VERITY RESOURCES LIMITED — Capital/Financing Update 2021

Jul 13, 2021

ASX Code: Si6

ASX Announcement

14 July 2021

MAIBELE NORTH SURVEY DELIVERS NUMEROUS & SIGNIFICANT UNTESTED TARGETS

Highlights

• 27-line AMT Survey completed across Maibele North Ni-Cu-Co-PGE Project, Botswana

• Survey accurately mapped existing sulphide mineralisation

• Numerous untested sulphide targets identified below and along strike of the current resource

Si6 Metals Limited ( ASX: Si6 or the Company ) is pleased to provide an update on the recently completed Audio-frequency Magnetotellurics (AMT) survey conducted at its Maibele North Project in Botswana. Si6 is exploring for base and precious metals within the Limpopo Mobile Belt in Botswana, a district known for hosting major nickel and copper producing operations.

The Company’s Botswana portfolio contains an advanced Ni-Cu-Co-PGE resource at Maibele North and drilled high-grade Cu-Ag discoveries at Airstrip and Dibete. Si6 is currently undertaking a multi-faceted exploration campaign, employing a variety of ground geophysical techniques designed to target deeper mineralisation for follow-up drill testing.

Si6 Executive Chairman, Patrick Holywell stated , “Our Botswana program is continuing in its success with our latest AMT Survey not only accurately mapping the existing sulphide mineralisation, but identifying numerous untested sulphide targets both below and along strike of our current resource. This follows our recently announced identification of two 2.5km anomalies identified at Dibete and Airstrip.

“Through our targeted approach, which utilises various ground geophysical techniques to target deeper mineralisation, we are really starting to gain better understanding of what we are dealing with and in turn, plan our future drilling programs in more detail. We anticipate following up the AMT targets with a combination of RC and diamond drilling, in addition to planning for further AMT surveys to the east and west of the current survey area.”

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Figure 1: Si6 tenement portfolio in Eastern Botswana

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ASX Announcement

MAIBELE PROJECT

AMT is an electromagnetic geophysical technique that measures local magnetic and electric fields which are used to determine in-phase and out of phase ground resistivity values. AMT can use artificial sources or natural sources, such as were employed in this survey. A previous trial line of AMT east of Maibele North detected the Ni-sulphide mineralisation intersected at around 400m vertical depth in drill hole MARD0094.

The aim of the AMT survey completed over Maibele North was to search for extensions of mineralisation below and along strike of the current Maibele North resource estimate envelope. Evidence of deeper mineralisation at Maibele North has previously been confirmed by Si6 with two adjacent holes on the Eastern section of the prospect, drill holes MADD0153 and MARD0094, where nickel sulphides were intersected in both holes with assay results below (see ASX Announcement 19 March 2021). Almost no drilling to date has been undertaken beneath the main Maibele North mineralisation envelope.

MADD0153 (2021)

• 0.42m @ 0.12% Ni, 0.08% Cu, 96ppm Co from 444m

• 0.10m @ 0.32% Ni, 0.24% Cu, 908ppm Co from 445.05m

MARD094 (2014)

• 6.82m @ 0.75% Ni, 0.25% Cu, 485 ppm Co, 0.06g/t Au, 0.43g/t Pd from 460m Including:

• 1.25m @ 2.05% Ni, 0.53% Cu, 1,272ppm Co, 0.07g/t Au, 1.05 g/t Pd from 461.50m

• 0.10m @ 1.64% Ni, 1.67% Cu, 1,040 ppm Co, 0.06g/t Au, 1.04g/t Pd from 462.9m

• 0.21m @ 2.27% Ni, 0.58% Cu, 1,356 ppm Co, 0.10g/t Au, 1.31g/t Pd from 463.65m

• 0.19m @ 1.62% Ni, 0.30% Cu, 1,046 ppm Co, 0.05g/t Au, 1.24g/t Pd from 466.63m

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ASX Announcement

AMT RESULTS

Maibele North Main

The Maibele North orebody contains a multi-commodity Ni-Cu-Co-PGE Mineral Resource Estimate (MRE) of 2.38Mt which is open along strike and at depth (for MRE details see Supplementary Appendix). The AMT survey covered the entire resource area as well strike extensions and has succeeded in mapping the known sulphide mineralisation, as well as detecting several significant zones of anomalism beneath the known orebody that remain untested by drilling (see Figure 2 and 3). The deeper, untested zones occur as distinct anomalies and generally lie beneath the thicker zones of mineralisation within the orebody. For example, the most prominent AMT anomaly beneath the orebody lies below the thickest massive sulphide occurrences in hole MADD0057, where over 15m of massive sulphides have been intersected (see Figure 3).

