PTR MINERALS LTD — Capital/Financing Update 2020

Dec 22, 2020

www.petratherm.com.au admin@petratherm.com.au

ASX ANNOUNCEMENT 23 December 2020

Mabel Creek Project Update

HIGHLIGHTS

• Infill gravity surveying over the Area 13 and Area 15 anomalies has been completed and modelling work has defined final drill collar positions.
• Drilling of these targets and follow up drill testing at Area 5 Prospect, where previous drilling identified Olympic Dam Style Copper-Gold alteration, is scheduled to get underway in Q1 2021

Petratherm Limited ("Petratherm" or "the Company") (ASX: PTR) is pleased to announce that it has completed infill gravity surveying at its Mabel Creek Project Area, northeast of Coober Pedy in South Australia. The work has allowed for detailed modelling of two high priority gravity anomalies (Areas 13 & 15) which will be drill tested for Olympic Dam Style copper gold mineralisation in early 2021 (Figures 2 and 3).

The Mabel Creek Ridge is considered prospective for Olympic Dam Style Copper-Gold mineralised systems. The Project comprises four granted tenements (EL's 6332, 6333, 6404 & 6405) totalling 2,852 km2 (Figure 1). First pass drilling in March 2020 encountered pervasive Olympic Dam Style Copper-Gold alteration at the Company's Area 5 gravity target (Figure 1, refer to PTR ASX release 30/07/20).

The Area 13 Target is a high magnitude gravity anomaly of approximately 6 milligals and is semi co-incident with a magnetic anomaly (Figure 3). 2D and 3D modelling suggeststhe dense body starts between 400 and 500 metres depth. The Area 15 Target (Figures 1 & 2) is a discrete combined magnetic and gravity anomaly which occurs on the fringe of a broad zone which shows increased magnetic intensity that may be reflecting an area of increased hydrothermal activity. Modelling of the Area 15 body suggests it starts at between 300 and 400 metres depth.

The Company is currently arranging for final heritage surveying to be performed early in the new year, with test drilling at Area 13, 15 and follow up drilling at Area 5, scheduled to occur very soon afterwards. As previously reported (PTR ASX release 25/06/20), Petratherm has secured South Australian Government (Accelerated Discovery Initiative) grant funding to a level of $182,000 to assist the drilling works. A preferred drilling contractor has been secured with drilling operations scheduled to commence, during the first quarter of 2021.

Figure 1 Aeromagnetic image over the Eastern Mabel Creek Project Tenements. Key prospects and other residual gravity anomalies (contours) shown. The light blue circles highlight zones of increased magnetic intensity which may be indicating potential hydrothermal alteration centres.

Figure 2 Area 15 gradient gravity contours overlain on gradient aeromagnetic image. Gravity contours define target centres (preferred drill collar positions shown - yellow dots) partially overlapping magnetic features. Depth to top of body is modelled at approximately 400 metres.

Figure 3 Area 13 Target Bouguer Gravity Anomaly (Left) and Residual Gravity Contours overlying a VRMI Magnetic Image (Right). Area 13 is a strong gravity target of 6 milligals and has been modelled to start at approximately 400 to 500 metres depth. Proposed drill collar positions shown will test residual gravity target centres partially overlapping magnetic features.

For further information, please contact:

Peter Reid, Exploration Manager, Tel: (08) 8133 5000

This ASX announcement has been approved by Petratherm's Board of Directors and authorised for release by Petratherm's Chairman Derek Carter

Competent Persons Statement: The information in this report that relates to Exploration Targets and Exploration Results is based on information compiled by Mr Peter Reid, who is a Competent Person, and a Member of the Australian Institute of Geoscientists. Mr Reid is not aware of any new information or data that materially affects the historical exploration results included in this report. Mr Reid is an employee of Petratherm Ltd. Mr Reid 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'. Mr Reid consents to the inclusion in the report of the matters based on his information in the form and context in which it appears.

