PTR MINERALS LTD — Capital/Financing Update 2020

Feb 9, 2020

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ASX RELEASE ASX: PTR

10 February 2020

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Mabel Creek Project – Drilling Update

Petratherm Limited (ASX: PTR) is pleased to announce that drilling operations are scheduled to start at its Mabel Creek Project Area, 50 kilometres NE of Coober Pedy (SA) in approximately 2 to 3 weeks. The start date is dependent on how quickly the local ground access conditions improve after recent heavy rainfall in the area.

The Mabel Creek Ridge is an ENE trending zone of shallow covered basement rock which display high magnetic and gravity relief along the eastern margin of the Gawler Craton. It’s prospective for large Olympic Dam Style Copper-Gold (IOCG) mineralised systems but is also considered highly prospective for related, magnetite skarn copper and high value rare-earths.

Regional and infill gravity survey work performed during the 2019 year identified several discrete gravity anomalies that may be potentially indicative of an IOCG style system. The Phase-1 drill program will test 4 high priority gravity targets. These targets are relatively shallow and have a modelled top of target depth ranging between 130 metres to 300 metres. The attached February 2020 Company Presentation includes a summary of the Project and the planned drilling activities.

For further information, please contact: Peter Reid Exploration Manager Tel: (08) 8133 5000

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.

Petratherm Limited ASX: PTR

Disclaimer

This presentation has been prepared by Petratherm Limited (Petratherm). The information contained in this presentation is a professional opinion only and is given in good faith. Certain information in this document has been derived from third parties and though Petratherm has no reason to believe that it is not accurate, reliable or complete, it may not have been independently audited or verified by Petratherm.

Any forward-looking statements included in this document involve subjective judgment and analysis and are subject to uncertainties, risks and contingencies, many of which are outside the control of, and maybe unknown to, Petratherm. In particular, they speak only as of the date of this document, they assume the success of Petratherm’s strategies and they are subject to significant regulatory, business, competitive and economic uncertainties and risks. Actual future events may vary materially from the forward looking statements and the assumptions on which the forward looking statements are based. Recipients of this document (“Recipients”) are cautioned not to place undue reliance on such forward-looking statements.

Petratherm makes no representation or warranty as to the accuracy, reliability or completeness of information in this document and does not take responsibility for updating any information or correcting any error or omission which may become apparent after this document has been issued.

To the extent permitted by law, Petratherm and its officers, employees, related bodies corporate and agents (“Agents”) disclaim all liability, direct, indirect or consequential (and whether or not arising out of the negligence, default or lack of care of Petratherm and/or any of its Agents) for any loss or damage suffered by a Recipient or other persons arising out of, or in connection with, any use or reliance on this presentation or information. All amounts are in Australian dollars (AUD) unless stated otherwise.

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About Petratherm

ASX Listing - April 2018 | Mineral Explorer | Highly experienced technical and corporate team

Shares On Issue: 171M | Options (unlisted): 16M Market Cap (@0.05) : $8.6M | Cash (end Dec 19 QTR): $3.0M | EV: $5.6M Shareholders: 3,012 | Top 20 Holders 33.1%, Directors and Management 3.5%

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Experienced technical and corporate team

Mr Derek Carter – Non-Executive Chairman (BSc, MSc, FAusIMM)

Derek Carter was the founder of the Minotaur group. He is a joint recipient of Explorer of the Year (AMEC) for the discovery of the Prominent Hill Copper Gold deposit, Chair of Highfield Resources during the discovery and evaluation the world-class Muga deposit (Reserves of >100mt at 10.2% K2O), recipient of the President's Award (AusIMM) and is, and or has been, the Chair and/or member of numerous Government, Industry and ASX listed Company Boards. He is a geologist with over 45 years Corporate and field experience.

Mr Donald Stephens – Non-Executive Director and Company Secretary (BA (Acc.), FCA)

Mr Stephens is a Chartered Accountant and corporate advisor with over 25 years' experience in the accounting, mining and services industries, including 14 years as partner of HLB Mann Judd (SA), a firm of Chartered Accountants.

Mr Simon O’Loughlin – Non-Executive Director (BA (Acc.), Law Society Certificate in Law)

Mr O'Loughlin is the founder of O'Loughlin's Lawyers, an Adelaide based, specialist commercial law firm. He has extensive experience in the corporate and commercial law fields while practising in Sydney and Adelaide, and also holds accounting qualifications.

Mr Peter Reid – Exploration Manager (BSc Hons, MAIG)

Mr Reid is an exploration geologist with over 25 years’ experience. He was part of the Minotaur team which discovered the Prominent Hill copper-gold deposit and then later heavily involved in the successful IPO spin offs of ASX listed, Mithril Resources Ltd and Petratherm Ltd. He was the founding CEO of Petratherm and during this time, the recipient of the Chairman’s Award for his contribution to the Australian geothermal industry and is a former Chairman of the Geothermal Reporting Code. In more recent times he has returned to mineral exploration and is a former Director of ASX listed Lawson Gold (now Odin Metals).

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– Petratherm 100% Owned Project Portfolio!

