MRG METALS LIMITED — Capital/Financing Update 2021

Jun 17, 2021

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ASX ANNOUNCEMENT

18 June 2021

MARAO AUGER DRILLING DELIVERS 3 KM[2] FOOTPRINT @ 4.5% VIS EST - (50% VHM POTENTIAL)

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Key Highlights

• Additional 60 reconnaissance grid auger holes drilled at Marao Project since March 2021 have delivered a second aircore target, Mandende – following ASX Announcement 18 March 2021 detailing discovery of Magonde Target.

• Mandende Target has a surface footprint of >9 km[2] of visually estimated (VIS EST) +3% Total Heavy Mineral (THM), from 19 auger holes to 13.5m.

• Mandende Target remains open to the north and at depth.

• Contained within the larger Mandende footprint is a 3 km[2] high grade zone of visually estimated 4.5 % THM bounded by 8 auger holes (Figure 4), as follows:

• 21MUHA074 0 – 13.5m 13.5m @ 5.9% THM;

• 21MUHA059 0 – 13.5m 13.5m @ 4.1% THM;

• 21MUHA060 0 – 13.5m 13.5m @ 4.0% THM;

• 21MUHA072 0 – 13.5m 13.5m @ 4.3% THM;

• 21MUHA075 0 – 13.5m 13.5m @ 4.8% THM;

• 21MUHA080 0 – 13.5m 13.5m @ 4.2% THM;

• • 21MUHA081 0 – 13.5m 13.5m @ 4.3% THM; and • 21MUHA082 0 – 13.5m 13.5m @ 4.5% THM.

• Initial mineral assemblage investigations at Marao were encouraging, demonstrating up to 50.05% Valuable Heavy Mineral (VHM) content (Ilmenite, Altered Ilmenite, Rutile and Zircon) results from Scanning Electron Microscopy (SEM) (refer ASX Announcement 27 April 2021)

• Further mineral assemblage samples will be taken from within the Madende target area.

• Ongoing grid auger program at Marao continues.

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 provide an update to the market on progress of its ongoing exploration program at the Company’s Marao (6842L) HMS licence (Figure 1). After the construction of the Guezane Camp, drilling of the initial 25 auger holes in the vicinity of the camp and the discovery of the Magonde target (refer ASX Announcement 18 March 2021, Figure 3), auger drilling continued on the 500m X 1000m spaced reconnaissance grid (Figure 2) from the western edge of the Marao licence.

An additional 60 auger holes were drilled since March (21MUHA026 to 21MUHA085, Table 1), with a significant second target, Mandende , identified (Figures 3 and 4).

The Mandende Target consists of 19 holes with VIS EST THM grades of >3% THM. Included in these 19 holes, 6 holes have VIS EST THM grades of 4 to 5% THM and 1 hole (21MUHA074) has VIS EST THM grade of 5.9% THM (Table 1). Individual 1.5m interval VIS EST THM grades as high as 7% THM was intersected (Table 1, Figure 5).

The Mandende Target remains open towards the North (Figure 4) and has an area currently of >9 km[2] . All the holes within the Mandende Target were mineralised from surface, with mineralisation remaining open at depth at end of drilling at 13.5m, with several holes demonstrating VIS EST THM grades of >5% (Figure 5).

Auger drilling continues on the reconnaissance grid. Initial mineralogical investigations from grab samples at two road quarry sites (Figure 3) within the Marao licence showed encouraging up to 50.05% VHM content (Ilmenite, Altered Ilmenite, Rutile and Zircon) results from Scanning Electron Microscopy (SEM, refer ASX Announcement 27 April 2021) A significant percentage of the HMC (up to 8.36%) is represented by Andalusite, the Zircon content of 3.12% is also relatively high compared to MRG’s Koko Massava deposit (refer ASX Announcement 22 April 2020). Mineralogical studies are ongoing from composite HMC samples from the auger drilling.

MRG Metals Chairman, Mr Andrew Van Der Zwan said: “Our work program at Marao continues to be hugely successful, with the identification of a new target, Mandende. Having only commenced drilling at Marao in February 2021, following the licence being granted in December 2020, the fact we have identified two significant targets in Mandende and Magonde, is a real credit to our team on site in terms of their targeting and efficiency in carrying out productive exploration programs.

