ROX RESOURCES LIMITED — Interim / Quarterly Report 2020

Oct 29, 2020

30 October 2020

Quarterly Report

For the period ending 30 September 2020

Highlights

Grace prospect continues to deliver high gold grades, with strike length of mineralised corridor extended to >700m

Regional drilling as part of the Rox joint ventures firms up new prospects demonstrating the regional potential of the Youanmi greenstone belt

Initial metallurgical studies deliver excellent gold recoveries, particularly for the Grace Prospect

Youanmi Gold Project (Rox 70%)

• Resource development drilling programs at Youanmi continue in order to delineate an initial resource at the Grace Prospect and to add to the existing Mineral Resource inventory of 1.19Moz Au.

• Very high-grade results newly encountered at Grace extend strike length of mineralised envelope to 700m.

• New gold zone also discovered 3km north of mine site.

• High grade results returned during the program from Grace and Grace North Prospects include:

• RXRC194: 3m @ 10.7g/t Au from 19m (Grace North)

• RXRC201: 1m @ 63.68g/t Au from 49m to end of hole (Grace North)

• RXRC239: 13m @ 60.49g/t Au from 177m, including 4m @ 191.56g/t Au from 181m (Grace North)

• RXRC292: 2m @ 12.31g/t Au from 195m and 4m @ 5.01g/t Au from 173m within an impressive broader 49m mineralised zone comprising 25m @ 2.36g/t Au from 173m and 24m @ 1.04g/t Au from 145m (Grace)

• RXRC294: 7m @ 6.87g/t Au from 118m (Grace)

• RXRC305: 3m @ 10.26g/t Au from 107m (Grace North)

• RXRC308: 3m @ 22.67g/t Au from 10m (Grace)

• RXRC310: 4m @ 18.53g/t Au from 88m (Grace)

• RXRC312: 3m @ 5.72g/t Au from 217m at EOH (Grace North)

• RXRC314: 2m @ 13.96g/t Au from 114m (Grace North)

• RXRC316: 4m @ 3.79g/t Au from 166m (Grace North)

• Drilling completed during the quarter (exploration ongoing):

• 52 Reverse Circulation (RC) holes for 9,817m

• 252 Aircore (AC) holes for 11,530m

• 6 Diamond holes for 1,430m

• The Project Mineral Resource Estimate currently stands at 12.4Mt at 2.97g/t Au for 1,190,600 ounces of gold which will be updated once results from the current program are to hand.

Youanmi Regional

• Earn- in expenditure completed on VMC JV. Anticipated completion of earn-in on Youanmi JV in coming months.

• Impressive high-grade gold results reported from Taylors Reef (Currans Find JV) and Sovereign Prospect

Mt Fisher Nickel and Gold Project & Mt Eureka JV

• RC program in the northern part of the Mount Fisher belt (around 30km north of the Fisher East deposits) concluded early in September. During the program 20 RC holes (for 3699m) were drilled in the search for nickel and gold across a variety of targets.

• Most assays still outstanding (as at late October).

• No significant sulphide intersections have been returned to date; however, assay results will support new geological and geophysical information to firm up targeting of what Rox believes to be a highly nickel prospective belt.

Corporate

• Cash and receivables balance at the end of 30 September 2020 of $11.79m.

Youanmi Gold Project (70%)

The Youanmi Gold Project is located 480km NE of Perth and 400km inland and to the east of Geraldton. The project is accessed from the south via Paynes Find (140km) or north via Mt Magnet (150km) from the Great Northern Highway.

The Youanmi Gold Mine has historic production of 667,000 ounces of gold grading 5.42g/t from open pit (1987 – 1993) and underground operations conducted at various times between 1908 and 1997. At the time of closure of operations in 1997, the gold price was around $400 per ounce.

Rox Resources Limited ( Rox ) holds a 70% interest in the OYG Joint Venture and is the manager at the historic Youanmi mining centre. Venus Metals Corporation Limited (ASX:VMC) (“Venus” or “VMC”) retains a 30% interest.

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The Youanmi Project Mineral Resource Estimate of 12.4Mt at 2.97g/t Au for 1.2Moz of gold (ASX: 17 April 2019) (Table 4) , can be categorised into a near surface portion of 10Mt at 1.65g/t Au for 532,000 ounces of gold and the Youanmi deeps of 2.4Mt at 8.5 g/t Au for 658,000 ounces of gold (sulphide).

There is significant scope to increase both free milling and sulphide resources with further drilling.

Rox continues to improve the understanding of the controls on mineralisation, and several target areas are proposed for drill testing. Targets are focused on the ~2.3 km long Youanmi mine corridor, including granite-hosted mineralisation to the east, and the greenstones-BIF sequences to the west.

Initial metallurgical test work shows high gold recoveries

The Youanmi Project is host to several styles of mineralisation. To ensure adequate representation from the different mineralisation styles, 81 samples were selected for metallurgical test work from 32 RC holes previously reported by Rox across the Project area. Intervals were selected to cover a range of gold grades, mineralisation styles and degree of weathering/oxidation.

