WA1 RESOURCES LTD — Interim / Quarterly Report 2023

Apr 23, 2023

==> picture [596 x 84] intentionally omitted <==

----- Start of picture text -----

ASX RELEASE
----- End of picture text -----

24 APRIL 2023

QUARTERLY ACTIVITIES REPORT FOR PERIOD ENDING 31 MARCH 2023

West Arunta Project

• Single metre assay results from the three holes drilled at the Luni carbonatite confirmed significant near surface niobium enrichment is present

• Key high-grade intersection from each Luni hole:

• LURC001 from 167m: 3m at 3.1% Nb2O5 within an overall interval from 153m of 26m at 0.9% Nb2O5

• LURC002 from 31m: 6m at 2.3% Nb2O5 within an overall interval from 31m of 28m at 1.0% Nb2O5

• LURC003 from 40m: 7m at 3.50% Nb2O5 within an overall interval from 40m of 19m at 2.0% Nb2O5

• First indication of potential mineralised zonation with elevated Rare Earths values up to 2.4% TREO (LURC001: 2m from 35m) and Tantalum up to 814ppm Ta2O5 (LURC001: 1m from 26m)

• Detailed passive seismic and gravity surveys provided key datasets to assist drill targeting ahead of the 2023 field season

• Field season commenced in February with the completion of geophysical, remote sensing and heritage surveys, and mobilisation for earthworks and camp establishment

• Step out drilling commenced at the Luni carbonatite on 22 March 2023

Other Projects

• Interpretation of EM survey conducted at Hidden Valley Project ongoing

• Consultations to permit the commencement of exploration at the Madura Project are ongoing

Corporate

• Appointment of Tom Lyons as Executive Director

• Cash balance of approximately $10.4 million as at 31 March 2023

WA1 Resources Ltd ( ASX: WA1 ) ( WA1 or the Company ) is pleased to provide a report on its activities for the quarter ended 31 March 2023.

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

==> picture [206 x 75] intentionally omitted <==

==> picture [596 x 9] intentionally omitted <==

West Arunta Project (100% owned)

The West Arunta Project is located approximately 490km south of Halls Creek in Western Australia. It comprises the Pachpadra (containing the P2 carbonatite), Sambhar (Luni carbonatite) and Urmia prospect areas .

==> picture [451 x 361] intentionally omitted <==

Figure 1: Location of the West Arunta Project

Luni Assay Results

On 6 February 2023, the Company announced 1m interval assay results at the Luni target (RC drillholes LURC001 to LURC003 within the Sambhar Prospect area) following the discovery and announcement of 4m composite assays in November 2022 from the Company’s maiden exploration drill program.

A total of three RC holes were drilled for 803m, with all holes drilled to the maximum depth capacity of the rig. All holes were drilled vertically (with LURC001 deviating during drilling) to test the source of the approximately 3km long and 1km wide east-west gravity anomaly.

Elevated niobium, REE, tantalum and phosphorus mineralisation was encountered in all three drill holes. The downhole intersections suggest the intrusion has a lateral extent of at least 1.3km.

==> picture [596 x 10] intentionally omitted <==

==> picture [206 x 75] intentionally omitted <==

==> picture [596 x 9] intentionally omitted <==

==> picture [452 x 247] intentionally omitted <==

==> picture [452 x 247] intentionally omitted <==

Figures 2 & 3: Cross sections illustrating LURC001, LURC002, and LURC003, residual gravity 2.68g/cc density shell and downhole zonation

The Luni target is characterised by a discrete, high amplitude gravity anomaly with semicoincident magnetic responses occurring adjacent to the western and eastern ends and central to the gravity response. In addition, Luni is located proximal to the intersection of two key interpreted regional structural features.

==> picture [596 x 10] intentionally omitted <==

==> picture [206 x 75] intentionally omitted <==

==> picture [596 x 9] intentionally omitted <==

==> picture [452 x 242] intentionally omitted <==

Figure 4: Plan View of Luni Drill Collar Locations Combined gravity (resUC200m, colour) and magnetic (residual contours) anomaly images

For full details and Figure 4 sections refer to WA1’s ASX announcement on 6 February 2023.

