QMINES LIMITED — Capital/Financing Update 2022

Jul 3, 2022

Mt Chalmers Exploration Update

Highlights

4 July 2022

74 diamond and RC holes for 10,157m drilled completed since listing;

Wider than expected mineralised intersections reported in several drillholes;

Multiple wide intersections in recently reported drillholes demonstrate potential for significant resource upgrade including¹;

• 61m @ 3.83 % CuEq (MCDD017)²
• 67m @ 1.51 % CuEq (MCDD044)³
• 69m @ 2.03 % CuEq (MCRC012)⁴

RC drilling scheduled to continue with 1,800 - 2,000m expected to be delivered each month;

Ten RC holes submitted for assay with results expected shortly.

³ ASX Announcement – Further Broad High-Grade Copper, Gold and Zinc Intersections at Mt Chalmers, 28 April 2022

¹ Individual grades presented in table 1.

² ASX Announcement – Multiple Wide High-Grade Intersections Outside Known Resource, 6 October 2021

⁴ ASX Announcement – More Outstanding Copper & Gold Results at Mt Chalmers, 16 June 2022

Overview

QMines Limited (ASX:QML) (QMines or Company) is pleased to provide the following update on recent diamond and RC drilling programs at its flagship Mt Chalmers copper and gold Project, located 17km north-east of Rockhampton in Queensland (Figure 1).

Infill and extensional drill holes in and around the Mt Chalmers resource have retuned several impressive mineralised zones since drilling commenced at the Mt Chalmers Project in March 2021. Outstanding results have been retuned in multiple diamond and RC drillholes with peak grades up to 38.8% CuEq in drill hole MCDD017. All CuEq results from QMines drill holes are now summarised in Table 1 with base and precious metal grades also shown.

Figure 1: Mt Chalmers Project, tenure, geology and infrastructure.

Management Comment

QMines Executive Chairman, Andrew Sparke, comments:

"The summary of our results to date clearly shows Mt Chalmers is the high quality copper and gold asset with strong growth potential. With over 10,000m drilled since listing we are now starting to see the upside potential of this asset.

The recent acquisition of the Company's RC drill rig is deliver significantly more metres drilled per month. We expect to deliver an additional 10,000 metres of RC results by November 2022 leading to our third resource upgrade and consistent new flow over this period."

Diamond and RC drilling has been ongoing at Mt Chalmers since drilling operations commenced in March 2021. The Company has completed approximately 5,900 metres of diamond and approximately 4,300 metres of RC drilling to date.

To accelerate RC drilling operations the Company made the decision to acquire an RC drill rig with support vehicles and equipment (Figure 2). Experienced drilling personnel were hired to manage, run and maintain the drilling equipment. QMines has also built a base of operations and workshops on site during January – March 2022 (Figure 3). The new RC rig commence drilling in April 2022 at the Mt Chalmers Project.

The Company is now reaping the benefits of this investment with an accelerated drill program and an increase in samples delivered to the laboratory for analysis. This has allowed the Company to move towards an upgraded resource at Mt Chalmers faster than would have otherwise been possible.

Figure 2: QMines RC drilling rig operating at the Mt Chalmers Project, June 2022.

Figure 3: QMines operating base, biodiesel storage, core yard and workshops constructed between January - March 2022.

Recent analysis has shown that some of the historical drilling was not analysed for precious metals or zinc. All drilling by QMines has been analysed for a broad suite of economic minerals including copper, gold, silver, lead and zinc. The infill drilling will not only improve confidence categories in the planned Mineral Resource Estimate, but also allow for better estimation of gold and silver.

Additional work is being undertaken to better understand the distribution and controls on gold mineralisation within the system as recent drilling has highlighted the potential for a late gold overprint.

Both QMines and historical drillholes can be seen in Figures 4 and 5, with Sections AA' and BB' shown in plan in Figures 7 and 8. Sections AA' and BB' show historical and recent QMines drillhole intersections displayed as copper equivalents.

The Mt Chalmers drilling program will continue with the Company planning to deliver a further 20,000 metres of RC drilling in line with the projects planned 30,000 metres of drilling. Investors can expect consistent news flow with results to be reported to the market on a regular basis.

Copper Equivalent Calculations

All Copper Equivalent (CuEq) figures included in this announcement are calculated based on the following formula:

CuEq (%) = (Cu grade x Cu recovery) + ((Pb grade x Pb recovery x Pb price)/Cu Price) + (Zn grade x Zn price x Zn recovery)/Cu price) + ((Au grade x Au price x Au recovery)/Cu price) + ((Ag grade x Ag price x Ag recovery)/Cu price).

• All grades are converted to % and prices converted to $/t prior to calculating CuEq.
• Commodity price used include: Au price of US$1,900/oz, Ag price of US$25/oz, Cu price of US$6,655/t, Pb price of US$2,450/t, and Zn price of US$3,450/t.
• The following metallurgical recoveries have been applied: 97.0% Cu, 87% Au, 70.5% Ag, 85.0% Pb and 77.0% Zn.

It is the company's opinion that all the elements included in the metal equivalents calculation have a reasonable potential to be recovered and sold. CuEq with all results for base and precious metals that make up the CuEq are also shown. The CuEq formula uses the same metal price assumptions and metallurgical recovery grades used in the Company's recent resource upgrade delivered to the market in December 2021¹.

Figure 4: QMines and historical drillhole locations used in Sections AA' and BB'.

Figure 5: Section AA' mineralised CuEq intersections with revised wireframe and interpreted geology, June 2022.

Figure 6. Section BB' mineralised CuEq intersections with revised wireframe and interpreted geology, June 2022.

Updated Geological & Exploration Model

QMines is working on an improved geological and exploration model which will help guide future drill campaigns and resource estimates. The additional drilling together with the work completed by Dr Brett Davis is providing QMines with a more robust structural and geological model¹.

As previously mentioned, observations on gold distribution within Mt Chalmers are being investigated. Historic drilling which did not include analysis for Au and Ag in all drill holes has in the past hampered any investigations into the controls. The gold prospects on the property are thought to largely lie on a NE-SW to NNE-SSW trend named the Cawarral Gold Trend. It is not yet known if the gold in the Mt Chalmers mineral resource estimate is related solely to the VMS mineralisation, a late overprint, or a combination of both.

The model will continue to be adjusted as more information comes to hand. Of particular interest is how the gold-rich Exploration Targets² at Botos and Woods Shaft relate to Mt Chalmers.

Discussion

Kuroko-style mineralisation usually occurs as clusters of mineralised zones, which appears to be the case for Mt Chalmers, which may be only one of several deposits. In addition, the interpreted structural dislocation for the mine area may have caused the break-up of larger mineral bodies structurally dispersing lenses within the general Mt Chalmers area.

