PTR MINERALS LTD — Capital/Financing Update 2020

Dec 2, 2020

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PETRATHERM LIMITED

ACN 106 806 884

ASX: PTR

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

ASX ANNOUNCEMENT 3 December 2020

Petratherm acquires large tenure position in the Gawler Craton of South Australia prospective for Gold and Copper

HIGHLIGHTS

• Large 934 km[2] area acquired over the north eastern Gawler Craton, prospective for high-grade gold and Olympic Dam Style Copper and Gold

• Historical Target 14 Gold Prospect is open in all directions and offers an immediate drill ready target

• Company proposing to undertake a shallow RAB drill gold geochemical exploration program to overcome masking by transported cover.

• Several regional gravity anomalies identified on the eastern, down faulted side of the tenement, prospective for Olympic Dam Style Copper and Gold mineralisation.

Petratherm Limited (“Petratherm” or “the Company”) (ASX: PTR) is pleased to announce that it has secured a large exploration licence application area covering 934 km[2] (ELA 2020/0194 – “Gina Project”) over a portion of the North Eastern Gawler Craton of South Australia. The new tenement partly co-joins the Company’s existing Comet Gold Project, increasing its tenure position in the resurgent gold prospective province and extends eastwards over downfaulted zones that may be prospective for Olympic Dam Style copper and gold mineralisation (Figure’s 1 and 3).

Gold Potential

The western half of tenement application area covers a portion of the Archaean Mulgathing Complex, which is the host of numerous significant gold occurrences such as the Challenger gold deposit (1.1 Moz @ 5.1 g/t Au) and the Aurora Tank gold discovery (i.e. MEU ASX release 04/11/20).

The area includes the Target 14 Prospect (Figures 1 & 2) which was discovered in 2002 by Redport Limited during a regional reconnaissance RAB drilling program targeting a shear/fault structure interpreted from the regional aeromagnetic data. The prospect area is blanketed by sandy transported cover and no gold anomalism was identified from previous calcrete soil geochemical sampling. The drilling comprised vertical holes at 100 metre spacing along two short RAB drill traverses 1200 metres apart (Figure 2). On the south western line the last 2 eastern holes recorded

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highly anomalous gold (Figure 2) with drill hole RED 16, at the end of the southern drilling traverse, intersecting 9 m @ 105 ppb Au from 32 metres to the end of hole (EOH) at 41 metres (refer to Appendix 1).

These drill intercepts are consistent with the magnitude of gold anomalism observed on the immediate fringe or in some weathered/leached portions of other primary gold occurrences found elsewhere in the northern Gawler Craton. The anomalous gold zone is open in all directions and follow up step out and infill drill testing is proposed.

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PROMINENT HILL
(OZ Minerals,
AURORA TANK Fe-Cu-Au )
178 Mt @ 1.1% Cu,
(MARMOTA, Au )
0.7 g/t Au, 2.7 g/t Ag
Comet (Au)
Target 14 (Au)
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Figure 1 : Aeromagnetic image over the north eastern Gawler Craton showing the Gina Tenement Application Area, Petratherm’s Comet tenement and mines/mineral prospects

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Figure 2 Target 14 Prospect – Historical vertical RAB drill collars and anomalous gold drill intercepts overlain on an aeromagnetic image. Note drill holes RED 15 & 16 ended in anomalous gold and is open at depth and to the southeast.

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Iron Oxide Copper Gold (IOCG) Potential

On the eastern side of the new tenement application area, the basement terrain is down faulted by a series of major northwest trending faults forming a sub-basin, with the opposite, eastern up faulted edge defined by the Mt Woods Inlier (Figure 3). Perched on the eastern up faulted edge of the sub-basin, the world-class Prominent Hill Cu-Au deposit occurs (178 Mt @ 1.1% Cu, 0.7 g/t Au, 2.7 g/t Ag).

Petratherm postulate that these major extensional fault systems, and associated major transfer faults and splays, are critical to the localisation of IOCG style mineralisation and that the western edge of this faulted sub-basin may also be prospective for IOCG’s. A number of regional gravity anomalies are evident from the open file South Australian Geological Survey data in the new application area (Figure 3) and warrant further investigation.

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Fault
Mt Woods Inlier
(up faulted block)
Sub- Basin
(down faulted block)
Fault
Prominent Hill
Mine (Cu-Au)
Gravity
Anomalies
Mulgathing Complex Fault
(up faulted block)
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Figure 3 Residual Gravity Image of the eastern “Gina” Application and Prominent Hill Mine Area. Note schematic fault overlay (dashed lines) highlighting prominent NW trending down faulted zone defining a sub-basin. On the eastern faulted basin edge the Prominent Hill mine occurs and the Company aims to explore the opposing western faulted side where several regional gravity anomalies are evident.

