Investigator Resources : Paris PFS Delivers Outstanding Results

ASX: IVR

ASX ANNOUNCEMENT

For personal use only

Cautionary Statements

The Pre-Feasibility Study ("PFS") discussed herein has been undertaken to explore the technical and economic feasibility of developing an open pit mine and adjacent processing facility to economically and sustainably exploit the Paris Silver Mineral Deposit located in the Eyre Peninsula Region of South Australia.

The Paris Silver Project ("Paris" or "Project") is 100% owned by Investigator Resources Limited.

The Production Target and financial forecasts presented in the PFS are shown on a 100% Project basis. The Production Target underpinning Whole Ore Option (Base Case) financial forecasts included in the PFS comprises 83% Indicated Resources and 17% Inferred Resources. The Production Target included in the PFS relating to the Project payback period of 2.3 years comprises 97% Indicated Resources and 3% Inferred Resources. The Mineral Resource Estimate underpinning the Base Case Production Target has been prepared by a Competent Person in accordance with the requirements in the JORC Code 2012.

The Production Target underpinning Beneficiation Option financial forecasts included in the PFS comprises 83% Indicated Resources and 17% Inferred Resources. The Production Target included in the PFS relating to the Project payback period of 2.6 years comprises 97% Indicated Resources and 3% Inferred Resources. The Mineral Resource Estimate underpinning the Beneficiation Option Production Target has been prepared by a Competent Person in accordance with the requirements in the JORC Code 2012.

There is a lower level of geological and grade continuity confidence associated with Inferred Resources and there is no certainty that further exploration work will result in the conversion of Inferred Resource estimates to Indicated Resource estimates or return the same grade and tonnage distribution.

The stated Production Targets are based on the Company's current expectations of future results or events and should not be solely relied upon by investors when making investing decisions. Further evaluation work and appropriate studies are required to establish sufficient confidence that this target will be met.

The economic outcomes associated with the PFS are based on certain assumptions made for commodity prices, concentrate treatment and recovery charges, exchange rates and other economic variables, which are not within the Company's control and subject to change from time to time. Changes in such assumptions may have a material impact on economic outcomes.

To achieve the range of outcomes indicated in the PFS, additional funding will likely be required. Investors should note that there is no certainty that Investigator will be able to raise that amount of funding when needed. It is also possible that such funding may only be available on terms that may be dilutive to or otherwise affect the value of Investigator's existing shares. It is also possible that Investigator could pursue other 'value realisation' strategies such as a sale or partial sale of the Company's share of the Project.

This announcement contains forward‐looking statements. Investigator has concluded it has a reasonable basis for providing the forward‐looking statements included in this announcement and believes it has a reasonable basis to expect it will be able to fund the development of the project. However, several factors could cause actual results, or future expectations to differ materially from the results expressed or implied in the forward-looking statements. Given the uncertainties involved, investors should not make any investment decisions based solely on the results of the PFS

ABN: 90 115 338 979 | T. [phone] | E. [e-mail] | A. 47 King Street, Norwood, South Australia, 5067

Page 2 of 88

For personal use only

30 November 2021

PARIS PFS DELIVERS OUTSTANDING RESULTS

Highlights

Investigator Resources Limited (ASX:IVR, "Investigator" or the "Company") is pleased to present the results of the Pre-Feasibility Study ("PFS") for its 100% owned Paris Silver Project ("Paris" or the "Project"), located in the Eyre Peninsula region of South Australia.

