VERITY RESOURCES LIMITED — Interim / Quarterly Report 2021

Oct 28, 2021

ASX Code: Si6

ASX Announcement

29 October 2021

September 2021 Quarterly Report

Si6 Metals Limited (ASX: “ Si6 ”, or “the Company ”) wishes to provide shareholders with its quarterly report for the three-month period ending 30 September 2021.

Highlights

• Botswana (Maibele Project, Ni-Cu-Co-PGE)

• 33-line AMT survey commenced across Dibete, Airstrip and Maibele North Projects.

  • Final phase of AMT to assist with generating targets in areas of strong IP responses at Dibete and Airstrip and close off anomalies at Maibele North

  • Recent surveys have shown that AMT accurately maps existing sulphide mineralisation

  • Drill program preparations to test resultant targets is underway

• Results delivered from completed 27-line AMT Survey across Maibele North

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

• Western Australia (Monument Gold Project)

• Mineral Resource Estimate of 154koz for Monument Gold Project declared comprising:

  • 3.0Mt @ 1.4g/t for 139koz’s Au at Korong deposit

  • 0.2Mt @ 2.1g/t for 15koz’s Au at Waihi deposit

• Mineralized shoots at Korong and Waihi remain open in all directions with significant scope for additional resources from further drilling

• Preparations for an AC program targeting regional bulk-tonnage, syenitehosted gold mineralization were completed

• 5,000m AC drilling commenced post quarter with assay results anticipated in 3-4 weeks

• Completion of acquisition of 100% of shares in Monument Exploration Pty Ltd

• Corporate

• Cash position of $3.8 million at 30 September 2021

page 1

ASX Announcement

Botswanan Portfolio

AMT surveys at Dibete, Airstrip and Maibele North projects

Si6 continued to progress exploration across the Company’s priority Dibete, Airstrip and Maibele North projects throughout the quarter. 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 high-grade Cu-Ag discoveries at Airstrip and Dibete. Si6 is undertaking a multi-faceted exploration campaign that employs various ground geophysical techniques designed to target deeper mineralization for follow-up drill testing.

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Si6 tenement portfolio in Eastern Botswana

To date, the Company has undertaken Gradient Array Induced Polarisation (GAIP) and Pole Dipole Induced Polarisation (PDIP) at Airstrip and Dibete and Audio Frequency Magnetotellurics (AMT) surveying across the Maibele North orebody. The AMT survey at Maibele North successfully mapped known sulphide mineralization and detected significant responses down to a vertical depth of around 1km. The Induced Polarisation surveys at Airstrip and Dibete successfully identified a number of promising targets to a depth of around 120m, but the interpreted models for mineralization at the prospects indicates that potential mineralized zones might extend for some way beneath this.

Due to the effectiveness and depth penetration of the AMT technique, a final phase has been undertaken to assist with drill targeting. The phase, which commenced during the quarter, includes a further ~33-line AMT surveys across the three projects to generate deep targets in the areas of strong IP response at Dibete and Airstrip and close off existing open anomalies at Maibele North.

page 2

ASX Announcement

Maibele Project

Si6 announced the results of its completed AMT survey across the Maibele North prospect in July (see ASX Announcement 14/07/2021). The Maibele North orebody contains a multi-commodity Ni-Cu-CoPGE resource of 2.38Mt, open along strike and at depth. The AMT survey covered the entire resource area and strike extensions. The survey successfully mapped known sulphide mineralization and detected several significant zones of anomalism beneath the known orebody that remain untested by drilling (Figure 1 & 2). Of particular note, were strong responses that occurred on the edge of the survey to the immediate northwest of the resource and northeast of recent hole MADD0153 that intersected nickel sulphides at depth (see ASX Announcement 19/03/2021). These zones remain open and unsurveyed, and the latest AMT program will cover the extensions of these encouraging anomalies to define their extents fully (Figure 2).

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New
Line 26
AMT
Survey
area
New
AMT
Survey
area
New
Line 11
AMT
Line 10 MADD0153
Survey
area MARD0094
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Figure 1: Depth slice of AMT results for Maibele North (and part of Airstrip) at 500 m vertical depth showing 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. The proposed follow-up AMT areas designed to close off strong, open anomalies are marked with black boxes.

