NEOMETALS LTD — Capital/Financing Update 2020

Mar 25, 2020

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26 March 2020
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MT EDWARDS NICKEL – DRILL RESULTS FROM CASSINI-WANNAWAY TREND

HIGHLIGHTS

• Assay results from air core drilling across prospects south of the Widgiemooltha Dome included 7 metres @ 0.63% nickel including 1 metre @ 1.09%

• Mineralised intercept less than 250 meters along strike from Mincor Resources’ Cassini North prospect

• Numerous anomalous nickel results within an ultramafic komatiite host rock at Double Eagle prospect, including 13 metres @ 0.46% nickel and 20 metres @ 0.36% nickel

• Exploration to continue at Double Eagle prospect located south of Mincor Resources’ historic Wannaway mine

Project developer Neometals Ltd ( ASX: NMT ) ( “Neometals” or “the Company” ) is pleased to announce assay results from a recent air core ( “AC” ) drilling program at its Mt Edwards Project. Drilling and sampling programs were carried out during November and December 2019 across five mining tenements located south of the Widgiemooltha Dome. The drill program comprised 93 drill holes for 3,262 metres (refer to Table 1) and was designed to test numerous nickel targets to confirm bedrock geology and identify the basal contact of the komatiite flows with the underlying basalt.

Table 1 - The number of holes and meterage for each prospect and mining tenement

Prospect	Mining Tenement(s)	AC holes	Meterage
E15/1553	E15/1553	13	705
Double Eagle,Baldrick	M15/45,M15/46,M15/77	61	1,728
Percy	M15/79	19	829

In the past 12 months Neometals has undertaken a targeted exploration campaign at Mt Edwards, methodically validating and improving the drill-hole database, and in turn re-interpreting the geology and the Mineral Resources. Exploration success is seeing the definition of high-grade nickel sulphide amongst the existing Mineral Resources. This drilling follows an encouraging eight-hole reverse circulation program at the recently acquired Exploration Licence E15/1553 in November 2019 (for full details refer to ASX announcement entitled “High-grade massive nickel sulphide at Mt Edwards” released on 31 January 2020) .

The first of two specific areas drilled was at exploration licence ‘E15/1553’, located directly along strike from the Mincor Resources NL’s ( “Mincor” ) Cassini North prospect, where 13 AC holes targeted stratigraphic locations and some historical geophysics conductors. Results included 1 metre @ 1.09% nickel from 49 metres downhole in ultramafic rock near the southern boundary of the tenement.

The second area covered four mining leases on which the Double Eagle, Baldrick and Percy prospects are located. Highly anomalous nickel grades (>0.3% Ni) at the Percy and Double Eagle prospects have been identified in numerous komatiite flows. Both Percy and Double Eagle prospects occur ~10 kilometres south and along strike from Mincor’s historic Wannaway Nickel Mine, which has similar interpreted geology.

The results support the likelihood of significant nickel sulphide mineralisation in the area. The grade encountered along strike from Mincor’s Cassini North endorses the results from the RC program announced in January 2020. The proximity of third party nickel sulphide drilling success is also encouraging with ‘E15/1553’ being situated approximately 250 meters directly along strike from Mincor’s Cassini North prospect, and near Mincor’s Cassini Mineral Resource (1.254Mt @ 4.0% nickel).

Neometals considers that the results warrant follow-up drilling and EM geophysical surveys to further investigate these targets. Additional exploration is planned at the earliest opportunity subject to the constraints on movements of equipment and people imposed by Government’s coronavirus pandemic response.

