Trigg Mining : December 2021 Quarterly Activities Report and Appendix 5B

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31

JAN 2022

ASX: TMG

Quarterly Activities Report for the Period ended 31 December 2021

Pivotal Quarter puts Trigg Mining on a strong growth trajectory

Highlights

Lake Throssell Sulphate of Potash (SOP) Project

• Positive Scoping Study completed, with key highlights including:
• • Large-scaleSOP operation with initial mine life of 21 years, low operating costs and robust financials.
  • Strong Environment, Social and Governance (ESG) credentials - Project to produce low greenhouse gas emission, natural sulphate of potash for food production and carbon farming.
  • Low risk and commercially proven flowsheet incorporating a network of trenches and bores, solar evaporation and a process plant using proven technology.
  • Total Mineral Resource increased to 14.4Mt at 4,665mg/L potassium (or 10.4kg/m3 K2SO4).
• Pre-FeasibilityStudy (PFS) work commenced including in-fill gravity survey to refine test bore locations for pump trials.
• Subsequent to Quarter-end the remaining Exploration Tenement applications were granted, increasing the Lake Throssell SOP Project granted tenement area by 235% to 1,085km2.

Lake Yeo SOP Project

• Two Exploration Tenements were granted covering the eastern half of the Lake Yeo Project area.
• ~65km south-east of Lake Throssell, Lake Yeo lies within in the same interpreted palaeovalley and is considered to potentially be a Lake Throssell repeat.
• Field work for the maiden gravity survey was carried out to define the palaeovalley and identify drilling targets with interpretation results due next Quarter.

SOP Market

• The benchmark price of SOP increased 30% during the Quarter and 66% during calendar 2021. Corporate
• Appointment to the Board of experienced Non-Executive Director Maree Arnason and key senior appointments further strengthens Trigg's senior leadership team including, CFO and Company Secretary Salina Michels, External Relations Advisor and former FMG Executive Tim Langmead, and Exploration Manager Damien Fletcher.

Level 1, Office E, 1139 Hay Street, West Perth, Western Australia 6005 TRIGGMINING.COM.AU [phone] [e-mail]

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Trigg Mining's Managing Director, Keren Paterson, commented: "The December Quarter has been another busy period for Trigg Mining, as we continue to put the foundations in place to build a world- class Sulphate of Potash operation at our flagship Lake Throssell Project in WA's Laverton region.

"The Scoping Study was a defining moment for Trigg, providing investors with a clear picture of Lake Throssell's economic potential as a long-life,low-cost sulphate of potash operation. The scale of this project, together with Lake Throssell's Tier-1 location and its strong ESG credentials, make this an attractive development opportunity.

Following the success of the Scoping Study, work has commenced on the programs to support a Pre- Feasibility Study including an infill gravity survey to refine water-bore locations for pump testing scheduled for the 2022 field season.

We are also delighted to be on the ground at Lake Yeo, with the execution of a Heritage Protection and Land Access Deed with the Traditional Owners, the Nangaanya-ku People, clearing the way for ground- based exploration activities to commence.

"Lake Yeo represents a hugely compelling growth target. It is located immediately to the south and along the same interpreted palaeovalley as Lake Throssell and shows similar signatures for potassium and sulphate, suggesting it could be a Lake Throssell repeat. If correct, this could deliver a dramatic expansion of our growth pipeline in the district."

Figure 1. Location of Trigg Mining's Sulphate of Potash Projects

showing established infrastructure and Project locations

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Lake Throssell Sulphate of Potash Project

(E38/3065, E38/3458, E38/3483, E38/3537 & E38/3544) 100% Trigg Mining

The Lake Throssell high-grade SOP Project is ~170km east of Laverton, Western Australia and is situated close to established transport infrastructure (Figure 1).

The Project lies adjacent to the Great Central Road which connects Laverton through to the Northern Territory and Queensland and approximately 20km from Gold Road's Gruyere Gold Mine. The Project covers 1,085km2 and encompasses the Lake Throssell playa lake and underlying palaeovalley for more than 70km in strike length.

