TRUE NORTH COPPER LIMITED — Interim / Quarterly Report 2020

Jan 28, 2021

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ASX: DEX

QUARTERLY ACTIVITY REPORT FOR THE PERIOD ENDED 31 DECEMBER 2020

JANUARY 30, 2021

Highlights

• Duke Exploration listed on the Australian Stock Exchange on 10 November 2020 after successfully raising $8 million in the IPO,

• The Company’s operations have not been affected by COVID-19 restrictions, with exploration operations continuing as normal through the December Quarter,

• Drilling at Bundarra commenced in October with 3,905m completed at the end of the quarter,

• Nine RC drill holes for 1,014m were drilled at the recently identified Quarry anomaly with best results of: 7m @ 3.85% Cu,58.2g/t Ag and 0.1g/t Au from 21.0m in MFRC006 and 8m at 1.53% Cu, 27.8g/t Ag and 0.04g/t Au from 70.0m in MFRC005,

• The mineralisation at Quarry was in the granodiorite, expanding the potential of the whole Bundarra project area and the Mt Flora prospect,

• Fourteen RC drill holes for 2,891m have been completed at Mt Flora with assay results pending and expected during the March quarter,

• Visual logging and pXRF results confirm historical drilling results and increase the number of sulphide veins in the Mt Flora prospect,

• Several geophysical surveys at the Quorn prospect, located about 10ks from Mt Flora have identified anomalies that are larger and stronger than those at Mt Flora,

• pXRF soil sampling over the area has mapped highly anomalous copper (up to 0.47% Cu) over the geophysical anomalies confirming the potential of this area at Bundarra,

• Drilling at Mt Flora recommenced in early January with an additional 2,478m completed,

• A second RC drilling rig has been sourced to fast-track Mt Flora drilling and commence drilling at Prairie Creek and Quorn.

Duke Exploration Limited ABN 28 119 421 868 PO Box 765 Kenmore Q 4069 AUSTRALIA www.duke-exploration.com.au

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Next Quarter Work Programme

• Complete phase one RC drilling at Mt Flora,

• Start the next phase of infill drilling at Mt Flora guided by the results from the phase one drilling,

• Start pattern resource drilling at the Quarry Anomaly focussing on the higher grade northern strike extension,

• Complete follow up geophysics surveys at Quorn to allow planning of a drilling programme to test the results from this work,

• Extend the gradient array and pXRF soil sampling to cover anomalous areas from the Quorn surveys that are open,

• Complete gradient array and pXRF soil surveys over the Isen Underground mine area, with the aim of starting drill testing by the second quarter of 2021,

• Finalise land access and drill planning at the Prairie Creek gold target.

This quarterly announcement has been authorised for release by the Board.

Toko Kapea Chairman - t.kapea@duke exploration.com.au Ph+64 27 534 2886

Eugene Iliescu Managing Director - md@duke exploration.com.au Ph +61 418 757 364

Duke Exploration Limited www.duke-exploration.com.au

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Corporate

Duke Exploration (ASX Code: DEX) commenced trading on the Australian Securities Exchange at 11.00am Tuesday 10th November 2020. The capital raising was fully subscribed with the Prospectus target raising of $8 million achieved. The number of shareholders in the Company has increased from 45 at listing to over 800 shareholders at the end of the December Quarter.

The funds raised from the IPO have been put to work immediately with geophysical surveys and drilling underway at the Bundarra project. At the end of the December Quarter the Company’s share price was 36 cents, which is a 44% increase on the share price at listing that equates to a market capitalisation of approximately $28 million.

The Companies operations have not been affected appreciably by COVID-19 restrictions, with exploration operations continuing as normal through the December Quarter.

Duke presented at the Noosa Mining conference in November 2020 and a video copy of the presentation can be viewed at https://vimeo.com/480627339. The Company will be presenting at RIU Explorers Conference in Perth in February 2021, at the RIU Sydney Resources Roundup in May 2021 and the Noosa Festival of Mining in November 2021. Please see Dukes website for conference details, ASX announcements and media coverage, particularly a video presentation of the Bundarra Project (www.duke-exploration.com.au).

