Caspin Resources Limited provided an update on exploration activities and drill results from Yarabrook Hill Prospect at the Company's Yarawindah Brook PGE-Ni-Cu Project in Western Australia. Phase 1 of an RC program was completed in August-September 2021, the assay results of which have now been received in full. These results have been integrated into an updated geological model which is also based on pre-existing data and visual results from more recent drilling, which includes Phase 2 of the RC drilling program and two diamond drill holes.

All drilling has been focused on the Yarabrook Hill intrusion, which is only a small area within the overall Yarawindah Brook project area. Recent Drilling at the Yarabrook Hill Intrusion: Phase 1 of the RC program consisted of 11 holes for approximately 3,000m of drilling as a first pass test of the Yarabrook Hill intrusion, with the aim being to provide early insight into the architecture of the intrusion and assist any subsequent programs in vectoring towards its most prospective parts. Due to difficult ground conditions, the 11 holes were prioritised on ease of access within the prospect area and did not necessarily test the highest-ranking targets (e.g., the main part of the Eastern geochemical soil anomaly).

The program was suspended in September to allow for surface ground conditions to improve resulting in Phase 2 of the RC program being completed from October to December. Phase 2 consisted of a further 16 RC holes (~2,500m) and two diamond drill holes (YARCD0012, YAD0019; ~1,500m). The RC program mostly tested targets at the Eastern geochemical soil anomaly (5 holes, YARC0017 - YARC0021) and XC-22 airborne electromagnetic anomaly (6 holes; YARC0024 - YARC0027).

Three holes (YARC0013-YARC0015) tested a magnetic feature to the south of Yarabrook Hill but only intersected barren lower sequences of the intrusion. YAD0019 was an EIS-funded deep diamond drill hole designed to drill through as much of the intrusion as possible to help development of the geological model. Unfortunately, due to excessive ground water, many of the RC holes in Phase 2 have failed to reach target depth and will be extended with diamond tails on the recommencement of drilling.

Results from the Phase 1 drilling have returned broad zones of mineralisation. Note that these intersections contain some internal dilution from rocks such as late stage, barren dolerites. The previously reported result from YARC0001 of 263m at 0.24g/t Pd+Pt+Au (3E), 0.11%Ni & 0.13% Cu is the standout intersection, but further broad zones were returned in YARC0009, including 116m at 0.11g/t 3E, 0.15% Ni & 0.11% Cu, hosted within peridotite and pyroxenite rocks.

YARC0009 was drilled 135m up dip of YAD0017 which previously intersected multiple zones of PGE-Ni-Cu sulphide mineralization. Based on a review of the results received to date, it is now thought that the XC22 Prospect, while still hosted within the large Yarabrook Hill intrusion, may be a separate mineralised position to the main Yarabrook Hill mineralised zone which has been the focus of most exploration to date. Central Yarabrook Hill Intrusion: The combined results from Phase 1, and visual observations from Phase 2 RC and diamond holes have given the Company a greater understanding of intrusion architecture and controls on mineralisation, therefore helping the targeting of potentially economically-mineralised positions.

These new results are broadly consistent with the geological model for the Yarabrook Hill intrusion that has been previously reported. The key elements of this model are that the intrusion (or at least its eastern section) is interpreted to dip moderately to the NE and has been overturned, with a thick section of mineralisation-hosting ultramafic rocks (peridotite and pyroxenite) present immediately below the hanging-wall contact. The hanging-wall contact is interpreted to be a structural contact, where intersected to date, with significant later granitoid intrusions emplaced above and along it.