TALONX RESOURCES LIMITED — Interim / Quarterly Report 2021

Jul 27, 2021

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QUARTERLY REPORT TO 30 JUNE 2021

KIHABE-NXUU POLYMETALLIC Zn/Pb/Ag/Cu/V/Ge PROJECT BOTSWANA

Highlights

• Preparation for the proposed 2021 drilling programme to be conducted at the Nxuu Deposit, with discussions with drilling contractors underway.

• Mineralogical test work confirmed that the vanadium oxide mineral Descloizite is the host mineral of Vanadium in the Kihabe Deposit oxide zone. In Descloizite, Vanadium Pentoxide is 1.785 times the volume of Vanadium.

• Generation of data showing intersections of Vanadium Pentoxide in the Kihabe Deposit oxide zone, associated with Zinc and Lead, previously considered as the dominant minerals.

• Generation of data showing intersections of Copper in the Kihabe Deposit oxide and sulphide zones, associated with Zinc and Lead. Copper has not previously been included in any Kihabe Deposit JORC resource estimates.

• Generation of data showing intersections of Silver in the Kihabe Deposit oxide and sulphide zones, associated with Zinc and Lead, including high grade Silver zones.

Proposed Drilling to be Conducted at the Nxuu Deposit

The Company intends to develop the low-risk, shallow, basin-shaped and totally oxidised Nxuu Deposit first.

To date 33 vertical holes have been drilled into the Nxuu Deposit mineralised domain which total 1,304 metres to the base of mineralisation, being barren dolostone basement. This amounts to an average depth per hole of just under 40m. These drill holes have enabled the Company to determine the area of the mineralised domain of the Nxuu Deposit, as well as estimate the depths of 58 proposed in-fill drill holes.

The 58 proposed in-fill drill holes are estimated to require 2,600m of vertical HQ diamond core drilling, averaging 45m per hole. Once complete, this drilling will enable the Company to quote an Indicated/Measured Resource compliant with the 2012 JORC Code.

A further 400m of vertical HQ diamond core and PQ diamond core drilling will be conducted to twin some of the previously drilled holes that were not assayed for Vanadium or Germanium, as well as obtain PQ core for metallurgical and comminution test work.

Negotiations are currently being conducted with potential drilling companies.

Mineralogical Test Work conducted on Vanadium in the Kihabe Deposit Oxide Zone

During the quarter, the Company received results from mineralogical test work conducted by ALS Laboratories and Naples University, which confirmed that the host mineral for Vanadium in the Kihabe Deposit oxide zone is the vanadium oxide Descloizite.

Previous mineralogical test work conducted on the totally oxidised Nxuu Deposit 7km to the east of the Kihabe Deposit, also confirmed that the host mineral of Vanadium was the oxide Descloizite in which Vanadium Pentoxide (V2O5) is 1.785 times the volume of Vanadium.

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Metallurgical Test Work to be Conducted on V2O5 from the Kihabe Deposit Oxide Zone

Whilst metallurgical recovery test work has yet to be conducted on V2O5 from the Kihabe Deposit oxide zone, previous metallurgical test work conducted on the oxide Descloizite from the totally oxidised Nxuu Deposit has shown that up to 80% of Vanadium Pentoxide can be recovered on site through gravity separation, followed by subjecting the tails to flotation and using a hydroximate acid for recovery.

Intersections of V2O5 in the Kihabe Deposit Oxide Zone associated with Zinc and Lead

Prior to the release to ASX on 27 April 2021, confirming that the host mineral for Vanadium in the Kihabe Deposit oxide zone is the oxide Descloizite, the Company only ever showed Vanadium grades associated with Zinc, Lead and Silver, with values for these three shown as a Zinc equivalent grade.

With the confirmation that the host mineral for Vanadium in the Kihabe Deposit oxide zone is Descloizite, the Company is now able to show the V2O5 grades associated with the separate Zinc, Lead, Silver and Copper grades.

Vanadium intersections have also been identified in the Kihabe Deposit sulphide zone but mineralogical test work has yet to be conducted to determine the host mineral.

