Metallica Minerals Limited provided an update on the progress towards development of its 100% owned Cape Flattery Silica (CFS) sand project. Environmental Studies: The Company, along with company's external environmental consultants, have completed an array of environmental studies at the CFS project. These studies have included soil sampling, ecological studies and water monitoring.

It is expected that the Environmental Application will be lodged in early Third Quarter of this year to the Queensland Department of Environment & Science (DES). In Third Quarter of 2022, the Company also plans to lodge a Progressive Rehabilitation and Closure Plan (PRCP) with DES. The PRCP will outline how rehabilitation will be undertaken progressively throughout the life of the project and what work will be undertaken when the project is completed.

There will be a communication process undertaken with key stakeholders to inform them of the PRCP and seek feedback accordingly. Purpose-built Jetty Development Application: A Development Application (DA) to the Queensland Government is being finalised for approval for the construction of a purpose-built jetty for the CFS Project. The planned jetty is located within the Cape Flattery Port limit.

The Cape Flattery Port is already in operation, loading silica sand onto ships for export and is an area with existing approval for marine operations such as being contemplated by the Company. The Jetty Development Application process has required engagement with a number of Queensland Government departments as well as the Hope Vale Aboriginal Shire Council and Cook Shire Council. The DA is expected to be lodged in Third Quarter of this year.

Traditional Landowner Negotiations: To date, four meetings have been held with the Negotiation representatives of the clans who are the traditional landowners of the planned Mining Lease Application (MLA) area. The Company has met with the Dingaal and Nguurruumungu representatives and their respective legal advisors and the negotiations are continuing. Negotiations have been delayed somewhat over recent months due to impacts of a number of Covid cases amongst the both the CFS team and residents of Hope Vale.

Importantly, the negotiations have been held in a professional and respectful manner with significant information on the project being shared with the negotiating parties from each clan. Metallurgical testing: The next phase of metallurgical studies has commenced and will concentrate on the iron variability and final product specifications. Variability studies on a range of Fe2O3 samples at 100ppm intervals from within the Measured Resource area (see map below) will help optimise the sand recovery sequence and is an important part of the early DFS work.

Definitive Feasibility Study underway: The Definitive Feasibility Study (DFS) is underway and is planned for completion in 2nd Quarter 2023. Detailed planning for the DFS has been presented to the Board of Metallica and work on multiple work streams has commenced. A Request for Proposal (RFP) has been sent to nine (9) potential transhipping service providers with appropriate capability and who have indicated interest in participating in the DFS.

Water Application Following the CFS Project being designated a Project of Regional Significance by Queensland's Department of Regional Development, Manufacturing & Water (DRDMW), further work is underway for the formal application to extract ground water for the planned sand recovery and processing operations from the Cape York unallocated strategic reserve.