ORPHEUS URANIUM LIMITED — Capital/Financing Update 2021

Mar 21, 2021

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ASX announcement

22 March 2021

Murdie Project: Drilling Commenced

Highlights

• Drilling has commenced at the Murdie project.

• This is the first drill hole in an initial 4–5 hole program.

• Drilling is targeting Iron Oxide Copper-Gold (IOCG) mineralisation defined by large gravity anomalies.

Drilling

The first hole of an initial 4–5 hole program is at a residual gravity anomaly called Smith Dam 1 (Figure 3). The first hole will be drilled to a depth of approximately 1,100m.

Argonaut is protecting the salt crust of Lake Torrens via protective ground mats and absorbent geofabric. Different specification mats are being used for specific purposes. Movements to and from the drilling rig are by low ground-pressure vehicles. The drilling is expected to take 23 days to reach the top of the targeted body and 28 days in total to complete the hole.

Drilling will be conducted 24/7 in two daily shifts.

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Drilling at the Murdie project on 21 March 2021.

Argonaut Resources NL ABN 97 008 084 848

Registered Office Level 6, 100 Pirie Street Adelaide, SA, 5000 AUSTRALIA P +61 8 8231 0382 E adelaide@argonautresources.com

Drilling Targets

The Murdie exploration licences covers two largescale, regional gravity anomalies – West Lake Torrens and Murdie (Figure 1). These anomalies represent locations with significant volumes of high-density rock that could contain economic IOCG deposits. Efforts are being focused on the West Lake Torrens anomaly.

Argonaut has identified seven excellent drilling targets at the West Lake Torrens anomaly. Drilling targets located near the shoreline of Lake Torrens are shown on Figure 3 as Smith Dam 1 to 4. Offshore targets are labelled Crystal Dam 1 to 3.

Argonaut plans to drill test Smith Dam 1 and Smith Dam 2 first. Other targets will be prioritised on the basis of results.

Gravity Anomalies

A volume of high-density rock causes a measurably higher gravitational pull at surface and this manifests as a gravity anomaly. Therefore, mineral explorers can use gravity surveys as a means to define gravity anomalies and potentially discover dense orebodies.

IOCG orebodies contain high concentrations of iron and copper minerals making them particularly dense.

West Lake Torrens Bouguer Anomaly

The West Lake Torrens anomaly is a regional gravity anomaly (Figure 2). This type of anomaly is typically displayed as a “bouguer” gravity anomaly. The peak of the West Lake Torrens bouguer anomaly is 7 milligals above background levels.

Residual Gravity Targets

Initial 2021 drilling by Argonaut at the Murdie project will target “residual” gravity anomalies within the wider West Lake Torrens anomaly (Figures 2 and 3).

The residual gravity targets shown in Figure 3 are 0.85 to 1.15 milligals above the regional gravity anomaly[1] .

Judicial Review Application

The Barngarla Determination Aboriginal Corporation RNTBC has filed an application in the South Australian Supreme Court for a review of the authorisation announced to the ASX by Argonaut on 4 January 2021.

The Company notes that there are no registered Barngarla heritage sites at Lake Torrens.

Exploration works being undertaken at the Murdie project have been duly authorised. The Company is confident that the State’s authorisation process was robust.

Murdie, South Australia

Argonaut Resources holds two highly prospective South Australian exploration licences, EL5937 and EL5945 (Figure 1). The licences are contiguous with the Company’s Torrens project in South Australia. The licence areas cover a confirmed IOCG target in an area known as Murdie as well as a second anomaly at West Lake Torrens. There are 54 known residual gravity targets within the area.

The licences cover an area of 1,015 square kilometres and are located immediately south and east of the Torrens project and east of the Carrapateena mine (Figure 1).

This report is authorised for release by:

Lindsay Owler

Director and CEO

Argonaut Resources NL

1 Measured via the subtraction of the 0.5km upwards continuation of the West Lake Torrens bouguer anomaly.

Sections of information contained in this report that relate to Exploration Results were compiled or supervised by Mr Lindsay Owler BSc, MAusIMM who is a Member of the Australasian Institute of Mining and Metallurgy and is a full-time employee of Argonaut Resources NL. Mr Owler holds shares and options in Argonaut Resources NL, details of which are disclosed in the Company’s 2020 Annual Report. Mr Owler has sufficient experience which is relevant to the style of mineral deposits under consideration and to the activity which he is undertaking to qualify as a Competent Person as defined in the 2012 edition of the “Australasian Code for Reporting of Mineral Resources and Ore Reserves”. Mr Owler consents to the inclusion in this report of the matters based on his information in the form and context in which it appears.

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Argonaut Resources NL | ASX ANNOUNCEMENT

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136° 30' E 137° 00' E 137° 30' E 138° 00' E
-30° 00' S
Olympic
Domain
EL 6320
Olympic Dam Andamooka
-30° 30' S
LAKE TORRENS
Roxby Downs Red Dam EL 6320
Acropolis Wirrda Well
EL 6407
Torrens
Island Dam
EL 5945
EL 5937 Murdie
-31° 00' S
Oak Dam West
(BHP discovery) West Lake Torrens
Khamsin Fremantle Doctor
Woomera
Carrapateena
Torrens JV EL EL 6352 -31° 30' S
Argonaut EL
Argonaut EL Murdie Project
Town
Highway
Main road
Gawler Craton
Railway
Major deposit
Significant prospect
Prospect
SOUTH AUSTRALIA
EASTERN GAWLER CRATON -32° 00' S
Location of tenure 0 20 40
Kilometres
January 2021
Torrens_29
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Figure 1 Lake Torrens exploration licences.

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Argonaut Resources NL | ASX ANNOUNCEMENT

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750,000m E 755,000m E 760,000m E 750,000m E 755,000m E 760,000m E
Nearshore targets
6,570,000m N 6,570,000m N Ofshore targets
Gravity high
6,565,000m N 6,565,000m N
EL 5945 EL 5945
-
Murdie Murdie
Crystal Dam 1
6,560,000m N 6,560,000m N
Crystal Dam 2
Smith Dam 3
Crystal Dam 3
6,555,000m N 6,555,000m N
5 Smith Dam 1
7
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Smith Dam 4
6,550,000m N 6,550,000m N
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WEST LAKE TORRENS Bouguer gravity anomaly

WEST LAKE TORRENS

Residual gravity anomalies and drilling targets

Figure 2 West Lake Torrens bouguer (regional) gravity anomaly.

Figure 3 West Lake Torrens residual gravity anomalies and drilling targets.