Related party payments paid during the quarter comprised Non-Executive Directors fees, salary for the Managing Director, fixed monthly consulting fee paid to the Company Secretary and consulting fees paid to Kenex Pty Ltd (Kenex) for geological and database management services. Dr Greg Partington, the Company’s Operations Manager is a director of Kenex. A full explanation of the services provided by Kenex and the contractual relationship was outlined in the Company’s prospectus.

Duke is well placed to meet the March Quarter exploration commitments and planned work programs with $7,343,000 cash in the bank as of 31st December 2020.

Duke Exploration Limited

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Operations

Bundarra Project, (Duke 100%)

The Bundarra Project comprises the Bundara EPM 26499 and two applications, Duania EPMA 27474 and Waitara EPMA 27609. The tenements are located approximately 130 km southwest of Mackay and 50 km east of Moranbah in central Queensland (Figure 1 ). The Bundarra tenement covers 207 km[2] over the Bundarra Pluton, the Duania Application covers 83 km[2] over the interpreted down plunge extent of the Bundarra Pluton to the south west and the Waitara tenement application covers 19 km[2] over a geologically related intrusion to Bundarra (Waitara granite), 20 km to the north east, on a trend of buried intrusions that have been mapped in 3D (Figure 1).

The Mt Flora prospect is a high priority target for development in the Bundarra Project area (see www.dukeexploration.com.au for project details) and is where initial exploration and resource drilling is being focussed. First pass electrical geophysical and pXRF soil surveys are being carried out around the contact of the Bundarra intrusion as the drilling at Mt Flora progresses, with exploration starting in the South West of the pluton around the historic Quorn prospect.

Figure 1: Location of Bundarra Project (EPM 26499, EPMA 27474 and EMPA 27609) compared to historic prospects and main target areas.

The Company completed three electrical geophysical surveys at Mt Flora early in 2020 that confirmed the known areas of mineralisation and identified several additional new geophysical anomalies (Figure 2). A pXRF soil survey was completed during the quarter to test the use of this sampling method as exploration technique around the 50 km perimeter of the Bundarra pluton, and map the copper values in the soil spatially associated with the new electrical geophysical data and compare these with the soil data over the historic mine workings where the copper and silver mineralisation is known to occur.

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A total of 615 soil samples were collected on an 80 m by 80 m grid pattern over a larger area than the area where the electrical geophysical data were collected, with the soil survey extended 1,000 m to the north and 500 m to the west (Figure 3). The sampling to the north was to test the possibility of copper anomalies in the unmetamorphosed conductive sediments and the sampling to the west tested the historic Try Again and Wallaroo mine workings.

Figure 2. Interpretation of potential new zones of copper, silver and gold mineralisation to the north of the Mt Flora underground mines mapped by conductivity in ground EM and GAIP surveys.

Copper data from the pXRF soil survey successfully mapped the known copper mineralisation intersected by the drilling and mined areas at Mt Flora, Try Again and Wallaroo, and mapped two unmined north-western trends to the north-east of Mt Flora in a similar location to the conductivity anomalies mapped by the electrical geophysical survey data (Figure 3). The known copper mineralisation can be mapped using a copper anomaly cut-off of 140 ppm Cu, which will be used to map other potential copper rich vein system around the 50km Bundara pluton contact.

Certain areas around the submit of Mt Flora proved difficult to sample due to significant scree slopes. The scree resulted in a sample being taken that may not accurately represent the true soil profile at the given location and areas with low copper soil values may host bedrock mineralised veins that are covered by barren scree.

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Figure 3. Right: results for copper from the pXRF soil survey at Mt Flora compared to the ground EM survey and historic mine locations. Left: Grid of copper from the pXRF soil survey over Mt Flora compared to conductivity anomalies, granodiorite contact, VTEM anomalies and historic mines.

The most anomalous area identified from the Mt Flora pXRF soil survey correlates with known workings on the south side of Mt Flora mines, with samples returning copper values greater than 1% Cu (Figure 3). The anomalous zone extends further south than the workings, which could map the strike of the known mineralisation to the south or be from erosion and mechanical movement downslope (Figure 3). This will be tested by the current RC drilling programme.

A second area of anomalous copper (Quarry Anomaly) with similar copper values to the Mt Flora mine area was unexpectedly mapped in the quarry area to the south of the minor underground workings of the East Lode (Figure 3). Despite the obvious disturbance in the quarry area due to quarrying activities, the copper anomaly in this area appears geologically robust and structurally continuous. The correlation of the copper soil anomaly with a VTEM anomaly provides confidence that this anomaly is potentially due to bed rock mineralisation that extends at depth (Figure 3).

