PolarX : Strong sampling results at Humboldt Range Project

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16 February 2022

Humboldt Range Gold-Silver Project, Nevada

Strong sampling results confirm large, highly promising gold-silver target

Given these strong assays, PolarX has moved quickly to secure a drilling permit and finalise

a drilling contractor. As a result, drilling is expected to start early next quarter.

Highlights:

• Channel sample assays confirm a very large drill target for bulk-tonnagegold-silver mineralisation at Star Canyon within the Black Canyon lode claims; Black Canyon is at the northern end of the Humboldt Range Project.
• Highly anomalous gold and silver values in the first 3 of 11 channel sample traverses cover a cumulative length of >245m perpendicular to the estimated >645m strike length of altered and mineralised volcanic rocks:

• 1. Channel 1: 54m @ 0.22g/t Au and 17.3g/t Ag o Channel 2: 72m @ 0.21g/t Au and 11.7g/t Ag o Channel 3: 138m @ 0.14g/t Au and 2.7g/t Ag
• The surface channel sampling results are consistently at or above the cut-off grades at the two nearby large-scale heap leach gold (Florida Canyon) and silver-gold (Rochester) mining operations; this confirms their potential commercial significance.

Figure 1 Oblique 3D-view showing Star Canyon channel samples with respect to gold-in-soil anomalism, high- grade vein samples and proximity to the Florida Canyon gold mine.

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• This area now represents Black Canyon's best-known target for large-tonnage, low to moderate grade gold-silver mineralisation.
• Given this strong potential, the target will be drilled as a matter of high priority in the coming quarter.
• These detailed channel samples were taken within a larger gold-in-soil anomaly measuring 645m x 500m at >50ppb Au which is concealed under thin soils to the north and south. It remains open and untested beneath that cover.
• This discovery supplements PolarX's earlier vein sampling showing grades of up to 512.7g/t Au and up to 2836.6g/t Ag in the claim block (refer ASX release on 19 August 2021 and see Figure 1).
• Planning to drill this anomaly is well advanced, with a drill permit expected in 2-3 weeks, and a drilling contract near finalisation.
• Assays for the remaining channel sample traverses are expected shortly.
• Long-awaitedassays from Alaska drilling also expected shortly.

Introduction

PolarX Limited (ASX: PXX, "PolarX" or 'the Company") is pleased to announce strong channel sampling assays have exposed a highly promising gold-silver drill target near the head of Star Canyon in the Black Canyon claims within its Humboldt Range Project in Nevada, USA.

In light of these strong assays, PolarX has moved quickly to apply for a drilling permit and finalise a drilling contractor. As a result, drilling is expected to start early next quarter.

Black Canyon is at the northern end of Humboldt Range and is less than 3km from the currently operating Florida Canyon Mine, which hosts 5Moz gold (Figure 2).

Channel sampling has been completed along eleven traverses at Star Canyon over heavily altered and mineralised volcanic rock outcrops within a large gold in soil geochemical anomaly. Highly anomalous gold and silver assay results have been received for the majority of the first three traverses, so far covering a cumulative length of 245m acrossthe strike of the mineralisation and alteration.

Preliminary Channel Sampling Results from Star Canyon

The most significant geochemical gold in soil sample anomaly in the Black Canyon project is in the east of the claim block at the head of Star Canyon (Figure 3):

• The eastern part of Star Canyon contains a large gold in soil anomaly which is situated at the break in slope and which measures 645m long x 500m wide at >50ppb Au, before being concealed under thin soils to the north and south.
• Field validation identified extensive outcropping ridges of intensely silicified and oxidised volcanic rocks hosting multiple quartz vein arrays and old gold-silver workings within this gold anomaly (Figure 4 and Figure 5).

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Figure 2. Location map depicting Black Canyon and Fourth of July Claim Blocks, and proximal large-scalegold-silver mining operations.

• Follow-upchannel sampling to collect 1.5m long samples has been completed in two groups of traverses, covering 275m across the alteration, perpendicular to strike (see Figure 4).
• Assays results for the bulk of the first three channel samples have been received, covering 245m out of the 275m cumulative across-strike sampling length.
• All three channel samples returned highly anomalous gold and silver levels:

• 1. Channel 1: 54m @ 0.22g/t Au and 17.3g/t Ag (peak values 2.23g/t Au, 398g/t Ag) o Channel 2: 72m @ 0.21g/t Au and 11.7g/t Ag (peak values 2.05g/t Au,79.9g/t Ag) o Channel 3: 138m @ 0.14g/t Au and 2.66g/t Ag (peak values 1.70g/t Au, 20.1g/t Ag)
• Assays for the westernmost section of Channel traverse 3 remain outstanding, as are results for Channel traverses 4 to 11 inclusive.

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• To place these results in context, the nearest two large-scale heap leach mining operations (See Figure 2 for location) have the following published mining reserve and mineral resource grades and respective cut-off grades:

	FLORIDA CANYON	ROCHESTER
	GOLD MINE	SILVER-GOLD MINE
Reserve Grade (Proven and Probable)	0.42g/t Au @ $1500/oz	0.09g/t Au @ $1544/oz + 13.8g/t Ag @ $19.45/oz
Cut-Off Grade	0.17g/t Au @ $1500/oz	0.026g/t Au @ $1544/oz + 3.94g/t Ag @ $19.45/oz
Resource Grade (Meas and Ind)	0.43g/t Au @ $1800/oz	0.07g/t Au @ $1600/oz + 8.3g/t Ag @ $20/oz
Cut-Off Grade	0.15g/t Au @ $1800/oz	0.024g/t Au @ $1600/oz + 2.86g/t Ag @ $20/oz
Data Source	Argonaut Gold website	Coer Mining website
	NI43-101 Technical Report	NI43-101 Technical Report
	dated 31 December 2020	dated 16 December 2020
		Cut-off grade determined at NSR of $2.55/t
		with 92% gold recovery and 70% silver recovery

• The surface channel sampling results are consistently at or above the cut-off grades at these two large-scale mines, confirming their potential commercial significance prior to drilling.
• This area now represents the Black Canyon's best-known target for large tonnage, low to moderate grade gold-silver mineralisation, and will be drilled as a matter of high-priority in Q2, 2022.

Next Steps

A program of RC drilling will commence next quarter along with drill testing of targets in the nearby Fourth of July claims. Assays are also expected shortly for the remainder of Channel traverse 3, and traverses 4 to 11 inclusive.

Permitting for drilling is underway, with permits expected in a matter of weeks, and the Company expects to finalise a drilling contract imminently.

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Figure 3. Gridded image of gold in soil sampling overlain with rock-chip sample assays, labelled where >4g/t gold. Location of Channel Samples in Star Canyon shown, along with planned RC drill collar locations.

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