Locked Bag 8 West Perth WA 6872

ACN 099 116 361 Level 1, 1292 Hay Street West Perth WA 6005

T: +61 8 9322 1182 F: +61 8 9321 0556

info@neometals.com.au

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26 March 2020 – MT EDWARDS NICKEL DRILL RESULTS FROM AIR CORE PROGRAM
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Background

The Mt Edwards Nickel Project is centred around the small township of Widgiemooltha, located 90 kilometres south of Kalgoorlie in Western Australia. The project consists of 45 granted and pending mining tenements located over 50 kilometres of strike length across and north of the Widgiemooltha Dome (refer to Figure 1). The Widgiemooltha Dome is a world class nickel sulphide camp with several historical nickel mines.

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Figure 1 – Mining tenements of the Mt Edwards Project with the location of Percy, Baldrick and Double Eagle highlighted in tenements M15/45, M15/46, M15/77, and M15/79 (red diagonal stripes). Also highlighted is the recently acquired tenement E15/1553 (blue diagonal stripes) north of Mincor’s Cassini Mineral Resource (for full details refer to ASX announcement entitled “Additional Nickel Mineral Resource at Mt Edwards” released on 13 November 2019)

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In November and December 2019 an AC drill program was conducted across the Double Eagle, Baldrick and Percy nickel prospects in the southwestern corner of the project, and at a prospective area on the recently acquired Exploration Licence E15/1553. Exploration took place on five mining tenements, M15/45, M15/46, M15/77, M15/79 and E15/1553 located ~20km south of the community of Widgiemooltha.

Significant Assay Results and Geological Interpretation – E15/1553

Results of the AC program included a significant intercept of 1 metre interval at 1.09% Nickel, from 49 metres downhole in hole MEAC108, as shown in Table 2 below.

Table 2 - Significant intercepts encountered during the air core drilling program

Hole ID	Interval (metres)	Ni %	Cu (ppm)	Co (ppm)	Depth From (metres)	Depth To (metres)	Tenement	Total depth (metres)
MEAC108	1	1.09	276	278	49	50	E15/1553	66

Note: Significant intercepts are contiguous samples with assay results greater than 0.3% nickel, with an average grade greater than 1% nickel.

Drilling at E15/1553 focused on identifying the ultramafic – mafic boundary north of, and along strike from, Mincor’s Cassini North prospect. Two previous RC drill holes completed in the area in November 2019 had shown encouraging mineralisation, and a flat lying ultramafic – mafic contact.

AC drill hole MEAC108 intercepted significant nickel mineralisation with 7 metres @ 0.63% nickel from 47 metres downhole depth within an ultramafic rock. This included 1 metre @ 1.09% nickel located at 49 metres downhole depth. There was also a mineralised interval at the end of drill hole MEAC109 at 92 meters downhole depth. This further supports prior evidence of nickel sulphide mineralisation in the area and strengthens the interpretation of a flat lying contact as previously identified by RC holes MERC100 and MERC101 (Figures 2 and 3).

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Figure 2 – Cross-section looking north-west showing air core holes MEAC107-109 and MEAC025-026 with MERC100-101 from a previous RC drilling program. Anomalous nickel (>0.3% Ni) and significant intercepts are highlighted on the drill strings including 7 metres @ 0.63% nickel in MEAC108 and 1 metre @ 0.3% nickel in MEAC109

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Figure 3 - Plan view of the interpreted geology at the southern end of the acquired Exploration Licence E15/1553 along strike from the Mincor owned Cassini North prospect and Cassini Mineral Resource. Recent AC and RC drill collars and traces completed by Neometals on E15/1553 are shown in black, with an interpretation of Mincor’s Cassini drilling shown in grey. The latest drilling results for Cassini North from Mincor (refer to Mincor ASX announcement entitled “Exploration Update” released on 18 March 2020) include results of drill hole MDD342 which is less than 250 metres along strike from the Neometals Exploration Licence boundary. The geology interpretation shown here is from Kambalda Nickel Operations from the 1980’s. Due to the alluvial cover geology is projected from depth (~80 metres) and not indicative of surface material. Neometals’ future drilling and geophysics will validate the interpretation and re-define the ultramafic-basalt contacts on E15/1553.

