Lycaon Resources : Magnetic Survey Provides New Targets at Rocky Dam

ADDRESS	ABN
Level 2, 22 Mount Street	80 647 829 749
Perth WA 6000
PHONE	WEBSITE
[phone]	www.lycaonresources.com

5 April 2022

Magnetic Survey Provides New Targets at Rocky Dam

Highlights:

• • Detailed drone magnetic survey covering 29.5 km² recently completed at the Rocky Dam project defines new targets to follow up

• • RD2 target located on interpreted greenstone with associated discrete magnetic high

• • RD3 target covering area of structural complexity along ENE trending Proterozoic dyke and intersection of greenstone

• • RD4 target magnetic high on Proterozoic dyke, potential for nickel-palladium-platinum to be investigated

• • Extensive auger sampling for new target generation across broader tenement package >70% completed, with results expected in the coming month

Lycaon Resources Ltd (ASX:LYN) (Lycaon or the Company) is pleased to announce the completion and review of a high detail drone magnetic survey at the Rocky Dam gold project (Rocky Dam Project) in the Goldfields region of Western Australia. The review of the high-resolution data has led to a further three areas of interest being identified for follow up exploration. The Company is also completing an extensive auger sampling program for new target generation across the broader tenement package.

Mr Thomas Langley, Technical Director commented "The high detail magnetic survey has highlighted an additional 3 priority targets for further exploration work, broadening our exploration search to include lithium, nickel, platinum and palladium mineralisation styles. In light of recent discoveries by Galileo Mining and St George Mining of nickel, palladium and platinum mineralisation the prominent ENE trending Proterozoic dyke that transects the Rocky Dam project and the associated magnetic highs, warrant further investigation. Following the recent RC drill program being completed intersecting primary gold mineralisation in fresh rock, there remains significant potential across the Rocky Dam project area for a variety of mineralisation styles."

"The auger sampling program across the broader tenement package will be important in identifying new targets to follow up with further auger sampling and drilling throughout 2022 and

I'm looking forward to receiving those results in the coming month."

Figure 1. New targets identified following the Ultramag drone survey.

Ultramag Geophysics flew a detailed magnetic survey over 29.5 km² at the Rocky Dam gold project to assist with exploration targeting. Magnetic data was recorded using a DJI Matrice UAS flying at 8 m/s with a GEM Systems GSMP-35U sensor, Figure 2. The line spacing was 40m, with the total duration of the data acquisition to taking approximately 10 days.

Gyro drilling is undertaking an auger program designed as a first pass geochemical survey to define anomalies that may be related to primary gold mineralisation at depth across tenements E27/611,

E27/612 and E28/2988, Figure 3. It is a key step in exploration targeting, with subsequent further infill and extensional auger soil sampling to follow, if results warrant. The auger samples will be completed on an east-west 50m grid and north-south 400m grid spacing, for a total of 2,548 samples. The

Company proposes to complete further auger sampling and aircore drilling shortly after this initial auger sampling concludes. Both the drone survey and auger sampling will assist in ongoing geological review to identify, prioritise, and rank new targets for further exploration programs.

Figure 2. Ultramag drone survey underway at the Rocky Dam Project.

Figure 3. Rocky Dam Project tenements and work programs.

Rocky Dam Project (Gold)

The Rocky Dam Project comprises nine (9) granted and one (1) pending Exploration Licences covering approximately 162.8km², a significant landholding in the highly prospective Norseman - Wiluna Greenstone Belt around the Yindarlgooda Dome within the Eastern Goldfields. The Project is centred 60km northeast of Kalgoorlie via sealed and well-maintained gravel roads. The Project is close to significant mining infrastructure and surrounds gold producer Northern Star Limited's recent Kurnalpi Project acquisition and active explorers Riversgold Limited (ASX:RGL) and Black Cat Syndicate Limited (ASX:BC8).

Figure 4. Lycaon Resources three major projects located in Western Australia.

The Rocky Dam Project lies within a favourable setting for orogenic gold and base metal-rich Volcanic Massive Sulphide-style (VMS) styles of mineralisation with multiple other prospects identified throughout the tenure. The large-scale supergene gold mineralisation recorded in historical drilling demonstrates a fertile project area potentially active during major Yilgarn greenstone mineralisation events, which presents a great opportunity to potentially discover primary bedrock mineralisation that may be the source of the supergene enrichment.

