Pursuit Minerals : December 21 Quarterly Activities and Cash Flow Report

December 2021 Quarterly Activities Report

27 January 2022

December 2021 Quarterly Activities Report

For personal use only

The Company's principal business objectives are the

acquisition, exploration, development and operation ofPGE, copper, nickel silver, gold, vanadium and other mineral deposits.

Directors

Peter Wall (Chairman)

Mark Freeman (MD)

Bob Affleck (Technical Director)

Company Secretary

Mark Freeman

Capital Structure

	ASX Code		PUR
	Shares		945,549,194
	0.7c exp 18/9/23	36,000,000
	2.81c exp 23/12/24	2,500,000
	Perform. Rights**	63,500,000

• 60,000,000 subject to shareholder approval

Warrior Project:

• Maiden 8-hole diamond drilling program at Phil's Hill Prospect completed highlighting an Ag-Au-Cu-As-Mo-Co-Bi mineralising system with silver up to 8.4 g/t
• Active Exploration Program:
  o Calingiri East - Significant 40 km2 auger geochemistry program from Phil's Hill to Ablett Prospects to commence shortly, follow-up Air Core (AC) drill program ~April 2022
  o Phil's Hill Core Resampling - Sampling of near-surfaceand selective sampling adjacent to anomalous downhole zones
  o Calingiri West (Anzac Hill) - field reconnaissance and rockchip sampling identified ultramafic pyroxenite rock, adjacent to DevEx's Sovereign Prospect. Surface EM and gravity surveys planned Feb

2022 with AC drill program planned for March/April 221

o Bindi Bindi - Auger geochemical program commencing late January1

Commando Gold Project

• The Company entered into an option agreement to acquire the highly prospective Commando Gold Project near Kalgoorlie in December 2021
• Commando under-explored with numerous follow-up opportunities and counter-seasonal exploration synergies with other WA Projects
• Active Exploration Program:
  o Federal West - Heritage surveying - Q1 2022, auger geochemistry

- Q1 2022, AC drilling Q2 20221

o Paddington North - Follow-up drilling (AC/RC) historical intersections around old workings follow-up surface geochemical anomalies around Six Boys, Porphyry and Sunday Eve with AC traverses in H2 20221

Combatant PGE-Ni-Cu Project

• 3 ultramafic intrusives identified following assay of 869 soil samples
• Active Exploration Program:
  o Review existing geological and geophysical model of ultramafics

January 2022, prior to heritage surveying Q2 and AC drill testing of targets in H2 20221

Gladiator Gold Project

• Review existing geological and geophysical information followed by a heritage survey and AC drill testing of targets H2 2022

Corporate:

• ~$3.2m Scandinavian sale to Kendrick extended to 31 January 2021 following increased option fee of £50,000
• Strong cash balance of ~$7.4m at the end of the quarter

Pursuit Managing Director, Mark Freeman, said:

"The quarter has been a very busy one with the Diamond drill program delineation of a 1.6km long sulphide mineralising system at Phil's Hill, anomalous for Ag, Au, Cu and As. Additional work is ongoing to understand this mineralisation and to pursue further anomalism at Calingiri East, Calingiri West and Bindi Bindi. The option to acquire the Commando Gold Project near Kalgoorlie is an exciting development, and we have also advanced the Combatant PGE-Ni-Cu Project by identifying 3 ultramafic intrusives. The divestment of Pursuit's projects in Scandinavia is anticipated to close this month. Activities for 2022 have been well thought out with a well-funded and an exciting year planned ahead."

1 Subject to securing land access rights and availability of contractors

Pursuit Minerals Limited | ACN 128 806 977 | ASX: PUR

Suite 4, 246-250 Railway Parade | West Leederville | WA Australia 6007

PO Box 214 | West Perth | WA 6872 Australia

T + 61 8 6500 3271 | [e-mail] | www.pursuitminerals.com.au

December 2021 Quarterly Activities Report

For personal use only

Pursuit Go Forward Plan 20221

Timetable of Events

January

February

March

April

May +

Calingiri East - Auger Geochemistry

Calingiri East - Phil's Hill DD review

Calingiri East - AC/RC program*

Calingiri W. - Anzac Gravity Survey*

Calingiri W. - Anzac MLEM Survey*

Calingiri W. - Anzac AC follow up*

Bindi Bindi - Auger Geochemistry

Commando - G&G review

Commando - Auger Geochemistry

Commando - AC/RC program*

Combatant - Heritage Survey

Combatant - AC over mag features

Gladiator - RC program

Calingiri East 2

Pursuit Minerals Limited (ASX:PUR) ("Pursuit" or the "Company") completed its maiden 8-holediamond drilling program at Phil's Hill Prospect at Calingiri East during the December quarter (Figure 1). Phil's Hill lies 26km south of Caravel Minerals' Caravel Cu Project (1.8 million tonnes Cu).3

1. review of the results has highlighted an Ag-Au-Cu-As-Mo-Co-Bi sulphide mineral association with silver mineralisation up to 8.4 g/t, as reported in previous ASX releases. The Company notes strong surface enrichment of silver at a number of locations. Additional analysis of near- surface drill core across the prospect will be completed shortly along with additional sampling adjacent to the anomalous downhole zones located.