“The higher grade zone of 3 km[2] VIS EST 4.5 % THM contained within the wider surface footprint of >9 km[2] VIS EST +3% Total Heavy Mineral (THM), is very exciting indeed. With Mandende appearing to be open both to the north and at depth, we look forward to exploring this target further to potentially extend the known footprint, in addition to carrying out our ongoing grid auger program at Marao to identify further prospective targets.”

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 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 www.mrgmetals.com.au / info@mrgmetals.com.au

12 Anderson Street West, Ballarat VIC 3350 / PO Box 237 Ballarat VIC 3353

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Figure 2: Planned 500m by 1000m reconnaissance Hand Auger drilling grid at Marao 6842L.

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Figure 3: Exploration hand auger drilling done to date, position of the Magonde and Mandende Targets and the Guezane Camp at Marao 6842.

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 4: The VIS EST +3% THM Mandende Target generated from hand auger drilling on the reconnaissance grid in the west of Marao 6842.

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 5: The panned HMC from hand auger holes within the Mandende Target in the west of Marao 6842.

Table 1: Summary collar and visual estimated (VIS EST) THM% results for hand auger drill data for the reconnaissance Marao license completed from the 13[th] of March 2021 to the 12[th] of June 2021.

HOLE ID	UTM NORTH WGS84	UTM EAST WGS84	ELEV'N (M)	EOH (M)	TARGET	DRILL TYPE	DOWNHOLE AVG % VIS EST THM FOR ENTIRE HOLE	INTERSECTION (M)	MIN % VIS EST THM	MAX % VIS EST THM
21MUHA026	7285282	588534	91	13.5	Marao	HAND AUGER	2.4	0-13.5	2.0	3.0
21MUHA027	7285630	588180	90	13.5	Marao	HAND AUGER	3.1	0-13.5	2.0	4.0
21MUHA028	7287050	588191	88	13.5	Marao	HAND AUGER	2.4	0-13.5	2.0	3.0
21MUHA029	7286693	588543	85	13.5	Marao	HAND AUGER	2.0	0-13.5	1.5	3.0
21MUHA030	7286332	588905	78	13.5	Marao	HAND AUGER	1.9	0-13.5	1.5	2.5
21MUHA031	7285983	589241	65	13.5	Marao	HAND AUGER	1.9	0-13.5	1.5	2.0
21MUHA032	7285624	589597	63	10.5	Marao	HAND AUGER	1.6	0-10.5	1.5	2.0
21MUHA033	7285269	589943	64	10.0	Marao	HAND AUGER	1.3	0-10.0	1.0	1.5

