QMines Limited provided the following update on exploration and resource drilling operations at its flagship Mt Chalmers Copper and Gold Project, located 17km north-east of Rockhampton, Queensland. Reverse Circulation (RC) drilling at the Mt Chalmers project continues to deliver consistent wide mineralised intersections with high-grade assays received from multiple drillholes. Peak grades include 6.6% Cu and 3.5g/t Au in hole MCRC038, 6.8% Cu and 11.45g/t Au in MCRC041 and 10.0% Cu and 3.6g/t Au in MCRC044 over individual metres assayed.

The Company has continued to accelerate drilling operations at Mt Chalmers with current drilling focused on increasing the Mt Chalmers Mineral Resource Estimate (MRE). During the period, the Company completed twenty-four of a planned forty-hole drill program which commenced in August 2022. Approximately 4,022 metres of RC drilling has been completed to date.

The results from fifteen of the twenty-four holes drilled are reported in this announcement. QMines has now completed approximately 14,000 metres of RC and diamond drilling at the Mt Chalmers project. RC drilling operations continue at Mt Chalmers with the Company completing twenty-four RC holes for 4,022 metres since mid-July 2022.

The recent drilling program has focused on areas of poor drill coverage. The drilling continues to deliver visible sulphide mineralisation including chalcopyrite and sphalerite, with mineralised intersections varying in length and concentration of sulphides seen in each drillhole. Multiple drillholes have intersected high-grade mineralisation with peak grades of up to 6.6% Cu and 3.5g/t Au in drillhole MCRC038, 6.8% Cu and 11.45g/t Au in drillhole MCRC041 and 10.0% Cu and 3.6g/t Au in drillhole MCRC044 over individual metres assayed.

The Company continues to deliver samples to ALS on a weekly basis from ongoing drilling operations and will continue to report these results as they come to hand. The current RC drilling operations at Mt Chalmers are expected to cease on 5th October to meet the November MRE deadline. Drilling at Mt Chalmers is scheduled to recommence in November and continue into December 2022, subject to the onset of the Queensland wet season.

The results that don't make the 5th October cut off will fall into a further resource update planned in 2023. In December 2021, QMines delivered its second MRE for the Mt Chalmers Copper Project since listing the Company in May 2021. The MRE was delivered by independent resource consultants, Hyland Geological and Mining Services (HGMC).

At the completion of the current RC drilling program in October, HGMC will commence the third MRE utilising all new drillhole data, and more significantly, the recently completed Mt Chalmers geological model. Consistent with the Company's strategy to deliver the third MRE in 2022, the Company has now delivered in excess of 14,000 metres of drilling at Mt Chalmers. It has undertaken initial preliminary metallurgical test work, delivering excellent recovery results as announced to the market on 30th March 2022.

Significantly, over the past two months it has delivered a detailed geological model for the Mt Chalmers project. The MRE is scheduled to be finalised and delivered to the market in November 2022. Faulting has played an important part in defining the geometry, and the geology of the Mt Chalmers deposit which is much better understood as a result.

This modelling has also enabled a clear domaining of metallurgical recoveries, and future MRE calculations will benefit as a result. Ongoing drilling continues to expand the model, which is being regularly updated.