Metallica Minerals : Significant Increase in Measured and Indicated Resources

7 April 2022

Significant Increase in Measured and Indicated Resources at Cape Flattery Silica Project

Highlights

• • The Measured Resource for the Cape Flattery Silica Sand Project has increased 74% from 9.6Mt @ 99.29% SiO2 to 16.7Mt @ 99.26% SiO2 (see Table 1)

• • Total Measured and Indicated Resources for Cape Flattery total 51.9Mt @ 99.18% SiO2, an increase on the previously reported 47.8Mt @ 99.18% SiO2 (see ASX release: 21 October 2021, Revised: 40% increase of the CFS Sand Resource to 53.5Mt)

• • The Upgraded Resource and a new Ore Reserve will be used in the Definitive Feasibility Study that is currently underway. A Maiden Ore Reserve prepared for the PFS (ASX Release: 21 March 2022) supported a 25-year mine life with 1.8Mtpa.

• • The insitu SiO2 grade for the Measured and Indicated Resources averages 99.18% SiO2 at a 98.5% SiO2 cut-off grade

Metallica Minerals Limited (Metallica, ASX: MLM) is pleased to announce that the infill drilling program completed by the company in December 2021 has successfully increased the Measured and Indicated Resources from 47.8Mt @ 99.18% SiO2 to 51.9Mt @ 99.18% SiO2. Notably there has been a 74% increase in the Measured Resource from 9.6Mt to 16.7Mt, which will be assessed as part of the DFS to support an increased portion of the early mine life.

A plan view of the Cape Flattery area and the various Resource categories is presented as Figure 1 on the following page and a typical deposit cross section and long section is presented as Figure 2 and 3. Of note, the area that contains the Measured Resource is the likely initial mining area for the project. This area contains the highest silica grades and lowest iron content. The Measured Resource is also close to the planned processing and transhipping facilities which will minimise material movement and costs.

Samples collected within the Measured Resource area from the August 2021 drilling program have been composited to produce a representative bulk sample for metallurgical test-work. This bulk sample is currently being processed by Minerals Technologies for plant design purposes.

The Upgraded Resource was estimated by Ausrocks Pty Ltd using data from all three of Cape Flattery Silica's (CFS) main drilling programs, with the most recent program completed in December 2021 (see ASX Release: 23 February 2022 Infill drilling validates Cape Flattery Silica Project Resource Model). The Resource utilises data from a total of 152 vertical vacuum and auger drill holes, comprising 2,538m of drilling. Holes were drilled using a vacuum rig mounted on a tractor with 1m samples collected in a clear Perspex cyclone.

Samples were taken every 1m and the holes were either terminated due to wet ground when the water table was encountered or when the hole intersected iron rich clays or basement rocks. All the samples were dispatched to ALS in Brisbane for analysis and laboratory check samples were undertaken by Intertek in Perth.

Metallica Executive Chairman, Theo Psaros said "we are pleased to announce a significant upgrade in the Measured Resource component at Cape Flattery Silica. The combined Measured and Indicated Resource components of the total Resource will underpin our goal of producing approximately 1.35mtpa of silica sand from a ROM production of 1.8mtpa. The Updated Resource continues to give us confidence in our project and that we can use these results in our upcoming Definitive Feasibility Study that is currently underway.

Figure 1: Cape Flattery Silica Project - Distribution of the various Resource categories

This Updated Resource Estimation has been undertaken in accordance with JORC 2012 guidelines and it supersedes the Resource reported in October 2021 (see ASX Release dated 21st October 2021: "40% Increase of Cape Flattery Silica Sand Resource to 53.5Mt").

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Figure 2: Cape Flattery Silica Project - typical deposit cross section

Figure 3: Cape Flattery Silica Project - typical deposit long section

The infill and step out drilling completed in December 2021 and the observed geology supports the increase in the Measured component of the Resource and the infill drilling also confirmed the robust nature of the model with a majority of the Inferred Resource becoming Indicated with the additional infill drilling completed in December 2021.

Modelling of the silica sand Resource was undertaken using; 25m (L) x 25m (W) x 2m (H) with sub blocks 5m (L) x 5m (W) x 0.5m (H) which were used to generate the block model. The blocks were constrained by the model boundaries, i.e. topography, geology, water table, base of hole and populated by the Ordinary Kriging (OK) estimation method to interpolate assay grades for each of the chosen elements (SiO2, Fe2O3, Al2O3, TiO2 and LOI Inverse Distance Weighting (IDW - 2:1) was used to check the model and yielded similar results. The Upgraded CFS Resource Area has been estimated and summarised in Table 1, as follows:

Table 1 -Cape Flattery Silica Project Mineral Resources

Classification	Silica Sand (Mt)	SiO2 %	Fe2O3 %	Al2O3 %	TiO2 %	LOI %	Silica Sand (Mm3)	Density (t/m3)
Measured Resource	16.7	99.26	0.10	0.08	0.13	0.17	10.4	1.6
Indicated Resource	35.2	99.14	0.13	0.13	0.14	0.19	22.0	1.6
Inferred Resource	0.3	99.06	0.14	0.16	0.12	0.23	0.20	1.6
Total	52.2	99.18	0.12	0.11	0.14	0.18	32.60	1.6

The Resource has been prepared in accordance with the JORC Code 2012 - A cut-off grade 98.5% has been defined based on the surrounding data. These results show there is potential to produce a premium grade silica product using standard processing techniques.

Upcoming CFS Work Plan

There are a number of activities already underway to advance the Cape Flattery Silica project:

• • The Definitive Feasibility Study started in Q2 of 2022

• • Further bulk metallurgical testwork is currently underway with Mineral Technologies

• • Continue environmental studies and field work, leading to the lodgement of the site specific Environmental Approval in early Q3 2022

• • Progress key agreements with the Traditional Land Owners

• • Finalise a study on options to build a barge-loading facility to tranship silica sand onto Ocean-Going Vessels

• • Continue an assessment on the silica sand market and potential for establishing customer off-take agreements; and

• • Lodgement of a Development Application for the construction of the purpose-built jetty for the CFS project.

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About the Cape Flattery Silica (CFS) Project

Metallica's 100% owned Cape Flattery Silica Sands (CFS) project is adjacent to the world class Cape

Flattery Silica Sand mining and shipping operation owned by Mitsubishi. Exploration drilling to date has now confirmed that the sand dunes within EPM 25734 contain high purity silica sands with an in- situ quality which is understood to be comparable to Mitsubishi's Cape Flattery Silica Mine. On

15 June 2021 the Company announced that it had lodged a Mine Lease Application (MLA) for the project (see ASX Release: 15 June 2021 MLA Lodged for Cape Flattery Silica), Figure 4.

Figure 4 EPM 25734 location and orientation at Cape Flattery and within the Cape Flattery Port limit

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