Sultan Resources : Aircore Drilling Commenced at Lake Grace

Sultan Resources Limited (ASX: SLZ) (Sultan or Company) is pleased to announce the commencement of the first phase of reconnaissance exploration aircore drilling for nickel-prospectiveultramafic rocks at identified magnetic anomalies within the Lake Grace prospect. The project is located in the Wheatbelt area between Lake Grace and Kulin in WA where the company has been exploring since listing in 2018.

The Ni-prospectivityof Sultan's Lake Grace tenement portfolio has long been recognised by the company (see ASX Announcement 20/07/2020, 20/11/2020) and has been verified by the discovery of Chalice Gold Mines' Julimar Ni-Cu-PGEdeposit 215km to the northwest in the same belt of rocks (see Chalice ASX announcement of 23/03/2020). Sultan's licences contain historically drilled ultramafic rocks with evidence of nickel and cobalt bearing sulfides1 and detailed airborne magnetic surveying by the company (ASX Announcement 03/07/2020) has revealed several unexplored areas with geophysical characteristics indicative of ultramafic rocktypes. The aircore program is designed to confirm the presence of ultramafic rocks interpreted from the magnetics interpretation and help determine the prospectivity of the region for hosting Ni-sulphidedeposits

Sultan Resources Ltd

ACN: 623652 522

CORPORATE DETAILS

ASX Code: SLZ

DIRECTORS

only			STEVEN GROVES
		MANAGING DIRECTOR
		JEREMY KING
			CHAIRMAN
			DAVID LEES
16th December 2021	NON-EXECUTIVE DIRECTOR
AIRCORE DRILLING FOR JULIMAR-STYLE	CONTACT
Suite 2, Level 1,
NICKEL-SULPHIDE TARGETS AT LAKE GRACE HAS	1 Altona Street
West Perth WA 6005
COMMENCED - ULTRAMAFIC ROCKS INTERSECTED	www.sultanresources.com.au
use			[e-mail]
			l
	 Aircore drilling of interpreted ultramafic occurrences in the Lake Grace area in the
		search for Julimar-styleNi-sulphide targets commenced in Mid-December
personalFor	 Ultramafic lithology confirmed in early holes
 Approximately 2km strike of ultramafic lithology confirmed at first target zone
	The targets lie within part of interpreted mobile zone that hosts the recent Julimar Ni-
		Cu-PGE discovery
		A program of up to 29 holes targeting areas of known and interpreted ultramafic
		occurrences is underway
	 Historic exploration at Lake Grace has shown ultramafic rocks with evidence of nickel
		and cobalt bearing sulfides in drilling
	 Strong geophysical evidence for >25km of cumulative strike length of ultramafic rocks

across Sultan's Lake Grace portfolio

 Lake Grace portfolio surrounded by major mining and exploration companies: o Anglo American to north and west

o Gold Road Resources to east

For personal use only

ASX ANNOUNCEMENT - 16 DECEMBER 2021

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Figure 1: Sultan's Lake Grace portfolio of tenements in relation to the tenement1 positions of Anglo American (blue outline), Impact Minerals (maroon outline) and the Gold Road Resources/Cygnus Gold JV (orange outline). All of Sultan's tenure lies within an interpreted mobile zone prospective for Ni-Cu mineralisation as postulated by Impact Minerals Ltd (see Impact Minerals announcement dated 10/06/2020)

Aircore Drilling Progress

The aircore program commenced at the northern end of the project at Kulin (E70/5095, Figure 2) where previously identified ultramafic rocks have been noted in historic drilling and mapping by Sultan (see ASX Announcement 20/11/2020). The first four holes at this target have been completed and geological logging has confirmed the presence of ultramafic lithology in at least 3 holes. The aircore holes lie approximately 2km northwest of the historic diamond holes and confirm the strike extent of this first ultramafic target.

The rig will aim to traverse further ultramafic-prospective areas across E70/5095 prior to Christmas and return to finish the program further to the south on E70/5085 in January 2022 (Figures 2 & 3). Full geochemical analysis coupled with petrographic interpretation and possible QEMSCAN testing will be undertaken on bottom of hole samples.

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ASX ANNOUNCEMENT - 16 DECEMBER 2021

Location of first 4 aircore holes

~2km

Approximate location of historic diamond drill holes

Figure 2: Location of the interpreted ultramafic bodies (purple) and positions of potential aircore traverses over the Total Magnetic Intensity reduced to pole image over E70/5095.

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For personal use only

ASX ANNOUNCEMENT - 16 DECEMBER 2021

Figure 3: Location of the interpreted ultramafic bodies (purple) and positions of potential aircore traverses over the Total Magnetic Intensity reduced to pole image over E70/5085.

The market will be informed as drilling results come to hand.

This announcement is authorised by Steve Groves, Sultan Resource Managing Director

For further information contact:

Managing Director Steve [e-mail]

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For personal use only

ASX ANNOUNCEMENT - 16 DECEMBER 2021

Competent Persons Statement

The information in this report that relates to Exploration Targets and Exploration Results is based on historical exploration information compiled by Mr Steven Groves, who is a Competent Person and a Member of the Australian Institute of Geoscientists. Mr Groves is Managing Director and a full-time employee of Sultan Resources Limited. Mr Groves has sufficient experience that is relevant to the style of mineralisation and type of deposit 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 the reporting of Exploration Results, Mineral Resources and Ore Reserves". Mr Groves consents to the inclusion in the report of the matters based on his information in the form and context in which it appears. The Competent Person is not aware of any new information or data that materially affects the information contained in the above sources or the data contained in this announcement.

About Sultan Resources

Sultan Resources is an Australian focused exploration company with a portfolio of quality assets in emerging discovery terranes currently targeted by successful explorers such as Newcrest Mining, Alkane Resources, Gold Road Resources, and Sandfire Resources. Sultan's tenement portfolio includes prospective targets for porphyry Au-Cu, structurally- hosted gold, Nickel, Cobalt and base metals and include tenements located in the highly prospective east Lachlan Fold Belt of Central NSW as well as projects located within the southern terrane region of the Yilgarn Craton in south and south eastern Western Australia. Sultan's board and management strategy is for a methodical approach to exploration across the prospects in order to discover gold and base metals that may be delineated via modern exploration techniques and exploited for the benefit of the company and its shareholders.

References

1. Summers, K.W.A., 1969, Final Report, Corrigin Project, WA. Electrolytic Zinc Company of Australasia Limited, WAMEX Report A7659

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