PTR MINERALS LTD — Capital/Financing Update 2021

Nov 2, 2021

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

ASX ANNOUNCEMENT 03/11/2021

Comet Project – Regional Shallow Drilling Program Identifies New Gold Anomalies

HIGHLIGHTS

• Shallow RAB drilling completed in Sept-Oct 2021 has identified 3 anomalous gold areas at Petratherm's Comet Project (EL 6443 & EL 6633), in South Australia.
• Follow-up infill drilling of these new anomalies and regional shallow exploration drilling into new areas is scheduled to get underway in 3 weeks.
• A second rig has been secured to conduct air-core/hammer drilling of the Comet and Target 14 Gold Prospects in parallel with the shallow RAB drilling targeting work.

Petratherm Limited ("Petratherm" or "the Company") (ASX: PTR) is pleased to announce that assays from its most recent phase of regional geochemical gold exploration at the Comet Project on the Gawler Craton, in South Australia, has defined three gold anomalies in the weathered basement clays (saprolite) that could be indicative of nearby gold mineralisation.

The three new anomalies are shown in Figure 2 with the highest gold detected being in the vicinity of Petratherm's Target 14 Prospect Area. The 3 anomalous values are:

• Drill Hole 658 4 metres @ 305 ppb Au, from 20-24 metres
• Drill Hole 596 3 metres @ 21 ppb Au, from 18-21 metres
• Drill Hole 614 3 metres @ 17 ppb Au, from 18-21 metres

Drill hole number 658 featuring 305 ppb Au expands the prospective area of interest for the Target 14 Gold Prospect (refer to PTR ASX release 29/10/21). Drill hole 596, which returned 21 ppb Au, is also notably highly anomalous in copper, returning 419 ppm which is close to 20 times background, and may indicate the prospect also has some potential for copper mineralisation.

The Comet Project contains prospective Archean strata of the Northern Gawler Craton which hosts numerous gold occurrences such as the Challenger gold deposit (1.1 Moz @ 5.1g/t) and is located 30 km east from the recent high-grade Aurora Tank Gold discovery (Figure 1).

Historical surface geochemical sampling exploration techniques in the region have been severely impeded by shallow cover strata which masks most of the prospective basement rock geochemical response. To overcome this issue, Petratherm has applied a new exploration methodology, where regional scale (400 metre by 400 metre) shallow grid drilling is being undertaken to directly sample the top of the in-situ "saprolite" zone clays (deeply weathered basement rock which has been chemically decomposed to clay) below younger transported cover strata (refer to PTR ASX release 28/05/21 for program background). In most areas over the tenement the top of saprolite zone occurs between 5 and 20 metres depth.

The saprolite sampling program has proved effective, with findings indicating sampling provides geochemical data with high level of precision (low noise), eliminatessuperficial anomalies contained in the transported cover sediment, and most critically provides direct geochemical screening of the prospective basement rock at depth.

The assay results have yielded gold in saprolite up to 305 ppb and for comparison, the gold in saprolite above primary gold mineralisation at the nearby Comet Gold Prospect ranged between 7 to 51 ppb. Bedrock drilling below the saprolite anomaly at Comet Prospect has yielded multiple high gold intercepts of up to 6.97 g/t Au (refer to PTR ASX release 30/10/20 for summary of significant gold intercepts).

The Company has engaged McLeod Drilling to undertake infill sampling over the new prospective zones and this work is scheduled to start in approximately 3 weeks' time. Following the infill sampling work, the rig will then expand the regional shallow geochemical grid sampling program into new areas. The shallow grid drilling is supported by S.A Government grant funding to a level of $147,500 on a 1 for 1 basis through the Accelerated Discovery Initiative (PTR ASX release 21/05/21).

In parallel to the regional saprolite drill targeting work the Company has engaged Bullion Drilling to conduct air core/percussion drilling of the Target 14 and Comet Gold Prospect Areas. This work is scheduled to get underway from mid-November.

Figure 1 Regional Location Map of Petratherm's Comet Project (comprising EL6443 and EL 6633) and gold occurrences overlain on a regional aeromagnetic image

Figure 2 Geochemical Plan highlighting the new saprolite gold anomalies.

