RINCON RESOURCES LIMITED — Interim / Quarterly Report 2021

Jan 27, 2021

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A S X A N N O U N C E M E N T
2 8 J A N U A R Y 2 0 2 1
ASX : RCR | ACN 628 003 538
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Rincon Resources December 2020 Quarterly Activities Report

• § Rincon Resources Ltd (ASX:RCR) successfully lists on the ASX following $6 million Initial Public Offer.

• § Rincon is a WA-focused gold & base metals exploration company which owns 100% of three strategic and regionally significant projects: South Telfer, Laverton and Kiwirrkurra.

• § All projects have significant outcropping mineralisation identified from historic drilling.

• § Rincon has commenced early-stage exploration across its portfolio including geochemical sampling at Laverton extending the previously identified GG anomaly and a number of new targets identified within the project area, particularly to the south.

Fieldwork in scheduled for the March 2021 quarter is:

• Laverton – Infill soil sampling and Native Title Heritage Clearance work scheduled for mid-February, Programme of Works (PoW) approved for aircore drilling programme, drilling contractor engaged to commence mid-March on an initial 3,000m drilling programme to test the GG anomaly and follow up historical drill results from three target areas;

• South Telfer – Ultrafine soil sampling to commence in March over selected targets as part of an initial regional geochemical programme in 2021. A drilling PoW has been approved by the WA Department of Mines, Industry Regulation and Safety (DMIRS), Native Title Heritage clearances over areas of proposed ground disturbing works to commence in March, followed by a 5,000m drilling programme to follow up on historical drill results from the Hasties prospect; and

• Kiwirrkurra - Interpretation of electromagnetic and gravity datasets underway to assist with target generation.

• § Cash balance of $6.019 million at 31 December 2020.

Rincon Resources Limited ( Rincon or the Company ) is pleased to provide a report on its activities for the December 2020 quarter which included its successful listing on the Australian Securities Exchange (ASX) on 21 December 2020, following an Initial Public Offer (IPO) which raised $6 million (before costs).

1

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ASX Announcement 28 January 2021

Rincon has a 100% interest in three highly prospective copper and gold projects in Western Australia: the South Telfer, Laverton and Kiwirrkurra Projects. Each project has been subject to historical exploration which has identified large outcropping mineralised systems.

The Company is planning systematic exploration of the projects, aiming to delineate copper and gold resources.

The South Telfer Project consists of seven exploration licences and two prospecting licences covering approximately 540km[2] of prospective geology, refer Figure 1. The project area was previously explored by Newcrest Mining Ltd ( Newcrest ) which identified outcropping gold and copper mineralisation at the Hasties prospect (tenements P45/2983, P45/2929, E45/4336 & E45/4568) and large gold anomalies at Westin (tenements E45/5501 & E45/5359).

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Figure 1: Rincon South Telfer Tenements showing Newcrest Telfer Mine (top left) and historical Newcrest drilling.

Hasties is approximately 12km South of Newcrest’s Telfer Gold Mine with gold and copper mineralisation identified at surface within the same sedimentary sequences known to host gold mineralisation at Telfer, refer Figure 2. In addition, a 5km long gold anomaly has been identified by wide spaced aircore drilling at the Westin Prospect, along strike from the Telfer Dome trend.

Both Hasties and Westin require follow up, with mineralisation identified by Newcrest remaining open in all directions. Newcrest relinquished its tenement holdings in 2002 as it

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ASX Announcement 28 January 2021

closed the Telfer pit operations and focussed on underground feasibility. Extensive first-pass exploration work by Newcrest includes 260 drill holes for 24,762 metres,1,068 surface assays of various types which are reported in Appendix A, which has been compiled from the WAMEX data source reports available from the DMIRS.

At Hasties, mineralisation outcrops within brecciated sedimentary rocks which have been identified over a 1km strike. Historical drilling returned multiple wide intersections of gold and copper over a large area. Mineralisation remains open in all directions and only a small portion of the prospective strike length has been drill-tested.

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Figure 2: Rincon South Telfer Tenements showing Newcrest Telfer Mine (top left) and Telfer Mineralised Trend.

Newcrest significant Hasties Gold Intercepts:

• 57.80m @ 2.05g/t Au from 17.40m, including;

• 16.10m @ 4.75g/t Au from 42.70m;

• 68.00m @ 1.33g/t Au from 1.00m;

• 36.00m @ 1.66g/t Au from 2.00m;

• 33.20m @ 1.46g/t Au from 25.00m;

• 23.00m @ 2.06g/t Au from 23.00m; &

• 5.00m @ 3.73g/t Au from 50.00m.