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ASX Announcement

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 mineralization 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 mineralization below and along strike of the current Maibele North resource estimate envelope. Si6 has previously confirmed evidence of deeper mineralization at Maibele North 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 19/3/21). Almost no drilling to date has been undertaken beneath the main Maibele North mineralization 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

Maibele North Main

The deeper, untested zones occur as distinct anomalies and generally lie beneath the thicker zones of mineralization 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 2). The survey results over Maibele North provide great encouragement for the effectiveness of the AMT to detect further mineralization 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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ASX Announcement

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AMT AMT
Line 10 Line 11
2015 MRE Block Model
Untested by drilling
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Figure 2: 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 Inferred Resource 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 mineralization intersected in MARD0094 and has confirmed that the narrow Ni-sulphide mineralization intersected in MADD0153 lies on the periphery of this very prominent zone (Figures 1 & 3). The AMT anomaly in this area is located south of MADD0153 and the strength of the response in the area of the MARD0094 mineralization 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 requires further AMT lines to define fully. The AMT has highlighted the significant potential to discover further Ni sulphide mineralization 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
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Figure 3: 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 Maibele North 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 Cu-Ag mineralization intersected in previous drilling. The results are encouraging and indicate a potential deep source of mineralization beneath the shallow high grades. Further AMT lines were planned for the latest program across the prominent PDIP anomalies (ASX Announcement 29/06/2021) further to the west and southwest of the known Airstrip mineralization. These areas represent totally new targets for Si6 and will form the basis of an extensive regional RC program targeting the new anomalies and beneath existing mineralization.

Dibete

Pole dipole IP was also undertaken across the Dibete Cu-Ag prospect with great effect, defining a 2.5km long coincident chargeability and resistivity zone encompassing previously drilled high-grade Cu and Ag mineralization defined (see ASX Announcement 24/06/2021). Modelling the potential source of this mineralization suggests a deeper target source might be responsible for the geophysical response and near surface mineralization. The regional VTEM data shows prominent conductive anomalies beneath the Dibete chargeability anomaly, and the proposed AMT survey has been designed to cover areas of coincident IP/VTEM response. Further AMT lines were planned for the latest program across these areas to generate deep drill targets for immediate testing.

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ASX Announcement

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Figure 4: Plan view of the greater Airstrip Prospect showing the 10 proposed AMT survey lines (black lines) overlaid on the gradient array chargeability image and the regional magnetics as an underlay.

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Figure 5: Plan view of the greater Dibete Prospect showing the 13 proposed AMT survey lines (black lines) overlaid on the gradient array chargeability image and the regional VTEM 400m depth slice as an underlay. The VTEM shows prominent conductive anomalies at 400m depth below each of the areas to be covered with AMT surveys.

page 7

ASX Announcement

Summary of survey work

The AMT survey has successfully defined 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 mineralization given the technique’s effectiveness in mapping known areas of mineralization. The survey has highlighted deep anomalies beneath some of the thickest sections of the Maibele North resource as well as the most recent hole 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.

Monument Gold Project (MGP), Western Australia

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Location maps of MGP (in blue) adjacent to Dacian’s Mount Morgan Project (in yellow).

Mineral Resource Estimate declared for MGP

On 2 August 2021, Si6 announced a JORC (2012) MRE for the MGP. The MGP covers an area of 310km[2] in a well-established mining district with excellent infrastructure and access. The MRE was undertaken on the Korong and Waihi deposits, which occur along ~30km of poorly tested banded iron formation, interpreted to be the same unit that hosts the 1.4Moz Westralia gold deposit (Dacian’s Mt Morgan Project), located immediately southeast of the MGP. To date, only 10% of the 30km strike has been drilled with detailed reverse circulation (RC) drilling. There are currently six other high priority targets identified along the banded iron formations (BIF) horizon remaining to be tested (Figure 6).

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ASX Announcement

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Figure 6: Monument Gold Project, two resource areas and six target prospects.

The Korong and Waihi MRE was undertaken by CSA Global Pty Ltd (CSA), an external and independent geological and mining consultancy and reported in accordance with the guidelines from the JORC Code, 2012 Edition. The principal data set used to calculate the MRE consisted of a Microsoft Access database supplied to CSA by database consultants Geobase Australia Pty Ltd, on behalf of Si6. The data set included all drill holes from the recent 2021 RC drilling program undertaken by Si6 at Korong and Waihi (Table 1).

page 9

ASX Announcement

Table 1. Summary of drill data supplied to CSA Global.

Category	Waihi	Waihi	Korong	Korong	Korong	Korong	Korong	Total
	RC	DD	RC	DD	RAB	AC	WB
Drillholes	69	7	147	21	21	38	2	305
Metres drilled	3,734	887	9,947	4,795	737	1,926	168	22,195
Surveyrecords	240	12	594	105	21	38	10	1,020
Assayintervals	3,098	289	8,212	2,714	460	1,309	98	16,180
Au assays	3,090	272	8,194	2,653	460	1,303	97	16,069

The MRE are reported by oxidation zone with grade estimates calculated by Ordinary Kriging based on developed block models at the selected cut-off grade of 0.5g/t Au (Tables 2 and 3). Given the outcropping nature of mineralization, a 0.5g/t Au lower cut-off grade presumes exploitation by open pit mining methods. The majority of the MRE sits within 200m of surface. Mineralization remains open along strike at Korong and Waihi and at depth, down-plunge of the modelled higher grade shoots.