The results of the survey over Maibele North provide great encouragement for the effectiveness of the AMT to detect further mineralisation and potentially extend the orebody deeper below the current resource envelope. Historic drilling as part of the MRE in 2014 is limited to above 250m vertical depth.

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Line 26
Line 27
MADD0153
Line 11
Line 10
MARD0094
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Figure 2: Depth slice of AMT results for Maibele North (and part of Airstrip) at 500m vertical depth showing the two holes (MARD0094 and MADD0153) that intersected Ni sulphides at ~400m depth. Also note the location of the Maibele MRE envelope as generated by MSA which extends to ~250m vertical depth. The anomalies coincident with the MRE envelope in the figure lie a further 250m below it.

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AMT AMT
Line 10 Line 11
2015 MRE Block Model
Untested by drilling
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Figure 3: Cross-sections of AMT Line 10 and 11 through the thickest sulphide zone in the Maibele North Resource that shows the AMT response coincident with the MSA MRE block model and demonstrates the effectiveness of the technique in mapping the Ni-sulphide occurrence. Note the prominent, deeper zone on Line 10 that has never been drill tested.

MARD0094-0153 (Maibele East)

The AMT has detected a large, strong anomaly corresponding to the mineralisation intersected in MARD0094 and has confirmed that the narrow Ni-sulphide mineralisation intersected in MADD0153 lies on the periphery of this very prominent zone (Figures 2 & 4). The AMT anomaly in this area is located south of MADD0153 and the strength of the response in the area of the MARD0094 mineralisation is modest compared to the very strong response extending to the west and south of these two drill holes. A further strong response is located on the extreme eastern edge of the survey and will require further AMT lines to fully define.

The AMT has highlighted the significant potential to discover further Ni-sulphide mineralisation at depth and down-plunge of the Maibele North resource in the area of MARD0094 and MADD0153.

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ASX Announcement

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AMT
AMT MADD0153
Line 26 0.42m @ 0.12% Ni, 0.08% Cu Line 27
And
0.10m @ 0.32% Ni, 0.24% Cu
MARD0094
6.82m @ 0.75% Ni, 0.25% Cu
Untested by drilling
Untested by drilling
----- End of picture text -----

Figure 4: Cross-section of AMT Line 26 through area of deep mineralisation discovered in MARD0094. Recent hole, MADD0153, is projected onto the section from the east and only clipped the edge of the modelled anomaly. The AMT response extends for over 300m in strike, mostly to the west of MARD0094 and is untested by drilling.

Airstrip

The AMT survey extended to the southwest to cover a portion of the Airstrip target area. The results showed a small but strong response coincident with, and beneath, some of the shallow high-grade CuAg mineralisation intersected in previous drilling. The results are encouraging and indicate a potential deep source of mineralisation beneath the shallow high grades. Further AMT lines are required in this area to resolve accurate drill targets.

SUMMARY

The AMT survey has been highly successful in defining a number of very prospective drill targets below and along strike of the Maibele North Ni-sulphide resource. Si6 has high confidence that these targets are likely to represent further sulphide mineralisation given the technique’s effectiveness in mapping known areas of mineralisation. The survey has highlighted deep anomalies beneath some of the thickest sections of the Maibele North resource as well as confirming the near miss of MADD0153 in relation to a very large down-plunge anomaly to the east of the main resource. Further strong anomalies are indicated on the edge of the survey highlighting the need for additional AMT surveying in the area.

FUTURE WORK PROGRAMS

The AMT has defined a number of drill targets prospective for the discovery of additional Ni-sulphide mineralisation. Quotes from reliable in-country drill companies are being sought, with a view to following up the AMT targets with a combination of RC and diamond drilling. Si6 is also reviewing the results with a view to planning further AMT surveys to the east and west of the current survey and possibly elsewhere across the Company’s priority targets.

