VERITY RESOURCES LIMITED — Interim / Quarterly Report 2021

Jul 29, 2021

ASX Code: Si6

ASX Announcement

30 July 2021

June 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 June 2021.

Highlights

• Botswana (see page 2)

• Geophysical surveys completed highlighting a number of significant targets at Airstrip, Dibete and Maibele prospects

• Two 2-3km long anomalies confirmed at Airstrip and Dibete

• Surveys accurately mapped existing sulphide mineralisation

• Strong potential for deep sources of mineralisation beneath the shallow high grade mineralisation

• AMT confirmed as highly effective technique for detecting further sources of mineralisation

• Final AMT surveys at Airstrip and Dibete planned for August 2021 with drilling to occur as soon as possible in Q4 2021

• Western Australia (see page 16)

• Broad, shallow intersections from recent drilling program extend mineralisation north and south at Korong Prospect

• New intersections at Waihi Prospect intersect near-surface, high-grade mineralisation and extend shoot southward

• Promising Iag and soil sampling results received from Perseverance, Fred’s Well and McKenzie Well

• Compilation of aerial imagery and geophysics data to form the basis of a major targeting study

• Acquisition of high-resolution aerial imagery across the Monument, Fleming Bore and Smith Well tenement groups in progress

• JORC 2012 compliant MRE at Korong and Waihi in progress

• Intrusion-style targets to be drilled in September 2021

Corporate (see page 24)

• Cash position of $4.6 million as at 30 June 2021.

ASX Announcement

Maibele Base Metals Project, Botswana

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Si6 tenement portfolio in Eastern Botswana

AIRSTRIP PROSPECT

Si6 completed a Gradient Array Induced Polarisation ( GAIP ) survey across the Airstrip prospect in the prior quarter which detected numerous anomalous chargeability zones. This survey was followed up in the June quarter with discrete N-S lines of Pole-Dipole Induced Polarisation ( PDIP ) surveys across priority anomalies to further map the accurate locations of potential sulphide mineralisation with results announced this quarter.

Gradient Array Induced Polarisation surveys

The Gradient Array data showed a number of prominent Induced Polarisation (IP) high chargeability anomalies corresponding with an IP low resistivity anomaly, and in some instances, strong surface geochemical responses (see Figures 1 and 2). The Gradient Array IP data corresponds well with mineralisation intersected by previous drilling and further work along strike and at depth of these bodies is warranted at the project. The Gradient Array IP highlighted three priority anomalous zones for immediate follow up:

Anomaly 1 is located on the NE edge of the survey area and is coincident with historically drilled copper silver lodes at Airstrip. The high chargeability zones are offset slightly to the east of the main drilled mineralisation at Airstrip and extend along strike towards the Maibele North Ni-Cu-PGE ore body.

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Anomaly 2 presents as a large area of multiple strong chargeability responses in the southwest corner of the survey area. The NW-NE tending structural regime is still evident and the anomaly is also spatially associated with a large NW-trending dolerite dyke, the type of which have been noted to be associated with high grade copper and silver mineralisation in drill holes at Airstrip. This large area also contains a NE-striking magnetic body that potentially represents a mafic-ultramafic body that appears to be the extension of the ultramafic rock types associated with the Maibele North Ni-Cu-PGE orebody.

Anomaly 3 is located in the northern part of the survey and is a NE-trending, >1km long linear chargeability high directly associated with a strong NE trending copper-in-soil anomaly in an area that has never been drilled previously. Field reconnaissance has shown copper-oxide mineralisation (malachite) to be present at surface at Anomaly 3.

Existing magnetic surveys indicate two NW-SE trending dolerite dykes at the northern and southern extent of the Airstrip IP anomalies. Dolerite dykes have been noted to be associated with Cu-Ag mineralisation at both the Airstrip and Dibete prospects. Additional work along these dykes, corresponding with IP anomalies is also warranted.

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Figure 1 : GAIP map for the Airstrip Prospect and immediate western locality with historic drillholes, ORE Explorer targets and interpreted mafic/ultramafic units

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Figure 2 : Plan view of the Airstrip Gradient Array IP survey showing chargeability at the top and resistivity on the bottom over the regional magnetic response. The white parallel lines show the location of PDIP survey lines.