Mineral Resource Summary – Korong

Table 2. Korong Mineral Resource statement – August 2021

ource Summary – Korong e 2.Korong Mineral Resource statement – August 2021	ource Summary – Korong e 2.Korong Mineral Resource statement – August 2021	ource Summary – Korong e 2.Korong Mineral Resource statement – August 2021	ource Summary – Korong e 2.Korong Mineral Resource statement – August 2021
KorongInferred Resource
Oxide zone	Tonnes (kt)	Gold
		Grade(g/t)	Metal(koz)
Primary Oxide	1,972 1,062	1.6 1.1	100 39
Total	3,034	1.4	139

Mineralization at Korong is hosted within an overturned, east-dipping BIF sequence comprising of at least 5 individual BIF units separated by intercalated metasiltstones, minor ultramafic rocks, and massive and pillowed basalts. The bulk of the gold mineralization is contained within the 3m to 5m thick basal, magnetite BIF unit.

RAB, AC, RC and DD drilling data supplied by Si6 was validated by CSA who determined the data suitable for resource estimation. All available holes were used to interpret the mineralized bodies, but only diamond and RC drill data was employed in the grade estimation process.

Sampling by Si6 and former project holder DiscovEx Resources (DCX) was undertaken at the drill rig with 1m samples collected into pre-numbered calico bags attached to a rig-mounted cyclone with inbuilt cone splitter. Quality assurance and quality control (QAQC) sampling by Si6 and DCX consisted of inserting certified reference materials (CRMs), blanks and duplicates in the sample stream. Sampling by previous explorers Carpentaria and WMC was undertaken at the drill site via a riffle splitter with 1m and 2m composite samples reduced to a suitable sample size (1–3 kg) and submitted to the laboratory.

Assaying by Si6 and DCX was undertaken at an accredited laboratory using the fire assay technique. Previous analytical work by Carpentaria and WMC includes fire assay and aqua regia.

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ASX Announcement

3D geology and mineralized wireframe interpretation was based on current understanding of the deposit geology. 20m spaced cross-sections were displayed in Micromine software together with drillhole traces and colour-coded values according to lithology and gold value. A total number of 32 individual mineralized bodies were interpreted and wireframed. Wireframes were created using a 0.2g/t Au grade composite (Figure 7).

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Figure 7: Mineralised envelopes for Korong generated using a 0.2g/t Au composite. Principal basal BIF unit hosting inferred resources is colour-coded blue.

Based on statistical analysis, a top cut of 30g/t Au was selected for the Korong prospect. An empty block model was created to encompass the full extent of the Korong prospect area. The block model used a parent cell size of 10 m(E) x 10 m(N) x 5 m(RL) with sub-celling to 2m(E) x 2 m(N) x 1 m(RL) to maintain the resolution of the mineralised bodies. The northing and easting parent cell size was selected based on approximately one half of the average drill section spacing.

Gold grade values were interpolated into the empty block model using the Ordinary Kriging method. The estimation was run within parent cells, i.e. all sub-cells within each parent cell were filled with the same grade. Gold grades were interpolated into the empty block model with the top cut applied. The Ordinary Kriging process was performed at different search radii until all cells were interpolated.

The Mineral Resource has been classified based on the guidelines specified in the JORC Code. At this stage of exploration, based on the observed geological and grade continuity and considering the exploration grid density, CSA Global decided that the Korong Resource should be classified as Inferred for the main mineralized body which is based on at least two intersections along the exploration lines and to the maximum depth with mineralized intersections. All other minor bodies and their projections at depth were left unclassified (Figure 8).

page 11

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ASX Announcement
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Figure 8: Resource classification Korong looking southwest (Green = Inferred, Brown = Unclassified).

The Mineral Resource is assumed to be partly amenable to open pit mining methods based on numerous other similar deposits being mined with similar geology along strike and within the Laverton district. Further optimization work is required to assess suitable mining methods.

Mineral Resource Summary – Waihi

Table 3. Waihi Mineral Resource statement – August 2021

ource Summary – Waihi Table 3.Waihi Mineral Resource statement – August 2021	ource Summary – Waihi Table 3.Waihi Mineral Resource statement – August 2021	ource Summary – Waihi Table 3.Waihi Mineral Resource statement – August 2021	ource Summary – Waihi Table 3.Waihi Mineral Resource statement – August 2021
Waihi Inferred Resource
Oxide zone	Tonnes (kt)	Gold
		Grade (g/t)	Metal (koz)
Primary Oxide	158 65	2.3 1.6	12 3
Total	223	2.1	15

Mineralization at Waihi is hosted within an overturned, east-dipping BIF sequence comprising at least three individual BIF units separated by intercalated metasiltstones, minor ultramafic rocks, and massive and pillowed basalts. The bulk of the gold mineralization is contained within the 1m to 3m thick basal, magnetite BIF unit.

