SUREFIRE RESOURCES NL — Capital/Financing Update 2022

May 2, 2022

3 May 2022

ASX Announcement ASX Codes: SRN and SRNOC

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VICTORY BORE VANADIUM PROJECT (100%)

BENEFICIATION STUDY UPDATE CONFIRMS ECONOMIC VIABILITY

Scoping Study Highlights

• An update to beneficiation costs in the existing Scoping Study has been completed

• Update confirms the economic viability of the project at prevailing vanadium prices

• Proposed operation will use industry-standard beneficiation equipment and processes

• Flowsheet remains unchanged; opportunities for improvement identified

• This update is a prelude to embarking on a full Prefeasibility Study

Surefire Resources NL (“ Surefire ”, “the Company ”) is pleased to report on the updated beneficiation Scoping Study of its 100% owned Victory Bore Vanadium Project located in the Yilgarn of Western Australia (Figure 1) (ASX:SRN 19 April 2022).

Quest Minerals, predecessor to Surefire, undertook the original Scoping Study on the Victory Bore Vanadium Project in 2012 (ASX:QNL 31 January 2012). Following a sustained increase in the vanadium price (ASX:SRN 31 March 2022), Surefire commissioned industry leader MinRizon to review and update that study with prevailing costs and identify opportunities for process improvements.

The Scoping Study is based on the Mineral Resource Estimate completed by CSA Global Pty Ltd in accordance with JORC(2012) and announced on 29 June 2017. The estimate was prepared and authorised by Mr D Williams, a full-time employee of CSA and a Competent Person under JORC(2012).

AUSTRALIA U10, 100 Mill Point Road, South Perth WA 6051 | T +61 8 9429 8846 | F +61 8 9429 8800 ABN 48 083 274 024 | ASX SRN | E info@surefireresources.com.au www.surefireresources.com.au

3 May 2022

ASX Announcement ASX Codes: SRN and SRNOC

The Inferred Resources of the Victory Bore – Unaly Hill Deposits are:

Tenement	Million Tonnes	V2O5 (%)	V2O5 (tonnes)	Fe (%)	TiO2 (%)	P (%)	SiO2 (%)
Victory Bore UnalyHill	151 86.2	0.44 0.42	664,400 365,330	25.0 24.8	6.73 4.5	0.013	28.6 28.6
TOTAL	237	0.433	1,029,730	24.93	5.92		28.6

These resources represent 2.263 million pounds of contained vanadium pentoxide .

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Figure 12 Victory Bore - Unaly Hill Vanadium Project location

The company confirms that it is not aware of any new information or data that materially affects the information included in the original market announcement and, in the case of estimates of Mineral Resources that all material assumptions and technical parameters underpinning the estimates in the relevant market announcement continue to apply and have not materially changed. The company confirms that the form and context in which the Competent Person’s findings are presented have not been materially modified from the original market announcement

At this time, the Company is focusing on the larger, higher-grade Victory Bore deposit pending further work on the Unaly Hill deposit. The homogeneous nature of the ore, due to it being a lithotype rather than a restricted mineralising event, means there is a very high expectation that the vast majority of this resource will be extractable, pending pit optimisation studies.

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3 May 2022

ASX Announcement ASX Codes: SRN and SRNOC

Scoping Study Considerations

The Scoping Study was based on metallurgical work undertaken by Promet Engineers, Mineral Engineering Technical Services Pty Ltd (Mets), and the CSIRO. This work indicated an industry standard beneficiation flowsheet for vanadium recovery by magnetic separation followed by a sodium salt roast and water leach. The process design takes into account processing ores by similar processes by other producers in the region. The test work is therefore based on a recognised process. Additional test work will be undertaken during the Prefeasibility Study stage to confirm their conclusions.

The study examined using conventional mining, beneficiation, and transport processes and concentrated on the beneficiation and transport components. Pit optimisation in support of open cut mining is planned.

Location

Victory Bore Project is located in the Mid-West iron ore province 50 km South of Sandstone, East Murchison Mineral Field, Western Australia. The project is favourably located within the emerging Mid-West mining district where the proposed Oakajee Port will service the region’s export facility needs.

Mining Method

Conventional open pit methods using standard drill and blast and shovel and truck will be used to deliver vanadomagnetite ore to the beneficiation plant and waste to waste dumps. Nominal contract mining costs were used.

Transport and Port

While not part of the beneficiation study, it is expected that the final high value product will be either trucked or conveyed by a slurry pipeline to port facilities.

Power and Water

Power is to be provided by an on-site gas turbine generator. The Mid-west gas pipeline runs from Geraldton to Windimurra terminating approximately 30km west of the Victory Bore Vanadium Project. Water requirements have been estimated and costs allowances made.

Tenure

The Victory Bore Vanadium Project is contained within E57/1036 owned 100% by Acacia Mining Pty Ltd, a 100% subsidiary of Surefire. It has an expiry date of 1 July 2026 and is in good standing. Standard environmental and Native Title approvals will be required during the process of converting this tenement to a Mining Lease and gaining mining permits.

Capital and Operating Cost Estimates

A Net Present Value-based financial model has not been developed yet; this study update was done to provide Surefire’s Board with an OPEX estimate to give the Board confidence to advance the project to a Prefeasibility Study.

While the regulatory guidelines discourages the release of mining and production rates and financial forecasts without more highly developed studies, the Scoping Study has underpinned the Board’s confidence that this project can deliver a competitive high grade vanadium product at an economically rewarding return on investment.

