Okapi Resources : to acquire Hansen Deposit - Resource increased by 81%

7 April 2022

Agreement Executed to Acquire 51% of

High-Grade Hansen Uranium Deposit JORC Resource Increased 81% to 49.8 Mlb U3O8

Highlights

• • Acquisition increases the size of Okapi's JORC Resource at the Tallahassee Uranium Project by 81% to 49.8 million pounds of U3O8 and increases the grade by 10% to 540ppm U3O8 transforming Okapi into significant player in the USA uranium market

• • Hansen Uranium Deposit is a high-grade, shallow deposit located immediately south of, and adjacent to, Okapi's 100%-owned Taylor and Boyer Uranium Deposits

• • Hansen Uranium Deposit was discovered in 1977, feasibility studies were completed and it was fully permitted to commence production prior to the collapse of the uranium market in 1982

• • Okapi is continuing to consolidate pounds within the Tallahassee Uranium District

• • Highly accretive acquisition for Okapi shareholders with the acquisition of 22.2 million pounds U3O8 at 610ppm U3O8 for the modest upfront cost of US$500,000 which is fully funded by existing cash reserves

Okapi Resources Limited (ASX: OKR) (Okapi or the Company) is pleased to announce it has entered into a binding agreement to acquire an option over a 51% interest in the Hansen Uranium Project in Colorado, USA. The Hansen Uranium Deposit is located immediately south of, and adjacent to, Okapi's 100%-owned Taylor and Boyer Uranium Deposits, and comprises two deposits known as the Hansen Uranium Deposit and the Picnic Tree Uranium Deposit. The Hansen and Picnic Tree Uranium Deposit contains a JORC (2012) Mineral Resource of 22.2 million pounds U3O8 at 610 ppm U3O8 (100% of which is attributable to Okapi via its 51% mineral interest). Therefore, Okapi's updated JORC (2012) Mineral Resource for the Tallahassee Uranium Project is now 42.0 million tonnes at 540ppm for 49.8 million pounds of U3O8 representing an 81% increase to the size and an increase of 10% to the grade of Okapi's existing JORC (2012) Mineral Resource. The Company is continuing to assess other opportunities within the district to further consolidate its landholdings.

Okapi's Managing Director, Mr Andrew Ferrier said:

"This acquisition represents a very important transaction for Okapi and its shareholders. By securing this strategic 51% interest in the Hansen Uranium Project, we now have sufficient resource inventory to advance the Tallahassee Uranium Project as a stand-alone asset.

Recent geopolitical events have put increased focus on the importance of the US revitalising its domestically sourced uranium, which will undoubtably place a significant premium on US uranium assets such as Hansen. The issue is significantly compounded by the fact that 46% of US uranium is currently sourced from Russia,Kazakhstan and Uzbekistan (Source: U.S. Energy Information Administration - Sources and shares of total US purchases of uranium in 2020)."

JORC Compliant Resource

JORC 2012 Mineral Resource Estimate for the Tallahassee Uranium Project
Deposit	Measured	Indicated	Inferred	Total
Tonnes (000)	Grade U3O8 (ppm)	lbs U3O8 (000)	Tonnes (000)	Grade U3O8 (ppm)	lbs U3O8 (000)	Tonnes (000)	Grade U3O8 (ppm)	lbs U3O8 (000)	Tonnes (000)	Grade U3O8 (ppm)	lbs U3O8 (000)
Hansen & Picnic Tree	-	-	-	7,309	640	10,360	9,277	580	11,874	16,586	610	22,234
Taylor & Boyer	-	-	-	7,641	520	8,705	14,869	460	15,172	22,513	480	23,877
High Park	2,451	550	2,960	24	590	30	434	770	734	2,907	580	3,724
Total	2,451	550	2,960	14,976	580	19,095	24,580	510	27,780	42,007	540	49,835

