REACH RESOURCES LIMITED — Interim / Quarterly Report 2021

Oct 27, 2021

SEPTEMBER 2021 QUARTERLY ACTIVITIES REPORT

Reach Resources Limited (ASX:CVS) ("the Company" or "Reach Resources"), (formerly Cervantes Corporation Limited), provides Its activities report for the quarter ended 30 September 2021.

SUMMARY

Definition drilling completed at Primrose Gold Project

• o 47 holes for ~3,060m of Reverse Circulation (RC) drilling completed
• o First test of the deep shear-hosted "primary gold mineralisation"
• o Drilling to verify historic Blue Heaven gold mineralisation
• o Mineralisation extensions tested
• o Previously untested "lines of lode" drilled, and
• o Critical unassayed sections of historic diamond drill holes submitted for scanning and cutting in preparation for assaying

First assays received from Primrose Gold Project definition drilling programme

• o Initial 399 assays received announced 23 September 2021. 2,900 assays remain pending
• o Historic intercepts confirmed within the Blue Heaven Exploration Target by verification drilling
• o Mineralisation extensions uncovered to the west of the known Blue Heaven gold deposit
• o Potential mineralisation extensions indicated along strike of the known gold lodes in the Exploration Target
• o Significant gold intercepts from the initial 399 assays received include (down hole widths, true width unknown):
  • 3m @ 8.85g/t Au in hole CVSRC047 from 75m
  • 3m @ 3.33g/t Au in hole CVSRC038 from 15m
  • 3m @ 3.28g/t Au in hole CVSRC045 from 24m
  • 1m @ 26.3g/t Au in hole CVSRC038 from 93m
  • 3m @ 3.76g/t Au in hole CVSRC039 from 82m
  • 1m @ 6.85g/t Au in hole CVSRC039 from 122m
  • 1m @ 21.73g/t Au in hole CVSRC040 from 34m
  • 3m @ 3.81g/t Au in hole CVSRC042 from 66m

PRIMROSE GOLD PROJECT

Reach Resources commenced a definition drilling programme on its flagship Primrose Gold Project in the Yalgoo district of WA (Figure 1), as announced on 16 June 2021. The campaign of approximately 3,000m of Reverse Circulation (RC) drilling was designed to focus on the Blue Heaven Exploration Target (ASX release on 16 July, 2020), an untested primary gold mineralisation target, and a number of as yet untested historic gold lodes.

On 30 July 2021, Reach Resources announced the completion of 47 RC holes for approximately 3,060 metres at Primrose.

This was a major step towards the Company achieving its goal of advancing the Blue Heaven Exploration target and defining a JORC resource estimate.

Figure 1 Primrose Gold Project location.

Blue Heaven

Eight RC holes were completed as verification drilling of historic RC drill holes on the Blue Heaven Prospect. These were to support the conversion of the Exploration Target1 of 170,000 to 520,000 tonnes at 2.2 to 4.5g/t gold (ASX announcement, 16 July, 2020) to a JORC resource estimate. The potential quantity and grade of an Exploration Target estimate is conceptual in nature, as there has been insufficient reliable exploration data to estimate a Mineral Resource and it is uncertain if further exploration will result in the estimation of a Mineral Resource.

An additional 33 holes were drilled to in-fill areas within the Exploration Target zone and to test for extensions of the known gold mineralisation.

Figure 3 is a summary of the location of these holes, while Table 1 tabulates collar locations. These were surveyed by DGPS to better than 1cm accuracy.

Six holes were drilled as new target exploration holes. This included the first drill testing of the conceptual "primary gold" mineralisation as interpreted by CSA Global for the previous operator, Paynes Find Gold Ltd (PNE). RC hole, CSVRC81 was designed to test for Primrose Shear hosted, large tonnage/moderate grade gold mineralisation (Figure 2). In addition, this hole provides a test of possible ultramafic-hosted gold mineralisation to the west of the Primrose Shear. Nearby historic hole PFRC116 intersected 12m at 6.62g/t gold from 10m on the west side of the Primrose Shear (ASX Announcement 16 June 2021).

Primrose Shear Conceptual Gold Target

Prior to the previous explorer exiting the field, CSA Global was commissioned to undertake a review of the geological data for the purpose of improving the understanding of the structural and lithostratigraphic controls on mineralisation in this gold field. CSA recognised two gold mineralising events:

• 1. Shear related quartz veining with high grade gold tightly bound within segmented and boudinaged quartz veins within the gneiss lithologic units – the main target for the historic mining activities. This is interpreted to represent remobilised gold.
• 1. Moderate grade, but more consistent gold mineralisation along the sheared contact between mafic amphibolite and gneiss that is interpreted as the primary gold mineralising event.

