WA1 RESOURCES LTD — Interim / Quarterly Report 2022

Oct 18, 2022

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ASX RELEASE
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19 OCTOBER 2022

QUARTERLY ACTIVITIES REPORT FOR PERIOD ENDING 30 SEPTEMBER 2022

Highlights

West Arunta Project

• Completion of the maiden West Arunta Project drill program

• Preliminary observations are encouraging with significant zones of alteration and trace-sulphides observed

• Detailed geological interpretation is ongoing and assay results are expected shortly

Other Projects

• Design and planning of initial airborne electromagnetic survey at the Hidden Valley Project

• Madura Project consultations ongoing with the aim of entering into heritage agreements to permit exploration

Corporate

• Appointment of Tom Lyons as a Non-Executive Director

• Cash balance of approximately $2.7 million as at 30 September 2022

WA1 Resources Ltd ( ASX: WA1 ) ( WA1 or the Company ) is pleased to provide a report on its activities for the quarter ended 30 September 2022.

West Arunta Project (100% owned)

The West Arunta Project is located approximately 490km south of Halls Creek in Western Australia. It comprises the Pachpadra, Sambhar and Urmia prospect areas which contain significant geophysical anomalies interpreted to have the potential to host iron-oxide copper-gold ( IOCG ) mineralisation and other deposit styles .

WA1 RESOURCES LTD | ABN: 51 646 878 631 | WWW.WA1.COM.AU | ASX: WA1 WA1 RESOURCES LTD | ABN: 51 646 878 631 | WWW.WA1.COM.AU | ASX: WA1 A: L2 55 CARRINGTON ST NEDLANDS WA 6009 P: +61 8 6478 7866 E: INFO@WA1.COM.AU A: 2C LOCH ST, NEDLANDS WA 6009 P: +61 8 6478 7866 E: INFO@WA1.COM.AU

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Maiden West Arunta Drill Program - Overview

The drill program comprised seven RC holes for a total of 1,745 metres. Drilling provided an initial test of two target zones at the Pachpadra Prospect (P1 and P2 – the Duck) and the target zone at the Luni Prospect.

Prior to drilling, WA1 acquired and analysed a comprehensive, multi-layered dataset of new and historic geophysical data in the West Arunta. Drilling was then designed to test the peak of selected gravity and/or magnetic highs at each target zone, and the associated margins of the geophysical anomalies.

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Figure 1: Drill Collar Locations Combined gravity (resUC200m, colour) and magnetic (residual contours) anomaly images

Drill samples have been submitted for laboratory analysis and detailed reporting and follow-up plans will be completed on receipt of laboratory assays.

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Luni Target – Preliminary Overview

At the Luni Target, a total of three holes were drilled for 803 metres. All holes were drilled to the maximum depth capacity of the RC drill rig which varied due to the thickness of the cover sequence and downhole water pressure.

All three holes exhibited iron-oxidecarbonate alteration, with silicified zones often associated with trace sulphides. LURC001 encountered weakto-moderate hematite/goethite alteration, along with other styles of alteration, from 152 to 288 metres at end of hole, (note no determination is able to be made regarding true and apparent widths of the alteration).

While all drill holes intersected the top of the modelled gravity anomaly, at present it remains inconclusive as to whether the source of the intense density feature has been adequately tested and explained.

Figure 2: Alteration at LURC001 at 255m

P1 and P2 (the Duck) Targets – Preliminary Overview

At the Pachpadra prospect area, four holes were drilled for a total of 942 metres at two target zones; P1 and P2 (the Duck).

Three holes were drilled at the P1 target zone in a north-south oriented line. Occurring from north to south, drilling intersected metasediments, biotite garnet schist and a highly magnetic iron rich unit.

At P2 (the Duck), one hole was drilled to a depth of 216 metres on the eastern extent of a separate isolated gravity high. The feature, which exhibits subdued magnetics, is adjacent to a north-east trending shear.