JORC 2012 Mineral Resource Estimate for the Tallahassee Uranium Project
Cut-off	Measured	Indicated	Inferred	Total
Tonnes (000)	Grade U3O8 (ppm)	lbs U3O8 (000)	Tonnes (000)	Grade U3O8 (ppm)	lbs U3O8 (000)	Tonnes (000)	Grade U3O8 (ppm)	lbs U3O8 (000)	Tonnes (000)	Grade U3O8 (ppm)	lbs U3O8 (000)
250ppm	2,451	550	2,960	14,976	580	19,095	24,580	510	27,780	42,007	540	49,835
200ppm	3,055	490	3,292	22,181	430	20,940	38,570	400	33,653	63,806	410	57,885
100ppm	5,626	330	4,055	43,839	330	31,733	81,830	250	44,494	130,918	280	80,781

Okapi's updated JORC (2012) Mineral Resource for the Tallahassee Uranium Project is now 42.0Mt at 540ppm U3O8 for 49.8 million pounds of U3O8 using a 250ppm cut-off grade.

United States Uranium Projects Listed on the ASXCompanyASX CodeProjectTonnesGrade (U3O8)Pounds (U3O8)Cut-off grade

(U3O8)

Peninsula Energy Okapi Resources

PEN OKR

Lance Tallahassee

50.7Mt 42.0Mt

480ppm 540ppm

53.6Mlbs 49.8Mlbs

200ppm 250ppm

Sources: Peninsula Energy Limited Annual Report announced to ASX on 30 September 2021;https://www.pel.net.au/projects/lance-projects-wyoming/jorc-code-compliant-resources/.

The updated Mineral Resource reflects Okapi's new ownership interest in the district, which is now a 100% mineral interest in Taylor, Boyer and High Park deposits and a 51% mineral interest in Hansen and Picnic Tree deposits.

Table 1 - Tallahassee Uranium Resource Estimate by Deposit

Notes: Figures for Hansen & Picnic Tree represent 51% of the total JORC Resource for these deposits reflecting Okapi's 51% ownership interest. Calculated applying a cut-off grade of 250ppm U3O8. Numbers may not sum due to rounding. Grade rounded to nearest 10ppm.

Table 2 - Tallahassee Uranium Resource Sensitivity Analysis

Notes: Figures for Hansen & Picnic Tree represent 51% of the total JORC Resource for these deposits reflecting Okapi's 51% ownership interest.

Calculated applying a cut-off grade of 250ppm U3O8. Numbers may not sum due to rounding. Grade rounded to nearest 10ppm. The Resource estimate is calculated at 250ppm and the tabulation of other cut-offs is for information purposes only.

Hansen Uranium Project Acquisition

Okapi has entered into a Binding Term Sheet with STB Minerals LLC (STB Minerals), a Colorado company which own a 51% interest in Hansen and Picnic Tree Uranium Deposits as depicted in Figure 1.

Figure 1 - Tallahassee Uranium Project

The Tallahassee Uranium Project is hosted in favourable sandstone hosted uranium deposits with the Hansen and Picnic Tree Uranium deposits being significantly drilled in the past (as demonstrated in Figure 1 above) with a relatively tight drill spacing of 100 feet (30.5m). The Hansen Deposit has some of the highest grades and widths in the district contained within flat-lying tabular horizons up to 50 metres thick and at a depth of between 150m and 200m as shown in the cross section in Figure 2.

Since Okapi's original acquisition of Tallahassee Resources in July 2021, Okapi has continued to consolidate a strategic position in one of the most prolific uranium districts in the USA - the Tallahassee Creek Uranium District in Colorado.

The greater Tallahassee Creek Uranium District hosts more than 100 million pounds of U3O8 with considerable opportunity to further expand the existing resource base by acquiring additional complementary assets in the district.

This acquisition of a 51% interest in the Hansen Deposit and Picnic Tree Deposit further demonstrates Okapi's in-depth knowledge of, and experience operating in, the North American uranium sector.