These assay results confirm that that the Company has located a significant mineralising system at Phil's Hill, which suggests an orogenic gold signature. Our technical team are now focussed on finding the core of the system and will be working to extend our geochemical coverage of the Project area.

The Company has started a major 40 km2 auger geochemistry program from Phil's Hill to Ablett Prospects and follow-upAir Core (AC) drill program in April 2022.

Figure 1 - Phil's Hill Diamond Drill holes

and surface geochemistry

1. See Pursuit Minerals ASX Announcements 25 February 2021, 14 & 20 May 2021, 22 June 2021, 26 October 2021 and 3 December 2021. The Company is not aware of any new information or data that materially affects the information included in the referenced ASX announcement and confirms that all material assumptions and technical parameters underpinning the estimates in the relevant market announcements continue to apply and have not materially changed.
2. Caravel Minerals - https://caravelminerals.com.au/resource/

Pursuit Minerals Limited | ACN 128 806 977 | ASX: PUR

Suite 4, 246-250 Railway Parade | West Leederville | WA Australia 6007

PO Box 214 | West Perth | WA 6872 Australia

T + 61 8 6500 3271 | [e-mail] | www.pursuitminerals.com.au

Figure 2 - Calingiri West

December 2021 Quarterly Activities Report

For personal use only

Anzac Hill, Calingiri West

During the quarter, the Company commenced field programs at the Anzac Hill area of the Calingiri West Project (Figure 2). The Anzac Hill area lies approximately 15km northeast of Chalice's Julimar Complex and less than 2km northwest of DevEx Resources Ltd (Devex) recent Ni-Cu sulphide discovery at the Sovereign Project4.

DevEx's maiden air core drilling results over their Sovereign Project encountered an extensive sequence of differentiated mafic-ultramafic intrusive rocks, including gabbronorite, norite, pyroxenite and serpentinite within 1km of Pursuits leases5. In addition, DevEx reported broad intervals of low-grade disseminated nickel-copper sulphide mineralisation in diamond hole 21SVDD02 just 2km SE of Anzac Hill, including several narrow (5-10cm) bands of matrix textured iron nickel-copper sulphides6. These results provide Pursuit with strong endorsement of the prospectivity of the Anzac Hill Prospect to the northwest.

Recent field reconnaissance at Anzac Hill identified ultramafic pyroxenite (Figure 3) as well as thick ferricrete across the Anzac Hill area (confirmed by Pursuit's airborne VTEM survey in February 2021). Consequently, the Company will expedite exploration by conducting reconnaissance air core drilling instead of surface geochemistry. Since the Sovereign Magnetic Complex footprint within the tenement

is quite small, reconnaissance drilling can be undertaken quickly and inexpensively.

Figure 3 - Ultramafic (Pyroxenite) from Anzac Hill Prospect

Subject to receipt of Land access agreements and government approvals, the Company will conduct geophysical targeting for surface EM and gravity surveys, planned for February 2022 with an air core drilling program planned for March/April 2022.

4 DevEx Announcement 10 November 2021

1. https://www.devexresources.com.au/sites/default/files/asx-announcements/61070434.pdf
2. https://www.devexresources.com.au/sites/default/files/asx-announcements/61061861.pdf

Pursuit Minerals Limited | ACN 128 806 977 | ASX: PUR

Suite 4, 246-250 Railway Parade | West Leederville | WA Australia 6007

PO Box 214 | West Perth | WA 6872 Australia

T + 61 8 6500 3271 | [e-mail] | www.pursuitminerals.com.au

Figure 5 - Commando Project Location Plan

December 2021 Quarterly Activities Report

For personal use only

Bindi Bindi7

Pursuit's tenement, E70/5392, covers part of the Bindi Bindi Intrusive Complex, comprised of scattered outcrops of weakly magnetic ultramafic rocks intruded by younger dolerite dykes (Figure 4). The aeromagnetic data suggests the ultramafic rocks which are prospective for PGE-Ni-Cu mineralisation are more widespread than indicated by surface outcrops.

Outcrops of ultramafic rocks mapped by the Geological Survey of Western Australia 11km to the NNW of Bindi Bindi, are likely to be the northern continuation of the Bindi Bindi ultramafic, giving further support to the interpretation that the intrusion is much larger than previously believed. However, the geological structure in the area appears to be complicated with intense folding and faulting of the narrower ultramafic units.

Thirty rock chip samples from the Bindi Bindi tenement application
were collected in 2008, returning values up to 4,000ppm Ni and	Figure 4 - Bindi Bindi Aeromagnetics
318ppb Au from ultramafic and ironstone accretions. Pd and Pt were

weakly anomalous (up to 6ppb and 9ppb respectively). However, 2.8km south of the tenement boundary, and along strike of the prospective aeromagnetic anomaly, a rock chip sample returned 452ppb Pd, which is considered encouraging and again shows that prospective ultramafic rocks occur over a larger area than previously thought. Pursuit will be conducting an auger geochemical program over prospective areas, commencing late January.

