SULTAN RESOURCES LTD — Regulatory Filings 2020

May 19, 2020

Sultan Resources Ltd

ACN: 623652 522

CORPORATE DETAILS

ASX Code: SLZ

DIRECTORS

STEVEN GROVES MANAGING DIRECTOR

JEREMY KING CHAIRMAN

20th May 2020

HIGH GRADE GOLD & COPPER ROCKCHIP RESULTS WITHIN LARGE-SCALE SOIL ANOMALIES DEFINE PORPHYRY TARGETS AT BIG HILL, NSW

DAVID LEES NON-EXECUTIVE DIRECTOR

CONTACT

Suite 2, Level 1, 1 Altona Street West Perth WA 6005 www.sultanresources.com.au info@sultanresources.com.au

• Spectacular gold & copper rock chip assays returned from the historical Gowan Green working, north of the Big Hill Prospect include:

• 24.6g/t Au & 26.1% Cu

• 2.69g/t Au & 7.55% Cu

• 1.16g/t Au & 12.55% Cu

• 0.51g/t Au & 4.49% Cu

• 0.94g/t Au & 5.71% Cu

• High grade copper rock chip assays returned from altered porphyry rocks at the Big Hill Prospect include:

• 2.50% Cu

• 2.21% Cu

• 2.14% Cu

• 1.30% Cu

• Soil sampling over the western flank of a 6km long magnetic feature has defined a series of gold and copper anomalies with classic porphyry geochemical pathfinder signatures coincident with the mineralised rock chip samples and discrete magnetic highs, confirming large scale targets.

• These prospects are untested by drilling and open to the east

• Further sampling and I.P. geophysical survey being planned to define drill targets.

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A SPR014 - 2.21% Cu B SPR020 – 24.6g/t Au & 26.1% Cu
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Figure 1: A -Example of native Cu in epidote altered feldspar porphyry from Big Hill. B -High Grade Cu and Au from malachite veined gossanous mullock at Gowan Green

ASX ANNOUNCEMENT - 20TH MAY 2020

Sultan Resources Limited (ASX: SLZ) ( Sultan or Company ) is pleased to announce results from the first batch of soil and rock chip sampling returned from ongoing exploration programs across the Company’s Lachlan Fold Belt (“LFB”) Porphyry Au-Cu projects (see ASX announcement 08/05/2020).

The ongoing exploration program is designed to identify drill targets with high potential to host porphyry-style Au-Cu and/or epithermal gold mineralisation across the three highly prospective targets at Big Hill, Ringaroo and Tucklan. The Company has received results for work undertaken at the first of these projects, Big Hill in the southwest of EL8375.

Significant Results

Geological mapping, soil and rock chip sampling has initially targeted the western flank of the Big Hill magnetic high complex, designed to identify often subtle surface indications of buried porphyry AuCu style mineralisation. Surface features typically associated with this style of mineralisation in the Macquarie Arc include large zoned Au-Cu and key pathfinder surface geochemical anomalism, zoned hydrothermal alteration facies including propylitic and sodic, and litho-geochemical indicators of volcanic arc rock-types ideally coincident with strong magnetic signatures.

The Company is pleased to report results that confirm all of these features, whilst defining three priority targets: Gowan Green, Big Hill and Wattle Ridge.

Jeremy King, Chairman of Sultan Resources commented:

“ Receipt of such outstanding soil and rock chip results within weeks of shareholders approving the acquisition is a timely reward. To have such high grade gold and copper results returned from within new large scale soil anomalies, coincident with the right rock types, porphyry style alteration and mineralisation, all sitting above a large magnetic complex confirms the Big Hill area as one with significant potential ”.