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Pole Dipole Induced Polarisation surveys

PDIP surveys undertaken during the June quarter were completed along 12 N-S lines perpendicular to the general strike direction of the Airstrip Gradient Array anomaly and coincident Cu-Ag mineralisation. The PDIP survey was designed to test some of the most prominent GAIP anomalies to gain an understanding of targeting depth and to help characterize the anomalies further. Some of the areas previously drilled were also flagged for follow up to help generate better drill targets.

Results from the PDIP surveys indicate prominent chargeability anomalies extending to depth that generally correspond to the GAIP data (Figure 2). Gradient Array anomalies 1, 2 and 3 all generated strong PDP responses and warrant drill testing as well as more IP lines with wider dipole spacings to extend the anomaly strike lengths and generate additional targets.

The PDIP lines at Anomaly 1 are located to the immediate southeast of the Maibele North Ni-C-PGE orebody and run across some of the drilled high grade Cu-Ag mineralisation at Airstrip (Figure 3). The chargeability response shows two strong chargeability anomalies with coincident resistivity lows that both correspond to known mineralisation at Maibele North and Airstrip but also reveal deeper and parallel targets that have yet to be drill tested. The data indicates that there is good potential to discover mineralisation at Airstrip further to the east and at depth and also to extend the Maibele North mineralisation to the SW.

Anomaly 2 lies to the southeast of Maibele North and Airstrip and shows a large area that contains numerous Gradient Array IP anomalies (Figures 4 & 5). Eight PDP lines were undertaken across Anomaly 2 and all showed strong IP chargeability and resistivity anomalism. A particularly striking feature of the chargeability response is the linear nature of the corresponding highs across the zone, indicating a prospective zone extending for at least 2 km. Dolerite dykes are known to traverse the area and other geophysical datasets such as magnetics indicate potential for ultramafic bodies and highlight the potential for Anomaly 2 to host numerous mineralisation styles. Elevated copper-in-soils are also associated with the 2km long anomalous zone. The two historic holes drilled in the area did not test the currently defined IP anomalies in this zone.

Two lines were undertaken at Anomaly 3 to test the Gradient Array response and extend the anomaly further to the west (Figure 6). Two strong coincident chargeability highs coincident with resistivity lows were identified and further Induced Polarisation surveys are required to fully define the extent of these anomalies. The zones correlate well with strong historic linear copper-in-soil anomalies and have defined a new target zone for Si6. The resistivity lows warrant immediate drill testing but further geophysics is likely to define more drill targets.

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Figure 3 : Modelled Pole Dipole IP survey sections show correlation between resistivity lows and high chargeability at anomaly 1. The zone was previously drilled but the new, deeper anomalous zones have not been tested.

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Figure 4 : Anomaly 2 PDIP chargeability showing the linear nature of the anomaly relative to two historic drill holes.
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Deep resistivity lows that warrant drill testing
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Figure 5 : Anomaly 2 PDIP resistivity response which represents a newly discovered zone with strike length well over 2km. Several deep resistivity lows are evident across the zone at every PDIP surveyed line and present as attractive drill targets.

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Figure 6 : Anomaly 3 PDP chargeability and resistivity sections define is a newly discovered area which is still open to the west and east.

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Audio-frequency Magnetotellurics surveys

As announced post quarter end, an Audio-frequency Magnetotellurics ( AMT ) survey extended to the southwest of Maibele North to cover a portion of the Airstrip target area. AMT is an electromagnetic geophysical technique that measures local magnetic and electric fields which are used to determine inphase and out of phase ground resistivity values. AMT can use artificial sources or natural sources, such as were employed in this survey. The results showed a small but strong response coincident with, and beneath, some of the shallow high-grade Cu-Ag 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.

DIBETE PROSPECT

Si6 recently completed a Gradient Array Induced Polarisation ( GAIP ) survey across the Dibete prospect in the previous quarter which detected numerous anomalous chargeability zones. This survey has been followed up with discrete N-S lines of Pole-Dipole Induced Polarisation ( PDIP ) surveys across priority anomalies to further map the accurate locations of potential sulphide mineralisation with results announced in the June quarter.

