OZZ RESOURCES LIMITED — Capital/Financing Update 2021

Nov 24, 2021

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ASX RELEASE

Australian Securities Exchange Limited Via e-lodgement ASX Code: OZZ Thursday, 25 November 2021

HIGHLY PROSPECTIVE LEONORA PROJECT ACQUIRED

OZZ expands its footprint in Tier-1 mining district and strengthens its exploration pipeline

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Key Points:

• Pinnacle Well comprises a major land-holding (95km[2] ) in the gold-rich Leonora district

• Highly prospective geology with extensive alteration identified

• Multiple generations of quartz veining assaying up to 12g/t Au

• Limited previous exploration with recent cover blanketing the bedrock exposure

• Multiple gold and base metal targets defined

• Farm-in with initial payment comprising cash and shares

• Operational synergies with OZZ’s nearby Mt Davis Gold Project

• Part of ongoing process to consolidate ground in the area

WA-focused gold explorer OZZ Resources Limited (ASX Code: OZZ – “OZZ Resources”) is pleased to announce the strategic acquisition of a significant new project in the highly prospective Leonora district. The new Pinnacle Well Project, covering an area of 95km[2] , is located just 30km north of Leonora to the east of OZZ’s existing Mt Davis Project (see Figure 2).

The area has had very limited drilling, despite the presence of a highly prospective greenstone belt, extensive alteration and structural preparation from the underlying Pig Well Graben and the district-scale Keith-Kilkenny Shear zone.

Recent sampling and mapping have confirmed the presence of gold, base metal and molybdenum mineralisation in numerous locations across the Exploration Licence, which has recently been renewed for a 5-year period and has no encumbrances.

The deal involves a farm-in arrangement under which OZZ can earn a 75% interest in the Pinnacle Well Project by spending $750,000 on exploration over 2.5 years, followed by a joint venture. The upfront consideration involved cash and shares.

OZZ Managing Director, Jonathan Lea, commented: “I am excited by the potential of the Pinnacle Well Project, which has significant potential to host gold and base metal mineralisation. “This acquisition, and the rapid start to our exploration efforts since listing, emphasises our commitment to our corporate strategy of focused assessment and improvement through portfolio regeneration.”

Figure 1 - OZZ Resources' WA gold projects

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Ozz Resources I ACN 643 844 544 I 9/186 Hay Street, Subiaco, WA 6008 I www.ozzresources.com.au

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Project Detail

The Pinnacle Well Project, E37/1246, is centered approximately 25km NNE of Leonora. The project is located approximately 12km to the east of OZZ Resources’ Mt Davis Project, offering the potential for operational synergies. The project is readily accessible, being located just 10km east of the Goldfields Highway. The Leonora district is well serviced by mining infrastructure, including numerous gold processing plants – both existing and under construction.

The project is located in the Archaean aged Yilgarn Craton of Western Australia and lies within the Kurnalpi terrane of the Eastern Goldfields Superterrane. At a district scale, the Leonora area hosts numerous world-class gold deposits which include the Sons of Gwalia, King of the Hills, Thunderbox, Darlot and Agnew gold deposits. Base metal volcanogenic massive sulphide (VMS) deposits such as Teutonic Bore, Jaguar and Bentley are located to the north, and relative to VMS systems that have been identified in the Yilgarn Craton to date, are second only to the Golden Grove deposits.

Locally, the project area Archaean bedrock geology is poorly exposed (approximately 30% of the project area with exposure, predominantly to the north in granitoid lithologies) and presents largely as areas of moderate to intensely weathered subcrop and associated colluvial and alluvial cover. The remaining 70% of the tenement area comprises transported distal colluvial and alluvial deposits ranging from a few metres deep to tens of metres deep.

Locally, the Bundarra batholith syeno-granite dominates the northern portion of the tenement. The greenstone sequence within the tenement consists of an interpreted andesite-dacite dominated sequence with lesser rhyolite which is intruded by the Christmas Well felsic to intermediate composition subvolcanic porphyritic intrusives.

The area is well structurally prepared with the interpreted structures being the regionally significant Keith-Kilkenny Shear Zone and the Pig Well Graben (associated with the Gambier Lass mineralisation to the south), which is located in the southern portion of the tenements.

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Figure 2 – Ozz Resources, Leonora Projects and Regional Geology

Within the poorly exposed areas of Archean bedrock field mapping and hyperspectral scanning has revealed large areas of intense hydrothermal alteration, which is suggestive of proximity to an intrusion-related large magmatic hydrothermal system.