This is a very important discovery as both the soil anomaly and gossan are hosted by the Bundarra granodiorite and continue along strike for 500m into the argillite hornfels, suggesting the granodiorite may also be significantly mineralised. If this interpretation proves correct this may increase the potential length of the Mt Flora vein system to the south into the granodiorite. The regional implications are potentially very significant and could increase the potential scale of what appears to be a very large mineralised system at Bundarra. Because of this drilling of the

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Quarry anomaly will be given a very high priority in the planned RC drill programme, with the Quarry anomaly target one of the first to be drilled.

The positive spatial correlation between the two north western copper soil anomalies and the geophysical anomalies in both IP and EM data confirms that the conductive anomalies are most likely be due to copper rich sulphide mineralisation that extends at depth and this is very promising for extending the known mineralised trend at Mt Flora to the north of the current underground workings and drilling (Figure 2 and Figure 3). An additional anomaly has been mapped to the north west of Mt Flora along the ridge line. The copper anomaly is isolated but covers the historic Try Again and Wallaroo mine workings and will be followed up with more detailed mapping and possibly drilling as a lower priority.

Exploration drilling to test the Quarry Anomaly and pattern resource drilling at Mt Flora started during the quarter. A phased approach is being taken to the drilling, which initially in Phase One will aim to deliver an Inferred resource over the known area of mineralisation at Mt Flora. If successful, the drilling will be extended to cover the electrical geophysical anomalies to the north and south and potential down dip extensions and the Quarry Anomaly to the north and south. All drill holes are planned to drill west at between 70-50° to intersect the mineralised lodes dipping 40° to the east. The main aims of this Phase One programme are:

• Drill enough pattern holes in Phase One to estimate an inferred resource over the known mineralised strike of 440m at Mt Flora.

• Test the strike and downhole extent of the Mt Flora mineralisation to the north.

• Test the geophysical survey anomalies in the granodiorite to the south and east.

• Drill the interpreted geological contact between the hornfels argillite and granodiorite to test for continuations of mineralised veins into the granodiorite.

• Prioritise any geophysical anomalies that warrant follow up exploration and infill drilling.

The Phase One drill plan comprises 43 holes for 7,040m and are spaced 60m down dip and along strike of the known mineralisation that was mined historically and intersected in the historic drilling. The hole locations are optimally spaced to test the extent of mineralisation and allow resource estimation studies at the completion of the RC drilling programme. The western most holes at Mt Flora will target the mineralisation near the surface, with the hole depth increasing to the east targeting the interpreted mineralisation at depth. Several planned hole locations are in topographically challenging areas (gorges and shafts), and the hole locations have been adjusted for safety and the azimuth and dip of the holes have been amended to account for the changed hole location and still target the mineralised pierce points at 60m drill trace distance.

One of the main questions about the mineralisation at Mt Flora is if it extends into the granodiorite and if so, is the grade economic. The discovery of the Quarry Anomaly has made this a high priority, with six drill holes planned to test the strike extent of the known mineralisation at Mt Flora into the granodiorite to the south. The drill hole lines are spaced at 120m to efficiently test the strike extent and will be infilled as required in later drill programmes if successful. Eleven drill holes were planned to test the extent and geometry of the Eastern Lode and Quarry Anomaly, which are easy to access. Three holes are planned to test the conductive anomaly to the north of the main underground workings at Mt Flora. The anomaly has been identified in all VTEM, 3D IP, FLEM and GAIP surveys, and is along strike of the known mineralisation. The pXRF soil geochemistry survey described above has also identified a copper soil anomaly with the same orientation as the geophysical trends.

Duke Exploration Limited

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All drill holes are planned to drill through the interpreted mineralised lodes and the geophysical anomalies extrapolated to dip 45° from the anomaly surface expression. The drill depths are being adjusted based on pXRF copper and silver results as the holes are drilled. The proposed hole depths and priority will be constrained by the pXRF copper and silver results from the adjacent hole. If mineralisation is not intersected in a hole, it is unlikely the mineralisation will continue down-dip and the planned hole may be shortened or not drilled.