Gradient Array Induced Polarisation surveys

The GAIP survey data showed a prominent Induced Polarisation (IP) high chargeability anomaly corresponding with an IP low resistivity anomaly, indicating a high metal factor over 2.5km of strike length on the Dibete Prospect (see Figure 7). The IP gradient data corresponds well with mineralisation intersected by drilling to date, warranting further work along strike and at depth. Previous magnetic surveys indicate an E-W trending dolerite dyke across the northern part of the Dibete IP anomaly. Dolerite dykes have been noted to be associated with Cu-Ag mineralisation at both the Dibete and Airstrip prospects. Additional work to the north of this dyke, along to the Dibete IP anomaly is also warranted.

Pole Dipole Induced Polarisation surveys

PDIP surveys undertaken during the June quarter were completed along 10 N-S lines perpendicular to the general strike direction of the Dibete Gradient Array anomaly and coincident Cu-Ag mineralisation. Results from the PDIP surveys indicate two prominent chargeability anomalies corresponding to the IP Gradient Array data.

The southern anomaly, which is 2.5km in extent, has been modelled to be spatially associated within the known mineralisation from the historical drilling at Dibete. This southern chargeability anomaly lies beneath and along strike of the drilled mineralisation and is the main target area at the prospect (see Figure 8). The northern anomaly is possibly a response from clays associated with a dolerite dyke. Cross sections of the modelled IP data show coincident chargeability anomalies and resistivity low zones extending to depth along the 2.5km extent of the Dibete zone (see Figure 9).

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Figure 7 : Plan view of the Dibete Gradient Array IP survey showing chargeability at top and resistivity on the bottom. The E-W trending northern conductor (on the top image) is potentially a clay response from a dolerite dyke and is therefore not regarded as a high priority target.

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N
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Figure 8: Plan view of the interpreted Dibete 2.5 km IP PDP chargeability model (hatched shape) showing a NE strike direction. Note the association with the Gradient Array IP low resistivity surface data indicating a high metal factor (high chargeability and low resistivity).

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Resistivity low
Chargeability
high
Line 7
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Figures 9a: Examples of the modelled PDP data showing cross sections through Line 7 (here) and Line 8 (Next page) with coincident chargeability and resistivity models. Note the strong correlation between chargeability highs and narrow resistivity lows potentially indicating a sulphide-mineralised structural zone. All PDP IP lines show a similar response across the prospect.

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Resistivity
low
Chargeability
high
Line 8
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Figures 9b: Examples of the modelled PDP data showing cross sections through Line 7 (Previous page) and Line 8 (here) with coincident chargeability and resistivity models. Note the strong correlation between chargeability highs and narrow resistivity lows potentially indicating a sulphide-mineralised structural zone. All PDP IP lines show a similar response across the prospect.

MAIBELE NORTH PROSPECT

Post quarter end, the Company announced results from an AMT survey conducted at Maibele North. 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. Almost no drilling to date has been undertaken beneath the main Maibele North mineralisation envelope.

The AMT survey has been 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 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.

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The Maibele North Ni-Cu-Co-PGE orebody contains a Mineral Resource Estimate ( MRE ) of 2.38Mt which is open along strike and at depth. 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 10 and 11). 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 10).

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 10 : 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 11 : 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.

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 10 & 12). 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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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 12 : 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.

FUTURE WORK PROGRAMS, BOTSWANA

The geophysical programs are designed to locate sulphide mineralisation for follow-up drill testing with a view of following up the targets with a combination of RC and diamond drilling. Further AMT surveys are planned for Airstrip and Dibete with drilling to follow. Quotes for both surveys and drilling are being sought. Final AMT surveys at Airstrip and Dibete are planned for August with drilling to occur as soon as possible in Q4 2021.

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, 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.

In February 2021, the Honourable, Moagi Lefoko, the Minister of Mineral Resources, Green Technology and Energy Security of Botswana, affirmed in Botswana Parliament the press release by the Liquidator for the BCL Group of Companies, stating that Premium Nickel Resources ( PNR ) was selected as the preferred bidder to acquire the assets formerly owned by BCL. PNR is a private Canadian company, dedicated to the exploration and development of high-quality nickel-copper-cobalt resources. PNR has a six-month exclusivity period to complete due diligence on relevant assets. Si6 continues to engage openly with both the liquidator and interested parties.