Copper Intersections in the Kihabe Deposit Oxide and Sulphide Zones, alongside Zinc and Lead

With the recent increase in the Copper price, the Company felt it important to show the potential contribution Copper could make as an additional credit to the Kihabe Deposit.

Copper has never been included in any previous JORC resource estimates conducted on the Kihabe Deposit. Consequently, on 13 May 2021, the Company released to the ASX an announcement separately showing Copper intersections associated with any separate Zinc, Lead, Silver and Vanadium/Vanadium Pentoxide intersections.

Table 1 - Previously estimated potential Kihabe Deposit Copper Resource

Mineral Resource Statement – 16 March 2007

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Silver Intersections in the Kihabe Oxide and Sulphide Zones, alongside Zinc and Lead

With the recent increase in the Silver price, part of which could be as a result of the future demand for silver required for solar panels, the Company felt it important to separately show the contribution silver could make to the Kihabe Deposit.

In the past, Zinc, Lead and Silver intersections and grades were always shown as a combined Zinc equivalent grade. This did not allow for appreciation of the contribution each metal separately made to the Kihabe Deposit. Consequently, on 10 June and 24 June 2021, the Company released to the ASX announcements separately showing Silver intersections associated with any separate Zinc, Lead, Copper and Vanadium/Vanadium Pentoxide intersections.

Combination of Data from the Vanadium/Vanadium Pentoxide, Copper and the Silver Zones of the Kihabe Deposit

In the Kihabe Deposit, which has an overall mineralised strike length of 2.4km, there is a SW zone of 550m which contains Zinc, Lead and Silver in both the oxide and sulphide zones, with Vanadium Pentoxide in the oxide zone. There is also a NE zone of 900m which contains Zinc, Lead, Silver and Copper in both the oxide and sulphide zones, with Vanadium Pentoxide in the oxide zone.

The Company has now combined all the relevant drill holes involved to separately show mineralised intersections and grades for both the SW zone and the NE zone for all of Zinc, Lead, Silver, Copper and Vanadium Pentoxide, as follows:

• SW and NE Kihabe Deposit drill hole maps of the mineralised zones show the drill holes involved.

• SW and NE Kihabe Deposit associated Mineralisation Tables (Table 2 and Table 3) show the number of metres mineralised and the average grades of mineralisation for each drill hole section, for each of Zinc, Lead, Silver, Copper and Vanadium Pentoxide.

• For separate intersections and grades of Zinc, Lead, Silver, Copper and Vanadium Pentoxide mineralisation where present for each drill hole in the drill hole sections refer to Figures 3 to 55.

Table 2 – Kihabe Deposit SW Zone – Average Grades of Silver, Copper and Vanadium Pentoxide associated with average grades of Zinc and Lead

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Table 3 – Kihabe Deposit NE Zone – Average Grades of Silver, Copper and Vanadium Pentoxide associated with average grades of Zinc and Lead

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The above metals are currently trading at the following US $ prices:

Zinc	$2,950/t
Lead	$2,425/t
Silver	$ 25/oz
Copper	$9,550/t
V2O5	$ 21/kg

Inclusion of Data showing Germanium Intersections and Grades for the Kihabe Deposit

Up until December 2017, only six small intersections from both the Kihabe and Nxuu Deposits had been selected for assaying to test for the presence of Germanium. All these intersections returned consequential Germanium grades resulting in entire lengths of core drilled into the Kihabe and Nxuu Deposits in November/December 2017 being assayed for Germanium.

Of the seven holes drilled into the Kihabe Deposit in December 2017, six returned Germanium grades. These are shown in cross sections for KDD200, KDD201, KDD202, KDD203, KDD204 and KDD206 (Figures 25, 18, 15, 12, 7 and 20 respectively.)

Ge is currently trading at US $1,988/kg

Corporate

Capital Raising

During the quarter the Company raised $693,156 through the placement of 99,022,320 shares at 0.7 of 1 cent.

Board Changes

Since the end of the quarter, Mr Chris Campbell-Hicks, Metallurgist, retired from the Board of the Company and its wholly owned subsidiary Mount Burgess (Botswana) Proprietary Ltd.

