PERPETUAL RESOURCES LIMITED — Capital/Financing Update 2021

Dec 1, 2021

ASX RELEASE

––––––––––––––––––––––

2nd December 2021 ASX:PEC

CORPORATE DIRECTORY

Executive Chairman Julian Babarczy

Managing Director Robert Benussi

Non-Executive Director Brett Grosvenor

Non-Executive Director & Company Secretary George Karafotias

––––––––––––––––––––––

––––––––––––––––––––––

PROJECTS

Beharra Silica Sands Arrowsmith West Sargon Hub Eneabba Hub

CONTACT

223 Liverpool Street

Darlinghurst NSW 2010

George Karafotias +61 421 086 550

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.

Beharra White Sand Test Work confirms 173ppm Fe2O3 End Product with Potential for Higher Quality White Sand Domain

HIGHLIGHTS:

• Final Beharra white sand products from most recent testing confirmed to have low level of impurities;

Beharra White Sand Only	SiO2	Fe2O3 ppm Al2O3 ppm		TiO2 ppm	Mass
Beharra Special White	99.6%	173	1986	342	100%
Beharra Premium White Fine	99.6%	160	1620	290	14%
Beharra Premium White Coarse	99.6%	175	2045	350	86%

• Exceptional improvement in interim product specifications now confirmed when compared to the Beharra Pre-Feasibility Study12;
  • SiO2 content remains high at 99.6%
  • Fe2O3 reduction of 37% from 276ppm to 173ppm
• Distinct geological sub-domains within the white sand horizon have now been characterised;
  • White sand horizon shows clear chemical and lithological/mineralogical zonation between an upper and lower sub-unit
  • Upper unit appears to contain higher SiO2 content and lower impurity profile suggesting a higher-premium Beharra final product is possible
• This exciting geological discovery prompts additional test work, which is now being designed and implemented to focus on separate domains delineating the white sand upper and lower units.
• New testing will aim to deliver bulk sample test results early 2QCY22 from distinct domains within the white sand sequence.
• Offtake discussions to now focus on potential for a higher-premium Beharra product, which is expected to further aid interest and market acceptance
• Updates to be provided shortly on Beharra project study pathway

1 Figures below compare the Beharra Premium #44 from the Beharra PFS Study to the Beharra Special White from the current white sand only test results

2 All references to "Pre-Feasibility Study" or "Beharra PFS" or "PFS" in this announcement refer to the Beharra Pre-Feasibility Study that as released to ASX on 17th March 2021, titled "Maiden Ore Reserve and Outstanding Beharra PFS Result Update"

Perpetual Resources Limited (ASX: PEC, "PEC", "Perpetual" or "the Company") is pleased to announce exceptional white sand test results as well as the delineation of multiple geological/mineralogical domains within the white sand sequence at Beharra. Perpetual now believes there is strong potential that Beharra hosts an even higher quality silica sand product from a sub-domain within the white sand horizon, with a quality that shows strong potential to surpass the exceptional results of the most recent testing.

Representative white sand bulk metallurgical test results from the recent testing program conducted by IHC Robbins in Brisbane have now been received. These results showed a material reduction in the key impurity Fe2O3 (iron oxide) of 37% and have also highlighted that distinct geological / mineralogical differences exist within the high-quality white sand sequence at Beharra. These differences demonstrate a clear chemical demarcation within the white sand domain, indicating the presence of a higher quality upper unit combined with a lower sub-unit, previously understood to be one broadly homogenous white sand horizon. The attributes of the upper unit suggest that an even higher quality final product is possible from this sub-unit, which appears to contain the same (or potentially higher) SiO2 content, but with a significant reduction in key impurities. As the upper unit is a sub-set of the metallurgical results announced today, Perpetual will be exploring the likely thesis that the upper sub-unit will be higher quality than the overall bulk metallurgical test results announced today.

Mr. Julian Babarczy, Executive Chairman of Perpetual, commented on the results, "Today's announcement of multiple geological domains within our already high-quality white sand sequence at Beharra is yet another improvement to our previous understanding of the quality of the Beharra deposit. The results announced today, which are exceptional in their own right and clearly show why Beharra is the leading Midwest silica sand project, point to the proposition for an even higher quality end product, with additional test work now being planned. With a significant amount of drill sample remaining from the recent 86-hole air core program completed in June 2021 at Beharra, we have commenced the collection of multiple bulk samples that will reflect each of the white sand sub-domains with subsequent testing aiming to confirm the presence of the higher quality upper sub-domain that will form the basis of Perpetual's marketing efforts into the high growth Asian ultra-clear glass markets".

Background

After the success of the initial 300kg white sand sampling results at Beharra, announced in April 2021 (please refer to ASX announcement dated 22nd April 2021, titled "Exceptional metallurgical test results at Beharra deliver game changing impurity levels"), Perpetual undertook an additional 86 hole air core drilling program, the results of which were announced in August 2021 (please refer to ASX Announcement dated 30th August 2021 titled "Phase 3 air core infill drilling results confirms high grade white silica sand at Beharra"). This drill program targeted an area of the Beharra deposit

situated at the southernmost extent of the Beharra Mining License (please see Figure 1 below) and was aimed at extracting white sand only drill samples for use in a bulk representative metallurgical testing program that would confirm the metallurgical characteristics of a white sand only processing scenario over an initial 10 years of mine life at Beharra.

Figure 1 – Location of Beharra drill holes from all drilling campaigns undertaken by Perpetual, with the red dots representing the most recent 86-hole program

IHC Robbins Testing

The drill samples were sent to IHC Robbins in Brisbane where they were sorted and selected on the basis of the mineral resource modelling and reflecting the proposed mining process (i.e., topsoil removal, exclusion of samples classified as yellow, grey or high silt/clay content unless these occur as thin bands within the planned ore to be mined).