Samples were analysed by the LeachWELL Accelerated Cyanide Leach technique to determine the cyanide extractable gold via this industry-standard method and provide an indication of the potential recoveries in standard gold processing circuits (i.e. CIL)

The results from the oxide, transitional and fresh zones at Grace are exceptionally encouraging with gold recoveries averaging 97%, 94% and 95% respectively (see Table 1).

These results indicate that gold mineralisation encountered in recent drilling at the Youanmi Project in general, and especially at Grace, is amenable to conventional cyanide extraction methods.

Table 1 – LeachWELL recoveries (approximates CIL)

Prospect	Average Recoveries
	Oxide Transitional Primary
Grace	97% 94% 95%
Plant Zone	94% Not yet drilled Not yet drilled
Youanmi South	NA 93% Not yet drilled
Commonwealth	NA Not Tested 88%
Main Lode	94% 80% 76%

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RC Drilling

During the quarter 52 Reverse Circulation (RC) holes for 9,817m were completed at the OYG JV focussed on the Grace area. Assays for 28 of the holes drilled earlier in the period have been released to ASX with the remaining being outstanding.

Drilling is ongoing and is expected to continue through the December quarter. Better results received during the September quarter include (ASX: 28 Jul, 1 Sep and 7 Oct 2020):

• RXRC194: 3m @ 10.7g/t Au from 19m (Grace North)

• RXRC201: 1m @ 63.68g/t Au from 49m to end of hole (Grace North)

• RXRC239: 13m @ 60.49g/t Au from 177m, including 4m @ 191.56g/t Au from 181m (Grace North)

• RXRC292: 2m @ 12.31g/t Au from 195m and 4m @ 5.01g/t Au from 173m within an impressive broader 49m mineralised zone comprising 25m @ 2.36g/t Au from 173m and 24m @ 1.04g/t Au from 145m (Grace)

• RXRC294: 7m @ 6.87g/t Au from 118m (Grace)

• RXRC305: 3m @ 10.26g/t Au from 107m (Grace North)

• RXRC308: 3m @ 22.67g/t Au from 10m (Grace)

• RXRC310: 4m @ 18.53g/t Au from 88m (Grace)

• RXRC312: 3m @ 5.72g/t Au from 217m at EOH (Grace North)

• RXRC314: 2m @ 13.96g/t Au from 114m (Grace North)

• RXRC316: 4m @ 3.79g/t Au from 166m

In general, the Company’s drilling in the Grace area has defined significant, very high-grade zones of mineralisation (greater than 30 gram-metres) within a broader wide continuous / semicontinuous zone of gold mineralisation. This zone extends for 750m+ to the NNW from an area south of the Youanmi mill where Grace was initially discovered. It is open along strike and at depth.

The corridor that hosts Grace, Grace North, and Plant Zone has a strike length of over 2.5km. Mineralisation is hosted within brittle-ductile fault-fracture arrays within the Youanmi granite and is associated with quartz-sericite alteration.

The high-grade intercept in RXRC239 ( 13m @ 60.49g/t Au ) is 550m along strike of, and within the same mineralised structure as, the previously reported intersection of 25m @ 34.79g/t Au in RXRC287 (ASX: 16 Jun 2020). See Figures 1 and 2 for additional context.

Aircore Drilling

The northern extent of the mineralised corridor and parallel structures now recognised in the granite were tested during the quarter via an extensive aircore drilling program.

The program totalled 251 holes for 11,534m. Assays have been received and reported for the first 25 holes.

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Best result: RXAC022, 4m @ 15.95g/t Au from 36m in granite 3km north of the Youanmi Mine and the Grace zone (ASX: 7 Oct 2020).

While the majority of assay results from aircore drilling are still pending, early interpretations are that much of the sporadic RAB drilling undertaken by previous operators failed to penetrate an almost ubiquitous silcrete layer at around 11m vertical depth, potentially leaving extensive granite-hosted mineralisation undetected.

Follow up RC drilling will test anomalous results.

Diamond Drilling

The first phase of diamond drilling has been completed. The program comprised of 9 holes for 1,192m to test the following:

• Three shallow (50-70m) diamond holes at the high-grade main shoot to confirm reliability of RC drilling and obtain specific gravity data for resource estimation.

• Two 300m holes at Grace to determine structural controls on mineralisation. Interpretation is ongoing.

• Three deeper (340-380m) holes at Grace North. The holes extended RC holes that previously failed to reach target depth.

Assay results from this are pending, however logging of mineralised core intercepts from Grace indicate that gold is hosted within a west dipping zone of strong sericite altered granite, shear veins and quartz-stibnite-gold breccia-style veins within an overall NNW trending structural zone.

