PTR MINERALS LTD — Capital/Financing Update 2021

Feb 18, 2021

ACN 106 806 884 ASX: PTR

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PETRATHERM LIMITED

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

ASX ANNOUNCEMENT 19 February 2021

Drilling Operations Update - Mabel Creek and Comet Projects

HIGHLIGHTS

• Heritage surveying completed over the Mabel Creek and Comet Project Areas, paving the way for large ground exploration campaign to get underway.

• Drilling of Olympic Dam Style Copper-Gold targets scheduled to start first week of March.

• Regional scale shallow RAB drilling program (approximately 700 holes) to explore for gold accumulations under shallow cover at the Comet Gold Project scheduled to start mid-March

• Follow-up RC/diamond drilling of gold mineralisation at Comet Gold Prospect and potentially other gold prospect areas located from the regional RAB program to get underway from the second quarter of 2021

Petratherm Limited (“Petratherm” or “the Company”) (ASX: PTR) is pleased to announce it has recently completed extensive Native Heritage surveying over both its Mabel Creek and Comet Project Areas in South Australia (Figure 1). The Eastern Mabel Creek Project area occurs on the Arabana People’s Native Title Lands. Surveying was conducted in late January to seek a clearance to drill multiple Olympic Dam Style geophysical targets. In early February, the Company completed further heritage surveying over the Western Mabel Creek Project Area and at the Company’s Comet and Gina Project Areas, which occur on the Antakirinja Matu-Yankunytjatjara Native Title Lands. Extensive ground exploration works can now begin, in what will be a very active period for the Company on the ground, throughout the 2021 period.

At Mabel Creek, the Company will drill test 4 gravity/magnetic targets for Olympic Dam Style Copper-Gold mineralisation with provision to drill several additional targets subject to early findings (refer to PTR ASX release 23/12/20 for target details). 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) demonstrating the regions fertility for this style of mineralisation. The Company is currently finalising drilling provisions with the South Australian Department for Energy and Mining Regulator. A drilling rig has been secured with MJ Drilling and at this stage the drill rig will mobilise to site and begin operations during the first week of March. The Company has undertaken further geophysical modelling work of final selected drill targets and will provide a technical update ahead of the drilling operations.

The Challenger gold deposit (1.1 Moz @ 5.1g/t) and the recent high-grade Aurora Tank Gold discovery by Marmota Limited, demonstrate the gold fertility of the Northern Gawler Craton. Historical exploration in the region has however been severely impeded by the shallow cover which masks most of the prospective basement rock and to date no effective first pass exploration screening method has been devised to identify gold anomalous areas.

To overcome this issue, the Company’s regional shallow RAB program, which is scheduled to start in Mid-March, aims to drill through the shallow transported cover and directly evaluate the geochemical signature of the top of the deeply weathered basement rock (top of saprolite) below. In most areas, the cover is less than 10 metres thick and if successful it could offer a new cost-effective first pass exploration tool for gold in the region. The first phase of shallow

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regional RAB drilling will evaluate an approximate 100 km[2] area over the western half of the Comet Tenement Area, with holes spaced approximately 400 metres apart. Additional technical detail on the survey will be provided closer to the start of the ground operations.

The ground exploration works at both Mabel Creek and Comet are likely to continue through to the end of April. A RC drill campaign to test gold mineralisation intersected at the Comet Gold Prospect Gold (refer to PTR ASX release 30/09/20) and potentially other new gold targets identified from the upcoming shallow RAB drilling program are scheduled to occur immediately following.

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MABEL CREEK PROJECT
TENEMENTS (Cu-Au)
Area 5 Prospect
(IOCG Alteration)
CADI PROSPECT
(Cu-REE )
CAIRN HILL
(CU River Mining, Fe-Cu-Au)
11 Mt @ 49.5% Fe
0.4 % Cu, 0.1 g/t Au
COMET PROSPECT
(Au)
AURORA TANK
(MARMOTA, Au)
COMET PROJECT
TENEMENTS (Au)
CHALLENGER
1.1 Moz @ 5.1 g/t Au
TARGET 14 PROSPECT
(Au) PROMINENT HILL
(OZ Minerals, Fe-Cu-Au)
178 Mt @ 1.1% Cu,
0.7 g/t Au, 2.7 g/t Ag
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Figure 1 Regional Location Map showing Petratherm’s Project Areas, major mines and key prospects overlain on a Regional Aeromagnetic Image

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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