Disseminated Ni-Cu sulphides in drilling - Sovereign Project

AUSTRALIAN SILICA QUARTZ GROUP LIMITED

INITIAL DIAMOND DRILLING AT SOVEREIGN INTERSECTS THICK INTRUSIVE

SEQUENCE WITH DISSEMINATED NICKEL-COPPER SULPHIDES

Visual observations from first two diamond holes validate the significant potential for Julimar-stylenickel-copper mineralisation within extensive mafic-ultramafic intrusion

HIGHLIGHTS
only	➢ DevEx's maiden stratigraphic diamond drilling program has
		encountered an extensive sequence of differentiated mafic-
use		ultramafic intrusive rocks, including gabbronorite, norite,
	pyroxenite and serpentinite.
➢ Within Hole 2, broad intervals of low-grade disseminated nickel-
	copper sulphide mineralisation are observed in the hole, including
	several narrow (5-10cm) bands of matrix textured iron-nickel-
	copper sulphides.
➢ The diamond holes are currently being logged with sampling of the
personal
	core underway.
➢	class Gonneville Ni-Cu-PGE discovery.
	In parallel, an extensive ground electromagnetic (EM) survey has

also commenced which is designed to cover the majority of the 12km-long intrusion over the coming months.

➢ The encouraging results from these initial diamond holes have provided strong endorsement of the prospectivity of the 12km long Sovereign Mafic-Ultramafic Intrusion, which is located within the Julimar Complex to the north of Chalice Mining Ltd's world-

ASX Listed DevEx Resources Limited ("DevEx", ASX: DEV) has today lodged an announcement advising that the initial two stratigraphic diamond drill holes have been completed at the Sovereign Project in the highly

rospective Julimar Region, WA.

DevEx are conducting exploration on the Sovereign Project under the 50/50 ForJoint Venture on ASQ's E70/3405 located along strike from the Chalice Gold Mines Ltd (ASX: CHN) nickel-copper-platinum group elements (Ni-Cu-PGE)

Julimar discovery in WA.

A full copy of the DevEx announcement is attached.

DevEx is earning into the non-bauxite rights of E70/3405 by an initial spend of $3m to earn a 50% interest. Following the initial spend, ASQ may elect to contribute to further exploration to maintain its 50% interest, or may have DevEx spend an additional $3m to earn a further 20% interest with ASQ diluting.

This announcement has been authorised for release by the Board.

10 November 2021

ASX Code: ASQ

AUSTRALIAN SILICA

QUARTZ GROUP LTD

ABN: 72 119 699 982

DIRECTORS:

Robert Nash

Non Executive Chairman

Luke Atkins

Non Executive Director

Neil Lithgow

Non Executive Director

Pengfei Zhao

Non Executive Director

CHIEF EXECUTIVE OFFICER

AND COMPANY

SECRETARY:

Sam Middlemas

Head Office:

Suite 10, 295 Rokeby Road

Subiaco WA 6008

Mail:

Suite 10, 295 Rokeby Road Subiaco WA 6008

1. [phone]

1. [phone]

1. [e-mail]

1. www.asqg.com.au

Share Registry:

Automic Group

GPO Box 5193

Sydney NSW 2001

1. 1300 288 664 (within Australia)

1. [phone] (international) www.automicgroup.com.au

Suite 10, 295 Rokeby Road, SUBIACO WA 6008

Phone: [phone] Fax: [phone] www.asqg.com.au

For personal use only

About Australian Silica Quartz Group Limited

ASQ DEVEX 50/50 JV (non-dilutable at ASQ's election)

ASQ has entered into a joint venture with DevEx Resources ("DevEx" ASX:DEV) on it's 100% owned E70/3405 tenement located along strike from Chalice Gold Mines ("Chalice" ASX:CHN) nickel copper platinum group elements Julimar discovery in WA. The first $3M expenditure on the JV area is to be fully funded by DevEx to earn 50%. ASQ has the option to jointly fund future expenditure to maintain 50% share or opt to allow DevEx to fund the next $3M to earn a further 20% share in non-bauxite minerals. Initial geochemical and geophysical exploration work returned positive results. Recently completed aircore drilling has defined a layered, differentiated mafic-ultramafic intrusion, extending over 12 kilometres in length. (refer full detail in the 1 June 2020 announcement ASQ reaches agreement for funding of exploration on its tenement in Julimar Region, WA, 8 October 2020 announcement Update on Geophysics Targets at ASQ/DevEx JV in Julimar Region, WA, 19 August 2020 announcement Update on ASQ/DevEx 50/50 JV in Julimar Region, WA, 4 December 2020 announcement DevEx Exploration Update, 27 April 2021 announcement Drilling confirms Mafic-UltramaficIntrusion at Sovereign and 17 August 2021 announcement 12km Long Mafic-UltramaficIntrusion at Sovereign, Large Scale Ground EM and Diamond Drilling set to Commence)

SILICA

ASQ has established a range of silica sand and hardrock projects held via exploration licence applications 100% owned by ASQ's subsidiary Australian Silica Quartz Pty Ltd. These projects now consist of 10 granted exploration licences and 6 applications covering approximately 1,500 km2 within Western Australia and Queensland.

