Pursuit Minerals : Progress Update Phils Hill Diamond Drilling

ASX RELEASE

6 September 2021

Progress Update Phil's Hill Diamond Drilling

The Company's principal business objectives are the acquisition, exploration, development andoperation of PGE, 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
	Share Price		5.9 cent
	Shares		927,013,916
	Market Cap		A$55 million
	Cash		$8.5 million
	Options
	10c exp 31/10/21	76,166,073*
	4.9c exp 6/11/21		2,000,000
	0.7c exp 18/9/23		36,000,000
	Perfor Rights**		7,500,000

• Listed PUROA
• 3,000,000 subject to shareholder approval

Pursuit Minerals Limited (ASX:PUR) ("Pursuit" or the "Company") is pleased to update progress with the diamond drilling program underway at Phil's Hill.

• The first two holes have been completed. Results from the first hole (over Plate 20a) show a dolerite dyke cross-cutting the section through where the conductor was interpreted. Encouragingly the dolerite intruded on the margin of a 6m thick strongly serpentinised ultramafic unit. A number of sulphide intersections may explain the strong soil anomaly
• Results from the second hole (over Plate 10a) suggest the conductor identified in MLEM and VTEM geophysical surveys is yet to be located. Narrow zones of pyrite, pyrrhotite and +/- chalcopyrite were observed down hole, in particular close to the margin of pegmatite dykes in contact with mafic zones
• Down hole EM (DHEM) surveys will be undertaken this week. Results will determine the offset location and orientation of the conductive plates in order to re-focus the ongoing drilling program
• The rig has been returned to Mt Magnet Drilling's Perth yard for mandated servicing and will mobilise back to site once DHEM results are completed
• Initial samples from the first hole are at the laboratory for assay

Pursuit Managing Director, Mark Freeman, said:

"The drilling results of the first 2 holes indicate that we are on the right track. The geophysics clearly indicate conductive plates and the decision to pause drilling and run DHEM will ensure that our ongoing program will be focussed on locating the rocks giving a strong conductive response. Pursuit's technical team have done a phenomenal job drilling the first two holes on budget and without any complications. We look forward to recommencing drilling the next 2 weeks."

Terra Resources MD and geophysical consultant, Barry Bourne, said:

"The EM response is real; the drilling results suggest that there could be multiple, high conductance plates that surface and airborne EM techniques cannot resolve beyond a very large high conductance plate. The DHEM survey will provide improved resolution and allow better targeting of conductors."

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

Suite 4, 246-250 Railway Parade, West Leederville, WA 6007 |PO Box 214, West Perth, WA 6872 T + 61 8 6500 3271 | [e-mail] | www.pursuitminerals.com.au

Figure 1 - Phil's Hill Diamond Drill holes and surface geochemistry

Warrior Project (100%)

Pursuit Minerals Ltd ("Pursuit" or the "Company") (ASX:PUR) is pleased to announce progress with the

Phil's Hill 1,500m diamond drilling program.

First hole - Plate 20a - Hole 21WDD0001

The first hole (21WDD0001) targeted Plate 20a (Figure 1, 2, Table 1). The program began at Plate 20a as other drill sites were inaccessible after recent heavy rainfall. The hole was drilled to a total depth of 201.8m and ended in felsic gneiss.

Drilling intersected a package of folded and foliated mafic and felsic gneiss, with numerous pegmatitic intrusive dykes. Sulphide mineralisation was often noted around these dyke margins and is particularly well developed where the pegmatite is in contact with mafic gneiss. Sulphides observed were pyrite, pyrrhotite and minor chalcopyrite as disseminations, stringers and several 5-10cm massive zones. The location of this mineralisation at 63m downhole could explain the source of highly anomalous Au/Pt/Pd soil geochemistry above (Figure 2).