Once the sample was sorted and composites made from each drill hole, they were then combined to produce the master composite sample. This was then subjected to a pre-screen to remove any oversize (+1.0mm) components, followed by a hydrocyclones to reject fines (-75µm), Wet High

Intensity Magnetic Separation (WHIMS) to remove magnetic fractions, two stages of spiral separation for further classification, an up-current classification stage to reject -150µm fines, followed by a final screening stage. For detail on the flow sheet for this round of testing, please see Figure 2 below.

The only notable difference between the flow sheet shown in Figure 2 on the previous page and the flow sheet that was utilised in the Beharra PFS Study, is the sequencing of the WHIMS stage prior to the spirals in the most recent testing program. This change in order was made to provide a more effective removal of the magnetic iron oxides with a lower loss of potential silica sand pre the spirals. This significantly reduced the duty for the spiral stages and provided an increase in final product yield (i.e., the yield to premium product increased from 74.4% to 77.8%).

Exceptional Metallurgical Results

The results of the IHC Robbins testing showed a substantial increase in overall product quality when compared to the Beharra PFS results. The test results showed no sacrifice to the high SiO2 content concurrent with a significant reduction in the key impurity of Fe2O3, which was 37% lower, when compared to the Beharra PFS results (please see graphical representation in Figure 3 below). To the best of Perpetual's knowledge, these results suggest that the white sand horizon at Beharra is the highest quality known silica sand horizon in the Midwest region, which can produce a very low impurity final product that will ideally service the fast growing clear and ultra-clear glass markets of the Asia Pacific region.

Identification of Beharra White Sand Domains

With the high quality of the white horizon at Beharra now confirmed to contain SiO2 content of 99.6% and Fe2O3 content of circa 173ppm in final product, Perpetual's project team has subsequently undertaken additional analysis to identify sub-domains within Beharra white sand sequence. This analysis was undertaken by linking drill hole geochemistry with the mineralogy of the various drill holes within the Beharra white sand sequence and has clearly identified the potential for a premium horizon of white sand within the overall sequence.

The master composite sample used for the metallurgical test work was designed based on a visual appraisal of the drill samples, rather than on chemical composition, which led to the inclusion of some drill sample material that was outside what is now considered the white sand horizon at Beharra. When the individual drill hole geochemistry (assay) and lithology samples were compared to the drill hole composites, it was possible to characterise the various domains within the Beharra deposit (based on the drill samples that were selected to comprise the bulk sample) as possible standalone sub-units. It should be noted that the information contained in Figure 4 below is indicative only, with Perpetual to now undertake follow up testing and analysis of the various sub domains within the white sand sequence by way of preparation of individual bulk samples for each subdomain, which will be processed by IHC Robbins in Brisbane and analysed to confirm the chemical characteristics of the individual potential final product from each sub-domain.

Beharra Sub-Domains	Number of samples	Proportion	SiO2	Fe2O3	AL2O3	LOI
Yellow	12	2%	99.15	0.08	0.22	0.3
White Upper	305	42%	99.035	0.13	0.28	0.19
White Lower	244	34%	98.302	0.21	0.61	0.24
Grey Pod	1	0%	98.8	0.18	0.28	0.29
Grey	159	22%	93.103	0.33	4.05	1.35
Total	721	100%	97.48	0.2	1.22	0.47

Note: Table is indicative only, with all calculations based on an arithmetic average of included drill holes only

Figure 4 – Indicative analysis of the samples that were selected to comprise the bulk sample in the most recent metallurgical test work at Beharra

This analysis yielded two important observations that have potential to further increase the end product quality offered by the Beharra deposit:

1. It is apparent that the inclusion of the Grey sub-unit in the most recent metallurgical test work has negatively impacted the end results, by reducing the overall SiO2 grade commensurate with higher Fe2O3 and Al2O3 values in the final product. It is now believed that excluding the Grey sub-domain is likely to materially increase the overall quality of the white sand final product, assuming the entire white sand sequence was processed as one unit.

1. There appears to be markedly different chemical compositions and impurity profiles of the various sub-domains within the overall white sand sequence, which leads to the opportunity to conduct further analysis of the potential quality of sub-domains by way of individual subunit bulk metallurgical test work.

As described in the Mineral Resource estimation announced in March 2021 (please refer to ASX Announcement dated 9th March 2021 titled "Upgraded Mineral Resource estimate for Beharra results in a 25% increase in tonnage to 139 Mt at 98.6% SiO2") the white sand sequence at Beharra is effectively a sequence of stacked sub-domains. The expectation (derived from analysis contained in Figure 4 on the previous page, see also Figure 5 in the announcement of 9th March 2021) is that the upper domain should exhibit superior final product qualities if mined and processed as a distinct horizon. Figure 5 below shows a graphical interpretation of the current understanding of the subdomains within the white sand sequence at Beharra.

Figure 5 – Cross Section C022-C025 showing interpreted domains within the Beharra white sand sequence, and the composites used for the metallurgical testing as reported herein

With the information derived from this test program, the upper unit within the Beharra white sand sequence has potential to produce a higher-premium low iron silica sand product, ideal for the fast growing ultra-clear glass markets in Asia, including the PV-solar cell coverings market, which is undergoing significant growth in response to the rapid increase in solar energy generation globally.

Additional Test Work to Confirm Quality of sub-Domains

To confirm the presence of a higher-premium horizon at Beharra, Perpetual will now undertake additional bulk sampling, sourced from drill samples obtained in the most recent 86-hole air core drilling program at Beharra.