Sub-Audio Magnetic (SAM) and High-Resolution Aeromagnetic Over Youanmi Granite

The SAM method was trialled for the primary aim of mapping known gold mineralised structures over a 2.5km by 1.5km target area in the very weakly magnetic Youanmi granite and potential extensions to the southeast, beneath historical mine infrastructure (waste dumps and TSFs) that has been poorly drill tested by historical drilling. Additionally, the survey covered the junction of the Youanmi Fault Zone with the northwest-trending Main Lode Shear at the Youanmi granite contact, an area likely to host dilation zones associated with bifurcation of the greenstone succession around the steeply south plunging southern margin of the Youanmi granite

Additionally, a detailed UAV aeromagnetic survey was conducted by Pegasus Geophysics target area of 2.5km by 1.3km within the Youanmi granite. The survey was flown at a line spacing of 20m and a sensor height of 20m providing exceptionally high-quality data and excellent geological detail that is absent in previous aeromagnetic surveys.

The results of these surveys have provide important insight into controls on gold mineralisation. Rox looks forward to updating results from new high priority drill targets.

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Targeting Philosophy

From recent exploration work Rox believes gold mineralisation at Youanmi is controlled by the following hierarchy of elements, from larger- to smaller-scale:

• Proximity to the Youanmi Shear Zone

The crustal-scale YMSZ is the first-order fluid pathway for gold mineralisation in the region, so proximity to the YMSZ is likely important.

• Mine corridor high-strain zone

The zone of strong foliation and lode shear zones is constrained to within 100-150 m of the main granite contact, in the existing mine area. The western limit of the strain zone is observed in the high west walls of the Main and Rebel pits, and also in deep Main Lode drilling.

• NNW-striking lode shear zones

Within the mine corridor, high-grade lodes are focused along discrete slightly more N- striking and steeper-dipping shear zones, which are interpreted to be the main fluid-focusing pathways. The main know structures are Grace, Plant Zone, Main, Hill End, United North, and RebelKathleen (Figure 1).

• High-Fe sequence

The six mined deposits all lie within (magnetite- bearing) tholeiitic mafic rocks and BIF interflow units, suggesting this sequence is optimal gold mineralisation host (Figure 1). This is likely due to the amenability of the sequence to sulphidation which facilitates the precipitation of Au.

• Sub-parallel BIF lenses

Favourable BIF horizons are sub-parallel to the lode shear zones (Figure 1) and have greater potential lengths of interaction with mineralising fluids and potential to form ~tabular UGmineable lodes (e.g. Main Lode).

• Intersections of E-W faults with lode shear zones

Lode shear zones are commonly well-mineralised adjacent to where they intersect E-Wtrending, steeply S-dipping fault/vein zones (e.g. Main Lode, Hill End Deeps, Kathleen, Pollard zone)

Forward Plan

RC and air core drilling to test these targeted zones is ongoing. Rox’s current intention is to drill at least 5,000m of RC and 3,000m of air core in the coming quarter. In addition, Rox is awaiting assays for a significant amount of the work undertaken in the September quarter and looks forward to updating the market with results as they become available.

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Figure 1 – Youanmi Gold Mine Areas showing Grace mineralised corridor in NNW structures

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Figure 2 - Grace Prospect Long Section

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Youanmi Regional JVs (50 & 45% of Gold Rights) & Currans Find (45%)

Rox and its JV partner, Venus, created three joint ventures covering regional exploration at Youanmi.

1. The high-grade historic Currans Find JV located in the centre of the Youanmi Gold Project where each hold a 45% interest in all minerals(ASX: 10 April 2019);

2. The VMC JV where Rox has earned a 50% interest in the gold rights by contributing the first $800,000 of exploration expenditure; and

3. The Youanmi JV where Rox is contributing the first $200,000 of exploration expenditure to earn a 45% interest in the gold rights.

Refer to Figure 3 for location of each joint venture and Table 2 sets out the ownership and earnin structure of each JV. Venus is currently the manager of these JVs.

Once Rox has earned its initial interest in these regional joint ventures it is envisaged both parties will retain their interests by contributing to exploration expenditure in proportion to their ownership, although standard contribute or dilute arrangements are in place. Rox has the right to manage the JVs once it has completed the aforementioned expenditures.

Table 2 – Regional JV Commitments and Expenditure to Date

Joint Venture Rox Earning	Joint Venture Rox Earning	Expenditure Requirement Expenditure as at 30 September 2020	Expenditure Requirement Expenditure as at 30 September 2020
VMC JV	50% - gold rights only	$800,000	$869,756 (i.e. expenditure met)
Youanmi JV	45% - gold rights only	$200,000	$55,705 (programs ongoing expenditure expected to be met December 2020)
Currans Find JV	45%	Contributing JV (Venus to manage until Rox elects to manage the VMC and Youanmi JVs following earn-in completion)

Currans Find and Pinchers Hill

The Currans Find project area is located within the Youanmi Greenstone Belt and situated approximately 5 km north-northwest of the historical Penny West gold mine (Figures 3 and 4). High-grade gold mineralization is associated with quartz veins that generally plunge to the southwest and steeply dip to the southeast. The mineralization is hosted by mafic rocks (amphibolite), ultramafics (talc-tremolite schist) and diorite. Similar rocks are host to the gold mineralisation at Penny West.