EL's 6332, 6333, 6404 & 6405 (Mabel Creek Project) JORC Table 1

Section 1 Sampling Techniques and Data

(Criteria in this section apply to all succeeding sections.)

Criteria	JORC Code explanation	Commentary
Samplingtechniques	•Nature and quality of sampling (eg cut channels,random chips, or specific specialised industrystandard measurement tools appropriate to theminerals under investigation, such as down holegamma sondes, or handheld XRF instruments, etc.).These examples should not be taken as limiting thebroad meaning of sampling.•Include reference to measures taken to ensuresample representivity and the appropriate calibrationof any measurement tools or systems used.•Aspects of the determination of mineralisation that areMaterial to the Public Report.•In cases where 'industry standard' work has beendone this would be relatively simple (eg 'reversecirculation drilling was used to obtain 1 m samplesfrom which 3 kg was pulverised to produce a 30 gcharge for fire assay'). In other cases moreexplanation may be required, such as where there iscoarse Au that has inherent sampling problems.Unusual commodities or mineralisation types (egsubmarine nodules) may warrant disclosure ofdetailed information.	•Not applicable - refer PTRASX release 12/05/20 forprevious JORC Table 1drilling details.
Drillingtechniques	•Drill type (eg core, reverse circulation, open-holehammer, rotary air blast, auger, Bangka, sonic, etc.)and details (eg core diameter, triple or standard tube,depth of diamond tails, face-sampling bit or othertype, whether core is oriented and if so, by whatmethod, etc.).	•Not applicable - refer PTRASX release 12/05/20 forprevious JORC Table 1drilling details.
Drill samplerecovery	•Method of recording and assessing core and chipsample recoveries and results assessed.•Measures taken to maximise sample recovery andensure representative nature of the samples.•Whether a relationship exists between samplerecovery and grade and whether sample bias mayhave occurred due to preferential loss/gain offine/coarse material.	•Not applicable - refer PTRASX release 12/05/20 forprevious JORC Table 1drilling details.
Logging	•Whether core and chip samples have beengeologically and geotechnically logged to a level ofdetail to support appropriate Mineral Resourceestimation, mining studies and metallurgical studies.•Whether logging is qualitative or quantitative innature. Core (or costean, channel, etc.) photography.•The total length and percentage of the relevantintersections logged.	•Not applicable - refer PTRASX release 12/05/20 forprevious JORC Table 1drilling details.
Subsamplingtechniquesand samplepreparation	•If core, whether cut or sawn and whether quarter, halfor all core taken.•If non-core, whether riffled, tube sampled, rotary split,etc. and whether sampled wet or dry.•For all sample types, the nature, quality andappropriateness of the sample preparation technique.•Quality control procedures adopted for all sub-	•Not applicable - refer PTRASX release 12/05/20 forprevious JORC Table 1drilling details.

Criteria	JORC Code explanation	Commentary
	sampling stages to maximise representivity ofsamples.•Measures taken to ensure that the sampling isrepresentative of the in situ material collected,including for instance results for fieldduplicate/second-half sampling.•Whether sample sizes are appropriate to the grainsize of the material being sampled.
Quality ofassay dataandlaboratorytests	•The nature, quality and appropriateness of theassaying and laboratory procedures used andwhether the technique is considered partial or total.•For geophysical tools, spectrometers, handheld XRFinstruments, etc., the parameters used in determiningthe analysis including instrument make and model,reading times, calibrations factors applied and theirderivation, etc.•Nature of quality control procedures adopted (egstandards, blanks, duplicates, external laboratorychecks) and whether acceptable levels of accuracy (ielack of bias) and precision have been established.	•Not applicable - refer PTRASX release 12/05/20 forprevious JORC Table 1drilling details.
Verificationof samplingandassaying	•The verification of significant intersections by eitherindependent or alternative company personnel.•The use of twinned holes.•Documentation of primary data, data entryprocedures, data verification, data storage (physicaland electronic) protocols.	•Not applicable - refer PTRASX release 12/05/20 forprevious JORC Table 1drilling details.
Location ofdata points	•Discuss any adjustment to assay data.•Accuracy and quality of surveys used to locate drillholes (collar and down-hole surveys), trenches, mineworkings and other locations used in MineralResource estimation.•Specification of the grid system used.•Quality and adequacy of topographic control.	•All maps and locations arein UTM grid (GDA94 Z53)and have been measuredby hand-held GPS with alateral accuracy of ±4metres and a verticalaccuracy ±5m.•Phase 1 Gravity — TwoAtlas GeophysicsGravity/GNSS controlstations; 201909500001"Mt Barry South" and201909500002 "Mt BarryNorth" were used tocontrol all fieldobservations throughoutthe gravity survey.•Phase 2 and 3 gravity —Daishat GPS/Gravity basestation; 1337 "OolgelimaNorth" was used to controlall field observationsthroughout the gravitysurvey.•Gravity control for all basestations was establishedvia multiple ABA tie loopswith existing Australian

