SUREFIRE RESOURCES NL — Interim / Quarterly Report 2021

Jan 30, 2022

Quarterly Report

for the three months ended 31 December 2021

31st January 2022 ASX Announcement

DECEMBER 2021 QUARTERLY ACTIVITIES REPORT __________________________________________________________________________________

__________________________________________________________________________________

Surefire Resources NL ("Surefire", "the Company") is pleased to report on its exploration activities at the Company's 100% owned properties for the Quarter ending 31 December 2021.

During the Quarter, Surefire Resources NL advanced the Yidby Gold Project with a drilling campaign, the Perenjori Iron Project, with planning to expand the magnetite resource, interpretative work on the newly acquired Kadji high-definition aeromagnetic survey data, and planning for follow-up of the high priority EM targets at Kooline Prospect.

YIDBY GOLD PROJECT

• Drilling continued to return wide gold intercepts:
  • o YBRC045 52m @ 1.40g/t Au from 65m incl 19m @ 2.93g/t Au from 65m incl 1m @ 39.1g/t Au from 78m
  • o YBRC041 13m @ 1.33g/t Au from 234m, incl 2m @ 3.88g/t Au from 234m
  • o YBRC046 19m @ 0.98g/t Au from 23m, incl 1m 10.63g/t Au from 36m
• Completed 22 RC holes for 2,298m
• Drilling MMI geochemistry anomalies intersects Gold beneath barron overburden
• Thick intercepts of quartz and sulphides identified in RC chips
• Interpretation of MMI surface geochemistry completed on the Money Prospect
• Significant zones of gold and copper anomalism identified
• Flora and Fauna survey completed on Yidby and Money Prospects
• 260 line km ground magnetics completed

PERENJORI IRON ORE PROJECT

Assessment of an exploration target has advanced

PERENJORI GOLD – BASE METALS PROJECT

• Exploration licence E70/5572 granted
• Interpretation of the Kadji high resolution aeromagnetic survey progressed

KOOLINE LEAD SILVER COPPER-GOLD PROJECT

• Three high priority bedrock conductors have been identified from conductivitydepth inversion modelling of VTEM airborne electromagnetic data
• Conductors are linked to historic mines that extracted high grade lead-silver and have not been previously drilled
• Kooline North high resolution aeromagnetic/radiometric survey completed

Surefire Resources NL project locations

YIDBY GOLD PROJECT (E59/2390, E59/2426, E59/2444)

The Yidby Gold Project is well located close to the Great Northern Highway, 40km southwest of Paynes Find in the Mid-West of Western Australia, and in the southern portion of the Yalgoo-Singleton Greenstone Belt, part of the mid to late-Archaean Youanmi Terrane.

The Project comprises three granted exploration licences with a total area of 114 km² (Figure 1) and includes three prospects where significant gold mineralisation has been identified. They are associated with historical workings at Delaney Well and Cashens Find, and a Surefire's new discovery at Yidby Road Gold Prospect.

The Project is surrounded by several significant gold deposits, including the +1.1 million-ounce Minjar Gold Project approximately 65km to the northwest, the 1 million-ounce Kirkalocka Gold Project approximately 70km to the northeast, the 2.1Moz Mount Gibson Gold Project 30km to the south (28 July 2021 ASX: CMM) and the 0.54Moz Rothsay Gold Project 30km to the west (Egan Street Resources, 12 February 2019) (Figure 1).

Figure 1 Yidby Gold Project location on regional geology with major gold projects & mineral occurrences

Recent drilling intersects wide gold mineralisation the Yidby Gold Project during this Quarter

Twenty-two (22) Reverse Circulation (RC) holes for 2,298m have been completed at the Yidby Gold Project to:

• 1. follow up of discovery drilling at the Yidby Road gold deposit,
• 1. initial testing of a number of Mobile Metal Ions (MMI) gold anomalies, and
• 1. test gold mineralisation continuity of strike and depth extensions defined from previous drilling.

Significant gold intercepts include (Table 1):

		Table 1 Significant Intersections and RC drilling collar locations
--	--	--------------------------------------------------------------------	--	--

Hole ID	From(m)	To(m)	Interval(m)	Au(g/t)	HoleType	EastingMGA	NorthingMGA	RL	Dip	Azimuth(mag)	Holedepth(m)
YBRC 041	234	247	13	1.28	RC	525813	6751881	298.2	-60	270	257
YBRC 043	105	106	1	1.94	RC	525825	6751864	298.2	-60	270	274
YBRC 045	32	84	52	1.4	RC	525891	6751726	297.1	-60	270	100
including	49	55	6	1.76
including	65	84	19	2.93
including	78	79	1	39.1
YBRC 046	24	42	19	0.98	RC	525771	6751773	297.9	-60	270	90
including	36	37	1	10.63					-60

RC drill hole YBRC045 confirms that an exceptionally broad near-flat lying gold mineralised zone exists in the south of the discovery area. This gold mineralisation is open both down dip and up dip (Figure 2).

