Perpetual Resources : Sampling of high purity white sand zones underway at Beharra

ASX RELEASE

15th February 2022

ASX: PEC

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CORPORATE

onlyDIRECTORY Executive Chairman Julian Babarczy

Managing Director

Robert Benussi

Non-Executive Director useBrett Grosvenor

Company Secretary Nicholas Katris

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PROJECTS

Beharra Silica Sands personalArrowsmith West

Sargon Hub

Eneabba Hub

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CONTACT

223 Liverpool Street Darlinghurst NSW 2010

Robert Benussi

[phone]

ForWe wish to acknowledge the Traditional Custodians of the

land (Yamatji Southern

Regional) on which we are

developing the Beharra

Project, and pay our respects to their Elders past, present and emerging.

Sampling Underway for Bulk Metallurgical Test Work Targeting Multiple Zones within White Sand Horizon

HIGHLIGHTS:

• Sampling program scheduled for completion this week targeting multiple zones within the Beharra white sand horizon, with samples being prepared for delivery to IHC Mining.
• A total of four domains have been subject to separate bulk sampling activities, providing comprehensive data set for detailed analysis of impurity profile changes with depth.
• Testing is targeting identification of a very high grade and low impurity zone within the Beharra White sand sequence, consistent with prior desktop analysis of recent drill results.
• Successful confirmation of a low impurity horizon has potential to position Perpetual as a leading new supply source within the fastest growing low impurity Asian silica sand markets.
• Laboratory results anticipated to be received in the June quarter
  Perpetual Resources Limited ("Perpetual" or "the Company")
  (ASX: PEC) is pleased to announce that the sampling program looking to identify and confirm the chemical characteristics of the distinct horizons within the Beharra white sand sequence is due for completion this week, with samples being prepared for delivery to IHC Mining (recently renamed from IHC Robbins) in Brisbane who will undertake the bulk metallurgical testing program.
  A total of four separate bulk samples have been prepared, representing a total of approximately 4 tonnes of drill sample (approximately 1 tonne per zone), with samples taken from the drill program completed in August 2021.
  The aim of this bulk metallurgical test program is to individually identify the chemical composition and end product specifications from the various zones identified within the Beharra white sand sequence. Previous analysis of drill data suggests potential for a very low impurity horizon that may be amendable to selective mining and processing to deliver an extremely high-quality end product for the high value ultra-clear glass markets in Asia.

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Figure 1 - Images from white sand sampling program targeting multiple zones within Beharra

white sand sequence

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Background to Bulk Sampling Efforts

Initial metallurgical analysis at Beharra commenced on a comingled white and yellow sand feedstock, with an aim of determining the end product specifications if the Beharra orebody was processed without any selectivity. This was seen as a prudent first step in analysing the Beharra project, to be used as a baseline to assess all other future end product analysis. Representative bulk metallurgical test results for the comingled white and yellow feedstock were confirmed as the following (for additional information, please see ASX announcement dated 29th January 2021, titled, "Exceptional Metallurgical Test Results - Beharra");

	Beharra Comingled Sand	SiO	Fe O ppm	Al O ppm	TiO ppm	Mass Yield
For		2	2	3	2	3	2
Beharra Special AFS #46	99.6%		280		1825	375	68%
Beharra Premium AFS #44	99.6%		276		1789	369	#46 & #27 combined
	Beharra Special AFS #27	99.7%		235		1405	300	6%

Figure 2 - Results of January 2021 bulk metallurgical test work which assessed a comingled

white and yellow sand feedstock

These metallurgical test results were used as the foundation for the preparation of the Beharra Pre- Feasibility Study (Beharra PFS), which was released in March 2021 (please see ASX announcement dated 17th March 2021, titled, "Maiden Ore Reserve and Outstanding Beharra PFS Result Update").

Subsequent to these results and the Beharra PFS, Perpetual then sought to confirm the end product specifications under a selective white sand mining and processing scenario.