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3 May 2022

ASX Announcement ASX Codes: SRN and SRNOC

Beneficiation Flow Sheet

Ore will be beneficiated using standard crushing, two pass grinding, and magnetic separation using dry and wet low intensity magnetic separators ( Figure 2 ).

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Figure 2 Notional flowsheet to be adopted at the Victory Bore Vanadium Project. The final flowsheet may differ in detail from this proposal. Note also that the Scoping Study includes processing vanadium pentoxide flake to the higher valued ferrovanadium via an electric arc furnace.

A rougher magnetic separator will use 32mm feed, with magnetic material passing to a secondary AG mill and fine magnetic separation circuit using a grind size of P80 of 75µm. Vanadium weight recovery is expected to be 94% pre-final leach recovery and 89.2% to a vanadium pentoxide product. The original Scoping Study envisaged further processing of the vanadium pentoxide to ferrovanadium with the inclusion of an electric arc furnace. The economic benefit of doing this, and the added benefits of progressing to a pig iron product from the iron byproduct, will be assessed at the PFS level.

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3 May 2022

ASX Announcement ASX Codes: SRN and SRNOC

Timeframe for Development

No timeframe for development has been set at this stage. The Company will be undertaking additional resource definition. The Company has sufficient finances to undertake this work.

The Market

Surefire notes the following in relation to the current vanadium market:

• The vanadium price continues to experience steady increases;

• High-capacity battery storage is favoring vanadium-based Redox Flow batteries;

• Acceleration of space-based exploration and research together with increased usage in high velocity transport applications is driving vanadium consumption; and

• The outbreak of hostilities in Eastern Europe and the ramifications for the global defense industry has witnessed an uptick in high performance vanadium steel alloy use.

• In parallel, the large traditional sources of China and Russia are exiting the supply side market and, in the case of China, have become net vanadium importers ( Figure 3 ).

Project can deliver Product Optionality

The Victory Bore resource of 2.263 million pounds of contained vanadium pentoxide is a magnetite-hosted ore. Beneficiation test work has demonstrated that three products can be extracted from the ore (prevailing current prices sourced from metal.com ):

• vanadium pentoxide flake (V2O5) – currently US$11.10/lb or A$15.41 at FOREX US$0.72;

• ferrovanadium (FeV) by extending the process through to an arc furnace stage – currently US$45.25/kg or A$62.84 at FOREX US$0.72; and

• magnetite concentrate that is ideal for production of “green iron” pig iron – currently US$660.35/t or A$917.15 at FOREX US$0.72.

Surefire will assess the optimal production route to maximise the project’s profitability and shareholder returns.

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3 May 2022

ASX Announcement ASX Codes: SRN and SRNOC

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Figure 3 China has become a net importer of vanadium and is set to continue being so

Surefire Managing Director Vladimir Nikolaenko commented :

Surefire’s Managing Director, Vladimir Nikolaenko, commented: “ Surefire is well positioned to have the Victory Bore Vanadium Project enter the market at a critical time in the vanadium industry. Excellent metallurgical properties and straight forward mining and beneficiation will put the Project at the low end of the cost curve. ”

This announcement is authorised for release by Vladimir Nikolaenko.

For further information, contact:

Vladimir Nikolaenko

Managing Director

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3 May 2022

ASX Announcement ASX Codes: SRN and SRNOC

Cautionary Statement

The Scoping Study referred to in this announcement is a preliminary technical and economic study of the potential viability of open cut mining and beneficiation of the Perenjori Iron Project magnetite deposit. It was undertaken to inform the Company prior to a decision to proceed with additional resource definition work and more advanced and definitive studies. It is based on low level technical and economic assessments that are not sufficient to support the estimation of Ore Reserves. Further exploration and evaluation work and appropriate studies are required before Surefire will be in the position to estimate any Ore Reserves or to provide any assurance of an economic development case.

The study is based on the material assumptions outlined below. While Surefire considers all of the material assumptions to be based on reasonable grounds, there is no certainty that they will prove to be correct or that the range of outcomes indicated by the study will be achieved.

To achieve the outcomes indicated in this study, additional funding will be required. Investors should note that there is no certainty that Surefire will be able to raise funding when needed. It is also likely that such funding may only be available on terms that may be dilutive or otherwise affect the value of Surefire’s existing shares.

It is possible that Surefire could pursue other value realisation strategies such as sale, partial sale, or joint venture of the Project. If it does, this could materially reduce Surefire’s proportionate ownership in the Project.

Surefire has concluded that, based on the results of the Scoping Study and strong market fundamentals, there is sufficient degree of confidence to progress the project. However, given the uncertainties involved, investors should not make any investment decisions based solely on the results of the Scoping Study.

The Scoping Study uses a portion of Inferred Mineral Resources. There is a low level of geological confidence associated with Inferred Mineral Resources and there is no certainty that further exploration work will result in the determination of Indicated Mineral Resources or Reserves.

Competent Person Statement

The information in this report that relates to Mineral Resource is based on information compiled by Mr Marcus Flis who is a Fellow of the Australian Institute of Geoscientists. Mr Flis is an independent Principal Consultant at Rountree Pty Ltd. Mr Flis has sufficient experience that is relevant to the style of mineralisation, type of deposit under consideration and to the activity that they are 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’ and consents to the inclusion in this report of the matters based on their information in the form and context in which they appear.

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