Alchemy Resources : Lithium and Gold Exploration Update

onlyBOARD AND MANAGEMENT MR LINDSAY DUDFIELD

NON-EXECUTIVE CHAIRMAN

MR JAMES WILSON

CHIEF EXECUTIVE OFFICER

MS LIZA CARPENE

NON-EXECUTIVE DIRECTOR

useMR ANTHONY HO

NON-EXECUTIVE DIRECTOR

MS CARLY TERZANIDIS

COMPANY SECRETARY

PROJECTS

personalLAKE REBECCA (ALY 100%) KARONIE (ALY 100%)

LACHLAN (ALY 80%)

WEST LYNN (ALY 80%)

BRYAH BASIN (ALY 20%, TSX-V SGI 80%)

BRYAH BASIN (ALY 20%, SFR 80%)

For

ASX: ALY

5 July 2022

LITHIUM AND GOLD EXPLORATION UPDATE

HIGHLIGHTS

• Excellent progress made on accelerated lithium-gold focussed exploration program.
• Project wide regional soil geochemical sampling completed along the lithium prospective "Goldilocks trend".
• Detailed mapping and sampling on high priority lithium targets completed.
• 100m x 40m infill soil sampling on Cherry, Hickory and Pecan completed.
• Gold exploration drilling at Gilmore, Karonie East and KZ5 completed.
• Priority target areas currently being assessed for potential drill programs and further infill soil sampling.
• Assays pending for 793 infill soils, 1,471 regional soils, 68 rock chip and 278 RC drill samples.

Alchemy Resources Limited (ASX: ALY) ("Alchemy" or "the Company") is pleased to announce the completion of multiple exploration programs at its 100% owned Karonie gold and lithium project located east of Kalgoorlie in Western Australia. Infill soil sampling, mapping and rock chip sampling of the Cherry- Hickory-Pecan lithium anomalies has been completed. Regional soil sampling targeting lithium and gold within the "Goldilocks zone" is also complete. Drill programs targeting gold have been completed on the Gilmore/Karonie East and KZ5 areas. A total of 2,264 soil samples, 68 rock chip samples and 278 RC drill samples have been submitted with assays pending.

Chief Executive Officer Mr James Wilson commented: "We are making good progress on our accelerated lithium-goldfocussed exploration programs. The gold drilling, lithium regional soils and lithium infill soils are now complete, and we have over 2,600 samples in the lab with results pending for all batches. The detailed mapping has identified more pegmatite dykes and chemical zonation within the increased 7.3km x 1.5km target area at Cherry-Hickory-Pecanwhich remains open under cover. Our exploration activities have the potential for considerable opportunities for growth in the near term".

Alchemy Resources Limited

ABN: 17 124 444 122

1. 9481 4400 | E: [e-mail] | W: www.alchemyresources.com.au 8/8 Clive Street, West Perth 6004, WA

LITHIUM EXPLORATION

CHERRY-HICKORY-PECAN MAPPING / SOIL SAMPLING

onlyDetailed mapping and rock-chip sampling have been completed at the Cherry-Hickory-Mesquite and Pecan prospects. The program targeted a number of objectives including: i) mapping additional pegmatite bodies, ii) ide tifying zonation within the pegmatites to identify the most prospective zones, iii) obtaining additional surface rock-chip samples, and iv) infilling the existing soil geochemistry on a 100m x 40m pattern. The mapping identified numerous additional pegmatites with the overall mapped dimensions of the zone increasing to 7.3km x 1.5km.

Mapping: Further ground truthing of the lithium anomalies has revealed additional outcropping pegmatites at useCh rry and Hickory (Figure 1). Numerous additional outcrops have been mapped with a combined strike extent of >1.4km. A broad zonation has been recognised, trending from outer zones of high rubidium anomalism in proximity to the Cherry Prospect, to tantalum rich (and lower rubidium) zones at Hickory. In particular, the strongest zones of tantalum mineralisation (122ppm Ta) occur at the northern end of mapped pegmatites at

Hickory where these trend under cover. personalFor

Figure 1: Cherry-Hickory Prospect with infill soil sampling and mapped pegmatites

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Figure 2: Pecan Prospect with infill soil sampling and mapped pegmatites

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personalInfill soil sampling and rock-chipsampling: Infill soil sampling and rock chip sampling programs were completed in late June 2022 over the Cherry-Hickory and Pecan Prospects, with a total 793 soil samples and 68 rock chip

samples submitted for multi-element analysis. Results are pending.

ForA selection of outcrop photos is shown in Figure 3. A key highlight is the typical "UST" Texture (Unidirectional S lidification Texture) shown in Photographs #1 and #2 where the growth of crystals occurs perpendicular to the dyke walls.

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onlyuse personalFor Figure 3: Field photographs of Pegmatite outcrops at Cherry and Hickory

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PROJECT WIDE REGIONAL SOIL SAMPLING

Alchemy has previously completed a desktop study and generated additional lithium targets in the broader onlyKaronie regional area. Alchemy's Karonie tenure covers over 50km of strike extent along the contact zone of a regional granite. These areas sit within a prospective "Goldilocks Zone", a defined corridor in which lithium- caesium-tantalum (LCT) pegmatites exist. This zone lies outboard of the granitic terrain and within the greenstone belts and is largely untested for battery minerals and in many cases for gold (Figure 4). Alchemy has designed a project wide 400m x 400m spaced soil sampling program to explore for indications of potential LCT pegmatite mineralisation. The soil sampling involved the collection of 1,471 samples and was completed in late

June 2022. Samples have been submitted to the laboratory and results are pending.

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Figure 4: ALY Lithium prospects with GSWA mapped granite bodies
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