Santa Fe Minerals : 28 January 2021 - Quarterly Activities and Cashflow Report

Suite 1/9 Hampden Road

Nedlands WA 6009

Tel: [phone]

Fax: [phone]

ABN: 59 151 155 734

www.santafeminerals.com.au

28 January 2021

Company Announcements Office

ASX Limited

QUARTERLY ACTIVITIES REPORT

FOR THE PERIOD ENDED 31 DECEMBER 2020

During the quarter, Santa Fe Minerals Ltd ("Santa Fe", "SFM" or "the Company") continued the systematic evaluation of the exploration potential of the Challa Projects with respect to gold and vanadium mineralisation.

Brian's Patch

Gold target

Challa North

Gold targets

Challa South

Watson's Well -

Vanadium

Figure 1 - Challa Project area

Brian's Patch - Gold

The Brian's Patch area is defined over 600m x 300m by a historic surface geochemistry gold anomaly and several gold nugget patches within laterite. The core of the gold anomaly at >10ppb Au is in two sections. The north section is 300m x 150m with a maximum gold result of 305ppb and the southern section is 250m x100m with a maximum gold result of 42ppb. There is no outcrop and the laterite cover is only 2-5m thick.

A 25 hole, 1324m metre Aircore drill hole program was completed in January 2021 (Figure 2). Samples have been dispatched for assay with results expected in approximately 6 weeks.

Figure 2 - Historic Brian's Patch soil geochemistry and Aircore drill hole collars.

Challa North - Gold

An ongoing evaluation of the Company's Challa Project database has highlighted several areas for additional gold exploration in covered areas along strike from known gold occurrences.

Previous gold exploration of the Company's tenure was restricted to areas of shallow soil cover adjacent to known gold occurrences. These areas were tested by soil sampling which highlighted numerous areas of gold anomalism. Some of the gold anomalies were followed up by first pass slim-line reverse circulation drilling. The best result returned from this work was 3.74g/t gold (refer to the Company's ASX announcements dated 6 August 2018 and 14 November 2018).

These gold zones are associated with north and north-east trending structures which clearly extend under recent transported cover in areas with no effective exploration (Figure 3).

Figure 3 - Challa North regional gold exploration targets (GT1-4) and historic

excised prospects - Elsie, Lewis Find, Honey Pot and Boulder

The Company's southern two gold target areas in E58/500 and E58/485, are located along the strike of north trending structures associated with the Boulder and Honey Pot gold prospects (excised) which returned drilling results up to 8m @ 2.03g/t Au from 12 m in HAC022 (refer to Flinders Mines Limited ASX announcement on 31 July 2015). These are large targets with 10km and 5km of strike respectively, containing multiple potentially gold mineralised structures. A 280 sample auger drilling program to test these structures is due to commence in the current quarter.

Figure 4 - Proposed auger geochemistry sampling locations