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 6443 & EL 6633 (Comet 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, randomchips, or specific specialised industry standardmeasurement tools appropriate to the minerals underinvestigation, such as down hole gamma sondes, orhandheld XRF instruments, etc.). These examples shouldnot be taken as limiting the broad meaning of sampling.•Include reference to measures taken to ensure samplerepresentivity and the appropriate calibration of anymeasurement tools or systems used.•Aspects of the determination of mineralisation that areMaterial to the Public Report.•In cases where 'industry standard' work has been done thiswould be relatively simple (eg 'reverse circulation drillingwas used to obtain 1 m samples from which 3 kg waspulverised to produce a 30 g charge for fire assay'). In othercases more explanation may be required, such as wherethere is coarse Au that has inherent sampling problems.Unusual commodities or mineralisation types (egsubmarine nodules) may warrant disclosure of detailedinformation.	•A total of 732 drill holeshave been drilled to collectsamples from the top of thesaprolite on a 400m gridspacing.•Samples were collected ascomposite intervals fromone metre drill samplesstored individually inbuckets.•Composite samples werecollected using a samplingtool to collectrepresentative samplesfrom buckets. Compositesamples were an averageweight of 2 kg. A handheldGarmin GPS was used torecord the location of eachdrill hole. The accuracy ofthis GPS is +/- 3m
Drillingtechniques	•Drill type (eg core, reverse circulation, open-hole hammer,rotary air blast, auger, Bangka, sonic, etc.) and details (egcore diameter, triple or standard tube, depth of diamondtails, face-sampling bit or other type, whether core isoriented and if so, by what method, etc.).	•Drill Method consists ofRAB. Hole diameters are100 mm
Drill samplerecovery	•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.	•RAB drilling methods wereutilised throughout theduration of the program.•Hole diameters are 100mm•A Geologist was on site forevery drill hole to ensurethat sample recoveries wereappropriate.
Logging	•Whether core and chip samples have been geologically andgeotechnically logged to a level of detail to supportappropriate 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 relevantintersections logged.	•All samples weregeologically logged by theon-site geologist.•Geological logging isqualitative.•Representative chip trayscontaining 1 m geologicalsubsamples were collected.
Subsamplingtechniques	•If core, whether cut or sawn and whether quarter, half or allcore taken.•If non-core, whether riffled, tube sampled, rotary split, etc.	•Samples averaging 2 kgwere collected forlaboratory assay.

Criteria	JORC Code explanation	Commentary
and samplepreparation	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-samplingstages to maximise representivity of samples.•Measures taken to ensure that the sampling isrepresentative of the in-situ material collected, includingfor instance results for field duplicate/second-halfsampling.•Whether sample sizes are appropriate to the grain size ofthe material being sampled.	•It is considered thatrepresentative sampleswere collected.•Laboratory samplepreparation includesdrying and pulverizing ofsubmitted sample to targetof p80 at 75 um.•Duplicate samples havebeen introduced into thesample stream by theCompany.•Standard samples wereintroduced into the samplestream by the Company,and the laboratory alsoinclude standard checkassays.•Laboratory analyticalcharge sizes are standardsizes and consideredadequate for the materialbeing assayed.
Quality ofassay dataandlaboratorytests	•The nature, quality and appropriateness of the assayingand laboratory procedures used and whether the techniqueis considered 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 (i.e. lack of bias) and precisionhave been established.	•ALS in Perth has conductedthe analytical work.Samples were analysed inthe following manner:•Aqua Regia Digest.Analysed by InductivelyCoupled Plasma MassSpectrometry andInductively CoupledPlasma-Atomic EmissionSpectrometer for Au to1ppb and 39 otherelements.•For laboratory samples, theCompany has introducedQA/QC samples at a ratioof one QA/QC sample forevery 50 drill samples. Thelaboratory has introducedadditional QA/QC samples(blanks, standards, checks)
Verificationof samplingandassaying	•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)	•The company has queriedthe results with ALS toverify the accuracy of theresults and ensure the

Criteria	JORC Code explanation	Commentary
	protocols.•Discuss any adjustment to assay data.	results are not an outcomeof lab contamination.•No twinned holes weredrilled in the program.•No adjustments have beenmade to the assay data.
Location ofdatapoints	•Accuracy and quality of surveys used to locate drill holes(collar and down-hole surveys), trenches, mine workingsand other locations used in Mineral Resource 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 ±3metres and a verticalaccuracy ±5m.
Dataspacing 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.	•Drill holes were completedon a 400-metre spacedgrid.•The data spacing anddistribution is insufficientto establish the degree ofgeological and gradecontinuity appropriate fora JORC mineral resource.
Orientationof data inrelation 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.	•No geological informationregarding orientation ofstructure was available.
Samplesecurity	•The measures taken to ensure sample security.	•Company staff collectedall laboratory samples.•Samples submitted to thelaboratory weretransported and deliveredby Company staff.
Audits orreviews	•The results of any audits or reviews of sampling techniquesand data.	•No audit of data has beencompleted to date.

