Jindalee Resources Limited (ASX: JRL) (Jindalee, the Company) is pleased to announce that it has signed a Binding Term Sheet for the sale of 70% of the Company's interest in the Prospect Ridge Project ('Project') to Tasmanian Magnesium Pty Ltd ('TM'), a wholly owned subsidiary of GWR Group Ltd (ASX: GWR) for total consideration valued at $1M, payable in cash and GWR shares.

Jindalee holds a 100% beneficial interest in the Project via wholly owned subsidiary HiTec Minerals Pty Ltd ('HiTec'). Key terms of the transaction are summarised below: Total consideration of $1M, comprising $0.25M in cash and $0.75M in GWR shares

HiTec's 30% free carried to Decision to Mine

TM required to spend a minimum of $2M and complete a Scoping Study within 5 years or TM's 70% reverts to HiTec and TM has no further interest in the Project

The Prospect Ridge Project is located in NW Tasmania and comprises both the Arthur River and Lyons River magnesite deposits. The Arthur River deposit contains an Inferred Mineral Resource of 25Mt @ 42.4% MgO at 40% MgO cut-off1. The Lyons River deposit, located 6.5km south along strike of the Arthur River deposit, has an Exploration Target Range (ETR) of 40- 60Mt @ 40-44% MgO at a 40% MgO cut-off2 .

Jindalee had previously advised that to maintain focus on key assets with the potential to transform the Company, including the McDermitt Lithium Project (USA) and the Widgiemooltha Nickel-Gold-Lithium Project (Western Australia), it was actively engaged with potential partners seeking to advance Prospect Ridge 3.

Contact:

Tel: + 61 8 9321 7550

Email: enquiry@jindalee.net

About Jindalee

Jindalee Resources Limited (ASX: JRL) is an exploration company with direct and indirect exposure to lithium, gold, base and strategic metals, iron ore, uranium and magnesite through projects generated by the Company's technical team. Jindalee has a track record of rewarding shareholders, including priority entitlements to several successful IPO's and payment of a special dividend. Jindalee's strategy is to acquire prospective ground, add value through low-cost exploration and, where appropriate, either introduce partners to assist in funding further progress, or fund this activity via a dedicated company in which Jindalee retains a significant interest. At 30 September 2021 Jindalee held cash and marketable securities worth approximately $15.1M3 , which combined with the Company's tight capital structure (only 54.1M shares on issue), provides a strong base for advancing projects currently held by Jindalee and leveraging into new opportunities.

Forward-Looking Statements

This document may contain certain forward-looking statements. Forward-looking statements include but are not limited to statements concerning Jindalee Resources Limited's (Jindalee's) current expectations, estimates and projections about the industry in which Jindalee operates, and beliefs and assumptions regarding Jindalee's future performance. When used in this document, the words such as 'anticipate', 'could', 'plan', 'estimate', 'expects', 'seeks', 'intends', 'may', 'potential', 'should', and similar expressions are forward-looking statements. Although Jindalee believes that its expectations reflected in these forward-looking statements are reasonable, such statements are subject to known and unknown risks, uncertainties and other factors, some of which are beyond the control of Jindalee and no assurance can be given that actual results will be consistent with these forward-looking statements.

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