Passive Seismic

On 1 March 2023 the company announced the results and interpretation from the Passive Seismic “horizontal to vertical spectral ratio” (passive seismic) survey completed in December 2022 at the Luni carbonatite discovery.

==> picture [452 x 236] intentionally omitted <==

Figure 5: Luni Passive Seismic and Gravity Cross-sections with Drill traces and Interpreted Bedrock Layer (dashed line)

Select passive seismic cross-sections with 2022 RC drill traces, logged lithology, and gravity (hvd) profile denoting possible extent of carbonatite intrusion

==> picture [596 x 10] intentionally omitted <==

==> picture [206 x 75] intentionally omitted <==

==> picture [596 x 9] intentionally omitted <==

Passive seismic results were interpreted to have mapped a laterally consistent interface which is coincident with the horizon of shallow enriched high-grade mineralisation at Luni and is associated with a distinct horizon between a strongly weathered and transitional carbonatite intrusion.

Passive seismic has been a key dataset in assisting the next phase of the exploration drill program at the Luni Carbonatite.

For full details refer to WA1’s ASX announcement on 1 March 2023.

Infill Gravity

On 7 March 2023 the Company released results and interpretation from the Infill gravity survey conducted at the Luni carbonatite in December 2022, which increased gravity station coverage to 100m x 50m from the previous 400m x 400m.

This additional dataset was interpreted to have defined the lateral extent of the intrusion as well as enhanced the confidence in the passive seismic in mapping the bedrock topography of the anomaly.

==> picture [452 x 231] intentionally omitted <==

Figure 6: Luni Gravity Anomaly with Magnetic Contours Combined gravity colour image (resUC200m) and magnetic anomaly contours with existing RC drill holes

The passive seismic results were also used to constrain the gravity data, providing a seethru to a very dense possible feeder zone at depth within the carbonatite at Luni.

==> picture [596 x 10] intentionally omitted <==

==> picture [206 x 75] intentionally omitted <==

==> picture [596 x 9] intentionally omitted <==

==> picture [452 x 246] intentionally omitted <==

Figure 7: Luni 3D Gravity Inversion Model

Gravity anomaly 3D inversion density model sections and high-density body shells with existing drill holes

For full details refer to WA1’s ASX announcement on 7 March 2023.

Other Projects

Hidden Valley Project (100% owned)

The Hidden Valley Project comprises one Exploration Licence located 150km south of Kununurra, Western Australia. The tenement lies within the Osmond Ranges on a major structural position straddling the Osmond Fault. The fault is a unique east-north-east trending structural domain immediately east of the Halls Creek Orogen.

The company completed an airborne electromagnetic survey at the Hidden Valley Project to test for bedrock conductive anomalies in Q4 2022. Interpretation of the results by a geophysical consultant is ongoing.

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.

During the quarter, the Company continued the process of negotiating heritage protection agreements, along with planning for potential initial exploration programs.

==> picture [596 x 10] intentionally omitted <==

==> picture [206 x 75] intentionally omitted <==

==> picture [596 x 9] intentionally omitted <==

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 tenements, where indicators for copper-gold source and host rocks is historically documented.

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.

==> picture [449 x 365] intentionally omitted <==

Figure 8: Madura Project tenements plan

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.

==> picture [596 x 10] intentionally omitted <==

==> picture [206 x 75] intentionally omitted <==

==> picture [596 x 9] intentionally omitted <==

Corporate

On 13 February 2023, it was announced Tom Lyons would transition from Non-Executive Director to an Executive Director. 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.

Mr Lyons was most recently Chief Development Officer of Agrimin Limited (ASX: AMN) where he led the acquisition of Agrimin’s world-class Mackay Potash Project and was 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 17% 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 8 March 2023 the company released its interim financial statements for the period ended 31 December 2022.

