Strategic Energy Resources : December 2021 Quarterly Activities & Cashflow Reports

ASX ANNOUNCEMENT

31 January 2022

For personal use only

DECEMBER 2021 QUARTERLY ACTIVITIES REPORT

HIGHLIGHTS

• Canobie drilling returns highly encouraging Nickel intercepts from both drill holes
• Isa North Project tenement transfer from Newcrest now complete
• Machine Learning Project covering Isa Undercover Initiative nears completion
• East Tennant Exploration Licence covering Government drill hole NDIBK09 awarded to SER
• Benmara divestment complete with Resolution Minerals (ASX:RML)

Strategic Energy Resources Ltd (ASX Code: SER) is a specialised undercover mineral explorer and project generator

focused on discovery in greenfield frontiers of Australia.

Figure 1: SER Project Locations

strategicenergy.com.au

Level 4, 100 Albert Road, South Melbourne VIC 3205

ACN: 051 212 429

ASX ANNOUNCEMENT

31 January 2022

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CANOBIE PROJECT

QUEENSLAND (SER 100%)

• Drill results from the Kalarka Prospect advance the potential of the region to host significant Ni + Cu sulphide mineralisation
• Gravity interpretation identifies potential "ore junction" and related chonoliths
• Leading Ni sulphide expert Dr Steve Beresford engaged to guide exploration

During the quarter, SER completed a two-hole 1,574m diamond drilling program at the Kalarka Prospect within the Canobie Project, Northwest Queensland. The two drill holes were designed to test a discrete 750 x 600m, 40nT aeromagnetic response characterised by an elevated Electromagnetic (EM) response and partially coincident anomalously higher density.

The results from the drilling campaign were released during the quarter, with both holes intersecting thick intervals of nickel-elevated ultramafic rock with semi massive sulphide zones. Drill holes were collared 535m apart; best intersections included:

• CNDD001A:

• 1. 132m of disseminated Ni-Cu sulphides within ultramafic @ 0.1% Ni from 507m including 2m @ 0.68% Ni, 0.17% Cu (from 635m)
• CNDD002:
• 1. 43m of disseminated Ni-Cu sulphides within ultramafic @ 0.1% Ni from 615m and 0.6m @ 0.96% Ni, 0.11% Cu (from 661.6m)

All assay results are provided in the ASX release dated 20th December 2021.

Previous drill results at the nearby Tea Tree Nickel-Copper Sulphide Prospect (Fig. 2) recorded a 10.4m intersection at 0.25% Nickel and 0.28% Copper in drill hole TT00D11, located approximately 2.75km southeast of Kalarka. The results from these two Kalarka holes particularly the thick sequence of ultramafic rocks are an advancement to the previously known prospectivity of Tea Tree.

SER remains highly encouraged by the significant intervals of ultramafic rocks coupled with an increase in nickel grade within the sulphide zone compared to previous results at the nearby Tea Tree Prospect. These results demonstrate, at a local scale, the potential for accumulations of nickel sulphides to occur within a sulphur saturated magmatic system. This advances the potential of the region to host significant Ni + Cu sulphide mineralisation as broad zones of thick nickel and copper- bearing disseminated sulphides can be associated with more massive accumulations, as demonstrated between Western and Eastern Deeps systems at Voisey's Bay (Labrador, Canada) and within the Nebo-Babel deposit (West Musgraves Ranges, W.A.).

Furthermore, a revised interpretation of the detailed gravity data at Canobie shows that it maps mafic units across the project area and reveals that both the Kalarka and Tea Tree prospect form part of a larger ore junction. Importantly, extending north and south from the main ore junction are elongate gravity features interpreted as "chonolith" intrusions which have the potential to host higher tenor nickel-copper sulphide mineralisation (Fig. 3).

1ASX Announcement 26 August 2020: Exploration Update: Saxby Gold Project

strategicenergy.com.au

Level 4, 100 Albert Road, South Melbourne VIC 3205

ACN: 051 212 429

ASX ANNOUNCEMENT

31 January 2022

For personal use only

Figure 2: Bouguer Gravity 1 VD image with Tea Tree Ni-Cu sulphide intercepts

Whilst SER acknowledges that the nickel grade and tenor is low, this may be due to sulphur over saturation driven by the interaction of magma with graphite. Historical drilling targeted conductors subsequently revealed to be caused by graphite. There is evidence of other potential sulphur and metal source units locally in the rock record suggesting there could be untested parts of the system which assimilated different, more favourable host rocks.

