Empire Resources : Massive Sulphides at Smiths Well Prospect (Amendment)

For personal use only

16 February 2022

ASX Release

MASSIVE SULPHIDES AT SMITHS WELL PROSPECT (AMENDMENT)

Empire Resources Limited ("Empire") wishes to lodge an amendment to the announcement "Massive Sulphides at Smiths Well Prospect" of 14 February 2022.

At the request of ASX Compliance, the cautionary language in relation to visual estimates of sulphide mineral abundance has been modified. The amendment is to the last paragraph on page 2 of the announcement.

For convenience the amended paragraph is replicated below, with amendments highlighted in bold text.

"These observations are preliminary in nature and estimates of sulphide minerals are visual only. Visual estimates of sulphide abundance are based on the Company's sulphide field logging guideline (Table 2). Visual estimates of sulphide mineral abundance should never be considered a proxy or substitute for laboratory analysis. Laboratory analysis is required to determine the widths and grades of visual sulphide estimates. Samples have been collected onsite and submitted to a commercial laboratory for chemical analysis. Petrographic samples will be collected for rock and mineralogy classification."

There are no other amendments to the announcement, which is attached to this notification.

This announcement is authorised for release by:

Sean Richardson

Managing Director

For further information on the Company

Phone: [phone]

www.resourcesempire.com.au

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

For personal use only

16 February 2022

ASX Release

MASSIVE SULPHIDES AT SMITHS WELL PROSPECT

HIGHLIGHTS

30m of massive to disseminated pyrrhotite-chalcopyrite-pyritesulphides intersected from 276.1m downhole (YDD22-02) at Smiths Well prospect, Yuinmery

Downhole electromagnetic (DHEM) surveys at Smiths Well define high conductance (modelled up to 20,000S) along strike of previously intercepted mineralisation

The mineralisation is interpreted to be orthomagmatic in nature and is hosted in mafic-ultramafic rocks with massive pyrrhotite and globules of pyrite rimmed by chalcopyrite

Samples have been collected and submitted for laboratory analysis

Diamond core drilling continues at Smiths Well with hole YDD22-03 targeting the strike extension of the strong downhole electromagnetic conductor

Empire Managing Director, Sean Richardson commented:

"Massive and disseminated sulphides observed in YDD22-02 at Smiths Well are consistent with the high conductance downhole electromagnetic geophysical response detected from hole YDD21-01. This outstanding result verifies the strike and plunge extension to the mineralised horizon, offering an excellent opportunity for a significant copper-nickel-cobalt discovery at Yuinmery.

"The diamond drilling program continues at Yuinmery with hole YDD22-03 targeting strike extensions to the modelled conductor at Smiths Well prospect. The Company looks forward to updating the market as results from this drilling becomes available."

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

For personal use only

ASX Announcement 16 February 2022

SUMMARY

Empire Resources (ASX:ERL, Empire) advises that it has intersected 30m of massive to disseminated pyrrhotite-chalcopyrite-pyritesulphides from 276.1m in diamond hole YDD22-02 at the Smiths Well prospect, Yuinmery. Pyrrhotite is the dominant sulphide mineral in all zones. A breakdown of the intercept is as follows.

276.1m - 278.1m: Massive to semi-massive sulphide (pyrrhotite-pyrite-chalcopyrite)

278.1m - 284.7m: Disseminated/stringer sulphide (pyrrhotite-pyrite-chalcopyrite)

284.7m - 303.5m: Massive sulphide (pyrrhotite with scattered blebby chalcopyrite and globules of pyrite rimmed by chalcopyrite)

303.5m - 306.1m: Disseminated/stringer sulphide (pyrrhotite-pyrite-chalcopyrite)

Diamond hole YDD22-02 (Figure 4) was designed to target a strong conductor modelled from downhole electromagnetic (DHEM) surveys completed in January 2022. The strongly responsive conductor is interpreted to be a down plunge extension of the Smiths Well mineralisation, where previous intersections included 16m @ 0.51% Cu, 0.16% Ni & 0.031% Co from 255m in drillhole YRC21-28, 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 [1].

The massive to disseminated intercept lies within an interpreted mafic-ultramafic sequence comprising coarse grained gabbroic rocks with very coarse grained (glomeroporphyritic) domains, dolerite, basalt and ultramafic lithologies.

Figure 1 - YDD22-02 Massive pyrrhotite with	Figure 2 - YDD22-02 Massive pyrrhotite with
disseminated blebby chalcopyrite and	blebby pyrite and patchy disseminated
globules of pyrite rimmed by chalcopyrite	chalcopyrite
@299.7m

These observations are preliminary in nature and estimates of sulphide minerals are visual only. Visual estimates of sulphide abundance are based on the Company's sulphide field logging guideline (Table 2). Visual estimates of sulphide mineral abundance should never be considered a proxy or substitute for laboratory analysis. Laboratory analysis is required to determine the widths and grades of visual sulphide estimates. Samples have been collected onsite and submitted to a commercial laboratory for chemical analysis. Petrographic samples will be collected for rock and mineralogy classification.

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ASX Announcement 16 February 2022

For personal use only

Figure 3 - Visible Sulphides in YDD22-02 from 289.72m (Trays 71-74)

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ASX Announcement 16 February 2022

Smiths Well - Copper-Nickel-Cobalt Potential

In May 2020 Empire identified a steeply plunging structure trending in a northeast direction at the Smiths Well prospect. 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 [2].

In January 2022, Empire engaged Southern Geoscience Consultants (SGC) to undertake a downhole electromagnetic (DHEM) survey at Smiths Well. The DHEM survey predominantly focussed on identifying conductors along strike and down plunge of previously identified and drill confirmed conductors.

A single strong anomaly was detected from hole YDD21-01 using a loop designed to couple with the known geometry from previous drilling. A plate with high conductance of ~20,000 S was modelled up dip and to the northeast of the drill hole. The modelled plate (Figure 6) dips at 53° towards the northwest and has extensive strike length of 159 m. The fit between the observed and modelled response is very good and the conductor is believed to be a strike extension of the main Smiths Well mineralisation horizon.

Diamond drill hole YDD22-02 was planned to intercept the modelled plate 50m along strike and two-thirds up dip from the modelled base of the conductor where it is expected that an extensive sulphide pile has formed. The drillhole intercepted massive to disseminated sulphides at 276.1m as planned and the thick downhole intercept of 30m conforms to the prevailing geological model.

Diamond drilling continues at Yuinmery where hole YDD22-03 at the Smiths Well prospect tests the strike extension of the January 2022 modelled DHEM conductor.

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