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ASX Announcement

Appendix 1 - JORC Code, 2012 Edition – Table 1

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.	• n/a
Drilling techniques	- 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).	• n/a
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.	• n/a
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.	• n/a

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ASX Announcement

CRITERIA	JORC Code Explanation	Commentary
Sub-sampling techniques and sample preparation	- 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, quality and 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.	• n/a
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, handheld XRF instruments, etc, the parameters used in determining the analysis including instrument make and model, reading times, calibrations factors applied and their derivation, etc. - Nature of quality control procedures adopted (eg standards, blanks, duplicates, external laboratory checks) and whether acceptable levels of accuracy (ie lack of bias) and precision have been established.	• n/a
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.	• The Competent Person has reviewed the QAQC data and assay results
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.	• A handheld GPS was used to locate each sample point. Accuracy of +/- 5m is considered reasonable • The grid system for the project WGS 84 / UTM zone 35S
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.	• AMT survey completed on 50 m line spacing, 50 m dipole spacing and a vector array configuration. • 32kHz high frequency and 1024 kHz high frequence band. • The spacing is deemed appropriate for testing the mineralisation along strike.

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CRITERIA	JORC Code Explanation	Commentary
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.	• Surveys were completed perpendicular over geological strike.
Sample security	- The measures taken to ensure sample security.	• n/a
Audits or reviews	- The results of any audits or reviews of sampling techniques and data.	• The data were examined by the Competent person, Mr Steve Groves of Sydney in Australia and considered appropriate.

Section 2 Reporting of Exploration Results

(Criteria in this section apply to all succeeding sections.)

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 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 results reported in this announcement are located in PL110/94 which is a granted Exploration Licence held by African Metals Limited, a 100% owned subsidiary of Botswana Metals Limited. • PL110/94 is subject to a Joint Venture agreement with BCL Limited (currently in liquidation). • Due to the liquidation, PL110/94 is in suspension with approximately 18 months of term remaining and is in good standing. Si6 are allowed to continue exploration on PL110/94 during the suspension period.
Exploration done by other parties	•Acknowledgment and appraisal of exploration by other parties.	• Interpretations and conclusions in this announcement refer in part to results generated by historic exploration work conducted by Roan Selection Trust, Falconbridge, Cardia Mining and Botswana Metals. • Botswana Metals considers all previous exploration work to have been undertaken to an appropriate professional standard.
Geology	•Deposit type, geological setting and style of mineralisation.	• The Maibele Prospect is hosted within the Magogaphate Shear Zone - a major geological structural feature, generally considered to mark the boundary between the Archaean aged (>2.5 billion year old) Zimbabwean Craton and the Limpopo Belt or Limpopo Mobile Zone (LMZ). . The nickel-copper deposits of Selebi Phikwe lie within the northern part of the Central Zone of the Limpopo Mobile Belt, whilst the nickel copper deposits of Phoenix, Selkirk and Tekwane lie in the Zimbabwean Craton. The Central Zone of the LMZ comprises variably deformed banded gneisses and granitic gneisses, infolded amphibolites and ultramafic intrusions that that have the potential to host Ni-Cu sulphide mineralization. Cu-Ag

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ASX Announcement

CRITERIA	JORC Code Explanation	Commentary
		mineralization at Dibete and Airstrip copper is spatially associated with dolerite intrusion
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: o easting and northing of the drill hole collar o elevation or RL (Reduced Level – elevation above sea level in metres) of the drill hole collar o dip and azimuth of the hole o down hole length and interception depth o hole length. •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.	• n/a
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.	• n/a
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’).	• n/a
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.	• Plan view and/or cross section maps of the reported results are included in this announcement.

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CRITERIA	JORC Code Explanation	Commentary
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.	• The results in this announcement are interpreted to lie within the plane of a mineralized trend that has been partially tested by pervious drilling.
Other substantive exploration data	•Other exploration data, if meaningful and material, should be reported including (but not limited to): geological observations; geophysical survey results; geochemical survey results; bulk samples – size and method of treatment; metallurgical test results; bulk density, groundwater, geotechnical and rock characteristics; potential deleterious or contaminating substances.	• There is no other material exploration considered material to the reported mineral estimate
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.	• Should further geophysical surveying prove positive, follow up drilling would be required to further test the mineralisation.

