Auric Mining : Positive Scoping Study for Jeffreys Find Project

ASX Announcement

11 July 2022

ASX: AWJ | ACN 635 470 843

auricmining

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Positive Scoping Study for Jeffreys Find Project

Auric Mining Limited (ASX: AWJ) (Auric or the Company) is pleased to announce the completion of a Scoping Study for open-pit mining and third-party toll treatment of the Jeffreys Find gold deposit. The Jeffreys Find Project is located 45km northeast of Norseman in Western Australia.

The positive results of this Scoping Study justify further work to refine material inputs and enhance project economics for the Jeffreys Find gold deposit.

Cautionary Statements

The Scoping Study referred to in this announcement has been undertaken to determine the viability of open pit mining and third-party toll treatment of the Jeffreys Find gold deposit within the Jeffreys Find Project (the 'Project'). It is a preliminary technical and economic study of the potential viability of the Project. It is based on low level technical and economic assessments that are not sufficient to support estimation of ore reserves. Further evaluation work and appropriate studies are required before Auric will be in a position to estimate any ore reserves or to provide any assurance of an economic development case.

The Scoping Study is based on the material assumptions outlined below. These include the availability of funding. While Auric considers all of the material assumptions to be based on reasonable grounds, there is no certainty that they will prove to be correct or that the range of outcomes indicated by the Scoping Study will be achieved.

To achieve the outcomes indicated in this study funding of the order of $7 million will likely be required. Investors should note that there is no certainty that Auric will be able to raise working capital when needed. It is also possible working capital may only be available on terms that may be dilutive to or otherwise effect the value of Auric's shares.

It is also possible that Auric could pursue other 'value realisation' strategies such as a sale, partial sale or joint venture of the Project. If it does, this could materially reduce Auric's proportionate ownership of the Project.

Given the uncertainties involved, investors should not make any investment decisions based solely on the results of the Scoping Study.

Auric's Managing Director Mark English commented "The Scoping Study highlights the potential of the Jeffreys Find Project to generate attractive profit margins and accumulate cash surpluses at current gold prices. We continue to add value to our properties through exploration and development and carefully considered acquisitions."

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[phone] | [e-mail] | Level 1, 1 Tully Road, East Perth, WA 6004 | www.auricmining.com.au

ASX Announcement 11 July 2022	Auric Mining Limited (ACN 635 470 843)

Auric Tenement Locations

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Figure 1. Auric's projects in the Widgiemooltha-Norseman area, including the Jeffreys Find Project.

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ASX Announcement 11 July 2022	Auric Mining Limited (ACN 635 470 843)

Scoping Study Highlights

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• Two processing options were considered. The first of these is located 110km from Jeffreys Find and the second is 230km from Jeffreys Find.
• Both processing options provide positive study outcomes whilst the shorter distance would clearly be the preferred option.
• At a gold price of AUD$2,600/oz, the Production Target for the Project, representing the two processing options is approximately 385kt at 1.6g/t to 550kt at 1.5g/t, producing between 18.9koz and 24.7koz gold.
• This generates an undiscounted accumulated cash surplus after payment of all working capital costs, but excluding pre-mining capital requirements, of between approximately $9.7M and $16.7M.
• Pre-miningcapital and start-up costs are estimated to be approximately $0.7M to $1.5M.
• Working capital requirements of between approximately $3.8M and $7.9M were estimated based on a Stage 1 starter pit design which would have a mine life of less than 3 months.
• The starter pit is estimated to generate an undiscounted accumulated cash surplus after payment of all working capital costs, but excluding pre-mining capital and start-up costs, of approximately $4.1M to $8.4M.

Executive Summary

Auric commissioned Minecomp Pty Ltd, a Kalgoorlie based consulting firm with extensive experience evaluating mining projects in the Eastern Goldfields, to undertake a Scoping Study evaluating potential open pit mining at Jeffreys Find and ore processing via toll treatment at existing plants.

Two third party toll treatment ore processing options were considered. The first is located approximately 110km from Jeffreys Find and the second, 230km from Jeffreys Find.

Minecomp's study included generating optimal pits and a Stage 1 starter Pit design utilising Whittle 4D pit optimisation software and Surpac mine planning software. The study is based on the September 2020 FSSI MIK recoverable resource model described in an announcement to the ASX on 2 March 20211. The resource model was prepared by a competent person in accordance with the 2012 JORC code and includes estimates classified as Indicated and Inferred.

A cutoff grade of 0.6g/t was used for pit optimization. The total Indicated and Inferred gold resource estimate at a 0.6g/t cut-off is 1.06Mt @ 1.31g/t for 44.6 koz gold. This is a recoverable resource estimate, including both mining waste and dilution.

Based upon the resource estimate model, slope parameters and the cost structure applied, the Production Target for the first processing option, ie, the approximately 110km haulage option to a toll treatment facility at an assumed AUD$2,600 per ounce gold price is approximately:

550kt at 1.5g/t for 24.7koz gold recovered and an undiscounted accumulated

cash surplus of $16.7M

Applying the same parameters to the second processing option, the Production Target for the first processing option, ie, the approximately 230km haulage option to a toll treatment facility at an assumed AUD$2,600 per ounce gold price, the Production Target is approximately:

385kt at 1.6g/t for 18.9koz gold recovered and an undiscounted accumulated

cash surplus of $9.7M

1 (ASX;AWJ) 2 March 2021; Auric Mining Limited Resources Summary and Exploration Update

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ASX Announcement 11 July 2022	Auric Mining Limited (ACN 635 470 843)

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This provides a range of potential outcomes based on sensitivity to haulage costs. The study also included outcomes based on a range of gold prices from AUD$2,000 per ounce to AUD$3,200 per ounce with positive outcomes achieved for both haulage options across the full range of gold prices.