Drill samples are currently being transported from their storage location in Dongara, Western Australia, to the IHC Robbins laboratory in Brisbane. Once in Brisbane, representative bulk samples of the various sub-domains will be drawn from the drill samples, which will then be tested in production scale equipment to arrive at a conclusive metallurgical understanding of each subdomain. This will also generate significant volumes of final product samples for shipment to potential offtake customers.

It is Perpetual's proposition that this has a strong potential to identify the upper sub-unit as a higherpremium product, with materially lower Fe2O3 and Al2O3 than reported in the exceptional white sand test results today.

It is anticipated that results of this follow-on test work will be received early in 2QCY22, although this timeline is subject to the current high rates of testing work that is being experienced in minerals testing laboratories throughout Australia at present.

Offtake Discussions to Advance

Given these exceptional results now confirm the quality of the white sand only testing program, Perpetual will progress offtake discussions and negotiations in earnest. With the identification of possibly higher quality sub-units within the white sand sequence at Beharra, it is expected that offtake discussions may be optimized by a focus on the potential higher quality product that might be derived from the upper sub-unit, results of which will be known in 2QCY22.

Perpetual will look to update the market in coming months as these discussions progress.

Beharra Study Update

Perpetual considers that the verification of distinct sub-domains within the Beharra white sand sequence suggests strong potential for a further significant increase in final product specifications

(with potential for a further reduction in impurities). As such, the planned timeline of the Pre-Feasibility Study Update (PFSU) is being re-assessed to likely include results of the additional bulk metallurgical test work to be caried out on each of the identified sub-domains.

Shareholders will be updated in coming weeks as to the revised timetable for the delivery of the PFSU, although any decision to include this new metallurgical information is not anticipated to materially affect the overall project timeline.

About Perpetual Resources Limited

Perpetual Resources Limited (Perpetual) is a focused explorer of silica sands, aiming to produce high purity silica for export to the high growth Asian markets.

Perpetual's flagship asset, the Beharra Project (Beharra) 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.

The port of Geraldton is an established bulk material handling facility and is currently utilised for the export of bulk materials, minerals, grain and concentrates. Commodities currently exported via Geraldton Port include grains, copper concentrates, zinc concentrates, nickel concentrates, mineral sands, talc, and iron ore.

Geraldton Port – Operated by Mid-West Port Authority

Beharra comprises a granted mining lease, M70/1406, covering an effective area of 10.4km2 , and a granted exploration license, E70/5221, covering an effective land area of 56.8km2 . Extensive heavy mineral sands mining occurs to the south of Beharra, lime sands mining to the west and natural gas production to the south of the project area.

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 demonstrating compelling project economics was for Beharra was released to the ASX in March 2021, along with a Maiden Ore Reserve.

Silica Sands Market

Silica sands have an extensive range of uses, with lower purity (<99.5% SiO2) and lower priced applications including construction sand, proppant sand used in well fracturing, and foundry sand. With increasing purity (>99.5% SiO2) and price, uses include glass making including ultra-clear glass, with a main determinant of the sand's suitability for specific applications and pricing being the level of the key impurity iron oxide (Fe2O3). Significant expansion of solar PV cell manufacturing capacity globally is driving demand for silica sand with Fe2O3 content of <200ppm and lower, which is a key focus market for Beharra.

Source: IMARC Group, Report Title: "Asia Pacific Silica Sand Market: Industry Trends, Share, Size, Growth, Opportunity and Forecast 2021-2026", Report Date: February 2021

Perpetual is targeting the high growth Asia Pacific silica sand markets, where independent market assessments have calculated a 40mtpa incremental market growth opportunity through to 2026.

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

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.

COMPETENT PERSONS STATEMENTS

The information in this report that relates to exploration activities for the Beharra Project is based on information compiled and fairly represented by Mr Colin Ross Hastings, who is a Member of the Australasian Institute of Mining and Metallurgy and consultant to Perpetual Resources Limited. Mr Hastings is also a shareholder of Perpetual Resources Limited. Mr Hastings has sufficient experience relevant to the style of mineralisation and type of deposit under consideration, and to the activity which he has undertaken, to qualify as a Competent Person as defined in the 2012 Edition of the Joint Ore Reserves Committee (JORC) "Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves". Mr Hastings consents to the inclusion in this announcement of the matters based on this information in the form and context in which it appears.

The scientific and technical information in this report that relates to process metallurgy is based on information reviewed and work completed by Arno Kruger (MAusIMM), who is a metallurgical consultant and employee of IHC Robbins. The metallurgical factors including process flowsheet design and costs and assumptions for the bulk aircore sample that relate to Mineral Resources have been reviewed and accepted by Mr Kruger. Mr Kruger has sufficient experience that is relevant to the type of processing under consideration and to the activity being undertaken to qualify as a Competent Person as defined by the JORC Code 2012. Mr Kruger consents to the inclusion in the report of the matters based on his information in the form and context in which it appears.

The information in this report that relates to Mineral Resources is based on information compiled by Elizabeth Haren, a Competent Person who is a Member and Chartered Professional of the Australasian Institute of Mining and Metallurgy and a Member of the Australian Institute of Geoscientists. Elizabeth Haren is employed as an associate Principal Geologist by Snowden Mining Consultants Pty Ltd, who was engaged by Perpetual Resources Limited. Elizabeth Haren has sufficient experience that is relevant to the style of mineralisation and type of deposit under consideration and to the activity 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". Elizabeth Haren consents to the inclusion in the report of the matters based on her information in the form and context in which it appears.

The information in this report that relates to Mineral Resources is based on information compiled by Dr Andrew Scogings, a Competent Person who is a Member of the Australasian Institute of Mining and Metallurgy, a Member of the Australian Institute of Geoscientists and is a Registered Professional Geologist in Industrial Minerals. Andrew Scogings is employed as an associate Executive Consultant Geologist by Snowden Mining Consultants Pty Ltd. Dr Scogings has sufficient experience that is relevant to the style of mineralisation and type of deposit under consideration and to the activity 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". Dr Scogings consents to the inclusion in the report of the matters based on his information in the form and context in which it appears.