Gowan Green

Lying immediately to the north of Big Hill, the Gowan Green prospect is centred upon a subtle historic gold and copper working showing gossanous malachite-azurite veined, propylitic altered (epidotechlorite-carbonate-albite) mafic volcanic rocks (Figures 1, 2 and 3) in mullock heaps overlying a subtle magnetic high anomaly. Rock samples of this material have returned spectacular results, including:

Table 1: Significant results from the Gowan Green rock samples

Sample ID	Au g/t	Cu %	Ag g/t	Sample Type
SPR020	24.6	26.1	65.5	Mullock
SPR021	2.69	7.55	20.0	Mullock
SPR022	0.51	4.49	7.7	Mullock
SPR023	0.35	5.96	11.7	Mullock
SPR024	0.94	5.71	21.6	Mullock
SPR025	0.04	10.1	7.9	Mullock
SPR026	1.16	12.55	24.8	Mullock

The high grade Au-Cu rock chip samples validate a newly defined large (>1.5km x >0.10km), low level Au-Cu + pathfinder soil geochemical anomaly associated with a discrete magnetic high (~300m diameter) anomaly and NE-SW structural corridor (Figure 5). Limestone stratigraphy, possibly forming a cap-rock displays numerous small zones of possible skarn mapped intermittently over a ~600m x ~300m area. Litho-geochemical studies of the multi-element assay data confirm Gowan Green rocks are calc alkaline basalts, with a volcanic arc tectonic signature consistent with being part of the Molong Volcanic Belt, Macquarie Arc. The target is therefore considered highly prospective for the discovery of porphyry related Cu-Au deposits.

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ASX ANNOUNCEMENT - 20TH MAY 2020

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Figure 2: High grade sample SPR020 showing Malachite Veined Gossan (limonite mesh box works after sulphide) from mullock at the Gowan Green historic workings.

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Figure 3: High grade sample SPR021 showing Malachite & Azurite veined, chlorite altered mafic volcanic from mullock at the Gowan Green historic workings.

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ASX ANNOUNCEMENT - 20TH MAY 2020

Big Hill

The Big Hill target is marked by a large, high amplitude ovoid shaped magnetic high complex traversed by north-west striking structures. Mapping and soil geochemistry has defined a 2.2km x 0.4km target area containing epidote-veined, pervasive propylitic (epidote) altered, feldspar – pyroxene porphyry with significant disseminated & veined native copper and malachite (Figure 4). Rock samples of this material have returned:

Table 2: Significant results from the Big Hill rock samples

Sample ID	Cu %	Sample_Type
SPR004	1.30	Float
SPR005	2.40	Float
SPR006	0.17	Float
SPR014	2.21	Float
SPR015	2.50	Float

The pathfinder geochemical signature is associated with localized disseminated pyrite in ‘green rock’ (chlorite-epidote-albite-actinolite-sericite-hematite-carbonate-prehnite-pyrite-magnetite) altered basaltic andesite volcaniclastic breccias. Encouragingly localized zones of hematite-albite ‘reddened’ altered feldspar porphyries and zones of sodic (silica-albite-pyrite) alteration has been observed (Figures 4 & 5) with up to 6.14% sulphur and 9.0% Na2O recorded (Appendix 1, Table of Rock Sample assay results).

The identification of localized sodic alteration, hematite-albite alteration (‘reddening’), disseminated pyrite associated with ‘green rock’ alteration and the distinct pathfinder geochemical signature is consistent with upper or outer parts of an alkalic porphyry Au-Cu system such as the high grade CadiaRidgeway porphyry Au-Cu mine 50km to the south, and the Boda discovery approximately 50kms to the north.

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Figure 4: Sample SPR014 from Big Hill showing epidote-quartz-carbonate-copper (native Cu, malachite, azurite & chalcocite) veins in pervasive propylitic (epidote) altered, feldspar -pyroxene porphyry, with disseminated copper (native Cu ±malachite)

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ASX ANNOUNCEMENT - 20TH MAY 2020

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Sample SPR008
Albite-Silica-Pyrite
A 9.0% Na20 2.12% S B C
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Figure 5: Examples of hydrothermal alteration of volcanic rocks from Big Hill. Sample A shows Sodic Alteration with albite-silica-pyrite assemblage (Alkalic litho-cap style); B shows ‘Reddened’ altered volcanic from a hematite-albite assemblage and C shows pervasive fine-grained disseminated pyrite

Big Hill Soil Results

Nominal grid 100m x 200m spaced soil sampling across the Big Hill magnetic complex has returned a significant large-scale (2.2km x 0.40km), low level Au-Cu + pathfinder soil geochemical anomaly (Figure 6), which is open to the south east and represents a compelling exploration target. Complementing the rock chip results outlined above, the soil anomaly adds scale to the Big Hill target whilst also encapsulating propylitic and sodic altered basaltic volcaniclastic rocks, lavas and feldspar porphyries, localized zones of disseminated pyrite, epidote veining with secondary copper (native copper, malachite and azurite), magnetite veining and hematite / feldspar veining. All of these features occur above the magnetic high complex interpreted to represent the upper or outer parts of a buried Late Ordovician-Early Silurian intrusive complex hosted in the same rocks as Alkane’s Boda discovery.