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ASX Announcement 28 January 2021

Newcrest significant Hasties Copper Intercepts:

• 20.60m @ 1.23% Cu from 87.6 0m;

• 10.90m @ 3.39% Cu from 91.80m; &

• 4.00m @ 4.84% Cu from 49.00m.

A full table of significant intercepts is presented in Appendix A and B.

Historical regional exploration work completed at the Westin prospect, approximately 30km South East of the Telfer Gold Mine, consisted of soil sampling and wide spaced aircore drilling (typically 1km spaced lines with holes 200m apart along lines).

The Westin area is covered by shallow sand cover and sand dunes with aircore drilling sampling bedrock lithologies. Sedimentary sequences which host gold mineralisation at Telfer were identified, as well as a large, open, 5km long gold in bedrock anomaly. Best results from the Westin prospect include 8.00m @ 3.85g/t Au from 84.0m (Appendix A).

Rincon’s tenements cover over 25km of prospective strike at Westin which has been sparsely explored.

The Laverton Gold Project consists of two exploration licences covering approximately 42km[2] of prospective Mt Margaret-Murrin Greenstone belt ( MMMG ), refer Figure 3. The project area is located 4km west of the Laverton township and has been subject to sporadic, early-stage exploration activities.

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Figure 3: Rincon Tenements and Open file Total Magnetic Intensity image showing high magnetic BIF units hosting the Gladiator deposits trending south into the Laverton Project tenements

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ASX Announcement 28 January 2021

The Kiwirrkurra Project consists of a single exploration licence covering ~126km[2] of the highly prospective Central Australian Suture ( CAS ) in the West Arunta Province. The CAS represents a preserved subduction zone and the region has experienced an increase in exploration activities with the recent discovery of the Grapple base metal target by the Lake Mackay JV (with IGO Ltd (ASX:IGO) and Prodigy Gold NL (ASX:PRX)). The Kiwirrkurra project is prospective for iron oxide copper-gold style mineralisation as well as orogenic gold mineralisation.

Kiwirrkurra has been the subject of historic exploration by Ashburton Minerals Ltd (ASX:LPD, now known as Lepidico Ltd) in the early to mid- 2000s which delineated multiple gold and copper targets.

Operational Activities:

South Telfer:

During the past 12 months, the Company completed the acquisition of 100% of the South Telfer Project and has been preparing for field activities, which includes submitting Work Programmes for Heritage clearances and the acquisition of regional magnetics data previously flown by Newcrest in the late 1990s for South Telfer.

Public Domain regional geophysical data for South Telfer was acquired and interpreted which has identified several regional target areas (refer Figures 4 & 5). 3D geological models have also been developed for South Telfer over the Hasties prospect to aid in drill planning.

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Figure 4: South East Extension of Mineralised Trend contains Untested Fold Structure at the South Telfer Project on the Hasties Trend.

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ASX Announcement 28 January 2021

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Figure 5: Large Scale Fold & Dome Structure Identified in Magnetics Coincident with Drilled Gold Anomaly at Dolphy.

Laverton:

The Company has completed the acquisition, processing and interpretation of a highresolution aeromagnetic dataset over the project area.

The new magnetic data has highlighted the continuation of the BIF through the Laverton project tenements. BIF’s are strongly associated with gold mineralisation in the Laverton region hosting multiple deposits.

During December 2020, the Company completed a wide spaced, first pass soil sampling programme over several target areas at the Laverton Gold Project. A total of 770 samples were collected on a grid of 100m x 200m and 200m x 50m, with approximately 300-400 grams of sieved (to -2.0 mm) material collected and submitted to On Site Laboratory Services for analysis of gold and selected pathfinder elements (As, Sb, Bi, Co, Cu, Ni, Pb, Sb, Te, Zn and Ag) to ppm levels, refer Figure 6.

A table of sampling statistics is presented in Table 1.

Element	Minimum	Maximum
Au	BDL	12 ppb
As	2.2 ppm	100 ppm
Sb	20 ppm	190 ppm
Cu	10 ppm	210 ppm
Pb	4.9 ppm	22 ppm
Zn	15 ppm	110 ppm
Ag	BDL	BDL

Table 1: Laverton Gold Project - December 2020 soil sampling programme statistics (BDL = Below Detection Level)

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ASX Announcement 28 January 2021

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Figure 6: Laverton Gold Project - Soil Sampling locations

Kiwirrkurra:

Target generation has commenced with an initial historical geophysical data review. Historical gravity and TEMPEST electromagnetic datasets have been located over parts of the project area. These have been acquired and are being reprocessed to assist interpretation and target generation.

