PERPETUAL RESOURCES LIMITED — Capital/Financing Update 2021

Dec 12, 2021

ASX RELEASE

13[th] December 2021

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ASX: PEC

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CORPORATE DIRECTORY

Executive Chairman Julian Babarczy

Managing Director Robert Benussi

Non-Executive Director Brett Grosvenor

Non-Executive Director & Company Secretary George Karafotias

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PROJECTS

Beharra Silica Sands Sargon Hub Eneabba Hub

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CONTACT

223 Liverpool Street Darlinghurst NSW 2010

George Karafotias +61 042 086 550

Robert Benussi +61 410 415 335

We wish to acknowledge the Traditional Custodians of the land (Yamatji Southern Regional) on which we are developing the Beharra Project, and pay our respects to their Elders past, present and emerging.

Expansion of Silica Sand Tenement Holdings and Signing of Private Land Access Agreement

HIGHLIGHTS:

• Perpetual applies for the Beharra West Exploration License (E70/5951)

• Beharra West is located approximately 3km west of Perpetual’s flagship Beharra Project

• Beharra West is dominated by private landholdings, including areas of cleared farming land, with potential for limited impact to existing native vegetation.

• Private Land Access Agreement signed with local landowner granting Perpetual access for exploration, appraisal and mining activities and related compensation arrangement

• Beharra West further consolidates land ownership around the Beharra Hub, which contains Perpetual’s highest quality silica sand endowment and favourable access to Geraldton Port

Perpetual Resources Limited ( ASX: PEC, “PEC”, “Perpetual” or “the Company”) is pleased to announce that it has applied for the Beharra West exploration license (E70/5951), a tenement located 3km west of Perpetual’s flagship Beharra high grade silica sand project. Beharra West is considered prospective for high grade silica sand and further consolidates Perpetual’s landholding in the exciting region. The Beharra West tenement is dominated by one private land holding and features numerous areas of cleared farming land, with potential for accelerated project development, should exploration activities and related studies support a viable project.

Perpetual has also concluded a Private Land Access Agreement with the dominant landowner at Beharra West, providing certainty to Perpetual for exploration and appraisal access and outlining the key working parameters for any future production scenario, should the project progress.

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Mr. Robert Benussi, Managing Director of Perpetual, commented on the acquisition, “Beharra West presents yet another an exciting opportunity for Perpetual, being proximal to our Beharra project and significant portions of the tenement already cleared for farming and grazing purposes. We have moved quickly to conclude commercial discussions with the dominant local landowner which paves the way for rapid assessment of this new land package, to determine its geological and economic potential and how it could sequence with development of our Beharra Project, which continues to advance rapidly”.

Beharra West Tenure and Location

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Figure 1 – Regional location map showing Beharra West (E70/5951) tenement in yellow dotted outline and also showing Perpetual’s nearby silica sand tenements.

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The Beharra West Project is located approximately 280Kms north of Perth and is situated between the regional town of Dongara and Eneabba, in Western Australia. The project is adjacent to the Brand Highway and nearby to the Geraldton-Eneabba Railway, which includes a rail connection direct to Geraldton Port.

The Project area lies within the northern Perth Basin, containing a succession of Quaternary to Permian age deposits up to a total of 12,000 meters thick, locally up to 4,000 meters thick. It comprises a topographic high atop an aeolian sand dune system up to 15 meters thick from the western edge of the deposit with a gentle west and east sloping erosional surface from 80mRL to 60mRL.

The surface is leached loose sand with very high transmissivity and drains from the center of the Project to the west and east. To the west is the seasonal Arrowsmith River which flows only during very high rainfall events and to the east are low land swamps.

The Beharra West Project is comprised of one exploration license application: E70/5951. The tenement was applied for on 27[th] October 2021 by Perpetual Resources Limited and is currently in the process of being granted by the Department of Mines. The area of the project is 15 blocks (44.8Km[2] ). Infrastructure is considered high quality as the tenement is adjacent to the sealed Brand Highway and the Geraldton-Eneabba railway line, both of which are direct connections to Geraldton, which contains a deep-water port.

Beharra West Geology

Most economically significant silica sand deposits in Western Australia are found in the coastal regions of the Perth Basin, and the targeted silica sand deposits are the aeolian sand dunes that overlie the Pleistocene limestones and paleo-coastline, which also host the regional heavy mineral deposits.