Approximately 90% of the total Production Target resulting from the Scoping Study is based on Indicated Resources, and approximately 10% is based on Inferred Resources. There is a low level of geological confidence in Inferred Resources and there is no certainty that further drilling will result in the determination of Measured or Indicated Resources or that the Production Target will be realised. Although some of the Inferred resource occurs at shallow depths, there is sufficient, easily mined and readily accessible Indicated resource within the optimum shell to enable the impact of any Inferred resource to be insignificant. Inferred resources do not feature as a significant proportion early in the conceptual mine plan. The Inferred mineral resources contributing to the Production Targets are not the determining factors in project viability.

No allowance was made for capital or start-up costs in the optimisation analysis. The capital and start-up costs are comprised of the costs associated with, but not limited to mobilisation, site establishment, pre-mining earthworks, access and haulage road and demobilisation. These costs have been estimated for the purposes of the Scoping Study at approximately $1.1M and are quoted as a range from $0.7M to $1.5M. To reflect the accuracy of cost parameters used in the study which is considered to be +/- 35%.

To estimate working capital requirements, an approach was taken to produce a starter pit design which was evaluated using costs applicable to the shorter haulage option with the total operating costs less the processing costs allocated as working capital. This Stage 1 pit is estimated to have a mine life of less than 3 months.

Based upon this approach the total working capital requirements were estimated to be approximately $5.9M which is quoted as a range from $3.8M to $7.9M to reflect the limited accuracy of cost parameters used in the study.

To achieve the range of outcomes indicated in the Scoping Study, funding of the order of $7M ($4.6M to $9.5M) will likely be required for capital, start-up costs and working capital requirements.

Material Assumptions and Modifying Factors

The Scoping Study, and Production Targets derived from the study are based on the material assumptions and modifying factors described in the following notes and in the appended JORC (2012) Table 1. Auric's evaluation of the Project is at an early stage, and although there are reasonable grounds for these assumptions, they represent low level technical assessments that are not sufficient to support the estimation of Ore Reserves, or to provide assurance of an economic development case at this stage, or to provide certainty that the conclusions of the Scoping Study will be realised.

Material assumptions and modifying factors underpinning the Scoping Study comprise the following:

• The Multiple Indicator Kriged (MIK) resource estimate model was provided by FSS International Consultants (Australia) Pty Ltd. At a 0.6g/t cut-off, the resource estimate was:

Cut-off	Resource	Tonnes	Au	Au
(Au g/t)	Category	(million)	(g/t)	(koz)
	Indicated	0.82	1.35	35.6
0.6	Inferred	0.24	1.20	9.3
	Total	1.06	1.31	44.6

Table 1. Jeffreys Find - September 2020 Mineral Resource Estimate at 0.6g/t cut-off.

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[phone] | [e-mail] | Level 1, 1 Tully Road, East Perth, WA 6004 | www.auricmining.com.au

ASX Announcement 11 July 2022	Auric Mining Limited (ACN 635 470 843)

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• The resource estimate model is a recoverable resource model and as such, no additional allowances are made for mining dilution and ore loss.
• Bulk densities were determined by pycnometer testing on pulped samples and water displacement method on outcrop samples and RC percussion chips. The bulk densities as incorporated into the supplied resource estimate model were:

Regolith	Bulk Density
Oxidised	2.8
Fresh	3.0

Table 2. Jeffreys Find - Bulk Densities.

• The gold price of AUD $2,600/oz was selected for the base case by Auric with reference to the gold price through May-June 2022. Sensitivity to gold price was assessed by evaluating the Mineral Resource for a gold price range of between AUD$2,000/oz and AUD$3,200/oz in $100 increments.
• The study includes the Western Australian State Government royalty of 2.5% of revenue applied to gold production in the state. No other royalties apply to Jeffreys Find.
• The Scoping Study incorporates a metallurgical recovery of 94% for oxidised material and 90% for fresh. These figures are based upon metallurgical test work completed for Auric by Upside Metallurgy and announced to the ASX on 6 May 20222.
• No allowances have been made for capital or start-up costs in the optimisation analysis. The capital and start-up cost are comprised of but not limited to the costs associated with mobilisation, site establishment, pre-mining earthworks, access and haulage road construction and demobilisation. These costs were estimated by Minecomp, on the basis of considerable current experience in the region and first-pass evaluations of the specific requirements for Jeffreys Find. The haul road construction forms a substantial component of the costs and is required to link Jeffreys Find to the Eyre Highway, a distance of 14.4km.
• Working capital costs were estimated from the combined mining, grade control and haulage costs for the Stage 1 design pit on the basis of the Scoping Study operating costs for the shorter ore haulage option and September 2020 resource model.
• Operating mining costs, including grade control costs are based on Minecomp's cost database for comparable projects reflecting extensive recent experience of comparable projects. They reflect conventional truck and excavator open pit mining, utilising nominally Caterpillar 777 (approximately 90 tonne capacity) dump trucks and associated ancillary equipment.
• No minimum mining widths were applied, however, the resource model assumes a 5m minimum width.
• Overall wall angles were assigned based on initial recommendations from a geotechnical engineer who undertook a preliminary review of the available drill core, and perceived ramp geometries and configurations applicable to the assumed mining equipment. Further geotechnical investigations are required and will be undertaken as study work progresses.
• Haulage costs reflect approximate costs of ore cartage from Jeffreys Find to processing plants located approximately 110km and 230km from Jeffreys Find along existing roads after exit onto the Eyre Highway.

2 (ASX: AWJ) 6 May 2022; Jeffreys Find Metallurgical Testwork Defines Excellent Characteristics for Conventional CIL Processing

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[phone] | [e-mail] | Level 1, 1 Tully Road, East Perth, WA 6004 | www.auricmining.com.au