Australian Mines : Nickel and cobalt exploration commences at Sconi Project

22 April 2022

Australian Securities Exchange 20 Bridge Street

Sydney NSW 2000

ASX RELEASE

Australian Mines seeks to enhance commercial potential of the Sconi Project with additional nickel and cobalt exploration

Australian Mines Limited ("Australian Mines" or "the Company") is pleased to announce the commencement of an additional exploration program across its Sconi Nickel-Cobalt-Scandium Project (Sconi) in North Queensland, Australia.

The additional exploration program is intended to complement the existing resource at the Sconi Project set out in Table 1 of this report.

The exploration program encompasses fourteen targets (see Table 2 of this report)1, which are being investigated for their potential nickel and cobalt mineralisation, in the first instance via surface soil and rock sampling, field portable XRF geochemical analysis and geological mapping.

The results of the current program will be used to plan the next phase of exploration at the Sconi Project, which is intended to include a reconnaissance drilling program of priority targets. Further infill and extensional drilling phases may then follow, which would be designed to increase confidence in the grade and volume.

Australian Mines entered into a binding long form offtake agreement ("Offtake Agreement") with LG Energy Solution (LGES) for mixed nickel-cobalt hydroxide precipitate sourced from Sconi in August 20212.

1 Australian Mines Limited, Additional nickel and cobalt targets identified at Sconi Project, North Queensland (ASX: 15 May 2020)

2 Australian Mines Limited,Binding offtake agreement signed with LG Energy Solution (ASX: 16 August 2021) The single condition precedent in the Agreement, states that Australian Mines is to secure financing for construction of the Sconi Project by 30 June 2022 (or such later date as the parties may agree). Australian Mines is progressing financing discussions under the sole condition precedent to the Off-take Agreement and will update the market concerning this in line with its continuous disclosure obligations.

1

During the initial 6-year term of the offtake agreement LGES has agreed to purchase 71,000 dry metric tonnes (DMT) of nickel and 7,000 DMT of cobalt.

The additional exploration activities being undertaken at Sconi may result in an upward revision of the project's mineral resource estimates (see Table 1 of this report) and the project life span3, with the potential to enhance the longer-term commercial potential of Sconi4.

ENDS

For more information, please contact:

David Loch

Investor Relations Manager Australian Mines Limited [phone]

Authorised for release by the Board of Directors of Australian Mines Limited

Australian Mines Limited supports the vision of a world where the mining industry respects the human rights and aspirations of affected communities, provides safe, healthy, and supportive workplaces, minimises harm to the environment, and leaves positive legacies.

3 The information outlined on this page was previously released to the market by Australian Mines via the ASX platform on 13 June 2019. Australian Mines confirms in the subsequent public report that all the material assumptions underpinning the forecast financial information derived from a production target, in the initial public report referred to in rule 5.17 continues to apply and have not materially changed.

4 Australian Mines Limited,Sconi to generate $5 billion in free cashflow (ASX: 13 June 2019)

Appendix 1: Sconi Project figures, tables, and images

Figure 1: Nickel and cobalt exploration target areas located within the Sconi Project as identified by independent studies5.

5 Australian Mines Limited, Additional nickel and cobalt targets identified at Sconi Project, North Queensland (ASX: 15 May 2020).

Figure 2: Greenvale and Lucknow Prospects - Interpreted potential nickel and cobalt laterite and untested targets within Australian Mines' existing Sconi Project6.

6 Australian Mines Limited, Additional nickel and cobalt targets identified at Sconi Project, North Queensland (ASX: 15 May 2020).

Figure 3: Kokomo Prospects - Interpreted potential nickel and cobalt laterite and untested targets within Australian Mines' existing Sconi Project7.

7 Australian Mines Limited, Additional nickel and cobalt targets identified at Sconi Project, North Queensland (ASX: 15 May 2020).