The geometry of the Mt Chalmers ore body indicates a relatively flat lying asymmetrical massive sulphide mound (Figure 7) with both historical and recent drilling results intersecting higher grade Cu-Au massive sulphides proximal to the centre of the deposit and high grade Pb, Zn, Ag in the massive sulphide and exhalate ore body distal from the centre of the orebody. Similar metal zoning has also been observed in the stringer/disseminated zone beneath the Massive Sulphide Ore Body where Cu-Au grades are typically higher in the centre and Pb, Zn, Ag grades typically higher distally and at greater depths.

A structural study of drillcore from holes drilled in early 2022 has found that the sulphide stringer zone (SSZ) is comprised of anastomosing and multidirectional sulphide veins, often present as breccia cement, with no clearly defined structural orientation. This is more typical of boiling zone architecture. Stringer sulphides are more highly concentrated at the top of the SSZ where they directly underlie the massive sulphide horizon. These findings suggest the massive sulphide horizon has at least in part resulted from the combined surface output of this widespread boiling zone and possibly more so than a single feeder pipe.

Historical drilling is largely constrained in and around the existing Mt Chalmers mine. The Company is extending drilling operations outside the existing wireframe with extensional and additional infill drilling. Recent mineralised intersections appear wider than historical intersections with current assay methods used in the ALS laboratory suggesting higher tenor and grade with precious and base metals. QMines geologists are delivering a significantly more robust geological model to be used in the next resource upgrade and will wireframe all base and precious metals prior to delivering our third mineral resource estimate.

¹ ASX Announcement – Further Broad High-Grade Copper, Gold & Zinc Intersections at Mt Chalmers, 23 November 2021.

Figure 7: Geological Long Section 5010E of the Mt Chalmers Main Lode (pre-mining), (Large & Both, 1980).

Geology

The geology of the Mt Chalmers area is relatively well-known with the Mt Chalmers mineralisation being identified as a well-preserved, volcanic-hosted massive sulphide ("VHMS") mineralised system containing copper, gold, zinc, lead and silver. Mineral deposits of this type are deemed syngenetic and formed contemporaneously on, or in close proximity to, the sea floor during the deposition of the host-rock units. The mineralisation is believed to have been deposited from hydrothermal fumaroles, or direct chemical sediments or sub-seafloor massive sulphide replacement zones and layers, together with footwall disseminated and stringer zones within the host volcanic and sedimentary rocks.

The mineralisation system at Mt Chalmers displays some similarities to Australian VHMS deposits of Cambro-Ordovician and Silurian age, however closer comparison can be made with the Kuroko-style of VHMS of Tertiary age in Japan (Taube 1990).

The Mt Chalmers mineralisation is situated in the early Permian Berserker Beds, which occur in the fault-bounded Berserker Graben, a structure 120km long and up to 15km wide. The graben is juxtaposed along its eastern margin with the Tungamull Fault and in the west with the Parkhurst Fault (Figure 1). The Berserker Beds lithologies consist mainly of acid to intermediate volcanics, tuffaceous sandstone and mudstone (Kirkegaard and Murray 1970). The strata are generally flat lying, but locally folded. Most common lithotypes are rhyolitic and andesitic lavas, ignimbrites or ash flow tuffs with numerous breccia zones.

Rocks of the Berserker Beds are weakly metamorphosed and, for the most part, have not been subjected to major tectonic disturbance, except for normal faults and localised high strain zones that are interpreted to have developed during and after basin formation. Recent geological work by the Queensland Department of Natural Resources and Mines places volcanic and sedimentary units of the prospective Chalmers Formation, the host unit to the Mt Chalmers copper-gold mineralisation, at the base of the Berserker Beds.

The Ellrott Rhyolite and the Sleipner Member andesite were emplaced synchronously with the deposition of the Chalmers Formation. Late Permian to early Triassic gabbroic and dioritic intrusions occur parallel to the Parkhurst Fault. Smaller dolerite sills and dykes are common throughout the region and in the Berserker Beds.

Ongoing Exploration Activity

Ongoing drill programs for the planned +30,000m of RC and Diamond drilling;

Drilling to commence at the Woods Shaft prospect, the first of three Exploration Targets (JORC 2012);

Preparations underway to drill Tracker 3, the first of four large copper and zinc soil anomilies;

Planned 1,800-line kilometre Heli-EM survey to identify further drill targets; and

Third resource upgrade planned to be released in CY-2022.

Forward-Looking Statements

This document may include forward-looking statements. Forward-looking statements include, but are not limited to, statements concerning QMines Limited planned exploration program and other statements that are not historical facts. When used in this document, the words such as "could," "plan," "expect," "intend," "may", "potential," "should," and similar expressions are forward-looking statements. Although QMines believes that its expectations reflected in these forward- looking statements are reasonable, such statements involve risks and uncertainties and no assurance can be given that further exploration will result in the estimation of a Mineral Resource or a larger Mineral Resource.

Competent Person Statement

Exploration

The information in this document that relates to mineral exploration and exploration targets is based on work compiled under the supervision of Mr Glenn Whalan, a member of the Australian Institute of Geoscientists (AIG). Mr Whalan is QMines' principal geologist and has sufficient experience relevant to the style of mineralisation and type of deposit under consideration and to the activity that he is undertaking 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' (JORC 2012 Mineral Code). Mr Whalan consents to the inclusion in this document of the exploration information in the form and context in which it appears.