Criteria	JORC Code explanation	Commentary
		Fundamental GravityNetwork (AFGN) controlstation 1992932018"Airstrip Terminal –Coober Pedy SA".•GPS control for the basestations was establishedthrough multiple staticsessions and GeoscienceAustralia's AUSPOSprocessing systems with x,y and z accuracy of 5-10mm.
Dataspacing anddistribution	•Data spacing for reporting of Exploration Results.•Whether the data spacing and distribution is sufficientto establish the degree of geological and gradecontinuity appropriate for the Mineral Resource andOre Reserve estimation procedure(s) andclassifications applied.•Whether sample compositing has been applied.	•Ground gravity surveystations were collected on250 x 250m, 250 x 500m,500 x 500m 500 x 1000m,and 1000 x 2000m gridconfigurations.•No drilling or sampling wasundertaken althoughlimited historical drillingexists.•No mineralisation wasencountered in the historicdrilling and therefore thisinformation is notconsidered Material.
Orientationof data inrelation togeologicalstructure	•Whether the orientation of sampling achievesunbiased sampling of possible structures and theextent to which this is known, considering the deposittype.•If the relationship between the drilling orientation andthe orientation of key mineralised structures isconsidered to have introduced a sampling bias, thisshould be assessed and reported if material.	•Not applicable, no drillingor sampling wasundertaken
Samplesecurity	•The measures taken to ensure sample security.	•Not applicable
Audits orreviews	•The results of any audits or reviews of samplingtechniques and data.	•No sampling has beenundertaken by Petrathermalthough limited historicsampling exists.•Additional details fromhistoric drilling areunknown.

Section 2 Reporting of Exploration Results

(Criteria listed in the preceding section also apply to this section.)

Mineral••Type, reference name/number, location andELs 6332 and 6333 wasownership including agreements or material issuesgranted to Petrathermtenementwith third parties such as joint ventures, partnerships,and landoverriding royalties, native title interests, historical	Criteria	JORC Code explanation	Commentary
statussettings.••The security of the tenure held at the time of reporting	tenure	sites, wilderness or national park and environmental	(100%) on the 29/03/2019.EL's 6404 and 6405 weregranted to Petratherm(100%) on the 12/09/2019.ELs 6332, 6333, 6404 and

