Australasian Metals : Granting of Mt Peake Lithium Project Exploration Licence

Granting of Mt Peake Lithium Project Exploration Licence, NT

Highlights

• ● Exploration Licence (EL 32830), located in the central part of the Arunta Pegmatite province, has been successfully granted for an initial period of 6 years

• ● Preliminary results from the soil geochemical sampling program have identified northwest striking trends of anomalous Li, Rb, Cs, Nb and Ta, consistent with our regional geological interpretation and DGPR geophysics work

• ● Follow up work including infill soil sampling and field checking to commence shortly

• ● Further soil geochemical lines are planned to extend this program approximately 2km to the south-east

Australasian Metals Limited (ASX: A8G, Australasian or the Company) is pleased to advise that the Company has received confirmation that Exploration License (EL) 32830, representing the Mt Peake Lithium Project in the prospective Northern Arunta pegmatite province, Northern Territory, has been successfully granted by the Northern Territory Mines Department.

The Company has also completed a soil geochemical sampling program focussed on the northwest corner of EL32830, with six sample lines, 400m apart. Sampling was completed at 100m and 50m along lines (Figure 1). The size of the program is such that clear anomalous values can be established over a relative background. The transects were designed to cover sub-cropping or shallowly buried pegmatite dykes or swarms of pegmatites outcropping along the northwest striking into Core Lithium Ltd's (ASX:CXO) tenement to the northwest.

A8G Managing Director Dr Qingtao Zeng commented:

"The granting of the Mt Peake exploration license allows us to be more aggressive with our on-ground exploration. The soil sampling program successfully identified the northwest striking structures which are consistent with the DGPR interpretation. This gives us addedconfidence in our exploration strategy in identifying potentially mineralised pegmatites, and helps to firm up our future drilling targets".

Figure 1: Location of the DGPR survey lines and the soil sample program coverage in the northwest corner of the Mt Peake Lithium project. The base map was the de facto geological map produced by the Company.

About the Soil Geochemistry Survey

The soil samples were submitted to ALS in Perth for analysis by the ionic leach method. This method is a "partial digest" technique that uses very dilute chemical solutions to only extract weakly bound ions from the sample for analysis. Many case studies have shown that partial digests tend to give better discrimination of soil geochemical anomalies over background values. However, the weak nature of the chemical solutions used means that the absolute values of metals returned in the analysis are much lower than those returned from more aggressive digestion techniques such as aqua regia and four acid digests. It is the background-to-anomaly ratio that is the critical factor to consider.

Figure 2: Li content contour map from soil sampling program with DGPR interpretated pegmatite occurrence in shallow depth

The lithium content contour map (Figure 2 above) shows the overall northwest trending anomalism, two of which have reasonable overlaps with interpreted pegmatite dyke structures in the southwest corner of the contour map. The Rb content contour map (Figure 3 below) has defined more clear northwest striking structures and sample JC001 correlates with relatively high Rb enrichment in survey lines covering that area. The Company believes that Li-Rb under the "partial digest" technique has achieved our aim to validate the project's prospectivity for Li-bearing pegmatites at shallow depths.

Next Steps

The results of A8G's maiden soil geochemical sampling program at the Mt Peake Lithium project have outlined several potential targets for further work. The next steps are to extend the program to the south-east in order to double the area covered and to conduct infill sampling to follow up areas of anomalism from this first phase of sampling. Rock chips

Dr Qingtao Zeng	Mr Dan Smith
Managing Director	Joint-Company Secretary
M [phone]	T [phone]
Competent Person Statement

samples are being assayed from the last fieldtrip. Potential outcome could significantly improve our geological understanding on the lithium mineralisation.

Figure 3: Rb content contour map from soil sampling program with DGPR interpretated pegmatite occurrence in shallow depth

This announcement is approved for release by the Board of Directors.

ENDS

For Further Information

The information in this report that relates to Exploration Results is based on, and fairly represents, information and supporting documentation prepared by Graeme Fraser, Non-Executive Director ofAustralasian Metals Limited (A8G). Mr Fraser is a member of the Australasian Institute of Mining and

Metallurgy and he has sufficient experience which is relevant to the style of mineralisation and type of deposits under consideration and to the activity which has been undertaken to qualify as a Competent Person as defined in the 2012 Edition of the "Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves". Mr Fraser consents to the inclusion in this release of the matters based on the information in the form and context in which they appear. Mr Fraser is a shareholder of

A8G.