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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21MUHA034	7285976	590656	63	12.0	Marao	HAND AUGER	1.3	0-12.0	1.0	1.5
21MUHA035	7285263	591358	54	5.0	Marao	HAND AUGER	0.9	0-5.0	0.5	1.0
21MUHA036	7285611	591010	61	5.0	Marao	HAND AUGER	1.0	0-5.0	1.0	1.0
21MUHA037	7286325	590306	65	10.0	Marao	HAND AUGER	1.2	0-10.0	1.0	1.5
21MUHA038	7286684	589954	74	10.5	Marao	HAND AUGER	1.9	0-10.5	1.5	2.0
21MUHA039	7287037	589603	70	13.5	Marao	HAND AUGER	2.1	0-13.5	1.5	2.5
21MUHA040	7287397	589252	72	13.5	Marao	HAND AUGER	1.7	0-13.5	1.5	2.0
21MUHA041	7287753	588904	67	12.0	Marao	HAND AUGER	3.0	12.0	2.0	4.0
21MUHA042	7288107	588551	75	13.5	Marao	HAND AUGER	1.8	0-13.5	1.5	2.0
21MUHA043	7288458	588206	84	13.5	Marao	HAND AUGER	1.7	0-13.5	1.5	2.0
21MUHA044	7289873	588215	80	13.5	Marao	HAND AUGER	2.7	0-13.5	2.0	3.5
21MUHA045	7289522	588561	83	13.5	Marao	HAND AUGER	1.1	0-13.5	1.0	1.5
21MUHA046	7289167	588911	86	13.5	Marao	HAND AUGER	2.3	0-13.5	2.0	3.0
21MUHA047	7288810	589265	80	13.5	Marao	HAND AUGER	3.1	0-13.5	2.5	3.5
21MUHA048	7288451	589609	82	13.5	Marao	HAND AUGER	2.4	0-13.5	2.0	3.5
21MUHA049	7287388	590666	61	2.5	Marao	HAND AUGER	3.8	0-2.5	3.5	4.0
21MUHA050	7287031	591017	55	2.5	Marao	HAND AUGER	2.3	0-2.5	2.0	2.5
21MUHA051	7286671	591365	58	4.0	Marao	HAND AUGER	2.1	0-4.0	2.0	2.5
21MUHA052	7286318	591723	71	13.5	Marao	HAND AUGER	2.8	0-13.5	2.0	3.5
21MUHA053	7285957	592074	82	13.5	Marao	HAND AUGER	3.1	0-13.5	2.5	3.5
21MUHA054	7285605	592421	81	13.5	Marao	HAND AUGER	3.1	0-13.5	2.5	3.5
21MUHA055	7285248	592772	65	13.5	Marao	HAND AUGER	1.9	0-13.5	1.5	2.0
21MUHA056	7285596	593838	55	7.5	Marao	HAND AUGER	1.9	0-7.5	2.0	2.5
21MUHA057	7285949	593486	59	13.5	Marao	HAND AUGER	1.3	0-13.5	1.0	2.0
21MUHA058	7286309	593134	60	13.5	Marao	HAND AUGER	2.6	0-13.5	2.0	3.0
21MUHA059	7286663	592784	80	13.5	Marao	HAND AUGER	4.1	0-13.5	3.0	4.5
21MUHA060	7287017	592434	77	13.5	Marao	HAND AUGER	4.0	0-13.5	3.5	4.5
21MUHA061	7287377	592084	62	13.5	Marao	HAND AUGER	3.7	0-13.5	3.0	4.5

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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21MUHA062	7287729	591729	65	10.0	Marao	HAND AUGER	3.2	0-10.0	2.5	4.5
21MUHA063	7288087	591383	59	4.0	Marao	HAND AUGER	3.2	0-4.0	3.0	3.5
21MUHA064	7289865	589624	75	13.5	Marao	HAND AUGER	3.9	0-13.5	2.5	4.5
21MUHA065	7290224	589273	93	13.5	Marao	HAND AUGER	3.2	0-13.5	2.5	3.5
21MUHA066	7290577	588924	89	13.5	Marao	HAND AUGER	2.4	0-13.5	2.0	3.0
21MUHA067	7290937	588572	81	13.5	Marao	HAND AUGER	1.7	0-13.5	1.5	2.0
21MUHA068	7291292	588223	81	13.5	Marao	HAND AUGER	1.4	0-13.5	1.5	2.0
21MUHA069	7291638	589284	63	2.5	Marao	HAND AUGER	1.3	0-2.5	1.0	1.5
21MUHA070	7291278	589635	59	1.0	Marao	HAND AUGER	1.5	0-1.0	1.5	1.5
21MUHA071	7289500	591392	65	13.5	Marao	HAND AUGER	3.7	0-13.5	3.0	4.5
21MUHA072	7289144	591743	66	13.5	Marao	HAND AUGER	4.3	0-13.5	3.0	5.0
21MUHA073	7288790	592094	67	13.5	Marao	HAND AUGER	3.7	0-13.5	2.5	4.5
21MUHA074	7288436	592440	67	13.5	Marao	HAND AUGER	5.9	0-13.5	5.0	7.0
21MUHA075	7288078	592791	78	13.5	Marao	HAND AUGER	4.8	0-13.5	3.5	6.0
21MUHA076	7287722	593147	59	13.0	Marao	HAND AUGER	2.3	0-13.0	2.0	2.5
21MUHA077	7287366	593490	75	13.5	Marao	HAND AUGER	3.7	0-13.5	3.0	4.5
21MUHA078	7287009	593843	82	13.5	Marao	HAND AUGER	2.9	0-13.5	2.0	3.5
21MUHA079	7288423	593855	60	10.5	Marao	HAND AUGER	3.1	0-13.5	2.5	3.5
21MUHA080	7288776	593504	65	13.5	Marao	HAND AUGER	4.2	0-13.5	3.0	5.5
21MUHA081	7289137	593154	74	13.5	Marao	HAND AUGER	4.3	0-13.5	3.5	5.5
21MUHA082	7289490	592806	70	13.5	Marao	HAND AUGER	4.5	0-13.5	3.5	5.5
21MUHA083	7289827	592457	75	13.5	Marao	HAND AUGER	3.2	0-13.5	3.0	3.5
21MUHA084	7290200	592105	72	13.5	Marao	HAND AUGER	3.7	0-13.5	3.0	4.0
21MUHA085	7290558	591750	69	13.5	Marao	HAND AUGER	2.3	0-13.5	2.0	3.0