Two Principal Deposit Styles

Olympic Dam Style Copper-Gold

Multiple drill ready high amplitude gravity/magnetic targets 4 targets to be drill tested in Feb. 2020

High-Grade Gold

Comet (SA) – “Challenger Style” vein gold

Yuengroon & Silver Spoon (Vic) - Two highly prospective ground positions in the Victorian Orogenic Gold Province

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Mabel Creek Ridge - Cu-Au
Comet - Au
Adelaide Silver Spoon - Au
Yuengroon - Au Melbourne
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“focus is on new high growth opportunities”

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South Australia’s - World Class Olympic - Copper Gold Province

• Fertile for Iron Oxide-Copper-Gold (IOCG) style mineralisation.

• Large Licence Area – 2,852 km[2]

• 11.4 Mt @ 49.5% Fe 0.4 % Cu, 0.1 g/t Au

  • 178 Mt @ 1.1% Cu, 0.7 g/t Au, 2.7 g/t Ag

• Shallow Cover 100-300 metres

• Drill ready semi-coincident magnetic and gravity anomalies identified

• Native Title Mining Agreements Executed

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9550 Mt @ 0.81% Cu, 0.26 kg/t U3O8
0.29 g/t Au, 2.0 g/t Ag
“New Discovery”
587 Mt @ 0.7%% Cu,
0.3 g/t Au, 2.9 g/t Ag
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– Mabel Creek IOCG Project Fertile IOCG Province

• Eastern Margin of Gawler Craton

• Major NW and NE trending crustal Structures.

• Numerous discrete magnetic / gravity anomalies

• Very limited modern exploration

Cadi Prospect - Drill intercepts Include

• NC9202 - 44m @ 0.10% Cu, 0.5 % La + Ce from 148m

• 99WS003 - 16m @ 0.57% Cu and 0.17% La + Ce from 184 m to end of hole

• Mineralisation open in all directions

BigNE Prospect (FMG)

• Elevated Cu-REE, Hematite alteration

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Big NE Prospect
Elevated Cu-REE + Fe Alteration
IOCG Alteration
Cadi Prospect
Cu-REE
Drill hole =
Aeromagnetic Image of Mabel Creek East Area
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– Mabel Creek IOCG February 2020 Drilling Program

• Drilling scheduled to start Mid to Late February 2020

• 4 holes ranging between 250m to 500m depth

• Drilling Budget $300,000

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Area 5 North
Area 5 South
Area 3
Area 2
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1VD Gravity anomalies overlain on 2VD Greyscale Magnetic Image
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Mabel Creek Project Area 3 Drill Target

1VD Gravity Image 1VD Gravity Contours overlain on RTP Magnetic Image

Area 3 Target

• 3+ milligal gravity anomaly

• Classical IOCG style target - Gravity Anomaly offset with Magnetic Anomaly

• Target occurs at regional large scale fault structural intersection and demonstrates a structural form indicative of an alteration system that may be mineralised

• Modelled depths to top of the dense body range from 160m to 300m

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Contours = 0.001 Mgal/m
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Mabel Creek Project Area 3 Drill Target 3D Model

Area 3 Target

• The offset in the gravity and magnetic anomalies observed be indicative of may

• zonation within a magnetite-haematite system (e.g. IOCG style alteration). The non-magnetic gravity anomaly is positioned shallower and/or to one side of the magnetic feature, which is typical of an IOCG style system.

• The unconstrained 3D inversion model indicates a minimum depth of 160-180m, but forward modelling using a variety of model densities show that the source could be as deep as 300m.

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3D Inversion Model of Area 3 Anomalies showing the relationship between the magnetic and gravity bodies.

Area 3 Target, Prominent Hill & Carapateena 1VD Gravity Comparison

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Area 3 Target
White contours = 0.001 Mgal/m
Carrapateena Prominent Hill
Depth to top of
Depth to top of
Ore Body is 100 metres
Ore Body is 470 metres
Carrapateena and Prominent Hill images produced
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Carrapateena and Prominent Hill images produced from open file government data

Mid-range model depth to top of body is 230 metres

Mabel Creek Project Area 5 Drill Target

Area 5 Target

• 7+ milligal gravity anomaly

• IOCG style target - Gravity Anomaly and Magnetic Anomaly partially offset

• Modelled Depth to top of dense body = 130 metres

• Drill Hole PD00WN011 Basement @ 136m

• Sericite –haematite alteration.

Classic IOCG edge alteration !

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Magnetic Image + Gravity Contours (Mgal)
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Bouguer Gravity Image
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Mabel Creek Project Area 5 Drill Target 3D Model

Area 5 Target

• The Area 5 Anomaly is a broad multi-peak, highamplitude (7 Mgal) gravity anomaly, which is semicoincident with a moderately strong (500nT) magnetic anomaly. The 3D model indicates the top of the gravity anomaly starts at a depth of around 130 metres.

• Inversion model demonstrates a high average

• density contrast (≥0.1 g/cm[3] ) which may also be indicative of an IOCG style system

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3D Inversion Model of Area 5 Anomalies showing the relationship between the magnetic and gravity bodies.

