UNION STAR METALS LTD — Capital/Financing Update 2021

May 2, 2021

ASX ANNOUNCEMENT 3 May 2021

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Tanami Project

REE opportunity to be evaluated by REE expert

Highlights

• Historical results of Rare Earth Elements (REE) at the Killi Killi Hills prospect from the early 2010s by former owner Orion Metals to be reviewed and followed up;

• Exploration team boosted with the addition of consultant geologist, Robin Wilson, former Exploration Manager of Northern Minerals Limited, leading expert on Heavy Rare Earths (HRE) exploration;

• Potential recognised for unconformity-related REE deposits at the Tanami project;

• Preparation for the upcoming airborne survey targeting gold and REE; and

• PVW personnel are currently attending a heritage survey with representatives of traditional owners.

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Figure 1: PVW Tanami Project location in relation to known REE projects.

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Exploration Team enhancements

The company is pleased to announce the addition of two exploration geologists to the team led by Karl Weber, Exploration Manager.

Mr Robin Wilson has held senior exploration positions in several exploration and mining companies, including Northern Minerals Limited, Polaris Metals, Tanganyika Gold, Troy Resources and CRA Exploration. During the 30 years of his involvement in mineral exploration, Mr Wilson has worked on gold, nickel, phosphate, copper, REE and uranium projects throughout Australia and Africa. Between 2006 and 2021 he led the Northern Minerals Limited exploration team that discovered the Browns Range REE deposits, which have been developed and delivered HRE carbonate to the world.

Mr Finn Hunter has also joined the exploration team. He is a geologist with 3 years’ experience and a strong background in geophysics. Working previously with IGO focussed on exploring in remote areas for various commodities Finn will be a valuable team member to advance the projects.

Rare Earths

Rare earths are elements vital to the modern technology age. The 17 elements grouped as rare earths are found in permanent magnets, fibre optics, mobile phones and wind turbines — and that’s just to name a handful of applications.

Rare earth deposits are largely found as either Light Rare Earths (LRE) or HRE deposits of which over 98% are LRE projects. The leading HRE project outside of China is located approximately 100km north of our project area, being the Browns Range Project owned and operated by Northern Minerals Limited. In the past 9 months, the price of the key heavy rare earth elements, dysprosium and terbium has increased by over 50%.

PVW Resources has a number of key personnel who have played a major role in the development of rare earth projects including Mr George Bauk, Mr Colin McCavana and Mr Robin Wilson.

Rare Earth Opportunity - Tanami

During the early 2010s, Orion Metals (ORM) reported significant HRE assay results from rock chip samples taken at the Killi Killi Hills prospect located on PVW Resources tenement E80/4029 (see ORM ASX release dated 15 September 2010, “High-grade heavy rare earth element (HREE), uranium and gold discovery” and ORM ASX release dated 9 July 2012, “Killi Killi REE and Gold Project Rock chip samples final results received”). The Killi Killi Hills prospect is located at the regional unconformity between younger Gardiner Sandstone and older Killi Killi basement rocks. This geological setting is analogous to that of the HRE deposits at the Browns Range Project owned by Northern Minerals Limited and in particular the Dazzler deposit.

ORM completed RC drilling at the REE prospect in 2010 and 2012 and reported that the drilling in 2010 returned narrow intersections of anomalous REE (see ORM ASX release dated 23 December 2010, “Killi Killi (WA) drilling results confirm rare earth element (REE) and gold mineralisation”). ORM also reported the principal REE bearing minerals at Killi Killi to be xenotime and florencite, which is also similar to the Browns Range HRE deposits. Drilling results from the program completed in 2012 were disappointing with ORM reporting none of the REE anomalism indicated by the surface sampling being repeated in the drill samples (see ORM ASX release dated 20 September 2012, “Killi Killi REE and Gold project drilling results received”).

This information was prepared and first disclosed by ORM under the JORC Code 2004. It has not been updated since to comply with the JORC Code 2012 on the basis that the information has not materially changed since it was last reported.

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PVW Resources intends to further investigate the REE potential of the Killi Killi Hills prospect, including a full review of the ORM exploration results, with a focus on targeting unconformity-related REE deposits. This work will be run in conjunction with the gold exploration program on the Tanami project, starting with an airborne magnetics and radiometrics survey to commence in the next quarter.

Geophysics Update

In preparation for the planned detailed airborne survey, PVW has consulted with Southern Geoscience Consultants to undertake a review of current remote sensing and geophysical data. The process is nearing completion and will aid in interpretation and targeting following magnetic data acquisition.

Processing of available magnetics, gravity and satellite data has already assisted geological understanding and target development.

Depth to Basement analyses of a trial area to investigate application of depth to magnetic basement (or depth to magnetic source) has been successfully utilised. Careful processing taking into account weak magnetisation of the sediments and non-uniformity of the granites has allowed for further refinement to the current interpretation. Lack of magnetic drainage in the data has also facilitated the benefit to be gained from analysis of low amplitude magnetic data.

