POLYMETALS RESOURCES LTD — Capital/Financing Update 2021

Nov 21, 2021

AUGER DRILLING COMMENCES AT ALAHINÉ IN SIGUIRI BASIN, GUINEA

KEY HIGHLIGHTS

• Planned 10,000m auger drilling program commences at Alahiné gold project in the gold-rich Siguiri Basin, Guinea.
• Auger program focussed on near surface supergene gold zones previously identified by Polymetals and undrilled prospects which display significant (>100ppb) soil Au anomalies.
• Polymetals CEO and Board members to attend site early December.
• Polymetals completes the installation of water bores at Alahiné and Saourou villages.

Polymetals Resources CEO, Alex Hanly said,

"As previously reported, our Phase 2 drilling program earlier this year at Alahiné generated significant gold intercepts, providing Polymetals with numerous near surface priorities and broadertargets open at depth.

"The planned 10,000m auger program is designed to extend the high grade near surface potential defined in Phase 2, in addition to testing undrilled targets that display +100ppb gold in soils within the Alahiné licence.

"The use of relatively cheap auger drilling to vector in on gold mineralisation has been a very successful strategy deployed elsewhere in the Siguiri Basin, in particular by our peer, Predictive Discovery who has now delineated a multi-million ounce deposit which was initially identified by coincident soil anomalies and positive auger results, so we hope to replicate that success.

Additionally, we are pleased to advise that Chairman David Sproule, Technical Director Dr Christopher Johnston and myself will be conducting a site visit to Guinea in early December. We look forward to spending time with the Guinea team and also meeting with the local communities."

Polymetals Resources Ltd (ASX: POL, "Polymetals" or the "Company") is pleased to advise that it has commenced a planned 10,000m auger drilling program at the Company's Alahiné Gold Project (Alahiné), located in Guinea's Siguiri Basin, West Africa.

AUGER PROGRAM

Auger drilling will initially focus on near surface high grade supergene gold deposits. This will involve drilling of several examples of this ore type identified by the Company's Phase 2 drilling program.

The gold content of the near surface lateritic gravels is variable, but high grade values of 1m at 51.73 g/t in hole AH21ARC0941 and 1m at 96.00 g/t in hole AH21ARC0951are considered very significant. The planned targets proximate to the near surface high grade zones will be completed on a 20m x 20m grid (please refer to figure 3 for further detail).

The Company notes the successful use of auger drilling to identify gold mineralisation, with a recent case study being that of one of our peers, Predictive Discovery who has now delineated a multi-million ounces gold discovery at its Bankan Project, also in the Siguiri Basin. Predictive undertook considerable auger drilling to look beneath an expansive soil anomaly, and given the relatively low cost of auger drilling, this is a simple cost effective strategy we are seeking to replicate. The Company has engaged Sahara Natural Resources to complete the auger program. The samples are to be analysed at the SGS laboratory in Bamako, Mali.

The planned program will also test several undrilled prospects which display significant (>100ppb) soil Au anomalies. Results from the Phase 2 drilling program suggest that soil values of this magnitude and higher are indicative of near surface high grade supergene gold deposits.

Ten priority targets, adjacent to >100ppb gold in soil anomalies and nearby artisanal workings were selected for testing within this program. Testing will be completed on a 50m x 100m grid (please refer to figure 2 for further information).

Further preparatory field work and laboratory studies will be carried out to confirm primary gold mineralisation targets within this well-endowed gold exploration licence.

1Refer to ASX release dated 20 October 2021 "Additional Positive Results From Phase 2 Drilling Program"

ASX Announcement

Figure 1: Alahiné auger program commencing at hole AH21AU001.

Figure 2: Alahiné planned auger program (Figure 3 inset).

ASX Announcement

Figure 3: Planned auger program focussed on high-grade Phase 2 results (20x20 grid).

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Polymetals Resources Ltd | ACN 644 736 247 Suite 6, Level 5, 189 Kent Street, Sydney NSW 2000 www.polymetals.com | info@polymetals.com

POLITICAL UPDATE

Polymetals advises that Moussa Magassouba, the former director general of AngloGold Ashanti's (JSE: ANG) (NYSE: AU) local subsidiary has been appointed as Guinea's mines and geology minister.

Magassouba, has more than 20 years experience in the industry. Industry experts believe this appointment is reassuring for the wider mining industry and expect Magassouba will be attentive to industry stakeholders.