There were 23 holes completed during the quarter for a total of 3,905m compared to the plan of 43 holes for 7,040m (Figure 4 and Table 1). The rig had ongoing mechanical issues during the quarter, including the harmonic balancer breaking and the sample hose getting caught on a protruding object on the rig, resulting in significant damage. The rod handler is now fitted with hydraulic feet to level the rig, which should resolve the issue of the gearbox breaking under strain. Production has improved since the work, which hopefully will continue into the next quarter.

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Figure 4. Mt Flora drill location plan for the holes completed to date at the Quarry Anomaly and Mt Flora relative to the granodiorite contact, showing the historic drill holes, assayed holes and holes with assays pending.

Nine holes, for 1,014m, were drilled at the Quarry Anomaly to test the unexpected coincident 0.1% Cu soil anomaly and conductive anomalies in VTEM and gradient array datasets. The assay results for these holes were returned during the Quarter and checked. All check samples, blanks and sample weights have been reviewed as part of an ongoing quality control process and returned results within accepted expected statistical ranges, which confirms the validity of the assay results.

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Prospect	Hole	**Type **	Easting	Northing	RL	Depth	Az	Dip	Status
Quarry Quarry Quarry Quarry Quarry Quarry Quarry Quarry Quarry Mt Flora Mt Flora Mt Flora Mt Flora Mt Flora Mt Flora Mt Flora Mt Flora Mt Flora Mt Flora Mt Flora Mt Flora Mt Flora Mt Flora	MFRC001 MFRC002 MFRC003 MFRC004 MFRC005 MFRC006 MFRC007 MFRC008 MFRC009 MFRC010 MFRC011 MFRC012 MFRC013 MFRC014 MFRC015 MFRC016 MFRC017 MFRC018 MFRC019 MFRC020 MFRC021 MFRC022 MFRC023	RC RC RC RC RC RC RC RC RC RC RC RC RC RC RC RC RC RC RC RC RC RC RC	662,722 662,746 662,708 662,779 662,776 662,698 662,861 662,941 662,777 662,185 662,189 662,304 662,374 662,362 662,502 662,554 662,495 662,726 662,729 662,659 662,280 662,349 662,392	7,571,851 7,571,842 7,571,968 7,571,969 7,572,027 7,572,014 7,571,966 7,571,970 7,571,925 7,572,106 7,572,107 7,572,086 7,572,092 7,572,091 7,572,082 7,572,079 7,572,030 7,572,089 7,572,089 7,572,090 7,572,032 7,572,029 7,572,035	222 221 230 224 236 233 223 219 222 285 285 305 300 301 278 265 263 264 265 261 283 283 274	78 79 61 121 137 76 158 206 98 46 182 212 269 284 302 249 249 15 189 309 171 189 225	288 283 266 270 270 280 270 270 250 250 250 268 265 270 270 280 270 270 270 270 270 270 264	-60 -80 -50 -50 -60 -60 -50 -50 -50 -60 -70 -50 -80 -55 -55 -55 -55 -55 -55 -55 -55 -55 -65	Unmineralised Mineralised Mineralised Mineralised Mineralised Mineralised Unmineralised Mineralised Mineralised Assays Pending Assays Pending Assays Pending Assays Pending Assays Pending Assays Pending Assays Pending Assays Pending Abandoned Assays Pending Assays Pending Assays Pending Assays Pending Assays Pending

Table 1. Drill collar details of exploration RC holes (MGA94 Zone 55).

There has been no mining or exploration for copper in the Quarry Anomaly area and the holes were planned to test the source of the copper soil anomaly in the bedrock. All holes intersected anomalous copper in the top 12 metres of the holes up to 0.71% Cu with a mean of 457 ppm Cu, which is similar to the copper values in the soil results. This confirms the results of the pXRF soil sampling and importantly validates the technique as an exploration tool for mapping copper in soil in the Bundarra project area.

The amount of visible chalcopyrite intersected in the drilling was also a surprise as the granodiorite was considered unmineralised to date (Figure 5). The assays confirm the visual logging of chalcopyrite, with bed rock copper mineralisation intersected from the surface to a depth of 160m over a strike of 300m (Table 2). Seven of the nine holes drilled into the Quarry Anomaly intersected greater than 0.2% Cu that corresponds to the visible chalcopyrite mineralisation logged (Table 2).