1 Mr Philip Jones MAusIMM is the Competent Person responsible for the exploration target. The Company is not aware of any new information or data that materially affects the information included in the ASX release of 16th July 2020 and the form and context in which the exploration target was presented have not been materially modified.

Figure 2 Primrose Shear conceptual gold target.

The previous explorer focused on the first style and it is this style that represents all of the historic Paynes Find gold mines. These mines are developed on secondary structures associated with the Primrose Shear. Over 37 historic mines occur within the area. The second style, interpreted to be closely associated with the Primrose Shear itself (Figure 2), has not been well tested. Historic drill hole PFRC116 may possibly represent this style, having a thicker intercept with moderate grade. This style has been overlooked up until now as it is not generally associated with quartz veining.

Exploration Drilling

RC holes were drilled as initial tests of the Marigold Trend, Sweet William Blue Bell, Aster, and Havela Lines of Lode, none of which have previously been drilled before (Figure 3).

Recorded production from the Marigold was 1,780oz at an in situ grade of 15g/t gold, the Blue Bell produced 392oz at 34g/t gold, and Sweet William 4,600oz at 35g/t gold. While no records exist for the Astor South and Havela the Aster mine further north produced 3,281oz at 18g/t gold.

Discussion of results to date

Of the 399 assays received, only 7 were below detection limited with the average of all assays being 0.3909g/t Au, reflecting the highly auriferous nature of this prospect. Gold intersections over 1g/t are summarised in Table 2.

Sampling was done on three metre composites except where drilling duplicated historically defined gold lode positions where one metre sampling was used. Significant three metre samples have been resubmitted for assaying at one metre intervals.

The correlation between gold mineralisation intersected in the new holes and the historic holes that were twinned is variable, reflecting the nuggety style of the gold mineralisation here. In some cases, new gold lines have been defined, some of which is to the west of the Primrose Shear and represents previously unrecognised mineralisation. The western side of the shear has been poorly explored in the past and represents potential for additional gold discovery. This will be further assessed when the data is available.

On the eastern side of the Primrose Shear gold mineralisation is hosted in late stage steeply west dipping quartz veins hosted by the Paynes Find Gneiss. The gold lodes occur as steeply southerly plunging shoots within these veins. On the western side of the shear, the gold appears to be hosted in sheared ultramafics. The controls on this style are yet to be determined (Figure 4).

Unassayed diamond core from historic drilling, approximately 119 trays of core, representing about 530m, has been marked for further assessment. Significant portions of the diamond cores previously drilled by PNE, had never been assayed. These are dominated by the shallow portions of the six holes PNE drilled. PNE's interest was in the deeper quartz lode intercepts, ignoring the possibility of shallower ultramafic hosted gold.

Inspection of the core indicates sulphides, alteration, and quartz veining is present in those shallower portions. Drill hole PFGDD001 is the critical hole; this hole has 148m of unassayed core. The core has been assessed and has been submitted for core cutting and assaying.

Figure 3 Locations of holes drilled during the July, 2021 campaign.

Reach Resources Limited | Level 4, 216 St Georges Terrace, Perth WA 6000 | P: +61 6268 2641| web:reachresources.com.au Email: admin@reachresources.com.au | ABN 79 097 982 235 | ASX:CVS

Figure 4 Drill cross section 6764015N. Refer to Figure 3 for new drill hole locations. This is a preliminary interpretation pending receival of all results.