Hole ID	MGAEast*	MGANorth*	mRL	Dip	MGAAzi*	MaxDepth	Mfrom	Mto	Int(m)	Au(g/t)	Ag(g/t)	Cu(%)	Pb(%)	Zn(%)	CuEq(%)
MCDD001	259849.4	7421092.2	103.2	-90	360	130	70.5	78	7.5	0.75	22.9	0.24	3.52	7.39	5.08
including							72.5	74.7	2.2	0.85	40.7	0.54		8.26 16.79	10.84
MCDD002	259867.1	7421101.3	102.8	-90	360	98.9	53.6	58	4.4	0.8	6.4	0.01	0.11	0.13	0.79
including							61.8	63.2	1.2	0.84	65	0.26	1.62	2.63	3.03
MCDD003	259810.9	7421102.4	104.7	-61	285	77.1	54.2	65	10.8	2.96	55.3	2.07	1.94	3.82	6.97
MCDD004	260052.2	7421250.3	137.6 -58.5		278	118.4						Hole Abandoned VOID
MCDD005	260045.5	7421220.0	139.4 -58.5		276	160.9	116	116	0.6	3.31	87.3	5.21	0.36	0.99	8.95
and							134	141	7.1	0.59	4	2.81	0.01	0.05	3.25
including							140	140	0.5	1.2	12.3	10.35	0.01	0.04	11.12
and							155	156	1	0.12	5.3	1.22	0.01	0.11	1.37
MCDD006	260052.6	7421304.5	125.3	-90	360	160	102	139	37.3	0.22	1.4	0.83	-0.01 0.02		1.00
including							114	116	2	0.61	8.8	4.96	0.03	0.1	5.42
MCDD007	260055.4	7421375.0	120.6	-55	286	170.7	131		160 28.55	1.43	3.5	1.98	-0.01 0.07		3.12
including							133	133	0.75	6.11	31.1	13.4	0.03	0.02	18.16
and							166	170	3.7	0.07	1.4	0.87	0.01	0.03	0.93
MCDD008	259729.3	7421247.4	92.2	-60	95	96.5	21.2	29.9	8.7	0.73	25.7	0.34	1.67	4.37	3.40
and							50.3	51.3	1	0.4	0.9	1.15	-0.01 0.03		1.45
and							56	65	9	0.32	0.4	0.63	0.02	0.02	0.88
and							71	79.5	8.5	1.13	5.2	2.13	0.03	0.07	3.05
and							87	88.3	1.3	0.56	3.4	1.08	0.04	0.06	1.56
MCDD009	259867.2	7421394.7	120.0	-55	99	147.8	143	144	1.3	2.87	17.4	11.7	0.09	0.11	13.86
MCDD010	260005.1	7421466.9	134.3	-90	360	189.7	139	154	15.2	2.36	1.3	0.67	-0.01 -0.01		2.54
including							152	154	2	9.31	2.4	1.34	-0.01 -0.01		8.75
and							165	166	1	0.81	5.5	2.81	0.03 -0.01		3.42
and							177	182	5	0.37	2.6	1.08	0.1	0.49	1.59
MCDD011	260090.1	7421457.2	124.4	-60	343	237.5	186	200	14.6	0.07	1.3	1.01	-0.01	0.01	1.05
and							205.9	222	16.1	NSR	NSR	1.08	NSR	NSR	1.05
MCDD012	259723.1	7421170.6	93.6	-90	360	51.3	14.3	40	25.7	0.42	5	0.47	NSR	NSR	0.83
Including							14.3	17	2.7	1.13	20	1.92	NSR	NSR	2.94
Including							23	24.4	1.4	1.48	23	0.96	NSR	NSR	2.31
Including							28.7	30	1.3	0.9	7	1.75	NSR	NSR	2.48
MCDD013	259823.5	7421297.4	110.6	-60	121	108.8	69.9	77.2	7.3	0.34	20	0.12	0.55	1.33	1.26
And							80	81	1	0.58	14	0.21	0.11	3.49	2.21
MCDD014	259770.8	7421305.1	104.3	-90	360	126.3	95		118.6 23.6	0.09	2	1.3	NSR	NSR	1.35
Including							96.5	101	4.5	0.23	5	3.11	NSR	NSR	3.24
Including							114.1	118.6	4.5	0.11	4	3.13	NSR	NSR	3.16
MCDD015	259741.3	7421309.6	100.2	-90	360	125.8	104	120	16	0.57	1	2.18	NSR	NSR	2.58
Including							111.6	118.2	7.2	1.11	2	4.15	NSR	NSR	4.93
Including							114	116	2	2.41	4	10.1	NSR	NSR	11.76
MCDD016	259786.6	7421377.6	120.1	-90	360	180.93						Hole Abandoned
MCDD017	259731.2	7421238.6	91.3	-60	96	93.1	6.2	33.8	27.6	0.86	21.4	0.48	1.53	3.93	3.38
Including							21.2	33.8	12.6	12.01	43	0.79	3.25	8.42	15.10
Including							48.4	49.2	0.8	41.51	6	5.85	NSR		NSR 38.87
Including							53.5	55.5	2	22.92	4.7	2.65	NSR	NSR	20.91
Including							58.67	60	1.33	26.6	7.2	6.1	NSR	NSR	27.22
Including							48.4	67	18.6	6.84	2.6	1.69	NSR	NSR	7.12
Within							6.2	67	60.8	2.59	11.1	0.74	0.71	1.81	3.83