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On 7 July 2021, Mr Robert Brougham, FAusIMM BSc, Mineral Processing/Process Control, Metallurgist, was appointed to the Board of the Company as a Non-Executive Director. Robert has vast international experience in polymetallic and base metal deposits. He has in-depth knowledge the Kihabe-Nxuu project, having been the principal metallurgist involved in all the previous mineralogical and metallurgical test work conducted by ProMet Engineering on the project.

In an effort to maintain project progress within Botswana during COVID-19 restrictions, in July 2021, Mr Jacob Thamage, Mining Engineer, Motswana national, was appointed to the Board of Mount Burgess (Botswana) Pty Ltd. Jacob was recently the Chief Mining Officer for the African Development Bank in Abidjan, Cote D’Ivoire. Previous to that, he was the Deputy Permanent Secretary, Ministry of Minerals, Energy and Water Resources, Botswana.

This involved:

• Being the coordinator of Botswana’s Diamond Hub in relocating DeBeers diamond sales functions from London to Gaborone, Botswana

• Establishing the Okavango Diamond Company and as founding Chairman recruiting the Executive Team

• Overseeing Botswana’s delegation in the Kimberley Process certification scheme from 2003 to 2016

• Organising the first Kimberley Process review commission to Israel in 2004, which set the standards for future Kimberley Process review missions

Jacob has an intimate knowledge of the Botswana mining industry, both in terms of the private and the public sector, including all levels of government authorities.

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FIGURE 1

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Figure 2 (a)
Figure 2
mi1nlng
mount burgass
KIHABE POL VMETALLIC PROJECT
BOTSWANA
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Zinc $.oil Anomaly
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Soi.I G;f:ochem Sampling Area
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Forward Looking Statement

This report contains forward looking statements in respect of the projects being reported on by the Company. Forward looking statements are based on beliefs, opinions, assessments and estimates based on facts and information available to management and/or professional consultants at the time they are formed or made and are, in the opinion of management and/or consultants, applied as reasonably and responsibly as possible as at the time that they are applied.

Any statements in respect of Ore Reserves, Mineral Resources and zones of mineralisation may also be deemed to be forward looking statements in that they contain estimates that the Company believes have been based on reasonable assumptions with respect to the mineralisation that has been found thus far. Exploration targets are conceptual in nature and are formed from projection of the known resource dimensions along strike. The quantity and grade of an exploration target is insufficient to define a Mineral Resource. Forward looking statements are not statements of historical fact, they are based on reasonable projections and calculations, the ultimate results or outcomes of which may differ materially from those described or incorporated in the forward-looking statements. Such differences or changes in circumstances to those described or incorporated in the forward-looking statements may arise as a consequence of the variety of risks, uncertainties and other factors relative to the exploration and mining industry and the particular properties in which the Company has an interest.

Such risks, uncertainties and other factors could include but would not necessarily be limited to fluctuations in metals and minerals prices, fluctuations in rates of exchange, changes in government policy and political instability in the countries in which the Company operates.

Other important Information

Purpose of document : This document has been prepared by Mount Burgess Mining NL (MTB). It is intended only for the purpose of providing information on MTB, its project and its proposed operations. This document is neither of an investment advice, a prospectus nor a product disclosure statement. It does not represent an investment disclosure document. It does not purport to contain all the information that a prospective investor may require to make an evaluated investment decision. MTB does not purport to give financial or investment advice.

Professional advice: Recipients of this document should consider seeking appropriate professional advice in reviewing this document and should review any other information relative to MTB in the event of considering any investment decision.

Forward looking statements : This document contains forward looking statements which should be reviewed and considered as part of the overall disclosure relative to this report.

Disclaimer: Neither MTB nor any of its officers, employees or advisors make any warranty (express or implied) as to the accuracy, reliability and completeness of the information contained in this document. Nothing in this document can be relied upon as a promise, representation or warranty.

Proprietary information : This document and the information contained therein is proprietary to MTB.