RC and DD drilling data supplied by Si6 was validated by CSA who determined the data suitable for resource estimation.

Sampling by Si6 was undertaken at the drill rig with 1m samples collected into pre-numbered calico bags attached to a rig-mounted cyclone with in-built cone splitter. QAQC sampling by Si6 consisted of inserting CRMs, blanks and duplicates in the sample stream. Sampling by previous explorers Carpentaria and WMC was undertaken at the drill site via a riffle splitter with 1m and 2m composite samples reduced to a suitable sample size (1–3 kg) to be submitted to the laboratory.

page 12

ASX Announcement

Assaying by Si6 was undertaken at an accredited laboratory using the fire assay technique. Previous analytical work by Carpentaria and WMC includes fire assay and aqua regia. 3D geology and mineralized wireframe interpretation was based on current understanding of the deposit geology. 20m to 50m spaced cross-sections were displayed in Micromine software together with drillhole traces and colourcoded values according to lithology and gold value. A total number of 16 individual mineralized bodies were interpreted and wireframed for the Waihi prospect. Wireframes were prepared using a 0.2g/t Au grade composite (Figure 9).

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Figure 9: Mineralised envelopes for Waihi generated using a 0.2g/t Au composite. Principal basal BIF unit hosting inferred resources is colour-coded brown and green.

Based on statistical analysis a top cut of 20 g/t was selected for the Waihi prospect. An empty block model was created to encompass the full extent of the Waihi prospect area. The block model used a parent cell size of 10 m(E) x 10 m(N) x 5 m(RL) with sub-celling to 2 m(E) x 2m(N) x 1 m(RL) to maintain the resolution of the mineralised bodies. The northing and easting parent cell size was selected based on approximately one half of the average drill section spacing.

Gold grade values were interpolated into the empty block model using the Ordinary Kriging method. The estimation was run within parent cells, i.e. all sub-cells within each parent cell were filled with the same grade. Gold grades were interpolated into the empty block model with the top cut applied. The Ordinary Kriging process was performed at different search radii until all cells were interpolated.

The Mineral Resource has been classified based on the guidelines specified in the JORC Code. At this stage of exploration, based on the observed geological and grade continuity and considering the exploration grid density, CSA Global decided that Waihi should be classified as Inferred for the main mineralized body which is based on at least two intersections along the exploration lines and to the maximum depth with mineralized intersections. All other minor bodies and their projections at depth were left unclassified (Figure 10).

page 13

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ASX Announcement
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Figure 10: Resource classification Waihi looking southwest (Green=Inferred, Brown = Unclassified).

The Mineral Resource is assumed to be partly amenable to open pit mining methods based on numerous other similar deposits being mined with similar geology along strike and within the Laverton district. Further optimization work is required to assess suitable mining methods.

Evaluation and future exploration

Future drilling across the Monument Gold Project will have two objectives. The first style of drilling will comprise systematic RC and diamond core drilling along the Korong-Waihi corridor targeting the numerous “brownfields” prospects with historic drill intercepts of similar grade and tenor to Korong and Waihi. Such prospects have not been followed up since Carpentaria Exploration and Western Mining Corporation undertook intense regional drilling programs in the 1980’s and 1990’s. These infill and step out drilling programs will aim to define new resources and further increase existing inferred mineral resources. Success on this front will assist in demonstrating the potential to support a long term and potentially larger scale mining operation.

The second style of drilling will aim to test “greenfields” exploration targets identified through historic database evaluation, geochemical sampling and geophysical interpretation including syenite intrusive targets. To date, a number of high priority targets have already been identified within the historic database and from a recent regional geophysical interpretation (see ASX release dated 31 May 2021 “Exploration Update – Monument Gold Project WA”).

page 14

ASX Announcement

Drilling Commences – Post Quarter

Si6 advised post quarter that it had commenced an AC drilling program. The drilling is the Company’s maiden aircore program targeting high level intrusives prospective for bulk tonnage gold mineralisation analogous to the Wallaby (~7Moz Au) and Jupiter (~1.5Moz Au) gold deposits that occur within a similar setting elsewhere in the Laverton Tectonic Zone. Approximately 125 holes will be drilled to test 25 out of about 60 intrusive targets identified to date from geophysical interpretation and a detailed review of the historical database.