HOLE ID	Easting (m)	Northing	Elevatio	Total	Nominal	Nomina
	GDA94	(m) GDA94	n AHD71	Depth (m)	Inclination	l
	MGA Zone50	MGA Zone50				Azimuth
CVSRC038	566740.18	6764004.54	351.708	102	-60	60
CVSRC039	566766.28	6764015.28	350.981	138	-60	90
CVSRC040	566835.74	6764025.24	349.352	42	-60	90
CVSRC041	566749.34	6763983.06	351.973	78	-60	90
CVSRC042	566792.51	6763954.77	351.528	126	-60	90
CVSRC043	566855.11	6763902.02	350.661	54	-60	90
CVSRC044	566825.92	6763874.59	352.664	78	-60	90
CVSRC045	566873.82	6763825.46	351.451	78	-60	90
CVSRC046	566938.85	6763875.11	348.526	90	-60	90
CVSRC047	567046.78	6763788.28	346.356	78	-60	90
CVSRC048	567003.89	6763789.09	346.663	78	-60	90
CVSRC049	567013.18	6763809.69	346.883	78	-60	90
CVSRC050	567024.13	6763836.68	346.916	90	-61	40
CVSRC051	566992.72	6763831.04	347.246	97	-60	90
CVSRC052	567018.98	6763875.84	347.797	90	-60	90
CVSRC053	566997.15	6763935.67	348.556	102	-60	90
CVSRC054	566853.92	6764013.40	348.120	42	-60	38
CVSRC055	566848.62	6764001.89	348.306	48	-60	86
CVSRC056	566799.88	6764012.44	350.372	90	-60	90
CVSRC057	566716.62	6764098.57	350.487	90	-60	90
CVSRC058	566747.51	6764168.06	349.943	78	-60	90
CVSRC059	566771.54	6764222.46	349.102	36	-60	90
CVSRC060	566725.70	6764227.74	349.431	84	-60	90
CVSRC061	566758.90	6764286.46	348.613	84	-60	90
CVSRC062	566715.46	6764287.97	348.379	96	-60	90
CVSRC063	566775.05	6764298.79	348.462	30	-60	90
CVSRC064	566773.65	6764303.85	348.358	30	-60	90
CVSRC065	566772.68	6764309.34	348.255	30	-60	90
CVSRC066	566772.37	6764313.98	348.165	30	-60	90
CVSRC067	566769.96	6764319.81	348.125	36	-60	90
CVSRC068	566652.63	6764370.91	349.364	156	-60	337
CVSRC069	566643.15	6764196.28	349.809	30	-60	90
CVSRC070	566609.33	6764205.84	349.847	48	-60	90
CVSRC071	566576.05	6764219.06	349.872	108	-60	90
CVSRC072	566571.22	6764237.77	349.921	90	-60	90
CVSRC073	566577.60	6764559.78	351.828	36	-60	90
CVSRC074	566576.61	6764565.00	351.699	36	-60	90
CVSRC075	566576.48	6764569.81	351.692	36	-60	90
CVSRC076	566575.37	6764575.01	351.643	36	-60	90
CVSRC077	566572.63	6764578.49	351.739	36	-60	90
CVSRC078	566512.01	6764680.36	353.151	30	-60	56
CVSRC079	566575.91	6764133.15	350.541	48	-60	90
CVSRC080	566580.23	6764146.04	350.379	78	-60	90
CVSRC081	566496.80	6764163.68	350.917	216	-60	90
CVSRC082	567022.91	6764290.05	346.172	30	-60	90
CVSRC083	567396	6763710	340	30	-60	60
CVSRC084	567464.41	6763478.19	340.397	30	-60	90

Hole	Interval	Gold grade	From	Withinbroader	GoldGrade	From
	m	g/t	m	interval m	g/t	m
CVSRC038	3	3.330	15
	1	2.309	90
	1	26.302	93	2	14.040	93
	1	1.020	98
CVSRC039	1	1.000	68
	3	3.755	82	6	2.601	82
	1	6.846	122
CVSRC040	1	21.726	34	3	7.960	34
	1	2.414	41	2	1.487	40
CVSRC041	3	1.871	54
CVSRC042	6	0.791	30
	3	3.810	66
CVSRC044	3	1.185	51
CVSRC045	6	1.435	12
	3	3.275	24	6	2.054	24
	3	1.320	33
CVSRC047	3	1.354	27
	3	8.850	75
CVSRC048	3	1.156	69	6	0.894	69

Table 2 Significant gold intersections received to date.

CORPORATE

The Notice of Annual General Meeting was mailed to shareholders on 17 September 2021. The Annual General Meeting was subsequently held on 25 October 2021.

The Company retains the potential for deferred consideration relating to the sale of Albury Heath, being an additional $400,000 and further $200,000 of cash or Westgold shares, if the Albury Heath project achieves performance targets, as outlined in the 23 April 2020 ASX release.

MATERIAL EVENTS SUBSEQUENT TO THE END OF QUARTER

The Company changed its name to Reach Resources Limited (ASX: CVS), effective 26 October 2021.

GUIDANCE NOTE 23 DISCLOSURES

Details of mining exploration activities

Details of exploration activities during the quarter are set out above.

The $458,000 of exploration and evaluation expenditure largely comprises drilling costs, geological staff salaries and consulting fees.

Details of mining production and development activities

No production and development activities were undertaken during the quarter.

Details of tenement activities

The tenement schedule included below shows all holdings and any change for the Company and its subsidiaries.

Details of related party payments

The aggregate amount of payments to related parties and their associates included in the current quarter cash flows from operating activities was $41,000, comprising Directors fees and superannuation.

This announcement has been authorised by the Board of Reach Resources Limited.