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Assay Results and Geological Interpretation – Percy and Double Eagle

The drilling at the Double Eagle, Baldrick and Percy nickel prospects was designed to target conductive units situated in interpreted ultramafic lithologies, supported by litho-geochemical signatures from recent and historic soil sampling, and historic drill hole assays. The mineralised intercepts at Double Eagle and Percy occur in komatiite flows that trend south along strike from Mincor’s historic Wannaway Nickel Mine, which produced 30,683 nickel tonnes from 1984 until 2008.

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Figure 4 - Image showing the collar locations of the recent AC drill holes coloured by maximum nickel grade on Mt Edwards’ southern package of tenements. Interpreted location of prospective ultramafic rock are shown in purple, along with nickel prospects Percy, Baldrick and Double Eagle and Mincor’s Cassini and Wannaway Mineral Resources. Striped aqua polygons show areas of planned Moving Loop Electromagnetic surveys

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Drill holes MEAC041-044 and MEAC046 at Double Eagle express highly anomalous amounts of nickel (>0.3%) in a thick sequence of ultramafic rock with interpreted disseminated-style nickel sulphides.

Drill holes MEAC070-071 at Double Eagle show nickel anomalism near the ultramafic-mafic contact within the ultramafic unit. This matches up with anomalism shown in historic drill holes ~175 metres to the north and ~260 metres to the south, along the ultramafic-mafic contact.

Across all the areas drilled the interpretation of the ultramafic – mafic boundaries have now been improved using the data collected which will aid future exploration.

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Figure 5 - Plan of the interpreted geology at the Double Eagle prospect with recent AC drill collars and traces. There is some anomalism on the boundaries of three Mining Leases M15/45, 47 & M15/77. Drill holes MEAC041-044 and MEAC046, and MEAC070-071 at Double Eagle express anomalous amounts of nickel (>0.3%). There is also low-level anomalism in historic holes MER100 to MER102 along strike to the north

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Table 3 - Mineralised intercepts encountered during the November-December 2019 AC drill program at Mt Edwards

Hole ID	Prospect	From (metres)	To (metres)	Interval (metres)	Ni %	Cu **ppm **	As **ppm **	Cr **ppm **	Fe2O3 %	MgO %	S %
MEAC041	Double Eagle	16	19	3	0.38	81	BDL	2944	17.54	12.03	0.03
MEAC042		29	39	10	0.31	167	BDL	5350	22.63	5.26	0.08
MEAC043		40	42	2	0.40	189	BDL	3974	23.38	15.79	0.07
MEAC044		16	17	1	0.31	252	BDL	4181	23.09	6.94	0.04
MEAC044		20	23	3	0.34	115	BDL	5000	19.69	14.91	0.04
MEAC046		5	7	2	0.49	14	BDL	1024	11.56	11.24	0.03
MEAC046		16	24	8	0.36	46	10	2991	16.12	11.84	0.04
MEAC046		26	27	1	0.31	21	BDL	1970	12.57	15.42	0.05
MEAC063		49	53	4	0.52	124	BDL	4617	18.27	10.60	0.72
MEAC070		6	19	13	0.46	83	BDL	3572	17.95	11.96	0.03
MEAC070		21	23	2	0.31	51	31	3098	16.15	14.00	0.03
MEAC071		4	24	20	0.36	62	BDL	3754	15.54	14.53	0.03
MEAC095	Percy	24	28	4	0.33	44	BDL	2743	13.99	20.34	0.02
MEAC099		17	28	11	0.39	65	44	3117	15.12	16.85	0.01
MEAC099		31	32	1	0.32	94	100	2178	11.51	22.84	0.02
MEAC101		20	25	5	0.33	103	BDL	4557	22.97	7.60	0.05
MEAC101		27	30	3	0.32	66	BDL	3478	15.27	21.63	0.02
MEAC108	E15/1553	47	54	7	0.63	303	84	2704	13.44	15.27	0.54
incl.		49	50	1	1.09	276	108	4156	10.51	10.36	0.94
MEAC109		92	93	1	0.30	39	101	1777	9.40	29.27	0.87