The drill program was designed as part of Si6’s successful application for co-funded drilling through the Western Australian Government’s Exploration Incentive Scheme (EIS) where 50% of direct drilling costs up to $75,000 will be reimbursed to the Company.

Drilling will extend the full length of the MGP from the Two Bills Prospect in the north to the southern tenement boundary. The majority of intrusive targets are hosted within the central, main greenstone belt which also hosts Dacian Gold’s (ASX:DCN) 2Moz Mt Morgans Gold Project along strike to the south.

Corporate & Other matters

Extraordinary General Meeting

Post-quarter Si6 held an Extraordinary General Meeting of shareholders on 12 October 2021. The Company was pleased to confirm that all resolutions proposed by requisitioning shareholders were NOT passed with shareholders overwhelmingly endorsing the existing Si6 board and strategy.

Valid proxies were received from 380 shareholders holding in total 545,542,090 shares, representing 38.19% of the Company’s issued capital.

Of the 380 shareholders that voted by proxy, only 20 voters were in support of the requisitioners resolutions brought forward. Of those 20 voters, 5 were the requisitioners themselves.

Of the 126,713,553 total votes in favour of the resolutions put forward by the requisitioners, 111,458,314 were the votes of the requisitioners themselves. Therefore, excluding the requisitioners’ own votes, only 2.8% of total votes cast were in favour of the resolutions put forward by the requisitioners. The Company noted that regrettably, the requisition forced Si6 to waste unnecessary time and money defending a frivolous and vexatious approach from a small number of shareholders.

The Board was very pleased by the support received from shareholders, and thanks everyone who took the time to vote their shares. The Board always welcomes shareholder communications and considers any feedback or concerns.

Technical presentation on Maibele Project

Post quarter end, Si6 provided a Technical Presentation on the Maibele Project presented by Technical Director Mr Steve Groves.

The video presentation can be viewed on the Company’s website: https://www.si6metals.com/

page 15

ASX Announcement

Acquisition of 100% of the ordinary shares in Monument Exploration Pty Ltd

During the quarter Si6 completed its acquisition of 100% interest in the MGP by way of acquiring 100% of the issued capital in Monument Exploration Pty Ltd (ACN 603 349 239). As announced on 26 July 2021, Si6 entered into a formal definitive agreement with DiscovEx Resources Limited (ACN 115 768 986)(DiscovEx) whereby DiscovEx granted Si6 an option (Option) to acquire a 100% interest in the Monument Gold Project by way of acquiring 100% of the issued capital in Monument Exploration Pty Ltd (ACN 603 349 239) (Acquisition). As further announced on 26 July 2021, the Company gave DiscovEx written notice to exercise the Option.

The Company paid the final consideration amount of A$400,000 in both cash and shares ($100,000 cash and $300,000 worth of shares were issued). The shares were issued under the Company’s existing capacity under ASX Listing Rule 7.1.

BCL Liquidation Update

Si6 has a farm-in and joint venture agreement with BCL Limited and its subsidiary BCL Investments (Pty) Ltd (jointly referred to as BCL). Under the terms of this agreement (Joint Venture), BCL was required to spend A$4 million on exploration expenditure to earn a 40% equity interest in three tenements. BCL has the option to continue funding the project to a Bankable Feasibility Study in order to earn an additional 30%. In October 2016, BCL was placed into liquidation.

As previously announced, Premium Nickel Resources (PNR) completed an Exclusivity Memorandum of Understanding ("MOU") with the liquidator of BCL which will govern a six-month exclusivity period to complete its due diligence and related purchase agreements on the Botswana nickel-copper-cobalt ("Ni-Cu-Co") assets formerly operated by BCL Limited ("BCL"), that are currently in liquidation. Late in the quarter, PNR executed a definitive asset purchase agreement with the liquidator to acquire the Selebi and Selebi North nickel-copper-cobalt assets and related infrastructure formerly operated by BCL

Si6 continued communications with the liquidators as well as interested parties such as PNR in relation to the Joint Venture and will update the market accordingly.

COVID-19 Update

Si6 acknowledges certain delays due to COVID-19 in conducting work programs and securing technical contractors, particularly in Botswana and South Africa. Various restrictions and lockdown measures have presented challenges, however Si6 is pleased with its progress on programs undertaken to date in light of these challenges. The Company will advise the market should circumstances materially change impacting the ability for Si6 to complete programs in a timely manner. Si6’s top priority at all times is the health and safety of its staff, contractors and the communities in which it operates.

Cash Position

Si6 ended the September 2021 quarter with a cash position of $3.8 million.

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ASX Announcement

Additional ASX Information

ASX Listing Rule 5.3.1

Exploration and Evaluation during the quarter was $255,000 being on field exploration in Botswana and Western Australia.

