MRG METALS LIMITED — Capital/Financing Update 2021

Jan 26, 2021

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ASX ANNOUNCEMENT

27 January 2021

NHACUTSE HIGH GRADE ZONE FURTHER DEFINED - ON TRACK TO DELIVER MRG’S STATED EXPLORATION GOAL

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Key Highlights

• Latest results from further Infill/Delineation Aircore Drilling puts Nhacutse on track to deliver MRG’s stated exploration goal of +100 MT of higher value per ton than the foundation Koko Massava Resource

• High grade drilling success was achieved from surface at 10 Infill aircore holes into the Nhacutse High Grade Zone - significant Total Heavy Mineral (THM) assay results included: (refer Table 1):

o 20CSAC611 0 - 42m 42m @ 5.40 % THM Including 0 - 36m 36m @ 5.99 % THM with highest individual 3m interval grade of 10.03% THM o 20CSAC609 0 - 42m 42m @ 5.08 % THM Including 0 - 39m 39m @ 5.39 % THM o 20CSAC594 0 - 30m 30m @ 5.58 % THM o 20CSAC595 0 - 30m 30m @ 5.82 % THM

• The surface footprint of Nhacutse High Grade Zone is 8 km[2] , to a depth consistently over 30 metres and up to 42 metres, remaining open at depth

• Confidence increased in the 3 internal very high grade zones - a combined surface footprint of over 2.5 km[2] , represents the potential to deliver over 100 Million Tonnes of heavy mineral sand (HMS) at over 6%THM .

MRG Metals Limited (“ MRG ” or “ the Company ”) (ASX Code: MRQ) is pleased to announce the assay results from its most recent aircore drilling at Nhacutse Prospect, located within the Company’s Corridor Portfolio in Mozambique. The program was carried out in late October /early November 2020 and consisted of 10 aircore drillholes for 342m, generating 114 samples for laboratory analysis.

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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The drilling focussed on infill and delineation of the Nhacutse High Grade mineralised footprint. (Figures 1,2, 3, 4 and 5).

The drilling program has further confirmed the very high grade Total Heavy Mineral (THM) values within the Nhacutse High Grade target, in addition to further defining the outline of this area (Table 1).

MRG Metals Chairman, Mr Andrew Van Der Zwan said: “The results received from our latest drilling at the Nhacutse Project has continued to deliver excellent findings with consistent assays, averaging over 5% THM from surface to depths up to 42m that still remain open. This firmly puts Nhacutse on track to deliver our stated exploration goal of over 100 million tonnes of higher value HMS.

With a surface footprint of the high grade zone at Nhacutse currently standing at 8km[2] , our confidence is continuing to grow in the three very high grade zones which could potentially deliver the 100 million tons at a grade of over 6% THM”

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Figure 1: Location map of MRG tenements, work detailed in this announcement took place within Corridor South (6621L) 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 2: Map of the Corridor Central (6620L) and Corridor South (6621L) Projects detailing the locations of the various Targets and the positions of the 10 aircore drillholes within the Nhacutse High Grade zone in the Corridor South Project (yellow dots).

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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Nhacutse High Grade Target Infill and Delineation Drilling

This 10 hole Infill/Delineation aircore drilling program at Nhacutse (refer ASX Announcements 22 October 2020, 7 January 2021) has returned more high grade THM results and continue to build the Company’s confidence in the Nhacutse High Grade HMS zone.

Of the 10 holes drilled (20CSAC593 to ‘598 and 20CSAC608 to ‘611) in this area, 7 of the 10 holes delivered average grades over the length of the holes of >4% THM, with the best results in 20CSAC611, 42m @ 5.40% THM, including 36m @ 5.99% THM from surface(Figures 3 and 4; Table 1), with a highest individual intersection grade of the drilling program of 10.03% THM over 3m from 3033m from the same drillhole (Figure 5); and 20CSAC595, with 30m @ 5.82% THM from surface.

7 out of the 10 of the holes were still in >3% THM grades at their final drill depths. On some of the holes, very high grades were still present in the final samples. In 20CSAC594 the grade was 9.23% THM from 27-30m; in 20CSAC595 the grade was 8.09% THM from 27-30m and in 20CSAC596 the grade was 7.23% THM from 27-30m, clearly indicating the high grade zone remains open at depth.