A small creek drainage may obscure soil sampling effectiveness between the Gowan Green and Big Hill Au-Cu soil anomalies, making it possible that Big Hill and Gowan Green may be part of the one porphyry system.

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ASX ANNOUNCEMENT - 20TH MAY 2020

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Figure 6: Top: Gold and Copper soil results (100m x 200m grid) on aerial photograph illustrating rock chip locations. Bottom: Gold (>3.1ppb Au) and Copper (>94ppm Cu) Soil Contours (100m X 200m Sample Grid) on RTP NE Shade Aeromagnetic Image overlain by the significant rock sample locations.

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ASX ANNOUNCEMENT - 20TH MAY 2020

Forward Exploration Program

Big Hill Prospects, NSW

Follow up exploration at Big Hill will continue in the next Quarter with

• High resolution ground IP surveying designed to locate chargeability features (pyrite halos) coincident with the multidisciplinary surface anomalism and:

• Ongoing geochemical sampling and mapping to the east of the current soil anomaly to test the remainder of the magnetic complex

Ringaroo Prospect, NSW

A soil and rock chip sampling campaign has commenced at the Ringaroo porphyry Cu-Au target in the north of EL8735 (Figure 7). The Ringaroo target is located directly along strike to the south of Impact Minerals “Apsley” target (ASX Announcement 22/11/2019) where a high amplitude magnetic high anomaly has been defined on Sultan’s tenure.

Tucklan Project, NSW

Soil and Rock sampling results are pending for the Tucklan Au Project, EL8734 (Figure 6), where field investigations are continuing.

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ASX ANNOUNCEMENT - 20TH MAY 2020

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Tucklan Au
target
Ringaroo
Cu-Au target
Big Hill Cu-
Au target
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Figure 7: Location Map – Colossus Tenements over the prospective Macquarie Arc sequence

This announcement is authorised by Steve Groves, Managing Director

For further information contact: Managing Director Investor Relations Steve Groves Peter Taylor info@sultanresources.com.au Peter@nwrcommunications.com.au 0412 036 231

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ASX ANNOUNCEMENT - 20TH MAY 2020

Competent Persons Statement

The information in this report that relates to Exploration Targets and Exploration Results is based on historical exploration information compiled by Mr Steven Groves, who is a Competent Person and a Member of the Australian Institute of Geoscientists. Mr Groves is Managing Director and a full-time employee of Sultan Resources Limited. Mr Groves has sufficient experience that is relevant to the style of mineralisation and type of deposit under consideration and to the activity being undertaken to qualify as a Competent Person as defined in the 2012 Edition of the “Australasian Code for the reporting of Exploration Results, Mineral Resources and Ore Reserves”. Mr Groves consents to the inclusion in the report of the matters based on his information in the form and context in which it appears.

About Sultan Resources

Sultan Resources is an Australian focused exploration company with a portfolio of quality assets in emerging discovery terranes currently targeted by successful explorers such as Newcrest Mining, Alkane Resources, Gold Road Resources, and Sandfire Resources. Sultan’s tenement portfolio includes prospective targets for porphyry Au-Cu, structurallyhosted gold, Nickel, Cobalt and base metals and include tenements located in the highly prospective Lachlan Fold Belt of Central NSW as well as projects located within the southern terrane region of the Yilgarn Craton in south and south eastern Western Australia. Sultan’s board and management strategy is for a methodical approach to exploration across the prospects in order to discover gold and base metals that may be delineated via modern exploration techniques and exploited for the benefit of the company and its shareholders.