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Monument Gold Project, Western Australia

The recent Korong and Waihi drill program comprised of 34 reverse circulation ( RC ) holes for a total of 4,363m. The program was designed to target strike extensions to existing mineralisation, high-grade shoot extensions at depth and the prospective basal Banded Iron Formation ( BIF ) unit. It also aimed to validate the historic drill data in preparation for future resource calculations. The new drill data has been validated and loaded into the Company database and is currently being used to generate a 3D geological model and mineralised wireframes to be included in a new Mineral Resource Estimate ( MRE ).

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Figure 13 : Location maps of MGP (in blue) adjacent to Dacian’s Mount Morgan Project (in yellow).

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DRILLING RESULTS

Korong Prospect

Final assays were received during the quarter where drilling was conducted over a 780m Banded Iron Formation ( BIF ) strike length at Korong. Drilling tested the central, northern and southern extensions of mineralisation to a depth of 150m and depth extensions to interpreted mineralised shoots.

At the south end of Korong, significant, shallow mineralisation was intersected in holes KORC020 (4m @ 1.33g/t Au from 52m) and KORC021 (5m @ 2.03g/t Au from 60m). Both of these holes appear associated with a south-plunging mineralised shoot which appears a near-surface repetition of the main high-grade shoot located at the centre of Korong.

Proximal to the main high-grade shoot, significant mineralisation was returned from hole KORC015 (3m @ 2.18g/t Au from 136m) with hole KORC016 (5m @ 2.56g/t Au from 124m) drilled along the downdip edge of the shoot at 100m depth. To the north of the shoot, drill holes KORC013 (3m @ 0.71g/t Au from 113m) and KORC014 (3m @ 1.29g/t Au from 163m) confirmed the occurrence of a lower-grade north plunging shoot repetition with mineralisation open at depth and down-plunge of KORC014.

At the north end of Korong, a number of new, shallow intersections were received from sparsely drilled areas where no previous mineralisation had been reported. These include KORC012 (6m @ 1.69g/t Au from 78m) and KORC008 (4m @ 1.35g/t Au from 48m), which both appear as south-plunging shoot repetitions. These newly interpreted shoots remain open down-plunge and to the south.

Drilling at Korong has successfully identified mineralisation over a total strike length of 550m with mineralisation remaining open down-plunge for a number of south-plunging mineralised shoots.

Results from this first phase of work are very encouraging with drill testing of the mineralised highgrade, south-plunging shoot system further confirming the overall robustness of near-surface mineralisation at Korong. New significant intersections from poorly tested strike extensions have identified additional shoot repetitions which remain open to the north and south.

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Figure 14: Current and historical drill results at Korong

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Figure 15: Grade contour long section of Korong showing pierce points and mineralised intercepts.

Waihi Prospect

Final assays were received during the quarter where drilling was conducted over a 680m BIF strike length at Waihi.

An intersection of 4m @ 5.89g/t Au from 62m (KORC005) was obtained from a near-surface, southplunging high-grade shoot which has a similar geometry to the main shoot at Korong. Additional drilling down-plunge towards the south returned 3m @ 2.45g/t Au from 113m (WHRC010). The results at Waihi suggest boudinage (pinching and swelling) is present along the length of the shoot, which is a similar feature evident at the Korong main shoot.

Drilling at the south end of Waihi targeted south-plunging shoot repetitions to mineralisation intersected in WHRC005 of 3m @ 1.38g/t Au from 69m (WHRC009). A potential shoot repetition in the proximity of WHRC009 remains open down-plunge to the south.

The total strike length drill tested at Waihi covers 680m, with mineralised intersections >1g/t Au obtained over 600m. Compared to Korong, drill collar positions at Waihi remain very broadly spaced and further drilling is required to enhance geometry of the mineralised shoots which will assist in ongoing drill planning and resource definition.

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Figure 16 : Current and historical drill results at Waihi.