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Hole	Prospect	Easting	Northing	RL	From	To	Width	Cu %	**Ag g/t **	**Aug/t **
MFRC002 MFRC003 MFRC004 MFRC004 MFRC004 MFRC005 MFRC005 MFRC006 MFRC007 MFRC009 MFRC009 MFRC009	Quarry Quarry Quarry Quarry Quarry Quarry Quarry Quarry Quarry Quarry Quarry Quarry	662,746 662,708 662,779 662,779 662,779 662,776 662,776 662,698 662,861 662,777 662,777 662,777	7,571,842 7,571,968 7,571,969 7,571,969 7,571,969 7,572,027 7,572,027 7,572,014 7,571,966 7,571,925 7,571,925 7,571,925	221 230 224 224 224 236 236 233 223 222 222 222	9.0 29.0 30.0 36.0 74.0 32.0 70.0 21.0 22.0 10.0 26.0 41.0	10.0 31.0 31.0 37.0 76.0 33.0 78.0 28.0 23.0 11.0 27.0 42.0	1.0 2.0 1.0 1.0 2.0 1.0 8.0 7.0 1.0 1.0 1.0 1.0	0.30 4.56 0.25 0.28 1.30 0.51 1.53 3.85 0.28 0.71 1.45 0.79	6.40 79.45 5.70 6.70 18.10 13.50 27.77 58.16 11.20 34.90 38.90 25.00	0.01 0.07 0.00 0.01 0.03 0.02 0.04 0.10 0.01 0.02 0.00 0.02

Table 2. Drill intersections from the scout RC drilling of the Quarry Anomaly using a 0.2% Cu cut off, with a minimum width of 1 metre and including 3 metres of internal waste (MGA94 Zone 55).

Figure 5. Massive chalcopyrite sampled by the drilling at the new Quarry discovery.

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The geometries of the copper veins intersected by the drilling are like the historic copper veins mined at Mt Flora with a general northerly strike and dip of 45[o] to the east confirmed by down hole optical mapping tools (Figure 6 and Figure7). The style of the copper veins is also like Mt Flora, with narrow high grade copper veins (1.1% to 15.4% Cu, 16 to 237 Ag g/t and 0.1 to 0.4 g/t Au) surrounded by disseminated chalcopyrite veins that in the Quarry Anomaly composite to give thicknesses of up to 8m, which is narrower than at Mt Flora. However, continuity of this mineralisation in the intersections to date down dip is good, for example hole MFRC006 intersected 7m at 3.85% Cu, 58.2 g/t Ag and 0.1 g/t Au from 21.0 m and the next hole down dip of this intersection MFRC005 intersected 8m at 1.53% Cu, 27.8 g/t Ag and 0.04 g/t Au from 70.0 m (Figure 7).

The silver and gold assays are also better than expected with significant silver intersected in association with the copper. The gold grades are of particular interest as it suggests gold is present as part of the mineral system and if the system is zoned like other porphyry systems the gold grades could improve along strike and, or down dip. The limited scout drilling to date suggests that the bed rock copper mineralisation improves in grade and thickness to the north towards the granodiorite contact (Compare Figure 6 and Figure 7). The mineralisation intersected to date by the scout exploration drilling remains open at depth and along strike. These results provide confidence that follow up resource drilling is warranted at the Quarry Anomaly, particularly focussing on the northern end of the vein system closer to the granodiorite contact and in the hornfels further to the north.

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Figure 6. Drill section through the new copper lodes at The Quarry Anomaly in the Bundarra granodiorite.

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Figure 7. Drill section through the new copper lodes at The Quarry Anomaly to the north of 7571970mN that suggests that widths and copper grades of the veins are improving to the north towards the granodiorite contact.

The first line of drilling at Mt Flora has been completed during the quarter and interpreted, with assays from the samples yet to be returned (Figure 8 and Table 1). The four historically mined copper lodes have been intersected and nine new massive sulphide veins logged, taking the total number of veins mapped to thirteen that covers a true width of 220m from the hanging wall vein to the footwall vein (Figure 8). The continuity of the veins is excellent down dip forming a continuous zone of mineralisation from the surface to 230m down dip or a vertical depth of 195m. The veins are less well developed to the east, but a new vein system has been intersected in two holes to the north of the Quarry Anomaly drilling reported above that is interpreted to be the continuation of the Quarry Anomaly to the north into the hornfels. These holes could extend the strike of the Quarry Anomaly mineralisation by an additional 100m. This mineralisation remains open at depth to the east.