Taylor’s Reef

‐ Rox and its Joint Venture partner Venus announced high grade gold mineralization intersected in recent RC and AC drilling at Taylor’s Reef Prospect, Currans Find (M57/641) ‐ Taylor’s Reef Prospect is a new unworked zone where high grade gold was recovered from surface workings in recent times by Mr D Taylor (ASX: 23 Apr 2019).

Best results from the recent drilling at Taylor’s Reef Prospect include (ASX: 11Sep 2020):

• CFRC084 : 3m @ 19.58g/t Au from 21m including 1m @ 55.81g/t Au from 23m, and 3m @ 14.30g/t Au from 73m including 1m @ 19.86g/t Au from 74m

• CFAC047 : 2m @ 6.67 g/t Au from 57m including 1m @ 12.27g/t Au from 58m

Two recently drilled AC holes circa 50m east ‐ northeast of the original gold ‐ mineralized reef ‐ ‐ (refer ASX release 23 April 2019) intersected shallow high grade gold mineralization. A follow ‐ up RC hole, CFRC084, drilled beneath high grade gold intersections in these AC holes, confirmed the extension of the mineralization at depth. In addition, the RC hole discovered a ‐ third, very high grade, lode at shallow depth that is open at depth and along strike.

‐ ‐ The high grade gold discovery at Taylor’s Reef Prospect is interpreted as a continuation of high ‐ grade gold lodes at Currans North Prospect, offset by a north northeast trending fault. With widespread gold anomalies in laterite to the southwest of Taylor’s Reef, it forms an ‐ approximately 900m long northeast trending target zone (Figure 4) for further drilling and evaluation.

Sovereign Prospect

Sovereign Prospect is located on E57/1019 that is part of the Youanmi Gold Project, VMC JV ‐ (Venus 50% and Rox earning 50% gold rights only).

Best results released during the quarter from RC drilling include (ASX: 18 Sep 2020):

• YSRC10 (in order of gram metres): 10m @ 3.64 g/t Au from 79m including 2m @ 10.64 g/t Au from 82m, 7m @ 3.97 g/t Au from 59m including 1m @ 8.19g/t Au from 64m, 4m @ 1.86 g/t Au from 18m, and 3m @ 1.98 g/t Au from 24m.

• YSRC09: 4m @ 2.68 g/t Au from 116m including 1m @ 5.43g/t Au from 118m

• YSRC11: 3m @ 1.24 g/t Au from 56m

• YSRC14: 8m @ 5.03 g/t Au from 160m including 2m @ 15.83 g/t Au from 160m; and 3m @ 2.86 g/t Au from 165m

‐ An interpretation of recent ground magnetic surveys covering Currans Find (M57/641) and Sovereign Prospect (E57/1019) shows prominent northeast (NE) and north ‐ northeast ‐ (NNE) trending structures that align with the orientation of high grade gold mineralization at the Taylor’s Reef, Currans North and Red White and Blue prospects (Figure 4).

‐ Based on the ground magnetic data, six priority targets have been identified along NE trends in the eastern part of the survey area (E57/1019) and one of these priority targets is located immediately west of the Sovereign gold discovery.

RC drilling is planned west and southwest of the Sovereign discovery to test this target, and ‐ beneath previous high grade gold intersections in YSRC014 and YSRC010.

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Figure 3 – Rox Youanmi Tenure

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Figure 4 - Aeromagnetic image with gold prospects, interpreted targets and structures

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Mt Fisher Nickel and Gold Project (100%) & Mt Eureka JV[(Rox earning up to ]

75%, Cullen Resources 25%)

The Mt Fisher / Mt Eureka Nickel and Gold Project is located in the Northern Goldfields, about 600km northeast of Kalgoorlie (about 120km east of Wiluna).

Rox holds 1,142km[2] of the Mt Fisher greenstone belt and surrounding prospective zones (Rox 100% 808km[2] and in the Cullen Resources JV, 334km[2] ; ASX: 21 Aug 2019). Refer Figure 5

The Mt Fisher greenstone is typical Archean greenstone comprising basalts, dolerites, ultramafic and sedimentary rocks. More recently the belt has been recognised as containing significant komatiite hosted nickel deposits and showing potential for VMS Cu-Zn deposits.

The Fisher East Nickel Project lies on the eastern ultramafic horizon of the belt. It has mineral deposits with JORC resources at Camelwood, Cannonball and Musket (4.2Mt @ 1.9% Ni for 78,000t contained nickel) (ASX: 5 Feb 2016). These occur along an ultramafic flow ‘basal contact’ which extends north into the Rox-Cullen JV.