Appendix 1: Table of assay results from Rock samples at Big Hill

SampleID	Sample_Type	MGA_East	MGA_North	Au ppm	Ag ppm	As ppm	Bi ppm	Cu ppm	In ppm	Mo ppm	Na %	Ni ppm	Pb ppm	S %	Se ppm	Te ppm
SPR001	Outcrop	684533	6367222	0.001	0.0	10	0.03	64	0.061	0.53	2.79	4	8	0.01	0.5	0.025
SPR002	Outcrop	684500	6367258	0.003	0.0	4	0.02	64	0.049	0.49	3.36	11	4	0.32	0.5	0.025
SPR003	Outcrop	684291	6366977	0.004	0.0	4	0.04	58	0.043	0.86	2.86	15	5	0.005	0.5	0.025
SPR004	Float	684312	6366942	0.007	2.9	45	0.15	13000	0.073	1.13	0.95	3	34	0.01	0.5	0.025
SPR005	Float	684313	6366943	0.001	3.8	67	0.15	24000	0.061	0.99	0.09	3	43	0.005	0.5	0.025
SPR006	Float	684296	6366983	0.002	0.5	13	0.05	1680	0.046	0.71	5.35	16	8	0.01	0.5	0.025
SPR007	Outcrop	684580	6367719	0.004	0.1	13	0.06	176	0.063	0.89	3.41	13	5	0.87	1	0.16
SPR008	Outcrop	684373	6367499	0.001	0.2	47	0.04	324	0.025	3.41	6.68	3	19	2.12	5	0.3
SPR009	Outcrop	684721	6367669	0.004	0.1	13	0.07	174	0.063	0.82	3.37	13	6	0.78	1	0.09
SPR010	Outcrop	684713	6367995	0.005	0.1	21	0.07	139	0.066	0.9	2.67	19	6	1.74	1	0.24
SPR011	Float	684493	6367232	0.001	0.0	4	0.02	49	0.025	0.39	4.29	10	2	0.07	0.5	0.025
SPR012	Outcrop	684732	6367482	0.004	0.1	18	0.92	114	0.051	6.87	3.49	17	10	4.45	1	0.34
SPR013	Subcrop	684508	6367661	0.004	0.1	20	0.68	73	0.039	1.3	5.56	3	6	1.01	6	1.75
SPR014	Float	684288	6366977	0.003	7.0	168	0.03	22100	0.044	1.51	0.22	10	23	0.01	0.5	0.025
SPR015	Float	684289	6366978	0.002	9.2	207	0.03	25000	0.042	1.65	0.12	8	21	0.02	0.5	0.025
SPR016	Outcrop	684505	6367261	0.007	0.1	30	0.1	162	0.094	1.03	2.69	20	9	6.14	1	1.12
SPR017	Outcrop	684534	6367765	0.006	0.2	26	0.06	234	0.054	0.97	4.04	11	25	3.45	2	1.58
SPR018	Outcrop	684506	6367944	0.009	0.2	32	0.1	255	0.066	0.62	2.12	14	7	0.91	1	0.17
SPR019	Outcrop	684524	6367764	0.005	0.2	23	0.24	143	0.075	1.17	3.22	22	15	3.23	7	0.35
SPR020	Mullock	684568	6369967	24.6	65.5	938	91.4	261000	4.88	4.19	0.03	3630	584	0.07	116	171.5
SPR021	Mullock	684569	6369967	2.69	20.0	203	17.35	75500	0.619	1.06	1.92	3740	177	0.03	14	16.7
SPR022	Mullock	684568	6369968	0.513	7.7	174	2.23	44900	0.177	0.56	1.66	2320	28	0.01	2	4.08
SPR023	Mullock	684568	6369969	0.353	11.7	93	1.85	59600	0.141	0.7	2.96	2730	69	0.14	2	3.05
SPR024	Mullock	684567	6369967	0.939	21.6	95	3.46	57100	0.252	0.57	3.41	2670	82	0.06	6	6.01
SPR025	Mullock	684567	6369966	0.038	7.9	105	1.51	101000	0.06	0.7	2.04	5130	32	0.12	1	0.65
SPR026	Mullock	684569	6369968	1.16	24.8	654	2.77	125500	0.447	0.61	1.7	4650	125	0.04	5	8.03

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Appendix 2: JORC Code, 2012 Edition Table 1 – Colossus Metals

Section 1 Sampling Techniques and Data

(Criteria in this section apply to all succeeding sections.)

• Criteria JORC Code explanation Sampling • Nature & quality of sampling (e.g. cut channels, random chips, or specific techniques specialised industry standard measurement tools appropriate to the minerals under investigation, such as down hole gamma sondes, or handheld XRF instruments, etc.). These examples should not be taken as limiting the broad meaning of sampling.