Appendix 2: JORC Tables 1 and 2

JORC Table 1 – Section 1: Sampling Techniques and Data

Criteria	JORC Code explanation	Commentary
Samplingtechniques	Nature and quality of sampling (e.g., cutchannels, random chips, or specificspecialised industry standard measurementtools appropriate to the minerals underinvestigation, such as downhole gammasondes, or handheld XRF instruments, etc).These examples should not be taken aslimiting the broad meaning of sampling.Include reference to measures taken to ensuresample representivity and the appropriatecalibration of any measurement tools orsystems used.Aspects of the determination of mineralisationthat are Material to the Public Report.In cases where 'industry standard' work hasbeen done this would be relatively simple(e.g., 'reverse circulation drilling was used toobtain 1 m samples from which 3 kg waspulverised to produce a 30 g charge for fireassay'). In other cases, more explanationmay be required, such as where there iscoarse gold that has inherent samplingproblems. Unusual commodities ormineralisation types (e.g., submarinenodules) may warrant disclosure of detailedinformation.	Aircore drilling and sampling referred to in thisreport includes the recently completedPhase 3 program (June 2021) and twoseparate earlier drill programs, Phase 1March 2020, and Phase 2 September 2020.June 2021: Aircore samples were collected foreach meter drilled via a cyclone fitted with arotary splitter. The splitter rotation speedwas set to deflect approximately 25% to30% of the sample drilled. This resulted inan average subsample weight of 2.7kg/m.The subsample was collected in a calicobag. The remainder of the sample wascollected in a 450mm x 900mm green plasticenviro bag. The average weight for splitterreject was about 5.6kg/m. Samples wereweighted using a spring balance.The first 0.5m from surface was not sampled inlinewithassumptionthatifminingcommenced the top 0.5m would be strippedand stockpiled to be used for rehabilitationafter mining. Samples were collected from0.5 to 1.0m, then 1.0 to 2.0m etc to the endof the hole finishing on a full meter.Representativesampleofeachintervalsampled were placed in chip trays andphotographed for reference.Drilllogsweremaintainedandincludedrecording main and secondary lithology aswell as colour, grainsize sample interval andnumber,andmoistureconditionandgroundwater intersections.March 2020: Aircore samples were collected viaa cyclone, the entire sample for each 1 mdrill interval was collected and placed in acalico sample bag. No splitting on the rigwas undertaken. The sample was labelledwith the drillhole number and sampleinterval, and a waterproof tag nominating asample number was placed in the bag andthen sealed with a tie.September2020:Aircoresampleswerecollected via a cyclone, the entire sample foreach 1 m drill interval was collected andplaced in a calico sample bag, labelled withthe drillhole number and sample interval,and weighed by a spring balance. A 1 kgsplit was taken by spear and placed in asmaller calico bag, labelled with a samplenumber.Aircore samples were collected from eachmetre drilled or part metre if the hole was notended on a full metre. For the Septemberprogram, separate samples were taken for0–0.5 m and for 0.5–1 m. Only the latter hada 1 kg split taken from it.Representative samples of each interval drilledwere placed in a chip tray for reference.Auger drilling and sampling referred to in thisreportandreportedpreviouslywereobtained from hand auguring to a maximum
		depth of 2 m.

Criteria	JORC Code explanation	Commentary
		Three auger samples were collected from eachhole being surface to 0.5 m, 0.5–1.0 m, and1.0–2.0 m. The top metre of the hole wassplit into two samples to allow a separatesample of the top 0.5 m that containsorganicmatterassociatedwithnativeground cover. If sand mining operationswere to be carried out, this top 0.5 m wouldbe stockpiled for future rehabilitation, so atthis time treating it separately is appropriate.
		The shallow auger program was carried out toobtain representative sand samples to amaximum depth of 2 m for the reasons asdescribed in the Company release of 12February 2019.
Drillingtechniques	Drill type (e.g. core, reverse circulation, openhole hammer, rotary air blast, auger,Bangka, sonic, etc) and details (e.g. corediameter, triple or standard tube, depth ofdiamond tails, face-sampling bit or othertype, whether core is oriented and if so, bywhat method, etc).	June 2021: A total of 86 aircore drillholes werecompleted to an average depth of 12.3m,with hole depths ranging from 11m to 17m.The total length drilled was 1,153m and thetotal length sampled was 1,110m (top 0.5mnot collected)The drilling was carried out by Bunbury WAbaseddrillcontractors,HornetDrillingprovided a Mantis 75 air core drill rigmounted on a 6x6 Toyota Landcruiser. Therig is fitted with a 160cfm/125psi compressorand supported by Isuzu 300 service truck.The drill string consisted of 75mm diameter
		twin tube rods fitted with an 81mm diameterair core bit. Sample collection was via acyclone fitted with a rotary splitter. All holeswere drilled vertically.September 2020: A total of 32 aircore drillholeswere completed to an average depth of 12.3m, with the deepest hole ending at 17 m.
		September 2020 aircore drilling was undertakenusing a track mounted KL170 hydraulic topdrive rig coupled to a 250 psi compressor.An 84 mm vacuum bit was fitted to a 76 mmoutside diameter twin tube rod string. Theinternal diameter was 51 mm. All holes weredrilled vertically.
		March 2020: A total of 40 aircore drillholes werecompleted for an average depth of 12.7 m,with the deepest hole ending at 20 m.
		Aircore drilling was undertaken using a trackmounted Hitachi hydraulic top drive rigcoupled to a 130 cfm/100 psi compressor. A76 mm aircore bit was fitted to 70 mm twintube rod string. All holes were drilledvertically.
		Auger drilling consisted of a manually handoperated 75 mm diameter sand auger(Dormer Sand Auger) with PVC casingutilised to reduce contamination potential asthe auger is withdrawn from the hole. Theauger was driven about 300 mm thenretracted and the sample was placed in a UVresistant plastic bag, and this continued untilthe sample interval was completed. Thesample was labelled with the drillholenumber and sample interval, then placed ina second plastic bag and sealed andremoved from site for logging and samplepreparation.