During the months of July and August 2020, 20 RC holes (for 3699m) were drilled at Mt Fisher in the search for nickel and gold across a variety of projects as summarised in Table 3.

Drilling at Red Bluff intersected semi massive sulphides anomalous in gold (~0.1 ppm) and a rock chip sample collected adjacent to the drilling returned an assay of 20.5 g/t Au gold which Rox is following up with surface mapping and surface sampling presently. This target is to be drilled in the March quarter 2021.

Table 3 - Summary of drilling objectives and prospect status

Project	Prospect	Number of Holes	Total Advance (m)	Target	Outcome
Mt Eureka	Red Bluff	2	486	Electromagnetic Conductor, Ni*, Au	Anomalous gold – justifies follow-up.
Mt Eureka	Cooper East	2	420	Electromagnetic Conductor, Ni	Conductor explained by magnetite alteration & lithological contact. No Ni mineralisation. Target downgraded.
Mt Eureka	Cooper West	8	1499	Electromagnetic Conductor, Ni	Conductor explained by magnetite alteration & lithological contact. No Ni mineralisation. Target downgraded.
Mt Eureka	Graff’s Find	1	72	Mineral pedigree, Au	Quartz veining identified under historic workings. Assays pending
Mt Fisher East Ni	Emu Bush	1	150	Geochemistry, base metals	Assays pending
Mt Fisher East Ni	Corktree South	1	172	Structure & geochemistry, Ni	Assays pending
Mt Fisher East Ni	Cutlass	1	162	Structure & geochemistry, Ni	Assays pending
Mt Fisher East Ni	Sabre Footwall	1	204	Electromagnetic Conductor, Ni	Conductor explained by base of weathering effects. No Ni mineralisation. Target downgraded.
Mt Fisher East Ni	Horatio	2	312	VTEM & Geochemistry, Ni	Assays pending
Mt Fisher Au	Damsel	1	222	Geochemistry, Au	Assays pending
		20	3699

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Figure 5: Mt Fisher Tenure on State Geology (as mapped)

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Corporate

Market commentary would suggest little value is being placed on Rox’s nickel assets within the current corporate structure. The Company is investigating various opportunities to unlock the underlying value of these assets.

Financial

As of 30 September 2020, the Company’s cash balance was $8.04 million. A payment of A$3.75 million is due from Teck Australia by 15 February 2023. In total, the Company’s cash and receivables is $11.79 million at 30 September 2020.

During the quarter, the Company expensed $2.205 million of exploration expenditure. Payments to related parties of the entity and their associates totalled $0.210 million and consisted of Director Fees and Executive Service Fees.

Authorised for release by Brett Dickson, Company Secretary

For more information:

Alex Passmore Managing Director Tel: +61 8 9226 0044 admin@roxresources.com.au

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Table 4 - Mineral Resources – Youanmi Gold Project, WA (Reported to the ASX on 17 April 2019)

Deposit	Category	Tonnes (Mt)	GradeAu (g/t)	Contained Gold (oz)
Near Surface Deposits (cut-off 0.5 g/t Au)	Indicated	4.72	1.76	266,200
	Inferred	5.36	1.55	266,500
	TOTAL	10.07	1.65	532,700

Deposit	Category	Tonnes (Mt)	Grade Au (g/t)	Contained Gold (oz)
Deeps (cut-off 4.0 g/t Au)	Indicated	0.81	8.1	210,200
	Inferred	1.60	8.7	447,700
	TOTAL	2.41	8.5	657,900

Competent Person Statements:

Resource Statements

The information in this report that relates to nickel Mineral Resources for the Fisher East project was reported to the ASX on 5 February 2016 (JORC 2012). Rox confirms that it is not aware of any new information or data that materially affects the information included in the announcement of 5 February 2016, and that all material assumptions and technical parameters underpinning the estimates in the announcement of 5 February 2016 continue to apply and have not materially changed.

The information in this report that relates to nickel Mineral Resources for the Collurabbie project was reported to the ASX on 18 August 2017 (JORC 2012). Rox confirms that it is not aware of any new information or data that materially affects the information included in the announcement of 18 August 2017, and that all material assumptions and technical parameters underpinning the estimates in the announcement of 18 August 2017 continue to apply and have not materially changed.

The information in this report that relates to gold Mineral Resources for the Mt Fisher project was reported to the ASX on 11 July 2018 (JORC 2012). Rox confirms that it is not aware of any new information or data that materially affects the information included in the announcement of 28 March 2018, and that all material assumptions and technical parameters underpinning the estimates in the announcement of 28 March 2018 continue to apply and have not materially changed.

The information in this report that relates to gold Mineral Resources for the Youanmi project was reported to the ASX on 17 April 2019 (JORC 2012). Rox confirms that it is not aware of any new information or data that materially affects the information included in the announcement of 17 April 2019, and that all material assumptions and technical parameters underpinning the estimates in the announcement of 17 April 2019 continue to apply and have not materially changed.

