POLARX LIMITED — Capital/Financing Update 2021

Mar 22, 2021

23 March 2021

==> picture [171 x 74] intentionally omitted <==

PolarX Converts Option to Acquire Humboldt Range Gold-Silver Project in Nevada, USA

Decision to exercise option follows extensive due diligence, including validation samples grading up to 37 g/t gold and 1590 g/t silver; Field work to start next month

Key Points

• Humboldt Range is situated between two large active precious metal mining operations: the Florida Canyon Mine (>5Moz gold) and the Rochester Mine (>400Moz silver + >3Moz gold) and contains numerous small-scale historical mine workings, dormant since 1927.

• Under the option exercise agreement, PolarX will pay US$175,000 (in stages), issue 5M shares to the vendor and pay the owner a 2.5% NSR upon production with US$10,000 monthly advance royalty payments from September 2022.

• Field work set to start next month; When combined with the field season at PolarX’s Alaska Range project, the Humboldt acquisition means the Company will have news-flow all yearround while leveraging its existing team and equipment in North America.

• Humboldt has not been exposed to extensive exploration using modern techniques.

==> picture [489 x 268] intentionally omitted <==

Figure 1 3D view of the Black Canyon claims situated in the hills just 2km behind the operating Florida Canyon gold mine.

PolarX Limited (ASX: PXX, “PolarX” or “the Company”) is pleased to advise that following completion of technical and legal due diligence, it has given formal notice to exercise its option to acquire a Mine Lease Agreement over the highly prospective Humboldt Range Gold-Silver Project in Nevada, USA.

PolarX Limited | +61 8 6465 5500 | +61 8 6465 5599 | www.polarx.com.au Suite 1, 245 Churchill Avenue, Subiaco, Western Australia 6008

Page 1

==> picture [114 x 50] intentionally omitted <==

Humboldt Range contains geology consistent with bonanza-style epithermal gold-silver mineralisation and bulk mineable epithermal gold-silver mineralisation, both of which are well known in Nevada.

The recently expanded Humboldt Range Project now comprises 272 lode mining claims in Nevada in two claim groups: Black Canyon and Fourth of July. It is situated between two large-scale active mines: the Florida Canyon gold mine and the Rochester silver-gold mine (see Figures 1 and 2).

The claims have been owned by the same family since the 1950’s and only limited exploration has been reported. Access to the project is straightforward via roads off the I-80 Interstate Highway, which lies less than 15km to the west of the claims (Figure 2).

Widespread narrow vein mineralisation with visible gold occurs within the claims and was mined via numerous adits and underground workings between 1865 and the 1927. Mineralisation occurs in swarms of high-grade epithermal quartz veins of varying thickness (reported from 1cm to 3m), either as isolated veins or as broad zones of sheeted/anastomosing veins within zones of intensely altered and mineralised host rocks.

PolarX will shortly commence an evaluation of the length and continuity of the vein sets to assess potential high-grade widths and tonnages, while evaluating whether the altered rock between the veins contains economically viable grades of gold and silver amenable to bulk mining.

Completion and Acquisition Terms

Completion of the acquisition is expected to occur on or before 6 April 2021, with the option exercise fee payable to the vendor on completion comprising US$35,000 cash and the issue of 5m fully paid ordinary PolarX shares (escrowed for 2-years).

Following completion, the Company will also be required to make the following additional payments to the vendor:

1. US$70,000 on the first anniversary of the execution date of the option agreement. 2. US$70,000 on the second anniversary of the execution date of the option agreement.

The Company will also assume the following obligations under the Mine Lease Agreement with the Owner:

1. payment of 2022 claim fees (by 1 Sept 2021) as an advance against future production royalties;

2. monthly payment of US$10,000 from September 2022 as advance against future production royalties; and

3. royalty on gold production of 2.5% NSR (3.75% NSR if mined grades > 15.6g/t Au).

PolarX Limited | +61 8 6465 5500 | +61 8 6465 5599 | www.polarx.com.au Suite 1, 245 Churchill Avenue, Subiaco, Western Australia 6008

Page 2

==> picture [114 x 50] intentionally omitted <==

==> picture [375 x 494] intentionally omitted <==

Figure 2 Location map depicting Black Canyon and Fourth of July Claim Blocks, and proximal large-scale gold-silver mining operations.

Executive Chairman Remuneration

Acquisition of the Humboldt Range Project marks a significant increase in the activities of the Company. PolarX has accordingly formalised a consulting agreement with its Executive Chairman, Mark Bojanjac, to reflect a full-time executive role. The material terms of the agreement are:

• Annual consulting fee of A$270,000 (inclusive of any applicable superannuation obligations); and

• 3-month termination notice period.

PolarX Limited | +61 8 6465 5500 | +61 8 6465 5599 | www.polarx.com.au Suite 1, 245 Churchill Avenue, Subiaco, Western Australia 6008

Page 3

==> picture [114 x 50] intentionally omitted <==

Authorised for release by Dr. Frazer Tabeart, Managing Director.

For further information please contact:

Peter Nesveda, International Investor Relations and Corporate Affairs on +61 412 357 375

Or contact the Company directly on +61 8 6465 5500

Media

For further information, please contact: Paul Armstrong Read Corporate +61 8 9388 1474

ADDITIONAL DISCLOSURE

The Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves (the ‘JORC Code’) sets out minimum standards, recommendations and guidelines for Public Reporting in Australasia of Exploration Results, Mineral Resources and Ore Reserves. The information contained in this announcement has been presented in accordance with the JORC Code.

Information in this announcement relating to Exploration results is based on information compiled by Dr Frazer Tabeart (an employee and shareholder of PolarX Limited), who is a member of The Australian Institute of Geoscientists. Dr Tabeart has sufficient experience which is relevant to the style of mineralisation and type of deposit under consideration and to the activity which he is undertaking to qualify as a Competent Person under the 2012 Edition of the Australasian Code for reporting of Exploration Results, Mineral Resources and Ore Reserves. Dr Tabeart consents to the inclusion of the data in the form and context in which it appears.

There is information in this announcement relating to exploration results which were previously announced on 11 January, 2 February and 3 March 2021. Other than as disclosed in those announcements, the Company confirms that it is not aware of any new information or data that materially affects the information included in the original market announcements, and that all material assumptions and technical parameters have not materially changed. The Company also confirms that the form and context in which the Competent Person’s findings are presented have not been materially modified from the original market announcements.

Forward Looking Statements:

Any forward-looking information contained in this news release is made as of the date of this news release. Except as required under applicable securities legislation, PolarX does not intend, and does not assume any obligation, to update this forward-looking information. Any forward-looking information contained in this news release is based on numerous assumptions and is subject to all of the risks and uncertainties inherent in the Company’s business, including risks inherent in resource exploration and development. As a result, actual results may vary materially from those described in the forward-looking information. Readers are cautioned not to place undue reliance on forwardlooking information due to the inherent uncertainty thereof.

PolarX Limited | +61 8 6465 5500 | +61 8 6465 5599 | www.polarx.com.au Suite 1, 245 Churchill Avenue, Subiaco, Western Australia 6008

Page 4