• The Pre-Feasibility Study highlights the low-risk nature of the high-grade,near surface, open pit Paris Silver Project with the Base Case ("Whole of Ore Leach") a simple processing circuit with robust silver recoveries.
• The Project delivers strong Pre-Tax Economics including:

• 1. Pre-TaxNPV8 of A$202M to A$245M
  1. IRR of 47.9% to 54.1%
  1. Payback period of ~2.3 to 2.8 years1
  1. Pre-TaxLife of Mine Net Operating Cash Flow of A$487M to A$602M (A$86M to A$97Mpa)
  1. Project life of 5 to 7 years
• The PFS mine optimisations were run on two silver price scenarios:
• 1. at $34.30/oz with a Production Target mining 8.6Mt of ore (~83% Indicated and 17% Inferred Resource) at an average grade of 128 g/t Ag, producing 26.7Moz; and

• 1. at $38.00/oz with a Production Target mining 10.9Mt of ore at an average grade of 109 g/t Ag, producing 29Moz.
• The Paris Silver Project can be brought into production for a forecast A$131M of pre-production capital expenditure comprising:
• 1. Pre-productionmining: A$5.2M

1. Process plant: A$43.2M

• 1. Infrastructure costs, including power plant: A$46.8M o Indirect costs: A$20.4M
     o Contingency: A$15.5M
• Low AISC of A$17.45/oz Ag delivering a Life of Mine operating margin of 49%.
• The Project is supported by a large, near surface Ag-Pb deposit with a Mineral Resource Estimate of 18.8Mt at 88 g/t Ag and 0.52% Pb for 53.1Moz Ag and 97.6kt Pb.
• Potential inclusion of a lead recovery circuit provides scope for upside to PFS Base Case.
• Near mine exploration potential remains high with planned exploration targeting potential to add resources.
• The detailed PFS allow Investigator to immediately commence a Definitive Feasibility Study ("DFS"). The Company will advance Project financing initiatives in parallel with the technical and approvals workstream.

1 Economic analysis is based on two silver price scenarios of $34.30/oz (representing the average price over the previous 12-months), and A$38/oz (approximately 10% higher).

ABN: 90 115 338 979 | T. [phone] | E. [e-mail] | A. 47 King Street, Norwood, South Australia, 5067

Page 3 of 88

For personal use only

Managing Director, Andrew McIlwain said: "The finalisation of the Paris Silver Project PFS marks a substantial step forward toward a project development decision.

"This comprehensive package of work, completed by the Investigator team that started with the resource drilling in September 2020, brings together all the makings of a feasible project, based on the recovery of silver alone. Whilst there is more work to do to complete a Definitive Feasibility Study, we have demonstrated that in the current economic environment, Paris is a technologically sound and financially robust project - with the potential for significant uplift if we can introduce a lead recovery circuit into the equation as well.

"On a silver only basis, Paris delivers a strong IRR of 54.1% and a Pre-Tax NPV of over $200M. With our current market capitalisation of around $100M, we consider Paris financeable and value adding for Investigator shareholders.

"A key element of the project concept was to create a development option with an accelerated payback that could opportunistically capture what are at times a volatile silver price environment.

"We have been able to include leading edge aspects such as using solar power to support power demand as well as adopting dry stacked tailings disposal that will maximise water recovery - vitally important in an arid environment.

"It has been a substantive team effort to get to this point, with the resource uplift and improved metallurgical recoveries underpinning the way forward.

"I look forward to taking this exciting project forward and delivering value for shareholders".

Economic evaluation of the Paris Silver Project was undertaken of the Base Case processing option for silver prices of A$34.30/oz Ag and A$38.00/oz Ag. In the opinion of the Investigator Board this represents an appropriate pricing range, based on the 12-month average price2 and a price scenario of approximately 10% higher. These commodity prices, in addition to forecast operating costs, were provided to the mine design consultants to determine the optimum mineable recovery of the mineral resource.

Economic evaluation was also undertaken on a further processing option that would include silver recovery by gravity and flotation concentration (the Beneficiation Option).

2 August 2020 to August 2021

ABN: 90 115 338 979 | T. [phone] | E. [e-mail] | A. 47 King Street, Norwood, South Australia, 5067

Page 4 of 88

For personal use only

Table 1 - Summary of economic assumptions, Physicals, Cash flow and value metrics for the PFS at two silver price assumptions for

the Base Case Paris Silver Project.

