Lycaon Resources Ltd. provided an update on its planned activities in the coming field season. Bow River: The Company is currently working through access and approvals with a view to be drilling shortly after the end of the wet season in May. Two deep drill holes are planned to intersect the higher density gravity anomaly at the Bow River intrusion, which has the greater likelihood of hosting nickel-copper sulphide mineralisation analogous to Panoramic Resources Savannah mine 60km to the south.

Whilst the recently completed EM survey did not highlight any shallow conductors, it is important to note that the Savannah North discovery which was ~4 times bigger than the original Savannah mine, also did not show up on EM surveys, due to being located greater than 250m depth and beyond the detection limit of the EM survey. In light of the Savannah North discovery, the Company sees significant potential to delineate nickel-copper sulphide mineralisation at Bow River, which is supported by the high-grade nickel-copper mineralisation discovered to date and the identification of a high density target which may represent a fertile Peridotite host rock as seen at Savannah North. Gnewing Bore: The Company is currently working through the approvals processes required to enable the drilling of this prospect, likely to occur in mid-2023.

A RC drilling program has been designed to test the 50m long, gossanous outcrop consisting of brecciated quartz material and iron oxides after sulphides. The Gnewing Bore Project represents a hydrothermal/epithermal gold-silver target, containing some low-level copper anomalism which appears primarily shear controlled. Historic work highlights high-tenor gold grades plus supporting silver and copper grades in the rock chip samples, with a lack of decent exploration work to sufficiently test the target's potential.

Stansmore - West Arunta: The Stansmore carbonatite target consists of a regionally prominent 700m long magnetic feature analogous to WA1's discoveries and Encounter's Worsley prospect. Recent discoveries by WA1 Resources and Encounter Resources have demonstrated the potential for the West Arunta region to host significant REE and IOCG type mineralisation systems. Alkaline systems are key drivers in the formation of IOCG and carbonatite-hosted REE deposits, with the region seeing a renewed exploration focus on these deposit types. Carbonatite deposits are an important source of REE and niobium production.

This includes the world's largest REE mine, Bayan Oho in Inner Mongolia, Lynas Rare Earths' Mt Weld deposit and the world's three major operating niobium mines. Niobium is one of a suite of commodities identified by the Australian Government as critical minerals, i.e., minerals (or elements) considered vital for the well-being of the world's economies, yet whose supply may be at risk of disruption. The Company is currently working through the approvals processes required to enable the drilling of this prospect.

Rocky Dam: Gyro drilling completed an auger geochemical sampling program December 2022, on an east-west 50m grid and north-south 200m grid spacing, for a total of 587 samples. The auger program designed was designed to define anomalies that may be related to primary gold mineralisation at depth across tenements E28/3000. The soil results at E28/3000 show limited potential for gold or base metals.

Review of auger geochemical sampling across other tenements within the Rocky Dam project already completed at E27/612, E27/611 and E28/2988 also did not record any significant anomalies to warrant further exploration. Overall geochemical results have been disappointing with no significant targets identified to warrant follow up drilling. Given the results to date, the Company does not consider it in the best interests of shareholders to expend further funds on this prospect at the current time.

Julimar: The road-side auger sampling program completed in fourth quarter of 2021 was designed as a first pass geochemical survey to cover public roads within the project area comprising two granted exploration licences E70/5415 and E70/5416. An airborne electromagnetic and magnetic survey was conducted by NRG in February 2022 using the XciteTM system over E70/5415 and E70/5416. The survey and data quality was monitored by Southern Geoscience Consultants (SGC).

The low level anomalies identified by SGC have since been downgraded as they relate to surficial drainage and cultural features. Recent desktop review of this fieldwork has downgraded the potential for the Julimar project to host Ni-Cu-PGE mineralisation associated with mafic and ultramafic intrusions. The auger sampling program and helicopter EM survey results have not highlighted any priority targets for follow up exploration work.

Given the results to date, the Company does not consider it in the best interests of shareholders to expend further funds on this prospect at the current time.