Competent Persons’ Statement

The information that relates to the March 2007 Kihabe Copper Inferred Mineral Resource was compiled by John Haywood, BSc (Hons), FAusIMM. Mr Haywood is an independent qualified person and has sufficient experience relevant to the style of mineralisation under consideration and to the activity to which he has undertaken to qualify as a Competent Person as defined in the 2004 Edition of the “Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves”. Mr Haywood consents to the inclusion in this report of the matters based on the information in the form and context in which it appears.

The information in this report that relates to drilling results at the Kihabe Deposit fairly represents information and supporting documentation approved for release by Giles Rodney Dale FRMIT who is a Fellow of the Australasian Institute of Mining & Metallurgy. Mr Dale is engaged as an independent Geological Consultant to the Company. Mr Dale 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 Mineral Resources and Ore Reserves (the JORC Code)’. Mr Dale consents to the inclusion in this report of the drilling results and the supporting information in the form and context as it appears.

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The information in this report that relates to metallurgical test work results conducted on samples from the Kihabe Deposit fairly represents information and supporting documentation approved for release by Mr R Brougham (FAusIMM). The information contained within the Kihabe Metals Recovery Statement, was reviewed by Mr Brougham when consulting to ProMet Engineers. Mr Brougham is an independent qualified person and has sufficient experience relevant to the process recovery under consideration and to the laboratory activity to which he has undertaken to qualify as a Competent Person as defined in the 2012 Edition ‘Australasian Code for Reporting of Mineral Resources and Ore Reserves (the JORC Code)’ of Mr Brougham consents to the inclusion of the stated recoveries in the report of the matters based on the information in the form and context in which it appears.

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The following extract from the JORC Code 2012 Table 1 is provided for compliance with the Code requirements for the reporting of drilling results.

Section 1 Sampling Techniques and Data (Criteria in this section apply to all succeeding sections).

Criteria	JORC code explanation	Commentary
Sampling techniques	Nature and quality of sampling (eg cut channels, random chips, or specific 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 and 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 (eg ‘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 (eg submarine nodules) may warrant disclosure of detailed information.	Mount Burgess Mining Diamond Core Holes HQ Diamond Core was marked and collected in sample trays, visually logged and cut in half. Samples were collected as nominal 1m intervals but based on visible geology with minimum samples of 0.3m and maximum samples of 1.3m. Half of each core was retained on site in core trays and the other half was double bagged and sent to Intertek Genalysis Randburg, South Africa where they were crushed. A portion of each intersection sample was then pulverised to p80 75um and sent to Intertek Genalysis for assaying via ICPMS/OES for Ag/Co/Cu/ Pb/Zn. Mount Burgess Mining Reverse Circulation Holes Individual meters of RC drill chips were bagged from the cyclone. These were then riffle split for storage in smaller bags, with selected drill chips being stored in drill chip trays. A trowel was used to select drill chip samples from sample bags to be packaged and sent to Intertek Genalysis, Randburg, South Africa where they were crushed. A portion of each intersection’s sample was then pulverised to P80 75um and sent to Intertek Genalysis, Maddington, WA, for assaying via ICP/OES for Ag/Co/Cu/Pb/Zn. Mount Burgess Mining Diamond Core Samples submitted for Metallurgical Test Work The remainder of the crushed samples were then sent from Intertek Genalysis Randburg to Intertek Genalysis Maddington, Western Australia where they were then collected by the Company for storage. Samples from various intersections from drill holes were selected bythe Companyfor submission for metallurgical test work.
	Drill type (eg core, reverse circulation, open-hole hammer, rotary air blast, auger, Bangka, sonic, etc) and details (eg core diameter, triple or standard tube, depth of diamond tails, face-sampling bit or other type, whether core is oriented and if so, by what method, etc).	Mount Burgess Mining Diamond Core Holes HQ diameter triple tube was generally used for diamond core drilling in the oxide zone of the Kihabe Deposit. NQ diameter was generally used in the sulphide zone. Down hole surveys were conducted on all DD holes.
Drill sample recovery	Method of recording and assessing core and chip sample recoveries and results assessed. • Measures taken to maximise sample recovery and ensure representative nature of the samples. • Whether a relationship exists between sample recovery and grade and whether sample bias may have occurred due to preferential loss/gain of fine/coarse material	Mount Burgess Mining Diamond Core and RC Holes Sample recoveries were in general high and no unusual measures were taken to maximise sample recovery other than the use of triple tube core for diamond core drilling. Mount Burgess believes there is no evidence of sample bias due to preferential loss/gain of fine/coarse material.
Logging	Whether core and chip samples have been geologically and geotechnically logged to a level of detail to support appropriate Mineral Resource estimation, mining studies and metallurgical studies. • Whether logging is qualitative or quantitative in nature. Core (or costean, channel, etc) photography. • The total length and percentage of the relevant intersections logged.	Mount Burgess Mining Diamond Core Holes and RC Hole Holes were logged in the field by qualified Geologists on the Company’s log sheet template and of sufficient detail to support future mineral resource estimation: Qualitative observations covered Lithology, grain size, colour, alteration, mineralisation, structure. Quantitative logging included vein percent. SG calculations at ~5m intervals were taken in the DD holes. All holes were logged for the entire length of hole. Logs are entered into MTBs GIS database managed by MTB in Perth.
Sub-sampling techniques	If core, whether cut or sawn and whether quarter, half or all core taken. • If non-core, whether riffled, tube sampled, rotary split, etc and whether sampled wet or dry. • For all sample types,the nature, qualityand	Mount Burgess Mining Diamond Holes and RC Hole