Next Quarter Outlook:

Subsequent to the end of the Quarter, the Company announced on Friday 22nd January, the results of 770 soil samples collected at the Laverton Gold Project which identified multiple geochemical gold anomalies. These samples will help with the planning and targeting of the upcoming infill soil sampling program scheduled for February.

Results have extended the previously identified GG anomaly with coincident anomalous Au, As and Sb results, correlating with interpreted position of cross cutting north-west trending faults interacting with the SCSZ.

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ASX Announcement 28 January 2021

In addition, the wide spaced sampling (100m x 200m grid) has identified a number of new targets within the project area, particularly to the south of the GG anomaly.

Extensional sampling was completed south of the GG anomaly targeting the SCSZ, more particularly where it is intersected by north-west interpreted cross faulting. This structural setting is analogous to the GG anomaly. Elsewhere in the region, these north-west structures have a strong association with gold mineralisation. At +5 ppb Au, a number of anomalies proximal to this interpreted favourable structural setting were identified, and further infill soil sampling is planned to better define these areas, refer Figure 7.

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Figure 7: Laverton Gold Project surface geochemistry showing soil sample locations and geochemical anomalies from December 2020 sampling programme in northern area, on magnetics Total Magnetic Intensity-Reduced to Pole Image.

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ASX Announcement 28 January 2021

The GG anomaly was extended along the north-west interpreted trend and remains open to the north-west.

Additional targets were tested within the project area and several anomalies have been detected which require follow up infill sampling to further delineate potential drill targets.

A drilling contractor has been engaged and scheduled to commence an initial 3,000m drilling programme by mid-March, following Native Title Heritage Clearance activities which are scheduled for February.

The initial programme will test the newly defined GG anomaly and follow up previous historic drill results.

A Programme of Works has been submitted and approved by the DMIRS for an initial 3,000m aircore drilling programme. A drilling contractor has been engaged and scheduled to commence drilling by mid-March, following Native Title Heritage Clearance activities which are scheduled for February.

The initial programme will test the newly defined GG anomaly and follow up previous historic drill results as detailed in Figure 8.

South Telfer:

The Company plans to commence Ultrafine soil sampling over selected targets as part of an initial regional geochemical programme in March 2021. This geochemical method has been developed by CSIRO and has been used with success in the Paterson Province to detect gold and copper mineralisation through sand and sedimentary cover. In addition, a detailed structural mapping program will be conducted over the outcropping Hasties gold and copper mineralisation.

In addition, a VTEM Geophysical Survey has been planned over the Westin-Dolphy Tenement package. VTEM has been successfully used in the Paterson Province as a direct detection technique of copper and gold mineralisation as well as providing valuable stratigraphic and structural information. It is envisaged the VTEM survey will be completed during the June quarter.

The Company is working to be drill-ready by April 2021. A drilling Program of Works has been approved by the WA Department of Mines, Industry Regulation and Safety (DMIRS) and the final step required to allow drilling to commence is Native Title Heritage clearances over areas of proposed ground disturbing works.

Rincon Executive Chairman, Geoff McNamara commented:

“It has been a very successful and satisfying process to list Rincon Resources and with an excellent exploration package in one of the best mineral regions in WA, the team is very keen to follow through on the execution of our strategy to explore, discover and define mineral projects and build the value of this Company. The Board takes this opportunity to thank all that participated in the IPO and welcomes all new shareholders to the Company as we look forward to a successful 2021”.

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ASX Announcement 28 January 2021

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Figure 8: Laverton Gold Project - proposed drilling locations highlighted in light blue

CORPORATE

Rincon Resources commenced trading on the Australian Securities Exchange (ASX) on 21 December 2020 following completion of a successful Initial Public Offer (IPO) which raised $6 million via the issue of 30,000,000 shares at an issue price of $0.20 per share.

During the quarter approximately $252,125 in payments were made to related parties and/or their associates as remuneration for the Managing Director, Non-Executive Director fees, and consulting fees.

Cash and cash equivalents at end of quarter were $6.019 million.

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ASX Announcement 28 January 2021

Use Of Funds

The table below outlines use of funds as compared to the Company’s prospectus dated November 20, 2020.