Hole ID	MGAEast*	MGANorth*	mRL	Dip	MGAAzi*	MaxDepth	Mfrom	Mto	Int(m)	Au(g/t)	Ag(g/t)	Cu(%)	Pb(%)	Zn(%)	CuEq(%)
MCDD018	259795.6	7421202.5	94.8	-55	309	110.3	35	36	1	0.37	2.5	1.85	NSR	NSR	2.11
Including							48	49	1	0.38	3.6	1.26	NSR	NSR	1.56
Including							63	64	1	7.21	1.8	1.41	NSR	NSR	7.14
Including							71	72	2	10.69	1.8	4.67	NSR	NSR	13.08
Including							91	101.5	10.5	1.3	5.2	1.93	NSR	NSR	2.95
Within							63	101.5	38.5	1.22	2.3	0.76	NSR	NSR	1.73
Within							35	101.5	66.5	0.8	2	0.54	NSR	NSR	1.18
MCDD019	259673.4	7421136.9	92.9	-60	105	60.1	31	39.2	8.2	0.26	3.8	1	NSR	NSR	1.21
MCDD020	259841.2	7421119.7	101.9	-55	295	72	49	57.6	8.6	1.98	36	0.2	1	2	3.19
MCDD021	259817.9	7421097.6	104.6	-55	330	78.7	47.5	63	15.5	0.47	42	0.4	2.3	3.9	3.40
Including							50	55	5	1.14	119	1.1	6.9	11.3	9.66
MCDD022	259839.3	7421064.9	106.9	-90	360	129.4	44	49	5	0.97	39	0.2	0.6	0.8	1.81
and							117	120	3	0.13	10	0.2	0.7	2.2	1.48
MCDD023	259860.8	7421067.6	106.9	-90	360	165.5	123	127	4	0.11	8.7	0.4	0.8	1.7	1.48
MCDD024	259903.5	7421064.2	110.9	-90	360	140.95	103	105	2	0.14	9.4	NSR	0.8	1.6	1.08
and							112	115	3	1.7	7.7	NSR	0.2	1.3	2.00
and							119.7	130	10.3	0.21	8.7	0.1	0.8	1.4	1.15
MCDD025	259947.8	7421054.9	109.6	-90	360	144.4	84	116.9	32.9	0.21	4.9	NSR	0.2	0.4	0.43
MCDD026	259932.1	7421104.4	103.7	-90	360	123.3	32	87.3	55.3	0.1	2	NSR	NSR	0.3	0.22
MCDD027	260003.0	7421092.5	113.8	-90	360	132.5	105	114.1	9.1	0.15	3	0.4	NSR	NSR	0.53
MCDD028	260013.0	7421040.6	124.6	-90	360	188.8	153.7	185	31.3	0.11	3	NSR	NSR	NSR	0.11
MCDD029	260048.9	7421284.6	125.6	-90	360	207.75	93.9	122	28.1	0.1	2	0.3	NSR	NSR	0.39
MCDD030	260066.8	7421288.4	125.6	-90	360	166.4	96.4	131.7	35.3	2.75	4	1.4	NSR	NSR	3.59
including							96.4	101.9	5.5	9.91	13	4	NSR	NSR	11.90
MCDD031	260132.6	7421285.1	131.8	-90	360	200.0	166.3	168.4	2.1	NSR	NSR	0.17	0.16	0.53	0.42
and							185	186	1	0.17	11	0.42	NSR	NSR	0.64
MCDD032	260062.5	7421203.1	139.7	-90	360	154.84				Hole failed to reach target depth
MCDD033	260069.9	7421317.1	125.3	-90	360	157.1	130.8	149	18.2	0.09	2	0.53	NSR	NSR	0.60
MCDD034	259962.0	7421162.0	91.7	-80	246	114.6	7.5	63.8	56.3	0.47	8.9	0.35	0.18	0.46	1.03
Including							7.5	9.4	1.9	0.67	26.6	0.81	1.17	2.47	2.90
including							29	32	3	0.72	17	1.03	0.33	NSR	1.82
MCDD035	259696.1	7421324.3	91.6	-90	360	138.3				No Significant Intersections
MCDD036	259692.3	7421313.1	91.6	-90	360	152.9	121.9	123.2	1.25	0.41	6	3.42	NSR	NSR	3.70
MCDD037	259683.7	7421301.0	91.3	-90	360	159.1	121	145	24	NSR	NSR	0.17	NSR	NSR	0.16
including							123	124	1	0.12	2.2	0.9	NSR	NSR	0.99
Including							144	145	1	0.1	2.6	0.87	NSR	NSR	0.95
MCDD038	259970.0	7421174.0	91.7	-60	340	105.6	14.1	42	27.9	0.64	14.9	1.36	0.14	0.2	2.08
including							14.1	17.7	3.6	1.83	59.7	5.27	0.64	0.54	7.50
Including							28.7	31.7	3	0.69	19.9	2.44	NSR	NSR	3.09
and							68.9	101	32.1	0.28	18.8	0.82 NSR		0.67	1.45
including							68.9	72	3.1	0.56	16.2	2.21	0.23	0.62	3.05
within							68.9	88	19.1	0.39	11	1.23	NSR 0.79		1.91
MCDD039	259964.0	7421172.0	91.7	-65	100	119.9	39	47	8	1.04	69.4 NSR		0.73	1.16	2.11
and							97.5	98.5	1	0.66	10.6	1.14	0.53	2.46	2.87

Hole ID	MGAEast*	MGANorth*	mRL	Dip	MGAAzi*	MaxDepth	Mfrom	Mto	Int(m)	Au(g/t)	Ag(g/t)	Cu(%)	Pb(%)	Zn(%)	CuEq(%)
MCDD040	259965.0	7421172.0	91.7	-80	98	108.8	13	30.6	17.6	0.24	9.8	0.93	0.1	0.41	1.37
including							24	25	1	0.17	11.7	1.56	NSR	1.05	2.17
including							27.7	28.6	0.9	0.31	16.2	2.86	NSR	NSR	3.16
and							58	100	42	0.1195	2.17	0.152		NSR 0.147	0.32
Including							85	87	2	0.21	5.5	0.72	0.16	0.55	1.18
MCDD041	259975.0	7421180.0	91.7	-60	56	113.2	55.9	58.3	2.4	0.47	26.3	NSR	0.51	1.28	1.27
and							77.1	87	9.9	0.118	NSR	0.461	NSR	NSR	0.54
Including							83	85	2	0.21	2.6	1.39	NSR	NSR	1.54
MCDD042	259970.0	7421179.0	91.7	-60	11	129.3	52	58	6	2.01	35	1.09	0.48	0.93	3.48
and							68	95	27	0.099		NSR 0.358 NSR		NSR	0.43
Including							84.7	87.7	3	0.22	4	2.38	NSR	NSR	2.52
MCDD043	259957.0	7421167.0	91.7	-58	191	99.7	10.5	42	31.5	0.4	11.2	0.33	0.31	0.82	1.16
including							10.5	17	6.5	0.37	18.8	0.44	0.65	1.55	1.70
including							34	36	2	1.03	18.5	0.57	0.46	1.37	2.22
MCDD044	259977.0	7421187.0	91.7	-45	328	154.9	39.5	106	66.5	0.51	5.9	0.86	0.11	0.45	1.51
Including							41.3	66	24.7	0.693	8.21		0.239 0.222 0.51		1.13
Including							49.7	51.5	1.8	2.22	25.2	0.67	0.63	1.49	3.43
Including							62	64	2	0.97	14.5	0.63	0.34	1.15	2.07
Including							73	81	8	1.34	6.8	4.08	NSR	0.5	5.29
within							73	94.2	21.2	0.7	5.9	2.14	NSR	0.6	2.92
Pre-Collar 018 259746.6		7421296.6	96.0	-90	360	57	38	48	10	0.45	21.1	0.21	1	3.43	2.42
MCRC001	260069.2	7421244.8	138.0	-60	279	142	107	114	7	2.9	119	0.1	3.3	13.7	9.93
MCRC002	259740.3	7421278.8	99.2	-60	99	131	38	51	13	0.44	14.6	0.31	0.42	1.26	1.41
and							77	80	3	0.18	4.2	1.32	NSR	NSR	1.46
and							120	125	5	0.1	2.2	0.69	NSR	NSR	0.77
MCRC003	259726.2	7421280.1	98.4	-60	99	131	72	75	3	0.63	5.6	1.97	NSR	NSR	2.46
MCRC004	259708.2	7421253.0	96.6	-60	99	101	86	100	14	0.19	1.8	0.9	NSR	NSR	1.04
MCRC005	259734.9	7421234.1	90.8	-60	99	15						Hole Abandoned
MCRC006	259904.8	7421115.4	102.5	-60	19	59	16	40	24	1.02	22.9	0.28	0.57	0.36	1.60
MCRC007	259886.4	7421114.7	102.3	-60	19	43	18	31	13	2.28	39.1	0.23	0.92	0.43	2.84
MCRC008	259876.4	7421113.8	102.1	-60	19	40	22	40	18	0.26	4.7	0.19	0.51	0.45	0.77
MCRC009	260060.0	7421439.0	124.0	-90	360	220	161	190	29	0.1	3.6	1.52	NSR	NSR	1.58
including							161	163	2	0.28	10.5	3.98	NSR	NSR	4.17
including							173	175	2	0.15	8.5	3.88	NSR	NSR	3.96
including							179	181	2	0.12	4.7	3.53	NSR	NSR	3.56
MCRC010	260007.0	7421423.0	125.0	-90	360	134	113	134	21	0.44	1.9	2.32	NSR	NSR	2.62
including							119	127	8	0.78	2.8	4.2	NSR	NSR	4.72
MCRC011	259918.0	7421418.0	126.0	-90	360	170	188	212	24	0.07	1.3	1.27	NSR	NSR	1.30
and							132	148	16	0.21	7.3	0.09	0.61	1.55	1.13
including							136	138	2	0.52	16.1	0.28	2.25	6.82	4.25
MCRC012	260022.0	7421435.0	124.0	-70	10	215	137	206	69	0.55	2.5	1.62	NSR	NSR	2.03
including							137	153	16	0.75	6.2	4.6	NSR	NSR	5.11
including							157	159	2	0.9	3.6	4.03	NSR	NSR	4.66
including							163	167	4	2.34	3.5	2.09	NSR	NSR	3.93
and							172	174	2	3.86	2.4	1.13	NSR	NSR	4.20