Note: Mineralised intercepts are contiguous samples with assay results greater than 0.3% nickel, with an average grade greater than 0.3% nickel. Several 1 metre internal dilution (less than 0.3% nickel) may be included in the intercept. BDL: Below detection limit (<10 ppm for As)

Table 4 - Collar and survey information for the key drill holes in the November-December 2019 AC drill program

Hole ID	Depth	Easting	Northing	Dip	Azimuth	Collar RL	Tenement	Prospect
MEAC041	31	364432	6495582	-59	67	301	M15/77	Double Eagle
MEAC042	52	364351	6495541	-59	65	301	M15/77	Double Eagle
MEAC043	47	364200	6495459	-59	64	307	M15/46	Double Eagle
MEAC044	36	364115	6495406	-59	63	305	M15/46	Double Eagle
MEAC046	27	363943	6495306	-60	60	310	M15/46	Double Eagle
MEAC063	59	363057	6495804	-60	65	321	M15/46	Double Eagle
MEAC070	27	362610	6495591	-60	65	318	M15/46	Double Eagle
MEAC071	42	362538	6495559	-59	67	317	M15/46	Double Eagle
MEAC095	32	367095	6489033	-60	245	310	M15/79	Percy
MEAC099	49	367110	6488429	-59	246	319	M15/79	Percy
MEAC101	60	367264	6488482	-59	246	318	M15/79	Percy
MEAC108	66	368974	6492621	-60	47	297	E15/1553	E15/1553
MEAC109	94	369072	6492732	-60	36	294	E15/1553	E15/1553

Note: MGA94 51S coordinate system. Collar location, dip and azimuth measurements at surface were recorded by the rig geologist using handheld GPS and a sighter compass. Some downhole surveys were recorded by a Reflex gyro

Future Exploration and Mineral Resource expansion work at Mt Edwards Nickel Project

A multi-phase follow-up exploration program is planned to specifically target the expected mineralised extension along strike from Mincor’s Cassini North prospect. This will involve drilling programs using AC, RC and potentially diamond core methods. Moving Loop Electromagnetic ( “MLEM” ) and Down Hole Electromagnetic ( “DHEM” ) surveying will also be undertaken.

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MLEM programs will be completed on selected areas over the Percy, Baldrick and Double Eagle prospects in the southern Widgiemooltha dome. MLEM surveys are also planned over the Lake Eaton prospect. These surveys will help refine the locations of EM conductors that are known to host nickel sulphide deposits. Further drilling of these refined targets are expected to follow the survey results. Due to the success of previous Neometals DHEM surveys, another DHEM program will be performed using historic holes at the Zabel deposit at the northern area of the Mt Edwards project to identify further targets at that location.

A Mineral Resource expansion drilling program is planned for the Gillett deposit at the Widgie South Trend following on from positive results during September 2019 ( for full details refer to ASX announcement entitled “Mt Edwards Nickel - Drill Results From Widgie South Trend” released on 11 December 2019 ) extending the known strike length at Gillett by at least 220 metres. An updated Mineral Resource estimate is planned for Gillett, 132N and Armstrong deposits in coming months to complement ongoing mining studies. Mine planning and process engineering models apply a consensus view of predicted nickel market pricing to meet the expected Electric Vehicle demand.

Note: Future exploration is being planned per the above however specifics on timing will be subject to the constraints on movements of equipment and people imposed by the coronavirus pandemic.

Competent Person Attribution

The information in this report that relates to Exploration Results is based on information compiled by Gregory Hudson, who is a member of the Australian Institute of Geoscientists. Gregory Hudson is a full time employee of Neometals Ltd and has sufficient experience relevant to the styles of mineralisation and type of deposit under consideration and the activity being undertaken, to qualify as a Competent Person as defined in the December 2012 Edition of the “Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves”. Gregory Hudson has consented to the inclusion of the matters in this report based on his information in the form and context in which it appears.