-ENDS-

For Further information please contact:

Chris Achurch Company Secretary (08) 6268 2641 admin@reachresources.com.au

About Reach Resources Limited

Reach Resources is an emerging gold explorer and aspiring gold miner. It has built up a portfolio of gold properties in a well-known and historically producing gold district with a strategy to apply novel exploration and development thinking. The company is committed to maximising shareholder value through the development of those opportunities.

About the Primrose Project

The Primrose Project covers in excess of 8km of the highly gold mineralised Primrose Shear in the Murchison District of the Eastern Goldfields, Western Australia. Over 37 gold mines operated in this field from 1911 till 1982. Some 79,915 ounces of gold was mined at an average grade of 28g/t during this period. It is generally accepted that significantly more gold than this was won from alluvial and unreported production.

Reach Resources controls mining leases and prospecting licences that cover the majority of this historic gold field. A large database of drilling, surface geochemistry, geological, and geophysical data has been assembled to allow the field to be better understood than at any time in its history.

Competent Person's Statement

The details contained in this report that pertain to exploration results are based upon information compiled by Mr Marcus Flis, Technical Director of Reach Resources Limited. Mr Flis is a Fellow of the Australasian Institute of Mining and Metallurgy (AusIMM) and has sufficient experience in the activity which he is undertaking to qualify as a Competent Person as defined in the December 2012 edition of the "Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves" (JORC Code). Mr Flis consents to the inclusion in the report of the matters based upon his information in the form and context in which it appears.

No New Information

Except where explicitly stated, this announcement contains references to prior exploration results, all of which have been cross-referenced to previous market announcements made by the Company. The Company confirms that it is not aware of any new information or data that materially affects the information included in the relevant market announcements.

Forward Looking Statement

This report contains forward looking statements concerning the projects owned by Reach Resources Limited. If applicable, statements concerning mining reserves and resources may also be deemed to be forward looking statements in that they involve estimates based on specific assumptions. Forward-looking statements are not statements of historical fact and actual events and results may differ materially from those described in the forward looking statements as a result of a variety of risks, uncertainties and other factors. Forward looking statements are based on management's beliefs, opinions and estimates as of the dates the forward looking statements are made and no obligation is assumed to update forward looking statements if these beliefs, opinions and estimates should change or to reflect other future developments.

JORC Code, 2012 Edition

Section 1 Sampling Techniques and Data (Criteria in this section apply to all succeeding sections.)

Criteria	Commentary
Samplingtechniques	Reverse circulation (RC) drilling samples were collected through a rig-mounted cyclone withcollected in one metre intervals. Whole of 1 metre samples were collected. Compositing wasdone by the lab using a splitter. RC drill chips (from each metre interval) were examinedvisually and logged by the geologist.
	Any visual observation of alteration or of mineralisation was noted on the drill logs. Theprospect is quartz related gold mineralisation; care was taken to log quartz content of thechips.
	Duplicate samples comprise approximately 4% of total samples taken (ie one duplicatesubmitted for every 25 samples).
	A company contract geologist supervised the drilling and sampling to ensurerepresentativeness. Drilling was done by industry standard techniques.
	Duplicates, were submitted to ensure assaying reliability and accuracy. Laboratory standardsand blanks were used to monitor lab contamination and accuracy.
	Hole locations were surveyed by hand held GPS and subsequently by DGPS to better than 1cmaccuracy.
	No downhole surveys were undertaken using a gyroscope.
Drillingtechniques	Drilling was by Reverse Circulation (RC) with NQ sized bit and rods.
Drill samplerecovery	RC sample recovery and sample quality was recorded via visual estimation of sample volumeand condition of the drill spoils.
	RC sample recovery was deemed as good with no loss of circulation reported.
	RC sample recovery was not problematic as the samples were dry.
	Relationships between recovery and grade are not evident and are not expected given thegenerally excellent and consistently high sample recovery.
	RC results are not utilised for Mineral Resource estimations.
Logging	RC chips were geologically logged at one metre intervals into a digital database that was keptwith sample numbers.
	Logging is qualitative.
Sub-samplingtechniques and	One metre samples were collected from a cyclone into a plastic bucket and then laid out onthe ground in rows of 10.
samplepreparation	Three metre composites were used at depths of reduced interest or indications (eg, graniteintercepts may be sampled at three metres, sericite schists and quartz bearing intercepts atone metre). For the 2021 drilling, the lab was contracted to undertake compositing using arotary splitter.
	Mineralisation style is late stage quartz veins.
	The one metre samples are likely to downgrade actual grades intersected, but arecommensurate with minimum mining requirements; sample size is considered appropriate forresource estimation work.