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and sample preparation	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	HQ and NQ Core was sawn in half on site. Half of each core was retained on site in core trays and the other half was double bagged and labelled noting Hole# and interval both within the bag and on the bag. Sample bags were then placed in larger bags of ~40 individual samples and the larger bag also labelled describing the contents. Field duplicates were inserted at regular intervals. All samples currently being reported on were assayed for Ag/Co/Cu/ Pb/Zn. All RC sample bags were labelled with drill hole number and sample interval and collectively stored in larger bags with similar reference. Drill chip trays were all stored separately. All samples currently reported on were assayed for Ag/Co/Cu/Pb/Zn.
Quality of assay data and laboratory tests	•The nature, quality and appropriateness of the assaying and laboratory procedures used and whether the technique is considered partial or total •For geophysical tools, spectrometers, hand-held XRF instruments, etc, the parameters used in determining the analysis including instrument make and model, reading times, calibration factors applied and their derivation etc. • nature of quality control procedures adopted (e.g. standards, blanks, duplicates, external laboratory checks ) and whether acceptable levels of accuracy (i.e. lack of bias) and precision have been established.	All Mount Burgess Samples All samples, when originally assayed, were sent to Intertek Genalysis Perth, for assaying according to the following standard techniques: Diamond Core Samples (a) Ore grade digest followed by ICP – OES finish for Silver, Lead & Zinc (b) Also 4 acid digest for silver, lead, zinc followed by AAS RC Samples Ore grade digest followed by ICP-OES for Ag/Co/Cu/Pb/Zn Mount Burgess quality control procedures include following standard procedures when sampling, including sampling on geological intervals, and reviews of sampling techniques in the field. The current laboratory procedures applied to the Mount Burgess sample preparation include the use of cleaning lab equip. w/ compressed air between samples, quartz flushes between high grade samples, insertion of crusher duplicate QAQC samples, periodic pulverised sample particle size (QAQC) testing and insertion of laboratory pulp duplicates QAQC samples according to Intertek protocols. Intertek inserts QA/QC samples (duplicates, blanks and standards) into the sample series at a rate of approx. 1 in 20. These are tracked and reported on by Mount Burgess for each batch. When issues are noted the laboratory is informed and investigation conducted defining the nature of the discrepancy and whether further check assays are required. The laboratory completes its own QA/QC procedures and these are also tracked and reported on by Mount Burgess. Acceptable overall levels of analytical precision and accuracy are evident from analyses of the routine QAQC data
Verification of sampling and assaying	The verification of significant intersections by either independent or alternative company personnel. • The use of twinned holes. • Documentation of primary data, data entry procedures, data verification, data storage (physical and electronic) protocols. • Discuss any adjustment to assay data.	All Mount Burgess Samples Assay results for samples were received electronically from Intertek Genalysis and uploaded into MTB’s database managed by MTB at its Perth Office.
Location of data points	Accuracy and quality of surveys used to locate drill holes (collar and down- hole surveys), trenches, mine workings and other locations used in Mineral Resource estimation. • Specification of the grid system used. • Quality and adequacy of topographic control.	All Mount Burgess Holes Drill hole collar locations were recorded at the completion of each hole by hand held Garmin 62S GPS with horizontal accuracy of approx. 5 metres • Positional data was recorded in projection WGS84 UTM Zone 34S. The accuracy provided by the system employed is sufficient for the nature of the exploratory program. Downhole surveys were also conducted.