Hole ID	MGAEast*	MGANorth*	mRL	Dip	MGAAzi*	MaxDepth	Mfrom	Mto	Int(m)	Au(g/t)	Ag(g/t)	Cu(%)	Pb(%)	Zn(%)	CuEq(%)
MCRC013	260098.0	7421457.0	124.0	-90	360	205	150	168	18	0.1	3.3	0.6	NSR	NSR	0.69
MCRC014	260128.7	7421415.5	125.6	-80	280	205	165	178	13	0.06	2	1.22	NSR	NSR	1.25
MCRC015	260103.0	7421479.0	124.0	-75	280	214	153	163	10	0.43	3	0.98	NSR	NSR	1.32
MCRC016	260090.5	7421392.4	125.5	-72	280	178	144	156	12	0.06	1	0.48	NSR	NSR	0.52
MCRC017	259742.0	7421294.0	100.0	-90	360	150	25	40	15	0.22	19.5	0.12	0.9	3.36	2.08
and							76	116	40	0.802		NSR 0.568 NSR		NSR	1.19
Including							79	83	4	0.05	1.8	1.47	NSR	NSR	1.48
Including							107	116	9	3.38	1	1.38	NSR	NSR	4.05
MCRC018	259795.0	7421300.5	104.0	-90	360	155	64	92	28	0.1657 8.682 0.442 0.336 0.626					0.99
Including							64	76	12	0.22	15	0.1	0.68	1.23	1.10
Including							84	92	8	0.13	4.8	1.37	NSR	NSR	1.47
MCRC019	259806.0	7421310.0	107.5	-60	180	140	64	78	14	1.6	33.3	0.36	1.1	1.82	2.98
MCRC020	259854.0	7421356.0	104.0	-90	360	100	84	95	11	0.24	30.2	0.03	0.16	0.42	0.70
and							145	147	2	0.17	3.1	0.94	NSR	NSR	1.07
MCRC021	259821.0	7421316.0	103.0	-65	80	125					Assays Pending
MCRC022	259722.0	7421272.0	98.0	-90	360	125					Assays Pending
MCRC023	259687.0	7421233.0	95.0	-65	90	115					Assays Pending
MCRC024	259673.0	7421235.0	95.0	-70	90	130					Assays Pending
MCRC025	259647.0	7421203.0	93.0	-60	120	100					Assays Pending
MCRC026	259731.0	7421209.0	103.0	-90	360	110					Assays Pending
MCRC027	259710.0	7421189.0	103.0	-90	360	85					Assays Pending
MCRC028	260017.0	7421434.0	124.0	-70	350	220					Assays Pending
MCRC029	260107.0	7421524.0	136.0	75	5	215					Assays Pending
MCRC030	260113.0	7421529.0	136.0	75	340	194					Assays Pending

Table 1: Significant intercepts from QMines drilling at Mt Chalmers to date.*

*Note MGA 94_56

• In reported exploration results, length weighted averages are used for any non-uniform intersection sample lengths. Length weighted average is (sum product of interval x corresponding interval assay grade), divided by sum of interval lengths and rounded to two decimal points.
• No top cuts have been considered in reporting of grade results, nor was it deemed necessary for the reporting of significant intersections.
• NSR = No Significant Result
• * Downhole intersections contained in this announcement in the vertical drill holes reported, represent true widths of the assayed mineralised intersections contained in Table 1.
• * Downhole intersections contained in the announcement in drill holes at ~60-degree dip represent approximately 87% true width of the assayed mineralised intersections contained in Table 1.

About QMines

QMines Limited (ASX:QML) is a Queensland based copper and gold exploration and development company. QMines vision is to become Australia's first zero carbon copper and gold developer. The Company owns 100% of four advanced projects covering a total area of 1,096km². The Company's flagship project, Mt Chalmers, is located 17km North East of Rockhampton.

Mt Chalmers is a high-grade historic mine that produced 1.2Mt @ 2.0% Cu, 3.6g/t Au and 19g/t Ag between 1898-1982. Mt Chalmers has a Measured, Indicated and Inferred Resource (JORC 2012) of 5.8Mt @ 1.7% CuEq for 101,000t CuEq¹.

QMines' objective is to grow its Resource base, consolidate assets in the region and assess commercialisation options. The Company has commenced an aggressive exploration program (+30,000m) providing shareholders with significant leverage to a growing Resource and exploration success.

Projects & Ownership

Mt Chalmers (100%) Silverwood (100%) Warroo (100%) Herries Range (100%)

QMines Limited

ACN 643 212 104

Directors & Management

ANDREW SPARKE Executive Chairman

ELISSA HANSEN (Independent) Non-Executive Director & Company Secretary

PETER CARISTO (Independent) Non-Executive Director (Technical)

JAMES ANDERSON General Manager Operations

GLENN WHALAN

Exploration Geologist (Competent Person – Exploration)

Shares on Issue

113,672,748

Unlisted Options

4,200,000 ($0.375 strike, 3 year term)

Compliance Statement

With reference to previously reported Exploration results and mineral resources, the Company confirms that it is not aware of any new information or data that materially affects the information included in the original market announcement and, in the case of estimates of Mineral Resources or Ore Reserves that all material assumptions and technical parameters underpinning the estimates in the relevant market announcement continue to apply and have not materially changed. The company confirms that the form and context in which the Competent Person's findings are presented have not been materially modified from the original market announcement.