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Supplementary Information Appendix

Maibele Base Metals Project, Botswana, Resource Information

An initial JORC-compliant (2012) Inferred Resource was calculated at Maibele North by MSA South Africa in 2015 (see Table 1) using a 0.30% Nickel cut-off grade. See the ASX announcement on 28 April 2015 “Maiden Inferred Resource for Maibele North” for further information.

		Maibele North Resource	Maibele North Resource	Maibele North Resource	Maibele North Resource
Tonnes (Mt)	Ni (%)	Cu (%)	Pt (g/t)	Pd (g/t)	Rh (g/t)	Ru (g/t)	Au (g/t)
2.38	0.72	0.21	0.08	0.36	0.04	0.05	0.10

Table 1 : Inferred Resource calculated by MSA South Africa in 2015 to JORC 2012 compliance

Monument Gold Project, Western Australia, Resource Information

An initial JORC-compliant (2012) Inferred Resource was calculated at Korong by Mining Plus in 2018 (see Table 2) using a 0.5g/t cut-off grade for Korong and 2g/t cut-off grade for Korong Underground. See the ASX announcement on 25 August 2020 “Si6 Secures Exclusive Option to Acquire Western Australian Gold Project” for further information.

further information.	further information.	further information.	further information.
	Korong Resource
Deposit	Tonnes	Grade (g/t)	Au Ounces
Korong	650,000	1.6	33,000
Korong UG	205,000	2.5	17,000
Total Resource	855,000	1.8	50,000

Table 2 : Inferred Resource calculated by Mining Plus in 2018 to JORC 2012 compliance

About Si6 Metals Ltd

Si6 Metals is an exploration company operating in Southern Africa specifically targeting projects containing “battery or new world” metals to capitalise on the rising interest in the sector due to recent global technology advances and increasing demand for these commodities.

Si6 Metals recently entered into an option agreement with DiscovEx Resources Ltd (ASX:DCX) to acquire the Monument Gold Project in Western Australia. The Project lies in the world class Laverton Tectonic Zone, which to date has produced more than 30 million ounces of gold and yielded some of Australia’s best-known gold mines.

Competent Persons Statement

The information in this report that relates to Exploration Targets and Exploration Results is based on historical exploration information compiled by Mr Steven Groves, who is a Competent Person and a Member of the Australian Institute of Geoscientists. Mr Groves is a Director of Si6 Metals Limited. Mr Groves 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 the reporting of Exploration Results, Mineral Resources and Ore Reserves”. Mr Groves consents to the inclusion in the report of the matters based on his information in the form and context in which it appears.

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ASX Announcement

Disclaimer

In relying on the above mentioned ASX announcement and pursuant to ASX Listing Rule 5.23.2, the Company confirms that it is not aware of any new information or data that materially affects the information included in the above announcement. No exploration data or results are included in this document that have not previously been released publicly. The source of all data or results have been referenced.

Forward-Looking Statements

This document may include forward-looking statements. Forward-looking statements include, but are not limited to, statements concerning Si6’s mineral properties, planned exploration program(s) and other statements that are not historical facts. When used in this document, the words such as "could," "plan," "estimate," "expect," "intend," "may”, "potential," "should," and similar expressions are forward looking statements. All of such statements are subject to certain risks and uncertainties, many of which are difficult to predict and generally beyond the control of the Company, that could cause actual results to differ materially from those expressed in, or implied or projected by, the forward-looking information and statements. Our audience is cautioned not to place undue reliance on these forward-looking statements that speak only as of the date hereof, and we do not undertake any obligation to revise and disseminate forward-looking statements to reflect events or circumstances after the date hereof, or to reflect the occurrence of or non-occurrence of any events.

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ASX Announcement

ASX CODE: Si6

This announcement has been approved for release by the Executive Chairman of Si6 Metals Ltd, Mr Patrick Holywell.

For further information please contact:

Patrick Holywell Executive Chairman M: +61 (0)401 407 357 ph@si6metals.com

Victoria Humphries Investor Relations M: +61 (0)431 151 676 victoria@nwrcommunications.com.au

DIRECTORS

Patrick Holywell Executive Chairman

Steve Groves Technical Director

Joshua Letcher Non-Executive Director

Mauro Piccini Company Secretary

CONTACT

Suite 2, Level 1 1 Altona Street West Perth WA Australia 6005 +61 (0)8 6559 1792

info@si6metals.com si6metals.com

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