Exploration Results

The information in this report that relates to previous Exploration Results, was either prepared and first disclosed under the JORC Code 2004 or under the JORC Code 2012 and has been properly and extensively cross-referenced in the text to the date of original announcement to ASX. In the case of the 2004 JORC Code Exploration Results and Mineral Resources, they have not been updated to comply with the JORC Code 2012 on the basis that the information has not materially changed since it was last reported.

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About Rox Resources

Rox Resources Limited is an emerging Australian minerals exploration company. The Company has a number of key assets at various levels of development with exposure to gold, nickel, copper and platinum group elements (PGE’s). The 1.2Moz Youanmi Gold Project and the Fisher East Nickel Project (78kt Ni) being the most advanced projects with exploration ongoing at the Mt Fisher Gold Project and the Collurabbie Nickel-Copper-PGE Project.

Youanmi Gold Project (45% - 70%)

The Youanmi Gold Project is located 480 km to the northeast of Perth, Western Australia. The Youanmi Mining Centre has produced an estimated 667,000 oz of gold (at 5.47 g/t Au) since discovery in 1901 during three main periods: 1908 to 1921, 1937 to 1942, and 1987 to 1997.

The project is situated in the Youanmi Greenstone Belt, within the Southern Cross Province of the Archaean Yilgarn Craton in Western Australia. The structure of the Youanmi Project is dominated by the north-trending Youanmi Fault Zone. Most of the gold mineralisation seen at the project is hosted within north-northwest splays off the northnortheast trending Youanmi Fault.

The Youanmi Gold Project consist of four joint ventures with Venus Metals Corporation Limited. The OYG JV (Rox 70%, all minerals) covers 65km[2] and surrounds the Youanmi Gold Mine and nearby extensions; the VMC JV (Rox 50%, gold rights) lies immediately south of the OYG JV and covers 302km[2] with some 35km of strike the Youanmi shear zone; The Youanmi JV (Rox 45%, gold rights) covers 270km[2] and lies to the south west and north east of the OYG JV and the Currans Find JV (Rox 45%, all minerals) which covers 4km[2] and is located within the Youanmi Greenstone Belt and situated approximately 5 km north-northwest of the historical Penny West gold mine.

Fisher East Nickel Project (100%)

The Fisher East nickel project is located in the North Eastern Goldfields region of Western Australia and hosts several nickel sulphide deposits. The total project area is ~350km2.

Discovery of, and drilling at the Camelwood, Cannonball and Musket nickel prospects has defined a JORC 2012 Mineral Resource (ASX:RXL 5 February 2016) of 4.2Mt grading 1.9% Ni reported at 1.0% Ni cut-off (Indicated Mineral Resource: 3.7Mt grading 1.9% Ni, Inferred Mineral Resource: 0.5Mt grading 1.5% Ni) comprising massive and disseminated nickel sulphide mineralisation, and containing 78,000 tonnes of nickel. Higher grade mineralisation is present in all deposits (refer to ASX announcement above) and is still open at depth beneath each deposit. Additional nickel sulphide deposits continue to be discovered (e.g. Sabre) and these will add to the resource base. Exploration is continuing to define further zones of potential nickel sulphide mineralisation.

Collurabbie Gold-Nickel Project (100%)

The Collurabbie project is located in the highly prospective North Eastern Goldfields region of Western Australia and is prospective for gold and nickel. The project area of ~123km2 hosts the Olympia nickel sulphide deposit and a number of other prospects for nickel sulphide mineralisation. A JORC 2012 Inferred Mineral Resource of 573,000t grading 1.63% Ni, 1.19% Cu, 0.082% Co, 1.49g/t Pd, 0.85g/t Pt has been defined at Olympia (ASX:RXL 18 August 2017). The style of nickel sulphide mineralisation is different to that at Fisher East, with a significant copper and PGE component at Collurabbie, and has been compared to the Raglan nickel deposits in Canada (>1Mt contained nickel). In addition, there is potential for gold mineralisation, with several strong drilling intersections including 2m @ 2.4g/t Au from the Naxos prospect.

Mt Fisher Gold Project (100%)

The Mt Fisher gold project is located in the North Eastern Goldfields region of Western Australia, adjacent to the Fisher East nickel project, and hosts several gold deposits. The total project area is ~220km2.

Drilling by Rox has defined numerous high-grade gold targets and a JORC 2012 Measured, Indicated and Inferred Mineral Resource (ASX:RXL 11 July 2018) of 1.0 million tonnes grading 2.7 g/t Au reported at a 0.8 g/tAu cut-off exists for 89,000 ounces of gold (Measured: 170,000 tonnes grading 4.1 g/t Au, Indicated: 220,000 tonnes grading 2.7 g/t Au, Inferred: 630,000 tonnes grading 2.3 g/t Au) aggregated over the Damsel, Moray Reef and Mt Fisher deposits.

