American West Metals : Quarterly Activities and Cashflow Report

ASX RELEASE

(ASX: AW1)

Monday, 4th April 2022

Quarterly Activities Report for the Period Ended March 2022

West Desert Project, Utah

• • Interpretation of project-wide gravity survey has identified several drill targets outside the existing resource highlighting the growth potential at West Desert

• • Diamond drill program commenced with four drill holes completed during the March quarter for 2,352.36m

• • Thick mineralisation intersected in all drill holes - including strong copper, zinc and molybdenite visually identified in the drill core - with geological logging indicating:

  • o A total of 288m of mineralisation in WD22-01

  • o A total of 332m of mineralisation in WD22-01C

  • o A total of 102m of mineralisation in WD22-02

  • o 157m of continuous mineralisation in WD22-03

• • Laboratory assays are pending and expected early in the June quarter, with diamond drilling continuing

• • Scoping study activities for a potential mine development continued including the completion of Environmental and Hydrological desktop studies

Storm and Seal Projects

• • Ore sorting test work is underway on copper bearing drill core from the Storm Copper Project

• • Planning for the 2022 exploration campaign was completed including a diamond drill program scheduled for the June and September quarters

• • 2022 drill program will focus on:

  • o Follow-up drilling for historical intersections of 110m @ 2.45% Cu from surface (ST97-08) and 56.3m @ 3.07% Cu from 12.2m (ST99-19)

  • o Testing electromagnetic (EM) conductors identified by American West and which are priority targets for the discovery of further copper sulphide mineralisation

American West Metals Limited

Suite 2, 28 Ord Street West Perth WA 6005

[e-mail]: 645 960 550

www.americanwestmetals.com(ASX: AW1)

Copper Warrior Project

• • Field reconnaissance and rock chip sampling was completed including over areas with outcropping copper mineralisation

• • Exploration program planning continues with an Induced Polarization (IP) survey scheduled to commence during April 2022

Corporate

• • The Company appointed senior mining executive, Tom Peregoodoff, as independent non-executive director to further bolster American West's experienced management team

• • Central to the AW1's strategy is conducting low footprint operations that are sustainable and support the clean energy transition

American West Metals Limited (ASX: AW1)("American West" or "The Company") is pleased to report on its Quarterly activities for the period ending 31 March 2022. During the March 2022 quarter, the Company's focus was on Diamond Drilling at our West Desert Project and advancing key activities at the Storm/Seal and Copper Warrior Projects.

Dave O'Neill, Managing Director of American West Metals commented;

"We have had a busy and exciting start to the year with the commencement of Diamond Drilling at our flagship West Desert Project. The drilling program continues to exceed our expectations and has delivered highly encouraging preliminary results which highlight the large scale and quality of the West Desert Deposit as well as its growth potential.

"Additionally, shareholders will be pleased to see that we are also continuing to progress key activities at our Storm/Seal and Copper Warrior Projects as well.

"All this is shaping up for some exciting results during the June 2022 quarter as we continue to ramp up exploration activities on the Company's tenements, and we look forward to sharing these results with our shareholders."

West Desert Project, Utah

HIGH-RESOLUTION GRAVITY SURVEY

Results of a high-resolution gravity survey were received during the quarter. The survey was the first of its type at the Project and was designed to test the response of the existing mineralisation of the West Desert Deposit, and to screen the nearmine area for similar features.

The survey included a total of 1,537 gravity stations (Figure 1), with the station spacing of the immediate deposit area at 100m, and the greater Fish Springs area with 400m spacings.

Figure 1: Ground gravity station locations and claim boundary overlaying gravity image (complete bouguer anomaly at density 2.45g/cc - cooler colours are lower density and warmer colours indicate higher density)

The survey is interpreted to have successfully detected the CRD dominant and lower skarn portion of the West Desert Deposit which contains massive lenses of coarse-grained sphalerite, chalcopyrite and pyrite/pyrrhotite within ferromagnesium skarns and replacement bodies hosted within carbonates and shale.

Strong results pave way for expansion of known mineralisation

The gravity data has highlighted multiple anomalies within a 6km long East-West corridor that appear identical to the West Desert Deposit. These anomalies are located in compelling geological locations, including an offset to the known orebody, and along the contacts of the porphyry where similar deposits could be expected to form. Importantly, a number of these anomalies are situated in areas where sporadic historical drilling has intersected zinc-copper-lead-silver rich mineralisation.

Outside of the immediate deposit area, a significantly large and strong gravity anomaly was identified in the northern part of the project area (Figure 1). The anomaly is located at the very northern end of the Fish Springs Range, in a semi-circular topographical low, where the range slopes off onto the Great Salt Lake.

Figure 2: Interpreted CRD and skarn targets as defined by gravity and magnetics, overlaying historical drill holes and gravity image (CBA residual -400m at density 2.70g/cc - cooler colours are lower density and warmer colours indicate higher density)

Technical discussion on the Gravity results

The gravity survey and data interpretation represents a significant increase in the understanding of the West Desert area and greater Fish Springs mineral district. Given the high contrast in densities between magnetite skarn and/or massive sulphide associated mineralisation and the host porphyry and sedimentary rocks (limestone/dolomite/shale), this technique was anticipated to be an effective targeting tool. This is in contrast to the historical magnetic data which is interpreted to have only imaged the magnetite rich skarns and alteration.

The geophysical interpretation suggests that the gravity data has effectively mapped the porphyry system and main structural architecture of the project area. What is interpreted to represent the main quartz-monzonite intrusive body, appears as a distinct gravity low in the data (blue in Figure 2), and this feature appears to be a focal point of a major East-West structural corridor that is perpendicular to the main North-South geological trend.

The East-West structural trend matches the orientation of the West Desert orebody and the gravity data suggests that the CRD dominant portion of the ore body may have extended for at least a kilometre to the east of West Desert in its original state. The anomalies appear to be offset which may be a function of the presence of multiple individual zones of mineralisation, or the result of dislocation by multiple North-South oriented faults (common in the general area).

Importantly, the Galena and Utah historical mines (both within the West Desert Project area and with 20,303 tonnes of ore mined from 1890 to 1953) are located immediately above two of these anomalies (Figure 3). Historical drill hole CC-43 was completed below the Utah mine workings and intersected a number of high-grade zones below the lowermost mine level, including 3m @ 3.5% Cu, 7.65% Zn and 28g/t Ag, indicating that mineralization may continue at depth.

Figure 3: Longsection 4414700N showing the Black Dragon and Utah Deeps target areas, located to the east of the West Desert Deposit (red resource shell defines 16.5Mt @ 6.3% Zn, 0.3% Cu and 33g/t In for over 1Mt of zinc metal)

Sparse exploration drilling to the immediate north of the West Desert Deposit has intersected weak skarn mineralisation with a number of discrete zinc-lead-sliver zones in drill holes CC-30 and CC-32 (Figure 2). These drill holes appear to clip the edge of the gravity anomaly in this location and therefore may be on the edge of much stronger and broader zones of skarn development.

The prominent anomaly in the northern part of the project area is an order of magnitude stronger and larger than other anomalies in the project area and may represent an uplifted block of more dense material (potential mafic rocks), though this is not obvious in the well exposed surface geology. There has been no historical drilling at this location. Soil and rock sampling is planned to be completed over the area soon.