ASX Listing Rule 5.3.2

There was no substantive mining production and development activities during the quarter.

ASX Listing Rule 5.3.5

During the period, the Company paid $81,310 to related parties, these payments were made to directors of Si6 for salaries and directors fees, on normal commercial terms.

Exploration areas held in Botswana

The Company holds the following prospecting licences in Botswana (all held by African Metals (Pty) Ltd):

Tenement	Renewal / Expiry Date	Percentage Holding	Title Holder	Comment
Magogaphate PL 110/94	31/03/2018	100	African Metals (Pty) Ltd	Farm-in agreement with BCL Ltd*.
Mokoswane PL 111/94	31/03/2018	100	African Metals (Pty) Ltd	Farm-in agreement with BCL Ltd*.
Takane PL 54/98	31/03/2018	100	African Metals (Pty) Ltd	Farm-in agreement with BCL Ltd*.
Shashe South PL 059/2008	30/09/2016	100	African Metals (Pty) Ltd	Renewal application submitted 30/06/16, to be included in JV with BCL Ltd*.
PL186/2020	31/12/2023	100	African Metals (Pty) Ltd	Active
PL188/2020	31/12/2023	100	African Metals (Pty) Ltd	Active
PL006/2021	30/06/2024	100	African Metals (Pty) Ltd	Active
PL007/2021	30/06/2024	100	African Metals (Pty) Ltd	Active
PL136/2021	30/09/2024	100	African Metals (Pty) Ltd	Active
PL 389/2018	30/09/2021	100	African Metals (Pty) Ltd	Pending renewal.

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ASX Announcement

Exploration areas held in Western Australia

The Company’s subsidiary, Monument Exploration Pty Ltd holds the following licences in Western Australia:

Tenement	Renewal / Expiry Date	Percentage Holding	Title Holder	Comment
E39/1846	16/06/2025	100	Monument Exploration Pty Ltd	Active
E39/1866	1/02/2022	100	Monument Exploration Pty Ltd	Active
E39/2024	2/07/2023	100	Monument Exploration Pty Ltd	Active
E39/2035	2/07/2023	100	Monument Exploration Pty Ltd	Active
E39/2036	2/07/2023	100	Monument Exploration Pty Ltd	Active
E39/2139	21/07/2025	100	Monument Exploration Pty Ltd	Active
P39/5456	7/04/2022	100	Monument Exploration Pty Ltd	Active
P39/5457	7/04/2022	100	Monument Exploration Pty Ltd	Active
P39/5519	15/06/2023	100	Monument Exploration Pty Ltd	Active
P39/5837	30/10/2022	100	Monument Exploration Pty Ltd	Active
P39/5855	3/07/2023	100	Monument Exploration Pty Ltd	Active
P39/5880	15/05/2023	100	Monument Exploration Pty Ltd	Active
P39/5899	1/10/2022	100	Monument Exploration Pty Ltd	Active
P39/5910	30/10/2022	100	Monument Exploration Pty Ltd	Active
P39/6051	6/04/2024	100	Monument Exploration Pty Ltd	Active
P39/6052	6/04/2024	100	Monument Exploration Pty Ltd	Active
P39/6053	6/04/2024	100	Monument Exploration Pty Ltd	Active
P39/6054	5/08/2024	100	Monument Exploration Pty Ltd	Active
P39/6055	1/12/2024	100	Monument Exploration Pty Ltd	Active
P39/6056	1/12/2024	100	Monument Exploration Pty Ltd	Active
P39/6057	2/12/2024	100	Monument Exploration Pty Ltd	Active
P39/6058	2/12/2024	100	Monument Exploration Pty Ltd	Active

The mining tenement interests acquired or relinquished during the quarter and their location Si6 acquired all the above-mentioned tenement areas through Monument Exploration Pty Ltd during the quarter. The tenements are located in Western Australia.

Beneficial percentage interests held in farm-in or farm-out agreements at the end of the quarter

Si6, via its wholly-owned subsidiary African Metals (Pty) Limited, holds a 60% interest in Prospecting Licences PL110/94, PL111/94 and PL54/2008. The remaining 40% is held by BCL.

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ASX Announcement

Beneficial percentage interests in farm-in or farm-out agreements acquired or disposed of during the quarter

Not applicable.

Additional Tenement Information

African Metals (Pty) Ltd is a wholly owned subsidiary of the Company. Minerals Holdings (Botswana) Pty Ltd holds a 5% net profit share interest in PL 110/94, PL 111/94 and PL 54/98.

