Announcement PDF Sultan Resources ACN: 623 652 522 CORPORATE DETAILS ASX Code: SLZ DIRECTORS JEREMY KING CHAIRMAN STEVE GROVES NON-EXECUTIVE DIRECTOR ASX ANNOUNCEMENT 30 January 2024 DECEMBER QUARTERLY REPORT For the period 1 s t October – 31 s t December 2023 DAVID LEES NON-EXECUTIVE DIRECTOR CONTACT Suite 11 23 Railway Road Subiaco WA 6008 www.sultanresources.com.au Sultan Resources Limited (“SLZ” or “the Company”) is pleased to provide shareholders with the following update for the Company’s activities for the quarter ended 31st December 2023. WA PROJECTS LAKE GRACE PROJECT The Lake Grace Project consists of five large tenements (E70/5081, 5082, 5085, 5095 and 5179- refer Figure 5) in the Southwest Terrane of Western Australia, containing the Calesi Ni Prospect and Kulin Hill Ni-Co Project in the North, and the Lake Grace Gold Project in the South, surrounding the Griffin’s Find Gold Mine. Calesi Ni Prospect- Rio Farm-in Tenement (E70/5082) Rio Tinto Exploration Pty Limited (RTX) and Sultan have entered into option to farm-in and joint venture agreement in respect of E70/5082, a portion of Sultan’s Lake Grace tenure (refer ASX announcement 21/6/2023). The agreement allows RTX to undertake preliminary exploration during an initial option period and then earn an 80% interest in E70/5082 by way of $2m of exploration spend within 5 years, with Sultan retaining full ownership of its principal area of focus to date (Kulin Hill tenure on E70/5095). Previously, RTX had identified a strong untested late time conductivity anomaly from a single line SKYTEM response in the northern part of E70/5082, from 20km line-spaced data, coincident with a circular magnetic and radiometric anomaly, which formed the basis for RTX’s entry to the option and farm-in arrangement. In mid-August 2023, NRG Geophysics were contracted to fly a detailed (100m line-spaced) helicopter-borne time-domain electromagnetic (HTDEM) survey totalling around 80 line km over an area approximately 4km SW of the wheatbelt town of Kulin (refer Figures 4, 5). The Company subsequently released images and interpretation of the data by the Company and RTX, with the heli-borne EM survey outlining a significant EM response over 750m in length and 230m in width, which may resolve to two targets with further investigation (refer Figures 1 & 2), characterised by a strong late-time signal. The Company and RTX consider the geological setting and EM response is suggestive of potential for magmatic nickel sulfide mineralisation (refer Figure 2). Preliminary modelling of the target was completed by RTX consultants, with target depths for modelled plates starting from approximately 70m below surface. Planning for initial RC Drilling to confirm the nature of the geophysical anomaly has been completed, with a Programme of Works (PoW) submitted to DMIRS and since approved, providing for 2 Reverse Circulation (RC) holes holes (refer Figure 1 inset) to test the anomaly for proof of concept, followed by up to 30 diamond holes if required. The RC holes are nominally planned to for depths of up to 350m, are designed to penetrate the modelled target from 70m vertical and are intended to confirm the geometry of the anomaly ahead of potential follow-up diamond drilling. ASX ANNOUNCEMENT –30 JANUARY 2024 The PoW covers the anomaly south of the Tier 3 Railway Reserve for the Jitarning-Kulin rail line, closed since 2013. Planned holes are outside the 30m buffer of the Railway Reserve, as required by the condition of Grant of E70/5082, until written consent from the Minister responsible for the Act is granted. The Company is currently applying for Ministerial permission under the 1978 Mining Act to undertake drilling within 30m of the Railway Reserve, and from within the Railway Reserve itself. RTX have formally exercised their option to earn in to 80% of Calesi, and will be sole-funding the