A Cap Energy : POSITIVE NICKEL AND COBALT RESULTS WILCONI PROJECT

A-Cap Energy Limited	ASX:ACB
ABN 28 104 028 542	Phone [phone]
52 Ord Street	[e-mail]
West Perth WA 6005	acapenergy.com

1 April 2022

Positive nickel and cobalt results returned in diamond drilling at the Wilconi Nickel-Cobalt Project in Western Australia.

A-Cap Energy Limited (ASX:ACB) ) has returned positive nickel and cobalt results in diamond drilling at its Wilconi Ni-Co Project near Wiluna in Western Australia as the company advances a Pre-feasibility Study (PFS).

Highlights

• • Three-month 31 hole diamond drilling program completed in January over 1490.7m represents key component of Wilconi Pre-feasibility Study (PFS).

• • Program follows 2021 reverse circulation (RC) drill program which clearly defined a particular rock unit that underlies the better Ni-Co grades in the laterite.

• • A new 17,000 metre combined RC and diamond infill drill program is now being planned for Wilconi to convert resources to indicated and measured categories.

Significant results from the diamond drilling include:

WCN21DDH001: 19 metres of 1.11% nickel and 0.08% cobalt from 26 metres WCN21DDH005: 9 metres of 1.17% nickel and 0.06% cobalt from 57 metres WCN21DDH006: 10 metres of 1.53% nickel and 0.05% cobalt from 39 metres WCN21DDH008: 11 metres of 1.25% nickel and 0.14% cobalt from 39 metres WCN21DDH011: 10 metres of 1.16% nickel and 0.13% cobalt from 31metres WCN21DDH015: 14 metres of 1.33% nickel and 0.07% cobalt from 22 metres WCN21DDH019: 9 metres of 1.18% nickel and 0.07% cobalt from 13 metres WCN21DDH0023: 9 metres of 1.14% nickel and 0.03% cobalt from 14 metres WCN21DDH024: 16 metres of 1.19% nickel and 0.08% cobalt from 26 metres WCN21DDH025A: 16 metres of 1.14% nickel and 0.08% cobalt from 25 metres WCN21DDH026: 13 metres of 1.27% nickel and 0.10% cobalt from 22 metres WCN21DDH028: 10 metres of 1.13% nickel and 0.08% cobalt from 18 metres

* Intercepts calculated using a 0.7% nickel cut-off, minimum 2m intercept and maximum 1m internal dilution 1

** The zone of mineralisation is generally flat-lying and all drill holes intersect the mineralisation at approximately 60˚ to the mineralisation orientation.

***Full drilling results are included in the Appendices of this announcement.

Completed in January, the three month drill campaign comprised 31 holes over 1490.7m and follows last year's reverse circulation (RC) drill program totalling 11,096m1. Most holes were drilled at a 60 angle towards the west in order to detect any steep structures that focus deeper weathering, producing thicker mineralisation in the lateritic profile.

A-Cap Chairman, Mr Jiandong He, said a new 17,000m combined RC and diamond infill drill program was now being planned for Wilconi to convert resources to indicated and measured categories.

"Continuing drilling work at Wilconi is vital for the completion of the PFS study currently underway," Mr He said.

"Our earlier metallurgical studies demonstrated that the project can deliver high recoveries of both nickel and cobalt, and we look forward to more good news from this upcoming work".

Mr He said Wilconi would seek to serve the supply of critical materials to the global electric vehicle market which was experiencing accelerating sales led by China and Europe.

"The primary batteries of choice for Western manufacturers are nickel manganese cobalt due to their high energy density," he said.

The Wilconi Project is a farm-in joint-venture project with Wiluna Mining Corporation Limited (ASX:WMC), with A-Cap earning 75% equity in the project under the terms outlined on 20 December 2018.

A-Cap's 2021 RC drill program clearly defined a particular rock unit (olivine rich ultramafic) that underlies the better grades in the laterite. This unit can be traced over much of the 20km of strike of the broad ultramafic package, and the unit is approximately 250m wide, and lies within the total ultramafic package. Drilling the laterite above this unit mostly intersected >1% nickel with associated Co. Zones of thicker (+30m) mineralisation identified in the RC drilling that represent "keels" in the lateritic profile.

Large diameter cores (90mm) were drilled to ensure good recoveries were obtained in the soft lateritic ores to permit bulk density determinations and to provide sufficient sample for metallurgical testwork and engineering studies. Metallurgical testwork is underway to determine the best methods of nickel and cobalt extraction and optimise metal recoveries for the various ore types.

1 Refer ASX announcement dated 24th September 2021 for further information

Other PFS work that has been completed includes:

• • An updated mineral resource estimate to JORC standards by Miningplus. Recently completed (Refer ASX announcement dated 18th March 2022).

• • Animal Plant Mineral Pty Ltd (APM) completed a fauna and flora study over the entire resource area in December 2021.

• • Peter O'Bryan & Associates supervised engineering and geotechnical testwork on selected core samples.

• • A desktop hydrogeological study of the Wilconi project area was completed by Rockwater Hydrogeological and Environmental Consultants. As recommended by Rockwater, six water monitoring wells were established across the Wilconi resource area.

On-going PFS work and additional studies include:

• • Hydrogeological studies including Baseline surface and ground water studies

• • Subterranean fauna studies

• • Cultural heritage surveys

• • Design and geotechnical assessment of constructed landforms including waste dumps, open cuts and tailings storage facilities

• • Soil, waste rock and tailings characterisation studies

• • Noise and greenhouse gases assessment

Figure 1: Regional geological setting of the Wilconi Nickel-Cobalt Project showing extent of nickel bearing ultramafic rocks, outline of the Wilconi nickel resource and location of recent diamond drilling.

Figure 2: Detail of the diamond drill holes referred to in this release showing location of drill holes and underlying nickel rich ultramafic bedrock.