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Figure 17 : Grade contour long section of Waihi showing pierce points and mineralised intercepts.

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SOIL SAMPLING RESULTS

Assay results from recent Iag and soil sampling carried out during the June quarter across four target areas including Perseverance, Fred’s Well, McKenzie Well and Smith Well have been received with a peak 4,920ppb Au lag sample result from Perseverance. The sample was taken 150m east of the main line of chert/ BIF outcrop where recent rock chip sampling by Si6 in 2020 returned a number of samples >1g/t Au (Figure 18).

At Fred’s Well, a lag anomaly (>30ppb Au) has been identified with a peak value of 357ppb Au. The anomaly extends 450m and remains open to the north where historic workings continue another 550m. Rock chip and grab sampling along the historic workings by Si6 in November 2020 returned a number of samples >1g/t Au with a peak value of 39.3g/t Au.

Lag sampling in the southern MGP area at McKenzie Well delineated a 1.4km long >10ppb Au anomaly associated with a northeast trending structure. This area has an increased thickness of cover blanketing bedrock in this area and requires follow-up sampling.

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Figure 18: Recent soil sample results.

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AERIAL IMAGERY DATA ACQUISITION AND GEOPHYSICS INTERPRETATION

As part of a broader targeting study outside the Korong-Perseverance mineralised corridor, which has been the principal focus of historic exploration across the MGP, the Company is in the process of compiling aerial imagery and geophysics data extending beyond the limits the current data set which was obtained from the previous explorer DiscovEx Resources ( DCX ). This data set will form the basis of a major targeting study which will be used to generate a pipeline of new exploration targets for drill testing.

The acquisition of high-resolution aerial imagery covering ~390sqkm across the Monument, Fleming Bore and Smith Well tenement groups is in progress, with ground control points laid out and imagery to be captured via fixed-wing aircraft shortly.

The acquired data will be used for geology and structure interpretation, ground disturbance tracking for environmental and native title and drill collar validation. Further processing of specific portions of the data can be undertaken to generate accurate digital terrain models (DTM) suitable for future resource estimation.

Southern Geoscience Consultants ( SGC ) have been contracted to undertake a data acquisition, surface and bedrock geology interpretation and a targeting study across tenements granted and acquired since the previous targeting study was undertaken by DCX in 2017 (Figure 19).

The interpretation will include the compilation of open-file Sentinel Satellite, magnetic-radiometric and digital elevation model (DEM) data which will be used to generate surface geology (regolith) and bedrock geology maps with a structural interpretation delineating major regional lineaments, folds and faults followed by a prioritised list of exploration targets.

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Figure 19: Bedrock geology interpretation undertaken by Southern Geoscience on behalf of DCX in 2017 with bold green outline showing newly granted and acquired tenements included in new study.

FUTURE WORK PROGRAMS, WESTERN AUSTRALIA

Exploration activities at the MGP continue to identify new targets using geochemical sampling and the acquisition/interpretation of airborne geophysical data to delineate the geological framework fundamental to identifying mineralised gold systems. A Mineral Resource Estimate for Korong and Waihi is currently in progress . Outside the mineralised Korong-Perseverance corridor, the Company’s principal focus remains on syenite intrusion related gold deposits characteristic of the Laverton Gold District.

Based on a recent review of the historic database and interpretation of geophysics imagery, a 125 hole air core (AC) drill program has been designed across the MGP to test a number of intrusion-style targets which have been identified from a recent geophysics interpretation. The drill program will be the first of its kind across the MGP and was designed as part of Si6’s successful application for co-funded drilling through the West Australian Governments Exploration Incentive Scheme where 50% of direct drilling costs up to $75,000 will be reimbursed to the Company. Drilling is planned to start in September 2021 .

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The primary focus of the program is to map out the distribution of syenite intrusives prospective for bulk tonnage gold mineralisation, a number of which exist within the Laverton Tectonic Zone including Wallaby (~7Moz Au) and Jupiter (~1.5Moz Au). In addition to gold and multi-element assay analysis, end of hole samples will be analysed for whole rock geochemistry to characterise rock type. Samples will also undergo spectral analysis identify styles of alteration associated with intrusion related gold mineralisation.