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An extensive network of vein and gossan zones have been mapped and appear both associated with and proximal to these areas of intense hydrothermal alteration. Current and past exploration has revealed numerous mineralised trends which include gold, base metal and molybdenum mineralisation. Several significant gossans with potential for base metal mineralisation are located on the license.

Exploration Potential

The tenement has excellent potential to host a number of deposit styles and commodity types including gold, base metals and molybdenum. The vendor has spent the past five years collating data, field mapping and sampling, resulting in the identification of a number of alteration styles and associated mineralisation potential – aimed at generating drill targets. Targeting work has combined existing exploration data relative to the hydrothermal alteration and structural preparation from the granitoid intrusion, the Keith-Kilkenny Fault and Pig Well Graben.

With approximately 70% of the tenement shrouded by recent alluvial cover, the majority of these trends have had either no follow-up or very limited follow-up exploration. The targeting work completed recently is illustrated in Figure 3 and will allow OZZ to undertake an immediate and more focused exploration effort leading to early drill campaigns.

An extensive network of veins and gossanous zones have been mapped and appear both associated with and proximal to areas of intense hydrothermal alteration. Rock chip sampling in the exposed quartz veining has returned assays of up to 12g/t gold with elevated silver and bismuth. Extrapolation of limited outcrop/sub-crop suggests two main orientations, an eastwest trend (sub-parallel to the granite contact) and the other trending NNW. The strike length of a number of separate quartz veining structures extends to several kilometres.

The tenement bookends the excised Linger and Die workings to the north-west of the lease, where shallow pits and extensive alluvial working have produced an unrecorded quantity of gold. The dominant east-west trend of the mineralisation is likely to pass under cover onto E37/1246 and presents an early potential drill target. Patches of gold-rich sheared granite, north of the Linger and Die workings, have also been mined both historically and recently.

Gold immediately south of the tenement at the Gambier Lass workings is associated with steep to moderately south-west dipping quartz veins in the major north-west trending shear zone associated with sericite-carbonate alteration at the vein margins. Production at the Gambier Lass workings is recorded as approximately 10,000oz at a grade of one ounce per tonne. The hosting structure, the Pig Well Graben, trends into OZZ’s tenure and again presents an under-cover drill target, following geochemical sampling and geophysical surveying.

At least two significant but poorly tested gossans are located on the project area and are interpreted as having base metal potential. The eastern gossan lies near the Jaguar VMS trend and immediate drill testing is warranted. The second gossan, in the north-east, lies near a major zone of greisen development of the granite and again has not been adequately drill tested despite striking for several hundred metres.

The Mt Molybdenum historic workings are located to the north of the tenement and indicate the potential of the granitoid as a source of mineralisation. Only very limited drill testing has been undertaken previously at this prospect despite significant workings.

The Pinnacle Well prospect is surrounded by extensive pyrophyllite alteration. Pyrophyllite (Al2Si4O10(OH)2) is a hydrated aluminum silicate, a talc group mineral. The dolerite dyke associated with OZZ’s mineralisation at its Mt Davis Trig deposit transects this area to the south. Nearby anomalous gold grades have been returned from previous soil sampling and an old costean revealed copper mineral alteration. Given the limited amount of outcrop in the area, and its strategic location on the Pig Well Graben/Keith Kilkenny trend, further work is required to define targets – potentially detailed magnetics and soil geochemistry. Previous explorers recommended further work to assess the commercial potential of the pyrophyllite mineralisation.

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Figure 3 – Pinnacle Well Prospects: Interpreted quartz veining in orange, base metal anomalies in red

Consideration Details

A farm-in and joint venture agreement has been finalised involving a payment of $75,000 cash and 750,000 fully paid ordinary shares being tendered in settlement. OZZ will spend $750,000 on exploration over a 30-month period to earn a 75% stake in the project. Following the earn-in, a joint venture will be formed with OZZ free-carrying the vendor to conclusion of a Feasibility Study.

The shares will be issued in two tranches utilising the Company’s placement capacity under ASX LR 7.1 – the first being 350,000 quoted fully paid ordinary shares issued immediately which will be under a voluntary escrow arrangement for three months from the date of issue. The second tranche of 400,000 quoted fully paid ordinary shares to be issued on 4[th] July 2022. An Appendix 2A and 3B will follow this announcement.

Shares will be issued to Cadmon Advisory Services for providing corporate advice and services to facilitate the agreement (250,000 fully paid ordinary shares and 850,000 quoted options (OZZO) exercisable at 25 cents and expiring 25 October 2024). These securities will also be issued utilising the Company’s placement capacity under ASX LR 7.1, an Appendix 2A follows this announcement.