The Kalarka drill program received co-funding through the Queensland Government Collaboration Exploration Initiative.2

2business.qld.gov.au/industries/mining-energy-water/resources/geoscience-information/exploration-incentives/exploration-grants

strategicenergy.com.au

Level 4, 100 Albert Road, South Melbourne VIC 3205

ACN: 051 212 429

ASX ANNOUNCEMENT

31 January 2022

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Figure 3: Left: Drill hole intersections surrounding the Kalarka Prospect over a Bouguer Gravity Image. Right: Reduction to Pole Magnetic Image. Note the elongate density highs (interpreted chonoliths) extending north and south from the ore junction.

FUTURE WORK PROGRAM

A complete review of the project has been undertaken by Dr Steve Beresford, the former Chief Geologist of major nickel explorers and producers IGO, First Quantum and MMG. During the first quarter of 2022 SER will re-log available drill core, undertake selected additional geochemical analysis, and petrology and petrophysical data collection to map the lithochemical signatures and allow vectoring into more prospective portions of the intrusive system. A similar "ore junction" gravity anomaly, approximately 50km to the southwest of the Tea Tree Prospect was identified as part of the project review and was secured during the quarter.

ISA NORTH PROJECT

QUEENSLAND (SER 100%)

In May 2020 SER announced the acquisition of the Isa North Copper-Gold Project from Newcrest Mining Ltd (ASX:NCM). The Isa North Project comprises three exploration licences covering an underexplored 976km2 belt located along the projected northern extension of the mineralised Mt Isa - Gunpowder Fault Zone. Several large deposits lie on or adjacent to this fault system, including the Mt Isa, Mt Oxide and Gunpowder copper deposits and the Mt Isa, Hilton and George Fisher lead- zinc-silver deposits.

strategicenergy.com.au

Level 4, 100 Albert Road, South Melbourne VIC 3205 ACN: 051 212 429

For personal use only

ASX ANNOUNCEMENT

31 January 2022

The transfer process was officially completed in December and SER has since commenced land access negotiations and begun a review of the geophysical data covering the project. In the current quarter SER seeks to view historical core from previous drilling and further define drill targets with a view of conducting a drill program in 2022.

ISA UNDERCOVER MACHINE LEARNING PROJECT

During the quarter progress continued towards the development of a deep learning-based model to interpret basement geology from geophysical data covering the Canobie and Isa North Project areas. The model seeks to perform lithological interpretations based on the existing geophysics, ultimately to further advance the concept of "live geological interpretation", one that is not static, but rather one that adapts and changes as more data is acquired. The project is set to conclude in the first quarter of 2022 with the outcomes used to refine drill testing methodology over the region.

The Machine Learning Project is part of an ongoing partnership with Caldera Analytics and received co-funding through the Queensland Government Collaboration Exploration Initiative.3

EAST TENNANT COPPER-GOLD PROJECT

NORTHERN TERRITORY (SER 100%)

• Drill results confirm no significant intercepts returned at the Cottage Prospect
• Exploration Licence Application covering Government drill hole NDIBK09 awarded to SER

During the last quarter, SER completed a single inclined diamond drill hole designed to test a pipe like feature evidenced in gravity modelling at the Cottage Prospect within the East Tennant Copper- Gold Project.

The drill target, "Cottage", located on EL32617, was selected following the identification of a regionally significant gravity and magnetic feature during our extensive review of the emerging East Tennant Iron Oxide Copper-Gold (IOCG) province. The prospectivity of the region was later confirmed by results from the MinEx CRC National Drilling Initiative campaign in 2021.

On-site logging of core undertaken during the drill program suggested that a major mineralising system was not intersected which was confirmed during the quarter with geochemical results confirming no significant mineralised intersections. While these results are disappointing, we are encouraged by neighbouring explorers which are targeting similar amplitude gravity and magnetic anomalies to better understand and refine our exploration model. In the coming year, alternative geophysical techniques will be investigated including ground based Induced Polarisation (IP) as a means of locating disseminated sulphides that may be associated with a gravity and/or magnetic high.

Towards the end of the quarter SER was deemed the successful applicant for Exploration Licence EL32809 which encompasses the previously reported MinEx CRC drill hole NDIBK09 (Fig 4.). The four blocks adjoining SER's EL32306 were awarded via a competitive application process with Newcrest securing EL32810 immediately to the south-west. The application will now proceed to grant.

3business.qld.gov.au/industries/mining-energy-water/resources/geoscience-information/exploration-incentives/exploration-grants

strategicenergy.com.au

Level 4, 100 Albert Road, South Melbourne VIC 3205

ACN: 051 212 429