Group 6 Metals : Quarterly Activities and Cash Flow Report to 31 March 2022

ASX ANNOUNCEMENT

27 APRIL 2022

Quarterly Activities and Cash Flow Report to

31 March 2022

Highlights

• • Construction commences at the Dolphin Tungsten Mine with first concentrate production on track for Q1 2023

• • Early commitment to long lead time items in 2021 resulted in fixed price contracts and has significantly reduced delays in delivery schedules

• • Strengthened ESG commitment at Dolphin Tungsten Mine following the receipt of several regulatory approvals and commitment to Land Conservation Covenant

• • Ammonium Paratungstate (APT) prices continued to climb reaching 8-year highs

• • Keith McKnight appointed Chief Executive Officer, bringing 22 years' experience in the mining and resources industry to the role

• • Megan McPherson appointed Chief Financial Officer after being contracted to the Company since August 2020

• • $20.8 million in cash, $10 million in debt and $32.5 million in undrawn debt facilities as at 31 March 2022

Group 6 Metals Limited (ASX: G6M, "G6M" or the "Company") is pleased to report on its activities for the quarter ending 31 March 2022.

Construction of the Dolphin Tungsten Mine Commences

Construction of the redeveloped Dolphin Tungsten Mine on King Island, Tasmania has commenced. The Company overcame challenges in the mining equipment supply chain to secure a delivery date in the third week of January 2022 for the CAT D8T bulldozer.

Following the arrival of the first dozer to the mine site, and having obtained all the requisite regulatory approvals, stripping vegetation and stockpiling of topsoil, for the process plant area commenced on 26 January 2022. These activities were a precursor to the commencement of bulk earthworks required for the civil works on which the processing plant will be constructed.

Heavy equipment mobilisation has continued to advance and site earthworks for the process plant are nearing completion for the start of civil works. The civil contractor undertaking the civil works has been engaged and will mobilise to the project site to commence work in April. An Engineering,

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Procurement and Construction (EPC) Contract has been executed with Gekko Systems for the process plant, with mechanical construction on site due to commence in May 2022.

The Company has significantly expanded its team on site during the quarter, and is very happy to welcome several high calibre, experienced people to its site management team.

DZ01 Dozer arriving on site to start earthworks: Jan 22

Official Sod Turning Ceremony at Dolphin: pictured are Gavin Pearce MP, Guy Barnett MP, Chairman Johann Jacobs and GM Chas Murcott: February 22

Compaction rolling of process plant area: Mar 22

Process plant earthworks nearing completion: March 22

Early commitment to long lead time items

In August 2021, the Company committed to long lead time items by paying deposits to secure fixed price and timeous manufacture of critical items utilised in the processing plant. This has placed the Project in good standing given widespread price escalations and delays currently being experienced in the construction industry.

Covid however continues to impact on deliveries with much of the imported equipment being potentially delayed through Covid lockdowns and related staff shortages. The Company is continuously monitoring the situation and is implementing mitigation measures to minimise impacts of delays.

Multi Gravity Separators at the factory awaiting shipment and installation at the Dolphin Tungsten Mine

Spirals being assembled at factory and place in supporting skid for shipment to Dolphin

The following chart provides an indicative timeline of major activities planned for 2022 on the path to achieving plant commissioning in early 2023 ahead of first shipment of tungsten concentrate in Q1 2023.

Bulk earthworks at the process plant site was completed in early April and the civil contractor mobilising to site in mid-April. The Company is investigating various alternatives to make up time due to the later than anticipated start of the civil works.

FIFO accommodation is on schedule with several recently purchased houses on the Ballarat Clarendon College Campus having been renovated and occupation of the houses has commenced. This facility together with the previously purchased Grassy School House will provide significant staff accommodation and messing facilities. Additional temporary accommodation units will be shipped to Grassy in the next month.

Dolphin Tungsten Mine ESG Commitment

Following the receipt of multiple regulatory approvals, Group 6 Metals has continued to execute its plan to redevelop the Dolphin Tungsten Mine in a responsible and sustainable manner which preserves the environment.

The Company has committed 33.7 Ha of land as Conservation Covenant area on its mine site at Grassy. The covenanted area will protect important stands of Blue Gum Eucalyptus Forest which provides nesting sites and habitat for some of King Island's threatened flora and fauna. This area, which is significantly more than the EPN requires, extends the existing conservation area on King Island and adds to the forested areas surrounding the upper Grassy Dam.

A grant provided by the Tasmanian government to Hydro Tasmania (ASX Announcement 2nd December 2021) for upgrading the capacity of the 11Kv line to the Dolphin Tungsten Mine will provide the mine with access to power from the King Island grid for construction and mining operations.

G6M is prioritising local residential employment where practical and will implement training programmes for local people seeking skilled employment at the mine site. Historically the Dolphin Tungsten Mine was a key economic driver of King Island's economy, and through its redevelopment, it can play a significant role again.

Tungsten Market

The value of tungsten, as referenced by the price of ammonium paratungstate (APT) traded on international markets, has continued to rise. As at March 2022, the European APT price had risen to US$345-353/mtu - the highest price in the last five years, as charted below.

Corporate

Keith McKnight appointed Chief Executive Officer

Group 6 Metals announced the appointment of Keith McKnight as Chief Executive Officer through a consultancy agreement with Dara Advisory Pty Limited, effective 24 January 2022.

Mr McKnight joins Group 6 Metals with more than 22 years of mining and resources project delivery and company management experience in Australia and overseas in the areas of mechanical design, contract management, construction management, commissioning and operations management.

He was previously Managing Director and co-founder of Kirrama Resources Limited, a commodities development company with chromite and manganese projects in Madagascar. Mr McKnight has extensive experience spanning a range of commodities and has a Bachelor's Degree in Mechanical Engineering (Honours) from the University of Limerick.

Megan McPherson appointed Chief Financial Officer

Megan McPherson joined Group 6 Metals in a full-time capacity as Chief Financial Officer in January after being contracted with the Company in the role since August 2020.

Ms McPherson is a Chartered Accountant with more than 18 years of commercial and public practice experience across multiple jurisdictions including ASX and NASDAQ listed companies. Having commenced her career with Macquarie Bank, Ms McPherson has provided CFO/Company Secretary services as a consultant to several public and private companies in the mining industry. As CFO of G6M and the head of the finance team, Ms McPherson will manage the day-to-day operations of the division, its people and resources.

Ms McPherson is a member of the Chartered Accountants Australia and New Zealand and holds a Bachelor of Commerce (Accounting) from the University of Wollongong.

Change of Company Secretary

Ian Morgan retired as the Company's secretary and the person responsible for communication with the ASX, effective Tuesday 1 March 2022.

The Board thanks Ian for his tireless efforts and for his support of G6M over many years. Effective Tuesday 1 March 2022, Ms Megan McPherson was appointed as the Company's secretary and the person responsible for communication with the ASX.

Cash Position

The Company's cash position as at 31 March 2022 was $20.792 million.