Importantly, the drilling has also allowed growing confidence in 3 very high grade zones that are situated within the high grade footprint (Figures 3). The 3 zones have a combined surface footprint of over 2.5 sq km, representing the potential to deliver in excess of 100 Million Tonnes of very high grade mineralised sand assaying over 6% THM.

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 Nhacutse High Grade zone showing the 10 aircore holes and THM results for aircore and auger drillholes, high grade zone, with 3 internal very high grade zones shown.

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

12 Anderson Street West, Ballarat VIC 3350 / PO Box 237 Ballarat VIC 3353 www.mrgmetals.com.au / info@mrgmetals.com.au

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Figure 4. Cross section showing aircore and hand auger holes drilled within the Nhacutse High Grade zone. Due to vertical exaggeration elevation is not presented.

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. Highest grade sample from the 210 aircore borehole program from 20CSAC611 in the Nhacutse High Grade zone, 30 to 33m, THM grade of 10.03% .

Visual estimated THM grades vs assay results

A comparison of the reported visible (VIS) % THM grades from the 10 aircore drillholes in this program (refer ASX Announcement 11 November 2020) to the actual assay results on averages per drillholes basis from this announcement shows a good correlation, with on average an underestimation on the VIS vs actual assay results of 0.51% THM.

On individual drillholes 6 of the 10 drillholes have VIS estimates within 0.5% THM of the actual assay results, 3 of the 10 drillholes have VIS estimates within 0.5-1.0% THM of the actual assay results; with only 1 hole at a difference +1% THM, in this case the VIS grades underestimated the actual grades by 1.22% THM.

The estimations on higher grades of +4.5% THM are less accurate, with the higher differences nearly all falling in the higher grade range, evidenced by the highest grade sample (Figure 3) with a VIS est of 6.0% THM vs the analytical result of 10.03% THM. The correlation in this batch of results is good and supports the use of VIS estimated THM grades for reporting and planning.

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 Assay THM% results for 10 Hole Infill/Delineation Drilling at Nhacutse.

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VIS DOWNHOLE HIGH
UTM UTM DOWNHOLE MIN % MAX %
ELEV'N EOH AVG % THM GRADED INTERSECTION
HOLE ID EAST NORTH TARGET DRILL TYPE AVG % THM ASSAY ASSAY
WGS84 WGS84 (M) (M) FOR ENTIRE FOR ENTIRE AVG % (M) THM THM
HOLE THM
HOLE
20CSAC593 570344 7247662 92 30 Nhacutse High Grade AIRCORE 3.0 3.19 0-30 2.04 3.98
20CSAC594 571242 7248418 79 30 Nhacutse High Grade AIRCORE 4.9 5.58 0-30 4.55 9.23
20CSAC595 572053 7248650 75 30 Nhacutse High Grade AIRCORE 4.6 5.82 0-30 5.09 8.09
20CSAC596 572804 7247837 83 30 Nhacutse High Grade AIRCORE 4.1 4.39 0-30 2.59 7.23
20CSAC597 573388 7247774 94 30 Nhacutse High Grade AIRCORE 2.9 3.86 0-30 2.72 5.34
20CSAC598 574507 7248792 73 30 Nhacutse High Grade AIRCORE 3.6 3.78 0-30 3.23 4.48
20CSAC608 572344 7248888 78 42 Nhacutse High Grade AIRCORE 4.5 4.89 0-42 2.53 6.26
4.3 5.08 0-42 1.03 6.89
20CSAC609 572037 7248318 74 42 Nhacutse High Grade AIRCORE
5.39 0-39
3.8 4.73 0-36 2.24 6.70
20CSAC610 571282 7248079 87 36 Nhacutse High Grade AIRCORE
4.96 0-33
4.8 5.40 0-42 1.61 10.03
20CSAC611 570834 7247963 81 42 Nhacutse High Grade AIRCORE
5.99 0-36
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Note: VIS EST= visual estimated; All data averages are grade weighted; uncut and from surface unless stated otherwise. All holes vertical.