At P1, drill holes are interpreted to have intersected the body of the modelled geophysical anomalies, with an association observed between the gravity anomaly and iron rich magnetite unit.

Geological interpretation of the samples from these drill holes is ongoing and these observations are preliminary in nature.

For full details refer to WA1’s ASX Announcement on 18 August 2022.

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West Arunta Project Overview

Prior to WA1 acquiring the West Arunta Project in 2021, the Company’s tenements had limited historical exploration, largely in the form of reconnaissance airborne geophysics, limited ground geophysical surveys, and surface sampling.

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Figure 3: West Arunta Project Location

The West Arunta region has experienced limited exploration with drilling on the West Arunta Project tenement limited to a single historic diamond hole drilled in 2010, which indicated potential for IOCG style mineralisation. Since 2010, the region has seen low levels of exploration until recently when two key events provided renewed significant validation for the area’s exploration potential.

In late 2020, Encounter Resources Limited ( ENR ) drilled a single diamond hole proximal to WA1’s West Arunta Project which successfully intersected hydrothermally altered mafic intrusions with a distinctive IOCG geochemical signature and altered potassic granite (refer to ENR’s ASX announcement on 11 February 2021 for further details).

In early 2021, Rio Tinto Exploration Pty Ltd applied for significant tenement landholdings in the West Arunta and entered into a staged A$58.5 million farm-in and joint venture agreement in five tenements to the south held by Tali Resources Pty Ltd. These tenements

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are contiguous with WA1’s West Arunta Project (refer to Agrimin Limited’s ASX announcement on 12 March 2021 for further details).

Other Projects

Hidden Valley Project (100% owned)

The Hidden Valley Project comprises one Exploration Licence application located 150km south of Kununurra, Western Australia. The tenement lies within the Osmond Ranges and on a major structural position straddling the Osmond Fault. The fault is a unique eastnorth-east trending structural domain immediately east of the Halls Creek Orogen and along strike from IGO Limited’s ( IGO ) Osmond Valley Project.

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Figure 4: Hidden Valley Project tenement plan

No work has been completed in the tenement area since 2007, at which time airborne GEOTEM data collected by BHP in 1996 was reanalysed. This work concluded that the key anomalies in the region, known as the Osmond Pipes ( Figure 5 ), are “wide conductive targets within an extensive zone (possibly middle Proterozoic rocks)” and were recommended for “further evaluation by way of additional electromagnetic ( EM ) surveys” (refer to WAMEX Report A78887 by Osmond Range Resources Pty Ltd for full details). In

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addition, these anomalies, which sit at the intersection of the Osmond Fault and Argyle Corridor, were concluded to be of potential ultramafic source.

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Figure 5: Hidden Valley Tenure over Regional TMIRTP

While several anomalous indicators of nickel, copper and gold mineralisation have been identified through earlier broad geochemical surveys in the region, no modern gravity or EM surveys have been completed and no drilling has been undertaken.

Accordingly, the adoption of EM geophysical techniques will assist with rapidly evaluating the nickel-copper intrusion model, as well the sediment hosted massive sulphide lead-zincsilver and diamond-bearing Kimberlite pipe model for which potential also exists. Planning of initial exploration programs is underway and will consist of an airborne EM survey.

Madura Project (100% owned)

The Madura Project tenements are located approximately 540km east of KalgoorlieBoulder, with non-contiguous tenements extending to near the Western Australian south coast. The exploration project consists of five granted Exploration Licences and two Exploration Licence applications in the Madura Province of south-eastern Western Australia.

The Company is currently in the process of negotiating and entering into heritage protection agreements, and is planning initial exploration programs.

Historical exploration on the tenements, prior to WA1’s applications in 2021 included airborne geophysical surveys and a regional stratigraphic hole by the Geological Survey of Western Australia. Much of this work was concentrated around the northern most tenement, where indicators for copper-gold source and host rocks is historically documented.