Criteria	JORC Code explanation	Commentary
Drill samplerecovery	Method of recording and assessing core andchip sample recoveries and resultsassessed.Measures taken to maximise sample recoveryand ensure representative nature of thesamples.Whether a relationship exists between samplerecovery and grade and whether samplebias may have occurred due to preferentialloss/gain of fine/coarse material.	June 2021: Aircore sub-samples (cyclone splits)andcyclonerejectswereindividuallyweighed which resulted in a average subsample weight of approximately 2.7kg and arejectweightofapproximately5.6kg,resulting in an average weight of about8.4kg.Recoverywasthereforeapproximately 100% over the entire samplelength with a theoretical weight kg/m basedon the drill hole diameter of 8.4kg/m.
		March 2020: Aircore – each sample bag wasweighed to determine the actual samplerecovery, which resulted in an averagesample weight of approximately 7.5 kg/m ofsample.
		September 2020: Aircore – each sample bagwas weighed to determine the actual samplerecovery, which resulted in an averagesample weight of approximately 4 kg/m ofsample.
		June 2021: Aircore sampling was typicallyterminated 2 m below the water table whichresulted in an estimated water table of 10-12m below surface level. Hole depthsranged from 11 m to 18m.
		The cyclone was cleaned regularly and at theend of each hole to ensure maximum andrepresentative recovery.
		March 2020: Aircore sampling was typicallyterminated on reaching the water table,which occurred around 10–12 m belowsurface level.
		September 2020: Aircore sampling was typicallyterminated 2 m below the water table. Holedepths ranged from 9 m to 17 m.
		The cyclones were cleaned regularly to ensuremaximum and representative recovery.
		For auger sampling, each sample bag wasweighed to determine the actual samplerecovery, which resulted in an averagesample weight of 7.5 kg/m of sample.
		The type of sand auger used provided a cleansample with less possibility of contaminationcompared to a flight auger.
Logging	Whether core and chip samples have beengeologically and geotechnically logged to alevel of detail to support appropriate MineralResource estimation, mining studies andmetallurgical studies.	The samples have been sufficiently loggedincluding but not limited to, estimates ofgrain size, sorting and texture, and colour.Particular attention has been taken toensure a more scientific and less subjective
	Whether logging is qualitative or quantitative innature. Core (or costean, channel, etc)photography.	approach to colour has been adoptedbecause colour (white to grey shades, andpale yellow and grey shades) is one of thetargeting features.
	The total length and percentage of the relevantintersections logged.	Chiptraysamplesforeachholewerephotographed.
Subsampling	If core, whether cut or sawn and whetherquarter, half or all core taken.	June 2021: Sub-samples were collected on sitevia the drill rig rotary splitter. Average weight
techniquesand samplepreparation	If non-core, whether riffled, tube sampled,rotary split, etc and whether sampled wet ordry.	of sub-samples was 2.7kg. These sampleswereroadtransportedtoIntertek'slaboratory located at Maddington, Perth.
	For all sample types, the nature, quality andappropriateness of the sample preparationtechnique.

Criteria	JORC Code explanation	Commentary
	Quality control procedures adopted for allsubsampling stages to maximiserepresentivity of samples.Measures taken to ensure that the sampling isrepresentative of the in-situ materialcollected, including for instance results forfield duplicate/second-half sampling.Whether sample sizes are appropriate to thegrain size of the material being sampled.	Intertek carried out a reconciliation of samplesreceived against the sample submissionform. A total of 1,233 samples werereceived. Five samples were missing butlocated in the company's storage facility atDongara.ThesewillbesubmittedtoIntertek. The samples were dried and thenre-split to collect a sub sample for assaying.The remainder of the sub-sample was rebagged to be shipped to IHC Robbins inBrisbane for commencement of furthermetallurgical testing.
		Duplicate samples were inserted into thesample batch at the rate of approximately1:21 and similarly standards at the rate ofabout 1:41.The sample size is appropriate to the grain size
		of the material being sampled.March 2020: Aircore samples were transportedto Welshpool in Perth and locked in a securestorage shed.
		Further check logging was undertaken, andrepresentative subsamples were taken forduplicate analysis. Subsampling was carriedout by spearing the samples selected andcollecting approximately 400 g of sample.The duplicates have been utilised at the rateof 1:20.
		September 2020: Duplicate 1 kg subsampleswere taken in a ratio of 1:18 at site.
		Blanks were generated from a publicly availablewashed sand product and taken by spearinga 20-bulk sample: March 2020 approx.400 gsamples; September 2020 approx. 1 kgsamples. The blanks have been utilised atthe rate of 1:20 in March and 1:18 inSeptember.
		March2020:Thepreparedsubsamples(duplicates and blanks) plus all the bulk drillsamplesweresubmittedtoNagromMetallurgical Analytical Laboratories locatedin Kelmscott in Western Perth for drying,further splitting, and pulverisation in a zirconbowl. A subsample of 100 g with a P90 -75µm particle size was utilised for analysis.
		September 2020: The 1 kg subsamples,includingduplicatesandblanks,weresubmitted to Intertek Genalysis analyticallaboratory located in Maddington in WesternPerth for drying, splitting to 100 g forpulverisation to a P90 -75 µm particle size ina zircon bowl.
		Auger samples were submitted to IntertekLaboratoryinMaddingtonfordrying,splitting, pulverisation in a zircon bowl. Asubsample of 200 g with a 75 μm particlesize is utilised for analysis.
		Allowance was made for duplication by drilling atwin auger hole located within 1 m of eachother.Threetwinholesweredrilledrepresenting 8% duplicate sample.

