Anglo Australian Resources NL : Quarterly Activities & Cashflow Report

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DECEMBER 2021 QUARTERLY REPORT

Anglo Australian Resources NL	Summary & Highlights
ASX Code: AAR		MANDILLA GOLD PROJECT - Kalgoorlie, WA
ACN: 009 159 077	AAR ‐ 100% Interest
ABN: 24 651 541 976	Upgraded JORC 2012 Mineral Resource Estimate (MRE) of 24Mt at 1.0g/t Au for
Suite 2			784koz of contained gold completed (announced 18 January 2022),
6 Lyall Street		encompassing the cornerstone Theia and Iris deposits, and an inaugural MRE at
South Perth WA 6151	the Eos discovery.
Tel:	08 9382 8822	21,429 metres of drilling completed, including 7,822 metres of RC drilling, 3,347
metres of diamond drilling and 10,260 metres of AC drilling.
Email:	[e-mail]	To simplify reporting of the growing mineralisation at the Mandilla Project, the
Website: www.anglo.com.au	Mandilla East and Mandilla South deposits have been renamed Theia and Iris
Capital Structure (at 31‐Dec‐2021)	respectively.
Assays were reported for 17,471 metres of RC drilling, with key results including:
Fully Paid Ordinary Shares	THEIA
∙ 8m at 10.01g/t Au from 64m in MDRC452;
596,179,239	Ordinary shares
∙ 7m at 6.02/t Au from 73m and 2m at 12.52g/t Au from 158m in MDRC500;
Options
		∙ 37m at 3.07g/t Au from 89m and 20m at 1.15g/t Au from 38m in MDRC426;
3,000,000	($0.135 exp 27‐Nov‐22)*
∙ 8m at 3.07g/t Au from 34m and 17m at 1.02g/t Au from 78m in MDRC490;
1,250,000	($0.15 exp 31‐Dec‐22)
∙ 15m at 1.56g/t Au from 79m in MDRC508;
2,000,000	($0.213 exp 7‐Oct‐22)	∙ 8m at 1.31g/t Au from 15m and 6m at 2.23g/t Au from 32m in MDRC499;
6,000,000	($0.34 exp 31‐Dec‐22)	∙ 19m at 1.26g/t Au from 30m in MDRC462; and
3,000,000	($0.119 exp 19‐Nov‐23)	∙ 39m at 1.23g/t Au from 141m, 14m at 0.63g/t Au from 119m and 10m at
* ‐ subject to various vesting terms	0.60g/t Au from 102m in MDRC427.
Performance Rights **	IRIS
∙ 40m at 1.19g/t Au from 142m in MDRC562; and
1,830,780	Incentive 2020A
∙ 16m at 0.95g/t Au from 64m in MDRCD560.
5,340,074	Incentive 2020B
EOS
2,382,216	LTI 2020C	∙ 3m at 5.85g/t Au from 52m including 1m at 14.24g/t Au from 52m in
6,954,579	LTI 2020D	MDRC526;
** ‐ subject to various performance and	∙ 12m at 4.39g/t Au from 52m in MDRC545;
vesting criteria	∙ 7m at 2.79g/t Au from 48m in MDRC551;
Board Members	∙ 4m at 3.97g/t Au from 52m in MDRC554; and
∙ 4m at 3.47g/t Au from 51m in MDRC530.
Leigh Warnick
	Drilling on a new target west of Theia (outside of the MRE) returned encouraging
Non‐Executive Chairman	results including:
Marc Ducler		∙ 12m at 3.00g/t Au from 11m in MDRC585;
	∙ 11m at 0.61g/t Au from 58m in MDRC584; and
Managing Director
Justin Osborne		∙ 1m at 8.72g/t Au from 10m in MDRC583.
	KOONGIE PARK JOINT VENTURE - Halls Creek, WA
Non‐Executive Director
AAR ‐ 50% Joint Venture Interest (100% interest - gold and precious metals)
Peter Stern		AuKing acquired an additional 25% interest in the Joint Venture by completing
Non‐Executive Director	expenditure of > $1.5 million since commencement.
David Varcoe		Numerous high‐grade copper results released.
	CORPORATE
Non‐Executive Director
			Cash of $6.1 million at 31 December 2021.

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OVERVIEW

Anglo Australian Managing Director Marc Ducler said:

"The delivery of our third successive Mineral Resource Estimate for Mandilla within eight months is an outstanding achievement, particularly against the backdrop of COVID restrictions and labour shortages. Mandilla has now grown to a significant scale of 784,000 ounces and, when combined with 116,000 ounces of contained gold at Feysville for a total of 900,000 ounces, indicates genuine potential for the development of a new operational hub near Kalgoorlie.

"With over 3,000 metres of diamond core and 10,260 metres of air‐core drilling yet to be assayed, we expect to announce further results throughout the March Quarter.

