Zenith Minerals : Drilling Recommenced at Spilt Rocks

19th July 2022

only		Corporate Details
	Zenith Minerals Limited (ASX:ZNC)
use	ABN: 96 119 397 938
Issued Shares		343.9M
Unlisted options		14.3M
Mkt. Cap. ($0.27)	A$91M
Cash (31st Mar 22)	A$9.3M
Equities (31st	Mar 22) A$14.2M
Debt				Nil
			Directors
	David Ledger	Executive Chairman
	Michael Clifford		Managing Director
	Stan Macdonald		Non-Exec Director
	Julian Goldsworthy Non-Exec Director
	Emma Scotney		Non-Exec Director
	Nic Ong			Co Sec
	Nick Bishop		CFO
		Major Shareholders
	Directors			3.4%
	HSBC Custody Nom.	8.7%
	Citicorp Nom			8.3%
	BNP Paribas Nom		6.2%
	EV Metals Group		2.9%
personal		Our Vision
	Zenith has a vision to maximise
	shareholder value	through superior
	project	generation and	exploration
	activities.
	Focus is on 100% owned Zenith
	projects,	whilst	partners	progress
	multiple additional opportunities.
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	Contact Us
	Level 2, 33 Ord Street
	WEST PERTH WA 6005
	PO Box 1426
	WEST PERTH WA 6872
	Telephone:	[phone]
	Email:[e-mail]
	Web:www.zenithminerals.com.au

DRILLING RECOMMENCED AT SPLIT ROCKS

LITHIUM PROJECT

The Board of Zenith Minerals Limited (ASX: ZNC) ("Zenith" or "the Company") is pleased to advise that drilling has recommenced at the Split Rocks project in Western Australia. The project is part of the Zenith Lithium Joint Venture with EV Metals Group.

A fully permitted program of 45 initial RC holes (~9,000 metres) has commenced to follow-up on the thick, high-grade lithium mineralisation intersected in the maiden drill program at the Rio pegmatite prospect (ASX Release 4-Apr-22), that returned results including:

• ZVRC002 - 20m @ 1.0% Li2O, including 10m @ 1.7% Li2O

Split Rocks is a large scale, lithium prospective project with multiple target areas containing thick pegmatites, along strike from the major Mt Holland lithium deposit (Wesfarmers/SQM) - under construction.

Project-wide geochemical screening programs are also underway at Split Rocks with crews working towards systematically sampling all the prospective portions of the 660km2 land package. Over 4,000 new samples collected to date, with an update on results expected shortly.

Drilling of the initial 45 holes is anticipated to take approximately 6 weeks, with an additional 40 holes contingent on permitting and results of the first round of drilling.

Zenith Minerals Executive Chairman David Ledger commented: "Our Company, along with our joint venture partner, EV Metals Group, are genuinely excited to be conducting a follow up campaign on the initial drilling completed some months ago. That initial program, at Split Rocks, has been vital in defining an area of focus for the team to be now focusing on. The plan will be to follow up where the best intersections from the first round were identified, where we hope to expand on the initial high-graderesults from the Rio area of the tenement. With a strong permitting and approvals team, we have been able to now start more serious planning for this program and follow-ondrilling campaigns. With the new drilling set to commence, we believe that this will enhance our understanding of the potential for Split Rocks to be material in our lithium exploration endeavours."

Background on the Rio Pegmatite

An initial program of 28 RC drill holes was completed to test 7 pegmatite targets: Rio (4 holes), Dulcie West (4 holes), Estrela (2 holes), British Hills East (7 holes), Pointer 7 (5 holes), Firebreak North (2 holes) and Firebreak South (4 holes) part of the Split Rocks project in Western Australia (ASX Release 4-Apr- 22).

Assays for the Rio pegmatite target (the first target drill tested in the current program), returned wide, high-grade lithium mineralisation. A single line of 4 RC holes (ZVRC001 - 004) was drilled at 200m spacing to follow-up on historical diamond drilling that intersected a flat-lying pegmatite, located 400m northwest. The pegmatite in historical diamond holes was up to 65m thick with

strongly anomalous lithium. Thick pegmatites were intersected in each of the 4 new holes, all containing anomalous lithium levels >0.1%Li2O (Figures 1 and 2). Individual pegmatites are up to 55m in thickness, assuming a flat lying, stacked interpretation.