Compliance Statement

The information relating to previous RC drilling in this announcement is extracted from the ASX Announcements listed below, which are also available on the Company’s website at www.neometals.com.au:

31/01/2020	High-grade massive nickel sulphide at Mt Edwards
11/12/2019	Mt Edwards Nickel – Drill Results From Widgie South Trend
13/11/2019	Additional Nickel Mineral Resource At Mt Edwards

The Company confirms that it is not aware of any new information and data that materially affects the information included in the original market announcements and, in the case of the estimates of Mineral Resources, that all material assumptions and technical parameters underpinning the estimates in the relevant market announcement continue to apply and have not materially changed. The company confirms that the form and context in which the Competent Person’s findings are presented have not been materially modified from the original market announcements.

ENDS

Authorised on behalf of Neometals by Christopher Reed, Managing Director

For further information, please contact:

Chris Reed Managing Director Neometals Ltd T: +61 8 9322 1182 E: info@neometals.com.au

Jeremy Mcmanus General Manager - Commercial and IR Neometals Ltd T: +61 8 9322 1182 E: jmcmanus@neometals.com.au

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About Neometals Ltd

Neometals innovatively develops opportunities in minerals and advanced materials essential for a sustainable future. With a focus on the energy storage megatrend, the strategy focuses on de-risking and developing long life projects with strong partners and integrating down the value chain to increase margins and return value to shareholders.

Neometals has three core projects:

• Lithium-ion Battery Recycling – a proprietary process for recovering cobalt and other valuable materials from spent and scrap lithium batteries. Pilot plant testing currently underway with plans established to conduct demonstration scale trials with potential JV partner SMS Group;

• Barrambie Titanium and Vanadium Project - one of the world's highest-grade hard-rock titanium-vanadium deposits, working towards a development decision in mid-2021 with potential JV partner IMUMR; and

• Lithium Refinery Project – progressing plans for a lithium refinery development to supply lithium hydroxide to the battery cathode industry with potential JV partner Manikaran Power, underpinned by a binding life-of-mine annual offtake option for 57,000 tonnes per annum of Mt Marion 6% spodumene concentrate.

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 techniques	• Nature and quality of sampling (eg cut channels, random chips, or 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.	All new data collected from the Mt Edwards nickel exploration project discussed in this report is in relation to an air core drilling and sampling program completed during November and December 2019, unless stated otherwise. Samples were acquired at one metre intervals from a chute beneath a cyclone on the drill rig. Sample size was then reduced through either a cone or riffle sample splitter. A sample was captured in pre‐numbered calico bags, with typical masses ranging between 1 and 3kg. The remainder of the sample (the reject) was placed in sample (spoil) piles onto the cleared ground near the edge of the drill pad. Samples assessed as prospective for nickel mineralisation were assayed at single metre sample intervals. Zones where the geology is considered less prospective were assayed at nominal 4 metre length composite samples using a scoop to collect from the sample piles.
Drilling techniques	• Drill type (eg core, reverse circulation, open-hole hammer, rotary air blast, auger, Bangka, sonic, etc) and details (eg core diameter, triple or standard tube, depth of diamond tails, face-sampling bit or other type, whether core is oriented and if so, by what method, etc).	The drill rig is a custom built RAB / AC Model KD150. Drill rods are 3 metres long with a hole diameter of 85mm using a blade drill bit, or a hammer in harder rock, to retrieve the sample. Holes were drilled at a nominal dip of ‐60o, excluding two vertical holes, with varying azimuth angles in order to orthogonally intercept the favourable geological contact zones.
Drill sample recovery	• Method of recording and assessing core and chip sample recoveries and results assessed. • Measures taken to maximise sample recovery and ensure representative nature of the samples. • Whether a relationship exists between sample recovery and grade and whether sample bias may have occurred due to preferential loss/gain of fine/coarse material.	The geologist recorded when sample recovery was poor and when the samples were wet. Samples with excess water were sampled directly from spoil piles, and not put through a splitter into calico bags. Minor sample loss was recognised while sampling the first metre of some drill holes due to the very fine grain size of the surface and near‐surface material. No relationship between sample recovery and grade has been recognised.