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

Suite 4, 246-250 Railway Parade, West Leederville, WA 6007 |PO Box 214, West Perth, WA 6872 T + 61 8 6500 3271 | [e-mail] | www.pursuitminerals.com.au

The presence of a small Banded Iron Formation (BIF) toward the base of the hole will help clarify the relationship of the ultramafic encountered by providing a marker horizon in the stratigraphy. The ultramafic has a complex alteration history which has destroyed original textures, consequently it is unclear if the ultramafic has intruded into the gneiss package or is part of the original rock sequence which was subsequently tectonised. Ultramafic stratigraphy such as this may host gold or Ni-Cu-PGE mineralisation.

Geological logging also indicates that a dolerite dyke has cross-cut the stratigraphy and faulted out the conductor plate (Figure 2) identified in MLEM and VTEM geophysical surveys. Down hole EM will be undertaken this week to determine the offset direction of the conductor plate. Thirty-two samples from 21WDD0001 have been submitted for analysis to ALS Laboratories Perth.

Figure 2: Schematic Cross section through plate 20a showing offset by dolerite dyke

Second Hole - Plate 10a - 21WDD0002

The Company has now completed the second hole (21WDD0002, Figure 3, Table 1) located at the largest and highest intensity Plate 10a. This hole was drilled to a depth of 267m. Similar to 21WDD0001, it intersected a package of folded and foliated mafic and felsic gneiss, with significantly more pegmatitic intrusive dykes (Figure 5). Sulphide mineralisation (Figure 4) again was often noted around these dyke margins and is particularly well developed where the pegmatite is in contact with mafic gneiss. Sulphide species noted were pyrrhotite-pyrite and minor chalcopyrite.

The BIF encountered in this hole was significantly thicker at 5m. intersection suggests the possibility the ultramafic intruded into differing styles of PGE-Ni-Cu mineralisation.

The absence of ultramafic above the BIF the gneiss, which opens the possibility of

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

Suite 4, 246-250 Railway Parade, West Leederville, WA 6007 |PO Box 214, West Perth, WA 6872 T + 61 8 6500 3271 | [e-mail] | www.pursuitminerals.com.au

Figure 3: Drill rig onsite 21WDD0002

Figure 4: Brecciated fault zone with pyrrhotite and minor chalcopyrite ~74.5m downhole, well above

interpreted conductor at 155m downhole

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

Suite 4, 246-250 Railway Parade, West Leederville, WA 6007 |PO Box 214, West Perth, WA 6872 T + 61 8 6500 3271 | [e-mail] | www.pursuitminerals.com.au

Figure 5: Schematic Cross section through strongest conductor plate 10a showing geology

Now the first two holes are completed, the Company will follow-up with DHEM surveys to clarify the location and orientation of conductor plates. The use of DHEM surveys is used extensively across the industry and in particular by other PGE-Ni-Cu explorers in the region. It allows the Company to more accurately model conductors in a 3D environment.

Hole_ID	Easting	Northing	RL	Azimuth	Dip	Hole Depth
	MGAzone50	MGAzone50
21WDD0001	463950	6546740	287	257	-60	201.8
21WDD0002	464268	6545700	251.6	230	-60	267.4
		Table 1: List of holes drilled, Phil's Hill

Background

In May 20211, the Company announced that highly conductive features (up to 5,093 S/m) were evident on 9 lines of moving loop ground EM ("MLEM") data over a strike length of ~1,600 m (Table 2). The modelled depth to top of the conductors was estimated at ~100 m and coincident with the edge of an interpreted ultramafic sequence. The conductance of the Phil's Hill Prospect is significant and well within the known range of conductance for the Gonneville PGE-Ni-Cu discovery. The June 2021 MLEM extension programme successfully closed off the Phil's Hill conductive package both north and south confirming the highly conductive anomalies are discrete (Figure 6). Refer to the JORC table 1 statements referenced below.

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

Suite 4, 246-250 Railway Parade, West Leederville, WA 6007 |PO Box 214, West Perth, WA 6872 T + 61 8 6500 3271 | [e-mail] | www.pursuitminerals.com.au