drilling campaign, to be managed by Sultan. Drilling of the anomaly is planned for February 2024, and currently only subject to heritage clearance from the local Ballardong People Agreement Group. Figure 1: Channel 24Z EM response image overlain on aerial photography, with tenement E70/5082 highlighted. EM data also indicates the position of the Tier3 Jitarning-Kulin rail line, closed since 2013. Initial planned 2 hole RC drill traverse highlighted in inset. page 2 ASX ANNOUNCEMENT –30 JANUARY 2024 Figure 2: Channel 34Z EM response image overlaying greyscale aeromagnetics from Sultan 2017 survey. Original SKYTEM line denoted by light blue flight line. Section Line A -B for Figure 3 below highlighted in white. Flight lines are 100m spacing. Figure 3: AEM conductivity response for Heli-EM flight line over E70/5082, for section line A- B Figure 2. page 3 ASX ANNOUNCEMENT –30 JANUARY 2024 Figure 4: Calesi prospect in relation to Kulin township, with location of recently granted tenements E70/6529-31 Figure 5: Overview Plan of Sultan’s Kondinin-Lake Grace Project in the Southwest Terrane of WA, with RTX farm-in/JV tenement E70/5082 and current area of interest highlighted. page 4 ASX ANNOUNCEMENT –30 JANUARY 2024 Previous ASX announcements related to this Project are listed below: SLZ:ASX announcement 21/06/23: “Rio Tinto and Sultan enter into Option and JV Agreement” SLZ:ASX announcement 16/08/23: “Helicopter EM Survey Commences at Rio-Sultan Ground” SLZ:ASX announcement 24/10/23: “EM Survey Confirms Significant Geophysical Anomaly” SLZ:ASX announcement 14/12/23: “Calesi Nickel Prospect Update” Kulin Hill Nickel-Copper-PGE Project (E70/5095) Sultan’s principal area of focus is the Kulin Hill Nickel-Copper-PGE Project on E70/5095, where a greater than 2km long/700m wide ultramafic/mafic package, characterised by a strong magnetic signal coincident with a salt lake surface expression is under investigation. The potential for Ni-Co sulfide mineralisation was suggested by historical drilling conducted on the edge of the sequence in 1967 and 1973, where drill core samples were observed in polished sections containing “…less than 1% of a nickel-cobalt-sulphide mineral (approximately 50% Ni, 5% Co)4”. Observations from the historical drilling also supported some fractionation of the ultramafic at depth; that is, towards the untested central portion of the sequence. Figure 6: Plan view of 1VD magnetic signature representing the ultramafic sequence overlain by aerial photography highlighting the salt lake, with Reserve 18455 (Lot 225568) highlighted in red. Sultan’s 2022 aircore collars are marked in orange, and previous diamond drilling traces in yellow, with recent SLGDD001 named. Orange circles and traces indicate provisional drilling collar positions to test the layered intrusion from the salt lake surface. page 5 ASX ANNOUNCEMENT –30 JANUARY 2024 Previous 2022 aircore drilling from available sites at the project by Sultan returned anomalous results of Ni, Cr, Mg, Fe, S and Co consistent with weathered ultramafic lithologies. The Company contends that further drilling into the ultramafic sequence will support that it is fertile and can host precipitated Ni-Co sulfides. Sultan drilled stratigraphic drill hole SLGDD001 in late 2022 to partially test a portion of the Kulin Hill magnetic anomaly (refer Figure 6). The thick intersection of layered ultramafic geology, along with evidence for the potential remobilisation of sulfides from an ultramafic source in SLGDD001 confirmed the prospectivity of the 2.2km long main target for Ni-Co mineralisation. Interpretation of the geology of the sequence is ongoing. Access to Reserve 18455 As previously advised, negotiations to access the full extent of the target area for drilling, the majority of which extends beneath salt lake Reserve 18455 (refer Figure 6), have been ongoing since early 2022, with