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Criteria	JORC Code explanation	Commentary
Logging	• Whether core and chip samples have been geologically and geotechnically logged to a level of detail to support appropriate Mineral Resource estimation, mining studies and metallurgical studies. • Whether logging is qualitative or quantitative in nature. Core (or costean, channel, etc) photography. • The total length and percentage of the relevant intersections logged.	All drill holes have been geologically logged for lithology and mineralisation. All samples were logged in the field at the time of drilling and sampling (both quantitatively and qualitatively where viable), with spoil material and sieved rock chips assessed. All 3,262 metres from the drill program were chipped and logged on site. It is not planned for the air core results to be used to support Mineral Resource estimations.
Sub- sampling techniques and sample preparation	• If core, whether cut or sawn and whether quarter, half or all core taken. • If non-core, whether riffled, tube sampled, rotary split, etc and whether sampled wet or dry. • For all sample types, the nature, quality and appropriateness of the sample preparation technique. • Quality control procedures adopted for all sub- sampling stages to maximise representivity of samples. • Measures taken to ensure that the sampling is representative of the in-situ material collected, including for instance results for field duplicate/second-half sampling. • Whether sample sizes are appropriate to the grain size of the material being sampled.	Samples sent to the lab are either: 1 metre original samples, which are truly the 1 to 3kg sub‐ samples of the sample material extracted and captured from each metre through the drilling process. Composite samples, usually scoops of material from spoil piles for 4 metres or less, were also collected into calico bags totally 1 to 3kg. These samples (1 metre and composite) were received by the lab, sorted and recorded. Individual samples were weighed as received and then dried in a gas oven for up to 12 hours at 105C. Any samples >3 kg’s were riffle split 50:50 and excess discarded. All samples were then pulverised in a LM5 pulveriser for 5 minutes to achieve 85% passing 75um. 1:50 grind checks were performed to verify passing was achieved. A 300g split was taken at the bowl upon completion of the grind and sent to the next facility for assay. The remainder of the sample (now pulverised) was bagged and retained until further notice. For each submitted sample, the remaining sample (material) less the aliquot used for analysis has been retained, with the majority retained and returned to the original calico bag and a nominal 300g portion split into a pulp packet for future reference. Individual samples have been assayed for a suite of 33 elements including nickel related analytes as per the laboratory’s procedure for a 4‐acid digestion followed by Optical Emission Spectral analysis. Internal sample quality control analysis was then conducted on each sample and on the batch by the laboratory. Results have been reported to Neometals in csv, pdf and azeva formats.
Quality of assay data and laboratory tests	• The nature, quality and appropriateness of the assaying and 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, duplicates, external laboratory checks) and whether acceptable levels of accuracy (ie lack of bias) andprecision have been established.	Duplicates were collected in the field as per a QAQC procedure. The laboratory also conducted internal QAQC, including standards, duplicates and repeats. .
Verification of sampling and assaying	• The verification of significant intersections by either independent or alternative company personnel. • The use of twinned holes.	Assay results are provided by the laboratory to Neometals in csv, pdf and azeva formats, and then validated and entered into the database managed by an external contractor.