Processing has resolved depths to a possible buried granite, proximal to the Killi Killi West gold prospect. Parts of this body are estimated at less than 100m depth.

Other contacts through the sedimentary areas are also interpreted as possible approximations for coverbedrock, or weakly magnetic layers within or between the sediments. These observations will be evaluated following the detailed magnetic survey and during future field campaigns.

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Figure 2: Regional greyscale magnetic image (1VD) with depth to magnetic source image overlay. Note the interpreted granite extending beneath sediments north of the Lewis Granite margin visible in magnetics, and proximity of the extended granite to the Killi Killi West gold prospect. The source of mineralisation at Killi Killi West could be intrusion related.

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Competent Person’s Statement

The information in this document relating to gold exploration activities is based on information compiled by Mr Karl Weber, a professional geologist with over 25 years’ experience in minerals geology including senior management, consulting, exploration, resource estimation, and development. Mr Weber completed a Bachelor of Science with Honours at Curtin University in 1994; is a member of the Australian Institute of Geoscientists (Member No. 6422) and thus holds the relevant qualifications and professional association membership required by the ASX, JORC and VALMIN to qualify as a Competent Person as defined in the JORC Code. Mr Weber is a full-time employee of PVW Resources. Mr Weber 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’. Mr Weber consents to the inclusion in this document of the matters based on his information in the form and context in which it appears.

The information in this documents that relates to REE exploration is based on information compiled by Mr Robin Wilson who is a Member of the Australasian Institute of Mining and Metallurgy. Mr Wilson is a consultant to PVW Resources and has sufficient experience 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). Mr Wilson consents to the inclusion of this information in the form and context in which it appears.

Authorisation

This announcement has been authorised for release by the Board of PVW Resources Limited.

For further information, please contact:

George Bauk Joe Graziano Executive Director Company Secretary +61 408 931 746 +61 411 649 551

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About PVW Resources:

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Leonora Project – 100% 195km[2]

The company owns 100% Jungle Well and the Brilliant Well projects both with immediate follow up targets. Jungle Well has a 26,800oz Au inferred resource JORC12 compliant, the open pit was mined previously in 1996 during a low gold price. Drilling plans to explore the extension of the existing resource and along strike following up an intersection of 13.2m @ 1.74 g/t which was drilled exploring for Nickel.

The Brilliant Well Project is south of the Bundarra Gold Project (owned by Northern Star) with gold intersections from various drilling programs in 2011 and by PVW in 2019 which included 4m @ 4.09 g/t and 10m @ 3.36 g/t in in historical 2011 drilling.

All Leonora Project exploration drilling results refer to ASX:PVW, Thred Prospectus Appendix A - Independent Geologists Report, Appendix 1.

Jungle Well Deposit November 2019 Maiden Inferred Mineral Resource Estimate - (0.5g/t Au Cut off)

	(0.5g/t Au Cut-off)
Type	Tonnage Au Au kt g/t Ounces
LG Stockpile Oxide Transitional Fresh	7 1.3 300 210 1.0 6,800 309 1.1 10,600 208 1.4 9,200
Total	735 1.1 26,800

Note:

Refer to the Thred Ltd website Prospectus – Appendix A - Independent Geologists Report, 2.4 Mineral Resource Estimation – Jungle Well Deposit. The Company confirms that all material assumptions and technical parameters underpinning the estimates continue to apply and have not materially changed at the time of publication.

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Tanami Project – 100% ~1,100km[2]

The Tanami Region hosts the large Callie Project being mined by Newmont. Limited exploration has been undertaken in the Tanami and many view this area as highly prospective and very underexplored. Over the past 3 years the company has put together a 1,100km[2 ] contiguous land package with solid geological information and historical drill results that require immediate follow up. Previous exploration in the early 2010’s resulted in 12m @ 2.94 g/t from surface and 5m @ 6.99 g/t also from surface. All Tanami Project exploration drilling results refer to ASX:PVW, Thred Prospectus Appendix A - Independent Geologists Report, Appendix 1.

Kalgoorlie Project – 100% 96km[2]

Right in and amongst the heartland of gold in Western Australia, PVW has a 96km2 tenement package within close proximity to many operating gold processing plants. Near term drill targets include: Regional Bedrock Targets including previous drill results including 6m @ 2.61 g/t and 4m @ 2.39 g/t and new conceptual targets. Significant drill results in granites and within greenstones. Paleochannel targets with possible links to bedrock mineralisation. All Kalgoorlie Project exploration drilling results refer to ASX:PVW, Thred Prospectus Appendix A - Independent Geologists Report, Appendix 1.

Right place for the right times for the right commodity

Western Australia is one of the leading investment jurisdictions according to the recent Fraser Institute rankings. During the challenging times we live in during COVID-19 all our projects and people are in Western Australia with excellent access to the projects. Finally, Western Australia is a global leader in gold production and gold exploration.

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