This announcement has been approved and authorised by the Board of QMines Limited.

QMines Limited (ASX:QML)

Contact

Registered Address: Suite J, 34 Suakin Drive, Mosman NSW 2088 Postal Address: PO BOX 36, Mosman NSW 2088 Website: www.qmines.com.au

Telephone: +61 (2) 8915 6241 Email: info@qmines.com.au Peter Nesveda, Investor Relations Email: peter@qmines.com.au Andrew Sparke, Executive Chairman Email: andrew@qmines.com.au

JORC Code, 2012 Edition – Table 1 Mt Chalmers Mineral Resources

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 (e.g. 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 aslimiting thebroad meaning of sampling.•Include reference to measures taken to ensuresamplerepresentivityandtheappropriatecalibration of any measurement tools or systemsused.•Aspects of the determination of mineralisation thatare Material to the Public Report.•In cases where 'industry standard' work has beendone this would be relatively simple (e.g. '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 gold that has inherent sampling problems.Unusual commodities or mineralisation types (e.g.submarine nodules) may warrant disclosure ofdetailed information.	•QMINES continued drilling operations at Mt Chalmers,drilling 9 reverse circulation percussion (RC) holes for 1,711metres.•RC samples were collected at 1m intervals from an on-rigcyclone cone splitter with 2-3kg, or approximately 10% ofthe split sample saved in calico bags with the exceptionof duplicate samples with each being 1-2kg, orapproximately 5% of the total sample.•During the course of drilling, to avoid contamination, fourindividual calicos were placed in polyweave bags andsealed for delivery to the assay lab. Samples were sent byroad to ALS Laboratories in Brisbane, crushed, pulverisedand riffle split delivering 200g pulp for base metal andprecious metal assay.
Drillingtechniques	•Drill type (e.g.core, reverse circulation, open-holehammer, rotary air blast, auger, Bangka, sonic, etc)and details (e.g. core diameter, triple or standard	•RC drilling was completed by the company's KWLRC350rig with booster and auxiliary compressor and using 5m,102mm diameter RC rods and a 143mm percussion face

Criteria	JORC Code explanation	Commentary
	tube, depth of diamond tails, face-sampling bit orother type, whether core is oriented and if so, by whatmethod, etc).	sampling hammer.
Drillsamplerecovery	•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.	•Rock chips from each RC metre were collected in chiptrays and logged.•Over 95% of RC samples were dry with the remainingsamples beingwet samples close to the end of holeMCRC010 below the water table. This hole wasabandoned in mineralisation due to possible loss ofsulfides from saturated samples. Drilling techniques havesince improved to allow for almost entirely dry samples.•Drilling methods were consistent with current industrypractices.
Logging	•Whether core and chip samples have beengeologically and geotechnically logged to a level ofdetail to support appropriate Mineral Resourceestimation,miningstudiesandmetallurgicalstudies.•Whether logging is qualitative or quantitative innature. Core (or costean, channel, etc) photography.•The total length and percentage of the relevantintersections logged.	•All drilling was competently logged by Companygeologists with all logging data digitised electronicallyinto a Panasonic Toughbook.•Loggingcodeswereestablishedpriortocommencement of drilling operations by H & SConsultants and are a mixture of quantitative andqualitative data.•Geological information consists of lithology descriptions,alteration, mineralisation, veining, weathering etc.•All data is available in a digital format.•All chip trays have been digitally photographed andstored in the Company NAS drive.
Sub-samplingtechniquesandsamplepreparation	•If core, whether cut or sawn and whether quarter,half 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 andappropriatenessofthesamplepreparationtechnique.	•RC samples were collected from a cyclone with a conesplitter delivering 10% representative sampling per linearmetre drilled. Duplicate samples were collected every 25m and 75 m drilled in the drilling sequence with duplicatesamples being a 50-50% split sample from the same conesplitter.•ALS Laboratories dry the samples prior to crushing and

Criteria	JORC Code explanation	Commentary
	•Quality control procedures adopted for all subsampling stages to maximise representivity ofsamples.•Measures taken to ensure that the sampling isrepresentative of the in-situ material collected,includingforinstanceresultsforfieldduplicate/second-half sampling.•Whether sample sizes are appropriate to the grainsize of the material being sampled.	pulverising. All sample material from each RC samplesubmission is crushed and pulverized to a nominal 90%passing 75 µm giving a 200 g representative sample fromwhich a sub-sample of 30 g is taken for base metalanalysis and a 50 g charge for gold.
Qualityofassaydataandlaboratorytests	•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,theparametersusedindetermining the analysis including instrument makeand model, reading times, calibrations factorsapplied and their derivation, etc.•Nature of quality control procedures adopted (e.g.standards, blanks, duplicates, external laboratorychecks) and whether acceptable levels of accuracy(i.e. lack of bias) and precision have been established.	•All samples for assay were submitted to ALS Laboratoriesin Brisbane.•Ag, As, Ba, Cu, Pb, S and Zn were determined by ALS (MEICP61) by ICP-AES on a four-acid digest. Au wasdetermined using ALS method AA25 (fire assay with AASon a 30g pulp). Sample preparation and base metalanalysis was undertaken in Brisbane and Fire Assayundertaken by ALS in Townsville.•The Company submits batches to ALS from drillprograms as they come to hand. Reporting on QAQCresults for all drillhole samples submitted betweenFebruary 2021 and November 2021 has been undertakenby Lisa Orr of Orr and Associates, who found that QMines'QAQC is consistent with current industry practice for adrill program.•Duplicate samples of cone splits are inserted at 50mintervalsandareutilisedtomonitorlaboratoryreproducibility. With coefficients of variation under 31%there is no significant bias in assayed results fromduplicates assayed.•Certified Reference Materials (CRM) are supplied byOREAS and GEOSTATS Pty Ltd and are inserted at 20mintervals with suitable CRMs being used to monitorlaboratory accuracy. With252 out of 265 CRMs reporting

