SOLARA MINERALS LTD — Capital/Financing Update 2022

Jan 19, 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

20 January 2022

Rocky Dam Gold Project Update

Highlights :

• A further 5 tenements have recently been granted at the Rocky Dam Project bringing total granted tenure across the project to 170km²

• RC Drilling program to investigate the primary source of the significant and extensive supergene gold mineralisation to commence mid-February 2022

• Program of Works (PoW) submitted for Auger geochemical sampling across granted tenure to assist with new target identification prior to RC drilling

• High-level drone assisted magnetic surveys to commence shortly to further refine drill targets

Lycaon Resources Ltd (ASX:LYN) ( Lycaon or the Company ) is pleased to announce a further 5 tenements have recently been granted bring the total granted tenure at the Rocky Dam gold project ( Rocky Dam Project ) in the Goldfields region of Western Australia to 170km².

Mr Thomas Langley, Technical Director commented “It’s great to have such a large footprint of granted tenure so close to Kalgoorlie which will allow us to carry out our exploration work programs throughout 2022. I’m looking forward to completing the planned RC drilling at the Rocky Dam gold project in the next few weeks, to test for extensions of the historical high grade gold intersections of up to 13.8 g/t. The historical drilling provides a great dataset to assist with future drill targeting, and with the PoW already approved it’s allowed us to undertake drilling activities early in 2022.”

“Furthermore, PoW’s have been submitted for auger drilling across the Rocky Dam Project to assist with new target identification, in conjunction with an UltraMag Geophysical drone survey to provide high resolution magnetics to further assist in the identification of geological structures and refine targets prior to drilling.”

The drilling of the Rocky Dam Prospect is the top priority followed by other targets identified in the remainder of the tenure during the ongoing geophysical, geochemical and geological review.

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

Rocky Dam Project (Gold)

The Rocky Dam Project comprises four (4) granted and six (6) 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).

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

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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

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.

Forward-Looking Statements

This announcement contains “forward-looking statements.” All statements other than those of historical facts included in this announcement are forward-looking statements. Where the Company expresses or implies an expectation or belief as to future events or results, such expectation or belief is expressed in good faith and based upon information currently available to the company and believed to have a reasonable basis. Although the company believes the expectations expressed in such forward-looking statements are based on reasonable assumptions, such statements are not guarantees of future performance and no assurance can be given that these expectations will prove to be correct as actual results or developments may differ materially from those projected in the forward-looking statements. Forward-looking statements are subject to risks, uncertainties and other factors, which could cause actual results to differ materially from future results expressed, projected or implied by such forward-looking statements. Such risks include, but are not limited to, copper, gold, and other metals price volatility, currency fluctuations, increased production costs and variances in ore grade or recovery rates from those assumed in mining plans, as well as political and operational risks and governmental regulation and judicial outcomes. Readers are cautioned not to place undue reliance on forward-looking statements due to the inherent uncertainty thereof. The forward-looking statements contain in this press release are made as of the date of this press release and except as may otherwise be required pursuant to applicable laws, the Company does not undertake any obligation to release publicly any revisions to any “forward-looking statement”.

Competent Persons 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.

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