MRG METALS LIMITED — Capital/Financing Update 2021

May 16, 2021

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ASX ANNOUNCEMENT

17 May 2021

DRILLING CONFIRMS AND EXPANDS VERY HIGH GRADE ZONE AT POIOMBO

Key Highlights

• An aircore program of 6 infill holes at Poiombo has delivered very high visually estimated grades of >6% Total Heavy Mineral (THM).

• The very high grade zone shows a surface footprint approaching 1 sq km in size, with the spacing between drill holes now less than 300 metres and still open at depth.

• Mineralisation is from surface, with the very high grades remaining open at depth.

• Significant results include:

• 21CSAC715 0 – 36.0m 36.0m @ VIS EST 6.0% THM;

• • 21CSAC716 0 – 57.0m 57.0m @ VIS EST 6.3% THM;

• 21CSAC717 0 – 42.0m 42.0m @ VIS EST 6.6% THM including 22.5 – 34.5m 12.0m @ VIS EST 11.8% THM;

• • 21CSAC718 0 – 18.0m 18.0m @ VIS EST 6.3% THM; • 21CSAC719 0 – 30.0m 30.0m @ VIS EST 5.9% THM including 15.0 – 21.0m 6.0m @ VIS EST 9.0% THM; and

• • 21CSAC720 0 – 60.0m 60.0m @ VIS EST 6.8% THM including 34.5 – 60.0m 25.5m @ VIS EST 10.0% THM.

• Aircore hole 21CSAC717 contains multiple consecutive 1.5m sample intervals with visually estimated (VIS EST) grades +12% THM with highest 1.5m interval value of VIS EST 15% THM.

• Previously reported mineralogical data from Poiombo, with some samples from within this very high grade zone, shows combined ilmenite & leucoxene 46.50%, Rutile 0.75% and zircon 1.78% (refer ASX Announcement 31 July 2020).

• This program has consolidated and improved earlier high grade drilling results at Poiombo (refer ASX Announcements 19 June 2020, 9 October 2020 and 30 November 2020), making it worthy of a Mineral Resource Estimation (MRE) leading to further potential mine development initiatives.

• Aircore drilling operations have now moved back to Nhacutse to further test the extension boundaries of the Very High Grade zone there (refer ASX Announcement 6 April 2021).

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 (“the Company ” or “ MRQ ”) (ASX code: MRQ) is pleased to announce the completion of Infill aircore drilling at the Poiombo Target (Figure 2) located within the Company’s Corridor South (6621L) Project (Figure 1) and provide an update on results for visually estimated (VIS EST) drilling data. The infill drilling program of 6 aircore holes (21CSAC715 to ‘720) focussed on an area west of the town of Poiombo (Figures 3 & 4) previously identified in historic aircore and hand auger drilling (refer ASX Announcements 19 June 2020, 9 October 2020 and 30 November 2020) and returned excellent VIS EST Total Heavy Mineral (THM) results in all 6 holes (Table 1). A high grade mineralised area of approximately 0.84 sq km has now been confirmed, with aircore drilling within this zone at a 250m to 300m inter-hole spacing and still open at depth in most holes.

MRG Metals Chairman, Mr Andrew Van Der Zwan said: “The drilling at Poiombo provided further exceptional results with substantive zone(s) with grades higher than 6% from surface, open at depth. With the potential for enhanced assemblage results we may have another early mine life resource. Across our targets we appear to have identified 3 areas that satisfy our desire to identify the best 100+MT of early mine resource, supported by potential 100 year mine life capacity already identified at Koko Massava. We now await the lab results to validate the visuals and quantify the assemblage data within the high grade resource. It is highly likely that we will proceed to 3 MRE calculations in Q3.”

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.

Corridor South Project Aircore Drilling Update

Poiombo Western Mineralised Zone Infill Aircore Visual Results

The aircore program was designed to follow up the excellent reconnaissance aircore and hand auger drilling results within this mineralized area, where aircore holes 20CSAC355 and 20CSAC356 yielded assay results of 36m @ 7.09% THM and 51m @ 5.40% THM respectively, both mineralized from surface and still in high THM grades at the end of holes, 5.84% THM and 6.23% THM respectively (refer ASX Announcement 19 June 2020). Aircore hole 20CSAC556 in a follow-up drilling program intersected

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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30m @ 5.22% THM, again mineralized from surface and still in high assay THM grades at the end of hole, 7.74% THM in this case (refer ASX Announcement 30 November 2020).