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Perpetual undertook an 86-hole air core drilling program, the results of which were announced in August 2021 (for additional information, please see ASX announcement dated 30th August 2021, titled, "Phase 3 Air Core Infill Drilling Results - Beharra"). The drill samples collected from this drilling program were utilised for the preparation of a bulk representative metallurgical testing program that excluded yellow sand, with the following results confirmed (for additional information, please see ASX announcement dated 2nd December 2021, titled, "Beharra Test Work Confirms Exceptional White Sand Impurities");

only	Beharra White Sand Only	SiO	2	Fe O	3	ppm Al	O	3	ppm	TiO	2	ppm	Mass
		2		2
Beharra Special White	99.6%		173	1986	342	100%
Beharra Premium White Coarse	99.6%		160	1620	290	14%
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Beharra Premium White Fine	99.6%		175	2045	350	86%
Figure 3 - Results of December 2021 bulk metallurgical test work which targeted the white
sand only horizon at Beharra

While the impurity reductions confirmed by the white sand only test results were compelling,

demonstrating a reduction in the key impurity Fe2O3 of almost 40%, further analysis showed that the bulk sampling process had led to the inclusion of significant levels of the grey sand horizon (22% of all samples included were from the grey horizon), which sits adjacent to the water table and is unlikely to be mined by Perpetual.

Beharra Sub-Domains	Number of samples	Proportion	SiO	Fe O	AL O	LOI
			2	2	3	2	3
Yellow	12	2%	99.15	0.08	0.22	0.3
White Upper	305	42%	99.04	0.13	0.28	0.19
White Lower	244	34%	98.30	0.21	0.61	0.24
Grey Pod	1	0%	98.80	0.18	0.28	0.29
Grey	159	22%	93.10	0.33	4.05	1.35
Total	721	100%	97.48	0.2		1.22	0.47

personal	Note: Table is indicative only, with all calculations based on an arithmetic average of included drill holes only
Figure 4 - Indicative analysis of the samples that were selected to comprise the bulk
sample in the most recent metallurgical test work at Beharra
It is believed that the inclusion of this grey sand has increased the overall impurity profile of the white
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sand bulk metallurgical test results, leading to a higher level of impurities reported than would potentially therwise be the case if this grey sand was not included. The grey horizon introduced an elevated level of feldspar to the bulk sample which cannot readily be removed using the proposed metallurgical stages. This contributed to higher levels of Al2O3 and K2O and commensurately lower SiO2 grade in the bulk sample results. Potential to use the presence of feldspar in the lower grey domains could provide

some market access where feldspar is incorporated as a flux.

Additional analysis also revealed that the impurity profile within the Beharra white sand sequence demonstrated distinct geological sub-domains, with potential for chemical and lithological/mineralogical zonation between an upper and lower sub-unit. The upper unit appeared to contain a higher SiO2 content and a lower impurity profile.

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Figure 5 - Cross Section C022-C025showing interpreted domains within the Beharra white sand sequence, and the composites used for the metallurgical testing as reported herein

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personalThe focus of the current bulk sampling and testing program has been to extract bulk representative samples from each of the identified sub-domains. These include; Yellow sand horizon, Upper White

sand horizon, Lower White sand horizon, and the Grey Sand horizon. The Grey horizon has been further divided into Grey sand above the water table and Grey sand below the water table. The aim of Fortesting these separate sand horizons (sub domains), is to accurately determine whether selective mining and processing of these sub domains can deliver distinct end product characteristics, ideally with one horizon (thought to be the upper white horizon) containing a very low impurity profile that might position Beharra end product as a premium low iron silica sand that could target the fast-growing ultra-

clear glass markets in Asia.

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Figure 6 - Images of production scale equipment at IHC Mining that will be utilised for

Perpetual's upcoming bulk metallurgical test work. Images are: spiral testing unit on left, wet

high intensity magnetic separator on the right

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Sampling Process Undertaken in Recent Program

The drill samples totalling 1,145 bags for a total weight of 6,288kg were transported from the Company's store in Dongara, Western Australia to a warehouse in the Gold Coast, Queensland located about 30km from IHC Mining testing facility. The samples were to be prepared for proposed white sand only testing and to provide representative samples from all geological domains for particle size distribution (PSD) analyses.

ForThe sample preparation process involved checking the sample number on the bag with the sample ticket that was placed in the bag when the sample was collected from the drill rig cyclone and then allocating the sample to a selected domain. Approximately three quarters of the sample was removed by either riffle splitting, spearing, or quartering and placed in the appropriate bulker sample bag being either yellow, upper white, lower white, and grey above and grey below the water table. The remaining sample was then either placed in its original drill sample bag for storage or further sub-sampled for collection for PSD requirements.

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