Corporate & Administration

Cash Position

Si6 ended the June 2021 quarter with a cash position of $4.6 million .

Appointments

Subsequent to the quarter, Si6 announced the appointment of Mr Modisana Botsile as Strategic Advisor, Botswana. Modisana Botsile is a Botswana national who has previously spent a significant amount of time working with the Botswana Government in the Ministry of Mines, Energy and Water Resources. He has extensive experience in mineral exploration and development in both Botswana and Southern Africa. Mr Botsile holds a Master of Science in Minerals and Energy Economics from Curtin Graduate School of Business, Western Australia and also a Bachelor of Engineering (Hons)(Metallurgy and Materials Science Engineering) from Liverpool University, United Kingdom. Mr Botsile will primarily be responsible for assisting with licensing, project negotiations, government liaisons and project management for Si6 in Botswana.

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 on 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.

Annual General Meeting

The Board of Si6 Metals Ltd advises that the Annual General Meeting of the Company will be held on 16 November 2021. A notice of meeting for the Annual General Meeting will be prepared by the Company and will be announced to ASX and provided to the Shareholders in due course. The closing date for the receipt of nominations for the election of directors is at least 35 business days prior to 16 November 2021. Any nominations must be received no later than 5:00pm (AWST) at the Company’s Registered Office prior to this date.

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Additional ASX Information

ASX Listing Rule 5.3.1

Exploration and Evaluation during the quarter was $415,000 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 $53,472 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	Area sqkm	Renewal / Expiry Date	Percentage Holding	Comment
PL 110/1994	27	31/03/2018	60	Farm-in agreement with BCL Ltd, currently in liquidation with renewals suspended.
PL 111/1994	35	31/03/2018	60	Farm-in agreement with BCL Ltd, currently in liquidation with renewals suspended.
PL 54/1998	79	31/03/2018	60	Farm-in agreement with BCL Ltd, currently in liquidation with renewals suspended.
PL 59/2008	908	30/09/2016	100	Renewal application submitted 30/06/16, to be included in JV with BCL Ltd, currently in liquidation with renewals suspended.
PL 006/2021	460	30/06/2024	100	Active
PL 007/2021	256	30/06/2024	100	Active
PL 389/2018	40	30/09/2021	100	Active
PL186/2020	100	31/12/2023	100	Active
PL188/2020	210	31/12/2023	100	Active

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The mining tenement interests acquired or relinquished during the quarter and their location Not applicable

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.

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 (0)401 407 357 M: +61 (0)431 151 676 ph@si6metals.com victoria@nwrcommunications.com.au

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.

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ASX Announcement

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.

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

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 June 2021

Consolidated statement of cash flows	Current quarter $A’000	Year to date (12 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	- (415) - - (39) (191) - - (1) - - -	- (1,486) - - (214) (627) - - (2) - - 10
	(646)	(2,319)
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	- - (4) - - -	(150) - (49) - - -

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

Consolidated statement of cash flows	Current quarter $A’000	Year to date (12 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	- - - - - - - -	- - - - - - - -
	(4)	(199)
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	- - - - - - - - -	4,400 - 2,192 (315) - - - - -
	-	6,277
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)	5,209 (646) (4) -	800 (2,319) (199) 6,277

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

Consolidated statement of cash flows	Current quarter $A’000	Year to date (12 months) $A’000
4.5 Effect of movement in exchange rates on cash held 4.6 Cash and cash equivalents at end of period	-	-
	4,559	4,559
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)	4,559 - - -	5,209 - - -
	4,559	5,209
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 (53) 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 $53,472		(53)
		-

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) (646) (Payments for exploration & evaluation classified as investing activities) (item 2.1(d)) - Total relevant outgoings (item 8.1 + item 8.2) (646) Cash and cash equivalents at quarter end (item 4.6) 4,559 Unused finance facilities available at quarter end (item 7.5) - Total available funding (item 8.4 + item 8.5) 4,559 Estimated quarters of funding available (item 8.6 divided by item 8.3) 7 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?	(646) - (646) 4,559 -
		4,559
	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: 30 July 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.

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