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 was approved 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 **	Commentary
Sampling	• Nature and quality of sampling (eg cut channels, random chips, or	•Aircore drilling was used to obtain samples at 3.0m intervals.
techniques	specific specialised industry standard measurement tools appropriate	•The larger 3.0m interval aircore drill samples were homogenized by
	to the minerals under investigation, such as down hole gamma	rotating the sample bag prior to being grab sampled for panning.
	sondes, or handheld XRF instruments, etc). These examples should	•A sample of sand, approximately 20g, was scooped from the sample
	not be taken as limiting the broad meaning of sampling.	bag of each sample interval for wet panning and visual estimation.
	• Include reference to measures taken to ensure sample representivity	•The same sample mass is used for every pan sample visual
	and the appropriate calibration of any measurement tools or systems	estimation.
	used.	•The consistent sized pan sample is to ensure visual calibration is
	• Aspects of the determination of mineralisation that are Material to the	maintained for consistency in percentage visual estimation of total
	Public Report.	heavy mineral (THM).
	• In cases where ‘industry standard’ work has been done this would be	•Images of pan concentrate samples with associated laboratory THM
	relatively simple (eg ‘reverse circulation drilling was used to obtain 1	results are used in the field as comparisons to further refine visual
	m samples from which 3 kg was pulverised to produce a 30 g charge	estimation of THM.
	for fire assay’). In other cases more explanation may be required, such as where there is coarse gold that has inherent sampling	•Geologists enter the laboratory THM results for each sample on field log sheets against the visual estimation of THM to refine and further
	problems. Unusual commodities or mineralisation types (eg	calibrate field visual estimation of THM.
	submarine nodules) may warrant disclosure of detailed information.	•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 3.0m drill samples have an average of about 18kg, range 8-
		40kg, and are being split down in Mozambique to approximately 300-
		600g using a three tier riffle splitter for export to the Primary
		processing laboratory.
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 circulationdrillingwhere the sampleis collected at theface

1

Criteria	JORC Code explanation	Commentary
		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 3.0m 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 interval 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 interval is drilled very slowly in order
		to achieve optimum sample recovery.
		•The entire 3.0m 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 3.0m 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
	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 consistencybetween individuals loggingdata.

2

Criteria	JORC Code explanation	Commentary
		•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 3.0m 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 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.

3

Criteria	**JORC Code explanation **	Commentary
		•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.
		•An inter-laboratory check for this batch of samples was conducted via
		c the analyses of 4 drillholes (40 samples) by the laboratory Scientific
		Services in South Africa. Avery good correlation on the THM, silt and
		oversize results was found.
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 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 variable at
and	• Whether the data spacing and distribution is sufficient to establish the	between 500m and 1000m spacing between aircore drillholes hole
distribution	degree of geological and grade continuity appropriate for the Mineral	stations. The holes were located from a regular grid but are
	Resource and Ore Reserve estimation procedure(s) and	reconnaissance phase holes and were selected based on previous
	classifications applied.	auger hole locations.
	• Whether sample compositing has been applied.	•The spacing between aircore holes and between lines combined with
		that of the previously drilled auger holes is sufficient to provide a
		reasonable degree of confidence in geological models and grade
		continuity between holes for aeolian style HMS deposits.
		•Closer spaced drilling in a follow-up phase (250m x 500m and 250m x
		1000m spaced holes) will provide a higher confidence in geological
		models and grade continuity between the holes.
		•Each aircore drill sample is a single 3.0m 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 interpreted
data in	possible structures and the extent to which this is known, considering	strike of mineralizationdefined byreconnaissance augerand aircore

4

Criteria	JORC Code explanation	Commentary
relation to	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 data.	•Internal data and procedure reviews are undertaken.
reviews		•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 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.

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,	•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.
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 3.0 19CCAC104 6.0 19CCAC104 9.0 19CCAC104 12.0 19CCAC104 15.0 19CCAC104 18.0 19CCAC104 21.0 19CCAC104 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

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Criteria	JORC Code explanation	Commentary
intercept	angle is known, its nature should be reported.	•Downhole widths are reported.
lengths	• If it is not known and only the down hole lengths are reported, there
	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 and assay estimated THM% data is
reporting	practicable, representative reporting of both low and high grades	presented in Table 1 of the main part of the announcement,
	and/or widths should be practiced to avoid misleading reporting of	comprising downhole averages, intersection thickness, together with
	Exploration Results.	maximum and 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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