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Quarry Extension
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Figure 8. Drill section through the main copper lodes at Mt Flora with the location of the new holes relative to historic drilling, Mt Flora underground mine workings and the granodiorite contact.

A gradient array resistivity and induced polarization survey (GAIP) was completed over the Quorn region during the quarter (Figure 9). Additionally, a single section line of pole-dipole IP data were collected across the GAIP survey to provide an indication of depth, dip and geometry of features identified in the GAIP data (Figure 9). The survey was carried out by Planetary Geophysics, using the same equipment and techniques as used at the Mt Flora prospect earlier in the year.

The gradient array survey consisted of three setup arrays, each 1 km2 (Figure 9). The lines were run north south, spaced 100 m apart with 25 m dipoles. The survey geometry was designed based on the orientation of the mineralisation and associated conductive zones that are orthogonal to the intrusive contact at Mt Flora. The single section line of pole-dipole IP data were collected using 50 m dipoles, rather than 25 m, to maximize depth penetration. The section line was 2.9 km long, oriented north south on easting 652850 mE. This line extended 700 m to the south and 300 m to the north of the boundaries of the gradient array survey area (Figure 9).

The GAIP survey was carried out to map zones of near surface conductivity that may indicate copper and silver sulphide mineralisation like that being drilled at Mt Flora, as well as any porphyry style signatures. There were no issues with the data collection and the data were reviewed daily to check quality and have been reviewed, QAQC’d, and signed off by Fathom Geophysics.

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Figure 9. Location map of Quorn GAIP survey area and IP line (N-S) in relation to Duke targets that include mines, occurrences, drill intersections, soil anomalies and geophysical anomalies.

The GAIP data clearly maps most of the historic copper, silver and gold mineralisation at Quorn, with the mineralised historic drilling and mine workings spatially associated with a 3.3 km[2] conductive anomaly compared to a 0.6 km[2] anomaly at Mt Flora (Figure 10). There are six other similar conductive anomalies mapped by the GAIP that cover a combined 11.5 km[2] area that may host similar widths and grades of copper and silver mineralisation as intersected at Mt Flora, assuming the mineral systems are similar. The Absolon conductive anomaly, which is 4.4 km[2] , is of particular interest as the anomaly is spatially associated with four VTEM modelled plates and underground workings and is larger and more conductive than Mt Flora (Figure 10).

The results from the initial electrical geophysical survey at Quorn are very encouraging and have mapped similar anomalies to those associated with mineralisation at Mt Flora. These anomalies are all larger and stronger than those at Mt Flora, which is interpreted as being possibly due to more extensive and well mineralised sulphide vein systems than at Mt Flora.

The 2D depth inversion of the single line of IP data achieved a very good fit to the observed response (Figure 9 and Figure 11). There is a significant conductivity and chargeability anomaly just to the south of the GAIP survey area that is mapped in the near surface to 400 m depth. This anomaly is within the Bundarra pluton and just to the south of a near surface conductive anomaly in the QAIP survey. This is the largest and most depth extensive conductivity anomaly mapped at Bundarra to date and will be a high priority for follow up higher resolution geophysical surveys and potentially drill testing in the next Quarter.

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Figure 10. Quorn conductivity anomalies mapped for the gradient array IP data in relation to known historic mines. The image is of residual conductivity, with the long wavelength signal removed to improve detail.

Figure 11: Line 652850 E IP inversion results. Conductivity and Chargeability sections top and bottom panels respectively (See Figure 1 and Figure 2 for location).

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The outcomes from the electrical geophysical surveys confirm the findings at Mt Flora that GAIP can be used to quickly and cheaply map areas where new zones of copper and silver mineralisation may be discovered.

A pXRF soil survey was also completed in the same area at Quorn during the Quarter to map the copper values, and other pathfinder elements, in the soil over the electrical geophysical data. A total of 704 soil samples were collected on an 80 m by 80 m grid pattern over a slightly larger area than the area where the electrical geophysical data were collected (Figure 9 and Figure 12). The soil samples were analysed with the same pXRF machine and methodology as was used at Mt Flora as described above.

Figure 12. Location map for Quorn soil samples showing pXRF copper soil values compared to VTEM targets and gradient array conductive anomalies.

