Sunrise Energy Metals : Exploration Update

ASX Announcement

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20 January 2022

Exploration Update

MELBOURNE, Australia - Sam Riggall, CEO and Managing Director of Sunrise Energy Metals Limited (Sunrise Energy Metals or Company) (ASX:SRL and OTC:SREMF) is pleased to provide an update on exploration drilling activities at the Sunrise East and Phoenix Platinum prospects.

Sunrise East:

• The first two diamond drill holes completed at Sunrise East (SDD029 and SDD030) intersected a cobalt-bearing laterite zone in ultramafic rocks and porphyry-style alteration associated with more evolved mafic to felsic intrusions.
• Hole SDD029 returned 5.8m @ 1120 ppm cobalt near surface with encouraging grades of nickel, scandium and platinum in the oxide zone. Hole SDD030 intersected multiple mafic to felsic intrusive phases with encouraging minor copper mineralisation and wide intervals of porphyry-style red rock alteration.
• A third diamond drill hole (SDD031) is currently underway with gold, platinum and multi- element assays, petrography and age dating studies in progress on the first two holes.
• An application has been submitted for a follow up 53-hole RC drill program to test the extent of further cobalt and nickel mineralisation at Sunrise East.

Phoenix Platinum:

• The Phase 2 diamond drill holes completed at Phoenix Platinum Prospect intersected multiple intervals of platinum mineralisation, though platinum grades are lower than previous bonanza grades intersected in the Phase 1 drill program (for further details see ASX announcement dated 22 June 2021). Work on understanding controls to mineralisation is continuing.

CEO, Sam Riggall stated: "The Company's growing exploration portfolio continues to offer exciting opportunities which we will continue to progress. Our exploration activities remain focussed on expanding our understanding of the geological potential of our broader tenement package, ensuring that we can maximise the potential from our core activity which remains progressing the Sunrise Battery Materials Project into production."

Sunrise Energy Metals Limited (ACN 127 457 916)
L6, 350 Collins St, Melbourne VIC 3000
T [phone]
[e-mail] | sunriseem.com	ASX Announcement

SUNRISE EAST (EL4753)

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EL4573 is located to the east and west of the Sunrise project ML1770 (see Figure 1). Sunrise Energy Metals reprocessed and modelled airborne magnetics associated with the eastern part of EL4573 which covers a strong discrete magnetic high of dimensions 2.0x1.5km. Preliminary interpretation suggested that the magnetic feature has a high potential to be an intrusive complex with numerous crosscutting zones of magnetic destruction associated with hydrothermal alteration.

Figure 1. Location of EL4573 Sunrise East Drill area and ML1770 Sunrise Project with magnetics TMI-RTP

(source Geological Survey New South Wales).

The first hole at Sunrise East (SDD029) targeting a magnetic anomaly intersected laterite and saprolite from surface to a depth of 12.8m before intersecting ultramafic pyroxenite and dunite lithologies (Figure 2). Assay results have been received from the oxide zone and have returned cobalt grades comparable to the Sunrise Project resource. Cobalt intercepts included 11m @829ppm from 1.8 to 12.8m, including 5.8m @ 1120ppm from 7 to 12.8m. The drill hole also intersected a thick interval of strong silica-carbonate-fuchsite-pyrite alteration on the contact of the intrusive and sedimentary country rocks. Base metal sulphides and pyrite were observed throughout this interval and the zone has characteristics typically associated with a carbonate-basemetal-gold system. Assays below the oxide zone are pending.

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Figure 2. Location of completed and planned collars Sunrise East EL4573.

On the strength of the cobalt assay results from SDD029, and the extent of the intrusive complex from magnetic imagery, Sunrise Energy Metals has designed a 53-hole reverse circulation drilling program. This drilling program will test the extent and tenor of cobalt-bearing oxide mineralisation over the western half of the Sunrise East intrusive complex. The drill holes will also be extended into fresh ultramafic rock and will be assayed for platinum group elements.

Cobalt-rich laterite core from Sunrise East SDD029.

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Intercepts

PROSPECT	Hole	From	To	Interval	Co	Ni	Sc	Pt	Pd	Association
(m)	(m)	(m)	ppm	ppm	ppm	ppm	ppm
Sunrise East	SDD029	0	1.35	1.35	200	930	80	0.0545	0.01	Laterite
Sunrise East	SDD029	1.35	1.8	0.45	390	1080	60	0.0716	0.01	Laterite
Sunrise East	SDD029	1.8	2.32	0.52	610	1590	80	0.0786	0.015	Laterite
Sunrise East	SDD029	2.32	3	0.68	1100	1580	80	0.0829	0.015	Laterite
Sunrise East	SDD029	3	4.5	1.5	520	870	90	0.0898	0.022	Laterite
Sunrise East	SDD029	4.5	5	0.5	300	530	140	0.0571	0.029	Laterite
Sunrise East	SDD029	5	6.1	1.1	230	330	150	0.0542	0.026	Laterite
Sunrise East	SDD029	6.1	7	0.9	420	460	330	0.0483	0.02	Laterite
Sunrise East	SDD029	7	7.7	0.7	740	750	440	0.0685	0.026	Laterite
Sunrise East	SDD029	7.7	8.25	0.55	800	1890	340	0.0637	0.021	Laterite
Sunrise East	SDD029	8.25	9.05	0.8	1000	2800	170	0.0777	0.017	Laterite
Sunrise East	SDD029	9.05	9.9	0.85	1100	3110	80	0.121	0.02	Laterite
Sunrise East	SDD029	9.9	10.72	0.82	1120	3220	90	0.121	0.025	Laterite
Sunrise East	SDD029	10.72	11.4	0.68	1430	3560	110	0.0873	0.023	Laterite
Sunrise East	SDD029	11.4	12.12	0.72	1350	4830	90	0.13	0.021	Laterite
Sunrise East	SDD029	12.12	12.8	0.68	1380	4790	140	0.0956	0.028	Laterite

Sunrise East SDD029 Oxide zone assay results from 0-12.8m.

The second diamond drill hole (SDD030) targeted a deeper magnetic anomaly and intersected a multi-phase mafic to felsic intrusive complex with numerous wide intervals of red rock alteration and narrow reddened monzonite and tonalite dykes with minor disseminated and blebby chalcopyrite (see images below). The more evolved characteristics of the rocks intersected in SDD030 indicate that the Sunrise East magnetic feature reflects a zoned Alaskan-style intrusion with the age of rocks likely to be Ordovician and similar to that of the nearby Tout Intrusive Complex which hosts the Sunrise Project. It is interpreted that the numerous reddened dykes, associated with copper mineralisation, are associated with a proximal porphyry phase located at depth or proximal to the drill hole. A strong silica-pyrite alteration zone was intersected at depth within SDD030 and is interpreted to be a deeper intersection of the same alteration zone intersected in SDD029. Initial surface mapping and surface sampling suggests that this alteration zone has a strike extent of over 1000m.

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Sunrise East drill core from SDD030 - highlighting pyrite and minor disseminated chalcopyrite associated

with monzonite dyke.

Porphyry-style red rock alteration intersected in Sunrise East Drill Hole SDD030.

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