At quarter-end the Company held approximately $10.4 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 31 March 2023 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 31 March 2023
	$m	$m
Exploration and related expenses	2.8	2.2
Corporate and administration expenses	1.0	1.3
Reimbursement of West Arunta Project vendor	0.2	0.2
Costs of the Offer	0.4	0.4
General Working Capital	0.1	0.1
Total	4.5	4.2

The Company incurred $742,515 which for accounting purposes has been allocated to exploration and evaluation activities during the quarter and related to field work and consultants.

==> picture [596 x 10] intentionally omitted <==

==> picture [206 x 75] intentionally omitted <==

==> picture [596 x 9] intentionally omitted <==

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.

The Company currently believes it is 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 31 March 2023 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	69,063	115,104
Executive Director Fees	18,417	-
Non-Executive Director Fees	34,992	38,675
Company Secretarial Fees	12,431	12,431
Geological Consulting Fees	-	20,000
Accounting Services	11,519	17,277
Total payments to related parties of the entity and their associates	146,421	203,488

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 31 March 2023

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% -
E80/5860 West Arunta WA1 Application WA 100% -
E80/5861 West Arunta WA1 Application WA 100% -
E80/5862 West Arunta WA1 Application WA 100% -
E80/5865 West Arunta WA1 Application WA 100% -
E80/5866 West Arunta WA1 Application WA 100% -

==> picture [596 x 10] intentionally omitted <==

==> picture [206 x 75] intentionally omitted <==

==> picture [596 x 9] intentionally omitted <==

Tenement	Project	Holder	Status	Location	Current Interest	Nature of **Change **
EL33378 West Arunta WA1 Application NT 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 Granted WA 100% -
E69/4029 Madura WA1 Granted WA 100% -
E69/4102 Madura WA1 Application WA 100% -
E69/4103 Madura WA1 Application WA 100% -
E80/5651 Hidden Valley WA1 Granted WA 100% -

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.

==> picture [596 x 10] intentionally omitted <==

==> picture [206 x 75] intentionally omitted <==

==> picture [596 x 9] intentionally omitted <==

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 deposit in Western Australia’s under explored 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 most 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 forwardlooking information. The Company does not undertake

==> picture [284 x 389] intentionally omitted <==

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.

==> picture [596 x 10] intentionally omitted <==

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 31 March 2023

Consolidated statement of cash flows	Current quarter $A’000	Year to date (9 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	- - - - (194) (328) - 60 - - - 43	- - - - (473) (658) - 71 - - - 161
	(419)	(899)
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	- - - (742) - -	- (141) - (1,667) - -

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 (9 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	- - - - - - - -	- - - - - - - -
	(742)	(1,808)
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 – office lease repayment 3.10 Net cash from / (used in) financing activities	- - - - - - - - (19)	10,000 - - (546) - - - - (19)
	(19)	9,435
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)	11,585 (419) (742) (19)	3,678 (899) (1,808) 9,435

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 (9 months) $A’000
4.5 Effect of movement in exchange rates on cash held 4.6 Cash and cash equivalents at end of period	-	-
	10,405	10,405
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)	2,405 8,000 - -	2,585 9,000 - -
	10,405	11,585
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 1 146 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.		146
		-

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
		-	-
		-	-
		-	-
		-	-

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) (419) (Payments for exploration & evaluation classified as investing activities) (item 2.1(d)) (742) Total relevant outgoings (item 8.1 + item 8.2) (1,161) Cash and cash equivalents at quarter end (item 4.6) 10,405 Unused finance facilities available at quarter end (item 7.5) - Total available funding (item 8.4 + item 8.5) 10,405 Estimated quarters of funding available (item 8.6 divided by item 8.3) 9 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?	(419) (742) (1,161) 10,405 -
		10,405
	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.

Page 4

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: ......24 April 2023…......................................................

Authorised by: ..... The Board of WA1 Resources Ltd........................

(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