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 Victoria Humphries Executive Chairman Investor Relations M: +61 401 407 357 T: +61 431 151 676 ph@sixsigmametals.com victoria@nwrcommunications.com.au

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ASX Announcement

ASX CODE: SI6

DIRECTORS

Patrick Holywell Executive Chairman

Steve Groves Technical Director

Joshua Alan Letcher Non-Executive Director

Mauro Piccini Company Secretary

CONTACT

Suite 2, Level 1 1 Altona Street West Perth WA Australia 6005

+61 (8) 6559 1792

info@si6metals.com si6metals.com

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Rule 5.5

Appendix 5B

Mining exploration entity or oil and gas exploration entity quarterly cash flow report

Name of entity Si6 Metals Limited ABN Quarter ended (“current quarter”) 96 122 995 073 30 September 2021

Consolidated statement of cash flows	Current quarter $A’000	Year to date (3 months) $A’000
1. Cash flows from operating activities 1.1 Receipts from customers 1.2 Payments for (a) exploration & evaluation (b) development (c) production (d) staff costs (e) administration and corporate costs 1.3 Dividends received (see note 3) 1.4 Interest received 1.5 Interest and other costs of finance paid 1.6 Income taxes paid 1.7 Government grants and tax incentives 1.8 Other (provide details if material) 1.9 Net cash from / (used in) operating activities	- (255) - - (71) (315) - - - - - -	- (255) - - (71) (315) - - - - - -
	(641)	(641)
2. Cash flows from investing activities 2.1 Payments to acquire or for: (a) entities (b) tenements (c) property, plant and equipment (d) exploration & evaluation (e) investments (f) other non-current assets	(97) - - - - -	(97) - - - - -

ASX Listing Rules Appendix 5B (17/07/20) + See chapter 19 of the ASX Listing Rules for defined terms.

Page 1

Appendix 5B

Mining exploration entity or oil and gas exploration entity quarterly cash flow report

Consolidated statement of cash flows	Current quarter $A’000	Year to date (3 months) $A’000
2.2 Proceeds from the disposal of: (a) entities (b) tenements (c) property, plant and equipment (d) investments (e) other non-current assets 2.3 Cash flows from loans to other entities 2.4 Dividends received (see note 3) 2.5 Other (provide details if material) 2.6 Net cash from / (used in) investing activities	- - - - - - - -	- - - - - - - -
	(97)	(97)
3. Cash flows from financing activities 3.1 Proceeds from issues of equity securities (excluding convertible debt securities) 3.2 Proceeds from issue of convertible debt securities 3.3 Proceeds from exercise of options 3.4 Transaction costs related to issues of equity securities or convertible debt securities 3.5 Proceeds from borrowings 3.6 Repayment of borrowings 3.7 Transaction costs related to loans and borrowings 3.8 Dividends paid 3.9 Other (provide details if material) 3.10 Net cash from / (used in) financing activities	- - - - - - - - -	- - - - - - - - -
	-	-
4. Net increase / (decrease) in cash and cash equivalents for the period
4.1 Cash and cash equivalents at beginning of period 4.2 Net cash from / (used in) operating activities (item 1.9 above) 4.3 Net cash from / (used in) investing activities (item 2.6 above) 4.4 Net cash from / (used in) financing activities (item 3.10 above)	4,559 (641) (97) -	4,559 (641) (97) -

ASX Listing Rules Appendix 5B (17/07/20) + See chapter 19 of the ASX Listing Rules for defined terms.

Page 2

Appendix 5B

Mining exploration entity or oil and gas exploration entity quarterly cash flow report

Consolidated statement of cash flows	Current quarter $A’000	Year to date (3 months) $A’000
4.5 Effect of movement in exchange rates on cash held 4.6 Cash and cash equivalents at end of period	-	-
	3,821	3,821
5. Reconciliation of cash and cash equivalents at the end of the quarter (as shown in the consolidated statement of cash flows) to the related items in the accounts	Current quarter $A’000	Previous quarter $A’000
5.1 Bank balances 5.2 Call deposits 5.3 Bank overdrafts 5.4 Other (provide details) 5.5 Cash and cash equivalents at end of quarter (should equal item 4.6 above)	3,821 - - -	4,559 - - -
	3,821	4,559
6. Payments to related parties of the entity and their associates		Current quarter $A'000
6.1 Aggregate amount of payments to related parties and their associates included in item 1 (81) 6.2 Aggregate amount of payments to related parties and their associates included in item 2 - Note: if any amounts are shown in items 6.1 or 6.2, your quarterly activity report must include a description of, and an explanation for, such payments. 6.1 Director and consulting fees paid to Directors and/or Director related entities $81,310		(81)
		-

ASX Listing Rules Appendix 5B (17/07/20) + See chapter 19 of the ASX Listing Rules for defined terms.