Section 2 Reporting of Exploration Results

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

Criteria	JORC Code explanation	Commentary
Mineral	•Type, reference name/number, location and ownership	•EL 6443 Comet and EL 6633
tenement	including agreements or material issues with third parties	Gina are located
and land	such as joint ventures, partnerships, overriding royalties,	approximately 80km south
tenure	native title interests, historical sites, wilderness or national	south-west of Coober Pedy
status	park and environmental settings.	overlapping Ingomar and
	•The security of the tenure held at the time of reporting	Commonwealth Hill
	along with any known impediments to obtaining a licence	Pastoral Stations.

Criteria	JORC Code explanation	Commentary
	to operate in the area.	•The tenements are locatedwithin the WoomeraProhibited Area (AmberZone) and the Far NorthPrescribed Wells Area.•Native Title Claims:SCD2011/001 AntakirinjaMatu-Yankunytjatjara.•The tenement is in goodstanding and no knownimpediments exist.
Explorationdone byother parties	•Acknowledgment and appraisal of exploration by otherparties.	Previous exploration work•includes;Surface Geochemical•Sampling: CalcreteAirborne Geophysics:Magnetics & Radiometrics.Ground Geophysics:Magnetics and Gravity.Exploration Drilling: 202Mechanised Auger, 103Air core, 9 Rotary Air, 27Reverse Circulation & 3Diamond.
Geology	•Deposit type, geological setting and style of mineralisation.	•Petratherm is primarilyexploring for OrogenicGold mineralisation (e.g.Challenger-style) withinthe Christie Region of theGawler Craton, SouthAustralia.
Drill holeInformation	•A summary of all information material to theunderstanding of the exploration results including atabulation of the following information for all Material drillholes:easting and northing of the drill hole collaroelevation or RL (Reduced Level – elevation above seaolevel 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 the basisthat the information is not Material and this exclusion doesnot detract from the understanding of the report, theCompetent Person should clearly explain why this is thecase.	•The type of drillingperformed, comprisedvertical shallow holes toan average depth of 15metres on a 400m grid.The drilling is effectively aregional deep augergeochemical samplingprogram and as a resulttabulation of drill holeinformation is considerednot necessary as it doesnot add further materialinformation and does notdetract from theunderstanding of thereport.

Criteria	JORC Code explanation	Commentary
Dataaggregationmethods	•In reporting Exploration Results, weighting averagingtechniques, maximum and/or minimum grade truncations(eg cutting of high grades) and cut-off grades are usuallyMaterial and should be stated.•Where aggregate intercepts incorporate short lengths ofhigh grade results and longer lengths of low grade results,the procedure used for such aggregation should be statedand some typical examples of such aggregations should beshown in detail.•The assumptions used for any reporting of metal equivalentvalues should be clearly stated.	•All reported drill resultsare true results as reportedby ALS.•No assumptions of metalequivalent values weremade or used.
Relationshipbetweenmineralisation widthsandinterceptlengths	•These relationships are particularly important in thereporting of Exploration Results.•If the geometry of the mineralisation with respect to thedrill hole angle is known, its nature should be reported.•If it is not known and only the down hole lengths arereported, there should be a clear statement to this effect (eg'down hole length, true width not known').	•Drill holes were drilledvertically at -90 degrees.Any relationship betweenmineralisation widths andintercepts lengths is notknown.•Gold values reported aredown hole length.
Diagrams	•Appropriate maps and sections (with scales) andtabulations of intercepts should be included for anysignificant discovery being reported These should include,but not be limited to a plan view of drill hole collarlocations and appropriate sectional views.	•See figures in releaseattached.
Balancedreporting	•Where comprehensive reporting of all Exploration Resultsis not practicable, representative reporting of both low andhigh grades and/or widths should be practiced to avoidmisleading reporting of Exploration Results.	•All drill hole results areclassified by Au values infigure 2. As such allmaterial Au results arerepresented.
Othersubstantiveexplorationdata	•Other exploration data, if meaningful and material, shouldbe reported including (but not limited to): geologicalobservations; geophysical survey results; geochemicalsurvey results; bulk samples – size and method oftreatment; metallurgical test results; bulk density,groundwater, geotechnical and rock characteristics;potential deleterious or contaminating substances.	•See attached ASX Release.Geological observationsare included in that report.
Furtherwork	•The nature and scale of planned further work (eg tests forlateral extensions or depth extensions or large-scale stepout drilling).•Diagrams clearly highlighting the areas of possibleextensions, including the main geological interpretationsand future drilling areas, provided this information is notcommercially sensitive.	•See attached release.