Alice Queen : 1.4KM IP ANOMALY EMERGING AT HORN ISLAND

ASX Announcement

19 January 2022

only1.4KM IP Anomaly Associated with Surface Gold Emerging at Horn Island

useAdvanced gold and copper explorer, Alice Queen Limited (ASX:AQX) ("Alice Queen" or the "Company") is pleased to provide an interim update of its Dipole Dipole Induced Polarisation (DDIP) urvey at the Company's Horn Island Gold Project, located in the Torres Strait, Queensland.

Highlights

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• Interim results indicate an open, large scale DDIP chargeability anomaly (Jedha-1) with a strike length greater than 1.4 km (see Figures 1 and 2) emerging at the Southern Silicified Ridge (SSR) prospect
• The Jedha-1 chargeability anomaly has a vertical target range from near-surfaceto greater-than250m depth below surface and appears to deepen and broaden to the SE
• Preliminary modelling of the DDIP data indicates the Jedha-1 chargeability anomaly is highly comparable to the Horn Island Resource IP chargeability anomaly
• Jedha-1is untested by current drilling
• The surface expression of this anomaly is associated with previously identified broad and complex altered stockwork vein zones reporting numerous high-grade chip (>10g/t Au) and channel sampling gold assay results
• Previously completed shallow diamond drilling program of 9 holes for 1,449 metres directly above a portion of this IP anomaly returned multiple assay intercepts >0.5 g/t Au (cut off)
• Metal zonation studies from surface sample data indicates that the Au-Sb enrichment directly above the Jedha-1 anomaly is characteristic of the distal part of a larger mineralised system likely found at depth (see Figure 5)
• The DDIP survey area covers a total distance of 55 line-kms over 11 km2 and is expected to be completed in January

	Alice	Queen's Managing Director, Andrew Buxton said,
			It is likely that Horn Island hosts multiple deposits representing multi-million ounce
			potential. Our 2022 exploration strategy at Horn Island is to make further discoveries
			and continue to grow our resource base. DDIP survey with coincident gold has been
	"	proven to be a successful target generation tool at Horn Island. From the interim
	results received, we expect that the large emerging IP anomaly at Horn Island will
only	extend considerably further to the SW. The survey is expected to be complete by
the end of this month and with the diamond rig waiting at site, we hope to be drilling		"
for discovery later in February.
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For	DDIP progress - more than 40% of survey completed (Lines 4200N to 2800N)) with location of Jedha
	Figure 1.

1 CHG DDIP anomaly, and previously reported shallow drilling Au results (>0.5g/t Au). Overlain with 2D

inversion DDIP CHG -145m slice.

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personalFor	Emerging large scale chargeability DDIP anomaly (Jedha 1) at the SSR prospect. Anomaly is greater
Figure 2.

than 1.4km and is open to the NW and SE with a vertical target depth range between 50-300m. Presented are

previous shallow AXQ drill holes with composite Au intercepts greater than 0.2g/t Au highlighted on the

section. 2D INV CHG pseudo sections with 3D isolines (ranging from 10 to 16 milliseconds)

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Dipole Dipole Induced Polarisation Survey (DDIP) - Interim Results

The ground DDIP survey is now more than 40% complete and is expected to be concluded by the end of January 2022.

onlyThe DDIP survey area covers a total distance of 55 line-kms over 11 km2. The location of this DDIP survey is from the southwestern edge of the *Horn Island Mineral Resource area to the Southern Silicified Ridge Prospect (SSR) (See Figure 1).

*The Mineral Resource Estimate (JORC 2012, Indicated and Inferred) is reported at a > 0.4g/t Au cut off for 16.7Mt at 0.98g/t Au for a total of 524,000 ounces Au (see ASX release 11 November 2021, HORN ISLAND SCOPING STUDY AND MRE).

