ZEUS RESOURCES LIMITED — Interim / Quarterly Report 2021

Jul 29, 2021

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QUARTERLY ACTIVITIES REPORT

For the period ending 30[th] June 2021

The Board of Zeus Resources Limited is pleased to release its fourth Quarterly Activities Report of 2020-2021 Financial Year covering the period ending 30 June 2021.

Highlights

• The Company completed a Placement through which it raised $810,000 in the month of June;

• The Company successfully controlled operating costs within its budget during the relatively slow-moving mining market in the past year. As the mining market is showing signs of recovery, the Company is currently taking a proactive approach to carry out its regular business and pursue new projects;

• The Company will keep investigating new mining projects in uranium, gold, copper, and other metals. The project locations will not be limited to Australia, countries located in Southeast Asia and Africa will be also considered;

• The Company is currently investigating one uranium project in Malawi, and one quartz project in Vietnam; and

• The Board is in process of reviewing all its tenements and updating the exploration plans accordingly. The Company hopes if the COVID-19 pandemic is effectively controlled, and personnel are fully vaccinated, it will consider launching exploration work for the Western Australia projects in early 2022.

Corporate and Financial

• The Company has raised $810,000 via a Placement of 27 million fully paid ordinary shares (“ Shares ”) at 3 cents per share to new investors (“ Placement ”). Subject to and conditional on shareholders’ approval, the Placement investors will receive one unquoted non-transferable option for every three Shares acquired under the Placement (“ Attaching Options ”). On valid exercise, the Attaching Options will allow the option holder to have issued to them one Share for every Attaching Option and have an exercise price of 10 cents per option with a term of 12 months from the issue of the options;

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• The Company has signed a one-year agreement with Cloud Securities. Cloud Securities is a Singapore based company that specialises in assisting mining and exploration companies with their business development.

Under the terms of the agreement, Cloud Securities:

• ✓ agrees to locate and introduce to the Company, prospective new potential mining tenements and/or projects both in Australia and/or internationally that the Company may choose to acquire an interest in so as to progress its plans to develop an operating mine (Projects);

• ✓ agrees to bring to the Company a minimum of three potentially prospective new mining projects for their perusal within 12 months of executing the agreement; and

• ✓ represents and warrants that it has given a binding commitment to the Placement lead manager to acquire any Shares not taken up under the Placement and undertakes to ensure that this commitment is not terminated before the issue of the Shares under the Placement;

• Under the terms of the agreement, the Company agrees that, subject to and conditional on the Company’s shareholders’ approval, formal legal documentation and relevant disclosures, it will issue to Cloud Securities, or their designated nominees (as approved by the Company), 12 million unquoted non-transferable options which allow the option holder to have issued to them one Share in the Company per option at an exercise price of A$0.03 per option and an exercise period of 6 months from the issue of the options (“ Contractor Options ”). Shareholders’ approval under ASX Listing Rule 7.1 for the Contractor Options is intended to be obtained at the same time as the Attaching Options;

• Quarterly administrative and other operational expenditures are within budget;

• The Company’s consolidated statement of cash flows for the Quarter is set out in Appendix 5B. At the end of the Quarter the consolidated entity had $1,519m with no debt;

• ZEU confirms it is not aware of any new information or data that materially affects the information included in the original market announcements previously lodged with ASX;

• During the quarter, $25,000 was paid to related parties and their associates. There payment related to director fees and executive directors’ salaries;

• In March 2021, the Company received a letter from ASX regrading Listing Rule 12.1 requesting to demonstrate compliance with this rule to ASX’s satisfaction by 3 September 2021. ASX Listing Rule 12.1 provides that the level of an entity’s operations must in ASX’s opinion, be sufficient to warrant the continued quotation of the entity’s securities and its continued listing. ASX has advised that if the Company does not comply with this rule by 3 September 2021, ASX may suspend ZEU’s securities from official quotation. To demonstrate compliance, the Company has been actively planning to source fieldwork on tenements and

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introducing new exploration projects and has successfully completed a Placement to raise funds for the exploration of its WA projects for the next period and started investigations on new projects. The Board are currently working on preparing a detailed schedule of plans and explorations activities to present to ASX by 3 September 2021.

Tenement Status

No Changes to Zeus’ granted tenement holdings occurred during the Quarter. Tenements are shown in Figure 1 and detailed in Table 1.

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Figure 1. Zeus Resources Tenement Location Map

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Region	Project	Tenement	Status	Holder	Operator	Comments
Wiluna	Lake Way	E 53/1603	Granted	Zeus Resources Ltd	Zeus Resources Ltd
Narnoo	Narnoo South	E 28/2097	Granted	Zeus Resources Ltd	Zeus Resources Ltd
Gascoyne	Mortimer Hills	E 09/2147	Granted	Zeus Resources Ltd	Zeus Resources Ltd

Table 1. Zeus Resources Licence Details

Exploration Program

No fieldwork was completed during the Quarter on the tenements managed by Zeus Resources Ltd. After the placement in June 2021, the Board is reviewing all its tenements and updating the exploration plan accordingly. The company hope if the COVID-19 pandemic is effectively controlled, and personnel are fully vaccinated, it will consider launching exploration work for the Western Australia projects in early 2022.

Wiluna Project

The Wiluna Project comprises one exploration licence, E53/1603 covering part of the Kukkuburra Palaeochannel. The Board is updating the exploration plan of the Wiluna Project (E53/1603) uranium prospect and will implement the field work if the restrictions of COVID-19 pandemic is removed.

Narnoo Project

The Narnoo Project comprises one exploration Licence, E28/2097. The company has lodged the application of renewal for another two years on 4th May 2021. The Board is updating the exploration plan of the Narnoo South project (E28/2097) uranium prospect and will implement the field work if the restrictions of COVID-19 pandemic is removed.

Gascoyne Project

The Gascoyne Project comprises one exploration licence, E09/2147. No field exploration activities were undertaken by Zeus within E09/2147 during the quarter. The Board is updating the exploration plan of the Gascoyne Project (E09/2147) and will implement the field work if the restrictions of COVID-19 pandemic is removed.

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Competent Person Statement:

Information in this release that relates to Exploration Results is based on information compiled by Mr Andrew Rust, who is a Member of the Australian Institute of Mining and Metallurgy (AusIMM). Mr Rust is a full-time employee of Shearwater Australia Proprietary Limited. Mr Rust is engaged by Zeus Resources Limited as an independent consultant. Mr Rust has sufficient experience which 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 Reporting of Exploration Results, Mineral Resources and Ore Reserves’. Mr Rust consents to the inclusion in this release of the matters based on his information in the form and context in which it appears.

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