Figure 2 Drilling Cross Section 6751725mN. YBRC045 shows excellent continuity with previous drilling intercepted gold grades.

Drilling of MMI gold anomalies

A Mobile Metal Ion (MMI) geochemistry survey was completed in the discovery area in early 2021 (ASX announcement, 22 February 2021).

Seventeen RC holes for 1,271m were drilled to test a number of MMI gold anomalies. Initial results show that the holes have successfully intersected shallow and wide down hole zones of gold mineralisation.

Drillhole YBRC033 has returned a shallow wide intercept of 15m @ 0.38g/t gold (Au) from 15m beneath an MMI anomaly (Figure 3). The overburden is barren transported cover. This zone continues at least 320m to the northwest along a prominent shear where holes YBRC018 (3m @ 0.79g/t Au from 89m) and YBRC024 (9m @ 0.51g/t Au from 52m) show it continues to be auriferous (Figure 4).

With the confirmation that the MMI method works in this area, other MMI gold anomalies have increased priority for follow-up. In particular, MMI anomalies associated with the location of the interpreted antiformal axis and disruptive north-west trending shear zones have become high priority drill targets (Figure 6).

Figure 3 Testing MMI anomalies: Drilling Cross Section 6751740mN.

Figure 4 Testing MMI anomalies: Drilling Cross Section 6751950mN.

High resolution ground magnetic survey aids in developing gold model

The Yidby gold mineralisation is a blind discovery; the area is covered by up to 20 metres of barren transported overburden that overlies and masks the gold mineralisation.

During December 2021 Surefire completed a high-resolution ground magnetic survey over the discovery area. The survey of 260 line km, undertaken at a line spacing of 10m with a continuous recording magnetometer, was designed to assist in the interpretation of the gold intercepts obtained from recent and past RC drilling.

Interpretation of the ground magnetic data (Figure 6), concludes that:

• gold is hosted in ultramafics and closely associated with the axial plane of a prominent north-west striking and plunging antiform suggesting that saddle reef style gold also exists on this prospect,
• major north-west and east-west trending shear zones dissect the host rocks, and
• secondary north-south and north-north-west trending faults may have acted to remobilise gold to form high grade gold accumulations.

Figure 5 Interpretation of ground magnetic survey together with hole locations from recent drilling. Holes with no gold intercepts are awaiting assays.

PERENJORI GOLD, BASE-METALS & IRON ORE

The Perenjori Gold, Base Metals and Iron Ore Project includes Exploration Licences (E70/5311, E70/5573, E70/5575, E59/2445, E59/2446 and E70/5572), a combined area of 642km², located in Midwest Region of WA (Figure 6).

The tenements are located over the Koolanooka Greenstone Belt, within a typical granite-greenstone terrain of the southern Murchison Geological Province of the Archaean Yilgarn Craton. The area is an under-explored and highly prospective, with numerous gold, base metals and iron-ore deposits in the region, including the Deflector Gold Mine 30km to the north, the Karara Iron Ore deposit 30km to the east and the Golden Grove base metals deposits 50km to the northeast (Figure 6).

Figure 6 Perenjori and Yidby Projects tenements location on geology and aeromagnetics.

Kadji Gold-Base Metals Project

The Kadji Project (E59/2446 and E70/5575) covers over a 25km strike of an untested interpreted extension of the Koolanooka Greenstone Belt (Figure 6). The interpreted greenstone is bounded by major northwest trending faults and truncated and dislocated to the west at the northern end of the Kadji tenements. These major structures are analogous to the Yidby Road structural corridor, and are highly prospective for gold and base metals. A large but poorly defined gravity high is associated with the greenstone corridor – possibly indicating a large mafic/ultramafic intrusive complex.

Interpretation of the recently completed high resolution aeromagnetic survey (Figure 7) was advanced during the Quarter. In particular, geological models of mineralisation in the district are being applied to develop targets for follow-up.