• Include reference to measures taken to ensure sample representivity & the appropriate calibration of any measurement tools or systems used.

• Aspects of the determination of mineralisation that are Material to the Public Report.

• In cases where ‘industry standard’ work has been done this would be relatively simple (e.g. ‘reverse circulation drilling was used to obtain 1 m samples from which 3 kg was pulverised to produce a 30 g charge for fire assay’). In other cases more explanation may be required, such as where there is coarse gold that has inherent sampling problems. Unusual commodities or mineralisation types (e.g. submarine nodules) may warrant disclosure of detailed information.

Commentary

Current Rock sampling program

• Rock chip samples were taken in the field during field inspection of the Big Hill porphyry target

• Rock samples were collected from surface outcrop and float

• Outcrop samples are resistant portions of the local geology and are considered to be in situ. Float samples are interpreted to have been sourced from local area..

• Samples weighing up to several kilograms were collected

Current soil sampling program

• All soil sample points were located using a hand-held GPS with +/-5m accuracy utilising MGA zone 55 (GDA94) coordinate system. Surface organic matter was removed from the sample site using a hand pick and shovel and a 25cm x 25cm x 25cm deep hole was dug using a mattock, with a sample of primarily B soil horizon collected. The soil sample was screened using a 3mm mesh aluminium sieve and a 200-250 gram sub sample of -3mm fraction was retained in a labelled soil geochemical bag for analysis. Soil sample IDs and locations are stored digitally in a register which also notes sample content and conditions. External certified reference material / standards, blanks and duplicates are submitted every 50th, 51st and 52nd sample respectively for QAQC purposes.

ASX ANNOUNCEMENT - 20TH MAY 2020

Criteria	JORC Code explanation	Commentary
Drilling	• Drill type (eg core, reverse circulation, open-hole hammer, rotary air blast,	• N/A
techniques	auger, Bangka, sonic, etc.) & details (e.g. core diameter, triple or standard
	tube, depth of diamond tails, face-sampling bit or other type, whether core is
	oriented & if so, by what method, etc.).
Drill sample	• Method of recording & assessing core & chip sample recoveries & results	• N/A
recovery	assessed.
	• Measures taken to maximise sample recovery & ensure representative
	nature of the samples.
	• Whether a relationship exists between sample recovery & grade & whether
	sample bias may have occurred due to preferential loss/gain of fine/coarse
	material.
Logging	• Whether core & chip samples have been geologically & geotechnically	Current Rock sampling program
	logged to a level of detail to support appropriate Mineral Resource estimation, mining studies & metallurgical studies.	• A short geological description was taken at each sample point
	• Whether logging is qualitative or quantitative in nature. Core (or costean, channel, etc.) photography.	• The description is qualitative and includes lithology, alteration and mineralisation
	• The total length & percentage of the relevant intersections logged.
Sub-sampling	• If core, whether cut or sawn & whether quarter, half or all core taken.	Current Rock and soil sampling program
techniques & sample preparation	• If non-core, whether riffled, tube sampled, rotary split, etc.& whether sampled wet or dry.	• The sample preparation for both rock and soils follows industry best practise involving oven drying, crushing and pulverisation
	• For all sample types, the nature, quality & appropriateness of the sample
	preparation technique.
	• Quality control procedures adopted for all sub-sampling stages to maximise
	representivity of samples.
	• Measures taken to ensure that the sampling is representative of the in situ
	material collected, including for instance results for field duplicate/second-
	half sampling.
	• Whether sample sizes are appropriate to the grain size of the material being
	sampled.

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ASX ANNOUNCEMENT - 20TH MAY 2020