the Company receiving confirmation of access from DMIRS during late last year; however ground conditions have been unsuitable since receiving permission to drill. The Company undertook a ground traverse of the lake during the quarter which was mostly accessible by foot, but would require additional drying to allow for drilling access. The Company is working an alternative all-weather drilling collar to effectively test the target should access to the salt lake not be available. The Company remains in communication with a suitable diamond drilling contractor with suitable depth and low angle capacity, small footprint including lightweight tracked mobility, and solids and water management capacity to responsibly undertake this work. 4. A Report 7659 “Final Report Corrigin Project, Electrolytic Zinc Company of Australasia Limited” dated 1973 For further detail on the Kulin Hill/ Lake Grace Nickel Project please refer to the following: Sultan (ASX:SLZ) ASX Announcement: 2021 “WA Nickel Project Update” dated 3/06/2021 Sultan (ASX:SLZ) ASX Announcement: 2021 “Drilling for WA Julimar-style Nickel Targets to Commence” dated 23/11/2021 Sultan (ASX:SLZ) ASX Announcement: 2021 “Aircore Drilling Commenced at Lake Grace” dated 16/12/2021 Sultan (ASX:SLZ) ASX Announcement: 2022 “Aircore Drilling Recommences at Lake Grace” dated 12/01/2022 Sultan (ASX:SLZ) ASX Announcement: 2022 “Exploration Update” dated 3/02/2022 Sultan (ASX:SLZ) ASX Announcement: 2022 “Aircore Results for Kulin Hill NI-Sulphide Target Received” dated 4/05/2022 Sultan (ASX:SLZ) ASX Announcement: 2022 “Sultan to Drill Nickel Targets” dated 22/06/2022 Sultan (ASX:SLZ) ASX Announcement: 2022 “Diamond Drill Hole Commences at Kulin Hill Nickel Project” dated 14/10/2022 Sultan (ASX:SLZ) ASX Announcement: 2022 “Diamond Drill Hole Completed at Kulin Hill Nickel Project” dated 16/11/2022 Sultan (ASX:SLZ) ASX Announcement: 2023 “Initial Geochemistry Confirms Target Geology at Kulin Hill” dated 17/02/2023 Sultan (ASX:SLZ) ASX Announcement: 2023 “Kulin Hill Nickel - Diamond Hole Confirms Prospectivity” dated 19/04/2023 Lake Grace Gold Project (E70/5081, E70/5085, E70/5179) No active fieldwork undertaken during the quarter. E70/5081, E70/5082, E70/5085 and E70/5095 have recently been extended for an additional five year terms. A Five Year extension of Term submission is currently in preparation for E70/5179. THADUNA PROJECT (E52/3481) No active fieldwork undertaken during the quarter. page 6 ASX ANNOUNCEMENT –30 JANUARY 2024 CANADIAN LITHIUM PROJECTS Sultan continued on ground exploration at one of its two 100% owned lithium projects in Ontario, Canada, with assays reported from the Ruddy Project, with low K/Rb ratios established for high proportion of pegmatites sampled, and a priority lithium target area identified within an interpreted ‘Goldilocks’ Zone for further work confirmed and refined. RUDDY PROJECT At Ruddy, the Company has established a priority exploration target from the interpreted LCT Goldilocks Zone surrounding the Allison Lake Batholith which covers approximately 3.5km of east-west strike in the centre to south of the Company’s Project. After receipt of the assays, the results supported a priority zone of interest within the original LCT Goldilocks interpretation, radially distributed from the northern portion of the Allison Batholith, and highlight a priority target (Refer Figures 7-11) for further assessment in the SE portion of the Ruddy tenure. As access to Kember could not be finished prior to the end of the Canadian field season, no active field work was undertaken during the quarter. Photo 1. Aerial view across Ruddy Project looking East, Ruddy Lake in background. KEMBER PROJECT At the Kember Project (refer Figure 5 &7), the Company had previously advised that a desktop review highlighted a series of pegmatitic granite occurrences in mapping previously