Criteria	JORC Code explanation	Commentary
		Thesamplepreparationmethodsareconsidered industry standard for silicasands.Recordswerekeptdescribingwhether the samples were submitted wet ordry.The laboratory sample size taken is appropriatefor the sand being targeted.
Quality ofassay dataandlaboratorytests	The nature, quality and appropriateness of theassaying and laboratory procedures usedand whether the technique is consideredpartial or total.For geophysical tools, spectrometers, handheldXRF instruments, etc, the parameters usedin determining the analysis includinginstrument make and model, reading times,calibrations factors applied and theirderivation, etc.Nature of quality control procedures adopted(e.g., standards, blanks, duplicates, externallaboratory checks) and whether acceptablelevels of accuracy (i.e. lack of bias) andprecision have been established.	June 2021: For consistency Intertek waschosen to carry out the chemical analysis onthe drill samples as they had also carried outanalysis of Phase 1 and Phase 2 drillsamples.The samples were pulverised in a zirconiumbowl to eliminate any iron contamination Thepulp grading was P90 75 microns.The test method adopted was same as usedpreviously. The samples were analysed byICP-optical (atomic) emission spectrometry(test method 4ABSi/OE901). Samples forICP analysis consisted of a four-acid digestincluding hydrofluoric, nitric, perchloric andhydrochloric acids in Teflon beakers. Silicais reported by difference.Inter-laboratory umpire analysis was carried outbysubmitting31pulpsfromIntertekGenalysis to the Bureau Veritas laboratorylocated in Canning Vale, Perth. The sampleswereanalysedbymixedaciddigest(MA100) followed by 17 elements by ICPOES (MA101) and LOI (TG001). Silica wasreported by difference. At the time of thisrelease results were pending.March 2020: All the aircore samples preparedby Nagrom were analysed at the samefacility. The assay method for multi-elementanalysis consisted of prepared samplesfused in a lithium borate flux with lithiumnitrate additive then analysed by XRF (testmethod XRF001). LOI was also carried outon each sample out at 1,000°C (test methodTGA002).Auger samples were submitted to the IntertekLaboratory in Maddington, Perth, WesternAustralia. The assay method for multielement analysis consisted of four-aciddigestincludinghydrofluoric,nitric,perchloric and hydrochloric acids in Teflonbeakers with inductively coupled plasma(ICP)-optical(atomic)emissionspectrometry finish. Silica is reported bydifference.March 2020: Inter-laboratory checking wascarried out by submitting 28 preparedrepresentative pulps (umpire samples) totheIntertekLaboratorylocatedinMaddington. The samples were analysed bytwomethods,XRF(testmethodFB1/XRF20)andICP-optical(atomic)emissionspectrometry(testmethod4ABSi/OE901). Samples for ICP analysisconsisted of a four-acid digest includinghydrofluoric,nitric,perchloricandhydrochloric acids in Teflon beakers. Silicais reported by difference.

Criteria	JORC Code explanation	Commentary
		March 2020: The same 28 samples analysed byIntertek were also analysed by ICP atNagrom' s laboratory. For analysis of Al2O3and SiO2 the samples were fused withsodium peroxide and digested in dilutehydrochloric acid and then analysed by ICP(test method ICP005). All other elementswere determined by ICP after dissolution inan acid mixture (test method ICP003).March 2020: Final analyses of the aircoresamples were carried out at Intertek'slaboratory using four-acid digest followed byICPdetermination.Thesamples usedconsisted of pulps that were prepared byNagrom.
		September 2020: Intertek's analysis method forsilica sands analysis consisted of four-aciddigestion followed by silica sands 17-element ICP/OE analysis plus LOI at1,000°C with SiO2 reported by difference.
		September2020:Inter-laboratoryumpireanalysis was carried out by submitting 20pulps, and 20 non-pulverised portions of thesame samples, from Intertek Genalysis tothe Bureau Veritas laboratory located inCanning Vale, Perth. The samples wereanalysed by mixed acid digest (MA100)followed by 17 elements by ICP-OES(MA101) and LOI (TG001). Silica wasreported by difference.
		The extensive analysis by different laboratoriesand different methods are industry standardprocedures and methods producing highlevel of confidence on the results produced.The ICP method is considered industrystandard for reporting sand grades.No geophysical tools were utilised for theprocess.
Verificationof sampling	The verification of significant intersections byeither independent or alternative company	June 2021: two twin holes were completed (T1& T2) and another six holes were located
andassaying	personnel.The use of twinned holes.Documentation of primary data, data entryprocedures, data verification, data storage(physical and electronic) protocols.Discuss any adjustment to assay data.	adjacent to March 2020 drillholes.All drilling and sampling procedures weremonitored on site by an independentgeologist on a hole-by-hole basis.All primary information was initially captured ina written log on site, data entered, importedthen validated and stored in a geologicaldatabase.March 2020: There were no twin aircore holes.Twin holes were completed for three out of the
		38 auger holes.September 2020: One of the September aircoreholes was twinned; two of the March 2020aircore holes were twinned.All drilling and sampling procedures weremonitored on site by an independent
		geologist on a hole-by-hole basis.All primary information was initially captured ina written log on site by a geologist, dataentered, imported then validated and storedin a geological database.