Criteria	JORC Code explanation	Commentary	Commentary
Quality of	• The nature, quality & appropriateness of the assaying & laboratory	•	Rock samples are analysed for 48 elements including Ag, Al, As, Ba, Be, Bi, Ca,
assay data &	procedures used & whether the technique is considered partial or total.		Cd, Ce, Co, Cr, Cs, Cu, Fe, Ga, Be, Hf, In, K, La, Li, Mg, Mn, Mo, Na, Nb, Ni, P,
laboratory	• For geophysical tools, spectrometers, handheld XRF instruments, etc., the		Pb, Rb, Re, S, Sb, Sc, Se, Sn, Sr, Ta, Te, Th, Ti, Tl, U, V, W, Y Zn and Zr using
tests	parameters used in determining the analysis including instrument make &		method ME-MS61 (four acid ICP-MS). Gold will be analysed separately using
	model, reading times, calibrations factors applied & their derivation, etc.		ALS method Au-AA22, with a lower detection limit of 0.001 ppm.
	• Nature of quality control procedures adopted (e.g. standards, blanks, duplicates, external laboratory checks) & whether acceptable levels of	•	Soil Samples were analysed for 53 elements including Au, Ag, Al, As, B, Ba, Be, Bi, Ca, Cd, Ce, Co, Cr, Cs, Cu, Fe, Ga, Ge, Hf, Hg, In, K, La, Li, Mg, Mn, Mo,
	accuracy (i.e. lack of bias) & precision have been established.		Na, Nb, Ni, P, Pb, Pd, Pt, Rb, Re, S, Sb, Sc, Se, Sn, Sr, Ta, Te, Th, Ti, Tl, U, V, W,
			Y, Zn & Zr using method AuME-ST44.
		•	External certified reference material / standards, blanks and duplicates are
			submitted every 50th, 51st and 52nd sample respectively for QAQC
			purposes.
Verification	• The verification of significant intersections by either independent or	•	All data are verified by at least two experienced Colossus Metals geologists.
of sampling & assaying	alternative company personnel. • The use of twinned holes.	•	Data are sored in a digital database and interrogated using the ioGasTM geochemical software suite.
	• Documentation of primary data, data entry procedures, data verification,	•	Na% multiplied by a factor of 1.346 to convert to Na2O in Figure 4
	data storage (physical & electronic) protocols.
	• Discuss any adjustment to assay data.
Location of	• Accuracy & quality of surveys used to locate drill holes (collar & down-hole	•	A handheld GPS was used to locate each sample point. Accuracy of +/- 5m is
data points	surveys), trenches, mine workings & other locations used in Mineral		considered reasonable
	Resource estimation.
		•	MGA94, Zone 55
	• Specification of the grid system used.	•	Elevation were in AHD (MGA94, Zone 55)
	• Quality & adequacy of topographic control.
Data spacing	• Data spacing for reporting of Exploration Results.	•	Soil samples from the current program are collected across a grid spaced
& distribution	• Whether the data spacing & distribution is sufficient to establish the degree of geological & grade continuity appropriate for the Mineral Resource & Ore Reserve estimation procedure(s)&classifications applied.		at • Big Hill - 100m x 200m • Ringaroo - 200m x 200m.
	• Whether sample compositing has been applied.

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ASX ANNOUNCEMENT - 20TH MAY 2020

Criteria	JORC Code explanation	Commentary	Commentary
		•	These spacings are considered reasonable to provide sufficient
			geochemical coverage over the target types sought.
Orientation of	• Whether the orientation of sampling achieves unbiased sampling of possible	•	N/A
data in	structures & the extent to which this is known, considering the deposit type.
relation to geological	• If the relationship between the drilling orientation & the orientation of key mineralised structures is considered to have introduced a sampling bias, this
structure	should be assessed & reported if material.
Sample	• The measures taken to ensure sample security.	All	geochemical samples were selected by geologists in the field delivered
security		directly to the lab by Colossus,
Audits or	• The results of any audits or reviews of sampling techniques & data.	•	Not applicable
reviews

(Criteria listed in the preceding section also apply to this section.)

		Criteria	JORC Code explanation	Commentary	Commentary
		Mineral	• Type, reference name/number, location & ownership including agreements	•	The licences referred to in this document are part of an acquisition by
		tenement &	or material issues with third parties such as joint ventures, partnerships,		Sultan Resources for 100% of the assets of Colossus Metals. The licences
		land tenure	overriding royalties, native title interests, historical sites, wilderness or		include EL8734, EL8704 and EL8735, which together cover a total area of
		status	national park & environmental settings.		approximately 326 km2 within the Lachlan Fold Belt of central NSW. A
			• The security of the tenure held at the time of reporting along with any known impediments to obtaining a licence to operate in the area.		summary of the material terms and conditions of the Proposed Acquisition, pursuant to the Term Sheet, are as follows:
					• Completion of the Proposed Acquisition is subject to and conditional
					upon a number of conditions precedent, including due diligence,
					obtaining any necessary third-party consents and the Company
					obtaining all necessary shareholder and regulatory approvals for the
					Proposed Acquisition.
					• The Company will pay of a non-refundable exclusivity fee of $50,000.

