Rimfire Pacific Mining (ASX: RIM, 'Rimfire' or 'the Company') is pleased to advise that recent aircore drilling has extended the area of nickel cobalt scandium mineralisation and confirmed the geological setting of the Melrose prospect.

Separately head assaying of a 260kg composite bulk sample has confirmed the high-grade nature of the Melrose mineralisation.

Commenting on the announcement, Rimfire's Managing Director Mr David Hutton said: 'Our understanding of the Melrose nickel cobalt scandium prospect continues to grow with recent drilling and ongoing metallurgical work reinforcing its status as a potentially significant critical minerals' opportunity for Rimfire's shareholders. Our exploration work has entered a new phase and with metallurgical test work well underway, we look forward to providing further updates to the market as new information comes to hand'.

Melrose lies within the Company's Avondale Project which is located 70 kilometres northwest of Parkes within the highly prospective Lachlan Orogen of central New South Wales

Drilling program details

Rimfire recently completed a 20-hole aircore drilling program (FI2408 to FI2442 - 904 metres) at Melrose. Vertical holes were drilled along fence lines and access tracks north and south of a prominent magnetic anomaly that lies centrally within the prospect area to determine the extent of nickel cobalt scandium mineralisation at Melrose and confirm the prospect's geological setting. Geologically Melrose is underlain by an east-dipping sequence of ultramafic and mafic intrusive rocks (microdiorite, gabbro, pyroxenite, wehrlite, dunite) that are bounded to the east against a granite and volcaniclastic sediments to the west. The ultramafic rocks are heavily altered with serpentinite and magnetite commonly present throughout. The presence of abundant magnetite explains the Melrose magnetic anomaly. The basement rocks are strongly weathered with an overlying flat - lying manganese and iron rich (laterite) horizon present, assaying of which has shown to be strongly anomalous in nickel - cobalt - scandium (Ni Co Sc) mineralisation.

Drilling program details Rimfire recently completed a 20-hole aircore drilling program (FI2408 to FI2442 - 904 metres) at Melrose. Vertical holes were drilled along fence lines and access tracks north and south of a prominent magnetic anomaly that lies centrally within the prospect area to determine the extent of nickel cobalt scandium mineralisation at Melrose and confirm the prospect's geological setting. Geologically Melrose is underlain by an east-dipping sequence of ultramafic and mafic intrusive rocks (microdiorite, gabbro, pyroxenite, wehrlite, dunite) that are bounded to the east against a granite and volcaniclastic sediments to the west. The ultramafic rocks are heavily altered with serpentinite and magnetite commonly present throughout. The presence of abundant magnetite explains the Melrose magnetic anomaly. The basement rocks are strongly weathered with an overlying flat - lying manganese and iron rich (laterite) horizon present, assaying of which has shown to be strongly anomalous in nickel - cobalt - scandium (Ni Co Sc) mineralisation.

The nickel cobalt scandium mineralised laterite zone trends in a north northeast - south southwest direction over ~ 900 metres strike length with width ranging from a maximum of ~ 400 metres in the core of the magnetic complex to a width of ~ 50 metres in the northeast.

The nickel and cobalt mineralisation remain open to the southwest into areas of no drilling.

The scandium mineralisation remains open to the west.

Mineralisation thickness ranges from ~ 16 metres in the core of the magnetic complex to < 3 metres to the northeast.

The thickest laterite zones and higher-grade nickel cobalt and scandium mineralisation overlies the ultramafic rock types, with the highest scandium grades spatially associated with the pyroxenite in particular. The thinner laterite zones and lower grade mineralisation in the northeast overlies microdiorite rimming the pyroxenite.

Metallurgical Test work As previously announced, Perth specialist metallurgical services group - Independent Metallurgical Operations Pty Ltd (IMO) is currently developing a conceptual processing flowsheet with the aim of optimising recoveries and production of a nickel - cobalt - scandium product from high-grade mineralised material from Melrose. To underpin the studies, a bulk composite sample (260 kg) of high-grade nickel cobalt scandium mineralisation from Melrose (PQ quarter diamond drill core) was previously dispatched to IMO in Perth. Assaying of various size fractions returned grades ranging from 0.218% to 0.437% nickel (head assay grade of 0.33% nickel), 0.08% to 0.15% cobalt (head assay grade of 0.12% cobalt), and 290ppm to 470ppm scandium (head assay grade of 380ppm scandium). Rimfire is greatly encouraged by these results which support previously obtained drill assay intercepts and reinforces Rimfire's belief that Melrose represents a potentially significant high grade nickel cobalt scandium mineral opportunity

At the time of writing, IMO were conducting scrubbing tests ahead of commencing atmospheric leaching on scrubbed materials. IMO are also planning to conduct magnetic separation trials to determine the potential to separate the dominant gangue mineral maghemite as well as other potential paramagnetic iron bearing species.

At the time of writing, IMO were conducting scrubbing tests ahead of commencing atmospheric leaching on scrubbed materials. IMO are also planning to conduct magnetic separation trials to determine the potential to separate the dominant gangue mineral maghemite as well as other potential paramagnetic iron bearing species.

Contact:

Tel: +61 417 974 843

Competent Persons Declaration

The information in the report to which this statement is attached that relates to Exploration and Resource Results is based on information reviewed and/or compiled by David Hutton who is deemed to be a Competent Person and is a Fellow of The Australasian Institute of Mining and Metallurgy. Mr Hutton has over 30 years' experience in the minerals industry and is the Managing Director and CEO of Rimfire Pacific Mining. Mr Hutton has sufficient experience that is relevant to the style of mineralisation and type of deposits under consideration and to the activity being undertaken to qualify as a Competent Person as defined in the 2012 Edition of the 'Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves'. Mr Hutton consents to the inclusion of the matters based on the information in the form and context in which it appears.

Forward looking statements Disclaimer

This document contains 'forward looking statements' as defined or implied in common law and within the meaning of the Corporations Law. Such forward looking statements may include, without limitation, (1) estimates of future capital expenditure; (2) estimates of future cash costs; (3) statements regarding future exploration results and goals. Where the Company or any of its officers or Directors or representatives expresses an expectation or belief as to future events or results, such expectation or belief is expressed in good faith and the Company or its officers or Directors or representatives, believe to have a reasonable basis for implying such an expectation or belief. However, forward looking statements are subject to risks, uncertainties, and other factors, which could cause actual results to differ materially from future results expressed, projected, or implied by such forward looking statements. Such risks include, but are not limited to, commodity price fluctuation, currency fluctuation, political and operational risks, governmental regulations and judicial outcomes, financial markets, and availability of key personnel. The Company does not undertake any obligation to publicly release revisions to any 'forward looking statement'.

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