Criteria	Commentary
Quality of	Fire assay is a total digest technique and is considered appropriate for gold.
assay data and	Duplicates of 1 in every 25 samples were submitted.
laboratorytests	The lab inserted random pulp duplicates. Certified reference standards and blanks wereinserted by the rig geologist into the sample run.
	Accuracy and precision levels have been determined to be satisfactory after analysis of theseQA/QC samples.
Verification ofsampling andassaying	Analysis was by fire assay using Intertek's FA50/OE procedure: samples were pulverised tominus 75 µm before a split of 50g was taken and analysed using standard Fire Assayprocedures. Assay accuracy is 0.005g/t gold. The method is an accepted industry analyticalprocess appropriate for the nature and style of mineralisation under investigation.
	Eight RC holes are twinned on historic holes.
	No adjustments were made to assay data.
Location of	Drill sites have been located in 3D using a DGPS unit with an accuracy of +/-0.01m.
data points	The drilling co-ordinates are all in GDA94 MGA Zone 50 co-ordinates.
	Azimuth was set by hand held compass there being no intensely magnetic rocks in the area.
	Drill hole inclination is set by the driller using a clinometer on the drill mast and checked bythe geologist prior to commencement of drilling.
	Hole trajectory was measured by a gyroscopic downhole unit recording every 10cmdownhole.
Data spacing	RC holes were not placed on a grid.
anddistribution	Together with historic data, the data spacing and distribution will be sufficient to establish thedegree of geological and grade continuity appropriate for the Mineral Resource and OreReserve estimation procedure(s) and classifications applied.
Orientation of	Drilling followed the geometry of existing holes.
data in relationto geological	Previous drilling defined the strike and dip of ore zones. Current drilling utilised thatinformation.
structure	It is not anticipated that, on current interpretation, any bias has been introduced to thesampling.
Samplesecurity	Samples were collected in calico bags with sample number tickets included in each bag andthe same identification posted externally.
	Samples were delivered to the lab by a company representative using commercial transportservices.
Audits orreviews	Standards, blanks, repeats, and check assays are undertaken to ensure data robustness.

Section 2 Reporting of Exploration Results. (Criteria listed in the preceding section also apply to this section.)

Criteria	Commentary
Mineraltenement and	Exploration results relate to work carried out over a package of tenements comprising miningand prospecting leases.
land tenurestatus	The tenements are 100% owned and controlled by Reach Resources Limited.All tenements and leases are currently in good standing with DMP with no knownimpediments to further exploration or development.

Reach Resources Limited | Level 4, 216 St Georges Terrace, Perth WA 6000 | P: +61 6268 2641| web:reachresources.com.au Email: admin@reachresources.com.au | ABN 79 097 982 235 | ASX:CVS

Criteria	Commentary
Exploration	Historical drill holes exist at the project area.
done by otherparties	In early 1911, Thomas Payne found gold at what would become the Pansy lease, and shortlyafter more gold on what would become the Carnation lease on the main Paynes Findgoldfield.
	The field was operated continuously from 1911 to 1941, with interruptions during the FirstWorld War period and the 1920's. Leases were gradually consolidated until around six majormines produced the most output. After World War II it was operated by lone prospectors,and later the local Taylor family who conducted small scale gold mining until 2010 when theysold the leases to Paynes Find Gold Limited.
	From 1911 to 1918 the field produced 23,193 oz from 20,510 tonnes of ore, with a further575.72 oz from dollied gold and specimens. In 1939 it was reported since 1911 to that timethe field had produced 56,946 oz of gold from 59,898 tonnes of ore at an average calculatedgrade of 28.6 g/t Au.
	The main historic mines 5 km north-west of Paynes Find (and starting closest to the town) areGoodingnow, Mariposa, Havela/Sumpton, Princess Mary, Aster Consolidated, Oversight,Oversight North, Lakeview West, Trey Bit, Paynes Future, Orchid, Carnation Alluvials, SweetWilliam, Paynes Find/Taylor, Margarite, Marigold, Adeline and Bluebell. Goodingnow,Carnation and Orchid were the most active and largest producers. South-east of Paynes Findare Pansy, Pansy North, Daffodil and Gharrock. Daffodil has been the most recently mined,and its mullock plateau can be seen east of the roadhouse.
	Since that time, the following activities are noted:
	1983 Geological mapping by the GSWA
	1985 G.R.Dale & Assoc undertook surface and underground exploration.
	1987 Exploration of the Carnation Gold Mine as well as sampling other old mine workingsincluding Blue Heaven, Leschenaultia, Romes, Carnation, Daphne, Scadden(extensions), Daisy, Primrose, Sweet William, Kowhai, Horseshoe, Wattle, Marigold,Orchid by Falcon Australia Ltd They also undertook drilling.
	1986-7 Forsayth NL undertook field inspections, aerial photograph interpretation and drillingprogram.
	1998-8 Kirkwood Gold NL drilled two holes on M59/10, one diamond and one RC for 115.9mand 46m respectively (PFRCDD1, PFRC5). Three RC drill holes (PFRC2-4) were drilledon M59/244 for a total of 85m. A fourth hole (PRFCDD1) was drilled with an RC collar(58m) and diamond drilling 9.3m. All four holes returned anomalous gold values withthe most significant being one metre at 23.9g/t Au from 55m in PFRC4.
	2002 Hallmark Mining Limited undertook drilling with the aim of testing high-grade goldshoots below old workings for depth extensions.
	2010-7 Paynes Find Gold Ltd carried out detailed geological mapping (Fitton), Phase 1 andPhase 2 RC drilling (that forms the basis of the exploration target estimate), structuralmapping and interpretation, MMI survey.
	2017-19 Reach Resources undertook a re-interpretation of the aeromagnetic data, audit andverification of the drillhole database, reconnaissance aircore drilling, and surfacegeochemical surveys.
	2020: Reach Resources undertook RC drilling in the Blue Heaven area and calculated anExploration Target of 170,000 to 520,000 tonnes at 2.2 to 4.5g/t gold (ASX release: 16July, 2020).
Geology	The historic mineralisation consists of major auriferous quartz lodes in the Paynes FindGneiss. The lodes are subparallel to the regional Primrose Shear that occurs to the west andare interpreted as classic flower structures emanating from that shear. The gold occurs assouth plunging shoots within the quartz lodes which tend to steepen towards the shear. The