Figure 7 Image of the Total Magnetic Intensity of the recently completed aeromagnetic survey over the Kadji Project.

Perenjori Iron Ore Project

Following the successful completion of the Conceptual Study (ASX announcement 22 June 2021) an expanded study has been started on defining an exploration target. This is to add to the existing Inferred Mineral Resource is 191.7Mt @ 36.6% Fe, JORC(2004).

The Company intends to formulate a drilling plan on the basis of any exploration target defined, the aims for which will be to expand the Mineral Resource, elevate its resource category, and ensure the resource is JORC(2012) compliant.

Parallel with this, the Company is exploring options for infrastructure solutions, chiefly in the areas of transport, power, and water. In particular, a multi-user infrastructure option is being considered that will substantially reduce the capital required to develop this resource.

Perenjori Gold Potential

E70/5572 was granted during the Quarter (ASX announcement 30 Dec 2021). This tenement

• Is over an under-explored Subsurface NW trending Greenstone Sequence
• Is covered by soils but host structural targets of long strike length
• Is covered by historical work completed by Sons of Gwalia and BHP
• Has up to 1g/t anomalous gold in BLEG soil samples
• Is large at 160km2
• Is 100% owned by Surefire Resources NL

E70/5572 contains a previously unrecognised portion of the Koolanooka Greenstone Belt. Lying within typical granite-greenstone terrains of the southern Murchison Geological Province of the Archaean Yilgarn Craton, the greenstones consist of metamorphosed and deformed volcanic basalts (mafic schist), felsic volcanics. Additional and related volcanogenic sedimentary rocks (quartz-feldsparmuscovite schist), anticlinal dolerite sill add to the local structural complexity.

A review of previous exploration data, focused on E70/5311 and E70/5572 has highlighted soil sampling geochemistry that has been interpreted to highlight key trends in both gold and arsenic data (Figure 8).

Figure 8 Interpreted bedrock geology (E70/5311) (modified from DMIRS 1:500,000 interpreted bedrock

KOOLINE HIGH GRADE LEAD-SILVER & COPPER-GOLD (E08/2373 & E08/2956)

The Kooline lead-silver and copper-gold Project includes two exploration licences (E08/2373 and E08/2956) that cover a total area of 386 km², located in the Ashburton Province of Western Australia, 55 kilometres south of the 1 million-ounce Paulsen's Gold Mine (Figure 9).

The tenements are highly prospective for extensions to the high-grade Kooline silver-lead lodes at the Kooline Mineral field, historically Western Australia's largest producer of lead.

In addition, through re-processing and interpretation of geophysical data, the Company has identified potential for large intrusive related silver-lead to copper-gold systems ("IMCG") at the Kooline Project.

Figure 9 Kooline Project Tenements and Major Gold and Base Metal Deposit

Modelling of airborne EM data identifies high quality conductors

During the Quarter, the existing VTEM airborne EM survey over Kooline was modelled by inversion (ASX announcement 18 October 2021).

Three high priority conductors and multiple lower priority conductors were identified, none of which have been previously drilled. These conductors are associated with an interpreted intrusive body, a heat and potential mineralised magmatic fluid source for an intrusive related "intracratonic magmatic copper-gold" or IMCG system (ASX release 14 December 2018).

Lower priority VTEM anomalies are associated with historically mined high-grade Pb-Ag lodes and are interpreted to represent the distal (cooler) zone of this IMCG mineralised system. Workings closer to the interpreted intrusive tend to show increasing copper (Cu) content possibly indicating that the conductors may be associated with Cu-Au sulphides. A significant conductor has been modelled under the historic Mt Conspicuous Mine (Figure 10

Ground EM surveys are planned over the high priority targets to accurately position collars for drilling.

Figure 10 Mt Conspicuous EM target, one of three high priority targets identified at the Kooline Lead-Silver Field. Depth scale is a x10 exaggeration of horizontal scale. Red represents high conductivity

Kooline North aeromagnetic survey completed

Kooline North is a key target area for high-grade orogenic gold deposits associated with deep, crustal scale structures, similar to the 1Moz Paulsen's Deposit located immediately to the north of the Kooline tenements (Figure 11). Evidence of high-grade veining projecting into covered, untested, areas represent a high priority target.

Following interpretation of the wide-spaced aeromagnetic data over Kooline North, a high-resolution survey was commissioned, flown, and preliminary data delivered during the Quarter. This was a 50m line spaced survey to replace the currently available 400m line spaced survey. Radiometric data was collected.