Criteria	JORC Code explanation	Commentary
	along with any known impediments to obtaining alicence to operate in the area.	6405 are locatedapproximately 50km northand east of Coober Pedyoverlapping portions of theMt Willoughby, MabelCreek, Mt Clarence, MountBarry, Nilpinna and AnnaCreek Pastoral Stations.•The southern half of thetenement group overlapsthe Woomera ProhibitedArea (Green Zone).•Native Title Claims:SCD2012/002 Arabana &SCD2011/001 AntakirinjaMatu-Yankunytjatjara.•The tenement is in goodstanding and no knownimpediments exist.
Explorationdone byother parties	•Acknowledgment and appraisal of exploration byother parties.	•Previous exploration workincludes;Airborne Geophysics:Magnetics, Radiometricsand MCR.Ground Geophysics:Magnetics and Gravity.Exploration Drilling: 2Rotary, 2 RotaryPercussion, 5 ReverseCirculation.
Geology	•Deposit type, geological setting and style ofmineralisation.	•Petratherm is primarilyexploring for Fe-OxideCopper-Gold mineralisation(e.g. Olympic Dam-style)within the Peake & DenisonDomain of the GawlerCraton, South Australia.
Drill holeInformation	•A summary of all information material to theunderstanding of the exploration results including atabulation of the following information for all Materialdrill holes:easting and northing of the drill hole collaroelevation or RL (Reduced Level – elevation aboveosea level in metres) of the drill hole collardip and azimuth of the holeodown hole length and interception depthohole length.o•If the exclusion of this information is justified on thebasis that the information is not Material and thisexclusion does not detract from the understanding ofthe report, the Competent Person should clearlyexplain why this is the case.	•No drilling has beenundertaken by Petrathermfor this survey althoughlimited historical drillingexists.•Additional details fromhistoric drilling areunknown.
Dataaggregationmethods	•In reporting Exploration Results, weighting averagingtechniques, maximum and/or minimum gradetruncations (eg cutting of high grades) and cut-offgrades are usually Material and should be stated.•Where aggregate intercepts incorporate short lengths	•No drilling has beenundertaken by Petratherm.

Criteria	JORC Code explanation	Commentary
	of high grade results and longer lengths of low graderesults, the procedure used for such aggregationshould be stated and some typical examples of suchaggregations should be shown in detail.•The assumptions used for any reporting of metalequivalent values should be clearly stated.
Relationshipbetweenmineralisation widthsandinterceptlengths	•These relationships are particularly important in thereporting of Exploration Results.•If the geometry of the mineralisation with respect tothe drill hole angle is known, its nature should bereported.•If it is not known and only the down hole lengths arereported, there should be a clear statement to thiseffect (eg 'down hole length, true width not known').	•No drilling has beenundertaken by Petratherm.
Diagrams	•Appropriate maps and sections (with scales) andtabulations of intercepts should be included for anysignificant discovery being reported These shouldinclude, but not be limited to a plan view of drill holecollar locations and appropriate sectional views.	•No drilling has beenundertaken by Petratherm.
Balancedreporting	•Where comprehensive reporting of all ExplorationResults is not practicable, representative reporting ofboth low and high grades and/or widths should bepracticed to avoid misleading reporting of ExplorationResults.	•No drilling has beenundertaken by Petratherm.
Othersubstantiveexplorationdata	•Other exploration data, if meaningful and material,should be reported including (but not limited to):geological observations; geophysical survey results;geochemical survey results; bulk samples – size andmethod of treatment; metallurgical test results; bulkdensity, groundwater, geotechnical and rockcharacteristics; potential deleterious or contaminatingsubstances.	•Ground gravity surveyswere conducted over ELs6332, 6333, 6404 and6405 by Atlas Geophysicsand Daishsat GeodeticSurveyors.•The combined surveyscomprise 2590 gravitystations, on 250 x 250m,250 x 500m, 500 x 500m500 x 1000m, and 1000 x2000m grid configurations.•Gravity control wasestablished via an existingAFGN control station.•Data was acquired usingScintrex CG- AutogravGravity Meters, GNSSRover and Base GPSReceivers.
Furtherwork	•The nature and scale of planned further work (egtests for lateral extensions or depth extensions orlarge-scale step-out drilling).•Diagrams clearly highlighting the areas of possibleextensions, including the main geologicalinterpretations and future drilling areas, provided thisinformation is not commercially sensitive.	•A range of explorationtechniques are beingconsidered to progressexploration includingdrilling.