Santa Fe Minerals : Exploration Update

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Suite 1/9 Hampden Road

Nedlands WA 6009

Tel: [phone]

Fax: [phone]

ABN: 59 151 155 734

www.santafeminerals.com.au

12 January 2022

Company Announcements Office

ASX Limited

EXPLORATION UPDATE

• Mt Murray Project

El Paso (Nickel-Copper-PGE target) - Large target concealed beneath shallow sandplain with only two small strongly silicified and altered ultramafic outcrops. Orientation surface sampling completed close to a historic anomalous nickel and copper rock sample, results pending.

• 1. Ridgeback (Copper-Lead-Zinc-Gold target) identified by historic multielement stream sediment anomalies associated with a historic strong airborne electromagnetic (AEM) anomaly - rock chip and soil sampling results pending.
• Challa Project
• 1. Golden Girls (Gold target) results from auger sampling up to 256ppb Au extend the overall strike potential to over 5km.

1. Watsons Well (Vanadium-Titanium-Magnetite target) detailed mapping has identified and sampled several cumulate magnetite layers considered to be the source of high V and Ti in soil samples. Results pending.

Santa Fe Minerals Ltd (ASX: SFM) (SFM, the Company) is pleased to provide an exploration update for its Mt Murray (Base Metals) and Challa projects (Gold and Vanadium).

MT MURRAY

CHALLA

Figure 1: Project locations.

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Mt Murray Base Metals Project

SFM recently signed an exclusive option agreement to earn 80% of the Mt Murray base metals project in Western Australia - see ASX release dated 19 November 2021. The Mt Murray project covers a 9km north south trending zone of poly metallic copper-lead-zinc-silver-gold mineralisation adjacent to a 4.2km x 1.2km magnetic high zone considered to represent a mafic-ultramafic intrusive package prospective for nickel-copper-PGE mineralisation similar to the recently discovered tier one Julimar Ni-Cu-PGE deposit (Chalice Mining Ltd).

Figure 2: Mt Murray tenements and prospects over magnetics

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El Paso Intrusive (Ni-Cu-PGE)

The El Paso zone is a 5km long high magnetic zone interpreted as a mafic to ultramafic intrusive complex prospective for Ni-Cu-PGE mineralization. Previous exploration identified a small outcrop of ultramafic rocks with only one rock chip sample that returned 2,965ppm Cu, 781 ppm Ni, 5.4% Mg, 1.8g/t Ag and 419ppm S. The sample was not assayed for platinum or palladium. Apart from this small outcrop and a second outcrop of silicified ultramafic rocks located by SFM, the interpreted intrusive complex is completely covered by shallow sand and alluvial cover. SFM considers the interpreted mafic-ultramafic complex within the Mt Murray project has potential to host nickel-copper-palladium, platinum mineralisation similar to the Chalice Mining tier one Ni-Cu-PGE discovery at Julimar.

SFM recently undertook a site reconnaissance trip and visited the previously located outcrop confirming strong silicification and alteration. A second outcrop of altered ultramafic was located 500m to the south-west. The intervening area is covered by sandplain. SFM collected a total of 6 rock chip samples which have been submitted for a nickel/PGE suite analysis. Results are expected in late February 2022. SFM also collected 49 sieved soil samples spaced 50m apart to cover the 2km cross strike position of the interpreted intrusive complex. A second line of soil samples was collected 3km further south across the magnetic high / interpreted intrusive. The samples are currently with LabWest, Malaga for both a conventional soil sample analysis and Ultrafine fraction analysis (< 2 micron fraction). The results, available in February 2022, will be used to determine the most effective sampling regime to outline the location of the mafic-ultramafic intrusive complex below the sandplain cover. It is expected the ultrafine soil fraction analysis will be able to outline the target area beneath the sand cover and as such a detailed grid-based sampling program will be undertaken. SFM will also consider a range of other exploration techniques including detailed ground magnetic surveys and electromagnetic surveys to outline targets for drill testing.

Figure 3: El Paso Silicified ultramafic outcrop surrounded by sand plains.

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Figure 4: El Paso Ni-Cu-PGE Target with SFM rock and soil sampling.

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Polymetalic Cu-Pb-Zn-Ag-Au prospects

The Mt Murray project covers several base metal occurrences over 9km strike associated with a north-south trending fault clearly identified in the magnetics on the eastern flank of a regional gravity high thought to represent the Kilba Granite to the west (Figure 5). The historic base metal prospects range from Pb-Ag in the north through to Cu-Pb-Zn-Au-Ag in the south.

Historic exploration work tested only the outcropping areas adjacent to the known base metal occurrences. The 4km strike between the historic Kin Cu pits and the Highway Pb-Zn-Ag-Au prospect to the north, concealed beneath sandplain cover has had no effective exploration. SFM interprets this zone where the fault bends from a north strike to a northwest strike to be a target for structurally hosted base metal deposits. The base metal target is concealed beneath shallow sand and SFM plans to explore this area in conjunction with the adjacent El Paso Ni-Cu PGE target.

Figure 5: Mt Murray Project: Gravity image with Prospect locations and regional fault trace.

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