TORO ENERGY LIMITED — Capital/Financing Update 2021

Oct 4, 2021

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ASX RELEASE

5 October 2021

Diamond Drilling Recommences on Toro’s Dusty Nickel Project

Toro Energy Limited ( ASX: TOE ) (‘the Company ’ or ‘ Toro ’) is pleased to announce that the 2021 diamond drilling campaign on the Company’s 100% owned Dusty Nickel Project (‘the Project ’) has recommenced. The Project is located in the Yandal Greenstone Belt, some 50km east of the world class Mt Keith nickel deposit and 15km NE of the Bronzewing Gold Mine (see Figure 1 ).

The field campaign will continue the planned diamond drilling program of at least 2,600m as outlined in the Company’s ASX announcement of 11 March 2021. Mud rotary collars will be used where needed to penetrate through the paleochannel that lies above the Dusty Nickel Discoveries (see Figures 2 and 3 and refer to the ASX announcement of 1 September 2021 for Dusty drilling results to date).

Dusty 1 and Dusty 2 Nickel Discoveries

At the Dusty Target Area drilling will be focused on further testing the fertility of the Dusty komatiite along strike of both Dusty 1 and Dusty 2, testing for extension of the massive nickel sulphides intersected at those two nickel discoveries and gathering geological and structural information that will aid in the determination of orientation and morphology of the massive nickel sulphides intersected to date.

Drilling at the Dusty Target Area has so far resulted in the discovery of two areas of very significant massive and semi-massive nickel sulphide mineralisation, referred to as Dusty 1 and Dusty 2. Significant intersections to date include (downhole depths only – refer to the ASX announcement of 1 September 2021 for drill hole details and the related JORC Table 1):

Dusty 1

• TED04: 2.6m at 3.45% nickel, 0.18% copper, 0.15% cobalt, and 0.388g/t platinum and palladium from 184.5m.

• TED07: 9m at 2.07% nickel from 250.9m including:

• 2.0m at 4.01% nickel, 0.27% copper, 0.13% cobalt and 0.45 g/t platinum and palladium from 250.9m ( see Figure 4 ); and

• 2.0m at 3.85% nickel, 0.41% copper, 0.13% cobalt and 0.45 g/t platinum and palladium from 255.5m.

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Dusty 2

• TED14: 3.05m at 1.59% nickel, 0.07% copper, 0.06% cobalt, and 0.34g/t platinum and palladium from 297.75m including:

• 0.75m at 4.3% nickel, 0.1% copper, 0.15% cobalt and 0.89 g/t platinum and palladium from 297.75m; and

• 0.25m at 5.85% nickel, 0.06% copper, 0.2% cobalt and 0.32 g/t platinum and palladium from 297.75m.

The Dusty nickel sulphide mineralisation is open at depth, above and below the current intersections, at both locations and along strike. The two discoveries are approximately 400m apart in the same komatiite host rock that stretches N-S for some 7.5km, with over 7km yet to be tested with a single drill hole. For further details on the Dusty Nickel Project please refer to the project update included in the ASX announcement of 1 September 2021.

Yandal One Target Area for Nickel

In addition to drilling at the Dusty Nickel Discoveries, a single diamond hole is planned to be drilled at the Yandal One Target Area (refer to Figure 2 ). This single diamond drill hole will aim to test the base of the Yandal One komatiite beneath a geochemical anomaly intersected in Toro’s 2016 reverse circulation ( RC ) drilling. The planned hole, which will twin and extend beyond one of the 2016 RC drill holes, will also be used to identify the source of nickel anomalism in granitoid intersected in the RC drill hole to be twinned.

The Yandal One Target Area is focused on a large body of folded komatiite-ultramafic rock confirmed by Toro’s 2016 RC drilling and interpreted from magnetics to have a folded strike length of some 8km. Whilst the original Yandal One target, a large disseminated sulphide deposit of the type found at Mt Keith, was not as yet validated, Toro concluded that the Yandal One area was still prospective for massive nickel sulphide mineralisation. There has been no further drilling at the Yandal One Target Area since Toro’s 2016 RC drilling program.

Toro will provide further updates as drilling progresses.

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Figure 1: Location of Toro's Dusty Nickel Project within the Yandal Greenstone Belt. The map also shows the location of the Mt Keith and Cosmos nickel deposits on the Wiluna-Agnew greenstone belt along with the location of the Dusty Nickel Discovery.

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Figure 2: Map showing the location of the Dusty and Yandal One Target Areas within the Dusty Nickel Project.

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Figure 3: Location of TED14 relative the original Dusty Nickel Discovery within the Dusty Target Area.

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Figure 4: Photo of massive nickel sulphide in drill core of diamond hole TED07 at the Dusty nickel discovery on Toro’s 100% owned Yandal Gold Project – this part of the core grades 4.01% nickel (see text for details).

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This announcement was authorised for issue by the board of Toro Energy Limited.

Katherine Garvey

Legal Counsel and Company Secretary, Toro Energy Limited. 60 Havelock Street, West Perth WA 6005

FURTHER INFORMATION:

Richard Homsany Toro Energy 08 9214 2100 Greg Shirtliff Toro Energy 08 9214 2100

Competent Person’s Statement

The information in this document that relates to geology and exploration was authorised by Dr Greg Shirtliff, who is a full time employee of Toro Energy Limited. Dr Shirtliff is a Member of the Australian Institute of Mining and Metallurgy and has sufficient experience of relevance to the tasks with which they were employed to qualify as a Competent Person as defined in the 2012 Edition of the Joint Ore reserves Committee (JORC) Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves. Dr Shirtliff consents to the inclusion in the report of matters based on information in the form and context in which it appears.

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