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ASX ANNOUNCEMENT - 20TH MAY 2020

Criteria	JORC Code explanation	Commentary	Commentary
		•	If the conditions precedent are satisfied, the Company will provide
			the following consideration for the Proposed Acquisition:
		•	10,000,000 fully paid ordinary shares (at a deemed issue price of 7.5
			cents) in the capital of the Company, subject to a voluntary escrow
			period of six (6) months from the date of execution of the Term Sheet
			(Consideration Shares); and
		•	$100,000 cash consideration.
		•	The Company will issue, subject to completion of the Proposed
			Acquisition, a total of 1,000,000 fully paid ordinary shares in the
			capital of the Company to Xcel Capital Pty Ltd and Arq Capital Pty Ltd
			(and/or their nominees) in respect of their role in identifying the
			Projects, consideration of the Projects as a commercial opportunity
			for the Company, and for assisting the Company to negotiate the
			terms of the Proposed Acquisition (Facilitation Shares).
		•	The Terms Sheet also contains the following additional material terms
			and conditions:
		•	the Company will grant the Vendors (or their nominee) a two percent
			(2%) net smelter royalty in respect of the tenements comprising the
			Projects; and
		•	the Company will be responsible for maintaining the Projects, on and
			from execution of the Term Sheet.
		EL8734	and 8735 are due for renewal in April 2020 and Sultan has been
		advised	by Colossus that all expenditure commitments have been met for the
		respective 2 year term.
Exploration	• Acknowledgment & appraisal of exploration by other parties.	• Previous exploration over EL8735 has been limited. Work reported was
done by other		generally generative in nature and at a reconnaissance level. The most
parties		detailed exploration was undertaken by Clancy Exploration during the period
		2006 – 2016 and is considered to have been performed to a high standard.
Geology	• Deposit type, geological setting & style of mineralisation.	The Project lies halfway between the Cadia and Boda Cu-Au porphyries within
		the central MolongBelt of the Ord Macquarie Arc,East Lachlan,NSW. It is

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ASX ANNOUNCEMENT - 20TH MAY 2020

Criteria	JORC Code explanation	Commentary
		located on the Intersection of a major N-S striking arc parallel and NW-SE
		striking cross arc structural corridors,
		The Lachlan Orogen is approximately 700 km wide and 1000 km long and has
		disputed complex evolutionary history. The Macquarie Arc is part of the
		eastern sub-province of the Lachlan Orogen and is the host to numerous
		porphyry Au–Cu deposits. It consists mainly of subduction-related Ordovician
		intermediate and mafic volcanic, volcaniclastic and associated intrusive rocks
		and was accreted to Gondwana in the Early Silurian, and underwent rifting
		and burial in the Middle to Late Silurian.
		It consists of four structural belts, namely, the western (Junee-Narromine),
		the central (Molong), the eastern (Rockley-Gulgong) Belt, and southern
		(Kiandra) volcanic belts. These belts have most likely been formed by rifting
		and dismemberment of a single arc, which developed along the boundary
		between the Australian and proto-Pacific plates during the Ordovician and
		was subsequently dismembered during the Silurian.
		An entirely intra-oceanic setting is postulated for the Macquarie Arc
		(Crawford et al., 2007), with four phases of arc-type magmatism, the earliest
		in the Early Ordovician, and culminating in the Late Ordovician to Early
		Silurian. The four phases of volcanism in the Macquarie Arc relate to distinct
		groups of porphyritic intrusions that vary from monzodiorite-diorite through
		monzonite-granodiorite compositions and correspond with porphyry copper-
		gold and epithermal gold-silver mineralisation
		Lithology
		The Big Hill target eshibits features consistent with an Alkalic intrusive
		complex, with mineralogy & textures typical of the Cadia Intrusive Complex,
		including outcropping monzogabbro, diorite, monzodiorite & mafic
		monzonite porphyry dykes & small plugs or ‘apophyses’.
		Intrusives have intruded interpreted Cadia and Boda equivalent stratigraphy
		being the Late Ordovician Oakdale Volcanics, including an upper volcanic
		dominant and lower volcano-sedimentary package equivalent to the Forest