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Data spacing and distribution	Data spacing for reporting of Exploration Results. • Whether the data spacing and distribution is sufficient to establish the degree of geological and grade continuity appropriate for the Mineral Resource and Ore Reserve estimation procedure(s) and classifications applied. • Whether sample compositing has been applied.	All Mount Burgess Holes Mount Burgess drilling campaigns were undertaken to validate historical drilling as well as to acquire further data for future resource estimation.. The data spacing and distribution is currently insufficient to establish the degree of geological and grade continuity appropriate for the estimation of Mineral Resources compliant with the 2012 JORC Code. Additional drilling will be required to determine the extent of mineralisation and estimate a Mineral Resource compliant with the 2012 JORC Code. Sample compositing was conducted on drill holes, following receipt of assays from Intertek Genalysis, for the purpose of mineralogical and metallurgical test work.
Orientation of data in relation to geological structure	Whether the orientation of sampling achieves unbiased sampling of possible structures and the extent to which this is known, considering the deposit type. • If the relationship between the drilling orientation and the orientation of key mineralised structures is considered to have introduced a sampling bias, this should be assessed and reported if material.	All Mount Burgess Holes Mineralisation was typically intersected at -60 degrees and -90 degrees at the Kihabe Deposit and the Company believes that unbiased sampling was achieved.
Sample security	The measures taken to ensure sample security.	All Mount Burgess Holes Samples were taken by vehicle on the day of collection to MTB’s permanent field camp, and stored there until transported by MTB personnel to Maun from where they were transported via regular courier service to laboratories in South Africa.
Audits or reviews	The results of any audits or reviews of sampling techniques and data.	All Mount Burgess Diamond Core Holes A Company Geologist reviewed sampling and logging methods throughout the drilling programs. Mount Burgess RC Hole MTB’s Exploration Geologists continually reviewed sampling and logging methods on site throughout the drilling programs.

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Section 2 Reporting of Exploration Results (Criteria listed in the preceding section also apply to this section).

Criteria	JORC Code Explanation	Commentary
Mineral tenement and land tenure status	Type, reference name/number, location and ownership including agreements or material issues with third parties such as joint ventures, partnerships, overriding royalties, native title interests, historical sites, wilderness or national park and environmental settings.	The Kihabe-Nxuu Project is located in north-western Botswana, adjacent to the border with Namibia. The Project is made up of one granted prospecting licence - PL 43/2016, which covers an area of 1000 sq km. This licence is 100% owned and operated by Mount Burgess. The title is current at the time of release of this report, with a renewal granted in November 2020 to 31 December 2022. PL 43/2016 is in an area designated as Communal Grazing Area.
	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.	The licence is in good standing and no impediments to operating are currently known to exist.
Exploration done by other parties	Acknowledgment and appraisal of exploration by other parties.	The Geological Survey of Botswana undertook a program of soil geochemical sampling in 1982. As a result of this program, Billiton was invited to undertake exploration and drilling activities in and around the project area. Mount Burgess first took ownership of the project in 2003 and has undertaken exploration activities on a continual basis since then.
Geology	Deposit type, geological setting and style of mineralisation.	The Kihabe-Nxuu Project lies in the NW part of Botswana at the southern margin of the Congo craton The Gossan Anomaly is centred on an exposed gossan within the project. To the north of the project are granitoids, ironstones, quartzites and mica schists of the Tsodilo Hills Group covered by extensive recent Cainozoic sediments of the Kalahari Group. Below the extensive Kalahari sediments are siliciclastic sediments and igneous rocks of the Karoo Supergroup in fault bounded blocks.
Drill hole Information	A summary of all information material to the understanding of the exploration results including a tabulation of the following information for all Material drill holes: easting and northing of the drill hole collar elevation or RL (Reduced Level – elevation above sea level in metres) of the drill hole collar dip and azimuth of the hole down hole length and interception depth hole length	Information material to the understanding of the exploration results reported by Mount Burgess is provided in the text of the public announcements released to the ASX. No material information has been excluded from the announcements.

