Arrow Minerals : Quarterly Activities and Cashflow Report

31 January 2022

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QUARTERLY ACTIVITIES REPORT

FOR THE PERIOD ENDED 31 DECEMBER 2021

DECEMBER QUARTER HIGHLIGHTS

VRANSO PROJECT, Burkina Faso

• Major exploration programme underway. Completed this quarter: o 35 reverse circulation drill holes
  o 1,054 soil geochemical samples
  o 220 stream sediment geochemical samples
• Detailed aeromagnetic geophysical survey commencing in first quarter 2022

HOUNDE SOUTH, Burkina Faso

• Auger drilling fully funded by JV partner advanced the project

The quarter ended 31 December 2021 included the first phase of a major exploration programme on multiple high-quality targets in the Vranso Project in Burkina Faso. The targets were defined following a comprehensive review by Arrow Minerals Limited (Arrow or the Company) (ASX: AMD) of data from the entire Vranso Project area comprising 1,300 km2 of the prolific Boromo Belt (Figure 1).

Figure 1: Vranso Project, central Burkina Faso, underexplored gold bearing Greenstone Belt

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Vranso Project

• Ten semi-contiguous exploration permits extending for over 80 km, covering over 1,300km2 of the richly gold endowed Paleoproterozoic Birimian Greenstone Belt along the main NE-SW trending Boromo Shear Zone, host to numerous multimillion-ounce gold deposits including Bissa, Bouly, Poura and Batie West.
• Most of the area has yet to be evaluated using modern gold exploration techniques (Figure 2).
• Recently concluded historical geochemical, geophysical, and geological data compilation and integration identified numerous high quality advanced and early-stage gold targets. Arrow embarked on a major systematic exploration programme during the December quarter designed to rapidly discover new high-grade shallow gold deposits within the Vranso Project.
• The entire programme is scheduled to take six months to complete and will focus on generative targeting and drilling of targets within trucking distance of a centrally located mill (Figure 2).

Figure 2: Vranso Project location map showing the 10 exploration permits covering 1300km2 of the

Boromo Shear Zone and six of the identified advanced prospects

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Summary of Exploration during the quarter

During the quarter the first phase of the systematic exploration programme was completed on the Vranso Project including:

• 35 holes (3,472m) of reverse circulation (RC) drilling,
• 1,054 soil geochemical samples and
• 222 stream sediment geochemical samples.

Assay results are in the final stages of validation and will be released to the market shortly.

Dassa Prospect

• 6 RC holes (424m) were drilled at the Dassa deposit. The drilling was completed to test the extension of almost 3 km of shallow, shallow-dipping, mostly oxidised gold mineralisation.
• Arrow discovered the Dassa Deposit in 2020, less than 20km from the central Perkoa Zinc Mine processing facility (Figure 3). It features two higher grade zones of gold mineralisation, both of which are shallow, consistent, and mostly in the shallow oxide zone.
• The Dassa North and Dassa South mineralised zones extend over 1,000m and 600m respectively, and are both open along strike and at depth.

Figure 3: Dassa, Main and Poa prospects within 20km of the central Perkoa Zinc Mine processing facility.

Significant drill intercepts from Arrow and historical drilling shown.

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Guido Prospect

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• Work at Guido during the quarter comprised 19 RC drill holes (2,288m) designed to validate the historical Guido gold resource and test for where the resourced can be increased down dip and along strike.
• The Guido Prospect, shown in Figure 4, lies 7km north-east of the Perkoa Zinc Mine processing facility and is accessible by an all-weather sealed road. Blackthorn Resources Ltd initially identified and drilled the Guido gold deposit in 2010, reporting a maiden inferred Mineral Resource of 4.1 Mt at 1.06g/t Au at a 0.4g/t Au cut off (139,000 oz Au).1 (2012).

Figure 4: Poa, Guido, Semapoun and Bantole prospects within 20km of the central Perkoa Zinc Mine processing facility.

Significant drill intercepts from Arrow and historical drilling shown.

Semapoun Prospect

• At Semapoun RC drilling consisting of 10 RC holes (760m) was completed to test the at-depth expression of highly anomalous gold in historical shallow drilling and sampling data.
• The Semapoun Prospect (Figure 4) lies 3km along strike from the Guido deposit within the structural corridor defined by the main Boromo Shear Zone. Surface geochemistry and geological structural mapping have been ineffective in defining the distribution of mineralisation due to thick lateritic cover extending over the area.

1 ASX Release 24 November 2010 - Blackthorn Resources define a Maiden Inferred Mineral Resource for the Guido Prospect in Burkina Faso & ASX Release 29 September 2011 - 2011 Annual Report Blackthorn Resources Limited

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• Historical RAB and RC drilling targeting locally interpreted structural corridors at the Semapoun Prospect intersected several thick high-grade gold zones including intersections in three RC drillholes spaced over 500m apart.

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Bantole Prospect

• Compilation and analysis of historical data revealed significant potential at the Bantole Prospect. The Bantole Prospect is located 5km north-east of the Semapoun Prospect on a sub-parallel D1 structure to the main mineralised structure that hosts the Guido Deposit and Semapoun Prospect, 16km from the Perkoa Zinc Mine processing facility.
• A single northwest-southeast trending line of historical aircore drilling (Figure 4), penetrating to the base of weathering, intercepted shallow anomalous gold mineralisation (>0.3g/t Au) over a 200m zone no deeper than 20m.
• Elevated gold in stream sediment geochemical samples, collected directly to the north-east of the aircore traverse in the recently acquired Tombi Quest permit, indicate that gold mineralisation continues in this direction.
• Arrow will undertake additional auger drilling, geological mapping, and structural interpretations to rapidly advance the northern extension of the Bantole Prospect toward drill ready status.

Regional and Early-Stage Targeting

• Soil geochemical samples were collected along a 10km mineralised NE-SW structural corridor extending from the south of the Guido Prospect to north of Semapoun as shown in Figure 5. 1,054 samples were collected along 800m lines and 50m centres as a first pass.
• Infill sampling is now underway to reduce line spacing to 400m. The program is designed to identify the higher tenor gold zones within the structure and sub-parallel mineralised systems beneath cover.

Figure 5: Soil sampling area along the Guido-Semapoun mineralised trend.

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