points • Accuracy and quality of surveys used to locate drill holes (collar and down-hole surveys), trenches, mine workings and other locations used in Mineral Resource estimation. • Specification of the grid system used. • Quality and adequacy of topographic control.	•Downhole surveys for these aircore holes are not required due to the relatively shallow nature. •A handheld 16 channel Garmin GPS is used to record the positions of the aircore holes in the field. •The handheld Garmin GPS has an accuracy of +/- 5m in the horizontal. •The datum used for coordinates is WGS84 zone 36S. •The accuracy ofthe drillholelocationsis sufficientforthis early stage

Criteria JORC Code explanation	Commentary
	Mn-hydroxides	(Ba,Ce)1-y(MnO2)2-x(OH)2- 2y+2x•n(H2O)
	Other Oxides	MgAl2O4
		Total Oxides:
	Monazite	(Ce,La,Nd,Th)PO4
	Others	CaCO3;BaSO4;Ca5(PO4)3F
Verification of sampling and assaying • The verification of significant intersections by either independent or alternative company personnel. • 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.	•Selected visual estimated THM field data are checked by the Chief Geologist. •Significant visual estimated THM >5% are verified by the Chief Geologist. This is done either in the field or via field photographs of the pan sample. •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 two (2) holes were drilled and used to compare results from the analytical laboratory between different drilling programs. The comparison is good. •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 analyses of samples analysed by CSIRO is also being done by SJTMetMin. •The QEMSCAN data are checked by SJTMetMin laboratory for correctness before provision to the Company, and then checked by the Company consulting mineralogist.
Location of data points • Accuracy and quality of surveys used to locate drill holes (collar and down-hole surveys), trenches, mine workings and other locations used in Mineral Resource estimation. • Specification of the grid system used. • Quality and adequacy of topographic control.	•Downhole surveys for these aircore holes are not required due to the relatively shallow nature. •A handheld 16 channel Garmin GPS is used to record the positions of the aircore holes in the field. •The handheld Garmin GPS has an accuracy of +/- 5m in the horizontal. •The datum used for coordinates is WGS84 zone 36S. •The accuracy ofthe drillholelocationsis sufficientforthis early stage

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Criteria	JORC Code explanation	Commentary
		exploration.
Data spacing	• Data spacing for reporting of Exploration Results.	•Hole spacing on completion of this drill program will bring the spacing
and	• Whether the data spacing and distribution is sufficient to establish the	in the main target areas to 250m - 400m.
distribution	degree of geological and grade continuity appropriate for the Mineral	•The spacing between aircore holes and between lines combined with
	Resource and Ore Reserve estimation procedure(s) and	that of the previously drilled auger holes is sufficient to provide a good
	classifications applied.	degree of confidence in geological models and grade continuity
	• Whether sample compositing has been applied.	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.
		•Aircore holes were composited as a top 1-15m and a bottom 15-30m
		composite on each of the 4 drillholes.
Orientation of	• Whether the orientation of sampling achieves unbiased sampling of	•The aircore drilling was located at selected sites along the interpreted
data in	possible structures and the extent to which this is known, considering	strike of mineralization defined by reconnaissance auger drill data
relation to	the deposit type.	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.
		•Dhl was also used to transport the samples to SJTMetMin.
Audits or	• The results of any audits or reviews of sampling techniques and data.	•Internal data and procedure reviews are undertaken.
reviews		•No external audits or reviews have been undertaken.

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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 South tenement
tenement and	agreements or material issues with third parties such as joint	(6621L) which is 100% owned by the Company through its 100%
land tenure	ventures, partnerships, overriding royalties, native title interests,	ownership of its subsidiary, Sofala Mining & Exploration Limitada, in
status	historical sites, wilderness or national park and environmental	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 6621L was submitted in
	known impediments to obtaining a licence to operate in the area.	23 September 2019 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.

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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.

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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.

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