Figure 11 Regional 1st Vertical Derivative (1VD) magnetics with interpreted structures and prospect locations.

CORPORATE ACTIVITIES

ASX Additional Information – Guidance Note 23 Disclosures

Surefire provides the following information pursuant to ASX Listing Rule requirements:

• 1. ASX Listing Rule 5.3.1 Exploration and Evaluation Expenditure during the quarter was $513k. Full details of exploration activities during the quarter are set out in this report;
• 1. ASX Listing Rule 5.3.2 There was no substantive mining production and development activities during the quarter;
• 1. ASX Listing Rule 5.3.3 Details of mining tenements acquired or disposed of during the quarter, and held at the end of the quarter are set out in this report; and
• 1. ASX Listing Rule 5.3.5 Paymentsto related parties of the Company and their associates during the quarter: $102K. The Company advises that this relates to remuneration of Directors for managing director consultancy and directorial services, all paid to director related entities.

ASX RELEASE AUTHORISED BY*:*

Vladimir Nikolaenko Managing Director

QUALIFYING STATEMENTS

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.

Forward Looking Statements:

This announcement contains 'forward-looking information' that is based on the Company's expectations, estimates and projections as of the date on which the statements were made. This forward-looking information includes, among other things, statements with respect to the Company's business strategy, plans, development, objectives, performance, outlook, growth, cash flow, projections, targets and expectations, mineral reserves and resources, results of exploration and related expenses. Generally, this forward-looking information can be identified by the use of forward-looking terminology such as 'outlook', 'anticipate', 'project', 'target', 'potential', 'likely', 'believe', 'estimate', 'expect', 'intend', 'may', 'would', 'could', 'should', 'scheduled', 'will', 'plan', 'forecast', 'evolve' and similar expressions. Persons reading this announcement are cautioned that such statements are only predictions, and that the Company's actual future results or performance may be materially different. Forward-looking information is subject to known and unknown risks, uncertainties and other factors that may cause the Company's actual results, level of activity, performance or achievements to be materially different from those expressed or implied by such forward-looking information.

Project	Lease	Name	Locality	Lease Status
Yidby Gold Project	E59/2426	Nynghan	WA	Granted
Yidby Gold Project	E59/2390	Yalgoo	WA	Granted
Yidby Gold Project	E59/2444	Yidby Hill	WA	Granted
NORTH PERENJORI
Perenjori	E70/5575	Kadji	WA	Granted
Perenjori	E59/2446	Perenjori 2	WA	Granted
Perenjori	E70/5573	Pinjarrah Hill	WA	Granted
SOUTH PERENJORI
Perenjori	E70/5311	Southwest	WA	Granted
Perenjori	E59/2445	Perenjori 1	WA	Granted
Perenjori	E70/5572	Fitzroy	WA	Granted
Unaly Hill	E57/1068	Unaly Hill	WA	Granted
Unaly Hill	E57/1112	Unaly Hill 2	WA	Granted
Victory Bore	E57/1139	Victory Bore	WA	Granted
Victory Bore	E57/1036	Atley	WA	Granted
Kooline	E08/2373	Kooline-Wyloo	WA	Granted
Kooline	E08/2956	Kooline	WA	Granted

APPENDIX 1 TENEMENT HOLDINGS AT 31 DECEMBER 2021

Appendix 5B

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

48 083 274 024	31 December 2021
ABN	Quarter ended ("current quarter")
SUREFIRE RESOURCES NL
Name of entity

	Consolidated statement of cash flows	Current quarter$A'000	Year to date(6months)$A'000
1.	Cash flows from operating activities
1.1	Receipts from customers	-	-
1.2	Payments for
	(a)exploration & evaluation	(513)	(671)
	(b)development	-	-
	(c)production	-	-
	(d)staff costs	(102)	(252)
	(e)administration and corporate costs	(157)	(275)
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	Other (provide details if material)	-	-
1.9	Net cash from / (used in) operatingactivities	(771)	(1,198)

2.	Cash flows from investing activities
2.1	Payments to acquire or for:
	(a)entities	-	-
	(b)tenements	-	(30)
	(c)property, plant and equipment	(2)	(40)
	(d)exploration & evaluation	-	-
	(e)investments	-	-
	(f)other non-current assets	-	-

	Consolidated statement of cash flows	Current quarter$A'000	Year to date(6months)$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) investingactivities	(2)	(70)