The copper values from the Quorn survey range from 1 – 4,661 ppm Cu, the median was 82 ppm Cu and the mean value is 152 ppm Cu. The copper values are log normally distributed and have a standard deviation of 289 ppm Cu. Copper data from the pXRF soil survey using the same cut off value of 140 ppm that maps the historic and outcropping chalcopyrite sulphide mineralisation at Mt Flora maps three large anomalous areas in the Quorn survey area, with one around the Quorn prospect that is 1.3 km[2] compared to the Mt Flora copper soil anomaly which is 0.53 km[2] (Figure 13). A second area has been mapped associated with the Absolon workings that is 0.33 km[2] . A third large area is mapped to the south of Absolon that is not associated with known historic workings that is 0.64 km[2] (Figure 13). There are other spot anomalies that are of a lower priority for follow-up. The Quorn and Absolon soil anomaly areas contain eleven VTEM conductive anomalies and are spatially associated with the conductive anomalies from the gradient array survey. The third soil anomaly area is not associated with any VTEM anomalies.

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Near surface massive sulphide veins at Mt Flora are associated with coincident copper soil and conductive anomalies as reported previously. Consequently, the copper soil anomaly grid and gradient array grids from the Quorn survey were combined to map similar areas of coincident copper in soil and near surface conductive zones (Figure 13). These areas, if like Mt Flora, are most likely to host near surface copper bearing sulphide veins (Figure 13). There are five coincident copper and conductive anomaly areas mapped in the Quorn region (Figure 13). The Quorn prospect is the largest and most continuous anomalous area, is very similar to Mt Flora and is coincident with historic drilling that intersected 30.0m at 0.7 % Cu and 12.2 g/t Ag from 16 m in MFP1, 30.0m at 0.5 % Cu and 14.3 g/t Ag from 10 m in MFP2 and 6.0m at 1.4 % Cu and 38 g/t Ag from 27 m in D002, confirming the coincident anomalies at Quorn map the areas where significant widths and grades of bed rock copper mineralisation can be found (Figure 13). The Quorn and Absolon anomalies are the largest and will be the highest priority for follow up exploration focussing on collecting subsurface conductive data to map the depth and geometry of the potential copper bearing vein systems similar to those being drilled at Mt Flora.

Figure 13. Left: copper soil grid at Quorn compared to VTEM targets that maps the major anomalous areas defined by the 140 ppm copper contour. Right: combined copper soil and gradient array conductivity grid at Quorn compared to VTEM targets and drill holes that intersected bed rock copper mineralisation.

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Figure 14. Drone picture of location of Quorn and Absolon relative to Mt Flora showing access and topography

The next stage of exploration designed to provide targets for drilling in the Quorn area (Figure 14) will include:

• Ground truth all targets and consider the geological context, but not disregard any strong conductors based on geological interpretations.

• Carry out ground 3D IP and ground EM over priority targets to better define the location of conductors to define preliminary drill targets.

• Drill diamond core into selected targets to collect geological data to assess the geochemistry and petrophysics of the conductor host rocks and any mineralisation intersected.

• Use the geophysical data to plan pattern resource drilling.

The next phase of exploration at Quorn is being planned to start in mid to late January 2021 and will take a month to complete. Diamond drilling to collect geological information to better understand these anomalies is expected to start soon after by March 2021, depending on drill rig availability.

Data compilation of all historic data over the Duania and Waitara tenement areas has been completed and is under review. 3D geological mapping is underway to help planning of the first phase of exploration when the tenements are granted.

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Prairie Creek Project, (Duke 90%)

The Prairie Creek Project is located 120 km southwest of Gladstone and 25 km southwest of Biloela, central Queensland, in the EPM 26852 tenement area. This portion of Central Queensland is prospective for porphyry related gold, copper and molybdenum mineralisation like the Cracow epithermal gold deposit 80 km to the south.

The Prairie Creek prospect is associated with a NE trending elevated gold geochemical soil anomaly (0.5 – 5.0 g/t Au) extending over a strike length of 1.6 km and with a width of 200 m. A zone of outcropping epithermal veining associated with visible gold is spatially associated with the soil anomaly that is over 85 m wide and striking over 450 m with the southern end drilled, but the extent and continuity beyond this outcrop not tested. Only the southernmost localised geochemical high soil anomaly was drilled at Prairie Creek, which resulted in several promising intersections of gold (see www.duke-exploration.com.au for project details).