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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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.

-ENDS-

Authorised by the Board of MRG Metals Ltd.

For more Information please contact:

MRG Metals Andrew Van Der Zwan Chairman M: +61 (0) 400 982 987 E: andrew@mrgmetals.com.au

Investor Relations Victoria Humphries NWR Communications M: +61 (0) 431 151 676 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 **	Commentary
Sampling	• Nature and quality of sampling (eg cut channels, random chips, or	• Auger sampling:
techniques	specific specialised industry standard measurement tools appropriate	•A sample of sand, approximately 20g, was scooped from the sample
	to the minerals under investigation, such as down hole gamma	bag of each sample interval for wet panning and visual estimation.
	sondes, or handheld XRF instruments, etc). These examples should	•The same sample mass is used for every pan sample visual
	not be taken as limiting the broad meaning of sampling.	estimation.
	• Include reference to measures taken to ensure sample representivity	•The consistent sized pan sample is to ensure visual calibration is
	and the appropriate calibration of any measurement tools or systems	maintained for consistency in percentage visual estimation of total
	used.	heavy mineral (THM).
	• Aspects of the determination of mineralisation that are Material to the	•Geotagged photographs are taken of each panned sample with the
	Public Report.	corresponding sample bag to enable easy reference at a later date
	• In cases where ‘industry standard’ work has been done this would be	•The larger 1.5m interval auger drill samples were homogenized prior
	relatively simple (eg ‘reverse circulation drilling was used to obtain 1	to being grab sampled for panning.
	m samples from which 3 kg was pulverised to produce a 30 g charge	•Visual estimated THM% results are filtered to determine which holes
	for fire assay’). In other cases more explanation may be required,	are sent for laboratory analysis. Only holes with average uncut
	such as where there is coarse gold that has inherent sampling	downhole grade ≥3% visual estimated THM are sent for heavy liquid
	problems. Unusual commodities or mineralisation types (eg	separation laboratory analysis.
	submarine nodules) may warrant disclosure of detailed information.	•The large 1.5m drill samples have an average of about 4kg and were
		split down in Mozambique to approximately 300-600g by 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.
Drilling	• Drill type (eg core, reverse circulation, open-hole hammer, rotary air	• Hand Augerdrilling is a manual hand operated system produced by
techniques	blast, auger, Bangka, sonic, etc) and details (eg core diameter, triple	Dormer Engineering in Australia.
	or standard tube, depth of diamond tails, face-sampling bit or other	•Drill rods and drill bits are 1m long.
	type, whether core is oriented and if so, by what method, etc).	•The auger is a 62mm open hole drilling technique.
		•All holes have been drilled vertically.
		•The drilling onsiteis governed by aHandAuger Drilling Guideline to