Reach Resources Limited | Level 4, 216 St Georges Terrace, Perth WA 6000 | P: +61 6268 2641| web:reachresources.com.au Email: admin@reachresources.com.au | ABN 79 097 982 235 | ASX:CVS

Criteria	Commentary
	Primrose Shear marks the contact of the Paynes Find Gneiss to its east with ultramafics,predominantly amphibolites, to the west. The role of small felsic intrusives is speculated tohave remobilised primary gold mineralisation within the shear into, or causing, the quartzlode system.
Drill holeInformation	See tables in this release.
Data	Simple averages are used where aggregates are provided.
aggregationmethods	Aggregated intercepts include contiguous metres where the grade does not fall below 0.5g/tfor more than one metre.
	Reported aggregated intervals have been weighted by length.
	No density weighting has been applied.
	No top-cuts have been applied (unless specified otherwise).
	Higher grade intervals of mineralisation internal to broader zones of mineralisation arereported as included intervals.
	Metal equivalence is not used.
Relationship	The intervals reported are the initial drill intervals and intercepts.
betweenmineralisation	No adjustment has been to the intervals to account for the declination of drilling.
widths andinterceptlengths	Drilling is generally inclined at 60oto the NW (TN). Ore shoots generally dip approximately35oto the SE, meaning the apparent thickness is approximately the true thickness; this needsto be confirmed.
Diagrams	Relevant location maps and figures are included in the body of this announcement.
Balanced	Table of representative grades are included in the report.
reporting	This announcement includes the results of Au assays for the holes drilled as a follow-upprogramme to existing (reported) historic drilling.
Other	The area is covered by a 50m line spaced aeromagnetic survey.
substantiveexplorationdata	Previous workers undertook sufficient drilling to define an Indicated Resource, though that isnot now JORC compliant.
	No bulk samples, metallurgical results, groundwater or geotechnical studies have beencarried out yet.
Further work	Work programmes currently under review include re-assaying of composite samples to onemetre intervals, further drilling, metallurgical testing, resource estimation, and pitoptimisation studies.
	Any interpreted extension of the existing resource is commercially sensitive.

Section 3 Estimation and Reporting of Mineral Resources

No Mineral Resources are being reported.

