Odessa Minerals : Quarterly Activities/Appendix 5B Cash Flow Report

ASX Announcement

13 April 2022

MARCH 2022 QUARTERLY ACTIVITIES REPORT

HIGHLIGHTS

• • Odessa Minerals was reinstated on the 18th January to the ASX following a very strongly supported A$6 million capital raise

• • The Aries Kimberlite Pipe, in the Kimberley Region of Western Australia, is the largest known diamondiferous kimberlite pipe complex in Australia

  • o Has a footprint of over 20 Ha (200,000 sq m),

  • o Extends to at least 900m vertical depth,

  • o Potential for unique and valuable gem quality diamonds

  • o Significant potential for the discovery of additional kimberlite pipes

• • Advanced planning for drilling and sampling underway

• • Diamond market outlook remains strong: prices and demand increasing and supply reducing

• • Strong balance sheet: end of Quarter cash at $5.5 million.

Odessa Minerals Limited (ASX: ODE) (Odessa or the Company) is pleased to report on its activities for the quarter ending 31 March 2022 ( the "Quarter") and highlight planned activities ahead of the upcoming field season.

Odessa's CEO, Alistair Stephens, commented:

"Our work on the Aries and Athena kimberlite pipes during the Quarter has increased the Company's view of the significant potential beyond what was originally prognosed a few months ago. The main objective now is to kick-off our exploration programmes as soon as possible to try and assess the ultimate size, grade and value of these pipes in a higly prospective tenement capable of additional discovieries.

PROJECTS

Aries Diamond Project

Aries Location

The Aries Diamond Project is located approximately 30 kilometres southeast of the Mt Barnett Roadhouse in the Central Kimberley, and approximately 250km east of Derby. Tenement E80/5027, a fully granted tenement, is the focus of exploration for the upcoming field season.

Aries - The Largest Kimberlite Diamond Pipe in Australia

The Aries Kimberlite Pipe Complex has been the subject of historical exploration, including drilling, sampling and bulk sampling, which has identified significant quantities of gem and semi-gem quality diamonds. Relevant historic non-digital data has been progressively digitised into a data base and the majority of relevant drillhole locations are now entered. The digitisation and collation of the information is presenting vast opportunities for further analysis, with more than 30 years of exploration activity now recorded in a 3D digital database. Geophysical data historically focused around the Central Aries pipe, and reprocessing of this data has demonstrated that the Aries Complex has a north-south strike with a likely feeder dyke or fissure with prominent kimberlitic features existing beyond the Southern Kimberlite Complex. The reprocessed data, combined with the drilling data which now can be viewed in 3D, has also indicated that a large underground footprint exists for the pipes, not seen before, which coalesce below surface, making it the largest known kimberlite pipe in Australia.

Above: Location of kimberlite pipe at Aries

Above: Reduced to Pole Aeromagnetic imagery at Aries showing other target areas south of Aries [red = high values, blue = low values]

Aries - Magnetic Pipe Signatures Coalesce to 800m long, 300m wide and 900m depth

Geophysical modelling of magnetic data for the Aries pipes has resulted in a model that clearly demonstrates the potential subsurface geometry of the pipe complex. The key findings of the modelling are:

• • Aries extends beyond 900 metres vertical depth

• • The pipes are elongate extending over ~800m north-south and more than 300metres east-west

• • Aries and Aries north coalesce into a single pipe beyond 300 metres depth

• • The footprint of the magnetic model, which best fits the expression of magnetic kimberlite pipes, expands from:

  • o 10ha footprint in the near surface

  • o 13.4ha footprint at 200 metres below the surface

  • o >20ha footprint at 400 metres below the surface

• • A central magnetic core, that is present inside the main mapped kimberlite has a footprint of 3.6ha at depth, and may represent a potential central feeder pipe.

Above: Geophysical modelling the Aries Kimberlite pipe that have magnetic signatures.

Aries - Grade Increases with Depth

Current data entry of historic diamond records is in progress including microdiamond counts, macrodiamond occurrences and the sizes and distribution range information. These data are important to reference for the nature of microdiamond occurrences in relation to macrodiamond occurrences. Many diamondiferous pipes have a direct correlation between macrodiamond and microdiamond counts, and the increasing microdiamond grade is therefore a proxy for increasing macrodiamond grade. This information is currently being used in the design of a deeper drilling programme and future metallurgical testwork.

The database has currently captured 961 drill hole locations for more than 27,000 metres, and 1,552 sites of surface geochemistry. The data demonstrates that microdiamond grade increases at Aries North

• • From 10 counts per 100Kg at 20 metre below surface

• • To 40 counts per 100kg at 130 metre below surface

• • To 120 counts per 100kg 275 metre below surface.

The geology suggests the surface pipe has a greater proportion of dilution. Previous diamond bulk sampling has only tested the kimberlite within the top 48m of the pipes at the Southern Lobe and within 20m at the Central Lobe. It is likely that the increase in microdiamond grade with depth is most likely related to less wall rock dilution and therefore the potential for higher grade diamond-bearing kimberlite.

Using positive correlations with the available microdiamond to macrodiamond data, and using microdiamond data where macrodiamond data is incomplete, the Company is planning to test the areas of high microdiamond count at depth in order to understand the likelihood of the area being host to a possible economic diamond source.

Campaigns by previous explorers involved bulk sampling using an on-site heavy media treatment plant that recovered almost 5,000 diamonds for over 1,000 carats from the surface of the Aries pipes. Follow up bulk sampling in 2005 confirmed a best grade of 4.9 cpht (carats per hundred tonnes) from the surface of Athena in the Southern Complex, with over 95% being near gem or gem quality diamonds.

The Company is assessing options for metallurgical testwork to validate surface macrodiamond counts, the microdiamond relationship and potential diamond valuation. These will provide important data for exploration, resource definition and project assessment.

Further Kimberlite Occurrences Likely North of Aries

Geophysical assessment of the magnetic kimberlite pipes demonstrates a north-south trend in the Aries district. These pipes have distinct magnetic responses when located in sandstone host rock. This trend is interpreted to continue into the Carson Volcanic stratigraphy north of the Aries pipe complex. The magnetic signature of other potential kimberlite pipes are masked due to the strong magnetic signature of the Carson volcanic rock suite. The Company is assessing historic information and modern processing/geophysical acquisition options to help identify hidden kimberlite pipes in this northern trend.

Aries Exploration Programme

The Aries tenement, E80/5027, hosts a complex of numerous magnetic and non-magnetic diamondiferous kimberlite pipes and is the focus for exploration activities during 2022, while all other tenements in the district remain ungranted until heritage access agreements are effective.

The Company's exploration programme at Aries is proposed to test the easily accessable diamond pipes at surface through drilling and bulk sampling. The key outcomes are to undersand the grade, the value and the size potential of the Aries kimberlite pipes. The initial environmental assessment ihas been completed, the Program of Works has been submitted, and the Heritage access agreement is in progress.

New Projects

Argyle South - New Tenement Application

The Company has applied for a tenement south of the closed Argyle diamond mine in the east Kimberley. The Argyle South alluvial channel covers a 40-kilometre channel along the Bow River. Diamonds in the channel are sourced from weathering of the Argyle Diamond kimberlite pipe and have been transported down multiple drainage systems south and east toward Lake Argyle.

Previous exploration has involved 132 small exploration test pits and 27 bulk samples. Diamonds were recovered from 25 of 27 bulk samples. Exploration focused on the Camel Yard Prospect, while diamonds were also recovered from gravels and gravel terraces along the length of the Bow River.