– Mabel Creek Project High Amplitude Gravity Targets Identified

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Area 13
Area 9 Area 5
Area 3
Area 14
Area 2
Gravity Target Status (Nov19) Area 12
Gravity Anomaly
High Priority Gravity Target
Coober Pedy
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2019 Exploration comprised extensive gravity surveying and Native Title Work – Targets are now Drill Ready!

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2019 Victorian Gold Production approx. 650,000 Oz
(source: Earth Resources Victoria)
Chalice Catalyst
Gold
Petratherm Chalice
Gold
Navarre
Minerals
Lion Kirkland Lake Newmont Nagambie
Gold GBM Resources
Gold
Petratherm
Mandalay
Kalamazoo
Stavely
Lion
Minerals Navarre Gold
Minerals
Thursday’s Gossan
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Yuengroon Gold Project (EL 6897)

• area

• Large 687 km[2 ]

• Covers a portion of the Wedderburn Goldfield (140,000 Oz Au production)

• Prospective mineralised fault structures

• Golden Jacket Mine

  • 1,385 Oz @ 250 g/t Au

• Nine Mile Mine 16,236 oz @ 11.6 g/t Au

• Shallow cover over most of the tenement.

• Tenement granted Oct2019, soil and reef sampling underway

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Wedderburn Goldfield
140,000 Oz Au
Golden Jacket
Moondyne
1,385 oz @ 250 g/t Au
Extensive alteration
small scale production @ 10.9 g/t Au
Nine Mile
16,236 oz @ 11.6 g/t Au
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Silver Spoon Gold Project (EL 6951)

• New tenement Application (Feb 19)

• Close to major operating mines

• Area only lightly explored due to shallow cover over most of the tenement

• Several historical gold shows and alteration recorded, associated with major faults

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Fosterville
Lockington
6.7 Moz
Tender Area
Bendigo
22 Moz
EL 6951
Costerfield
1.8 Moz
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EL6951 (Silver Spoon) Location Map, showing recorded historical mine sites (yellow dots), current exploration licences and major gold mines.

Comet Gold Project (EL 6443)

• 256 km[2 ] Tenement won in a SA Government competitive bid (Oct. 2019)

• Located within the Northern Gawler Craton of South Australia, which hosts numerous significant, gold occurrences, including the Challenger deposit which has a recorded historical production of 1.1 million ounces at an average grade of 5.1 g/t.

• Includes the Comet Gold Prospect, discovered using regional calcrete soil geochemistry in the mid 1990’s

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Golf Bore
Campfire Bore
EL 6443
Greenwood
Comet
Challenger
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Comet Gold Project

Comet Prospect

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Open
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• Gold intercepts occur over a continuous strike length in excess of 150 metres and is open to the north, south and at depth.

• Follow up drill testing will be a priority. The Company has an existing Native Title Mining Agreement and anticipates a future drilling approval could be achieved quickly.

• Historical gold soil geochemistry over much of the northern Gawler Craton was ineffective and prematurely down graded many areas. With these learnings, the Company will employ other exploration methods such as magnetic / structural targeting, IP geophysics and regional based shallow RAB drilling to locate prospective gold zones.

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Figure: Comet Prospect drill collars and gold intercepts (red lines) projected to surface.

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Open
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2019 Target Generation / Land Access Drilling to start February 2020

SA Olympic Dam Style Copper Gold targets

• Feb 2020 - Drilling of 4 high priority Gravity/Magnetic targets

Comet Gold Project

• Drill Ready first half of 2020

Victoria – Orogenic Gold

• Mineralised reef and soil sampling programs in progress

• Geophysical surveying to aid drill targeting (first half 2020)

• Drill Ready later in the 2020 year

New Projects

• Ongoing evaluation and acquisition of new projects with high growth potential

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Drive Entrance, Historic Gold Reef, Wedderburn, Victoria

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JORC Information and Competent Person Statement

JORC Information:

Further details (Including JORC 2012 Code Reporting Tables, where applicable) for the information included in this Presentation can be found in the following Petratherm Limited announcements previously lodged with the ASX:

• Petratherm Secures Position in Highly Prospective Bendigo Gold Zone – 22 November 2018

• Petratherm Secures Land Position Over Highly Prospective Olympic Dam Style, Copper-Gold, Geophysical Anomalies – 5 December 2018

• Second Tenement Application over an Area Prospective Olympic Dam Style, Copper-Gold – 12 December 2018

• Victorian Gold Tenement Update - Exceptional 250 g/t Au Historic Reef Occurrence – 13 February 2019

• Exploration Licence Application close to Fosterville Gold Mine – 4 March 2019

• Gravity survey identifies high tenor Olympic Dam Style Targets – 12 August 2019

• Yuengroon Tenement Granted – Gold and Basement Potential – 11 October 2019

• Gravity Modelling Defines Olympic Dam Style Targets – 15 October 2019

• Prospective Gold Tenement Won in Competitive Bid – 18 October 2019

• Comet Project Tenement (EL 6443) Granted – 14 January 2020

• Quarterly Activities Report December 2019 – 30 January 2020

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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