Item	Unit	Whole Ore Option
		Base Case
		Economic Assumptions
Silver Price	A$/oz	34.30		38.00
	US$/oz	24.70		27.35
Exchange Rate	A$:US$	0.72		0.72
		Physicals
Life of Mine (LOM)	Years	5		7
Mined Ore	Kt	8,575		10,909
Strip Ratio	Waste:Ore	9.2		6.5
Processed tonnes	Kt	8,575		10,909
Processed Silver Grade	g/t	128		109
Silver Recovery	%	75.7		75.2
Silver Dore produced	Moz	26.7		29
		Cash Flow
Gross Revenue	A$M	969		1,183
Royalties	A$M	19		28
Doré Transport & refining	A$M	7		8
Net Revenue	A$M	943		1,147
On Site Operating Costs3	A$M	456		545
Net Operating Cash Flow	A$M	487		602
Upfront Capital Cost4	A$M	131.1
- Mining Pre-production	A$M	5.2
- Process plant	A$M	43.2
- Infrastructure	A$M	46.8
- Indirect costs	A$M	20.4
- Contingency	A$M	15.5
Sustaining Capital Costs	A$M	21.2		29.2
Net Project Cash Flow (Pre-Tax)	A$M	335		442
		Value Metrics
Pre-Tax NPV8	A$M	202		245
Pre-Tax IRR	%	54.1		47.9
Pre-Tax Payback period	Years	2.3		2.8
Post-Tax NPV8	A$M	135		158
Post-Tax IRR	%	40.1		36

1. C1 operating cost, excluding SA royalty.
2. Upfront Capital Costs, exclusive of sustaining capital and closure costs.

ABN: 90 115 338 979 | T. [phone] | E. [e-mail] | A. 47 King Street, Norwood, South Australia, 5067

Page 5 of 88

For personal use only

Table 2 - Operating cost summary for the Paris Silver project Base Case scenario at A$34.30/oz Ag.

Cost Centre	A$M	A$/t ore	A$/oz Ag
Mining	220	25.71	8.23
Processing	206	24.07	7.72
G&A	30	3.51	1.12
C1 Cash cost	456	53.28	15.95
Silver Royalty	19	2.22	0.71
Sustaining CAPEX	21.2	2.47	0.79
All In Sustaining Cost	496	57.98	17.45

Table 3 - Summary of consultants and contributors to the Paris Silver Project Pre-Feasibility Study.

Activity	Consultant
Resource Estimation	H&S Consultants
Mining Studies & Production Targets	AMDAD
Metallurgical Test work	MinAssist, CORE Metallurgy, ALS Minerals
Process modelling	MinAssist
Process Plant and Infrastructure	Mincore
Tailings storage	Mincore
Hydrology and Hydrogeology	Wallbridge Gilbert Aztec
Environmental	SKM, Mincore, Internal
Financial analysis	DW Consulting
Risk Assessment	All

Project Summary

The Paris Silver Project is the highest-grade undeveloped silver deposit in Australia. The Project is located approximately 70km north of the town of Kimba on the central Eyre Peninsula in South Australia. The project is approximately 535km from South Australia's capital city, Adelaide, and accessed either via an approximate 7hr drive or flight to Whyalla and a 2hr drive to the Project, as shown in Figure 1 below. Other major cities with industrial capacity and support services are Whyalla (212km) and Port Augusta (227km). The Project comprises granted exploration licence EL6347 and is situated within pastoral leasehold land, and within the Gawler Ranges Aboriginal Corporation Native Title determination area.

The Pre-Feasibility Study ("PFS") Base Case, utilising silver pricing of A$34.30/oz and A$38.00/oz, incorporates the mining of between 8.5 to 10.9Mt of ore from 4 stages of pits over a 5 to 7 year mine life, respectively. Mined ore will be delivered to a Run of Mine pad ("ROM") and both stockpiled and treated

ABN: 90 115 338 979 | T. [phone] | E. [e-mail] | A. 47 King Street, Norwood, South Australia, 5067