Polymetals is pleased to advise that despite the coup in September of this year, its operations on the ground have not been impacted, and we further note the appointment of Guinea's new Prime Minister Mohamed Beavogui to oversee the transition to a civilian-led government.

COMPANY SITE VISIT

Polymetals' CEO, Chairman and Technical Director are pleased to advise that they will be conducting a site visit to Guinea in early December.

Given the international travel restrictions in place since the inception of Covid 19, the CEO and Board have been unable to travel to site. They look forward to spending the coming weeks with the Country Manager and Exploration Team walking the Company's tenements, engaging with the local communities and building on the exploration programs planned for 2022.

COMMUNITY DEVELOPMENT PROGRAM

Polymetals is actively engaged with the local community and have built strong relationships with the local community. During October, Polymetals drilled and installed water wells within Alahiné and Saourou villages to provide accessible water to the community.

Figure 4: Saourou Village Chief drawing the first water from the village water bore.

COMPETENT PERSON STATEMENT

The information in this ASX Announcement that relates to Exploration Results is based on information compiled by Dr Christopher Johnston, a Competent Person who is a Member of the Australian Institute of Geoscientists. Dr Johnston is a Director of Polymetals Resources Ltd and 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 Johnston consents to the inclusion in this ASX Announcement of the matters based on his information in the form and context in which it appears.

This announcement was authorised for release by the Board of Polymetals Resources Ltd.

Contact information:

Alex Hanly

Chief Executive Officer alex.hanly@polymetals.com +61 (0) 448 418 725

Victoria Humphries Media & Investor Relations victoria@nwrcommunications.com.au +61 (0) 431 151 676

For more information, visit www.polymetals.com.

ABOUT POLYMETALS

Polymetals aims to become a gold production company, initially focusing on its two 100% owned exploration licences within Guinea's Siguiri Basin, totalling 112km2 .

The Siguiri Basin hosts several large active gold mining operations and is notable for its significant and widespread gold anomalism.

Polymetals' Exploration Licences, known as Alahiné (64.2km2 ) and Mansala (48.2km2 ), host extensive historic and current artisanal gold production which reinforces exploration potential of the area.

Figure 5: Proximal gold deposits relative to Polymetals Exploration Licences.

APPENDIX 2 – JORC Code (2012 Edition), Assessment and Reporting Criteria

Section 1: Sampling Techniques and Data

Criteria	Explanation	Commentary
Sampling	•Nature and quality of sampling (eg cut channels, random	The sampling described in this report
techniques	chips,orspecificspecialisedindustrystandard	refers to auger drill samples.
	measurement tools appropriate to the minerals under	The 2kg samples will be collected from
	investigation, such as down hole gamma sondes, or	composite samples across the lithology
	handheld XRF instruments, etc). These examples should not	of the hole ending in a saprolite sample
	be taken as limiting the broad meaning of sampling.	beneath lateritic surficial materials. The
	•Include reference to measures taken to ensure sample	samples will be submitted for fire assay
	representivity and the appropriate calibration of any	gold analysis at the SGS laboratory in
	measurement tools or systems used.	Bamako, Mali.
	•Aspects of the determination of mineralisation that are
	Material to the Public Report. In cases where 'industry
	standard' work has been done this would be relatively
	simple (eg 'reverse circulation drilling was used to obtain 1
	m samples from which 3 kg was pulverised to produce a 30
	g charge for fire assay'). In other cases more explanation
	may be required, such as where there is coarse gold that has
	inherent sampling problems. Unusual commodities or
	mineralisation types (eg submarine nodules) may warrant
	disclosure of detailed information.
Drilling	•Drill type (eg core, reverse circulation, open-hole hammer,	The drilling will be carried out using
techniques	rotary air blast, auger, Bangka, sonic, etc) and details	a 4WD-mounted auger rig by Sahara
	(egcore diameter, triple or standard tube, depth of diamond	Natural Resources.
	tails, face-sampling bit or other type, whether core is
	oriented and if so, by what method, etc).