These interim results have identified an open but well-constrained chargeability anomaly (the Jedha-
1 anomaly), which is located within the SSR. The emerging and potentially large-scale anomaly
identified is very encouraging and is well-aligned with the Company's strategy to discover additional
deposits
useOf significance is the location and relationship of the Jedha-1 chargeability anomaly to other
prospective near-surface exploration results, which is characteristic of an intrusive-related gold
deposit.
personal	♦ The Jedha-1 chargeability anomaly at SSR displays a similar chargeability response to the
previous IP survey, which was completed across the Horn Island gold deposit area and
Tatooine anomaly, multiple gold assay intercepts from testing these anomalies were
returned.
♦ Preliminary modelling of the DDIP data indicates that the Jedha-1 chargeability anomaly
amplitude is generally greater than 10ms, up to a maximum of 16ms within the northwest part
of the anomaly corridor (see Figure 4) and is highly comparable to the Horn Island Resource
IP chargeability anomaly.
♦ Surface mapping throughout the SSR prospect and directly above the Jedha-1 chargeability
anomaly has defined an extensive sericite altered and veined stockwork zone with an
approximate strike length of 3 km. The stockwork zone displays a consistent trend with the
underlying chargeability anomaly.
For	♦ Surface vein chip sampling above and along the projected trend of this anomaly has revealed
numerous high-grade gold assays of >10 g/t Au including;

o 250.0g/t, 50.5g/t, 19.5g/t, 18.2g/t, 15.7g/t, 15.4g/t, 13.2g/t, & 11.4g/t Au and channels samples including;

o 4 m @ 4.20g/t Au incl.1 m @ 11.90 g/t Au o 4 m @ 1.89g/t Au incl. 1.0 m @ 4.08 g/t

o 1.5 m @ 6.18 g/t Au incl. 0.5m @ 15.35 g/t and; o 1 m @ 8.79 g/t Au (see Figure 3)

♦ Previous IRG metal zonation studies carried out by Alice Queen of surface soil and rock chip samples indicate an Au-Sb enrichment pattern, suggesting a more-distal relationship to the source intrusion, this may be the key driver for gold. The potential for higher-gradegold to develop at depth and/or along strike remains a strong possibility (see Figure 5).

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• Previous shallow diamond drilling across a limited area that commenced in December 2017 above the Jedha-1 chargeability anomaly has returned multiple gold assay intercepts (>0.5 g/t Au) (see Figure 4) including:

Hole		Intersection	Au Grade	From
8NGD052		11.0 m	2.9 g/t Au	78.8 m
including		1 m	16.3 g/t Au	78.8m
18NGD050		5.0 m	0.5 g/t Au	46 m
18NGD050		3 m	1.0 g/t Au	117 m
18NGD056		12 m	1.0 g/t Au	31 m
including		1 m	7.8 g/t Au	33.0m
18NGD056		3 m	0.8 g/t Au	104 m
including		1 m	1.4 g/t Au	106.0m
18NGD056		1 m	1.8 g/t Au	121 m
18NGD056		2 m	1.2 g.t Au	192 m
18NGD057		12 m	0.5 g/t Au	44 m
including		1 m	2.6 g/t Au	54.0m
18NGD057		7 m	0.5 g/t Au	70 m
including		1 m	1.1g/t Au	72M
18NGD057		2 m @	5.6 g/t Au	160 m
including		1 m	8.2 g/t Au	161.0m
18NGD057		12 m	0.5 g/t Au	44 m
including		1 m	2.6 g/t Au	54.0m
18NGD057		2 m	5.6 g/t Au	160 m
including		1 m	8.2 g/t Au	161.0m

• The chargeability envelope correlates with a very distinctive large-scale NW magnetic low trend, similar to the one observed at the Horn Island resource area, indicating magnetite destruction from injection of fault-controlledmetal-forming fluids. Large-scale demagnetised and complex fault zones (see Figure 5) have also been interpreted across the Endor prospect and the historic Cable Bay prospect, which are soon-to-be-covered by the near complete second half of the DDIP survey.
• The Jedha-1 chargeability anomaly fits within the Company's conceptual target depth window (see Figure 5), that may represent a zone of intensifying mineralisation and therefore be a strong indicator towards the source intrusion where higher-gradegold may develop.

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