Arcadia Minerals : Quarterly Activities/Appendix 5B Cash Flow Report

ASX RELEASE| 29 JULY 2022

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QUARTERLY ACTIVITIES REPORT - JUNE QUARTER 2022

Arcadia Minerals Limited (ASX:AM7, FRA:8OH) (Arcadia, AM7 or the Company), the diversified exploration company targeting a suite of battery metal projects aimed at Lithium, Tantalum, Nickel, Copper and Gold in Namibia, is pleased to provide its quarterly activities report for the period ending June 2022.

HIGHLIGHTS

• Bitterwasser Lithium Project: Final assay results for remaining 32 of the 64 holes drilled over the Eden Pan on a 500m grid received
• Bitterwasser Lithium Project: Regional investigation into Bitterwasser Lithium-in-clay and Lithium-in-brines minerals system defined extensive tectonic rift-related fault structures in a closed basin (the Kalkrand half-graben), similar to Clayton Valley in Nevada1
• Kum-KumNickel Project: Historical core samples obtained during investigation were sampled and returned the first known record of PGE and Au mineralisation in the ultramafic units of the Tantalite Valley Complex. The best results indicated mineralisation of2:
  o 0.71% Ni, 0.28% Cu, 0.84 g/t Pd and 0.4 g/t Pt in orthopyroxenite
  o 0.58% Ni, 0.30% Cu, 0.69 g/t Pd, 0.31 g/t Pt and 0.26% Au in orthopyroxenite
• Swanson Tantalum Project: Mineral Resource update delivers an estimate for a total indicated and inferred resource of 2.59Mt (an increase of 115%) at an average grade of 486 ppm Ta2O5 (an increase of 17.9%), 73 ppm Nb2O5 and 0.15 % Li2O.3 An Environmental Clearance Certificate and Mining Licence was also issued for the project.

1. Refer to ASX Announcement dated 09 May 2022 titled "Regional study advances work program for district scale Lithium in brines"
2. Refer to ASX Announcement dated 09 May 2022 titled "Kum-kumnickel project mineral systems approach results"
3. Refer to ASX Announcement dated 06 May 2022 titled "JORC Mineral Resource at Swanson Tantalum project doubles in size"

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ASX RELEASE| 29 JULY 2022

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SUMMARY OF MINING EXPLORATION FOR THE QUARTER

Bitterwasser Lithium Project

Assay results for the outstanding 32 drill holes from the 64-holefollow-up auger drilling campaign completed on 9 February 20224 over the Eden Pan was received during the quarter. All the drill holes commenced in the mineralised Upper Brown Clay Unit and every hole, except two drill holes where thin clay units were intercepted at the edges of the Eden Pan, were sampled from top to bottom up to a depth of 9.60m. Notably, the entire sequence of the drill holes sampled (i.e. Upper Brown Clay Unit and Middle Green Glay Unit) returned lithium mineralisation5.

The Middle Green Clay Unit, lithologically named the Middle-Unit (MU), comprises the dominant lithological unit from which the maiden Mineral Resource6 was derived. This green clay unit was intersected in 18 of the 32 drill holes from which assay results were received and extended from a depth of 1.4 m below surface to the maximum End-of-Hole (EOH) depth of 9.60m. A total of 43 holes from the 64-holefollow-up auger drilling campaign intersected the Middle Green Clay Unit at similar depths.

Figure1: Stacked cross section of the Eden Pan depicting drill-hole interpretation with reference to the existing

Mineral Resource (green layers) and clay units intercepted in the follow-up auger drilling program.

1. Refer to ASX Announcement dated 10 March 2022 titled "Encouraging lithium drilling assay results at Bitterwasser".
2. Refer to ASX Announcement dated 2 May 2022 titled "Final Lithium Drilling assay results at Bitterwasser".
3. Refer to ASX Announcement dated 3 November 2021 titled "Arcadia acquires lithium project with JORC Mineral Resources".

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As expected, the best individual drillhole intersections for the high-grade Middle Green Clay Unit were located in the centre of the pan. These results are:

• BMC33: From 4.8 to 9.4 m, 4.6 m @ 811 ppm Li
• BMC32: From 3.8 to 6.6 m, 2.8 m @ 796 ppm Li
• BMC28: From 4.2 to 9.4 m, 5.2 m @ 760 ppm Li
• BMC36: From 3.4 to 5.6 m. 2.2 m @ 744 ppm Li

A regional investigation into its Bitterwasser Lithium Project (Bitterwasser Project) indicated the potential presence of a large-scalelithium-in-clay and lithium-in-brinesminerals-system, arising from underlying lithium bearing basement rocks activated through geothermal activity and fed into sedimentary-clay environments and sub-terranean brine aquifers via deep- seated fault structures (Bitterwasser System).

The comprehensive review of academic literature, which can be reviewed in annexure one of the Company's announcement styled Regional study advances work program for district scale Lithium in brines dated 9 May 2022, and recent exploration undertakings (including drilling) have refined Arcadia's understanding of the Bitterwasser Basin, including the likely source rocks of Lithium mineralisation and the role known geothermal activity in the area plays in the deposition of mineralisation.

Kum-Kum Nickel & PGE Project

Results from the Mineral Systems Approach results, which commenced in August 2021, were received during the quarter and announced on 9 May 2022.