1

Criteria	JORC Code explanation	Commentary
		ensure consistency in application of the method.
		•A wooden surface collar is placed on the ground at the beginning of
		each hole to prevent widening of the collar and material falling into
		the hole.
Drill sample	• Method of recording and assessing core and chip sample recoveries	• Augerdrilling is considered to be an early stage relatively
recovery	and results assessed.	unsophisticated technique of drilling.
	• Measures taken to maximise sample recovery and ensure	•The auger drill used is an open hole method and recovery of sample
	representative nature of the samples.	extracted from the holes is measured by spring balance at the drill
	• Whether a relationship exists between sample recovery and grade	site.
	and whether sample bias may have occurred due to preferential	•Samples are consistently collected at 1.5m intervals.
	loss/gain of fine/coarse material.	•No significant losses of auger sample were observed due to the
		shallow depths of drilling (<12m).
		•The initial 0–1.5m interval in each auger hole is drilled with care to
		maximize sample recovery.
		• There is potential for contamination in open hole drilling techniques
		but sample bias is not likely due to the shallow drill hole depths.
Logging	• Whether core and chip samples have been geologically and	•Foraugerthe 1.5m auger drill intervals were logged onto paper field
	geotechnically logged to a level of detail to support appropriate	log sheets prior to transcribing into a Microsoft Excel spreadsheet.
	Mineral Resource estimation, mining studies and metallurgical	•The auger samples were logged for lithology, colour, grainsize,
	studies.	rounding, sorting, estimated %THM, estimated %slimes and any
	• Whether logging is qualitative or quantitative in nature. Core (or	relevant comments, such as slope and vegetation.
	costean, channel, etc) photography.	•Geological logging is governed by a Hand Auger Drilling Guideline
	• The total length and percentage of the relevant intersections logged.	with predefined log codes and guidance of what to include in log
		fields to ensure consistency between individuals logging data.
		•Field photographs are taken of each panned sample alongside the
		sample bag with sample number to track numbers of samples per
		hole and cross reference with laboratory data.
		•Data is backed-up each day at the field base 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 dataquality.
Sub-sampling	• If core, whether cut or sawn and whether quarter, half or all core	•ForAugerthe 1.5m drill sample composites were homogenized at
techniques	taken.	the drill site and then cone-and-quarter split onsite and inserted into
and sample	• If non-core, whether riffled, tube sampled, rotary split, etc and	clean calico sample bags with metal sample tag according to the
preparation	whether sampled wet or dry.	Hand Auger Drilling Guideline.
	• For all sample types, the nature, quality and appropriateness of the	•At the field base, the samples were homogenized within the calico
	samplepreparation technique.	bagbyrotatingit and then fed through a single tier riffle splitter that is

2

Criteria	**JORC Code explanation **	Commentary
	• Quality control procedures adopted for all sub-sampling stages to	placed on a hard surface and levelled, to reduce samples to 300-
	maximise representivity of samples.	600g sub-samples for export to the Primary processing laboratory.
	• Measures taken to ensure that the sampling is representative of the in	•The 300-600g sub-sample is deposited into a new labelled calico
	situ material collected, including for instance results for field	sample bag with metal sample tag and prepared to be sent to the
	duplicate/second-half sampling.	Primary laboratory for analysis.
	• Whether sample sizes are appropriate to the grain size of the material	•Where samples were wet when sampled, they were dried in clean
	being sampled.	plastic basins prior to riffle splitting.
		•All of the samples collected have been sand or silty-sand and the
		preparation techniques are considered appropriate for this sample
		type.
		•The sample sizes were deemed suitable based on industry
		experience of the geologists involved and consultation with laboratory
		staff.
		•Field duplicates of the samples were completed at a rate of 5%, or at
		a frequency of approximately 1 per 25 primary samples.
		•Standard Reference Material (SRM) samples are inserted into the
		sample stream at a frequency of 1 per 50 samples.
		•Employees undertaking the primary sampling and splitting are closely
		monitored by a geologist to ensure sampling qualityismaintained.
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 laboratory measured THM grades.
	• Nature of quality control procedures adopted (eg standards, blanks,
	duplicates, external laboratory checks) and whether acceptable levels
	_of accuracy (ie lack of bias) and precision have been established. _
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.
		•No twinned holes have been completed during this programme to
		date but twin holes are planned.
		•The geologicfield dataismanually transcribedinto amaster