ASX Announcement

Criteria	Explanation	Commentary
DrillsamplerecoveryLogging	•Method of recording and assessing core and chip samplerecoveries and results assessed.•Measures taken to maximise sample recovery and ensurerepresentative nature of the samples.•Whether a relationship exists between sample recovery andgrade and whether sample bias may have occurred due topreferential loss/gain of fine/coarse material.•Whether core and chip samples have been geologically andgeotechnically logged to a level of detail to support	Sample recovery is not assessed forpoweraugerdrillingasitisageochemical method.In general, however, recoveries are goodbecause the hole has to be cleared by thescrew-type rods in order for the drill rodsto advance downwards.None of these samples will be used in aMineralResourceestimation.
	appropriate Mineral Resource estimation, mining studiesand metallurgical studies.•Whether logging is qualitative or quantitative in nature. Core(or costean, channel, etc) photography.•The total length and percentage of the relevant intersectionslogged.	Nonetheless, allauger holes will begeologicallyloggedinaqualitativefashion.
Sub-samplingtechniquesandsamplepreparation	•If core, whether cut or sawn and whether quarter, half or allcore taken.•If non-core, whether riffled, tube sampled, rotary split, etcand whether sampled wet or dry.•Forallsampletypes,thenature,qualityandappropriateness of the sample preparation technique.•Quality control procedures adopted for all sub-samplingstages to maximise representivity of samples.•Measurestakentoensurethatthesamplingisrepresentative of the in situ material collected, including forinstance results for field duplicate/second-half sampling.•Whether sample sizes are appropriate to the grain size ofthe material being sampled.	Each 1 m interval in the compositeinterval will besubsampled using ascoop.Thesampleisconsideredsufficiently representative of the drilledmaterialinageochemicaldrillingprogram.
Quality of assaydataandlaboratory tests	•The nature, quality and appropriateness of the assaying andlaboratory procedures used and whether the technique isconsidered partial or total.•For geophysical tools, spectrometers, handheld XRFinstruments, etc, the parameters used in determining theanalysis including instrument make and model, readingtimes, calibrations factors applied and their derivation, etc.•Nature of quality control procedures adopted (eg standards,blanks, duplicates, external laboratory checks) and whetheracceptable levels of accuracy (ie lack of bias) and precisionhave been established.	The analytical method used will be anSGS fire assay method with a 5ppb Audetection limit which is appropriate for ageochemical drilling program.Standardreferencematerialsandduplicates are included in the analyticalstream by both the company and thelaboratory.Comparison of the measured value ofthe standard and the accepted valueprovides a clear measure of laboratoryperformance.Analysisofduplicatesprovidesameasureofrepeatability,butthisapproach is less reliable when coarsegold is present in the samples.
Verificationofsamplingandassaying	•The verification of significant intersections by eitherindependent or alternative company personnel.•The use of twinned holes.•Documentation of primary data, data entry procedures,data verification, data storage (physical and electronic)protocols.•Discuss any adjustment to assay data.	Hole twinning is not normally practisedwith auger drilling.
Location of datapoints	•Accuracy and quality of surveys used to locate drill holes(collar and down-hole surveys), trenches, mine workings andother locations used in Mineral Resource estimation.•Specification of the grid system used.•Quality and adequacy of topographic control.	Drill collars are initially located on theground using handheld GPS receivers.Accuracy expected is ±3m.Geological mapping of trenches, mineworkings and other locations is also doneat an accuracy of ±3m.

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Polymetals Resources Ltd | ACN 644 736 247 Suite 6, Level 5, 189 Kent Street, Sydney NSW 2000 www.polymetals.com | info@polymetals.com

Criteria	Explanation	Commentary
		DGPS pick up of all drill collars will becarried out on completion of individualdrilling programs to locate drill holes to±1m or better accuracy.In the current project, the relevant gridsystem is UTM WGS84 Zone 29 NorthernHemisphere.
Data spacing anddistribution	•Data spacing for reporting of Exploration Results.•Whether the data spacing and distribution is sufficient toestablish the degree of geological and grade continuityappropriate for the Mineral Resource and Ore Reserveestimation procedure(s) and classifications applied.•Whether sample compositing has been applied.	Auger holes will be located on a 20msquare grid surrounding previous nearsurface results.Auger holes throughout the undrilledareas of the licence will be located on a50m by 100m grid adjacent to >100pb Auin soils.This type of drilling is not appropriate forthe calculation of any Mineral Resourceestimate.
Orientationofdata in relation togeologicalstructure	•Whether the orientation of sampling achieves unbiasedsampling of possible structures and the extent to which thisis known, considering the deposit type.•If the relationship between the drilling orientation and theorientation of key mineralised structures is considered tohave introduced a sampling bias, this should be assessedand reported if material.	Orientation of drill traverses at this earlystage of exploration is consideredsatisfactory. When the structural controlson mineralization becomes clear, holeorientations may be changed.
Sample security	•The measures taken to ensure sample security.	Drill samples are returned to theCompany compound in Alahiné everyevening.One security guard is on duty at thecompound at all times.
Audits or reviews	•The results of any audits or reviews of sampling techniquesand data.	There has been no external audit orreview of the Company's techniques ordata for Phase 2.Review of sampling techniques used inPhase1drillingbytheCompany'sindependentGeologistfoundthesampling procedures to be satisfactory.