conducted at its Kember Project, noted across an area around seven km in length and typically over a kilometre in width. These will form a focus of initial exploration activities at the Kember Project. The Company has opted to delay reconnaissance activities at Kember after one of four First Nation groups with established rights in the area requested additional time to inform its members of planned activities, which could not be resolved before the onset of the Canadian winter and the cessation of the current field season. The Company continues to negotiate directly with this and other FN group and will deliver a revised timetable for the first pass reconnaissance exploration of Kember in due course, ideally to combine with additional groundwork at the priority target at Ruddy, which can be combined in daily helicopter flights out of Red Lake, ON. page 7 ASX ANNOUNCEMENT –30 JANUARY 2024 Figure 7: Li20 Assays reporting above 100ppm at Ruddy Project in relation to tenure (refer Table 1). Priority Zone area of focus for LCT Pegmatites in hatched area Figure 8: Pegmatite locations demonstrating lower K/Rb ratios (refer Table 2), considered indicative of more evolved pegmatitic occurrences, and a vector for LCT pegmatite mineralisation. page 8 ASX ANNOUNCEMENT –30 JANUARY 2024 Figure 9: All sampled sites at Ruddy Project from June 2023 reconnaissance, includes reclassified pegmatitic occurrences. Figure 10: Pegmatite sites at Ruddy Project; evolved pegmatites with fractionation minerals denoted by darker blue locations. Geology after Fingus, 2022. page 9 ASX ANNOUNCEMENT –30 JANUARY 2024 ABOUT THE RUDDY LITHIUM PROJECT The Ruddy Project (Figures 7-12) directly abuts ground to the west held by Green Technology Metals Limited (ASX: GT1) and is located in the province of Ontario about 162km north-north-east of the town of Dryden. The Project covers around 10km2 and sits on the northern extremity of the Allison Lake Batholith, a fertile intrusive responsible for the development of proximal fractionated pegmatites with potential to host lithium, caesium and tantalum (LCT) mineralisation1,2,3. Although there has been limited exploration over the Ruddy Project claims, previous study of the area by the Ontario Geological Survey (Breaks et al 20032) described the margin of the Allison Lake Batholith at the time as “…an important new exploration target for rare-element mineralization and is the largest such granite thus far documented in Ontario…”. Breaks et al 20032 considered the margin of the Batholith had high potential for further discoveries of rare element mineralization that could occur in exo-contact, metasedimentary-hosted pegmatites or as internal pegmatites within the parent granite, particularly in light of the common regional zonation sequence of rare-element pegmatites from beryl-rich into lithiumrich types. This typically includes spodumene-type pegmatites in an interpreted ‘LCT Goldilocks Zone’ of increased fractionation from the parent granite. With recent renewed interest in rare element mineralisation, the prospective Allison Batholith has emerged as a fully staked, multi-company, battery mineral exploration region. Reports by Green Technology Metals3 describe the identification of the spodumene-bearing Ouroboros Pegmatites approximately 10km southwest of the Ruddy Project (refer Figure 12) in a similar geological setting, which the Company considers highly encouraging. The Company is focusing exploration at Ruddy at outcrop within the interpreted LCT Goldilocks Zone surrounding the Allison Lake Batholith, covering approximately 3.5km of east-west strike in the centre to south of the Company’s Project. ABOUT THE KEMBER LAKE LITHIUM PROJECT The Kember Project (Figures 5 and 7) is located in the province of Ontario about 180km north of the town of Red Lake, covering an area of around 30km2. Demonstrating the