Scoping Study

A positive Scoping Study was completed for the Lake Throssell SOP Project (Project), comprising the harvesting of brine water from subterranean aquifers, evaporation ponds, processing plant and supporting infrastructure to produce a naturally forming potassium-rich salt, potassium sulphate (or Sulphate of Potash) used globally as a fertiliser and in other industrial purposes.

Key highlights of the Scoping Study are:

Strong life cycle sustainability credentials

• Substantial utilisation of solar energy - using solar evaporation and 5MW solar power plant.
• Low greenhouse gas (GHG) emissions 0.17t CO2 equiv/t SOP with pre-feasibility to investigate further reductions in GHG emissions.
• Natural sulphate of potash is a highly efficient mineral fertiliser providing two of the four macro nutrients for plant growth essential for food production and shown to increase root matter - necessary for carbon farming as a climate change mitigant.
• Can be a substitute for muriate of potash which contains almost 50% chloride which contributes to soil acidity and salinity - improving agricultural sustainability.

Large scale, long mine life

• Annual nameplate Production Target of 245ktpa SOP over an initial Life-of-Mine (LOM) of 21 years.
• LOM Production Target is 41% of the Total Drainable Mineral Resource of 14.4Mt at 4,665mg/L potassium (or 10.4 kg/m3 K2SO4).
• Approximately 82% of the payback period is from Indicated Mineral Resources and 70% over the LOM Indicated.

Low operating costs, robust financials

• A LOM average cash operating cost of $341/t SOP and an all-in sustaining cost of $372/t SOP.
• An initial capital cost of $378M, including a $70M contingency with an accuracy of ±25-35%.
• Lake Throssell will generate an average EBITDA of $97 million per annum at a US$550/t SOP price.
• Robust financials confirm Lake Throssell as a potential Top 10 global SOP Project.

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Next Steps

• Work has commenced on a Pre-Feasibility Study.
• Continuation of environmental baseline surveys and Project Referral to the EPA planned for 2022.
  Table 2: Key assumptions, production target and financial model outputs

Key Assumptions & Financial Metrics	Units	Value
Key Financial Assumptions
Average LOM exchange rate	AUD/USD	0.73
SOP price	(US$/t, FOB)	550
	(A$/t, FOB)	753
Discount rate	%	8
Key Physical Assumptions
LOM Production Target	Mt	5.9Mt @ 10.4kg/m3 SOP
Life of Mine (LOM)	Years	21
Brine abstraction
Trench network	km	110
Bores	number	22-112
Overall recovery	%	82
Annual Production Target	ktpa SOP	245
Capital Cost
Total direct costs	$M	269
Total indirect costs	$M	40
Contingency and growth	$M	70
Total Capital Cost	$M	378
Pre-production working capital	$M	34
Total Funding Requirement	$M	412
Operating Cost
C1 Cash Operating Cost	$/t SOP	341
Sustaining Capital, royalties, Native	$/t SOP	31
Title compensation and closure costs
All-in Sustaining Cost (AISC)	$/t SOP	372
Financial Metrics
Average Annual LOM Revenue	$Mpa	180
Average Annual EBITDA	$Mpa	97
(including royalty and NT
compensation)
NPV8 (pre-tax)	$M	364
IRR (pre-tax)	%	18
Payback from first SOP production	years	4.5

Full details of the Lake Throssell Scoping Study were provided in the Company's ASX Announcement dated 5 October 2021.

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Pre-Feasibility Study

Based on the success of the Scoping Study outlined above, work commenced during the December Quarter to support the completion of a Pre-Feasibility Study for the Lake Throssell Project development.

An in-fill gravity survey (Figure 2) was undertaken during the Quarter for 220 line-kilometres with lines 1km apart and stations spaced at 200m, representing the first of the field activities to be undertaken as part of the PFS.

The survey is designed to refine the locations for the test-production bores to be drilled mid-2022 to support the establishment of an Ore Reserve estimate for the PFS.

Interpretation of the survey results is expected to be completed during the March Quarter.

Figure 2: Lake Throssell current gravity interpretation and location of infill program

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