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Polymetals Resources Ltd | ACN 644 736 247 Suite 6, Level 5, 189 Kent Street, Sydney NSW 2000 www.polymetals.com | info@polymetals.com

Section 2: Reporting of Exploration Results

Criteria	JORC Code explanation	Commentary
Mineral tenement and land tenurestatus	•Type, reference name/number, locationand ownership including agreements ormaterial issues with third parties suchas joint ventures, partnerships,overriding royalties, native titleinterests, historical sites, wilderness ornational park and environmentalsettings.•The security of the tenure held at thetime of reporting along with any knownimpediments to obtaining a licence tooperate in the area.	Exploration Licence No. 22123(Alahiné Project), comprising a totalland area of 64.21 km2located atAlahiné village in Siguiri prefecture,Guinea. The licence will expire on 10April 2022.
Exploration done by other parties	•Acknowledgment and appraisal ofexploration by other parties.	The details of previous explorationand results were summarised asAnnexure B – IndependentGeologist's Report, pages 106-293 – inthe Polymetals Prospectus and canbe found on the website;https://www.polymetals.com/site/Operations/reports.
Geology	•Deposit type, geological setting and styleof mineralisation.	Primary target is Birimian/Siguiri-styleregolith-hosted oxide gold andsupergene mineralisation.
Drill hole Information	•A summary of all information materialto the understanding of the explorationresults including a tabulation of thefollowing information for all Materialdrill holes:oeasting and northing of the drillhole collaroelevation or RL (Reduced Level –elevation above sea level in metres)of the drill hole collarodip and azimuth of the holeodown hole length and interceptiondepthohole length.•If the exclusion of this information isjustified on the basis that theinformation is not Material and thisexclusion does not detract from theunderstanding of the report, theCompetent Person should clearlyexplain why this is the case.	Appropriate locality maps for theplanned holes also accompanies thisannouncement.
Data aggregation methods	•In reporting Exploration Results,weighting averaging techniques,maximum and/or minimum gradetruncations (eg cutting of high grades)and cut-off grades are usually Materialand should be stated.•Where aggregate intercepts incorporateshort lengths of high grade results and	No weighted average or truncationmethods will be used for the augerresults.

Criteria	JORC Code explanation	Commentary
	longer lengths of low grade results, theprocedure used for such aggregationshould be stated and some typicalexamples of such aggregations shouldbe shown in detail.•The assumptions used for any reportingof metal equivalent values should beclearly stated.
Relationship between mineralisationwidths and intercept lengths	•These relationships are particularlyimportant in the reporting ofExploration Results.•If the geometry of the mineralisationwith respect to the drill hole angle isknown, its nature should be reported.•If it is not known and only the downhole lengths are reported, there shouldbe a clear statement to this effect (eg'down hole length, true width notknown').	True widths cannot be estimated forthe auger drill results as theorientation of the underlyingweathered rocks is not known.
Diagrams	•Appropriate maps and sections (withscales) and tabulations of interceptsshould be included for any significantdiscovery being reported These shouldinclude, but not be limited to a planview of drill hole collar locations andappropriate sectional views.	Appropriate maps are included withinthis report.
Balanced reporting	•Where comprehensive reporting of allExploration Results is not practicable,representative reporting of both lowand high grades and/or widths shouldbe practiced avoiding misleadingreporting of Exploration Results.	The accompanying document isconsidered to represent a balancedreport.
Other substantive exploration data	•Other exploration data, if meaningfuland material, should be reportedincluding (but not limited to): geologicalobservations; geophysical surveyresults; geochemical survey results; bulksamples – size and method oftreatment; metallurgical test results;bulk density, groundwater, geotechnicaland rock characteristics; potentialdeleterious or contaminatingsubstances.	There are no other exploration datawhich is considered material to theresults reported in theannouncement.
Further work	•The nature and scale of planned furtherwork (eg tests for lateral extensions ordepth extensions or large-scale step-outdrilling).•Diagrams clearly highlighting the areasof possible extensions, including themain geological interpretations andfuture drilling areas, provided thisinformation is not commerciallysensitive.	Results of the auger program will beassessed and subsequent exploratorytesting will be planned.