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Rule 5.5

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Appendix 5B

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

Name of entity

Rox Resources Limited

ABN Quarter ended ("current quarter") 53 107 202 602 30-Sep-20

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 (a) exploration & evaluation (b) development (c) production (d) staff costs (e) administration and corporate costs 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 1.9 Net cash from / (used in) operating activities - Other Other - Joint Venture Advances (expenditure)	- - (2,205) - - (211) (569) - 2 - - 38 160 2	- - (2,205) - - (211) (569) - 2 - - 38 160 2
	(2,783)	(2,783)
2 Cash flows from investing activities 2.1 Payments to acquire: (a) entities (b) tenements (c) property, plant and equipment (d) exploration & evaluation (e) investments (f) other non-current assets	- - (23) - - -	- - (23) - - -

ASX Listing Rules Appendix 5B (17/07/20)

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

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Consolidated statement of cash flows	Current quarter $A’000	Year to date (3 months) $A’000
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) investing activities	- - - 155 - - -	- - - 155 - - -
	132	132
3 Cash flows from financing activities 3.1 3.2 Proceeds from issue of convertible debt securities 3.3 Proceeds from exercise of options 3.4 ...... 3.5 Proceeds from borrowings 3.6 Repayment of borrowings 3.7 Transaction costs related to loans and borrowings 3.8 Dividends paid 3.9 Other (provide details if material) 3.10 Net cash from / (used in) financing activities Transaction costs related to issues of equity securities or convertible debt securities Proceeds from issues of equity securities (excluding convertible debt securities)	126 - - - - - -	126 - - - - - -
	126	126
4 ........ 4.1.... 4.2 ...... 4.3 ...... 4.4 ...... 4.5... 4.6 Cash and cash equivalents at end of period Net increase / (decrease) in cash and cash equivalents for the period Net cash from / (used in) operating activities (item 1.9 above) Net cash from / (used in) investing activities (item 2.6 above) Net cash from / (used in) financing activities (item 3.10 above) Cash and cash equivalents at beginning of period Effect of movement in exchange rates on cash held	10,568 (2,783) 132 126 -	10,568 (2,783) 132 126 -
	8,043	8,043

ASX Listing Rules Appendix 5B (17/07/20)

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

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Consolidated statement of cash flows	Current quarter $A’000	Previous quarter $A’000
5 5.1 5.2 5.3 5.4 5.5 ...... Reconciliation of cash and cash equivalents at the end of the quarter (as shown in the consolidated statement of cash flows) to the related items in the accounts Bank balances Call deposits Other (provide details) Cash and cash equivalents at end of quarter (should equal item 4.6 above) Bank overdrafts	8,003 40 - -	10,528 40 - -
	8,043	10,568
6 6.1 ...... 6.2 ...... Aggregate amount of payments to related parties and their associates included in item 2 Payments to related parties of the entity and their associates Aggregate amount of payments to related parties and their associates included in item 1		Current quarter $A'000
		(210) -
Note: if any amounts are shown in items 6.1 or 6.2, your quarterly activity report must include a description of, and an explanationfor, suchpayments.
7 Total facility amount at quarter end $A'000 Current quarter $A'000 7.1 - - 7.2 - - 7.3 - - 7.4 - - 7.5 - 7.6 Financing facilities Note: the term “facility’ includes all forms of financing arrangements available to the entity. Add notes as necessary for an understanding of the sources of finance available to the entity. Loan facilities Credit standby arrangements Other (Convertible Notes listed in item 3.2) Total financing facilities Unused financing facilities available at quarter end* 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.	Total facility amount at quarter end $A'000	Current quarter $A'000
	- - - -	- - - -
		-

ASX Listing Rules Appendix 5B (17/07/20) + See chapter 19 of the ASX Listing Rules for defined terms.

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8 8.1 8.2 8.3 8.4 8.5 8.6 8.8 8.7	$A’000 (2,783) - (2,783) 8,043 - 8,043 2.89 If item 8.7 is less than 2 quarters, please provide answers to the following questions: Estimated cash available for future operating activities Net cash from / (used in) operating activities (item 1.9) (Payments for exploration & evaluation classified as investing activities) (item 2.1(d)) Total relevant outgoings (item 8.1 + item 8.2) Cash and cash equivalents at quarter end (item 4.6) Unused finance facilities available at quarter end (item 7.5) Total available funding (item 8.4 + item 8.5) Estimated quarters of funding available (item 8.6 divided by item 8.3) 8.8.1. Does the entity expect that it will continue to have the current level of net operating cash flows for the time beingand,if not,whynot? 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.	$A’000
		(2,783) - (2,783) 8,043 - 8,043 2.89
	Answer: N/A
	8.8.2. Has the entity taken any steps, or does it propose to take any steps, to raise further cash to fund its operations and, if so, what are those steps and how likely does it believe that they will be successful?
	Answer: N/A
	3. Does the entity expect to be able to continue its operations and to meet its business objectives and,if so,on what basis?
	Answer: N/A
	Note: where item 8.7 is less than 2quarters, all ofquestions 8.8.1, 8.8.2 and 8.8.3 above must be answered.

