Eastern Metals : High Grade Zinc Zone Discovered at Browns Reef

ASX ANNOUNCEMENT

26 APRIL 2022

High Grade Zinc Zone

Discovered at Browns Reef

Highlights

• • Eastern Metals' initial drilling program at Browns Reef was completed in March 2022 with mineralisation intersected in all four holes extending the lode along strike and at depth;

• • High grade zinc assay results received from all holes drilled;

• • Mineralised intervals include:

  • o BRD016: 6.0m @ 3.2% Zn, 1.3% Pb, 0.12% Cu, 8.6 g/t Ag and 0.3 g/t Au from 453.5m;

  • o BRD017: 13m @ 5.4% Zn, 2.3% Pb, 0.14% Cu, 11.5 g/t Ag and 0.9 g/t Au from 225m including 2m @ 14.6% Zn, 5.1% Pb, 0.22% Cu, 22.5 g/t Ag and 0.5 g/t Au from 225m;

  • o BRD018: 16m @ 4.1% Zn, 1.6% Pb, 0.33% Cu, 27.5 g/t Ag and 0.4 g/t Au from 251m including 6m @ 7.3% Zn, 2.3% Pb, 0.58% Cu, 47.7 g/t Ag and 0.9 g/t Au from 251m;

  • o BRD019: 12.5m @ 8.1% Zn, 2.6% Pb, 0.10% Cu, 17.3 g/t Ag and 0.5 g/t Au from 269.5m including 8.5m @ 9.8% Zn, 2.7% Pb, 0.12% Cu, 22.9 g/t Ag and 0.6 g/t Au from 269.5m, and two significant Cu-rich zones which averaged 1.9% Cu over 4m from 279m and 1.4% Cu over 3m from 295m.

• • Potential discovery of a significant high grade zinc zone with elevated levels of Pb, Cu, Ag and Au;

• • Lode now identified over a strike length of more than 100m and vertical depth of 300m and remains open along strike and at depth;

• • We are calling this zone, formerly referred to as the Northern High Grade Zone, the Evergreen Zone; and

• • Follow up diamond drilling program to extend the Evergreen Zone further along strike has been planned and has received regulatory approval.

Eastern Metals Limited (ASX: EMS, 'Eastern Metals' or 'the Company') is pleased to announce that assays have now been received from the Company's initial diamond drilling campaign at Browns Reef with high grade broad intersections of sulphide mineralisation identified in all four holes drilled. This has extended the lode approximately 50m above and below the historic BRD013 (drilled by Kidman Resources) and at least 50m along strike to both the south and north of BRD013. Interpretation of drill results will continue however these results are thought to be the first stage of a significant high grade zinc-dominated polymetallic zone discovery at Browns Reef.

ASX: EMS •[e-mail]• www.easternmetals.com.au • Page 1 of 12

Managing Director and CEO, Wayne Rossiter said

"This initial drilling campaign has been an outstanding success with high grade mineralisation encountered in all holes over significant mineralised intervals. The Evergreen Zone lode has a current strike length of over 100m and vertical depth of at least 300m and remains open along strike and at depth. Our next steps will be to drill further along strike and this program has received regulatory approval".

Browns Reef

Browns Reef lies 5km to the west of the town of Lake Cargelligo, approximately 470km west of Sydney. The area surrounding the Browns Reef base-metal deposit is utilised for agricultural purposes, including grazing and cropping.

The known deposit at Browns Reef occupies a small part of the tenement. Most of the deeper drilling to date has been confined to a zone approximately 2.7km long in the central to southern part of the tenement and is situated on the eastern flank of the interpreted 9km long synclinal structure.

Figure 1 shows the interpreted geology of the Browns Reef project area. This drawing also shows the location of the two high grade zones identified by Eastern Metals for further and more detailed follow-up drilling. The northern-most of these zones, formerly known as the Northern High Grade Zone and now known as the Evergreen Zone, is centred near the historic hole BRD013 drilled by Kidman Resources, which returned an intersection of 7.0m averaging 5.5% Zn, 2.3% Pb, 0.5% Cu, 20.2 g/t Ag and 0.5 g/t Au. This is the area that was tested by the Company's recent drilling program.

A long section through the eastern limb of the structure shown in Figure 1, is shown in Figure 2. This drawing also shows the location of the two high grade zones identified for further and more detailed follow-up drilling. The four red "dots" surrounding BRD013 in the Northern High Grade Zone, now known as the Evergreen Zone, were the planned pierce points for the Company's recent four hole drilling program. A more detailed long section of the Evergreen Zone incorporating the results of the recent drilling and the interpreted lode outline is shown in Figure 3.

Figure 1 Interpreted Browns Reef structure with the location of the previous high grade broad intersections which are the initial focus of Eastern Metals' exploration.

Figure 2 Long section of Browns Reef deposit previously drilled which identifies the Browns Reef North "High Grade Target Zone", now known as the Evergreen Zone.

Figure 3 Long Section of Browns Reef Evergreen Zone.

A photograph of the massive sulphide intersection in hole BRD18 from 253.0m to 255.5m down hole is shown in Figure 4.

Figure 4 Massive sulphide mineralisation in drill core from hole BRD018 253.0m-255.5m.

The collar coordinates and other essential details of the four diamond holes drilled by Eastern Metals to test the Evergreen Zone are tabulated in Appendix 1. The surface projections of these holes and holes drilled earlier by Kidman Resources and another previous tenement holder, Equity 1, in the Evergreen Zone area are shown in Figure 5.

Figures 6, 7 and 8 are cross sections spaced at 50m intervals along strike and show each of the holes drilled by Eastern Metals and the previous tenement holders together with logged sulphide intervals and the interpreted lode and footwall hydrothermal breccia. Continuity of the narrow mineralised interval intersected west of the main lode in Hole BRD016 [3.0m from 372.5m to 375.5m down hole (estimated true width 1.8m)] has yet to be determined. The deeper 18.7m sulphide intersection in BRD016 has extended the main lode to a vertical depth of 300m. The 15.3m sulphide intersection in BRD017 has confirmed the continuity of the lode between Kidman Resources' holes BRD006 and BRD013.

Eastern Metals has planned a follow-up diamond drilling program designed to test for further extensions to the Evergreen Zone along strike to the north and south. Regulatory approvals for this program have been received. This program is scheduled for later this financial year.

The Company has also designed a diamond drilling program to test the other high grade zone shown in Figure 2, the Southern High Grade Zone. This program will be undertaken when all necessary approvals are in place.

In addition, a RAB drilling program has also been planned to test for geochemical anomalies over the western limb and other areas of the structure shown in Figure 1. There is no previous deep drilling in this area, and very limited prior exploration.