High grade silica (99.5-99.9% SiO2) and high purity silica (>99.95% SiO2) currently have a wide range of applications. All indications suggest the high grade and high purity silica market is currently growing strongly due to greater demand from the PV Solar, TFT glass, Electronics, Flat Glass and Speciality Glass industries. This is reinforced by the level of enquiries received from qualified end user customers the Company has received primarily from China and South East Asia.

SILICA SAND

ASQ's high grade silica sand projects are located in the regions of Albany, Gingin and Esperance in the southwest of Western Australia.

In the shorter term these projects potentially present the opportunity for the Company to produce a washed DSO silica sand product with longer term potential to enter the higher value higher grade silica sand market with a niche processed product.

ASQ is currently working on a Scoping Study for the 11.6Mt Albany White Hill high grade, low iron Silica Sand Project (refer full detail in the 28 January 2021 announcement High Grade, Low Iron Silica Sand Resource). The Albany White Hill Project is located on farmland cleared of native vegetation 70 km east northeast of the port of Albany.

In addition to it's wholly owned silica exploration projects ASQ has reached an agreement with an existing local sand producer. In 2019 the Company executed a binding terms sheet with Urban Resources Pty Ltd (Urban) to jointly exploit Urban's Silica Sand deposit located in Bullsbrook, Western Australia. Urban has operated the mine for the last six years and produced over 1Mt from the deposit in last two years. The ASQ/Urban Resources agreement presents the Company with the opportunity to potentially fast track it's entry into the DSO silica sand export market. ASQG have completed a JORC 2012 Inferred Mineral Resource on the raw sand at Urban's Maralla Road tenement M70/326 (refer full detail in the 7 May 2019 announcement Update on Maralla Road Silica Sand Deposit Maiden Resource and 29 January 2020 announcement Spiral and Classifier Testwork Results for the M70/326 Silica Sand Products).

HARDROCK QUARTZ R&D

The Company is undertaking an R&D program aiming to develop a high purity, high value silica quartz product. To this end the Company has secured a number of hardrock quartz tenements and is progressing with a research and development project in this area. Assays from rock chip sampling of ASQ's hard rock tenements reported grades of up to 99.993% SiO2 with processed hard rock samples demonstrating further grade improvement (refer full detail in the 14 December 2017 announcement Silica Sand and Hardrock Quartz Project Updates).

2

Suite 10, 295 Rokeby Road, SUBIACO WA 6008 Phone: [phone] Fax: [phone] www.asqg.com.au

For personal use only

SOUTH STIRLING Ni/Cu PROJECT

ASQ has established the South Stirling Ni/Cu Project by way of four exploration lease applications lodged covering 1,603 km2 over the Albany Fraser Mobile Belt, South Western WA where the Company has identified a historic end of hole aircore drilling assay of 1.5m at 0.79% Ni, 934 ppm Cu, 832 ppm Co from 28.5m that was never followed up. ASQ considers the application area has potential for Nickel-Copper magmatic sulphide mineralisation associated with mafic-ultramafic intrusions emplaced into granulite facies country rocks. (refer full detail in the 23 September 2020 announcement Exploration Update.)

BAUXITE JV

ASQ has a joint venture with HD Mining & Investments Pty Ltd (HDM). HDM is currently working towards obtaining a 40% interest in the bauxite rights of several tenements under the joint venture which are wholly owned by ASQ. Exploration activities are fully funded by HDM. Should HDM and ASQ make a subsequent decision to mine, then HDM will earn an additional 20% interest in bauxite rights on the tenements. ASQ maintains 100% interest in all other minerals. A ninety-five million tonne Bauxite JORC resource has been identified under this JV. (refer Company Annual Financial Report for 2020 - Mineral Resources and Ore Reserves section)