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Future Exploration

Pinnacle Well adds significantly to OZZ’s land-holding in the Leonora district and is highly prospective greenstone terrane with potential for shear-hosted and quartz lode hosted gold mineralisation as well as base metal mineralisation.

OZZ plans to rapidly advance exploration at Pinnacle Well with the aim of commencing geochemical and geophysical surveying early in 2022 and commencing drilling in the first half of 2022.

Other Developments

P37/8633 Acquisition

An addition was made to the Mt Davis Project by the purchase of 80% of P37/8633. The holding was purchased from the same vendor as the other tenements in the project and will be included as part of the future joint venture once the farm-in stage on the other tenements is concluded. The terms of the original purchase and farm-in are provided in the OZZ Resources’ Prospectus, as lodged with ASIC on May 7, 2021.

The consideration for this recent acquisition was $20,000 cash and 200,000 quoted fully paid ordinary shares in OZZ for an 80% ownership. The shares will be issued utilising the Company’s placement capacity under ASX LR 7.1 and included in an Appendix 2A to follow this announcement.

This increase to the tenement holding (refer to Figure 4) is indicative of OZZ’s intent to progressively consolidate prospective ground around its existing holdings. P37/8633 contains extensions to the excised Grattan Well open cut, currently being mined at a small scale, with reported grades above 3g/t. The mineralised Clifford Fault passes through the south-eastern corner of this lease and St Barbara’s recently ASX announced Trevor Bore discovery (including 7m at 10.5g/t) is located immediately to the south-west.

Soil geochemistry is planned in December 2021 across the entire Mt Davis Project, with drilling expected in the first half of 2022.

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Figure 4 – Mt Davis Tenure and Geology

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Wardarbie South Aeromagnetics

A drone supported aeromagnetic survey was completed over the Wardarbie South tenements in November 2021. The data interpretation was competed subsequently by Core Geophysics.

The interpretation has identified eight specific targets (Figure 5). The zones of interest were generated from interpreted flexures in the lithological contacts, zones of demagnification and in areas of intersecting structures.

The interpretation also better identified the lithological contacts between meta-sediments, dolerite and granite and enclosed ultra-mafic and banded iron formations.

The Company plans to undertake soil sampling in 2022 with the combined datasets to be used to define drill targets.

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Figure 5 –Wardarbie South with Geology and Geophysical Targets (in red)

Background on OZZ Resources and its key projects

OZZ Resources listed on the ASX in July 2021 and is focused on completing an aggressive exploration program across its portfolio of projects, with a multi-pronged exploration program planned in the coming year.

The Mt Davis project is located 20km north of Leonora and 4km south-east of Red 5 Limited’s 4.1Moz King of the Hills gold project (currently being developed as a major new standalone open pit and underground gold mine). A soil sampling programme will be completed shortly. The project contains mineralisation at the Trig deposit, which is hosted by the same geological structures associated with major mineralisation around Leonora, including the world-class +8Moz Sons of Gwalia mine. The acquisition of the Pinnacle Well Project will result in significant exploration synergies and efficiencies.

Located in the Central Murchison Region, 62km south-west of Meekatharra, Maguires includes three advanced prospects defined by previous and recent drilling, with high-grade shoots contained in two shear zones. Recent drilling returned results included 14m @ 2.66 g/t Au from 45m, 7m @ 9.10 g/t Au from 81m and 7m @ 4.50 g/t Au from 46m. A JORC compliant Mineral Resource estimate for Old Prospect was released in November 2021 of 312 kt @ 2.15 g/t for 22 koz of contained gold. The resource is open in all directions and further drilling is planned in 2022 at Old Prospect and the nearby untested Maguires Reward prospect.

Rabbit Bore, located NW of Cue, hosts a 5km strike length of prospective shear zones largely under cover, including several historic gold working which have returned rock chip assays of up to 4.2 g/t gold. The detailed magnetic data obtained from a

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recent survey with close spaced flight lines will be utilised, together with a recently completed soil sampling program, to generate targets for initial drilling. Previous soil sampling has also returned anomalous copper, nickel and cobalt results.

An aeromagnetic survey was completed recently at the Wardarbie South Project, west of Meekatharra. This data (as discussed above) will be used in conjunction with future soil sampling to define drill targets within the three kilometres of prospective lithologies.

Peterwangy, which was the site of WA’s first gold rush in 1868, hosts historic workings within a 3km long greenstone belt straddling the craton-scale Koolanooka Fault. No drilling has ever been undertaken at the project, and OZZ will utilize a combination of magnetic survey data and ground-based soil sampling to generate drill targets.

This ASX announcement has been authorised for release by the Board of OZZ Resources Limited.

