PVW Resources : Metallurgical Samples Highlight Significant Rare Earths

1 February 2022

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Metallurgical samples continue to highlight significant Heavy Rare Earth outcrops with up to 8.43% TREO

Tanami Project (100% ownership), Western Australia

Highlights

• Five metallurgical samples, each 20kg, demonstrate strong surface mineralisation with up to 8.43% TREO.
• Samples taken from three different areas to test potential variability. Samples have been taken up to 18km apart, from Watts Rise to Killi Killi East 2
• Average HREO percentage of 80% including an average of 2,990ppm dysprosium oxide and up to 5,795ppm dysprosium oxide.

Figure 1: Map showing the location of the metallurgical samples at Killi Killi East

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PVW Resources ('PVW', "the Company") is pleased to provide an update on the metallurgical testwork and upcoming results due at the Tanami Rare Earth Project.

During the November field program, five 20kg samples were collected for metallurgical testwork to be undertaken by metallurgical consultants, IMO. The samples were collected along the 18km corridor and included one sample from Watts Rise and two from Killi Killi East 1 and two from Killi Killi East 2. This was to ensure spatial variability was considered for the metallurgical sighter testwork. This month IMO reported the assay results of the five metallurgical samples and work has commenced on the ore sorting of these samples. As with previously reported rock chip sampling, all samples are selective in nature with a high potential for bias and should not be considered as being representative of the overall mineralised structure or zone.

Executive Director Mr. George Bauk said, "These results continue to demonstrate the significant mineralisation at surface. It provides more confidence to the rock chips taken during the two field programs in 2021 and also highlights the extent of the surface mineralisation as the samples are up to 18km apart.

"The average grade of the combined 100kg metallurgical sample is 4.2% TREO and with up to 80% Heavy Rare Earths. Dysprosium oxide is averaging 2,990ppm with a highest result of 5,795ppm. We look forward to the results from the metallurgical sighter test program being undertaken by IMO who have experience in rare earth metallurgy".

"Prices for Rare Earths are very strong with Dysprosium Oxide up to US$475/kg. The team is awaiting final results from our 2021 exploration program including soil samples and the geophysical interpretation of recent and historical data. Drilling is being planned and organised and we are looking forward to the Company's first drill hole in the Tanami Project later this year".

Figure 2: Average Rare Earth Oxide distribution for the five metallurgical samples (TAME001-005)

TREO = Total Rare Earth Oxides- Total of La2O3, CeO2, Pr6O11, Nd2O3, Sm2O3, Eu2O3, Gd2O3, Tb4O7, Dy2O3, Ho2O3, Er2O3, Tm2O3, Yb2O3, Lu2O3, Y2O3

HRE or HREO = Heavy Rare Earth Oxides - Total of Sm2O3, Eu2O3, Gd2O3, Tb4O7, Dy2O3, Ho2O3, Er2O3, Tm2O3, Yb2O3, Lu2O3, Y2O3

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Figure 3: Metallurgical sample TAME004 (8.43% TREO) being collected in the field

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Metallurgical sampling details

Metallurgical sampling locations were selected based upon the results of the rock chip sampling program conducted in August 2021 which were reported in the ASX announcement dated 13 October 2021 titled "Confirmation of high-grade Heavy Rare Earths at Tanami Project (100%), Western Australia". The samples were collected in October as part of the follow-up rock chip sampling program, results of which were reported on 12 January 2022 (ASX:PVW - "High-grade Heavy Rare Earths up to 8.77% TREO at Killi Killi East including 6,221ppm dysprosium").

Final samples sites were determined in the field by the use of a portable XRF and handheld spectrometer. All five samples were collected from in-situ outcropping mineralisation, with each sample weighing approximately 20kg.

The 20kg samples were sub-sampled by IMO and sent to Intertek Genalysis, Perth, WA for assay. Appendix 1 Table 1 below shows the rare earth assay results and sample location details. Assay results show a relatively consistent distribution of rare earths, with dysprosium ranging from 6.5% to 7.5% of TREO and terbium, 0.9% to 1.1% of TREO (see Figure 2 above for the rare earth distribution).

Results pending

As part of the 2021 field program and interpretation, the following results are currently awaited and expected to be received during the March quarter.

• Soil samples at Watts Rise, Killi Killi and regionally
• Geophysical interpretation of the Watts Rise-Killi Killi corridor
• Metallurgical sighter testwork is advancing well with ore sorting and magnetic separation outcomes expected in February.

Soil sampling results and the geophysical interpretation will assist with the finalization of the drill program planning for 2022.

Regional REE Target

The contact between the Pargee Sandstone and the Killi Killi Formation is a regional-scale unconformity of over 18km strike length and is considered prospective for hydrothermal unconformity-related REE mineralisation, examples of which occur across a large part of the Birrindudu Basin (eg. Browns Range, Boulder Ridge). The two main prospect areas, Killi Killi East and Watts Rise occur 12km apart and are both located close to the contact between the Pargee Sandstone and the Killi Killi Formation (see Figure 5). PVW Resources exploration program will target faults and structures that transect the regional unconformity and potentially act as conduits for mineralising fluids. Deposits of the hydrothermal unconformity- related style can have a small areal footprint (<200m) which may require detailed geological mapping and close spaced drilling. As part of the drilling program in April, regional targets along the unconformity between Watts Rise and Killi Killi East will also be tested. These regional targets are currently still being finalised.

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Figure 4: Tanami Project - Regional REE target (Watts Rise- Killi Killi Trend)

Key Next Steps

	Task		Commence		Description
	Geochemical soil sampling results		January/February		Geochemical soil sampling results from Killi
			Killi East and Watts Rise
	Geophysical Interpretation		January		Geophysical interpretation of Watts Rise-
			Killi Killi trend
	Preliminary metallurgy study results		March		Initial metallurgical testwork
	Drilling		April		Maiden REE/Au drilling program at Wats
			Rise and Killi Killi prospects

About Rare Earths

Rare Earths are fundamental to the modern economy, enabling significant dollars in global GDP via a wide range of clean energy including the electrification of transport, information technology, defense and industrial applications such as robotics.

Unique magnetic and electrochemical properties of the Rare Earth elements enable technologies to perform with greater efficiency, performance and durability - often by reducing weight, emissions or energy consumption.

Rare Earths drive technology to power global economic growth, enable life-saving products, and help shrink our carbon footprint. With the infancy of technological development, application of Rare Earths has just commenced.

Figure 5: Light and heavy rare earths

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