The Tantalite Valley Complex (TVC) has been subject to a geological study involving various field sampling campaigns (94 field samples collected) augmented with detailed consideration of historical drill core segments (57 samples), and supporting data from historical records, hyperspectral mapping, and stream sediment sampling. Collected field- and core- samples were subjected to a suite of analytical protocols including reflected and transmitted-light optical petrography, whole-rock major and trace element chemistry, precious metal assays, sulphur isotope analyses, scanning electron microscopy with associated spectrometry and in- situ Laser Ablation Inductively Coupled Plasma Mass Spectrometry (LA-ICP-MS) of individual sulphide grains. Together, these results provide novel insights into the known mineralisation and prospectively of the TVC.

The TVC is a ~7 km long by 3.3 km wide and roughly oval-shapedmafic-ultramafic complex representing a fault-bound block inside a dextral Pofadder Shear Zone (PSZ) that cuts across southern Namibia. Existing geochronology places the TVC as a ~1.2 Ga intrusion (P. Macey,

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pers. comm.) and roughly coeval with a Kum Kum Klippe mafic complex that is located roughly 40 km south-east and along the strike of the PSZ. Whole rock geochemistry highlights the geochemical similarities between the TVC and the Kum Kum suite, but with the former uniquely showing much stronger geochemical evidence for overwhelmingly cumulate rocks. This implies that the TVC crystallized as a significant mafic/ultramafic layered intrusion and likely from a primitive mantle-derived parental magma that originated from a metasomatized mantle.

The TVC can be broadly divided into a predominantly mafic north-western (NW) and mafic- ultramafic south-eastern (SE) half. As detailed in Appendix A, an otherwise structurally obscure NW-half displays gently NNW-dipping melanocratic layers in its westernmost parts and comprises of variably amphibolitized gabbroic cumulates with conspicuous macropoikilitic textures. More pristine igneous lithologies include (olivine) gabbronorites and troctolites, with a non-cumulate and potential chilled margin sampled along its northern edge. Another potential chilled margin was sampled from a proposed Marginal Zone to the SE-half and juxta positioned to country rock hornfelses. Adopting a Skaergaard nomenclature, the better mapped SE-half is interpreted as made up of the aforementioned outer and heterogeneously pegmitatoidal Marginal Zone, inside which a conspicuous concentric zone of sub-vertically banded (to locally mottled) leucogabbroic rocks are tentatively interpreted as a marginal Border Zone around a more central Layered Series (much like the famous intrusion). The presumed basal part of the proposed Layered Series is dominated by ultramafic cumulate layers, which, according to field samples, are mainly dunitic, but judged from dumped drill core samples, also include more mineralized and orthopyroxenitic orthcumulates. While past interpretations leaned more towards a concentrically zoned Alaskan Type intrusion, field work and drill core logs provide evidence for a more rhythmically layered mafic-ultramafic sequence, which is thought to be dipping steeply towards the west. This ultramafic base is thought to transition into a purely gabbroic Middle Zone, the conspicuous contact of which is consistent with a 70°W dip, all the while that it is still unclear how this layering (of obvious cumulate rocks) extends into a north-western Upper Zone, or if the TVC's NW-half constitutes a separate intrusion of its own. While further field work is required to properly resolve this, it seems more plausible for the TVC to represent a single, coherent layered intrusion, with a current surface area of 18.7 km2 (most of which is made up of cumulates). The more important stratigraphical thickness of these cumulates and even magma chamber volume estimates are much more difficult to constrain. Especially, since much of the internal structure of the TVC is largely unknown and likely deformed.

The TVC hosts two main categories of sulphides, viz primary magmatic sulphides, hosted by an orthopyroxenite, as well as secondary (or hydrothermal) sulphides inside amphibolitised

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host rocks and typically found near shear zones (including the intrusion's sheared contacts). The latter remobilized category only hosts sub-economic Cu (<0.29 wt.%) and minor Ni (<0.17 wt.%), while Pd+Pt values never exceed 0.15 ppm. Texturally, this assemblage comprises of predominantly pyrite, with later paragenetic rims of chalcopyrite + magnetite and ilmenite. In contrast, the primary magmatic sulphides comprise of pyrrhotite + pentlandite + chalcopyrite, with the best assay results measured for a 10-15 cm long split core, with 0.28% Cu, 0.71% Ni and 1.24 ppm Pd+Pt.

Importantly, the above stated assay values and corroborating Scanning Electron Microscope analyses constitute the first records of PGE and Au (max. Au assay value = 0.26 ppm) in the TVC. Using recent metal prices, their presence adds significantly (~24 %) to the in-ground value of the mineral assemblage. Sulphur isotopes indicate that the magmatic sulphides carry a mantle signal and no contamination by crustal Sulphur. Further, various in situ and whole rock geochemical proxies enable the calculation of an R factor, which represents the degree to which an immiscible sulphide melt interacted with a silicate magma chamber to obtain its precious metal signatures. The R factor for the TVC is estimated to be between 800 and 3000, which plots towards the high end for Ni-Cu deposits, but towards the low end for world-class PGE deposits.

Following an established relationship between Ni and total PGE, as well as well as these being hosted within a relatively unique orthopyroxenitic orthocumulate, this most mineralized target layer within the ultramafic units of the south-eastern TVC is suspected to have been intersected by historical boreholes TV03, N01, and PW01. These intersection depths range between 150 and 250 m below surface and likely coincide with at a pyroxenite-troctolite contact. Further targeting of this most interesting horizon should endeavour to discern the dip, strike and true thickness of the mineralized layer, whether it outcrops at surface, the degree to which it has been affected by post-magmatic processes (e.g., amphibolitisation), and its lateral and vertical (i.e., within unit) grade variability. Superficial insights that have implications for the metallurgical properties of the mineralisation are detailed as the results of a preliminary scanning electron microscopy study of the precious metal minerals.

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