Astral Resources NL : Outstanding Metallurgical Test-work further derisks Mandilla

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ASX Announcement

-6 June 2022

OUTSTANDING METALLURGICAL TEST‐ WORK RESULTS CONTINUE TO DE‐RISK MANDILLA

Phase two of the 2022 drilling program is advancing, with AC drilling completed, RC

drilling underway and diamond drilling to commence in July

HIGHLIGHTS

• Metallurgical testwork continues to demonstrate outstanding gold recoveries at coarse grind sizes up to 212µm, further de‐ risking Mandilla and providing a capital and operating cost advantage to process Mandilla ore.
• 10,600 metre air‐ core (AC) drilling program completed during April 2022 focused on in‐ fill drilling to better delineate the higher‐ grade palaeochannel mineralisation at Eos.
• Assay results from the AC drilling program are expected to be released during the current Quarter.
• Reverse circulation (RC) drilling program commenced during April 2022, with 6,450 metres completed to date.
• 4,000 metre diamond drilling program scheduled to commence in July.

Astral Resources' Managing Director Marc Ducler said: "The metallurgical results at Mandilla continue to demonstrate extremely high gold recoveries, fast leach kinetics and low reagent consumptions in both the oxide and fresh rock samples. Even more importantly, Mandilla's metallurgical properties have been demonstrated to be insensitive to a coarsening grind size, which will result in lower capital and operating costs for processing. Given the extent of metallurgical testing to date, this significantly de‐ risks Mandilla.

"In parallel with this test‐ work program, we are continuing to focus on increasing the quality of the Mandilla deposit from both a grade and scale perspective. Mandilla is the largest undeveloped gold deposit in the region, and we strongly believe that growing this deposit will enable the Company to create a regional development opportunity.

"We are currently waiting on the results of the recently completed 10,600 metre AC drilling program at Eos. These results, coupled with those from the current RC and upcoming diamond drilling program, are expected to drive further Mineral Resources growth at Mandilla."

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ASX Announcement

6 June 2022

Astral Resources NL (ASX: AAR) (Astral or the Company) is pleased to report further encouraging results from metallurgical test‐work from its 100%‐owned Mandilla Gold Project (Mandilla or Project), located approximately 70km south of Kalgoorlie, Western Australia (Figure 1).

Figure 1 - Mandilla Project location map

Mandilla is a shear hosted gold deposit situated on the western margin of the Emu Rocks Granite in contact with sediments of the Spargoville Group (Figure 2).

Significant NW to WNW‐trending structures along the western flank of the project are interpreted from aeromagnetic data to cut through the granitic intrusion and may be important in localising mineralisation at Theia, where a mineralised footprint extending over a strike length of more than 1.5km has previously been identified.

A second sub‐parallel structure hosts gold mineralisation at Iris. In this area, a mineralised footprint extending over a strike length of approximately 700 metres has been identified.

At Eos, further to the south‐east, a relatively shallow mineralised palaeochannel has also been identified, amongst other underexplored targets.

Mandilla is covered by existing Mining Leases which are not subject to any third‐party royalties other than the standard WA Government gold royalty.

ASX Announcement

6 June 2022

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Figure 2 - Mandilla local area geology (including significant recent intercepts)

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ASX Announcement

6 June 2022

METALLURGICAL TESTWORK

Metallurgical samples were collected from diamond drill hole MDRCD512. This hole was drilled as an HQ diamond drill‐hole for metallurgical test purposes to a down‐hole depth of 351.71 metres. The primary purpose of the hole was to provide sufficient metallurgical sample to conduct metallurgical test work to:

• confirm crushing and grinding properties;
• confirm gold recovery sensitivity to grind size; and
• determine reagent consumptions from leaching test‐work conducted with saline water recovered from the immediate area.

The results of MDRCD512 were released on 22 February 2022 and included best gold intercepts of:

• 15.05 metres at 1.46g/t Au from 127.1 metres; and
• 45.74 metres at 0.94g/t Au from 149 metres.

Figure 3 below sets out the location of MDRCD512 in plan view. In examining the core, several instances of coarse visible gold were observed (refer to images below).

Figure 3 - Mandilla local area geology showing location of MDRCD512

ASX Announcement

6 June 2022

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Image 1 - Visible gold in MDRCD512 at 75m

Image 2 - Visible gold in MDRCD512 at 326m

The results of the Phase 1 testing were announced on 28 January 2021. Metallurgical composites from MDRCD151, MDRCD228 and MDRCD236 were created and subjected to a standard suite of metallurgical tests.

The Phase 1 testing, which was conducted in Perth tap water, demonstrated very high gold recoveries, fast leach kinetics and low reagent consumptions. They also demonstrated an insensitivity to grind size when coarsening from 75µm to 106µm.

The results from phase 1 are summarised in Table 1 below1.

Table 1 - Phase 1 Metallurgical Testwork

PHASE 1 ‐ MANDILLA GOLD PROJECT TESTWORK PROGRAM ‐ GRAVITY / DIRECT CYANIDE LEACH TESTWORK SUMMARY

							Head Au Grade (g/t)				Au Extraction (%)							Reagents
	Comp ID			Grind Size									Tail Au			(kg/t)
			P80(µm)			Assay			Calc.		% of Assay		Grav			4‐hr			8‐hr			48‐hr			Grade (g/t)			NaCN			Lime
										Grade
	OXIDE	75		0.68		0.92		135%		68.8		96.9		96.9			98.4		0.02		0.32		0.32
	OXIDE	106		0.68		0.96		141%		71.1		96.3		97.0			98.4		0.02		0.21		0.21
	OXIDE	106		0.68		1.35		199%		73.7		95.4		96.5			98.2		0.03		0.25		0.22
	FRESH	75		0.58		1.24		214%		92.6		98.6		99.2			99.2		0.01		0.29		0.24
	FRESH	106		0.58		0.49		84%		71.4		93.0		94.4			95.9		0.02		0.29		0.23
	FRESH	106		0.58		0.92		159%		79.2		94.6		95.4			97.8		0.02		0.25		0.18
	FR VAR 1	106		1.40		0.95		68%		81.6		96.6		96.6			97.4		0.03		0.29		0.29
	FR VAR 2	75		0.23		0.49		213%		80.7		94.6		95.8			95.8		0.03		0.25		0.14
	FR VAR 2	106		0.23		0.92		400%		66.3		94.5		95.5			97.3		0.02		0.23		0.23

1 ‐ Refer to ASX Announcements dated 28 January 2021