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Criteria	JORC Code Explanation	Commentary
	If the exclusion of this information is justified on the basis that the information is not Material and this exclusion does not detract from the understanding of the report, the Competent Person should clearly explain why this is the case.
Data aggregation methods	In reporting Exploration Results, weighting averaging techniques, maximum and/or minimum grade truncations (eg cutting of high grades) and cut-off grades are usually Material and should be stated. Where aggregate intercepts incorporate short lengths of high grade results and longer lengths of low grade results, the procedure used for such aggregation should be stated and 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.	All Mount Burgess Holes No data aggregation methods have been used.
Relationship between mineralisation widths and intercept lengths	These relationships are particularly important in the reporting of Exploration Results. If the geometry of the mineralisation with respect to the drill hole angle is known, its nature should be reported. If it is not known and only the down hole lengths are reported, there should be a clear statement to this effect (eg ‘down hole length, true width not known’).	All Mount Burgess Holes The geometry of the mineralisation with respect to the drill hole angle is typically at -60 degrees at the Kihabe Deposit which is considered representative from a geological modelling perspective.
Diagrams	Appropriate maps and sections (with scales) and tabulations of intercepts should be included for any significant discovery being reported These should include, but not be limited to a plan view of drill hole collar locations and appropriate sectional views.	All Mount Burgess Holes Appropriate maps, sections and mineralised drill intersection details are provided in public announcements released to the ASX. Refer to the Company’s website www.mountburgess.com.
Balanced reporting	Where comprehensive reporting of all Exploration Results is not practicable, representative reporting of both low and high grades and/or widths should be practiced to avoid misleading reporting of Exploration Results.	Exploration results reported in Mount Burgess public announcements and this report are comprehensively reported in a balanced manner.
Other Substantive Exploration Data	Other exploration data, if meaningful and material,should be reported including (but not

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Criteria	JORC Code Explanation	Commentary
	limited to): geological observations, geophysical survey results, geochemical survey results, bulk samples – size and method of treatment, metallurgical test results, bulk density, ground water, geotechnical and rock characteristics, potential deleterious or contaminating substances.
Further work	The nature and scale of planned further work (eg tests for lateral extensions or depth extensions or large-scale step-out drilling). Diagrams clearly highlighting the areas of possible extensions, including the main geological interpretations and future drilling areas, provided this information is not commercially sensitive.	Further works planned at the Project include additional drilling and surface mapping at the Kihabe-Nxuu Zinc/Lead/Silver/Germanium and Vanadium Project.

ACN: 009 067 476 8/800 Albany Hwy, East Victoria Park, Western Australia 6101 Tel: (61 8) 9355 0123 Fax: (61 8) 9355 1484 mtb@mountburgess.com www.mountburgess.com

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Appendix 5B

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

Name of entity

MOUNT BURGESS MINING N.L.

ABN 31009067476

Quarter ended (“current quarter”)

30 June 2021

Consolidated statement of cash flows	Current quarter $A’000	Year to date (12 months) $A’000
1. Cash flows from operating activities 1.1 Receipts from customers 1.2 Payments for (a) exploration & evaluation (if expensed) (b) development (c) production (d) staff costs (e) administration and corporate costs - audit adjustment for Dec20 qtr 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 – Covid 19 stimulus package 1.9 Net cash from / (used in) operating activities	- - - - (18) (55) - - - - - - -	- - - - (64) (334) 27 - - - - 16 10
	(73)	(345)
2. Cash flows from investing activities 2.1 Payments to acquire: (a) entities (b) tenements (c) property, plant and equipment (d) exploration & evaluation (if capitalised) (e) investments (f) other non-current assets	- - (24) (12) - -	- - (29) (66) - -