SCHEDULE OF TENEMENTS

As at 30 September 2021

		Interest at	Interest at	Acquired	Disposed
	Project / Tenement	Start of	End of	During the	During the
		Quarter	Quarter	Quarter	Quarter
	Primrose Project - Western Australia
Paynes Find	M59/002	100%	100%	-	-
Paynes Find	M59/010	100%	100%	-	-
Paynes Find	M59/235	100%	100%	-	-
Paynes Find	M59/244	100%	100%	-	-
Paynes Find	M59/396	100%	100%	-	-
Paynes Find	M59/662	100%	100%	-	-
Paynes Find	M59/663	100%	100%	-	-
Paynes Find	P59/2076	100%	100%	-	-
Paynes Find	P59/2094	100%	100%	-	-
Paynes Find	P59/2101	100%	100%	-	-
Paynes Find	P59/2130	100%	100%	-	-
Paynes Find	P59/2151	100%	100%	-	-
Paynes Find	P59/2152	100%	100%	-	-
Paynes Find	P59/2153	100%	100%	-	-
Paynes Find	P59/2159	100%	100%	-	-
Paynes Find	P59/2160	100%	100%	-	-
Paynes Find	P59/2161	100%	100%	-	-
Paynes Find	P59/2174	100%	100%	-	-
Paynes Find	L59/184	100%	100%	-	-

+Rule 5.5

Appendix 5B

Mining exploration entity or oil and gas exploration entity quarterly cash flow report

Name of entity

Reach Resources Ltd (Formerly Cervantes Corporation Limited)

ABN Quarter ended ("current quarter")

79 097 982 235 30 September 2021

Consolidated statement of cash flows		Current quarter$A'000	Year to date(3 months)$A'000
1.	Cash flows from operating activities
1.1	Receipts from customers	-	-
1.2	Payments for
	exploration & evaluation (if expensed)(a)	-	-
	development(b)	-	-
	production(c)	-	-
	staff costs(d)	(3)	(3)
	administration and corporate costs(e)	(168)	(168)
1.3	Dividends received (see note 3)	-	-
1.4	Interest received	-	-
1.5	Interest and other costs of finance paid	-	-
1.6	Income taxes paid	-	-
1.7	Government grants and tax incentives	-	-
1.8	Other (provide details if material)	-	-
1.9	Net cash from / (used in) operatingactivities	(171)	(171)

2.	Cash flows from investing activities
2.1	Payments to acquire:
	entities(a)	-	-
	tenements(b)	-	-
	property, plant and equipment(c)	-	-
	exploration & evaluation(d)	(458)	(458)
	investments(e)	-	-

	Consolidated statement of cash flows	Current quarter$A'000	Year to date(3 months)$A'000
	(f)other non-current assets	-	-
2.2	Proceeds from the disposal of:
	(a) entities	-	-
	(b) tenements	-	-
	(c)property, plant and equipment	-	-
	(d) investments	-	-
	(e) other non-current assets	-	-
2.3	Cash flows from loans to other entities	-	-
2.4	Dividends received (see note 3)	-	-
2.5	Other (provide details if material)	-	-
2.6	Net cash from / (used in) investingactivities	(458)	(458)

3.	Cash flows from financing activities
3.1	Proceeds from issues of equity securities(excluding convertible debt securities)	-	-
3.2	Proceeds from issue of convertible debtsecurities	-	-
3.3	Proceeds from exercise of options	-	-
3.4	Transaction costs related to issues of equitysecurities or convertible debt securities	-	-
3.5	Proceeds from borrowings	-	-
3.6	Repayment of borrowings	-	-
3.7	Transaction costs related to loans andborrowings	-	-
3.8	Dividends paid	-	-
3.9	Other (provide details if material)	-	-
3.10	Net cash from / (used in) financingactivities	-	-

4.	Net increase / (decrease) in cash andcash equivalents for the period
4.1	Cash and cash equivalents at beginning ofperiod	2,034	2,034
4.2	Net cash from / (used in) operatingactivities (item 1.9 above)	(171)	(171)
4.3	Net cash from / (used in) investing activities(item 2.6 above)	(458)	(458)
4.4	Net cash from / (used in) financing activities(item 3.10 above)	-	-

• See chapter 19 of the ASX Listing Rules for defined terms.

Consolidated statement of cash flows		Current quarter$A'000	Year to date(3 months)$A'000
4.5	Effect of movement in exchange rates oncash held	-	-
4.6	Cash and cash equivalents at end ofperiod	1,405	1,405

5.	Reconciliation of cash and cashequivalentsat the end of the quarter (as shown in theconsolidated statement of cash flows) to therelated items in the accounts	Current quarter$A'000	Previous quarter$A'000
5.1	Bank balances	1,405	1,405
5.2	Call deposits	-	-
5.3	Bank overdrafts	-	-
5.4	Other (provide details)	-	-
5.5	Cash and cash equivalents at end ofquarter (should equal item 4.6 above)	1,405	1,405

6.	Payments to related parties of the entity and theirassociates	Current quarter$A'000
6.1	Aggregate amount of payments to related parties and theirassociates included in item 1	41
6.2	Aggregate amount of payments to related parties and theirassociates included in item 2	-
	Note: if any amounts are shown in items 6.1 or 6.2, your quarterly activity report must include a description of, and anexplanation for, such payments

Payments included in item 6.1 are related to fees and remuneration (inclusive of superannuation) paid to Directors.