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Figure 6: Madura Project tenements plan

There is potential for copper-gold mineralisation of an IOCG affinity and other styles of mineralisation, and this is the basis for the initial proposed exploration program within the project area.

New Project Generation

While the Company is focused on advancing exploration at its existing projects, ongoing efforts continue to be made to identify and assess new opportunities to enhance the Company’s exploration portfolio.

Corporate

On 1 July 2022, Tom Lyons was re-appointed as a Non-Executive Director of WA1. Mr Lyons has international experience in the resources industry covering mineral exploration through to project development. He has broad experience in a range of commodities including industrial and agricultural minerals, precious and base metals, and bulks.

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Mr Lyons is currently Chief Development Officer of Agrimin Limited (ASX: AMN) where he led the acquisition of Agrimin’s world-class Mackay Potash Project and has since been responsible for leading the project through its exploration, feasibility and permitting phases.

He is also Managing Director of Tali Resources Pty Ltd ( Tali ) which is a 19% shareholder in WA1. Tali is currently undertaking large-scale exploration efforts in the West Arunta region which is subject to a $58.5 million dollar Farm-in and Joint Venture Agreement with Rio Tinto Exploration Pty Ltd.

Mr Lyons holds a Bachelor of Science (Geology) degree from the University of Western Australia, is a Graduate Member of the Australian Institute of Company Directors and is a Member of the Australian Institute of Geoscientists.

On 16 September and in accordance with ASX Listing Rule 3.13.1, the Company advised that its Annual General Meeting would be held on or around Monday, 7 November 2022.

On 20 September, the Company released its audited 2022 Annual Report.

At quarter-end the Company held approximately $2.7 million in cash.

Summary of Expenditure Incurred on Activities & Use of Funds Comparison

As required by the ASX Listing Rules, WA1 provides a comparison of actual expenditure to 30 September 2022 against the estimated expenditure set out in the Company’s Prospectus dated 29 November 2021.

Table 1: Use of Funds Comparison

Use of Funds (2yr estimate, refer to section 2 of the WA1 Prospectus)	Prospectus Estimated Use of Funds	Actual to 30 September 2022
	$m	$m
Exploration and related expenses	2.8	1.2
Corporate and administration expenses	1.0	0.6
Reimbursement of West Arunta Project vendor	0.2	0.2
Costs of the Offer	0.4	0.4
General Working Capital	0.1	-
Total	4.5	2.4

The Company incurred $729,151 which for accounting purposes has been allocated to exploration and evaluation activities during the quarter related to field work and consultants.

Other than as referred to above, no expenditure was allocated to development activities during the quarter. The Company’s focus remains on planning and executing exploration activities.

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The Company currently believes it is still on track to meet its expenditure forecasts.

Payments to Related Parties of the Entity

A description of and explanation for payments to related parties and their associates per Section 6.1 of the Appendix 5B for the quarter ending 30 September 2022 is set out below.

Table 2: Payments to Related Parties of the Entity and their Associates

Item	Current Quarter	Previous Quarter
	$	$
Managing Director Salary & Superannuation	55,250	55,000
Non-Executive Director Fees	38,675	38,500
Company Secretarial Fees	12,431	12,375
Tom Lyons Consulting Fees	3,750	-
Accounting Services	18,000	18,000
Total payments to related parties of the entity and their associates	128,106	123,875

Tenement Interests

In accordance with the ASX Listing Rules, WA1 provides the following information in relation to its tenement holdings.