3

Criteria	**JORC Code explanation **	Commentary
		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.
Location of	• Accuracy and quality of surveys used to locate drill holes (collar and	•Downhole surveys for these auger holes are not required due to the
data points	down-hole surveys), trenches, mine workings and other locations	relatively shallow nature.
	used in Mineral Resource estimation.	•A handheld 16 channel Garmin GPS is used to record the positions of
	• Specification of the grid system used.	the aircore holes in the field.
	• Quality and adequacy of topographic control.	•The handheld Garmin GPS has an accuracy of +/- 5m in the
		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 used in this reconnaissance drill program is 500m by
and	• Whether the data spacing and distribution is sufficient to establish the	1000m spacing between auger drillholes hole stations. The holes
distribution	degree of geological and grade continuity appropriate for the Mineral	were located from a regular grid but are reconnaissance phase holes.
	Resource and Ore Reserve estimation procedure(s) and	•The spacing between auger holes and between lines is sufficient to
	classifications applied.	provide a reasonable degree of confidence in geological models and
	• Whether sample compositing has been applied.	grade continuity between holes for aeolian style HMS deposits during
		this reconnaissance drilling phase.
		•Closer spaced drilling in follow-up drilling phases (250m x 500m and
		250m x 1000m spaced holes) will provide a higher confidence in
		geological models and grade continuity between the holes.
		•Each auger 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 auger drilling was located on a grid drilling pattern covering the
data in	possible structures and the extent to which this is known, considering	entire licence along the interpreted strike of mineralization.
relation to	the deposit type.	•Drill holes were vertical and the nature of the mineralisation is
geological	• If the relationship between the drilling orientation and the orientation	relatively horizontal.
structure	of key mineralised structures is considered to have introduced a	•The orientation of the drilling is considered appropriate for testing the
	sampling bias, this should be assessed and reported if material.	lateral and vertical extent of mineralization without any bias.

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Criteria	**JORC Code explanation **	Commentary
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.
		•Auger samples remained in the custody of Company representatives
		while they were transported from the field drill site to Marao field
		camp / Chibuto field camp for splitting and other processing.
		•Auger 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 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 Marao tenement (6842L)
tenement and	agreements or material issues with third parties such as joint	which is 100% owned by the Company through its 100% ownership of
land tenure	ventures, partnerships, overriding royalties, native title interests,	its subsidiary, Sofala Mining & Exploration Limitada, in Mozambique.
status	historical sites, wilderness or national park and environmental	•All granted tenements have initial 5 year terms, renewable for 3
	settings.	years.
	• The security of the tenure held at the time of reporting along with any	•Traditional landowners and village Chiefs within the areas of influence
	known impediments to obtaining a licence to operate in the area.	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 is currently being prepared by an
		independent consultant and will be submitted to the Gaza Provincial
		Directorate of Lands, Environment and Rural Development in
		accordance with Mining Law and Regulations.
Exploration	• Acknowledgment and appraisal of exploration by other parties.	•Historic exploration work was completed by Rio Tinto.
done by other		•The Company has obtained digital data in relation to this historic
parties		information.
		•The historic data comprises very limited Auger 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 lower grade deposits related to windblown sands.
		•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.

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Criteria	JORC Code explanation	Commentary
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,	•A no cut-off	THM% grade is shown for the entire hole; a cut-off of
aggregation	maximum and/or minimum grade truncations (eg cutting of high	3%THM was used for the “high				grading” value shown (if applicable).
methods	grades) and cut-off grades are usually Material and should be stated.	•The visual estimated THM% averaging					is grade-weighted.
	• Where aggregate intercepts incorporate short lengths of high grade	•An example of data averaging is shown below.
	results and longer lengths of low grade results, the procedure used for such aggregation should be stated and some typical examples of		HOLE_ID	FROM	TO	PCT VIS THM	Average visTHM	Average visTHM
	such aggregations should be shown in detail.		19CCAC104	0.0	3.0	6.0
	• 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.	auger 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.	•Downhole widths are		reported.
intercept	• If it is not known and only the down hole lengths are reported, there
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 _

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Criteria	JORC Code explanation	Commentary
	_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, intersection thickness, together with maximum and
	Exploration Results.	minimum estimated THM 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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