prospectivity of this area, the Kember Project is located about 8km from the PAK/Bolt/Spark lithium deposits of Frontier Lithium Inc. (Frontier) and is contiguous with this project tenure. Recent drilling by Frontier intersected 398.25m of pegmatite averaging 1.88% Li2O, including a 23.4m zone of 3.12% Li2O (see TSX.V Announcement 8/02/2023). Frontier have also recently announced resources totalling 58.5Mt @ 1.51% Li2O from its most recent NI43-101 instrument effective April 28th 2023, calculated from two of four known spodumene-bearing pegmatite occurrences within its PAK Project holdings. There has been no recorded exploration over the Kember Project area, however, mapping by the Geological Survey of Ontario has historically recorded the presence of pegmatitic granites over a northwest to southeast zone around seven km in length and typically over a kilometre in width, providing an initial zone of interest. These pegmatitic granites will be the focus of initial reconnaissance of 5 to 7 days duration, with four helicopter-supported geologists from Canadian-based experienced geological consultants, APEX Geoscience conducting mapping and sampling of priority outcrop. The Company considers rare element mineralisation can occur associated with internal pegmatites within the parent granite. The Company will also conduct reconnaissance of the eastern edge of the project, closer to changes in granitic composition and contact morphologies. References 1. Fingas, J, 2022: Assessment Report on Crown Land for the Costello Lake Area – 2021 Prospecting Program, dated May 25th 2022 2. Breaks, F.W., J.B. Selway J.B and A.G. Tindle A.G. 2003, Ontario Geological Survey, Open File Report 6099, Fertile Peraluminous Granites and Related RareElement Mineralization in Pegmatites, Superior Province, North-West and North-East Ontario: Operation Treasure Hunt 3. Green Technology Metals (ASX:GT1) ASX Announcement: “Strategic lithium footprint substantially expanded” dated 24/01/2022 page 10 ASX ANNOUNCEMENT –30 JANUARY 2024 Figure 11: Location of Kember and Ruddy Projects in relation to known Lithium deposits, Northwest Ontario N.B. PAK (TSXV:FL) total resource taken from NI43-101 instrument effective April 28, 2023 Mavis resource (ASX:CRR) taken from ASX release dated June 7, 2023 Root Bay, Seymour Lake and McCombe resources (ASX:GT1) taken from ASX release dated May 5, 2023 Georgia Lake (TSXV:RCK) total resource taken from Georgia Lake Project: Pre-Feasibility Study Nov 22, 2022 Separation Rapids (TSX:AVL) total resource taken from NI43-101 instrument effective Sept 26, 2018 Jackpot (Imagine Lithium- private) estimate taken from Ontario Mineral Inventory Record: MDI42E05SW00019; resource is historic and not compliant with formal resource reporting. page 11 ASX ANNOUNCEMENT –30 JANUARY 2024 Figure 12: Location of Ruddy Project in relation to regional geology, known pegmatite occurrences (detail sourced from ASX:GT1 Announcement on 24/01/2022), and neighbouring tenure holders. page 12 ASX ANNOUNCEMENT –30 JANUARY 2024 Figure 13: Location of Kember Project in relation to regional geology and known spodumene-hosted Lithium deposits, Northwest Ontario. For further detail on the Kember and Ruddy Projects please refer to the following: Sultan (ASX:SLZ) Announcement: 2023 “Sultan Resources enters agreement to acquire 100% interest in highly prospective Canadian lithium exploration ground in Ontario, Canada” dated 17/03/2023 Sultan (ASX:SLZ) Announcement: 2023 “Sultan Completes Acquisition of Canadian Lithium Projects” dated 25/05/2023 Sultan (ASX:SLZ) Announcement: 2023 “Sultan Appoints Experienced Canadian Geological Team” dated 1/06/2023 Sultan (ASX:SLZ) Announcement: 2023 “Multiple mapped pegmatitic occurrences Kember Lithium Project” dated 14/06/2023 Sultan (ASX:SLZ) Announcement: 2023 “Multiple Pegmatite occurrences noted as exploration commences at Ruddy