Western Mines Group Ltd. updated shareholders on geochemical assay results from the Mulga Tank Ni-Cu-PGE Project. Results have been received for Phase 2 hole MTD022 and wedge MTD022W1, along with further follow-up samples submitted from Phase 1 hole MTD012. MTD022 and MTD022W1 intersected a ~506m thick package of high MgO adcumulate dunite ultramafic containing disseminated magmatic sulphides (trace to 2%) that in places coalesced into interstitial blebs (3 to 5% sulphide).

The sulphides started from ~120m downhole. MTD022 assay results show adcumulate-extreme adcumulate dunite down the length of the hole, averaging 46.6% MgO, 0.29% Al2O3 (volatile free) and 0.29% Ni for all samples assayed over 474.2m. A number of intersections show good evidence for disseminated Mt Keith-style nickel mineralisation and a "live" magmatic sulphide mineral system, including the relatively shallow intercept: MTD022: 114m at 0.31% Ni, 33ppm Cu, 121ppm Co from 124m (0.25% Ni cut-off) inc. 14m at 0.48% Ni, 152ppm Cu, 171ppm Co with 0.66% S from 168m (0.4% cut-off).

The assay results confirm Ni-Cu-PGE mineralisation in the remobilised massive nickel sulphide veinlets seen near the basal contact of the hole: MTD022: 0.5m at 1.42% Ni, 518ppm Cu, 372ppm Co, 0.41g/t Pt+Pd from 553m. MTD022W1: 0.15m at 2.73% Ni, 812ppm Cu, 595ppm Co, 0.10g/t Pt+Pd from 525.15m. Follow-up samples were also submitted from Phase 1 hole MTD012 after reinvestigation in light of the MTD022: visual results found previously unlogged disseminated sulphide mineralisation, with corresponding anomalous pXRF data (ASX, Nickel Sulphide Mineralisation Seen in Hole MTD022, 14 December 2022).

These assay results show a similar relatively shallow intercept of disseminated mineralisation to hole MTD022, which may hint at the lateral extent of this system in drill holes approximately 500m apart: MTD012 50m at 0.32% Ni, 25ppm Cu, 124ppm Co, 12ppb Pt+Pd from 177m (0.3% Ni cut-off) inc. 16m at 0.38% Ni, 38ppm Cu, 132ppm Co, 16ppb Pt+Pd from 197m (0.35% Ni cut-off). MULGA TANK PHASE 2 DIAMOND DRILLING PROGRAM: WMG is currently undertaking a six-hole diamond drilling program, totalling 4,000-5,000m, to test a number of follow-up targets based on the results of the Company's first drilling program and ongoing exploration targeting work. The targets and drill holes selected are based on a combination of geophysical modelling of recent DownHole Electromagnetic (DHEM) results and previous Moving Loop Electromagnetic (MLEM) results along with geological interpretation of the complex and geochemical vectoring work (ASX, Phase 2 Drilling has Commenced at Mulga Tank, 28 November 2022).

The program includes two deep co-funded EIS holes to be drilled with the aid of WMG's EIS award. HOLE MTD022: Hole MTD022 was designed to test the centre of the W Conductor MLEM anomaly (~2,000-3,000S) at depth between previous Phase 1 holes MTD012 and MTD013. Holes MTD012 and MTD013 showed multiple occurrences of visible nickel sulphide veins that were confirmed by geochemical assay and recent mineralogical thin section work.

The hole was drilled to a depth of 558.5m before the drill rods became stuck in broken ground. The drilling largely confirmed WMG's geological modelling work with the hole intersecting 474.2m of variably serpentinised and talc-carbonate altered high MgO adcumulate dunite ultramafic (from 84.3-558.5m), beneath 84.3m of sand cover (0-84.3m). Disseminated magmatic sulphides (trace to 2%) were observed down the majority of the hole, starting from around 120m depth.

In places the disseminated sulphides coalesced into interstitial blebs (3 to 5% sulphide) between former olivine crystals. Similar sulphide mineralisation was observed in Phase 1 hole MTD020 and recent mineralogical investigation work by the Company has shown the sulphide component of holes MTD020 and MTD022 to be dominated by relatively coarse pentlandite blebs. A significant intersection of remobilised nickel sulphide (logged as pentlandite and millerite) was observed at 553m depth, just before the drill bit and rods became stuck.

Given this encouraging visual observation the decision was made to cut the drill rods and wedge off the hole in order to continue drilling to the basal contact target. WEDGE MTD022W1: A wedge was inserted in hole MTD022 at 460.1m depth and the hole was extended to a total depth of 647.1m; the deepest hole ever drilled at the Mulga Tank Project. Variably serpentinised and talc-carbonate altered adcumulate dunite ultramafic was intersected (460.5-588.7m) before the basal contact with the footwall consisting of basalt and interbedded cherts and shales (588.7-647.1m) at 588.7m depth.

Three further zones of remobilised nickel sulphide (logged as pentlandite and millerite) were observed within the wedge portion of the hole. These remobilised sulphide intersections (10-30cm in width) were significantly larger than those previously seen in nearby holes MTD012 and MTD013 - this may indicate closer proximity to a massive sulphide source. MTD022W1 was cased for a follow-up DHEM survey of this area.

HIGH MGO ADCUMULATE DUNITE Geochemical characterisation based on the recent sample results received from holes MTD022, MTD022W1 and MTD012 show the rock in all three holes to be nearly entirely adcumulate to extremely adcumulate dunite with Al2O3 generally less than 0.5% (with either contamination or orthocumulate peridotite appearing towards the base of MTD022W1 - 551m to 588.7m averaged 2.88% Al2O3). In each hole the dunite also showed high average MgO content across all samples from the logged ultramafic portions with average results of 46.6%, 44.9% and 48.2% MgO (volatile free) for holes MTD022, MTD022W1 and MTD012 respectively. This observation of extensive intersections of high MgO adcumulate dunite within the complex, starting essentially immediately under the sand cover, has positive implications for the targeting of large volume, low grade Type 2 Mt-Keith style disseminated nickel sulphide deposits within the Mulga Tank Complex.