Exploration work to date at the Rocky Dam Project has identified gold mineralisation at the CRA-North Prospect. The prospect was first discovered in the 1990s as a 700m long gold anomaly along a sheared contact of felsic volcanics and black shales. Historical drilling has returned encouraging results delineating thick shallow zones of supergene gold mineralisation. The oxide mineralisation is associated with ferruginous quartz veining and sericite alteration, and remains open along strike with best results including:

• • 40m @ 0.6 g/t Au [18m] in RDRC002 including 9m @ 1.7 g/t Au [40m]

• • 21m @ 1.0 g/t Au [41m] in RDRC012 including 6m @ 2.8 g/t Au [52m]

• • 4m @ 4.1 g/t Au [62m] in RDRC001 including 1m @ 13.8 g/t Au [67m]

• • 15m @ 0.4 g/t Au [13m] in RDRC009 including 4m @ 1.3 g/t Au [17m]

• • 20m @ 0.6 g/t Au [39m] in RDRC006 including 2m @ 3.0 g/t Au [39m]

• • 2m @ 5.9 g/t Au [95m] in RDRC007

The significant low order gold mineralisation recorded in historical drilling suggests a mineralised system is present at CRA-North, warranting further drill testing. Initial exploration work programs will consist of RC and diamond drilling planned to delineate the strike extent of the oxide mineralisation and to test for primary mineralisation at depth. Geochemical sampling, geophysics and aircore drilling will be completed at regional targets.

This announcement has been authorised for release by the Directors of the Company.

Thomas Langley - Technical Director

For additional information please visit our website atwww.lycaonresources.com

Competent Person's Statement

The information in this document that relates to Exploration Results, Mineral Resources or Ore Reserves is based on information compiled by Mr. Thomas Langley who is a member of the Australian Institute of Geoscientists (MAIG) and a member of the Australasian Institute of Mining and Metallurgy (MAusIMM). Mr. Thomas Langley is a full-time employee of Lycaon Resources Limited, and is a shareholder, however Mr. Thomas Langley believes this shareholding does not create a conflict of interest, and Mr. Langley has sufficient experience which is relevant to the style of mineralisation and type of deposit under consideration and to the activity which he is undertaking to qualify as a Competent Person as defined in the 2012 Edition of the "Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves". Mr. Langley consents to the inclusion in this presentation of the matters based on his information in the form and context in which it appears.

The Company confirms that it is not aware of any new information or data that materially affects the information in the original reports, and that the forma and context in which the Competent Person's findings are presented have not been materially modified from the original reports.

JORC Code, 2012 Edition - Table 1 report template

Section 1 Sampling Techniques and Data

(Criteria in this section apply to all succeeding sections.)

Criteria	JORC Code explanation	Commentary
Sampling techniques	 Nature and quality of sampling (eg cut channels, random chips, or specific specialised industry standard measurement tools appropriate to the minerals under investigation, such as down hole gamma sondes, or handheld XRF instruments, etc). These examples should not be taken as limiting the broad meaning of sampling.  Include reference to measures taken to ensure sample representivity and the appropriate calibration of any measurement tools or systems used.  Aspects of the determination of mineralisation that are Material to the Public Report.  In cases where 'industry standard' work has been done this would be relatively simple (eg 'reverse circulation drilling was used to obtain 1 m samples from which 3 kg was pulverised to produce a 30 g charge for fire assay'). In other cases more explanation may be	 No drilling was completed in this phase of works.  Ultramag Geophysics were contracted to complete the magnetic survey.  Survey data was collected with 40m line spacing at a low altitude with sensor height of 45m  Sample rates up to 20 Hz  Drone location is via Global Positioning System (GPS). Location accuracy is indicated by PDOP (Position Dilution of Precision = geometry of satellites and/or Horizontal Position Error (HPE)) and is typically in the range of 0.1 to 6 meters.  High accuracy (~30mm) positioning of drone-based GPS system  Base station on site with real-time radio data link. This is known as Real Time Kinematic GPS (RTK). The radio link is line of sight. For traversing hills a repeater can be used.  The following steps were performed during the magnetics processing: o Review or application of compensation o Diurnal plotting and reduction.