3.	Cash flows from financing activities
3.1	Proceeds from issues of equity securities(excluding convertible debt securities)	-	-
3.2	Proceeds from issue of convertible debtsecurities	-	-
3.3	Proceeds from exercise of options	-	-
3.4	Transaction costs related to issues of equitysecurities or convertible debt securities	-	-
3.5	Proceeds from borrowings	-	-
3.6	Repayment of borrowings	-	-
3.7	Transaction costs related to loans andborrowings	-	-
3.8	Dividends paid	-	-
3.9	Other (provide details if material)	-	-
3.10	Net cash from / (used in) financingactivities	-	-

4.	Net increase / (decrease) in cash andcash equivalentsfor the period
4.1	Cash and cash equivalents at beginning ofperiod	2,860	3,355
4.2	Net cash from / (used in) operatingactivities (item 1.9 above)	(771)	(1,198)
4.3	Net cash from / (used in) investing activities(item 2.6 above)	(2)	(70)
4.4	Net cash from / (used in) financing activities(item 3.10 above)	-	-

Appendix 5B Mining exploration entity or oil and gas exploration entity quarterly cash flow report

	Consolidated statement of cash flows	Current quarter$A'000	Year to date(6months)$A'000
4.5	Effect of movement in exchange rates oncash held	-	-
4.6	Cash and cash equivalents at end ofperiod	2,087	2,087

5.	Reconciliation of cash and cashequivalentsat the end of the quarter (as shown in theconsolidated statement of cash flows) to therelated items in the accounts	Current quarter$A'000	Previous quarter$A'000
5.1	Bank balances	131	63
5.2	Call deposits	1,938	2,779
5.3	Bank overdrafts	-	-
5.4	Other (provide details) Office rental bond	18	18
5.5	Cash and cash equivalents at end ofquarter (should equal item 4.6 above)	2,087	2,860

6.	Payments to related partiesof the entityand theirassociates	Current quarter$A'000
6.1	Aggregate amount of payments to related parties and theirassociates included in item 1	102
6.2	Aggregate amount of payments to related parties and theirassociates included in item 2	-
	Note: if any amounts are shown in items 6.1 or 6.2, your quarterly activity report must include a description of, and an

explanation for, such payments.

7.	FinancingfacilitiesNote: the term "facility' includes all forms of financingarrangements available to the entity.Add notes as necessary for an understanding of thesources of finance available to the entity.	Total facilityamountat quarterend$A'000	Amount drawnatquarter end$A'000
7.1	Loan facilities	-	-
7.2	Credit standby arrangements	-	-
7.3	Other (please specify)	-	-
7.4	Total financing facilities	-	-
7.5	Unused financing facilities available at quarter end		-
7.6	Include in the box below a description of each facility above, including the lender, interestrate, maturity date and whether it is secured or unsecured. If any additional financingfacilities have been entered into or are proposed to be entered into after quarter end,include a note providing details of those facilities as well.

Appendix 5B Mining exploration entity or oil and gas exploration entity quarterly cash flow report

8.	Estimated cash available for future operating activities	$A'000
8.1	Net cash from / (used in) operating activities (item 1.9)	(771)
8.2	(Payments for exploration & evaluation classified as investingactivities) (item 2.1(d))	-
8.3	Total relevant outgoings (item 8.1 + item 8.2)	(771)
8.4	Cash and cash equivalents at quarter end (item 4.6)2,087
8.5	Unused finance facilities available at quarter end (item 7.5)-
8.6	Total available funding (item 8.4 + item 8.5)	2,087
8.7	Estimated quarters of funding available (item 8.6 divided byitem 8.3)	2.71
	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.
8.8	If item 8.7 is less than 2 quarters, please provide answers to the following questions:
	8.8.1Does the entity expect that it will continue to have the current level of net operatingcash flows for the time being and, if not, why not?
	Answer: N/A
	8.8.2Has the entity taken any steps, or does it propose to take any steps, to raise furthercash to fund its operations and, if so, what are those steps and how likely does itbelieve that they will be successful?
	Answer: N/A
	8.8.3Does the entity expect to be able to continue its operations and to meet its businessobjectives and, if so, on what basis?
	Answer: N/A
	Note: where item 8.7 is less than 2 quarters, all of questions 8.8.1, 8.8.2 and 8.8.3 above must be answered.

Compliance statement

• 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: 31 January 2022

Authorised by: Rudolf Tieleman – Company Secretary (Name of body or officer authorising release – see note 4)

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.
• 1. 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.
• 1. 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.
• 1. 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".
• 1. 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.