Next Steps

Upon granting of the tenement (expected in April/May 2021), a priority for the Company, will be the follow up drill testing of the Target 14 Gold Prospect. The Company has an existing Native Title Mining Agreement in place with the Native Title Owners and anticipates a future drilling approval could be achieved quickly, soon after grant of the licence.

One of the key challenges for mineral explorers in the region has been the sandy transported cover masking any mineralisation which may occur in the older basement rock below. To overcome this the Company is proposing to undertake a regional geochemical sampling program using a light RAB drill rig mounted on a 4WD Toyota ute to drill

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through the transported cover and sample directly the top of the highly weathered bedrock (saprolite) which occurs in most areas at 5 to 10 metres depth. The top of saprolite zone typically contains highly elevated remnant gold anomalism above any primary gold mineralisation in the fresh bedrock below.

For the eastern IOCG prospective areas the Company proposes as a first step to undertake infill gravity surveying of anomalous gravity areas to allow modelling and characterisation of prospective geophysical targets for later drill testing.

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.

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Appendix 1: Summary Table of Historic Target 14 Prospect Drill Hole Details

Table 1A: Summary of Significant Drill Intervals – Target 14 Prospect

Hole ID	Prospect	From (metres)	To (metres)	Interval (metres)	Au (ppb)
RED 15	Target 14	40	42	2	62
RED 16	Target 14	32	41	9	105

Table 1B: Drill Collar locations for Target 14 Prospect.

Hole ID	Prospect	East	North	Collar dip (Deg)	Collar azimuth (Deg)	End of hole depth (Metres)
RED 7	Target 14	444010	6704130	90	0	60
RED 8	Target 14	443950	6704210	90	0	54
RED 9	Target 14	443895	6704295	90	0	54
RED 10	Target 14	443835	6704380	90	0	56
RED 11	Target 14	443780	6704460	90	0	45
RED 12	Target 14	442890	6703600	90	0	49
RED 13	Target 14	442970	6703545	90	0	30
RED 14	Target 14	443050	6703490	90	0	36
RED 15	Target 14	443150	6703435	90	0	42
RED 16	Target 14	443230	6703380	90	0	41

Notes for Tables 1A and 1B

1. Down hole lengths reported, and the true width of intercepts is not yet known

2. Significant results are shown for intercepts

3. Coordinates are in GDA 94 Z53

4. No elevation numbers were recorded

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ELA 2020/0194 (Gina Project) JORC Table 1

Section 1 Sampling Techniques and Data

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

Criteria	JORC Code explanation	Commentary	Commentary
Sampling	• Nature and quality of sampling (eg cut channels,	•	No drilling or sampling has
techniques	random chips, or specific specialised industry standard measurement tools appropriate to the		been undertaken by Petratherm, although
	minerals under investigation, such as down hole		limited historical drilling
	gamma sondes, or handheld XRF instruments, etc.).		and sampling exists.
	These examples should not be taken as limiting the	•	Historical sampling was
	broad meaning of sampling.		undertaken using standard
	• Include reference to measures taken to ensure		industry practices.
	sample representivity and the appropriate calibration	•	Historical drill hole co-
	of any measurement tools or systems used.		ordinates are in UTM grid
	• Aspects of the determination of mineralisation that are		(GDA94 Z53) and have
	Material to the Public Report.		been measured by hand-
	• In cases where ‘industry standard’ work has been		held GPS with a lateral
	done this would be relatively simple (eg ‘reverse		accuracy of ±4 metres and
	circulation drilling was used to obtain 1 m samples		a vertical accuracy of ±5
	from which 3 kg was pulverised to produce a 30 g		metres.
	charge for fire assay’). In other cases more	•	Mineralised intersections
	explanation may be required, such as where there is		were encountered but
	coarse Au that has inherent sampling problems.		have not been reported as
	Unusual commodities or mineralisation types (eg		true widths due to
	submarine nodules) may warrant disclosure of		insufficient data spacing
	detailed information.		and orientation
			relationshipknowledge.
Drilling	• Drill type (eg core, reverse circulation, open-hole	•	Historic exploration drilling
techniques	hammer, rotary air blast, auger, Bangka, sonic, etc.) and details (eg core diameter, triple or standard tube,		includes Rotary Air: RED07 - 16 (Redport, 2002).
	depth of diamond tails, face-sampling bit or other	•	Additional details from
	type, whether core is oriented and if so, by what		historic drilling are
	_method, etc.). _		unknown.
Drill sample	• Method of recording and assessing core and chip	•	No drilling has been
recovery	sample recoveries and results assessed. • Measures taken to maximise sample recovery and		undertaken by Petratherm although limited historical
	ensure representative nature of the samples.		drilling exists.
	• Whether a relationship exists between sample	•	Additional details from
	recovery and grade and whether sample bias may		historic drilling are
	have occurred due to preferential loss/gain of		unknown.
	fine/coarse material.
Logging	• Whether core and chip samples have been	•	No drilling has been
	geologically and geotechnically logged to a level of		undertaken by Petratherm
	detail to support appropriate Mineral Resource		although limited historical
	estimation, mining studies and metallurgical studies.		drilling exists.
	• Whether logging is qualitative or quantitative in	•	Additional details from
	nature. Core (or costean, channel, etc.) photography.		historic drilling are
	• The total length and percentage of the relevant		unknown.
	_intersections logged. _
Sub-	• If core, whether cut or sawn and whether quarter, half	•	No drilling has been
sampling techniques and sample preparation	or 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 and appropriateness of the sample preparation technique.	•	undertaken by Petratherm although limited historical drilling exists. Additional details from historic drilling are