November 20, 2020.
	Prospectus (24 monthperiod)	Actual at 31/12/2020	Actual YTD
South Telfer Exploration	$3,820,000	$53,801	$53,801
Laverton Exploration	$1,030,000	$47,958	$47,958
Laverton completion payment	$25,000	$25,000	$25,000
Kiwwikura exploration (Lyza)	$280,000	-	-
Expenses of the offer	$430,000	$315,775	$315,775
Administration costs	$750,000	$288,781	$288,781
Working capital	$475,529	-	-
Total	$6,810,529	$706,315	$706,315

Authorised by the Board of Rincon Resources Limited

For more information:

Company:

Investors:

Geoff McNamara Peter Taylor Executive Chairman NWR Communications Rincon Resources Limited +61 (0) 412 036 231 +65 9754 6095 peter@nwrcommunications.com.au

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ASX Announcement 28 January 2021

About Rincon

Rincon has a 100% interest in three highly prospective copper and gold projects in Western Australia: South Telfer, Laverton and Kiwirrkurra. Each project has been subject to historical exploration which has identified major mineralised systems which Rincon intends on exploring in order to delineate copper and gold resources.

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Competent Persons Statement

The information in this report that relates to Exploration Results is based on information compiled by Mr Zeffron Reeves (B App Sc (Hons) Applied Geology) MBA, MAIG). Mr Reeves is a member of the Australian Institute of Geoscientists and a Director and major shareholder of the Company. Mr Reeves has sufficient experience that is relevant to the style of mineralisation and type of deposit under consideration and to the activity which 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. Mr Reeves consents to the inclusion in this report of the matters based on this information in the form and context in which it appears.

Future Performance

This announcement may contain certain forward-looking statements and opinion. Forward-looking statements, including projections, forecasts and estimates, are provided as a general guide only and should not be relied on as an indication or guarantee of future performance and involve known and unknown risks, uncertainties, assumptions, contingencies and other important factors, many of which are outside the control of the Company and which are subject to change without notice and could cause the actual results, performance or achievements of the Company to be materially different from the future results, performance or achievements expressed or implied by such statements. Past performance is not necessarily a guide to future performance and no representation or warranty is made as to the likelihood of achievement or reasonableness of any forward-looking statements or other forecast. Nothing contained in this announcement nor any information made available to you is, or and shall be relied upon as, a promise, representation, warranty or guarantee as to the past, present or the future performance of Rincon.

References

Salier, B. P., 2003. The Timing and Source of Gold-Bearing Fluids in the Laverton Greenstone Belt, Yilgarn Craton, with Emphasis on the Wallaby Gold Deposit. The University of Western Australia.

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ASX Announcement 28 January 2021

Appendix A South Telfer drilling result

Drill hole*	From (m)	To (m)	Interval (m)	Gold (g/t)	Copper (%)
HR14951 incl. incl. incl. HR14951 HR14952 incl. HR15001 HR15001 HR15002 HR15601 HR15801 HR15801 HR15801 HRC9101 HRC9102 HRC9102 HRC9203 HRC9402 incl. incl. HRC9402 HRC9402 HR9403	1 1 1 1 59 2 14 40 56 52 95 17 49 49 87.6 5 5 68.9 17.4 19.1 42.7 64.8 91.8 25	69 16 35 46 79 38 37 57 76 65 101 30 53 54 108.2 12 16.5 71.5 75.2 30.6 58.8 81 102.7 58.2	68 15 34 45 20 36 23 17 20 13 6 13 4 5 20.6 7 11.5 2.6 57.8 11.5 16.1 16.2 10.9 33.2	1.29 2.76 1.91 1.56 1.64 2.06 1.30 - - - - - 3.73 - - - 2.41 2.05 2.65 4.75 - - 1.46	- - - - 0.39 - - - 0.56 1.30 2.70 1.00 4.81 - 1.23 3.52 2.47 - - - - 1.03 3.39 -

• Only significant intercepts (>1 g/t gold or > 0.35% copper) are included for practical reporting reasons. For full results refer to Rincon’s Prospectus dated 3 November 2020.

Appendix B Laverton project drilling results

Hole ID*	From (m)	To (m)	Interval (m)	Gold (g/t)^
BGB033 SSB047 SSAC003	21 21 53	28 25 54	7 4 1	15.95 1.55 1.46

• Only significant intercepts (>1 g/t gold) are included for practical reporting reasons. For full results refer to Rincon’s Prospectus dated 3 November 2020.

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