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Criteria	JORC Code explanation	Commentary
	• Documentation of primary data, data entry procedures, data verification, data storage (physical and electronic) protocols. • Discuss any adjustment to assay data.	Backups of the database are stored both in and out of office. Assay, Sample ID and logging data are matched and validated using filters in the drill database. The data is further visually validated by Neometals geologists and database staff.
Location of data points Location of data points cont.	• Accuracy and quality of surveys used to locate drill holes (collar and down-hole surveys), trenches, mine workings and other locations used in Mineral Resource estimation. • Specification of the grid system used. • Quality and adequacy of topographic control.	A handheld GPS (Garmin GPSmap76 model) was used to determine the drill hole collar locations during the drill program with a ±8 metres coordinate accuracy. MGA94 51S is the grid system used in this program. Downhole survey using Reflex gyro survey equipment was conducted for select holes deeper than 30m during the program at the request of the Company. The survey was carried out by the drill contractor.
Data spacing and distribution	• Data spacing for reporting of Exploration Results. • Whether the data spacing and distribution is sufficient to establish the degree of geological and grade continuity appropriate for the Mineral Resource and Ore Reserve estimation procedure(s) and classifications applied. • Whether sample compositing has been applied.	All drill holes were sampled at 1 metre intervals down hole. Select sample compositing has been applied in the field at 4 metre intervals as determined by the geologist. Drill lines and spacing were based on numerous, widespread targets over three prospect areas. Drilling was more targeted than at a uniform spacing between drill holes and drill lines.
Orientation of data in relation to geological structure	• Whether the orientation of sampling achieves unbiased sampling of possible structures and the extent to which this is known, considering the deposit type. • If the relationship between the drilling orientation and the orientation of key mineralised structures is considered to have introduced a sampling bias, this should be assessed and reported if material.	At the Mt. Edwards‐Kambalda region, nickel sulphide mineralisation is located on the favourable geological contact zones between ultramafic rock units and metabasalt rock units. All but two drill holes were planned at ꟷ60odip angles, the other two were vertical, with varying azimuth angles used in order to orthogonally intercept the favourable geological contact zones. Geological information (including structural) from both historical geological mapping as well as current geological mapping were used during the planning of these drill holes. Geophysics and geochemical results from a recent Neometals soil sampling campaign were also used to plan targets.
Sample security	• The measures taken to ensure sample security.	Samples were collected and transported personally by Neometals and/or geological consultant staff to a reputable commercial laboratory in Kalgoorlie. Sample security was not considered a significant risk to the project. No specific measures were taken by Neometals to ensure sample security beyond the normal chain of custody for a sample submission.
Audits or reviews	• The results of any audits or reviews of sampling techniques and data.	A thorough review of the exploration program was undertaken prior to the drill program by Neometals Geology management. Regular reviews and site visits were made during the conduct of drill program. Contract geologists were based on site prior to, during and on completion of the drill and sample program to ensure proper quality control as per the modern mining industry standards.

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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 tenement and land tenure status	• Type, reference name/number, location and ownership including agreements or material issues with third parties such as joint ventures, partnerships, overriding royalties, native title interests, historical sites, wilderness or national park and environmental settings. • The security of the tenure held at the time of reporting along with any known impediments to obtaining a licence to operate in the area.	Work was carried out on mining tenements M15/45, M15/46, M15/77, M15/79 and E15/1553. These make up the southern portion of Neometals’ tenement package around the Widgiemooltha Dome. The four mining leases are held by another company, Mincor Resources, however Neometals holds the nickel mineral rights. Neometals is the beneficial owner of all mineral rights for the Exploration Licence E15/1553.
Exploration done by other parties	• Acknowledgment and appraisal of exploration by other parties.	Neometals has held an interest in the areas since June 2018, hence all prior work has been conducted by other parties. The ground has a long history of exploration and mining and has been explored for nickel since the 1960s, initially by Western Mining Corporation. Numerous companies have taken varying interests in the project area since this time. Historical exploration results and data quality have been considered during the planning stage of drill locations for this exploration program.
Geology	• Deposit type, geological setting and style of mineralisation.	The geology in this area typically comprises of sub‐ vertically dipping multiple sequences of ultramafic rock, metabasalt rock units and intermittent meta‐sedimentary units. Contact zones between ultramafic rock and metabasalt are considered as favourable zones for nickel mineralisation. Geochemical analysis, including the Mg:Ni ratios, suggests komatiite channels have been intersected in this program.
Drill hole Information	• A summary of all information material to the understanding of the exploration results including a tabulation of the following information 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	93 air core drill holes have been completed during the exploration program across five tenements for a total of 3,262 metres. The drill and sample programs were conducted in November and December 2019. All drill holes were drilled at a nominal ꟷ60odip (with two vertical holes) at varying azimuth angles. Relevant drill hole information has been tabled in the report including hole ID, drill type, drill collar location, elevation, drilled depth, azimuth, dip and respective tenement number.
Data aggregation methods	• In reporting Exploration Results, weighting averaging techniques, maximum and/or minimum grade truncations (eg cutting of high grades) and cut-off grades are usually Material and should be	Samples assessed as prospective for nickel mineralisation were assayed at single metre sample intervals, while zones where the geology were considered less