7.	FinancingfacilitiesNote: the term "facility' includes all forms of financingarrangements available to the entity.Add notes as necessary for an understanding of thesources of finance available to the entity.	Total facilityamount at quarterend$A'000	Amount drawn atquarter end$A'000
7.1	Loan facilities	*450	450
7.2	Credit standby arrangements	-	-
7.3	Other	-	-
7.4	Total financing facilities	450	450

7.5 Unused financing facilities available at quarter end -

7.6 Include in the box below a description of each facility above, including the lender, interest rate, maturity date and whether it is secured or unsecured. If any additional financing facilities have been entered into or are proposed to be entered into after quarter end, include a note providing details of those facilities as well.

*

Lender: Bath Resources Pty Ltd

Interest free

Unsecured

Maturity date – The Lender and the Company agreed to forbear the Loan for a period of 12 months from the date the Company's securities were reinstated to quotation on the ASX (4 June 2021). The Lender and the Company agreed to negotiate in good faith the terms of the repayment of the Loan during the 12 month period following reinstatement (until 4 June 2022).

8.	Estimated cash available for future operating activities	$A'000
8.1	Net cash from / (used in) operating activities (Item 1.9)	(171)
8.2	(Payments for exploration & evaluation classified as investingactivities) (item 2.1(d))	(458)
8.3	Total relevant outgoings (Item 8.1 + Item 8.2)(629)
8.4	Cash and cash equivalents at quarter end (Item 4.6)	1,405
8.5	Unused finance facilities available at quarter end (Item 7.5)-
8.6	Total available funding (Item 8.4 + Item 8.5)1,405
8.7	Estimated quarters of funding available (Item 8.6 divided byItem 8.3)	2.23
		Note: if the entity has reported positive relevant outgoings (ie a net cash inflow) in item 8.3, answer item 8.7 as"N/A". Otherwise, a figure for the estimated quarters of funding available must be included in item 8.7.
8.8	If Item 8.7 is less than 2 quarters, please provide answers to the following questions:
	8.8.1Does the entity expect that it will continue to have the current level of net operatingcash flows for the time being and, if not, why not?
	N/A
	8.8.2Has the entity taken any steps, or does it propose to take any steps, to raise furthercash to fund its operations and, if so, what are those steps and how likely does itbelieve that they will be successful?

N/A
8.8.3	Does the entity expect to be able to continue its operations and to meet its businessobjectives and, if so, on what basis?
N/A
	Note: where item 8.7 is less than 2 quarters, all of questions 8.8.1, 8.8.2 and 8.8.3 above must be answered.

Compliance statement

• 1 This statement has been prepared in accordance with accounting standards and policies which comply with Listing Rule 19.11A.
• 2 This statement gives a true and fair view of the matters disclosed.

Date: 28 October 2021

Authorised by: "By the Board"

(Name of body or officer authorising release – see note 4)

Notes

• 1. This quarterly cash flow report and the accompanying activity report provide a basis for informing the market about the entity's activities for the past quarter, how they have been financed and the effect this has had on its cash position. An entity that wishes to disclose additional information over and above the minimum required under the Listing Rules is encouraged to do so.
• 1. If this quarterly cash flow report has been prepared in accordance with Australian Accounting Standards, the definitions in, and provisions of, AASB 6: Exploration for and Evaluation of Mineral Resources and AASB 107: Statement of Cash Flows apply to this report. If this quarterly cash flow report has been prepared in accordance with other accounting standards agreed by ASX pursuant to Listing Rule 19.11A, the corresponding equivalent standards apply to this report.
• 1. Dividends received may be classified either as cash flows from operating activities or cash flows from investing activities, depending on the accounting policy of the entity.
• 1. If this report has been authorised for release to the market by your board of directors, you can insert here: "By the board". If it has been authorised for release to the market by a committee of your board of directors, you can insert here: "By the [name of board committee – eg Audit and Risk Committee]". If it has been authorised for release to the market by a disclosure committee, you can insert here: "By the Disclosure Committee".
• 1. If this report has been authorised for release to the market by your board of directors and you wish to hold yourself out as complying with recommendation 4.2 of the ASX Corporate Governance Council's Corporate Governance Principles and Recommendations, the board should have received a declaration from its CEO and CFO that, in their opinion, the financial records of the entity have been properly maintained, that this report complies with the appropriate accounting standards and gives a true and fair view of the cash flows of the entity, and that their opinion has been formed on the basis of a sound system of risk management and internal control which is operating effectively.== == == == ==