Project, North-Western Ontario” dated 26/6/2023 Sultan (ASX:SLZ) Announcement: 2023 “Priority Zone Identified at Ruddy Lithium Project, Ontario” dated 25/07/2023 Sultan (ASX:SLZ) Announcement: 2023 “Results Received at Ruddy Lithium Project” dated 22/09/2023 LACHLAN FOLD BELT PROJECT, NSW (EL8734, EL8735, EL9070) During the quarter, Sultan continued to review exploration data across its suite of porphyry and epithermal exploration targets in the Macquarie Arc volcanic rocks of the Lachlan Fold Belt, NSW (refer Figure 14). No field work was undertaken, with further review required to define the next round of exploration and drill targets across the projects. Some planning of further extensional soil sampling of the main anomalism is planned for Tucklan (EL8734). page 13 ASX ANNOUNCEMENT –30 JANUARY 2024 Ringaroo Big Hill, Razorback Figure 14: NSW- Sultan Tenements located over prospective Macquarie Arc sequence rocks with priority targets indicated. CORPORATE Sultan’s cash position as at 31 December 2023 was ~$0.540 million. ADDITIONAL ASX INFORMATION ASX Listing Rule 5.3.1 Exploration and Evaluation during the quarter was ~$87,000. ASX Listing Rule 5.3.2 There was no substantive mining production and development activities during the quarter. ASX Listing Rule 5.3.5 Payments to Related Parties & their Associates Total Amount Director Fees and Superannuation $35,517 Company Secretarial, Registered Office and Financial Management Services $43,950 page 14 ASX ANNOUNCEMENT –30 JANUARY 2024 ASX Listing Rule 5.3.3 SCHEDULE OF TENEMENTS Western Australia Tenement Holder Status Area Sultan Resources Live 1 block Application Required Grant Date Expiry Date 19/10/2016 8/02/2018 7/02/2028 $10,000 Date Expenditure Thaduna Project E52/3481 Lake Grace Project E70/5081 Sultan Resources Live 58 blocks 21/11/2017 23/07/2018 22/07/2028 $87,000 E70/5082 1 Sultan Resources Live 37 blocks 23/11/2017 31/07/2018 30/07/2028 $55,500 E70/5085 Sultan Resources Live 65 blocks 24/11/2017 23/07/2018 22/07/2028 $93,000 E70/5095 Sultan Resources Live 54 blocks 1/12/2017 31/07/2018 30/07/2028 $81,000 E70/5179 Sultan Resources Live 28 blocks 1/6/2018 5/02/2019 04/02/2024 $39,000 E70/6529 Sultan Resources Live 1 block 15/8/2023 18/10/2023 17/10/2028 $10,000 E70/6530 Sultan Resources Live 2 blocks 15/8/2023 23/10/2023 22/10/2028 $15,000 E70/6531 Sultan Resources Live 14 blocks 15/8/2023 23/10/2023 22/10/2028 $20,000 Status Area Grant Date Expiry Date New South Wales Tenement Holder Application Date Required Expenditure Lachlan Fold Belt Project EL 8734 Colossus Metals Live 16 Units NA 16 April 2018 16 April 2025 $150,000 EL 8735 Colossus Metals Live 37 Units NA 16 April 2018 16 April 2025 $250,000 EL 9070 Sultan Resources Live 4 Units NA 2 March 2021 2 March 2027 $14,000 Holder Status Area Grant Date Expiry Date 711362 Perry English Live 22 cells NA 27/02/2022 27/02/2024 $8,800 711363 Perry English Live 14 cells NA 27/02/2022 27/02/2024 $5,600 711364 Perry English Live 16 cells NA 27/02/2022 27/02/2024 $6,400 Canada 2 Tenement Application Date Required Expenditure Ruddy Project Kember Project 705989 Gravel Ridge Live 25 cells NA 08/02/2022 08/02/2024 $10,000 705990 Gravel Ridge Live 25 cells NA 08/02/2022 08/02/2024 $10,000 705991 Gravel Ridge Live 25 cells NA 08/02/2022 08/02/2024 $10,000 705992 Perry English Live 25 cells NA 08/02/2022 08/02/2024 $10,000 705993 Perry English Live 25 cells NA 08/02/2022 08/02/2024 $10,000 705994 Perry English Live 25 cells NA 08/02/2022 08/02/2024 $10,000 The mining tenements relinquished during the quarter and their location – Nil The mining tenement interests acquired during the quarter and their location – E70/6529-31, WA Beneficial percentage interests held in farm-in/farm-out agreements at the end of the quarter – 100% in E70/5082 Beneficial percentage interests held in farm-in/farm-out agreements acquired/disposed