BAUXITE ROYALTY

Following the sale of the Bauxite Resources Joint Venture Bauxite Project to Yankuang Group a royalty on future bauxite sales from the project of 0.9% of FOB price payable to ASQ was negotiated. The Yankuang Group bauxite project contains in excess of 300 million tonnes in the world class bauxite region in the Darling Range, Western Australia. ASQ is entitled to a royalty of 0.9% of the FOB price on the first 100 million tonnes mined (under current prices of Bauxite this royalty would equate to approx. A$0.50/tonne)(refer full detail in 30 November 2015 announcement Final Agreements signed with Yankuang for sale of Joint Venture Interest and Buy Back of Shares)

3

Suite 10, 295 Rokeby Road, SUBIACO WA 6008 Phone: [phone] Fax: [phone] www.asqg.com.au

10th November 2021

Initial diamond drilling at Sovereign intersects thick intrusive

only	sequence with disseminated nickel-copper sulphides
use	Visual observations from first two diamond holes validate the significant potential for
Julimar-stylenickel-copper mineralisation within extensive mafic-ultramafic intrusion
HIGHLIGHTS
• DevEx's maiden stratigraphic diamond drilling program has encountered an extensive
		sequence of differentiated mafic-ultramafic intrusive rocks, including gabbronorite, norite,
personalFor		pyroxenite and serpentinite.
• Within Hole 2, broad intervals of low-grade disseminated nickel-copper sulphide mineralisation

are observed in the hole, including several narrow (5-10cm) bands of matrix textured iron- nickel-copper sulphides.

• The diamond holes are currently being logged with sampling of the core underway.

• In parallel, an extensive ground electromagnetic (EM) survey has also commenced which is designed to cover the majority of the 12km-long intrusion over the coming months.

• The encouraging results from these initial diamond holes have provided strong endorsement of the prospectivity of the 12km long Sovereign Mafic-Ultramafic Intrusion, which is located within the Julimar Complex to the north of Chalice Mining Ltd's world-class Gonneville Ni-Cu- PGE discovery.

DevEx Resources (ASX: DEV, "DevEx" or "the Company") is pleased to advise that it has completed the first two stratigraphic diamond drill-holes at the Sovereign Nickel-Copper-PGEProject in Western Australia's Julimar Province.

The two holes, which were collared 550m apart and totalled 921m of drilling, were designed to test the central portion of the Sovereign mafic-ultramafic intrusion providing information on the geometry and geology of the intrusion.

The outcomes of these initial framework reconnaissance holes have exceeded the Company's expectations, with the drilling encountering a thick intrusive sequence of metamorphosed gabbronorite, norite and ultramafic (including pyroxenite and serpentinite) rocks - as outlined in the attached summary logs (Appendix 1, Table 1).

Within hole 21SVDD02 (Hole 2), visual observations of the drill core, supported by spot pXRF analysis, indicate that the drilling has encountered several zones of disseminated (low-gradei)copper-nickel

i Visual inspection of the diamond core and preliminary logging indicates that assay intervals within these broad zones comprising disseminated Ni-Cu sulphides are likely to be low grade [less than 1% Ni and Cu].

www.devexresources.com.au
T: [phone]	DevEx Resources Limited
F: [phone]
Level 2, 1292 Hay Street, West Perth WA 6005, Australia
E: [e-mail]
GPO Box 2890, Perth WA 6001

For personal use only

sulphide mineralisation associated with the mafic-ultramafic intrusion, including several narrow (5- 10cm) bands of matrix textured iron-nickel-copper sulphides - see Figure 1.

Observations of the core indicate that the geology and mineralisation have been modified by pervasive regional metamorphism, similar to the processes described at Gonneville by Chalice Mining Limited.

In addition, Hole 2 appears to have drilled through the intrusion into garnet-bearing mafic volcanic/sedimentary country rocks. Copper sulphides are commonly observed in these country rocks adjacent to the intrusion (see Figure 2).

Considering that these two maiden diamond holes were planned to garner initial insights into the geometry and framework of the 12km-long differentiated mafic-ultramafic intrusion (see Figure 3), DevEx regards these results to be a significant endorsement of the prospectivity of the Sovereign Mafic Ultramafic Intrusion to host Ni-Cu-PGE mineralisation.

The association of palladium and platinum (PGE) with the nickel-sulphide mineralisation will be determined once the diamond core is sampled and assays are received. Both diamond drill holes are currently being logged in detail, together with sampling of the core for analysis.

Figure 1: Matrix textured Fe-Ni-Cu sulphides within norite rock at 431.4m down-hole in Hole 2 (left) and disseminated Ni-

Cu-Fe sulphides within norite rocks at 232.3m down-hole in Hole 2 (right).

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