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26 March 2020 – MT EDWARDS NICKEL DRILL RESULTS FROM AIR CORE PROGRAM
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Criteria	JORC Code explanation	Commentary
	stated. • Where aggregate intercepts incorporate short lengths of high-grade results and longer lengths of low-grade results, the procedure used for such aggregation should be stated and some typical examples of such aggregations should be shown in detail. • The assumptions used for any reporting of metal equivalent values should be clearly stated.	prospective were assayed at a nominal 4 metre length composite sample. Significant intercepts in this report and defined as contiguous 1m sample intervals with assay results greater than 0.3% nickel, with an average grade greater than 1% nickel. Up to 1 metre internal dilution (less than 0.3% nickel) may be included in the intercept.
Relationship between mineralisation widths and intercept lengths	• These relationships are particularly important in the reporting of Exploration Results. • If the geometry of the mineralisation with respect to the drill hole angle is known, its nature should be reported. • 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’). _	Nickel mineralisation is hosted in the ultramafic rock unit close to the metabasalt contact zones. In some occasions nickel mineralisation has been recorded in the metabasalt units. All drilling is angled to best intercept the favourable contact zones between ultramafic rock and metabasalt rock units to best as possible test true widths of mineralisation.
Diagrams	• Appropriate maps and sections (with scales) and tabulations of 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.	A map of the current nickel exploration program locations and tenements relative to the total Mt Edwards project is shown in the report.
Balanced reporting	• Where comprehensive reporting of all Exploration Results is not practicable, representative reporting of both low and high grades and/or widths should be practiced to avoid misleading reporting of Exploration Results.	Current understanding is based on a single phase of drilling conducted by Neometals, and a small RC program conducted in November 2019. This was combined with historical mapping, drilling and sampling conducted by previous owners of the tenement. While results are encouraging, Neometals wish to conduct further exploration across the project area to gain an improved understanding of the economic potential of the nickel mineralisation at Mt Edwards.
Other substantive exploration data	• Other exploration data, if meaningful and material, should be reported including (but not limited to): geological observations; geophysical survey results; geochemical survey results; bulk samples – size and method of treatment; metallurgical test results; bulk density, groundwater, geotechnical and rock characteristics; potential deleterious or contaminating substances.	No further exploration data has been collected at this stage.
Further work	• The nature and scale of planned further work (eg tests for lateral extensions or depth extensions or large-scale step-out drilling). • Diagrams clearly highlighting the areas of possible extensions, including the main geological interpretations and future drilling areas, provided this information is not commercially sensitive.	Further air core drilling is planned to further define current nickel targets and test new targets identified from the drilling program mentioned in this report. RC and DD programs are also planned for 2020 at Neometals’ Mt. Edwards Nickel Project.

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