Neometals Ltd.: Updated Widgie Townsite Nickel Mineral Resource at Mt Edwards

HIGHLIGHTS

-          A re-estimation of the Widgie Townsite Nickel Sulphide Mineral Resource limited to fresh rock mineralisation has resulted in an updated estimate of 2.476 million tonnes with a grade of 1.6% nickel for 39,300 contained nickel tonnes; and

-          The global contained nickel tonnes at the Mt Edwards Project now 158,320 tonnes, from 9.919 million tonnes at 1.6% nickel.

Neometals Ltd (ASX: NMT) (“Neometals” or “the Company”) is pleased to announce an updated Mineral Resource estimate for the Widgie Townsite Deposit (“Widgie Townsite”). The reinterpreted Mineral Resource estimate for Widgie Townsite has been limited to fresh rock which has meant a small reduction in the Mineral Resource size. Further metallurgical test-work is required to assess the nickel hosted in transitional and oxide material above the nickel sulphide zones. While already a sizeable deposit, Widgie Townsite has potential for Mineral Resource extension along strike to the south-east, with current estimate 2.476 Million tonnes at a grade of 1.6% Ni for 39,300 tonnes of contained nickel.

Table 1 – Widgie Townsite Indicated and Inferred Mineral Resource estimates at a 1% nickel cut-off grade

Small discrepancies may occur due to rounding

Including the Widgie Townsite Mineral Resource estimate, the global Mt Edwards Project Mineral Resources across eleven deposits now sits at 9.919 million tonnes at 1.6% nickel for 158,320 tonnes of contained nickel (refer to Table 2 on next page for the global Mt Edwards Project Mineral Resource Table).

Widgie Townsite is located near the Gillett and Widgie 3 Mineral Resources, the area of the three deposits is collectively termed the Widgie South Trend. These three deposits are amongst eleven Mineral Resources at Neometals’ Mt Edwards Project surrounding the township of Widgiemooltha, a province of historic nickel sulphide mines.

Since mid-2019 Neometals has undertaken a major review of the Mt Edwards project, with the re-estimation of the Widgie Townsite Mineral Resource being a continuation of this process. The Widgie Townsite Mineral Resource was estimated by Richard Maddocks from Auralia Mining Consultants and reviewed by Snowden Mining Industry Consultants.

A future work program is planned for Widgie Townsite that will include reverse circulation (“RC”) and diamond core (“DD”) drilling, combined with Downhole Electromagnetic Surveys (“DHEM”) to further assess the extents of mineralisation and improve the understanding of the metallurgical characteristics to pave the way for further mining studies.

Background

Neometals acquired the Mt Edwards project in the first half of 2018 and immediately began exploring for nickel and lithium. The Company is targeting new nickel discoveries at Mt Edwards while reviewing and enhancing existing nickel Mineral Resources. The Company owns, or holds nickel rights to, 36 mining tenements with a large land holding of more than 300km2 across the Widgiemooltha Dome, a well-recognised nickel sulphide mining province.

Table 2 - The Mt Edwards Project has 11 Nickel Mineral Resources with a total of 158,320 contained nickel tonnes

Mineral Resources quoted using a 1% Ni block cut-off grade, except Munda at 1.5% Ni. Small discrepancies may occur due to rounding

Note 1. refer announcement on the ASX: NMT 19 April 2018 titled Mt Edwards Nickel - Mineral Resource Estimate

Note 2. refer announcement on the ASX: NMT 25 June 2018 titled Mt Edwards - Mineral Resource Over 120,000 Nickel Tonnes

Note 3. refer announcement on the ASX: NMT 13 November 2019 titled Additional Nickel Mineral Resource at Mt Edwards

Note 4. refer announcement on the ASX: NMT 16 April 2020 titled Mt Edwards Nickel - Armstrong Resource increases 60%

Note 5. refer announcement on the ASX: NMT 26 May 2020 titled Mt Edwards Nickel - Gillett Resource increases 30%

Note 6. refer announcement on the ASX: NMT 6 October 2020 titled Mt Edwards Nickel - Mineral Resource and Exploration Update

Note 7. refer announcement on the ASX: NMT 23 December 2020 Mt Edwards Nickel - Zabel Mineral Resource Update

