Solstice Minerals : Quarterly Activities/Appendix 5B Cash Flow Report

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ASX Announcement

27 July 2022 | ASX: SLS

June 2022 Quarterly Activities Report

Solstice Minerals Limited (Solstice or the Company) is pleased to present its quarterly report (Report) for the period ended 30 June 2022 (Quarter). Solstice was admitted to the official list of ASX on 28 April 2022 and trading of its securities commenced on 2 May 2022.

Highlights

Operations

• In late June, the Company commenced a reverse circulation (RC) and diamond drilling (DD) program at the Hobbes Gold Prospect (Hobbes) in which the Company holds an 80% interest. Hobbes is located approximately 5km southwest of Northern Star Limited's Porphyry Mining Centre and within the Company's Yarri Project. The planned program of 30 holes comprises up to 5,935m of RC drilling and 2,205m of diamond drilling. It is estimated that the program will take approximately two months to complete.
• The primary objective of the drilling at Hobbes is to infill the drill hole density within the central 450m strike length of the prospect to 50m spaced centres, to support a maiden Mineral Resource Estimate (MRE). Drilling will also be undertaken along strike to the north and south of the main prospect to explore for extensions to the supergene and primary mineralisation.
• Elsewhere during the Quarter, the Company completed an infill soil sampling program over the Nippon Licence (Nippon or the Licence), E39/2184 to follow up on promising gold-in- soil anomalism obtained from reconnaissance sampling completed during 2021 which defined three significant gold-in-soil anomalies (>5ppb): Nelson; Trafalgar and Swordsman.
• The Nelson Prospect is up to 1.7km in strike and 0.5km in width with a peak gold assay of 19.3ppb.
• Two other important anomalies have also been defined, including the Trafalgar (1.8km long and up to 0.8km wide, maximum 14.8ppb Au) and Swordsman (1.1km long and up to 0.5km wide, maximum 12.8ppb Au) Prospects.
• The coarse aeolian sand sample medium at all three Prospects is expected to typically generate only very subtle gold-in-soil anomalies, with the observed gold assay values considered highly anomalous.
• All gold anomalies are supported by coincident multi-element and magnetic anomalism and none of the anomalies have any previous drilling.
• The gold anomalies are located in considerably under-exploredgranite-greenstone terrane, at the margin of the Archaean Yilgarn Craton, a geological setting known to host large nickel and gold deposits.
• Activities planned for the September quarter include completion of the Hobbes drill program and commencement of work towards the announcement of a maiden MRE for Hobbes later in the year.

ABN: 67 150 154 162	T: [phone]	PO Box 2152, Subiaco, WA 6904
www.solsticeminerals.com.au	E: [e-mail]	Suite 22, Level 1, 513 Hay Street, Subiaco

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• The Company will also continue to advance work towards future drill testing at the Ringlock Dam nickel sulphide prospect, as well as the area immediately surrounding Hobbes and other pipeline opportunities, such as Nippon.

Corporate

• Following a successful Initial Public Offering (IPO) which raised $12,000,000 (before costs), Solstice (ASX:SLS) was admitted to the official list of ASX on 28 April 2022 and trading of its securities commenced on 2 May 2022.
• The formation of Solstice is the result of OreCorp Limited (OreCorp) demerging its interests in the Western Australian exploration assets. These assets comprise four Projects - Yarri, Kalgoorlie, Yundamindra and Ponton, all located within 250km of Kalgoorlie, Western Australia.
• Solstice is in a robust cash position with $15.9 million as at 30 June 2022 and no debt.
• During the Quarter, Mr John McIntyre was appointed as Chief Geologist at the Company. Mr McIntyre is an exploration geologist with over 35 years' of extensive operational experience.

This announcement has been authorised for release by the Board of Directors.

For further information please contact:

Alastair Morrison	Jessica O'Hara
Executive Director	Company Secretary
T: [phone]	T: [phone]

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1. Eastern Goldfields Projects

Solstice's Eastern Goldfields interests comprise four Projects; Yarri, Kalgoorlie, Yundamindra and Ponton (Figure 1).

Solstice now holds 32 granted licences and 13 licence applications (including two awaiting ballot) in the Eastern Goldfields covering a total area of approximately 2,710km2.

Figure 1: Location of Solstice's projects with regional geology (applications in ballot not shown)

1.1 Yarri Project (Gold)

The Yarri Project is located approximately 150km northeast of Kalgoorlie between the Keith- Kilkenny Tectonic Zone (KKTZ) and the Laverton Tectonic Zone (LTZ), both of which are major craton-scale structural features known to control significant gold endowment in the Kurnalpi Terrane of the Eastern Goldfields (Figure 2). The Carosue Dam, Porphyry and Deep South Projects that form part of Northern Star Resources' Carosue Dam Operations, hosting 4.275Moz1 gold at 2.0g/t, are located within the Yarri Project area.

The Yarri Project now comprises 24 granted licences and eight applications (including two awaiting ballot) covering an area of approximately 1,400km2 and 60km of continuous strike of the Edjudina greenstone belt. The Project includes the advanced Hobbes Gold Prospect, where extensive primary and supergene gold mineralisation has been identified.

• Source: Northern Star Resources Limited FY21 Annual Report.

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Figure 2: Northern portion of the Yarri Project with regional geology and tenements within a

30km radius of Edjudina (applications in ballot not shown)

Hobbes Prospect (E31/1117 Solstice 80%)

Hobbes is located approximately 5km southwest of Northern Star Limited's Porphyry Mining Centre and within the Company's Yarri Project.

In late June, the Company commenced a RC and DD drilling program at Hobbes (ASX Announcement dated 29 June 2022 "Commencement of Drilling at Hobbes, Eastern Goldfields and Appointment of Chief Geologist"). The planned program of 30 holes comprises up to 5,935m of RC drilling and 2,205m of DD drilling. It is estimated that the program will take approximately two months to complete.

Hobbes was discovered by Newcrest Mining Limited in 2003 and has previously been the subject of approximately 14,000m of (mainly) RC drilling. The previous drilling outlined a sub-horizontal supergene gold blanket, overlying zones of more steeply dipping primary gold mineralisation (Figure 3).

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Figure 3: Hobbes supergene and primary gold mineralisation at the Hobbes Prospect with the planned drill hole locations and diamond core hole (NDH002) used for the metallurgical testwork

The supergene blanket extends over a northwest-southeast strike of at least 1km and is up to 400m in width and 30m in thickness. Drilling within the supergene blanket has in places returned higher grade intercepts (eg, 22m @ 3.22g/t gold from 45m, HOBRC0002) (Figure 4).

The primary mineralisation has been identified over at least 550m of strike length beneath the supergene blanket, but has been more sparsely tested with wider spaced drill holes and limited deeper drilling. Encouraging primary gold mineralisation has been intercepted in previous drilling (eg., 25m @ 2.52g/t gold from 87m, NHD002), with evidence of multiple stacked zones.

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