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Criteria	JORC Code explanation	Commentary
		Reef Volcanics & Weemalla Fm at Cadia and Kaiser Volcanics & Bodangora Fm
		at Boda.
		An upper sequence consisting of basalt, andesite, trachyte & latite lavas,
		volcaniclastics and sub volcanic intrusions including feldspar-pyroxene
		porphyry dykes has been recognised. The lower sequence dominated by
		finely laminated, interbedded, volcaniclastic siltstones and sandstones, with
		localised skarn horizons.
Drill hole	• A summary of all information material to the understanding of the	Table of rock sample locations is included in Appendix 1
Information	exploration results including a tabulation of the following information for all
	Material drill holes:
	o Easting & northing of the drill hole collar
	o elevation or RL (Reduced Level – elevation above sea level in metres) of
	the drill hole collar
	o dip & azimuth of the hole
	o down hole length & interception depth
	o hole length.
	• If the exclusion of this information is justified on the basis that the
	information is not Material & this exclusion does not detract from the
	understanding of the report, the Competent Person should clearly explain
	why this is the case.
Data	• In reporting Exploration Results, weighting averaging techniques, maximum	• N/A
aggregation	and/or minimum grade truncations (e.g. cutting of high grades)&cut-off
methods	grades are usually Material & should be stated.
	• Where aggregate intercepts incorporate short lengths of high grade results
	& longer lengths of low grade results, the procedure used for such
	aggregation should be stated & some typical examples of such aggregations
	should be shown in detail.
	• The assumptions used for any reporting of metal equivalent values should be
	clearly stated.

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ASX ANNOUNCEMENT - 20TH MAY 2020

Criteria	JORC Code explanation	Commentary	Commentary
Relationship	• These relationships are particularly important in the reporting of	•	N/A
between	Exploration Results.
mineralisatio n widths &	• If the geometry of the mineralisation with respect to the drill hole angle is known, its nature should be reported.
intercept lengths	• If it is not known & only the down hole lengths are reported, there should be a clear statement to this effect (e.g.‘down hole length, true width not
	known’).
Diagrams	• Appropriate maps & sections (with scales)&tabulations of intercepts should	•	See maps and figures accompanying this ASX release.
	be included for any significant discovery being reported These should
	include, but not be limited to a plan view of drill hole collar locations &
	appropriate sectional views.
Balanced	• Where comprehensive reporting of all Exploration Results is not practicable,	•	Reference has been made to anomalous levels of geochemical pathfinder
reporting	representative reporting of both low & high grades and/or widths should be		elements in the document. This interpretation has been determined by
	practiced to avoid misleading reporting of Exploration Results.		experienced Colossus Metals’ geologists using the ioGasTMgeochemical
			software. It is impractical to present every result for all 53 elements across the
			sample population in this document. A map showing the distribution of
			anomalous Cu has been included for reference.
Other	• Other exploration data, if meaningful & material, should be reported	•	In February 2013, Clancy Exploration completed an 1805 line-km helicopter-
substantive	including (but not limited to): geological observations; geophysical survey		based magnetic and radioelement survey using Aerosystems Pty Ltd over
exploration	results; geochemical survey results; bulk samples – size&method of		EL6661. Data was collected on 75m line spacings. This survey covered the
data	treatment; metallurgical test results; bulk density, groundwater,		southern portions of EL8735. The survey is of excellent quality and areas of
	geotechnical & rock characteristics; potential deleterious or contaminating		high magnetic intensity correlate to portions of Ordovician volcanic and
	substances.		volcaniclastic sequences
Further work	• The nature & scale of planned further work (e.g. tests for lateral extensions	•	The focus on future work will be to ultimately generate targets for drilling.
	or depth extensions or large-scale step-out drilling).		Work to enable this will include further soil sampling programs coupled with
	• Diagrams clearly highlighting the areas of possible extensions, including the		dipole-dipole IP geophysics to locate bodies of disseminated sulphides
	main geological interpretations & future drilling areas, provided this		beneath the surface. If sufficient encouragement is gained from this work,
	information is not commercially sensitive.		then deeper RC or diamond drilling is anticipated.

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