Commando Gold Project, Kalgoorlie

On 16 December 2021, the Company announced it had entered into a 12-month option agreement to acquire the highly prospective Commando Gold Project, comprising 100% of granted tenements, E24/199, M24/282, M24/485, M24/503, M24/641, P24/4958, P24/4959, P24/4960, P24/4961, P24/4967 and P24/5192.

The Commando Gold Project lies just 38 km north of Kalgoorlie and is significantly under-explored compared to surrounding areas (Figure 5). Past drilling has highlighted numerous significant gold drilling intersections for immediate follow-up and the Project creates compelling counter-seasonal exploration synergies with Pursuit's Warrior and other WA Projects.

In consideration for the option, Pursuit paid $160,000 in cash, $240,000 in Pursuit shares issued at a price of 2.81c

each (being ~8.5m shares and 2.5m unlisted Pursuit options - exercisable at 2.81c each on or before 23/12/2024). The Commando Gold Project is divided into the Federal West and Paddington North tenements blocks (Figures

7 See Pursuit Minerals ASX Announcements 2 December 2020. The Company is not aware of any new information or data that materially affects the information included in the referenced ASX announcement and confirms that all material assumptions and technical parameters underpinning the estimates in the relevant market announcements continue to apply and have not materially changed.

Pursuit Minerals Limited | ACN 128 806 977 | ASX: PUR

Suite 4, 246-250 Railway Parade | West Leederville | WA Australia 6007

PO Box 214 | West Perth | WA 6872 Australia

T + 61 8 6500 3271 | [e-mail] | www.pursuitminerals.com.au

December 2021 Quarterly Activities Report

For personal use only

4, 5) with P24/4967 which lies just 19km north of Kalgoorlie near the Gidji roaster. P24/4967 is completely unexplored.

PREVIOUS EXPLORATION AT THE COMMANDO GOLD PROJECT8

Federal West Block

Most previous drilling on this block was wide spaced 160m x 640m RAB traverses (mid 1990's) which discovered 4m @ 4.2g/t Au from 12m with no follow-up drilling (Figure 6). 8 RC holes were drilled in the south-east part of the block with no reported anomalism. Widespread drainage sheet- wash masks basement rocks over much of the area, which will require drill testing of structures in the granite beneath.

The Company will be commencing heritage surveying in Q1 2022 with auger geochemistry to follow shortly thereafter. AC drilling of any anomalies identified is planned Q2 2022.

Paddington North Block

Drilling around historical workings on the Paddington North Block has highlighted a number of gold intersections, and past surface geochemistry discovered a number of anomalies around Six Boys, Porphyry and Sunday Eve. Integration of historical datasets will assist the design of follow-up drill programs and help to determine strike and depth extent of mineralised zones. Further work will focus on determining the orientation of suspected high-grade

shoots typical of these lode gold systems. The Company anticipates commencing follow up AC drilling in H2 2022.

Porphyry

Explored by BHP in the 1980s with shallow RAB drilling at 40m intervals, this prospect includes a number of shallow (<15m) historic workings. The known mineralisation has a strike length of at least 800m with limited drilling but significant intercepts over 4m (see BAR017 4m @ 8.11 g/t Au including 2m @ 15.1 g/t Au) have been discovered. The geology reflects a sheared porphyry / basalt contact hosted gold target under thick alluvial cover within a mineralised NNW structural corridor.

Six Boys Prospect

Seventeen of the best historical drill results come from this prospect which has seen small scale selective mining in the past. Pursuit has granted the vendor rights to mine the first 3,000 ounces of gold at the prospect. Previous drilling has been limited to 80m vertical with minimal exploration below 40m. Results to date shows mineralisation is open at depth and along strike with best intercepts of 8m @ 4.78 g/t Au from 3m (including 3m

• 11.4 g/t Au from 3m) and 24m @ 1.46 g/t Au from 10m including 2m @ 4.4 g/t Au from 24m.

Sunday Eve

Limited drilling around old mine workings returned significant results (10m @ 4.15 g/t Au from 41m including 2m @ 14.6 g/t Au from 41m2) from a resampling and relogging exercise by Kalgoorlie Boulder Resources. The forthcoming work program will include integration of historical datasets to design a follow up program of RAB / RC drilling to determine strike and depth extent of mineralisation.

8 See Pursuit Minerals ASX Announcement 16 December 2021. The Company is not aware of any new information or data that materially affects the information included in the referenced ASX announcement and confirms that all material assumptions and technical parameters underpinning the estimates in the relevant market announcements continue to apply and have not materially changed.

Pursuit Minerals Limited | ACN 128 806 977 | ASX: PUR

Suite 4, 246-250 Railway Parade | West Leederville | WA Australia 6007

PO Box 214 | West Perth | WA 6872 Australia

T + 61 8 6500 3271 | [e-mail] | www.pursuitminerals.com.au