Data compilation of all historic data over the tenement area has been completed that was used to constrain 3D geological mapping, including 3D mapping of the local geology and vein geometries and gold distribution. Three holes have been planned to intersect the known gold bearing epithermal veins to gain a better understanding of the vein geometries, geochemical signatures and geological controls on the gold mineralisation. Land access negotiations for the planned diamond drilling at Prairie Creek have commenced with the aim of finalising by the end of January 2021.

Red Hill, (Duke 100%)

The Red Hill Project is located approximately 70 km north north-west of Canberra, north and east of Yass in New South Wales in EL 8568. EL 8568 covers an area of approximately 180 km[2] within the prospective Lachlan Fold Belt, with Cu, Pb, Zn, Au and Ag mineralisation in the project area associated with an interpreted porphyry mineral system. The Lachlan Fold Belt hosts several porphyry Cu-Au deposits such as Cadia, Cowal and Northparkes and the recently discovered Boda porphyry system, providing the target style and scale for exploration at Red Hill.

The Red Hill Project was identified using mineral prospectivity analysis for porphyry copper-gold style of mineralisation over the entire Lachlan Fold Belt (see www.duke-exploration.com.au for project details). Importantly, several circular and sub-circular magnetic anomalies have been mapped that are spatially associated with the mineralisation discovered to date. These have signatures which may represent buried porphyry intrusions and could be the source of the metals mined in historic local workings.

Data compilation of all historic data over the Red Hill tenement area and 3D geological mapping has been completed. The data and 3D geology, including 3D magnetic inversion model, have been used to plan the first phase of exploration, which will focus on determining the geology and ages of the buried intrusions that are interpreted to be sourcing the surface epithermal and skarn copper and gold mineralisation mined and explored historically. Drilling is planned to sample the geological targets once travel restriction are eased.

Duke Exploration Limited

www.duke-exploration.com.au

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Emmerson JV tenements NSW (Duke 10%)

Duke has an interest in four exploration licences within the Lachlan Fold Belt (LFB) of New South Wales operated by Lachlan Resources Pty Ltd, a wholly owned subsidiary of ASX listed Emmerson Resources (ASX:ERM). The four tenements that form the joint venture are Wellington (EL 8463 – 390 km[2] ); Fifield (EL8464 – 66 km[2] ); Temora (EL 8652 – 178 km[2] ); and Kiola (EL8590 – 203 km[2] ). This joint venture provides Duke with exposure to porphyry Cu-Au potential over a larger area of the highly mineralised Lachlan Fold Belt, as well as management of these assets by the highly credentialed Emmerson Resources management and exploration team (see www.dukeexploration.com.au for project details).

Emmerson continues to explore the JV tenements with no significant results reported during the quarter.

Competent person statement

The information in the ASX announcement is based on information compiled by Dr Gregor Partington, who is a Member of The Australasian Institute of Mining and Metallurgy and a Member of the Australian Institute of Geoscientists. Dr Gregor Partington 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 Exploration Results, Mineral Resources and Ore Reserves’ (the JORC Code).

Dr Gregor Partington is engaged by Duke Exploration as Operations Manager and consents to the inclusion of the information in the ASX announcement in the form and context in which it appears.

Duke Exploration Limited www.duke-exploration.com.au

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Schedule of Mining Tenements and Beneficial Interests

Held as at the end of the December 2020 Quarter

Project / Location	Country	Tenement	Percentage held /
			earning
Bundarra – Central	Australia	EPM 26499, EPMA 27474,	100%
Queensland		EPMA 27609
Prairie Creek – Central	Australia	EPM 26852	91%
Queensland
Red Hill – NSW	Australia	EL 8568	100%
Emmerson JV – NSW	Australia	EL 8463, EL 8652	5%
		EL8590, EL8464	10%

Schedule of Mining Tenements and Beneficial Interests

Acquired during the June 2016 Quarter

Project / Location	Country	Tenement	Date Acquired
N/A

Schedule of Mining Tenements and Beneficial Interests

Disposed of during the June 2016 Quarter

Project / Location	Country	Tenement	Withdrawal Date
NA

Duke Exploration Limited

www.duke-exploration.com.au