		March 2020: Additional check logging wascarried by an independent geologist in Perthprior to samples being submitted to Nagromfor analysis.No adjustments to assay data have beenperformed.
		External review of umpire samples reported byIntertek and Bureau Veritas was carried out.
Location ofdata points	Accuracy and quality of surveys used to locatedrill holes (collar and downhole surveys),trenches, mine workings and other locationsused in Mineral Resource estimation.Specification of the grid system used.Quality and adequacy of topographic control.	June 2021: Survey was undertaken by HayhoeSurveying from Geraldton. Survey controlwas established from SSM Don49 withredundancycheckstoSSMDon50.Equipment used was Trimble R10, RTKGPS with expected accuracies +/- 20mmhorizontal and +/- 30mm vertical, relative tothe survey control used.March 2020 & September 2020: The position ofthe aircore hole locations was determined bya Trimble R6 RTK global positioning system(GPS) in RTK mode. The survey was carriedout by Heyhoe Surveys from Geraldton.Accuracy of 0.05 m relative to SSM Dongara49.The position of the auger hole locations wasdetermined by a GPS model Garmin GPSMap 64s with an accuracy of 5 m.The CRS used was GDA94/MGA Zone 50 (exSSM DON49).The topography at the project site currentlyunder exploration is flat to gentle undulating
		terrain. Site survey (Heyhoe Surveys) haveproduced a ± 50 cm DTM across the entireproject area.
Dataspacing anddistribution	Data spacing for reporting of ExplorationResults.Whether the data spacing, and distribution issufficient to establish the degree ofgeological and grade continuity appropriatefor the Mineral Resource and Ore Reserveestimation procedure(s) and classificationsapplied.Whether sample compositing has been applied.	June 2021: main drill hole spacing was approx.200m (east-west) and line spacing ofapprox.200m(north-south).Acloserspacing of approx. 100m x 100m wasapplied to a set of holes in the centre of thedrill area. This comprised 20 holes or 35%of total holes drilled.All holes were drilled vertically, and the sampleinterval was 1m other than the first samplewhich was 0.5m with the first 0.5m notsampled.The data spacing and distribution is consideredappropriate for Mineral Resource and OreReserve estimation, being the drill patternlayout was proposed by the independentresource consultant.September 2020: The aircore drillholes werespaced on an approx. 350–600 m (eastwest) x 480 m along strike (north-south) grid.March 2020: The aircore drillholes were spacedon an approx. 350–600 m (east west) x 480m along strike (north-south) grid.September 2020: The aircore drillholes werespaced on an approx. 400m (east west) x500m along strike (north-south) grid. $ drillholes at the southern end of the drill programwere spaced at approx. 100mx 100m grid.The auger drillholes were spaced on an approx.400 m (east-west) x 800 m (north-south)

Criteria	JORC Code explanation	Commentary
		The adopted spacing at this time is sufficientbased on the geological continuity of thesand formation being tested, and sufficienttobeappliedinMineralResourceestimation.No sample compositing of holes has beenapplied.
Orientationof data inrelation togeologicalstructure	Whether the orientation of sampling achievesunbiased sampling of possible structuresand the extent to which this is known,considering the deposit type.If the relationship between the drillingorientation and the orientation of keymineralised structures is considered to haveintroduced a sampling bias, this should beassessed and reported if material.	The orientation utilised for the aircore drillingcampaign represents the entire strike lengthof the aeolian dune within the initialprospective target area and as such is notexpected to introduce any particular bias.
Samplesecurity	The measures taken to ensure sample security.	All samples have been bagged and removedfrom site and are under the care of thecompany MD, and or senior geologist and orfield sampling supervisor.
		June 2021: Subsamples for assaying weredelivered directly to Intertek's laboratory inPerth at the completion of drilling.
		Drill cyclone rejects were left on site awaitingfinal assay results and then will be moved toDongara for storage in the company'slocked and yarded shipping container.
		March 2020: Aircore samples initially stored asecure facility in Welshpool where samplereconciliationwasundertakenbeforedelivery to Nagrom Laboratory.
		Aircore samples were delivered to Nagrom inKelmscott. The laboratory carried out asample reconciliation which was auditedagainst the sample submission sheet.
		September 2020: Aircore samples and returnedsamples and pulps from Intertek Genalysisare in the Welshpool facility along with chiptrays from both the March and Septemberdrill programs.
		Auger samples were delivered to IntertekMaddington. The laboratory provided asample reconciliation report which wasaudited against the sample submissionsheet.
Audits orreviews	The results of any audits or reviews of samplingtechniques and data.	Guidance was provided by an independentconsultant, Andrew Scogings, on samplinglengths and hole spacings who carried outa site visit (February 2020) to inspect thedrilling and sampling operations.

Criteria	JORC Code explanation	Commentary
Mineraltenementand landtenurestatus	Type, reference name/number, location andownership including agreements or materialissues with third parties such as jointventures, partnerships, overriding royalties,native title interests, historical sites,wilderness or national park andenvironmental settings.	E 70/5221 comprises an effective land area of56.8km2 and was granted on 13 June 2019.A 1% royalty applies to all minerals sold fromthe Licence. The expiry date of the licence isJune 2024.