ASX Listing Rules Appendix 5B (17/07/20) + See chapter 19 of the ASX Listing Rules for defined terms.

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Compliance statement

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• 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: 30 October 2020

Authorised by: Brett Dickson, Company Secretary

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.

• 2 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.

• 3 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.

• 4 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”.

• 5 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.

ASX Listing Rules Appendix 5B (17/07/20) + See chapter 19 of the ASX Listing Rules for defined terms.

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	Appendix 1	- Mining Tenements	- Mining Tenements
Project	Interest	Tenement Number	Interest Held at beginning ofquarter		Interest Held at end of quarter
Mt Fisher, WA	All Minerals	E53/1061		100%	100%
	All Minerals	E53/1106		100%	100%
	All Minerals	E53/1836		100%	100%
	All Minerals	E53/1319		100%	100%
	All Minerals	E53/1788		100%	100%
	All Minerals	M53/0009		100%	100%
	All Minerals	M53/0127		100%	100%
Fisher East, WA	All Minerals	E36/948		100%	100%
	All Minerals	E53/1218		100%	100%
	All Minerals	E53/1318		100%	100%
	All Minerals	E53/1716		100%	100%
	All Minerals	E53/1802		100%	100%
	All Minerals	E53/1884		100%	100%
	All Minerals	E53/1885		100%	100%
	All Minerals	E53/1886		100%	100%
	All Minerals	E53/1887		100%	100%
	All Minerals	E53/1950		100%	100%
	All Minerals	E53/2002		100%	100%
	All Minerals	E53/2018		100%	100%
	All Minerals	E53/2075		100%	100%
	Application	E53/2062		0%	0%
	Application	E53/2090		0%	0%
	Application	E53/2095		0%	0%
	Application	E53/2102		0%	0%
Collurabbie, WA	All Minerals	E38/2009		100%	100%
	All Minerals	E38/2912		100%	100%
	All Minerals	E38/3193		100%	100%
Youanmi Gold Project, WA	All Minerals	E57/1121		100%	100%
	All Minerals	E57/1122		100%	100%
	All Minerals	E57/1123		100%	100%
Youanmi - OYG JV, WA	All Minerals	M57/10		50%	70%
	All Minerals	M57/51		50%	70%
	All Minerals	M57/75		50%	70%
	All Minerals	M57/97		50%	70%
	All Minerals	M57/109		50%	70%
	All Minerals	M57/135		50%	70%
	All Minerals	M57/160A		50%	70%
	All Minerals	M57/164		50%	70%
	All Minerals	M57/165		50%	70%
	All Minerals	M57/166		50%	70%
	All Minerals	M57/167		50%	70%
Youanmi - Sandstone Youanmi JV,	Gold Rights	E57/985	Earning 45%		Earning 45%
	Gold Rights	E57/986	Earning 45%		Earning 45%
	Gold Rights	E57/1011-I	Earning 45%		Earning 45%
	Gold Rights	P57/1365	Earning 45%		Earning 45%
	Gold Rights	P57/1366	Earning45%		Earning45%
Youanmi - VMC JV, WA	Gold Rights	E57/982	Earning 50%		Earning 50%
	Gold Rights	E57/1018	Earning 50%		Earning 50%
	Gold Rights	E57/1019	Earning 50%		Earning 50%
	Gold Rights	E57/1023-I	Earning 50%		Earning 50%
	Gold Rights	E57/1078	Earning50%		Earning50%
Youanmi - Currans JV, WA	All Minerals	M57/641		45%	45%
	All Minerals	M57/642		45%	45%

ASX Listing Rules Appendix 5B (17/07/20) + See chapter 19 of the ASX Listing Rules for defined terms.

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	Appendix 1	- Mining Tenements	- Mining Tenements
Project	Interest	Tenement Number	Interest Held at beginning ofquarter	Interest Held at end of quarter
Mt Eureka - Cullen JV, WA	All Minerals	E53/1209	0%	Earning up to 75%
	All Minerals	E53/1299	0%	Earning up to 75%
	All Minerals	E53/1637	0%	Earning up to 75%
	All Minerals	E53/1893	0%	Earning up to 75%
	All Minerals	E53/1957	0%	Earning up to 75%
	All Minerals	E53/1958	0%	Earning up to 75%
	All Minerals	E53/1959	0%	Earning up to 75%
	All Minerals	E53/1961	0%	Earning up to 75%
	All Minerals	E53/2052	0%	Earningupto 75%

ASX Listing Rules Appendix 5B (17/07/20) + See chapter 19 of the ASX Listing Rules for defined terms.

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