Note 8. refer announcement on the ASX: NMT 29 June 2021 Mt Edwards – McEwen Mineral Resources increase 45%

Mineral Resource Estimation

The Widgie Townsite Mineral Resource was estimated by Richard Maddocks from Auralia Mining Consultants. The Mineral Resource estimate for the Widgie Townsite Deposit of 2,476,000 tonnes at 1.6% nickel for 39,300 nickel tonnes is reported in accordance with the 2012 Edition of the ‘Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves’ prepared by the Joint Ore Reserves Committee of The Australasian Institute of Mining and Metallurgy, Australian Institute of Geoscientists and Minerals Council of Australia (JORC Code) and follows a detailed interrogation and review of the available data, including the earlier reported Mineral Resource estimates by the previous holders of the tenement.

A summary of information relevant to the Widgie Townsite Mineral Resource estimates at the Mt Edwards Project is provided in these appendices attached to this announcement:

Appendix 1. Table 1 as per the JORC Code Guidelines (2012)

Appendix 2. Drill holes used in the Widgie Townsite Mineral Resource estimate

Appendix 3. Significant and Mineralised Nickel Drill Intersections at Widgie Townsite

Location

The Widgie Townsite deposit is located on mining lease M15/94, approximately 1.5km south of the Widgiemooltha Roadhouse (55km from Kambalda). Access from the Coolgardie to Esperance Highway is via the Caves Hill Road and then well-established roads used for previous mining and exploration in the area. The most recent mining in the immediate vicinity of the Widgie Townsite Mineral Resource is Mincor’s Widgiemooltha Gold Operation which included open pits on the same Mining Lease (M15/94) active until September 2019. Geological knowledge has been sought by drill sample logging and surface mapping combined with interpretations of surface and down-hole geophysical surveys. The Widgie Townsite Mineral Resource is located 800 metres north of the Gillett Nickel Mineral Resource, along geological strike, with the area between these deposits remaining for the most part untested.

Figure 1 - Mt Edwards Project tenure over geology, showing the locations of the Widgie Townsite Mineral Resources on Mining Lease M15/94. Neometals holds 100% nickel rights for all live tenements shown above.

Please find the full-length press release here: https://cdn-api.markitdigital.com/apiman-gateway/ASX/asx-research/1.0/file/2924-02389308-6A1038612?access_token=83ff96335c2d45a094df02a206a39ff4

Authorised on behalf of Neometals by Christopher Reed, Managing Director.

ENDS

For further information, please contact:

Chris Reed

Managing Director

Neometals Ltd

T: +61 8 9322 1182

E: [email protected]

Jeremy Mcmanus

General Manager - Commercial and IR

Neometals Ltd

T: +61 8 9322 1182

E: [email protected]

About Neometals Ltd

Neometals innovatively develops opportunities in minerals and advanced materials essential for a sustainable future. With a focus on the energy storage megatrend, the strategy focuses on de-risking and developing long life projects with strong partners and integrating down the value chain to increase margins and return value to shareholders.

Neometals has four core projects with large partners that support the global transition to clean energy and span the battery value chain:

Recycling and Resource Recovery:

-          Lithium-ion Battery Recycling – a proprietary process for recovering cobalt and other valuable materials from spent and scrap lithium batteries. Pilot plant testing completed with plans well advanced to conduct demonstration scale trials with 50:50 JV partner SMS group, working towards a development decision in early 2022; and

-          Vanadium Recovery – sole funding the evaluation of a potential 50:50 joint venture with Critical Metals Ltd to recover vanadium from processing by-products (“Slag”) from leading Scandinavian Steel maker SSAB. Underpinned by a 10-year Slag supply agreement, a decision to develop sustainable European production of high-purity vanadium pentoxide is targeted for December 2022.

Upstream Industrial Minerals:

-          Barrambie Titanium and Vanadium Project - one of the world's highest-grade hard-rock titanium-vanadium deposits, working towards a development decision in mid-2022 with potential 50:50 JV partner IMUMR.

Please find the full-length press release here: https://cdn-api.markitdigital.com/apiman-gateway/ASX/asx-research/1.0/file/2924-02389308-6A1038612?access_token=83ff96335c2d45a094df02a206a39ff4