TARUGA MINERALS LIMITED — Capital/Financing Update 2021

Jul 11, 2021

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Exploration Update – Wyacca Copper Prospect

Key Points

• Phase 2 drilling has been completed at Wyacca for a total of 43 holes and ~4100m.

• Reprocessed government magnetic data and GSSA mapping has been used to interpret the extension of the Tindelpina Shale Member (TSM) over 56 km. The TSM hosts the known high-grade copper mineralisation intercepted recently at Wyacca.

• Taruga is applying a Zambian Copperbelt metallogenic model to the Wyacca copper prospect and its potential extensions along the prospective TSM and other prospective Tapley Hill Formation Sediments.

• Ongoing reconnaissance exploration including structural mapping and review of geophysics is currently underway to identify basin controlling structures which potentially control mineralisation within the TSM and other prospective Tapley Hill Formation (THF) sediments at the Mt Craig Project (MCP).

• Diamond drilling is planned for August, to obtain further information regarding mineralisation, alteration and structure at Wyacca and Morgan’s Creek.

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• Samples from the recent Wyacca and Morgan’s Creek drilling programs have been dispatched for assay with results expected in mid-August.

Taruga Minerals Ltd ( ASX:TAR , Taruga or the Company ) is pleased to provide an exploration update on the Wyacca copper prospect. A second-pass drilling program has been completed with 43 reverse circulation (RC) holes drilled for a total of 4,100 metres. Holes range in depth from 18 m to 300 m with an average depth of 95 metres. Assay results for this program are expected in mid-August.

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The drill program was aimed at confirming the relationships between mineralisation, structure, and geophysical anomalies at Wyacca. Drilling has confirmed that the Wyacca mineralisation has a strong stratigraphic control within in the reduced Tindelpina Shale Member (TSM). Secondary structural controls are being investigated. Taruga have reprocessed government magnetic data and have interpreted the extent of this unit where it may be folded around the nose of the Worrumba Anticline ( Figures 1 & 2 ) . The TSM is the main target for sediment hosted copper mineralisation at Wyacca and its potential extensions.

Reduced black shales of the TSM provide an ideal host for Zambian/Central African Copperbelt style Cu-CoAg-Pb-Zn mineralisation. The TSM outcrops over 56 km around the Worrumba Anticline, within the Taruga Exploration Licence and Exploration Licence permit ( Figures 1, 2 & 3 ). The New Wyacca Prospect ( Figures 1 & 2 ), an apparent structural repetition of the Wyacca Prospect, has been identified from geophysical data. This prospect is 8 km along strike to the east of Wyacca.

The Adelaide Geosyncline (AGS) is comparable in age and geodynamic setting to the Katangan Orogen which hosts the Central African Copperbelt. The AGS is known to host mineralisation which is consistent with the Zambian Copperbelt model. The Beltana deposit north of Mt Craig Copper Project (MCP) is a very high-grade discordant zinc deposit which shows similarities to the world class Kipushi (Cu-Zn-Pb-Ag) deposit in the DRC. The MCP is in a comparable setting, being proximal to the Worrumba Diapir and Taruga consider it is prospective for Kipushi Type mineralisation. The Worrumba Diapir is interpreted as a major conduit for mineralising fluids. The Tindelpina Shale represents a reduced facies host rock with potential to host Zambian Copperbelt style mineralisation.

Government and historical company gravity data was also reprocessed ( Figure 3 ) and has further highlighted large gravity anomalies along the limbs of the Worrumba Anticline. These anomalies are coincident with the southern and western extents of the mapped Tindelpina Shale and its potential extensions under cover. However, the historical gravity survey data resolution is considered inadequate for drill target definition in some areas of the project which will undergo infill gravity surveys. Further interpretation will be possible following the collection of new gravity data, however what is clear from the current dataset is that large dense bodies are present in close proximity to the Worrumba Anticline structure.

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Figure 1. Reprocessed Reduced to Pole Total Magnetic Intensity (RTP TMI) Image Highlighting the Magnetic Signature of the Mapped Tindelpina Shale Member on the Northern and Southern Limbs of the Worrumba Anticline, and Apparent Structural Repetition of the Wyacca Prospect Geometry at the “New Wyacca” Prospect. Note the Tindelpina Shale may Wrap Around the Fold Nose and this will be Reviewed During Upcoming Field Mapping. Taruga consider that the Diapiric Breccias of the Worrumba Diapir are Controlled by a Significant Basin Controlling Structure (the Worrumba Anticline) which in turn is an Important Control on Mineralisation.

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Figure 2. Reprocessed Vector Residual Magnetic Intensity (VRMI) Image Highlighting various Discrete Magnetic Anomalies clustered around the Worrumba Anticline Axis.

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Figure 3. Reprocessed Residual Bouguer Gravity Image Highlighting Significant Gravity Anomalies Surrounding the Worrumba Anticline Axis. Note the Gravity Data is Limited and an Infill Gravity Survey is Required to Provide Further Definition and Define New Anomalies in Gaps in the Historical Dataset.

CEO Thomas Line Commented: “We are very pleased with how the exploration program is developing at Wyacca. Wyacca is a greenfields copper discovery, where high-grade copper mineralisation has been intercepted from limited drilling. Our commitment to ongoing systematic exploration is delivering significant prospect-scale growth, with approximately 56 km of highly prospective Tindelpina Shale identified on Taruga ground. The Worrumba Anticline is believed to be a basin-controlling structure, from which many substructures extend and likely cross-cut the Tindelpina Shale. Identifying influential structures

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and ideal trap sites for high-grade Zambian-style copper mineralisation within the Tindelpina Shale will be a focus at the evolving Wyacca Prospect, moving forward”.