of during the quarter - Nil 12- E70/5082 subject to farm in by Rio Tinto Exploration- see SCN:ASX release dated 21st June 2023 All Canadian tenure in process of being transferred to Sultan page 15 ASX ANNOUNCEMENT –30 JANUARY 2024 This announcement is authorised for release by the Board. For further information contact: Director Jeremy King info@sultanresources.com.au Cautionary Statement: Investors are cautioned that information contained within this release in respect of pegmatite occurrences is not necessarily indicative of lithium mineralization on the property, and that preliminary exploration observations will need to be backed by laboratory analysis to ascertain the prospectivity of the mineral claims, and there is no guarantee that a significant discovery will be made as a result of its exploration efforts. Competent Persons Statement The information in this report that relates to Exploration Targets and Exploration Results is based on historical and recent exploration information compiled by Mr Craig Hall, who is a Competent Person and a Member of the Australian Institute of Geoscientists (#1748) and a fulltime employee of Sultan Resources Limited. Mr Hall 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 Hall 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 abovementioned announcement. page 16 Rule 5.5 Appendix 5B Mining exploration entity or oil and gas exploration entity quarterly cash flow report Name of entity Sultan Resources Limited ABN Quarter ended (“current quarter”) 35 623 652 522 31 December 2023 Consolidated statement of cash flows Current quarter $A’000 1. Cash flows from operating activities 1.1 Receipts from customers 1.2 Payments for Year to date (6 months) $A’000 - - (8) (21) (b) development - - (c) production - - (d) staff costs (36) (119) (e) administration and corporate costs (126) (259) (a) exploration & evaluation 1.3 Dividends received (see note 3) - - 1.4 Interest received 4 7 1.5 Interest and other costs of finance paid - - 1.6 Income taxes paid - - 1.7 Government grants and tax incentives - - 1.8 Other - 25 1.9 Net cash from / (used in) operating activities (166) (367) 1.8 SLZ received $25,000 option fee per E70/5082 Option to Farm-In and JV Term Sheet. 2. Cash flows from investing activities 2.1 Payments to acquire or for: (a) entities - - (b) tenements - (7) (c) property, plant and equipment - - (79) (432) - - (d) exploration & evaluation (e) investments 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 (f) other non-current assets Current quarter $A’000 Year to date (6 months) $A’000 - - (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 (79) (439) 2.1(d) Exploration & evaluation includes a cash call of $100,000 received from Rio Tinto for exploration spend for tenement E70/5082. 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 785 1,346 4.2 Net cash from / (used in) operating activities (item 1.9 above) (166) (367) 2.2 Proceeds from the disposal of: 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 (6 months) $A’000 4.3 Net cash from / (used in) investing activities (item 2.6 above) (79) (439) 4.4 Net cash from / (used in) financing activities (item 3.10 above) - - 4.5 Effect of movement in exchange rates on cash held - - 4.6 Cash and cash equivalents at end of period 540 540 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 540 785 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) 540 785 6. Payments to related parties of the entity and their associates 6.1 Aggregate amount of payments to related parties and their associates included in item 1 6.2 Aggregate amount of payments to related parties and their associates included in item 2 Current quarter $A'000 (80) - 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. ASX Listing Rules Appendix 5B (17/07/20) + See chapter 19 of the ASX Listing Rules for defined terms. Page 3 Appendix 5B Mining exp