"We also have a number of key targets to further grow the Mandilla mineral inventory. In particular, the Eos discovery is still at a very early stage and, encouragingly, converted to an initial Mineral Resource at a solid grade of 1.2g/t Au. With further in‐fill drilling, we believe we can better delineate the higher‐grade paleochannel mineralisation at Eos, which has potential to increase both the grade and size of the Mineral Resource.

"The cornerstone Theia deposit (previously named Mandilla East) remains open in several directions and at depth. The RC results reported in December 2021 demonstrated the strong endowment potential of this region, with a new target identified coincident with a sheared basalt contact to the west of Theia returning significant first‐pass results including 1 metre at 8.72g/t Au and 12 metres at 3.00g/t Au. This basalt‐associated target is in a different geological setting to the three granite associated deposits already delineated, providing encouragement that further new deposit styles may be identified.

"We remain well funded to continue our planned work programs, with approximately $6.1 million of cash at Quarter‐end. With new phases of exploration and Resource definition to commence during the March‐22 Quarter, we are focused on continuing to grow the Mineral Resource at Mandilla while concurrently strengthening our growth pipeline in the region, with drilling at Feysville to follow. These two projects are on the doorstep of Kalgoorlie - one of the world's great gold mining jurisdictions."

MANDILLA GOLD PROJECT - Kalgoorlie, WA

AAR ‐ 100% Interest

The Mandilla Gold Project is situated in the northern Widgiemooltha greenstone belt in the western part of the Kalgoorlie geological domain, some 70km south of the significant gold mining centre of Kalgoorlie, Western Australia. The location of the project in relation to Kalgoorlie and other nearby gold projects is shown in Figure 1.

Image 1 - Diamond drilling at Mandilla, October 2021

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Figure 1 - Mandilla Project, Location Map.

The Mandilla Gold Project is covered by existing Mining Leases which are not subject to any third‐party royalties other than the standard WA Government gold royalty.

A map of the Mandilla Gold Project, illustrating key locations and basic geological features, is shown in Figure 2.

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onlyuse personalFor Figure 2 - Mandilla local area geology (including best intercepts).

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Mineral Resource Estimate (MRE) - January 2022 (post quarter‐end)

On 18 January 2022, the Company reported an updated JORC 2012 Mineral Resource Estimate (MRE) of 24Mt at 1.0g/t Au for 784koz of contained gold, encompassing the cornerstone Theia and Iris deposits, and an inaugural MRE at the Eos discovery. The MRE was prepared by independent consultant Cube Consulting in accordance with the JORC Code (2012 Edition).

This is the third MRE published for Mandilla within eight months and provides strong encouragement that AAR can continue to grow its Mineral Resource inventory as it progresses its strategy to develop a long‐term gold business in the Kalgoorlie region based on its Mandilla and Feysville Projects (see Figure 1).

The MRE was estimated using a 0.39g/t Au cut‐off and is constrained within pit shells using a gold price of AUD$2,500 per ounce (consistent with the maiden MRE).

The MRE is summarised in Table 1 below, with a more detailed breakdown provided in

Table 2. A grade and tonnage sensitivity analysis is provided in Table 3.

Table 1 - Mandilla Mineral Resource Estimate (January 2022)

Mineral Resource Estimate for the Mandilla Gold Project

(Cut‐Off Grade >0.39g/t Au)

Classification	Tonnes (Mt)	Grade (g/t)	Ounces (koz)
Indicated	10	1.0	331
Inferred	14	1.0	453
Total	24	1.0	784

The preceding statement of Mineral Resources conforms to the Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves (JORC Code) 2012 Edition. All tonnages reported are dry metric tonnes. Minor discrepancies may occur due to rounding to appropriate significant figures.

					Table 2 - MRE (January 2022) Grade and tonnage by source
		Deposit		Classification		Tonnes (Mt)		Grade (g/t)	Ounces (koz)
		Theia			Indicated		10		1.0		320
					Inferred		9.3		1.1		338
						Total		19		1.1		658
		Iris			Indicated		0.5		0.7		11
					Inferred		4.0		0.8		104
						Total		4.4		0.8		115
					Indicated
		Eos				Inferred		0.3		1.2		11
						Total		0.3		1.2		11
		Total						24		1.0		784
		All tonnages reported	are dry metric tonnes. Minor discrepancies may occur due to rounding to appropriate significant
		figures.
				Table 3 - MRE (January 2022) Grade and tonnage by cut‐off grade
		Cut‐off grade (g/t Au)			Tonnes (Mt)		Grade (g/t)		Ounces (koz)
	0.30			28			0.9		831
0.35		26			1.0		807
0.39		24			1.0		784
0.40		24			1.0		781
0.45		21			1.1		752
0.50		19			1.2		721

All tonnages reported are dry metric tonnes. Minor discrepancies may occur due to rounding to appropriate significant figures.

The locations of the optimised pit shells based on a gold price of AUD$2,500 per ounce are set out in plan view in Figure 3 below.

The cross‐sections referenced below are also annotated on this plan.

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