Criteria	JORC Code explanation	Commentary
		within 3 standard deviations of certified values a successrate of 95.1% was achieved.•Blank samples of barren gravel are inserted at 33mintervals.•Internal laboratory QAQC reports are delivered by ALSwith certification of assay method used and certifiedassay results. These results are delivered to the principalgeologist, database manager and the Company
Verification ofsampling andassaying	•The verification of significant intersections by eitherindependent or alternative company personnel.•The use of twinned holes.•Documentationofprimarydata,dataentryprocedures, data verification, data storage (physicaland electronic) protocols.•Discuss any adjustment to assay data.	•Since early 2021, all documentation and digitisation ofdata has been undertaken by the company databasemanager, Lisa Orr of Orr and Associates. The drill holedatabase is stored as an Access database and housedindependently in an external NAS drive and backed upin a cloud storage system.
Locationofdata points	•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.	•QMines has implemented a complete conversion by localmine surveyors of all historical drill collar surveys and localgridding utilised by previous explorers. The local work hasbeen validated by MINECOMP Surveying.•Conversion has been from local grids to GDA 94 MGAZone 56.•All drill hole collars listed in this release were picked up byhand held GPS with accuracy of +/-3m and these will belater picked up by and validated by the site surveyors.•The Company has flown a Digital Terrain Model (DTM)using drone survey technology.•The quality and accuracy of the DTM has been validatedand processed independently of the data capture byMINECOP Surveying.
Data spacinganddistribution	•Data spacing for reporting of Exploration Results.•Whether the data spacing and distribution issufficient to establish the degree of geological andgrade continuity appropriate for the Mineral	•The drill programs have been designed to validatehistorical drill hole data, expand the resource envelopeand make new discoveries.•Line and drill hole spacing is not applicable

Criteria	JORC Code explanation	Commentary
	Resource and Ore Reserve estimation procedure(s)and classifications applied.•Whether sample compositing has been applied.	•No composite sampling has been applied
Orientation ofdatainrelationtogeologicalstructure	•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 orientationand the orientation of key mineralised structures isconsidered to have introduced a sampling bias, thisshould be assessed and reported if material.	•The deposit is generally flat-lying and most drillholes arevertical to give an optimal intersection angle withmineralisation.•Angled holes from the current program have beenoriented to reach otherwise inaccessible targets.•Downhole intersections contained in this announcementin drill holesat for example ~60-degree dip representapproximately 87% true width of the assayed mineralisedintersections contained in Table 1 of this announcement.•There is no obvious sampling bias with the drillingorientation
Samplesecurity	•The measures taken to ensure sample security.	•Samples were collected directly from the cone splitterinto individual numbered calico sample bags, then 4calico bags are inserted into polyweave bags, sealed andtied. Polyweave bags were numbered in sequence andplaced in large bulka bags.•The bulka bags were then delivered by Company staff toa commercial freight depot in Rockhampton andshipped directly to the ALS Laboratory in Brisbaneovernight.
Auditsorreviews	•The results of any audits or reviews of samplingtechniques and data.	•Sampling techniques were established by the Companygeologist. Results were reviewed and validated by theCompany database geology manager.•Exploration results are not audited independently

Section 2 Reporting of Exploration Results

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

Criteria	JORC Code explanation	Commentary
Mineraltenementandlandtenure status	•Type,referencename/number,locationandownership including agreements or material issueswiththirdpartiessuchasjointventures,partnerships,overridingroyalties,nativetitleinterests, historical sites, wilderness or national parkand environmental settings.•The security of the tenure held at the time ofreporting along with any known impediments toobtaining a licence to operate in the area.	•QMines Pty Ltd has two 100% owned subsidiaries, DynastyGold Pty Ltd and Rocky Copper Pty Ltd, through which theCompany has a 100% beneficial interest in the Mt ChalmersProject. The Mt Chalmers Project is held in EPM 25935 andEPM 27428 located 25 kilometres east of the City ofRockhampton in coastal central Queensland, Australia. Theproject covers an area of historic gold and copper mining,which comprises an area of 198 km2.•The Project is free and unencumbered by either jointventures or any other equity participation of the tenement.•QMines has yet to negotiate any landowner provisions orGovernment royalties or yet to commence environmentalstudies within the project area. Currently the QueenslandDepartment of Natural Resources & Mines is conductingremediation works on minor acid mine waste draining froma mineralised mullock dump.•All the tenements are for "all minerals" excepting coal.•Note that the granted tenements allow QMines to carry outmany of their planned drilling programs under relevantaccess procedures applying to each tenement.•All the EPMs are subject to the Native Title ProtectionConditions with respect to Native Title.•Declared Irrigation Areas, Declared Catchment Areas,Declared Drainage Areas, Fossicking Areas and State Forestare all land classifications that restrict exploration activity.These do not affect QMines' main prospects but may haveimpacts on regional programs in places.•All annual rents and expenditure conditions havebeen paidand QMines has been fully compliant

Criteria	JORC Code explanation	Commentary
Explorationdonebyother parties	•Acknowledgment and appraisal of exploration byother parties.	•INAL, CEC and Geopeko were generally recognized ashighly competent exploration companies that usedappropriate techniques for the time. Written logs andhardcopy sections of their work are considered good.•Federation was a small explorer that was entirely focussedon defining the Mt Chalmers resource. They used a verycompetent geologist, Alex Taube, for the drilling program.Alex Taube is widely respected for his knowledge aboutVHMS deposits in North Queensland
Geology	•Deposit type, geological setting and style ofmineralisation.	•The Mt Chalmers mineralization is situated in the earlyPermian Berserker Beds, which occur in the fault-boundedBerserker Graben, a structure 120 km long and up to 15 kmwide. The graben is juxtaposed along its eastern marginwith the Tungamull Fault and in the west, with theParkhurst Fault.•The Berserker Beds consist mainly of acid to intermediatevolcanics, tuffaceous sandstone and mudstone (Kirkegaardand Murray 1970). The strata are generally flat lying, butlocally folded. Most common are rhyolitic and andesiticlavas, ignimbrites or ash flow tuffs with numerous brecciazones.RocksoftheBerserkerBedsareweaklymetamorphosed and, for the most part, have not beensubjected to major tectonic disturbance, except for normalfaults that are interpreted to have developed during andafter basin formation.•Late Permian to early Triassic gabbroic and dioriticintrusions occur parallel to the Parkhurst Fault. Smallerdolerite sills and dykes are common throughout the regionand the Berserker Beds.•ResearchershaveshownthattheMtChalmersmineralization is a well-preserved, volcanic-hosted massive-

