C29 Metals Limited advised that assay results from its maiden hole at its Pocitos 7 Lithium Brines project have been received. The average grade of three packer assay results was 129 ppm lithium with a maximum assay of 142 ppm lithium indicating a trend that lithium is concentrating at the 400m depth level above a clay layer with low porosity. SGS Laboratories returned these results which have been confirmed by the second set of samples that were sent to Alex Stewart Jujuy Laboratory.

As announced on 7 February 2023, C29 completed its first diamond drill hole at Pocitos 7 (PCT-23-01), on the Pocitos Salar in the province of Salta, Argentina. The hole was drilled to 420m with packer tests intercepting a deep aquifer from 370-400m. A flow test was conducted through a 49mm pipe with a submersible pump and achieved its maximum pumping rate of 2,000L an hour.

In analysing the results, the Company's technical team noted a lower than expected density or specific gravity in the lithium charged brine samples indicating the likely influence of fresh water recharge. The specific gravity of a brine sample is a function of a number of factors including the local porosity of sediments (clays), impact of subterranean fresh water recharge and the chemistry that contributes to an increase in specific gravity. The Company's technical team believes that the presence of hydrological features on the eastern flank of the license has resulted in local fresh water recharge thereby causing the reduced specific gravity.

The next step for the project is to undertake a magnetotellurics (MT) geophysical survey to locate the most prospective position for the next hole. Existing available geophysical data has penetrated only to depths of circa 250m, and an MT survey will allow mapping of geologic structures to depths of at least 500m. The Company expects to conduct an MT survey at both of Pocitos 7 and Pocitos 9 (a license approximately 2.6 kilometres to the south of Pocitos 7).