Regional mapping by the Geological Survey of Western Australia (1995) has delineated three discrete areas of exposed Qp formation across the project area, which can host white high purity silica sands in the region. Adjacent deposits have identified the presence of additional white sand formations beneath yellow sand cover, which will be a priority target of exploration efforts by Perpetual.

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Private Land Access Agreement Signed

Perpetual is also pleased to confirm that it has negotiated and signed a Private Land Access Agreement with the dominant landowner at Beharra West, which governs access rights for Perpetual to undertake exploration and mining activities and defines compensation arrangements with the landowner for these activities.

Perpetual looks forward to working with the landowner, who is already assisting with Perpetual’s Beharra-related exploration activities.

Future Exploration Activities at Beharra West

With the Private Land Access Agreement now completed at Beharra West, Perpetual plans to undertake reconnaissance exploration activities and drilling in coming months, with a view to rapidly assessing the geological potential of the tenement. Further updates will be provided once a formal exploration program is commenced.

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About Perpetual Resources Limited

Perpetual Resources Limited ( Perpetual ) is a focused explorer of silica sands, aiming to produce high purity silica and potentially construction sands for domestic and international markets.

Perpetual’s flagship asset, the Beharra Project is located 300km north of Perth and is 96km south of the port town of Geraldton in Western Australia. Access to the Project from Geraldton (to the north) and Perth (to the South) is via the sealed Brand Highway, thence approximately 8.5km east on the Mt Adams unsealed road providing access to the center of the tenure.

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Mt Adams Road which Intersects the Beharra Tenement

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Brand Highway Intersection with Mt Adams Rd

The port of Geraldton is utilised as a bulk material handling facility and is currently utilised for the export of bulk materials, minerals, and concentrates. Grains, copper concentrates, zinc concentrates, nickel concentrates, mineral sands, talc, and iron ore are currently being exported from the port. Extensive heavy mineral sands mining occurs to the south of the Project area, lime sands mining to the west and natural gas production to the south of the Project.

The Beharra Project comprises of a granted mining lease, M70/1406, covering an effective area of 10.4km[2] , and a granted exploration license, E70/5221, covering an effective land area of 56.8km[2] .

Auger and air core drilling has confirmed the presence of extensive, high purity silica sands, with a maiden Mineral Resource Estimate completed in July 2020. A detailed Pre-Feasibility Study and Maiden Ore Reserve for Beharra was released to the ASX on March 17th, 2021.

Silica Sands Market

Silica sands have an extensive range of uses including lower purity and grade applications such as construction sand, proppant sand used in well fracturing, and foundry sand. With increasing purity (>99.5% SiO2) uses includes glass making including clear glass. Uses for purity >99.8% includes semi-conductor fillers, LCD screens, and optical glass. Significant expansion of solar PV cell manufacturing capacity is also driving demand for silica sand with Fe2O3 content of <200ppm.

This announcement has been approved for release by the Board of Perpetual.

For enquiries regarding this release please contact:

Mr. George Karafotias Company Secretary +61 421 086 550

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Forward-looking statements

Certain statements contained in this document may be ‘forward-looking’ and may include, amongst other things, statements regarding production targets, economic analysis, resource trends, pricing, recovery costs, and capital expenditure. These ‘forward–looking’ statements are necessarily based upon a number of estimates and assumptions that, while considered reasonable by Perpetual, are inherently subject to significant technical, business, economic, competitive, political and social uncertainties and contingencies and involve known and unknown risks and uncertainties that could cause actual events or results to differ materially from estimated or anticipated events or results reflected in such forward-looking statements.

Forward-looking statements are often, but not always, identified by the use of words such as ‘believe’, ‘expect’, ‘anticipate’, ‘indicate’, ‘target’, ‘plan’, ‘intends’, ‘budget’, ‘estimate’, ‘may’, ‘will’, ‘schedule’ and others of similar nature. Perpetual does not undertake any obligation to update forward-looking statements even if circumstances or management’s estimates or opinions should change. Investors should not place undue reliance on forward-looking statements as they are not a guarantee of future performance.

Disclaimer

No representation or warranty, express or implied, is made by Perpetual that the material contained in this document will be achieved or proved correct. Except for statutory liability and the ASX Listing Rules which cannot be excluded, Perpetual and each of its directors, officers, employees, advisors and agents expressly disclaims any responsibility for the accuracy, correctness, reliability or completeness of the material contained in this document and excludes all liability whatsoever (including in negligence) for any loss or damage which may be suffered by any person through use or reliance on any information contained in or omitted from this document.

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