Criteria	JORC Code explanation	Commentary
	The security of the tenure held at the time ofreporting along with any knownimpediments to obtaining a licence tooperate in the area.	M 70/1406 was granted on the 18th of June 2021and comprises an effective area of 10.4 km2and covers the southern end of E70/5221that is the current area of explorationoperations. The expiry date of the lease isJune 2042.
		Both the exploration licence and the mininglease are held by Perpetual Resources PtyLtd.The southern section of the licence area whichis the current focus of exploration is covered
		by Crown Land. The licence area north of theCrown land is Freehold/Leasehold land.No impediments on a licence to operate at time
		of reporting.
Explorationdone byotherparties	Acknowledgment and appraisal of explorationby other parties.	Past exploration by others targeting heavymineral sands. Refer to ASX release dated6 February 2019, historical exploration.
Geology	Deposit type, geological setting and style ofmineralisation.	Unconsolidated Quaternary coastal sediments,part of the Perth Basin. Aeolian quartz sanddunes overlying Pleistocene limestones andpaleo-coastline.
Drill holeinformation	A summary of all information material to theunderstanding of the exploration resultsincluding a tabulation of the following	The drillhole information and results for:June 2021: refer to this release.
	information for all Material drillholes:easting and northing of the drillhole collarelevation or RL (Reduced Level – elevationabove sea level in metres) of the drillholecollar	March 2002: can be found in ASX releasedated 1 April 2020 and Appendix 2 Table10 in a release dated 22 July 2020,"MaidenMineralResourceEstimate,Beharra Silica Sand Project".
	dip and azimuth of the holedownhole length and interception depthhole length.If the exclusion of this information is justifiedon the basis that the information is notMaterial and this exclusion does not detractfrom the understanding of the report, theCompetent Person should clearly explainwhy this is the case.	September 2020: can be found in ASXrelease dated 7 December 2020 "recentAir-core Drilling Further Extends HighGrade Silica Sand at Beharra"
Dataaggregationmethods	In reporting Exploration Results, weightingaveraging techniques, maximum and/orminimum grade truncations (e.g. cutting ofhigh grades) and cut-off grades are usuallyMaterial and should be stated.	Aggregation methods included include a lowercut-off grade and results above averageweighted.Intercepts can include one assay less than the
	Where aggregate intercepts incorporate shortlengths of high-grade results and longerlengths of low-grade results, the procedureused for such aggregation should be statedand some typical examples of suchaggregations should be shown in detail.The assumptions used for any reporting ofmetal equivalent values should be clearlystated.	bottom cut-off.Iron oxide bottom cut-off applied in reportingsome results
Relationship betweenmineralisation widthsandinterceptlengths	These relationships are particularly importantin the reporting of Exploration Results.If the geometry of the mineralisation withrespect to the drillhole angle is known, itsnature should be reported.If it is not known and only the downholelengths are reported, there should be aclear statement to this effect (e.g.,'downhole length, true width not known').	All holes were drilled vertical, and widths aretherefore true.

Criteria	JORC Code explanation	Commentary
Diagrams	Appropriate maps and sections (with scales)and tabulations of intercepts should beincluded for any significant discovery beingreported These should include, but not belimited to a plan view of drillhole collarlocations and appropriate sectional views.	Refer to figures incorporated in the body of thereport and in ASX release 22 July 2020, and7 December 2020.
Balancedreporting	Where comprehensive reporting of allExploration Results is not practicable,representative reporting of both low andhigh grades and/or widths should bepracticed to avoid misleading reporting ofExploration Results.	Refer to table 11 in ASX release dated 22 July2020 and 7 December 2020 for all selectedsilica dioxide and other oxide assay results,and in Table 1 of this report.
Othersubstantiveexplorationdata	Other exploration data, if meaningful andmaterial, should be reported including (butnot limited to): geological observations;geophysical survey results; geochemicalsurvey results; bulk samples – size andmethod of treatment; metallurgical testresults; bulk density, groundwater,geotechnical and rock characteristics;potential deleterious or contaminatingsubstances.	Groundwater was intersected in all holes thatexceeded 10 m depth. Water table generallyoccurred between 10 m and 12 m.Average in-situ density (dry) determined to be1.64 t/m3 from six sites. Density locationswere hand excavated to 0.4 m deep. TheInstrument used was an Instrotek modelExplorer. Tests were performed by WesternGeotechnical & Laboratory Services.Particle size distribution (PSD) was carried outon eight representative samples on March2020 Phase 1 samples. Tests wereundertaken by Western Geotechnical &Laboratory Services.Additional PSD test were carried on Phase 2drill samples and included 66 tests thatresulted in a spread at 50% passing sizes ofapprox. 200 to 550 microns representing fineto medium grained sand.Initial metallurgical testwork was undertaken byNagrom to establish possible processmethods to provide a beneficiated product.Refer to ASX releases 30 January 2020 and24 February 2020. Additional metallurgicaltesting was undertaken by IHC Robbins inBrisbane, refer to ASX releases 29 January2021 and 22 April 2021.Petrological examination by Paul Ashleyundertaken and reported on 18 February2020.Additional air core resource drilling (Phase 2)was completed in November 2020, refer toASX release 7 December 2020 for results.A Pre-feasibility Study (PFS) was completedand release to ASX, 17 March 2021.A Mineral Resource Update was completed andreported to ASX on 9 March 2021, and aMaiden Ore Reserve estimate wascompleted and released as part of the PFS.This bulk white sand only metallurgicaltesting has been completed and is reportedwithin this announcement dated November30th, 2021.Details of sample test methods analyticalresults and final products and specificationsare contained in this release.

Criteria	JORC Code explanation	Commentary
Furtherwork	The nature and scale of planned further work(e.g., tests for lateral extensions or depthextensions or large-scale step-out drilling).Diagrams clearly highlighting the areas ofpossible extensions, including the maingeological interpretations and future drillingareas, provided this information is notcommercially sensitive.	No metallurgical methods have been reported inthis release however "white only" sandmetallurgical test work will commence shortlyon a large composite sample derived fromPhase 3 drill samples. Refer to ASX release13 August 2021.With completion of the Phase 3 June 2021 drillprogram an updated Mineral ResourceEstimate is being prepared.The metallurgical results in this report will beincorporated into a Pre-Feasibility Study that iscurrently in progress.This test work has highlighted additionalsub zones within the white sand horizon.The pending mineral resource update willinclude sub domains as reported in thisrelease.