SOLARA MINERALS LTD — Capital/Financing Update 2022

Feb 2, 2022

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ADDRESS Level 2, 22 Mount Street Perth WA 6000 PHONE +61 (08) 6188 8181

ABN

80 647 829 749 WEBSITE www.lycaonresources.com

3 February 2022

Rocky Dam Drilling Commences

Highlights :

• Phase 1 RC Drilling program commences at Rocky Dam gold project

• Drilling to investigate the primary source of the significant and extensive supergene gold mineralisation

Lycaon Resources Ltd (ASX:LYN) ( Lycaon or the Company ) is pleased to announce that it has commenced Phase 1 RC drilling activities at the Rocky Dam gold project ( Rocky Dam Project ) in the Goldfields region of Western Australia.

Mr Thomas Langley, Technical Director commented “The Phase 1 RC drilling will be critical to outlining the extent of gold mineralisation at Rocky Dam. The drilling will test for extensions of the historical high grade gold intersections of up to 13.8 g/t and extensive supergene mineralisation that is typical of larger deposits at depth. I’m pleased that we can undertake drilling activities early in 2022 and look forward to receiving assay results in Q2 this year.”

The drilling of the Rocky Dam Prospect will consist of 8 drill holes for a total of 1920m to investigate below the significant supergene mineralisation recorded to date. This drilling program is a high priority to better understand potential controls on mineralisation to expedite future drilling programs. Throughout the remainder of the tenure ongoing geophysical, geochemical and geological review is being undertaken to assist with new target identification and planning of further exploration programs.

Rocky Dam Project (Gold)

The Rocky Dam Project comprises nine (9) granted and one (1) pending Exploration Licences covering approximately 162.8km², a significant landholding in the highly prospective Norseman - Wiluna Greenstone Belt around the Yindarlgooda Dome within the Eastern Goldfields. The Project is centred 60km northeast of Kalgoorlie via sealed and well-maintained gravel roads. The Project is close to significant mining infrastructure and surrounds gold producer Northern Star Limited’s recent Kurnalpi Project acquisition and active explorers Riversgold Limited (ASX:RGL) and Black Cat Syndicate Limited (ASX:BC8).

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Figure 1. Lycaon Resources three major projects located in Western Australia.

The Rocky Dam Project lies within a favourable setting for orogenic gold and base metal-rich Volcanic Massive Sulphide-style (VMS) styles of mineralisation with multiple other prospects identified throughout the tenure. The large-scale supergene gold mineralisation recorded in historical drilling demonstrates a fertile project area potentially active during major Yilgarn greenstone mineralisation events, which presents a great opportunity to potentially discover primary bedrock mineralisation that may be the source of the supergene enrichment.

Exploration work to date at the Rocky Dam Project has identified gold mineralisation at the CRANorth Prospect. The prospect was first discovered in the 1990s as a 700m long gold anomaly along a sheared contact of felsic volcanics and black shales. Historical drilling has returned encouraging results delineating thick shallow zones of supergene gold mineralisation. The oxide mineralisation is associated with ferruginous quartz veining and sericite alteration, and remains open along strike with best results including:

• 40m @ 0.6 g/t Au [18m] in RDRC002 including 9m @ 1.7 g/t Au [40m]

• 21m @ 1.0 g/t Au [41m] in RDRC012 including 6m @ 2.8 g/t Au [52m]

• 4m @ 4.1 g/t Au [62m] in RDRC001 including 1m @ 13.8 g/t Au [67m]

• 15m @ 0.4 g/t Au [13m] in RDRC009 including 4m @ 1.3 g/t Au [17m]

• 20m @ 0.6 g/t Au [39m] in RDRC006 including 2m @ 3.0 g/t Au [39m]

• 2m @ 5.9 g/t Au [95m] in RDRC007

The significant low order gold mineralisation recorded in historical drilling suggests a mineralised system is present at CRA-North, warranting further drill testing. Initial exploration work programs will consist of RC and diamond drilling planned to delineate the strike extent of the oxide mineralisation and to test for primary mineralisation at depth. Geochemical sampling, geophysics and aircore drilling will be completed at regional targets.

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Figure 2. Rocky Dam Project Location and Geology

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Figure 3. View of the main quartz sulphide outcrops, looking northeast (from WAMEX Report A036766)

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Figure 4: Gold results from semi-continuous rock chip sampling completed by Anglo Australian

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This announcement has been authorised for release by the Directors of the Company.

Thomas Langley - Technical Director

For additional information please visit our website at www.lycaonresources.com

Competent Person’s Statement

The information in this document that relates to Exploration Results, Mineral Resources or Ore Reserves is based on information compiled by Mr. Thomas Langley who is a member of the Australian Institute of Geoscientists (MAIG) and a member of the Australasian Institute of Mining and Metallurgy (MAusIMM). Mr. Thomas Langley is a full-time employee of Lycaon Resources Limited, and is a shareholder, however Mr. Thomas Langley believes this shareholding does not create a conflict of interest, and Mr. Langley has sufficient experience which 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. Langley consents to the inclusion in this presentation of the matters based on his information in the form and context in which it appears.

The Company confirms that it is not aware of any new information or data that materially affects the information in the original reports, and that the forma and context in which the Competent Person’s findings are presented have not been materially modified from the original reports.

Listing Rule 5.23 Disclosure

The Company confirms that it is not aware of any new information or data that relates to Exploration Results at the Rocky Dam project as previously announced in the Prospectus lodged 29 September 2021.

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