Enegex : Quarterly Activities/Appendix 5B Cash Flow Report

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ASX Announcement

ASX:ENX

29 July 2022

Quarterly Activities Report

For the period ending 30 June 2022

Highlights

• Reconnaissance field visits undertaken to target areas at Miamoon, Miling and Walebing.
• Access negotiations continuing with landholders at Miamoon, Miling and Walebing
• Soil sampling program completed at the Miamoon Project.
• Successful Exploration Incentive Scheme (EIS) application for RC drilling at the Miamoon Project.
• Prospectivity study completed for the Hart Project.

West Yilgarn Ni-Cu-PGE Projects - Enegex 100%

Enegex (ASX: ENX) has built a strategic tenure position in the West Yilgarn Ni-Cu- PGE province of Western Australia. The prospectivity of the West Yilgarn as an endowed mineral province is highlighted by the discovery of the nearby Gonneville Ni- Cu-PGE resource at Julimar (Figure 1) by Chalice Mining.

The province is now a focus of exploration activity following the Julimar discovery.

Figure 1. Enegex Tenure across the West Yilgarn Ni-Cu-PGE

Province.

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Enegex Project Overview

Enegex has divided its West Yilgarn tenements, into five project areas; Miamoon, Miling, Walebing, Goomalling and Green Hills (Figure 2).

Archean geology across the Enegex project areas is not well defined. Private freehold farming land that is prevalent across the West Yilgarn province. As a result, the area has, until recently, undergone precursory geology and explorative work largely limited to broad-scale government mapping, interpreting the bedrock geology as metamorphic sedimentary, greenstone and granite (Figure 2). Economic potential of the province is highlighted by the Julimar discovery of Ni-Cu-PGE mineralisation within a mafic-ultramafic host rock sequence (the Gonneville intrusion) in an area historically interpreted to be a granitic domain.

Figure 2. GSWA Interpreted bedrock geology 1:500,000 scale showing Enegex Tenure.

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Whilst the geology of Enegex tenements is at this stage not well defined, government geology maps record small areas of outcropping mafic (greenstone) to ultramafic units scattered across a number of the tenement areas including Miamoon and Milling. The presence of these mafic- ultramafic rock units on Enegex tenements is encouraging, with further definition and evaluation of these units needed to determine mineralisation potential.

Exploration Activities

Miamoon and Miling Priority Project Areas

Activities during the quarter were directed toward the refinement and ranking of exploration targets, with a number of reconnaissance field visits made to various target areas.

Substantial effort was directed towards land access arrangements with local landowners to gain access to targets on private freehold property. Access was granted to a further 4 properties during the quarter and negotiations on other properties was further advanced.

Enegex's near term objective is to define quality drill targets at Miamoon and Miling for drill testing as soon as feasible. Target rankings are being dynamically assessed based on accessibility, reconnaissance field visits and geochemical sampling.

Miamoon Project

At its flagship Miamoon Project, Enegex acquired an Airborne Falcon Gravity Gradiometer (AGG) survey over the western part of the Miamoon Project in late 2021 for which interpretation and modelling was subsequently completed.

Numerous geophysical target areas were defined from the gravity data interpretation and are shown on the right panel of Figure 3, with priority targets highlighted in red.

Enegex was notified that its submission for a DMIRS co-funded drilling grant under the Exploration Incentive Scheme (EIS) in respect of RC drilling at the Miamoon Project was successful. The grant is for an amount of $90,500 and based on drilling 6 RC holes for 1600m to test the Spitfire target.

However, access has not been granted over the 'Spitfire' and 'Crusader' priority areas and accordingly, limited progress has been made to progress these targets. Negotiations for the landholding that covers the Spitfire target will be the focus of negotiations for the September quarter.

Figure 3. Miamoon Gravity Survey and anomalies.

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A soil sampling program consisting of 112 samples was completed in late April on the northern geophysical target (Figures 3 and 4) and samples were analysed at Intertek, Perth. Although the results showed no significant anomalisim, the data will be further analysed in conjunction with field mapping to build our geological model and determine the source of the geophysical anomalies that were targeted.

Figure 4. Soil sample location map at the Miamoon northern geophysical target over a total magnetic intensity image.

Miling Project

At its Miling Project, Enegex continued data integration and interpretation to refine initial target areas where magnetic anomalies are coincident with prospective stratigraphy and also where mineralised trends identified on adjacent tenements potentially extend in strike into Enegex tenements (Figure 5).

Field reconnaissance and ground-truthing was undertaken over 2 properties within the Miling Project during the quarter that generally had good outcrop exposure (Figure 6). Several occurrences of mafic and ultramafic rocks were observed that are potential host rocks for the mineralisation style that Enegex is targeting. More detailed mapping is planned to be carried out in these areas during the September quarter.

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Figure 5. Miling Project target areas on magnetics and

anomalous geochemistry zones.

Access was granted to one of the landholdings that covers some of Enegex's high priority targets within the Miling project and negotiations with other landholders are ongoing. Landowner access negotiations for the northern part of E70/5445 where the Ni-Cu-PGE anomaly in the adjacent Todd River Resources tenure is projected to extend are also ongoing.

Figure 6. Photo

showing typical outcrop at one of the properties that was reconnaissance mapped during the quarter.

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