Criteria	JORC Code explanation	Commentary	Commentary
	• Quality control procedures adopted for all sub-		unknown.
	sampling stages to maximise representivity of
	samples.
	• Measures taken to ensure that the sampling is
	representative of the in situ material collected,
	including for instance results for field
	duplicate/second-half sampling.
	• Whether sample sizes are appropriate to the grain
	_size of the material being sampled. _
Quality of	• The nature, quality and appropriateness of the	•	No drilling has been
assay data and laboratory	assaying and laboratory procedures used and whether the technique is considered partial or total. • For geophysical tools, spectrometers, handheld XRF instruments, etc., the parameters used in determining	•	undertaken by Petratherm although limited historical drilling exists. Additional details from
tests	the analysis including instrument make and model,		historic drilling are
	reading times, calibrations factors applied and their		unknown.
	derivation, etc.
	• Nature of quality control procedures adopted (eg
	standards, blanks, duplicates, external laboratory
	checks) and whether acceptable levels of accuracy (ie
	_lack of bias) and precision have been established. _
Verification	• The verification of significant intersections by either	•	No drilling has been
of sampling and assaying	independent or alternative company personnel. • The use of twinned holes. • Documentation of primary data, data entry procedures, data verification, data storage (physical	•	undertaken by Petratherm although limited historical drilling exists. Additional details from
	and electronic) protocols.		historic drilling are
	• _Discuss any adjustment to assay data. _		unknown.
Location of	• Accuracy and quality of surveys used to locate drill	•	All maps and locations are
data points	holes (collar and down-hole surveys), trenches, mine workings and other locations used in Mineral		in UTM grid (GDA94 Z53) and have been measured
	Resource estimation.		by hand-held GPS with a
	• Specification of the grid system used.		lateral accuracy of ±4
	• Quality and adequacy of topographic control.		metres and a vertical
			accuracy±5m.
Data	• Data spacing for reporting of Exploration Results.	•	No drilling or sampling has
spacing and distribution	• Whether the data spacing and distribution is sufficient to establish the degree of geological and grade continuity appropriate for the Mineral Resource and		been undertaken by Petratherm although limited historical drilling
	Ore Reserve estimation procedure(s) and		exists.
	classifications applied.	•	Data spacing is insufficient
	• Whether sample compositing has been applied.		to establish the degree of
			geological and grade
			continuity required for a
			Mineral Resource
			estimation.
Orientation	• Whether the orientation of sampling achieves	•	No drilling has been
of data in relation to geological	unbiased sampling of possible structures and the extent to which this is known, considering the deposit type. • If the relationship between the drilling orientation and	•	undertaken by Petratherm although limited historical drilling exists. The relationship between
structure	the orientation of key mineralised structures is		the drilling orientation and
	considered to have introduced a sampling bias, this		the orientation of key
	should be assessed and reported if material.		mineralised structures has
			not beenconfirmed.

Criteria	JORC Code explanation	Commentary	Commentary
Sample	• The measures taken to ensure sample security.	•	No sampling has been
security			undertaken by Petratherm although limited historic
			sampling exists.
		•	Additional details from
			historic drilling are
			unknown.
Audits or	• The results of any audits or reviews of sampling	•	No sampling has been
reviews	techniques and data.		undertaken by Petratherm
			although limited historic
			sampling exists.
		•	Additional details from
			historic drilling are
			unknown.

