Empire Resources : Diamond Drilling Commences at Yuinmery

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15 December 2021

ASX Release

DIAMOND DRILLING COMMENCES AT YUINMERY

HIGHLIGHTS

1,800m diamond drilling program underway at the Yuinmery Copper-Gold Project to test down-dip extensions of previously intercepted mineralisation

Drilling to test three high priority targets prospective for Cu-Au,Cu-Ni-Co and PGM's

Smith's Well Copper-Nickel-Cobalt prospect where 16m @ 0.51% Cu, 0.16% Ni & 0.031% Co from 255m (YRC21-28) was recently intercepted [1],

Constantine PGM prospect where shallow anomalous RC results have recently included 12m @ 0.41g/t Pd & 0.05g/t Pt from 120m (YRC21-21), ending in mineralisation [1],

YT01 prospect where broad zones of copper, nickel, gold, platinum and palladium have been intercepted, including 36m @ 0.34% Cu, 0.07% Ni, 0.16% Pd, 0.03% Pt and 0.07g/t Au from 188m (YRC21-16)[1].

Diamond core drilling to test extensions of mineralisation at depth and along strike whilst also providing valuable stratigraphic, structural and petrographic information vital in understanding the mineral assemblages.

Empire Managing Director, Sean Richardson commented:

"The commencement of diamond drilling at Yuinmery is an exciting development for the Company. The diamond core will provide crucial lithological and structural data essential in understanding the localisation of mineralisation at Yuinmery.

"This is an important exploration phase at Yuinmery, and we look forward to updating the market as results become available. The results of the drilling are expected to be available during the March quarter of 2022."

EMPIRE RESOURCES LIMITED	www.resourcesempire.com.au	t [phone]
ACN 092 471 513	[e-mail]
ASX: ERL	159 Stirling Highway, Nedlands WA 6009

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ASX Announcement 15 December 2021

SUMMARY

Empire Resources (ASX:ERL, Empire) is pleased to announce the commencement of diamond core drilling at its Yuinmery Copper-Gold Project in Western Australia.

The 1,800m drilling program is designed to target extensions to mineralisation at Smiths Well, YT01 and Constantine prospects where highly encouraging copper-gold,copper-nickel-cobalt and platinum group metals were encountered in recent deep RC drilling in July 2021 [1].

The 2,244m of reverse circulation (RC) drilling completed in July 2021 further delineated the lateral extent and establish continuity of mineralisation at the YT01 Cu-Au-PGM prospect, Smith's Well Cu-Ni-Co and Constantine PGM prospects.

Smith's Well intercepts included 16m @ 0.51% Cu, 0.16% Ni & 0.031% Co from 255m in drillhole YRC21-28, including 1m @ 1.05% Cu, 0.19% Ni & 0.033% Co from 261m and 5m @ 0.65% Cu, 0.13% Ni & 0.039% Co from 110m in drillhole YRC21-26 including 1m @ 1.90% Cu, 0.18% Ni & 0.038% Co from 112m.

The results reported above from Smith's Well are from the deepest mineralised intercepts drilled to date, supporting the hypothesis that Smith's Well may host economic mineralisation at depth. The mineralised intercepts obtained at Smiths Well since 2019 have very high sulphide content (>50%), primarily Pyrrhotite, enhancing the concept of a substantial mineralised system at depth.

Encouraging PGM results were also returned from drilling at Constantine Prospect, comprising 12m @ 0.41g/t Pd & 0.05g/t Pt from 120m (EOH) in drillhole YRC21-21 including 4m @ 0.64g/t Pd & 0.06g/t Pt from 124m. The drilling at Constantine ended in mineralisation, indicating the mineralised system extends below current drilling depths.

Figure 1 - Diamond Drillers Setup on 1st Hole at Smith's Well

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BACKGROUND

Empire's Yuinmery Project is located 475km northeast of Perth and comprises six contiguous granted mineral tenements covering approximately 106.7km2 within the Archaean Youanmi Greenstone Belt ("YGB").

The Yuinmery Project is bounded by the Youanmi shear zone to the west and the Yuinmery shear zone to the east [2] (Figure 2). Known copper-gold mineralisation at Yuinmery is of volcanogenic massive sulphide (VMS) style. Empire's Just Desserts deposit has a previously reported JORC Resource of 2.5Mt @ 1.31% Cu and 0.49g/t Au [3].

Youanmi Shear

Zone

Yuinmery Shear

Zone

Figure 2 - Yuinmery Project Location Map

Empire has identified a pipeline of Cu, Au, Ni, and PGM targets within its southern Yuinmery tenement area. Multiple targets from greenfields-style conceptual anomalies through to more advanced prospects have been tested by the Company in recent years, culminating the need for diamond drilling techniques to assess deep mineralised targets.

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ASX Announcement 15 December 2021

DIAMOND DRILLING

A 1,800m diamond drilling campaign testing several high priority geochemical and geophysical targets prospective for VMS-typeCu-Au and Cu-Ni-PGM mineralisation has commenced at YT01, Constantine, and Smith's Well.

The program consists of 5 diamond holes to a maximum depth of 450m designed to trace the established mineralisation of those prospects to greater depth.

Diamond drilling allows the lithology to be assessed across the full stratigraphic host sequence, offering valuable structural and geological information important for understanding the relationship between vein hosted and disseminated copper mineralisation. The opportunity to undertake down-hole electromagnetic (DHEM) geophysical surveys in the search for conductors is still present with diamond drilling.

The diamond drilling campaign will run for approximately 4 to 5 weeks until the end of January 2022. Logging, processing and sampling of core will continue throughout the campaign, it is anticipated that final laboratory assays will be returned during the March 2022 quarter.

Figure 3 - Yuinmery Base Metal Deposits, Prospects and Drill Collar Locations

Base Image 2009 VTEM ch25_1641us_NEshade Geophysics

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Smith's Well - Copper-Nickel-Cobalt Potential

In May 2020 Empire identified a steeply plunging structure trending in a northeast direction at Smith's Well. This structure has been tested by RC drilling for over 200m of strike and to 240m vertical depth. The structure is associated with the regional magnetic trend and remains open to the northeast and down dip. There is high probability that the copper-nickel mineralisation will continue beyond the zone already identified.

Drilling to date has returned broad zones of disseminated to matrix sulphide mineralisation, including chalcopyrite, pyrrhotite and pyrite in varying concentrations. Drill intercepts of >1% Cu, and associated nickel (>0.2% Ni), gold and cobalt values demonstrate the potential of the prospect [5].

Three RC holes drilled in July 2021 [1] also intersected a steeply dipping, broad zone of Cu-Ni- Co mineralisation on the contact between ultramafic rocks and overlying dolerite. Where seen, this contact can be both sharp and irregular, however the mineralisation occurs as matrix and disseminated sulphides within the ultramafic rocks.

The July 2021 RC drilling encountered mineralisation increasing in thickness at depth (Figure

1. in what is interpreted to be a shallowing structure and lithological boundary. Empire believes it may be drilling on the edge of a more laterally extensive sulphide pile. Alternatively the increased thickness seen in the mineralisation could possibly be related to a switch from an extensional regime to a compression regime, post the main mineralisation event at Yuinmery resulting in the remobilisation of mineralisation to its current position.

Figure 4 - Smith's Well Oblique Cross Section

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