Table 3: Schedule of Tenement Interests as at 30 September 2022

Tenement	Project	Holder	Status	Location	Current Interest	Nature of **Change **
E80/5173 West Arunta WA1 Granted WA 100% -
E80/5646 West Arunta WA1 Granted WA 100% -
E80/5656 West Arunta WA1 Granted WA 100% -
E80/5752 West Arunta WA1 Application WA 100% -
E80/5753 West Arunta WA1 Application WA 100% -
E69/3843 Madura WA1 Granted WA 100% -
E69/3844 Madura WA1 Granted WA 100% -
E69/3854 Madura WA1 Granted WA 100% -
E69/3855 Madura WA1 Granted WA 100% -
E69/3861 Madura WA1 Granted WA 100% -
E69/4028 Madura WA1 Application WA 100% -
E69/4029 Madura WA1 Application WA 100% -
E80/5651 Hidden Valley WA1 Granted WA 100% -

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ENDS

For further information, please contact:

Investors

Media

Paul Savich Michael Vaughan Managing Director Fivemark Partners T: +61 8 6478 7866 T: +61 422 602 720 E: psavich@wa1.com.au E: michael.vaughan@fivemark.com.au

Or visit our website at www.wa1.com.au

Authorised for market release by WA1’s Board.

Competent Person Statements

The information in this announcement that relates to Exploration Results is based on information compiled by Ms. Stephanie Wray who is a Member of the Australian Institute of Geoscientists. Ms. Wray is a full time employee of WA1 Resources Ltd and has sufficient experience which is relevant to the style of mineralisation under consideration to qualify as a Competent Person as defined in the 2012 Edition of the “Australian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves”. Ms. Wray consents to the inclusion in the announcement of the matters based on her information in the form and context in which it appears.

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About WA1

WA1 Resources Ltd is based in Perth, Western Australia and was admitted to the official list of the Australian Securities Exchange (ASX) in February 2022. WA1’s shares are traded under the code WA1.

WA1’s objective is to discover a tier 1 mineral deposit in Western Australia’s underexplored regions and create value for all stakeholders. We believe we can have a positive impact on the remote communities within the lands on which we operate. We will execute our exploration using a proven leadership team which has a successful track record of exploring in WA’s remote regions.

Forward-Looking Statements

This ASX Release may contain certain “forward-looking statements” which may be based on forward-looking information that are subject to a number of known and unknown risks, uncertainties, and other factors that may cause actual results to differ materially from those presented here. Where the Company expresses or implies an expectation or belief as to future events or results, such expectation or belief is expressed in good faith and believed to have a reasonable basis. For a more detailed discussion of such risks and other factors, see the Company’s Prospectus and Annual Reports, as well as the Company’s other ASX Releases. Readers should not place undue reliance on forward-looking information.

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The Company does not undertake any obligation to release publicly any revisions to any forward-looking statement to reflect events or circumstances after the date of this ASX Release, or to reflect the occurrence of unanticipated events, except as may be required under applicable securities laws.

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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 WA1 Resources Ltd ABN Quarter ended (“current quarter”) 51 646 878 631 30 September 2022

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 (net GST receivable) 1.9 Net cash from / (used in) operating activities	- - - - (106) (161) - 3 - - - 36	- - - - (106) (161) - 3 - - - 36
	(228)	(228)
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	- - - (729) - -	- - - (729) - -

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 (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	- - - - - - - -	- - - - - - - -
	(729)	(729)
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)	3,678 (228) (729) -	3,678 (228) (729) -

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 (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	-	-
	2,721	2,721
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)	2,721 - - -	3,678 - - -
	2,721	3,678
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 1 124 6.2 Aggregate amount of payments to related parties and their associates included in item 2 4 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.		124
		4

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

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
		-	-
		-	-
		-	-
		-	-

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) (228) (Payments for exploration & evaluation classified as investing activities) (item 2.1(d)) (729) Total relevant outgoings (item 8.1 + item 8.2) (957) Cash and cash equivalents at quarter end (item 4.6) 2,721 Unused finance facilities available at quarter end (item 7.5) - Total available funding (item 8.4 + item 8.5) 2,721 Estimated quarters of funding available (item 8.6 divided by item 8.3) 2.84 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?	(228) (729) (957) 2,721 -
		2,721
	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:

...................................................................................

Authorised by: ...................................................................................

(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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