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Figure 4. Image of the Vertical Component dB/dt Amplitude for Window 16 - 0.126 mSec, Highlighting 7km Early-Time VTEM Anomaly Coincident with IP Anomaly, recent Drill Collars (assays pending) and TAR Drilling Results.

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Figure 5. Image of the Vertical Component dB/dt Amplitude for Window 30 - 0.88 mSec, highlighting 7km Mid-Time VTEM Anomaly Intensifying with Depth, showing Recent Drill Collars (assays pending) and TAR Drilling Results.

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Figure 6. Image of the Vertical Component dB/dt Amplitude for Window 45 – 7.036 mSec, Highlighting 7km Late Time VTEM Anomaly, with an Intensified 2km x 1km VTEM Anomaly in the East, showing Recent Drill Collars (assays pending) and TAR Drilling Results.

Further Work

• Maiden diamond drilling program to better understand mineralisation and structure (early August).

• Detailed reconnaissance exploration including soils geochemistry across Tindelpina Shale and cross cutting structures.

• Infill gravity survey over Prospective areas with very low-resolution historical gravity data.

• Further RC drilling along strike and downdip, targeting influence zones of interpreted basin controlling structures.

• Downhole IP and EM geophysical surveys on selected holes to better map and model mineralisation and structural/lithological controls.

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About the MCP

The MCP is situated within the Adelaide Geosyncline ( AGS ), and lies at the intersection of the G2 and G8 structural corridors (lineaments). The G2 and G8 lineaments mapped by O’Driscoll may reflect the deep lithospheric structure of Australia. The AGS has hosted over 800 historical copper mines or workings, and multiple polymetallic mines since the 1840’s. Copper-gold associations are common within the AGS, with many of the old copper mining ventures not recognising the presence of gold. Modern exploration has continued to uncover significant large-scale, polymetallic, base and precious metal potential around historical mining regions within the AGS, which have undergone limited exploration and development since initial mining ceased in the late 1800’s.

The Adelaide Geosyncline (AGS) is comparable in age and geodynamic setting to the Katangan Orogen which hosts the Central African Copperbelt. The AGS is known to host mineralisation which is consistent with the Copperbelt model. The Beltana deposit is a very high-grade discordant zinc deposit which shows similarities to the world class Kipushi (Zn-Pb-Cu-Ag) deposit in DRC. The MCCP is in a comparable setting proximal to the Worrumba Diapir and Taruga consider it is prospective for Kipushi Type mineralisation. The diapir is interpreted as a major conduit for mineralising fluids. The Tindelpina Shale represents a reduced facies host rock with potential to host Zambian style mineralisation.

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Figure 7. Regional Map showing the MCCP (in red) location within the Adelaide Geosyncline and G2 Structural Corridor within the Gawler Craton and Significant Mines/Deposits Nearby.

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Figure 8. MCCP Project Outline showing Priority Exploration Targets, Historical Mineral Occurrences & Mines, and the Main Structural Feature being the Worrumba Anticline.

This announcement was approved by the Board of Taruga Minerals Limited.

For more information contact:

Thomas Line Eric de Mori CEO Director +61 8 9486 4036 +61 8 6169 2668

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Competent Person’s Statement – Exploration Results

The information in this report that relates to exploration results is based on, and fairly represents information and supporting documentation prepared by Mr Brent Laws, a Competent Person who is a Member of The Australasian Institute of Mining and Metallurgy. Processing and modelling of the geophysics have been conducted by Jim Allender, a geophysical consultant to the Company through Allender Exploration. Jim Allender is a member of the Australian Institute of Geoscientists (AIG) and is an experienced geophysicist with over 30 years’ experience. Mr Allender has sufficient experience relevant to the style of mineralisation and the type of deposit under consideration.

Mr Laws is the Exploration Manager of Taruga Minerals Limited. Mr Laws 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 Reporting of Exploration Results, Mineral Resource and Ore Reserves”. Both Mr Laws and Mr Allender consent to the inclusion in this report of the matters based on their information in the form and context in which it appears.

Forward Looking Statements and Important Notice

This report contains forecasts, projections and forward-looking information. Although the Company believes that its expectations, estimates and forecast outcomes are based on reasonable assumptions it can give no assurance that these will be achieved. Expectations and estimates and projections and information provided by the Company are not a guarantee of future performance and involve unknown risks and uncertainties, many of which are out of Taruga’s control.

Actual results and developments will almost certainly differ materially from those expressed or implied. Taruga has not audited or investigated the accuracy or completeness of the information, statements and opinions contained in this announcement. To the maximum extent permitted by applicable laws, Taruga makes no representation and can give no assurance, guarantee or warranty, express or implied, as to, and takes no responsibility and assumes no liability for the authenticity, validity, accuracy, suitability or completeness of, or any errors in or omission from, any information, statement or opinion contained in this report and without prejudice, to the generality of the foregoing, the achievement or accuracy of any forecasts, projections or other forward looking information contained or referred to in this report.

Investors should make and rely upon their own enquiries before deciding to acquire or deal in the Company’s securities.

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