Figure 2 - Oblique Cross Section through the Hansen Deposit

Hansen Uranium Deposit

The Hansen Uranium Deposit was discovered in 1977. The discovery hole included a 13m interval of 1600ppm U3O8 and 100m of the favourable Echo Park sandstone. Mineralisation in the district had been discovered in outcrop and little drilling had been completed, so the discovery was a significant development. Approximately 1,000 drill holes have been completed across both the Hansen and Picnic Tree Uranium Deposits. The Hansen Deposit has been defined as 1,400m x 500m, large, tabular sandstone deposit. The sandstone was deposited in a fluvial-braided stream environment, infilling a paleaochannel. Deposition occurred when uranium-bearing ground water moved through the sandstone layers with depositing uranium minerals in areas enriched with carbonaceous material.

Operations were to employ predominantly open pit mining; underground mining was to continue from the base of the Hansen Pit. Ore was to be processed through a 1Mt per annum conventional acid leach plant to be located on the adjoining Taylor Ranch Property. Metallurgical recoveries were predicted to be 95% from the acid leach plant. The collapse of the uranium market in 1982 halted development operations at the Hansen Project.

Activity in the area re-commenced in 2006 when ASX-listed explorer Black Range Minerals began acquiring uranium leases in the Tallahassee district. By 2010 Black Range Minerals had acquired the majority of the mineralisation in the district and completed multiple drilling programs. Black Range Minerals ultimately published a JORC 2012 Mineral Resource of 90.4 million pounds of U3O8 at 600ppm U3O8 when applying a 250ppm U3O8 cut-off (Source: Black Range Minerals Announcement dated 23 April 2014, Hansen / Taylor Ranch Uranium Project - JORC Code 2012 Mineral Resource Estimate).

Acquisition Terms

The Binding Term Sheet with STB Minerals LLC outlines the terms of an 8-year option to purchase the 51% mineral interest. Key terms of the term sheet are outlined below.

• 1. US$50,000 on executing the Binding Term Sheet.

• 2. US$450,000 on entering a definitive option agreement (Definitive Agreement) within 60 days of entering the Binding Term Sheet.

• 3. Execution of the Definitive Agreement is subject to: completion of due diligence investigations by Okapi to its sole and absolute satisfaction; agreement on the final form of the STB Royalty Deed (refer below for details); and the parties obtaining all necessary regulatory approvals or waivers and third-party approvals and consents necessary to complete the matters contemplated by the Definitive Agreement.

• 4. Okapi can maintain the option for 5 years by paying US$250,000 annually subject to any inflation adjustments.

• 5. During the option period, Okapi has the right to conduct mineral prospecting, exploration, development, mining and related activities on the properties comprising the Hansen Uranium Project.

• 6. Okapi can continue the option for a further 3 years by paying US$500,000 annually subject to inflation adjustments.

• 7. Okapi has the right to exercise the option at any time during the 8 years by payment of US$5,000,000 at which time STB Minerals will transfer to Okapi it full 51% mineral interest reserving a royalty of 1.5% net returns over their 51% mineral interest (STB Royalty). Upon exercise of the option, Okapi will not be required to pay any further option fees.

• 8. Okapi would have the right to purchase 50% of STB Royalty at any time after Closing by paying STB Minerals US$500,000.

The upfront payment of US$500,000 will be funded by the Company's existing cash reserves.

The Company also confirms it will issue 3.0 million Deferred Consideration Shares to the vendors of Tallahassee Resources Pty Ltd in accordance with the milestones announced to ASX on 12 July 2021 and approved by shareholders on 20 August 2021.

Forward Work Plan

Okapi will now look to commence metallurgical testwork and initial conceptual mine design work to determine the most appropriate work programs to implement thereafter with a particular focus on assessing In Situ Recovery (ISR). ISR is currently the dominant method used to extract uranium in the United States and is recognised as safe and low impact.