Criteria	JORC Code explanation	Commentary
		sulphide ("VHMS –Kuroko style") mineralized systemcontaining zinc, copper, lead, gold and silver. Mineraldeposits of this type are syngenetic and formedcontemporaneously on, or in close proximity to, the sea floorduring the deposition of the host-rock units deposited fromhydrothermal fumaroles, direct chemical sediments orreplacements(massivesulphides),togetherwithdisseminated and stringer zones within these host rocks.•The oldest rocks in the area, the 'footwall sequence' ofpyritic tuffs, are seen only in the Mt Chalmers open pit andin drill holes away from the mine. The rock is usually a lightcoloured eutaxitic tuff with coarse fragments, mainly ofchert, porphyritic volcanics and chloritic fiamme (fiammeare aligned, "flame-like" lenses found in welded ignimbriteand other pyroclastic rocks and indicate subaerialdeposition. Eutaxitic texture, the layered or banded texturein this unit, is commonly caused by the compaction andflattening of glass shards and pumice fragments aroundundeformedcrystals).Thealteration(silicification,sericitization and pyritization) of this basal unit becomesmore intense close to mineralization.•The'mineralizedsequence'overlyingthe'footwallsequence' consists mainly of tuffs, siltstones and shales andcontains stratiform massive sulphide mineralization andassociated exhalites: thin barite beds, chert and occasionallyjasper, hematitic shale and thin layers of beddeddisseminated sulphides. Dolomite has been recorded in themineralized sequence close to massive sulphides. Thissequence represents a hiatus in volcanic activity and aperiod of water-lain deposition.

Criteria	JORC Code explanation	Commentary
		•The 'hanging wall sequence' is a complex bedded series ofunaltered crystal and lithic rhyolitic tuffs and sedimentswith breccia zones and occasional chert and jasper.•A mainly conformable body of andesite, ranging from 10 mto 250 m thick, intrudes the sequence; it usually occurs justabove the 'mineralized sequence'. A quartz-feldsparporphyry body intrudes the volcanic sequence and in placesintrudes the andesite.•The rocks in the mine area are gently dipping, about 20o tothe north in the Main Lode mine area and similarly dippingsouth at the West Lode: the predominant structure is abroad syncline trending north-north-west. Slaty cleavage isstrongly developed in some of the rocks, notably insediments and along fold axes. Such cleavage is prominentin areas close to the mineralization.•Doming of the rocks close to the mineralization has beeninterpreted by detailed work in the open cut to be largelydue to localized horst block-faulting (Taube 1990), but thedoming might also be a primary feature in part. Steep dipsare localized and usually the result of block faulting. TheMain Lode outcrop and West Lode outcrop are variablysilicified rocks which, by one interpretation, may have beenpushed up through overlying rocks in the manner of a MontPelée spine (Taube 1990), but in any case, form a dome ofrhyolite / high level intrusions of the Ellrott Rhyolite. Thesurrounding mineralized horizon is draped upon the flanksof domal structures.
DrillholeInformation	•A summary of all information material to theunderstanding of the exploration results including atabulation of the following information for allMaterial drill holes:	•Exploration Results are reported in the body of the relevantannouncements in Table 1

Criteria	JORC Code explanation	Commentary
	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 understandingof the report, the Competent Person should clearlyexplain why this is the case.
Dataaggregationmethods	•InreportingExplorationResults,weightingaveraging techniques, maximum and/or minimumgrade truncations (e.g. cutting of high grades) andcut-off grades are usually Material and should bestated.•Where aggregate intercepts incorporate shortlengths of high grade results and longer lengths oflow grade results, the procedure used for suchaggregation should be stated and some typicalexamples of such aggregations should be shown indetail.•The assumptions used for any reporting of metalequivalent values should be clearly stated.	•In reported exploration results, length weighted averagesare usedfor any non-uniform intersection sample lengths.Length weighted average is (sum product of interval xcorresponding interval assay grade), divided by sum ofinterval lengths and rounded to two decimal points.•No top cuts have been considered in reporting of graderesults, nor was it deemed necessary for the reporting ofsignificant intersections.•No metal equivalent values have been reported.•Mt Chalmers VHMS is a polymetallic base and preciousmetal mineral system, cut off grades used by the Companyincalculating mineralized intersections are 2,500 ppm Cu,0.1 ppm Au and 1 ppm Ag, 0.5% Zn and 0.5% Pb.•Metal Rice Assumptions and Recovery data used incalculating the Copper Equivalent has been reported to themarket in December 2021 and is contained in the MtChalmers Resource Upgrade Report and can be seen on theCompany Websitehttps://wcsecure.weblink.com.au/pdf/QML/02460632.pdf
Relationshipbetween	•These relationships are particularly important in the •	At Mt Chalmers, the drilling has generally intersected themineralization at high angles.

Criteria	JORC Code explanation	Commentary
mineralisation widths andinterceptlengths	reporting 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 (e.g. 'down hole length, true width not known').	•The majority of holes drilled at Mt Chalmers Copper Projectare vertical in nature.•Holes drilled on other dips are reported in the SignificantIntercepts table. True widths in e.g. 60-degree dipping holesare not reported. True width at 60 degrees is approximately87% of the down hole intersection.
Diagrams	•Appropriate maps and sections (with scales) andtabulations of intercepts shouldbe included for anysignificant discovery being reported These shouldinclude, but not be limited to a plan view of drill holecollar locations and appropriate sectional views.	•Maps, sections, mineralized intersections, plans and drillcollar locations are included in the body of the relevantannouncement.
Balancedreporting	•Where comprehensive reporting of all ExplorationResults is not practicable, representative reporting ofboth low and high grades and/or widths should bepracticedtoavoidmisleadingreportingofExploration Results.	•Table 1in the body of the announcement
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,geotechnicalandrockcharacteristics;potentialdeleteriousorcontaminating substances.	•CEC and Geopeko completed some brownfields explorationto assist with defining the resource including InducedPolarization surveys and Sirotem (electromagnetic method)surveys.•Federationconcentratedondefiningtheresourceestimates.•No other exploration data is considered meaningful at thisstage.•In 2021 QMines digitized the results of soil geochemicalgrids obtained from the Geological Survey of Queenslandconsisting of 19,000 samples collected by various workersfor its use in ongoing target generation.•INAL completed greenfields exploration in the 1960's and

Criteria	JORC Code explanation	Commentary
		1970's. Exploration included geological mapping, soil androck chip sampling, costeaning and rotary percussiondrilling
Further work	•The nature and scale of planned further work (e.g.tests for lateral extensions or depth extensions orlarge-scale step-out drilling).•Diagrams clearly highlighting the areas of possibleextensions,includingthemaingeologicalinterpretations and future drilling areas, providedthis information is not commercially sensitive.	•Infill and resource expansion drilling is being undertaken toupgrade and potentially expand the current resourceestimates.