Section 2 Reporting of Exploration Results

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

Criteria	JORC Code explanation	Commentary	Commentary
Mineral	• Type, reference name/number, location and	•	The application for
tenement	ownership including agreements or material issues		ELA2020/0194 was
and land tenure	with third parties such as joint ventures, partnerships, overriding royalties, native title interests, historical sites, wilderness or national park and environmental	•	received on the 31/11/2020. ELA2020/0194 is located
status	settings.		approximately 80km south
	• The security of the tenure held at the time of reporting		south-west of Coober Pedy
	along with any known impediments to obtaining a		overlapping McDouall Peak
	licence to operate in the area.		and Commonwealth Hill
			Pastoral Stations.
		•	The tenement is located
			within the Woomera
			Prohibited Area (Amber
			Zone) and the Far North
			Prescribed Wells Area.
		•	Native Title Claims:
			SCD2011/001 Antakirinja
			Matu-Yankunytjatjara.
		•	The tenement is in good
			standing and no known
			impediments exist.
Exploration done by other parties	• Acknowledgment and appraisal of exploration by other parties.	• •	Previous exploration work includes; Surface Geochemical Sampling:Calcrete
			Airborne Geophysics:
			Magnetics & Radiometrics.
			Ground Geophysics:
			Magnetics and Gravity.
			Exploration Drilling:, 16
			Aircore, 5 Rotary
			Percussion, 17 Reverse
			Circulation& 3Diamond.
Geology	• Deposit type, geological setting and style of	•	Petratherm is primarily
	mineralisation.		exploring for Orogenic Gold
			mineralisation (e.g.
			Challenger-style) within the
			Mulgathing Complex of the
			GawlerCraton, South

Criteria	JORC Code explanation	Commentary	Commentary
			Australia
		•	A second target is Iron-
			Oxide CopperGold.
Drill hole	• A summary of all information material to the	•	No drilling has been
Information	understanding of the exploration results including a tabulation of the following information for all Material		undertaken by Petratherm although limited historical
	drill holes:		drilling exists.
	o easting and northing of the drill hole collar	•	Additional details from
	o elevation or RL (Reduced Level – elevation above		historic drilling reported are
	sea level in metres) of the drill hole collar		shown in Appendix 1. Other
	o dip and azimuth of the hole		additional details are
	o down hole length and interception depth		unknown.
	o hole length.
	• If the exclusion of this information is justified on the
	basis that the information is not Material and this
	exclusion does not detract from the understanding of
	the report, the Competent Person should clearly
	_explain why this is the case. _
Data	• In reporting Exploration Results, weighting averaging	•	No drilling has been
aggregation methods	techniques, maximum and/or minimum grade truncations (eg cutting of high grades) and cut-off grades are usually Material and should be stated.		undertaken by Petratherm.
	• Where aggregate intercepts incorporate short lengths
	of high grade results and longer lengths of low grade
	results, the procedure used for such aggregation
	should be stated and some typical examples of such
	aggregations should be shown in detail.
	• The assumptions used for any reporting of metal
	_equivalent values should be clearly stated. _
Relationship	• These relationships are particularly important in the	•	No drilling has been
between	reporting of Exploration Results.		undertaken by Petratherm.
mineralisati on widths and	• If the geometry of the mineralisation with respect to the drill hole angle is known, its nature should be reported. • If it is not known and only the down hole lengths are
intercept	reported, there should be a clear statement to this
lengths	effect (eg ‘down hole length, true width not known’).
Diagrams	• Appropriate maps and sections (with scales) and	•	No drilling has been
	tabulations of intercepts should be included for any		undertaken by Petratherm.
	significant discovery being reported These should
	include, but not be limited to a plan view of drill hole
	_collar locations and appropriate sectional views. _
Balanced	• Where comprehensive reporting of all Exploration	•	No drilling has been
reporting	Results is not practicable, representative reporting of both low and high grades and/or widths should be		undertaken by Petratherm.
	practiced to avoid misleading reporting of Exploration
	_Results. _
Other	• Other exploration data, if meaningful and material,	•	No other substantive
substantive	should be reported including (but not limited to):		exploration data has been
exploration data	geological observations; geophysical survey results; geochemical survey results; bulk samples – size and method of treatment; metallurgical test results; bulk		collected by Petratherm.
	density, groundwater, geotechnical and rock
	characteristics; potential deleterious or contaminating
	substances.

Criteria	JORC Code explanation	Commentary	Commentary
Further	• The nature and scale of planned further work (eg	•	A range of exploration
work	tests for lateral extensions or depth extensions or		techniques are being
	large-scale step-out drilling).		considered to progress
	• Diagrams clearly highlighting the areas of possible		exploration including deep
	extensions, including the main geological		geochemical sampling,
	interpretations and future drilling areas, provided this		gravity surveying and
	_information is not commercially sensitive. _		drilling.