ENDS

For more information please contact:

Media:

Investors: Media: Jonathan Lea Nicholas Read Managing Director Read Corporate OZZ Resources Ltd Phone: +61 419 929 046 Phone: +61 438 967 400

Competent Person’s Statement

The information contained in this announcement that relates to Exploration Results at the OZZ Resources projects is based on information compiled or reviewed by Mr Jonathan Lea, who is an employee and security holder of the Company. Mr Lea is a member of the AusIMM and has sufficient experience which is relevant to the style of mineralisation and type of deposit under consideration and to the activity which is being 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 Lea has given consent to the inclusion in the announcement of the matters based on this information in the form and context in which it appears.

The information in this announcement that relates to Historic Exploration Results is extracted from OZZ Resources Prospectus, lodged with ASIC on May 7, 2021 and the First and Second Supplementary Prospectus’ lodged on May 25 and June 15 respectfully and available on OZZ’s website www.Ozzresources.com.au. The Company confirms that it is not aware of any new information or data that materially affects the information with regard to reporting of historical exploration results, or historical estimates contained in the Prospectus and the form and context of the release 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 public release.

The information in this report that relates to Mineral Resources for the Maguires Project is extracted from the ASX release dated 19, November 2021 and titled ‘Maiden Gold Resource at Maguires Sets Strong Foundation for Growth in Tier-1 Mining District’. The Company confirms that it is not aware of any new information or data that materially affects the information with regard to reporting of the Mineral Resources. 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 public release.

Forward-Looking Statements

This announcement might contain forward-looking statements with known and unknown risks and uncertainties. Factors outside of OZZ’s control, may cause the actual results, performance and achievements of OZZ to differ materially from those expressed or implied in this presentation. To the maximum extent permitted by law, OZZ does not warrant the accuracy, currency or completeness of the information in this announcement, nor the future performance of OZZ, and will not be responsible for any loss or damage arising from the use of the information. The information contained in this presentation is not a substitute for detailed investigation or analysis of any particular issue. Current and potential investors and shareholders should seek independent advice before making any investment decision in regard to OZZ or its activities.

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JORC Code, 2012 Edition – Table 1

Section 1 Sampling Techniques and Data

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Criteria Commentary
Sampling techniques  A UAV magnetic survey was conducted over the Wardarbie
South prospect in October 2021.
 The survey was commissioned by Ozz Resources Ltd and
completed by ROC Aerial Pty Ltd.
 A total of 135 line km were collected with the specifications
summarised below.
- Line Spacing: 50m
- Line Orientation : 000-180°
- Station Spacing: approx 1m
- Sensor: GEM GSMP-35UB Potassium vapour magnetometer
Other details of sampling techniques is not applicable
Drilling techniques  No drilling activity undertaken
Drill sample recovery  No drill samples collected
Logging  Geophysical survey and hence no logging
Sub-sampling techniques and sample  The survey was flown with a DJI Matrice 600 Pro which has
preparation onboard 3 onboard GPS with accuracy of Vertical: ±0.5 m,
Horizontal: ±1.5 m (hovering).
Quality of assay data and laboratory tests  No Assays carried out for this survey
Verification of sampling and assaying  All data was transferred to ROC personnel on a daily basis for
verification.
Location of data points  All data has been collected in WGS84 datum converted to MGA
Zone 50 grid system, automatically by the on-board integrated
GPS which employs a recording rate of 20Hz.
Data spacing and distribution  The line spacing was between 50m with data recorded every 0.1
second to provide stations every 50cm. The data density is
considered appropriate to the purpose of the survey. The base
station recorded every 3 seconds.
Orientation of data in relation to geological  The line path is approximately oriented 45° to the regional strike
structure direction of geological formations and is sufficient to locate discrete
anomalies.
Sample security  Not applicable for geophysical survey
Audits or reviews  The data were verified by Core Geophysics.
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Section 2 Reporting of Exploration Results

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Criteria Commentary
Mineral tenement and land tenure status  P51/3025, P51/3026, P51/3027 – Wardarbie South Project, Ozz
owns 80%, Diversified Asset Holdings Pty Ltd owns 20%
 Tenements in good standing
Exploration done by other parties  Core Geophysics Pty Ltd interpreted aeromagnetic data and
defined targets
Geology  Potential Archaean greenstone gold and base metal mineralisation
Drill hole Information  No Drilling
Data aggregation methods  No aggregation
Relationship between mineralisation  No mineral width specified
widths and intercept lengths
Diagrams  Figure 5
Balanced reporting  Sufficient information provided
Other substantive exploration data  Reported elsewhere
Further work  Geochemical and geological mapping planned prior to future drill
testing of defined and ranked anomalies
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