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Consolidated statement of cash flows	Current quarter $A’000	Year to date (12 months) $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 – R&D tax incentives 2.6 Net cash from / (used in) investing activities	- - - - - - - -	- - - - - - - 2
	(36)	(93)
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 debt securities 3.3 Proceeds from exercise of options 3.4 Transaction costs related to issues of equity securities or convertible debt securities – audit adjustment for Dec20 qtr 3.5 Proceeds from borrowings 3.6 Repayment of borrowings 3.7 Transaction costs related to loans and borrowings 3.8 Dividends paid 3.9 Other (provide details if material) 3.10 Net cash from / (used in) financing activities	693 - - (28) - - (14) - - -	1,155 - - (28) (27) 10 (89) - - -
	651	1,021
4. Net increase / (decrease) in cash and cash equivalents for theperiod
4.1 Cash and cash equivalents at beginning of period 4.2 Net cash from / (used in) operating activities (item 1.9 above) 4.3 Net cash from / (used in) investing activities (item 2.6 above) 4.4 Net cash from / (used in) financing activities (item 3.10 above) 4.5 Effect of movement in exchange rates on cash held 4.6 Cash and cash equivalents at end of period	62 (73) (36) 651 -	21 (345) (93) 1,021 -
	604	604

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5. Reconciliation of cash and cash equivalents at the end of the quarter (as shown in the consolidated statement of cash flows) to the related items in the accounts	Current quarter $A’000	Previous quarter $A’000
5.1 Bank balances 5.2 Call deposits 5.3 Bank overdrafts 5.4 Other (provide details) 5.5 Cash and cash equivalents at end of quarter(should equal item 4.6 above)	604 - - -	62 - - -
	604	62

6. Payments to related parties of the entity and their associates 6.1 Aggregate amount of payments to related parties and their associates included in item 1 6.2 Aggregate amount of payments to related parties and their associates included in item 2	Current quarter $A'000
	-
	-

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. Financing facilities Note: the term “facility’ includes all forms of financing arrangements available to the entity. Add notes as necessary for an understanding of the sources of finance available to the entity. Total facility amount at quarter end $A’000 Amount drawn at quarter end $A’000 7.1 Loan facilities - - 7.2 Credit standby arrangements 10 2 7.3 Other (please specify) - - 7.4 Total financing facilities 10 2 7.5 Unused financing facilities available at quarter end 8 7.6 Include in the box below a description of each facility above, including the lender, interest rate, maturity date and whether it is secured or unsecured. If any additional financing facilities have been entered into or are proposed to be entered into after quarter end, include a note providing details of those facilities as well.	Total facility amount at quarter end $A’000	Amount drawn at quarter end $A’000
	-	-
	10	2
	-	-
	10	2
N/A

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8.	Estimated cash available for future operating activities	$A’000
8.1 8.2 8.3 8.4 8.5 8.6 8.7	Net cash from / (used in) operating activities (Item 1.9) Capitalised exploration & evaluation (Item 2.1(d)) Total relevant outgoings (Item 8.1 + Item 8.2) Cash and cash equivalents at quarter end (Item 4.6) Unused finance facilities available at quarter end (Item 7.5) Total available funding (Item 8.4 + Item 8.5) Estimated quarters of funding available (Item 8.6 divided by Item 8.3)	(73) (12) (85) 604 8 612
		7.2 quarters
8.8	If Item 8.7 is less than 2 quarters, please provide answers to the following questions: 1. Does the entity expect that it will continue to have the current level of net operating cash flows for the time being and, if not, why not?
	N/A
	2. Has the entity taken any steps, or does it propose to take any steps, to raise further cash to fund its operations and, if so, what are those steps and how likely does it believe that they will be successful?
	N/A
	3. Does the entity expect to be able to continue its operations and to meet its business objectives and, if so, on what basis?
	N/A

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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: 28 July 2021

Authorised by: By the Board (Unaudited cashflow)

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.

2. 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.

3. 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.

4. 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”.

5. 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.

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