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Figure 1: Split Rocks Lithium Drill Targets

Figure 2: Rio Pegmatite Lithium Prospect Drilling Cross Section A-A'

Drill hole ZVRC002 intersected an upper and a lower pegmatite. The upper pegmatite contained thick, high-grade lithium eucryptite* mineralisation (confirmed via XRD analysis of 3 mineralised intervals). Results include:

1. 20m @ 1.0% Li2O, including 10m @ 1.7% Li2O

only*Eucryptite is a lithium aluminium silicate mineral with a formula LiAlSiO4. The lithia content of pure eucryptite is 11.86% Li2O. Spodumene is also a lithium aluminium silicate mineral with a formula LiAlSi2O6. The theoretical lithia content of pure spodumene is 8.03% Li2O. Spodumene accounts for most of the lithium production from pegmatite projects worldwide. Eucryptite is recorded in a number of lithium operations but generally only in small quantities. How eucryptite will perform metallurgically requires further investigation.

H le ZVRC002 ended in pegmatite. This lower 38m thick pegmatite zone contains strongly anomalous lithium (>0.1% Li2O). Lithium minerals were identified as petalite (via XRD analysis of 1 mineralised interval).

In addition, holes ZVRC001, 003 and 004 all intersected thick pegmatites returning strongly anomalous lithium use(>0.1% Li2O). Lithium minerals in hole 003 were identified as petalite based on XRD analysis of 2 mineralised

intervals.

The follow-up drill program of 45 initial holes will include infill 50m spaced holes as well as step out drilling at various spacings between 100m and 400m.

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Background on the Split Rocks Project

Zenith has been systematically exploring the Split Rocks project for lithium (Figure 3) within landholdings of approximately 660 km2 in the Forrestania greenstone belt. This emerging lithium district is host to SQM-Wesfarmers Mt Holland/Earl Grey lithium deposit containing a Measured, Indicated & Inferred Mineral Resource of 189Mt @ 1.5% Li2O (66Mt @ 1.58 %Li2O Measured, 106Mt @ 1.52% Li2O Indicated, and 17Mt @ 1.11% Li2O Inferred) (reported in KDR:ASX Release 19-Mar-2018).

(*DHLGO - Gold rights below 6m subject to option agreement).

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personalFigure 3- Split Rocks Project Location Map Showing Zenith tenements and Regional Lithium & Gold Endowment. An initial drill test of seven large, lithium pegmatite targets in the Split Rocks tenement package has been

completed, including at: Rio, Dulcie West, Estrela, Pointer 7, and British Hills East, Firebreak North, and Firebreak South. Thick pegmatites were intersected at Estrela (pegmatite up to 29m thick) and British Hills East (pegmatite

Forup to 114m thick) - with a maximum 0.1% Li2O.

Results are awaited for 4 drill holes completed at Pointer 7, whilst multiple additional targets have also been defined that will require drilling.

In addition, several lithium surface anomalies generated by Zenith through limited soil and auger sampling in the central west and northern portions of the project area require drill testing. Large areas considered prospective around granite margins in the centre of the project area are yet to be screened by surface sampling. Surface geochemical sampling programs to assess these zones have now commenced with auger sampling crews active on site.

EVM may earn a 60% interest in the lithium rights in two initial 100% owned Zenith projects, namely Waratah Well and Split Rocks (Figure 3), by sole funding the completion of a feasibility study within 24 months, with Zenith retaining a 40% project share.

On and from completion of a feasibility study, Zenith and EVM will form a joint venture in respect of the project lithium rights. EVM will sole fund expenditure to a decision to mine, following which the parties will be required to fund future joint venture expenditure in accordance with their respective percentage shares.

EVM must arrange all financing for the development, construction and commissioning of any future mine including Zenith's share. Zenith must repay its proportionate share of the project finance including interest from the sale of its proportionate share of minerals produced.

EVM to spend a minimum of A$7M on exploration on the projects, in 24 months, before being able to voluntarily withdraw provided that if EVM does not complete a feasibility study within 24 months it will be deemed to have withdrawn and will not earn an interest in the project lithium rights.

The agreement includes a joint venture over Zenith's Split Rocks and Waratah Well projects in Western Australia, as well as a non-exclusiveright to bring additional projects to the joint venture by either party, to explore for lithium/EV metals.

In addition, EVM or its nominees subscribed for 20,000,000 ordinary ZNC shares @ $0.30 cents per share (representing a premium of 20% above the then VWAP for ZNC shares for the preceding 10 Business Days) raising A$6M (Placement), with funds applied to source new lithium opportunities, near term advancement of its gold and base metals portfolio and working capital (ASX Release 19-Jan-22).

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Figure 1: Zenith Lithium Joint Venture - Project Locations (stars) and Alliance Project (square)

Zenith Lithium Joint Venture

Zenith is being developed as a pure lithium company to refocus on minerals containing lithium and related metals required for rechargeable lithium-ion batteries for electric vehicles and renewable energy storage ("Battery Minerals"), backed by a new alliance with the EV Metals Group (EVM), as detailed in ASX Release 13-Jan-22. Key

onlycommercial terms of the Zenith Lithium Joint Venture with EVM include:

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