In the program reported here, a total of 334m was drilled in the 6 holes (20CSAC715 to ‘720), with the collection of 233 samples at 1.5m intervals, including QA/QC samples. Hole depths ranged from 42m to 60m (Figures 3, 4 and 5; Table 1). Inter drillhole spacing is now at 250m to 300m.

All the holes returned excellent VIS EST THM results, with the most significant results from holes 20CSAC717 and 20CSAC720 yielding VIS EST results of 42.0m @ 6.6% THM and 60.0m @ 6.8% THM respectively, both mineralized from surface and both still in high VIS EST THM grades at the end of holes, 4.5% THM and 8.0% THM respectively (Figure 3, 4 and 5; Table 1). Some very high grade intersections within the broader mineralization within the holes is also present, with 20CSAC717 yielding VIS EST results from 22.5 to 34.5m of 12.0m @ VIS ESR 11.8% THM and 20CSAC720 yielding VIS EST results from 34.5 to 60.0m of 25.5m @ VIS ESR 10.0% THM (Table 1).

Previous mineral assemblage work shows combined ilmenite & leucoxene 46.50%, Rutile 0.75% and zircon 1.78% (refer ASX Announcement 31 July 2020). Additional mineralogical studies are currently taking place.

As drilling was deeper than previous drilling programs, the water table was intersected within most of the holes, with the water table generally at 37 to 43m depth. The majority of the mineralization is above the water table. MRG is planning to conduct sonic drilling to test the veracity of the mineralization below the water table.

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 Central (6620L) and Corridor South (6621L) Projects showing the locations of the various Prospects and the aircore drilling positions within the Poiombo project .

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 entire Poiombo Project within Corridor South (6621L), showing the VIS EST THM results for the drilled aircore holes, as well as previous aircore and hand auger holes drilled and their assay grades.

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: Map of the western area of the Poiombo Project where the drilling took place, showing the VIS EST THM results for the drilled aircore holes, as well as historic holes drilled with their assay grades.

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: Cross section through the Poiombo west mineralised zone (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 / info@mrgmetals.com.au

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Table 1 : Summary collar and visual estimated THM% results for aircore drill data for the Poiombo target completed during early May, 2021.

	DRILLHOLE INFORMATION	DRILLHOLE INFORMATION	DRILLHOLE INFORMATION	DRILLHOLE INFORMATION		MINERALISATION	MINERALISATION	MINERALISATION	MINERALISATION
HOLE ID	UTM EAST WGS84	UTM NORTH WGS84	ELEV'N (M)	EOH (M)	DRILL TYPE	FROM	TO	INTERSECTION (M)	% VIS EST THM
21CSAC715	7242808	573415	42	60.0	AIRCORE	0.0	60.0	60.0	5.1
						0.0	36.0	36.0	6.0
21CSAC716	7243204	573112	34	60.0	AIRCORE	0.0	57.0	57.0	6.3
21CSAC717	7243070	572615	21	42.0	AIRCORE	0.0	42.0	42.0	6.6
						22.5	34.5	12.0	11.8
21CSAC718	7243168	573462	56	60.0	AIRCORE	0.0	60.0	60.0	5.0
						0.0	18.0	18.0	6.3
21CSAC719	7243431	572566	32	52.0	AIRCORE	0.0	48.0	48.0	5.4
						0.0	30.0	30.0	5.9
						15.0	21.0	6.0	9.0
						0.0	60.0	60.0	6.8
21CSAC720	7242953	573621	53	60.0	AIRCORE	34.5	60.0	25.5	10.0

Note: VIS EST= visual estimated; All data averages are grade weighted. Dip for all holes all -90° and azimuth is 360°.

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.

Authorised 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 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.

3

Criteria	JORC Code explanation	Commentary
	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.
		•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.
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.	•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 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	withthat ofthe previously drilled auger holesis sufficient to provide

4

Criteria	**JORC Code explanation **	Commentary
	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.	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 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.

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.

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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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