Page 3

Appendix 5B

Mining exploration entity or oil and gas exploration entity quarterly cash flow report

7. 7.1 7.2 7.3 7.4 7.5 7.6	Financing facilities Note: the term “facility’ includes all forms of financing arrangements available to the entity. Add notes as necessary for an understanding of the sources of finance available to the entity. Total facility amount at quarter end $A’000 Amount drawn at quarter end $A’000 Loan facilities - - Credit standby arrangements - - Other (please specify) - - Total financing facilities - - Unused financing facilities available at quarter end - Include in the box below a description of each facility above, including the lender, interest rate, maturity date and whether it is secured or unsecured. If any additional financing facilities have been entered into or are proposed to be entered into after quarter end, include a note providing details of those facilities as well.	Total facility amount at quarter end $A’000	Amount drawn at quarter end $A’000
		-	-
		-	-
		-	-
		-	-
	N/A

8.	Estimated cash available for future operating activities	$A’000
8.1 8.2 8.3 8.4 8.5 8.6 8.7 8.8	Net cash from / (used in) operating activities (item 1.9) (641) (Payments for exploration & evaluation classified as investing activities) (item 2.1(d)) - Total relevant outgoings (item 8.1 + item 8.2) (641) Cash and cash equivalents at quarter end (item 4.6) 3,821 Unused finance facilities available at quarter end (item 7.5) - Total available funding (item 8.4 + item 8.5) 3,821 Estimated quarters of funding available (item 8.6 divided by item 8.3) 6 Note: if the entity has reported positive relevant outgoings (ie a net cash inflow) in item 8.3, answer item 8.7 as “N/A”. Otherwise, a figure for the estimated quarters of funding available must be included in item 8.7. If item 8.7 is less than 2 quarters, please provide answers to the following questions: 8.8.1 Does the entity expect that it will continue to have the current level of net operating cash flows for the time being and, if not, why not?	(641) - (641) 3,821 -
		3,821
	Answer: N/A
	8.8.2 Has the entity taken any steps, or does it propose to take any steps, to raise further cash to fund its operations and, if so, what are those steps and how likely does it believe that they will be successful?
	Answer: N/A

ASX Listing Rules Appendix 5B (17/07/20) + See chapter 19 of the ASX Listing Rules for defined terms.

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Appendix 5B

Mining exploration entity or oil and gas exploration entity quarterly cash flow report

8.8.3 Does the entity expect to be able to continue its operations and to meet its business objectives and, if so, on what basis?

Answer: N/A

Note: where item 8.7 is less than 2 quarters, all of questions 8.8.1, 8.8.2 and 8.8.3 above must be answered.

Compliance statement

• 1 This statement has been prepared in accordance with accounting standards and policies which comply with Listing Rule 19.11A.

• 2 This statement gives a true and fair view of the matters disclosed.

Date: ..............................29.October 2021...............................................

Authorised by: The Board of Si6 Metals Limited

(Name of body or officer authorising release – see note 4)

Notes

1. This quarterly cash flow report and the accompanying activity report provide a basis for informing the market about the entity’s activities for the past quarter, how they have been financed and the effect this has had on its cash position. An entity that wishes to disclose additional information over and above the minimum required under the Listing Rules is encouraged to do so.

2. If this quarterly cash flow report has been prepared in accordance with Australian Accounting Standards, the definitions in, and provisions of, AASB 6: Exploration for and Evaluation of Mineral Resources and AASB 107: Statement of Cash Flows apply to this report. If this quarterly cash flow report has been prepared in accordance with other accounting standards agreed by ASX pursuant to Listing Rule 19.11A, the corresponding equivalent standards apply to this report.

3. Dividends received may be classified either as cash flows from operating activities or cash flows from investing activities, depending on the accounting policy of the entity.

4. If this report has been authorised for release to the market by your board of directors, you can insert here: “By the board”. If it has been authorised for release to the market by a committee of your board of directors, you can insert here: “By the [ name of board committee – eg Audit and Risk Committee ]”. If it has been authorised for release to the market by a disclosure committee, you can insert here: “By the Disclosure Committee”.

5. If this report has been authorised for release to the market by your board of directors and you wish to hold yourself out as complying with recommendation 4.2 of the ASX Corporate Governance Council’s Corporate Governance Principles and Recommendations , the board should have received a declaration from its CEO and CFO that, in their opinion, the financial records of the entity have been properly maintained, that this report complies with the appropriate accounting standards and gives a true and fair view of the cash flows of the entity, and that their opinion has been formed on the basis of a sound system of risk management and internal control which is operating effectively.

ASX Listing Rules Appendix 5B (17/07/20) + See chapter 19 of the ASX Listing Rules for defined terms.

Page 5