Avira Resources : AVW ACQUIRES THE OPTION TO PURCHASE LITHIUM PROSPECT

For personal use only

16 February 2022

The Manager

Market Announcements Office

Level 40, Central Park

152-158 St Georges Terrace

PERTH, WA 6000

AVIRA RESOURCES ACQUIRES THE OPTION TO PURCHASE LITHIUM

PROSPECT

LOCATED IN REGION CONSIDERED TO BE A LITHIUM HOTSPOT

Highlights

• The Yule River Lithium Prospect is situated in close proximity (~5kms) to the Albermale/Mineral Resources owned Wodgina Lithium deposit.
• The prospect consists of 3-blocks (ELA45/5770) covering an area of 9.5km2. The tenement hosts the same rock types as the Wodgina Lithium Deposit.

• This region is considered to be highly prospective for Lithium with neighbouring, significant landholders in the region including ALB (Albermarle), PLS (Pilbara Minerals Ltd), FMG (Fortescue Metals Group Ltd).

• High grade rock chips up to (MINEDEX: Stannum/Metalicity): 2.45% Li2O with 127 ppm Ta2O5 and 480 ppm Sn.
• Option to acquire prospect on commercially favourable terms subject to a six-month exclusivity period.
• Placement of AVW fully paid ordinary shares to raise a total of A$2,000,000 to facilitate project exploration and increase working capital reserves.

Avira Resources Limited (ASX: AVW) ("Avira" or "Company") is pleased to announce that it has entered into a binding option agreement with GTT Ventures Pty Ltd ("GTT" or "Vendor") (ACN 601 029 636) granting the Company an option to acquire a 100% interest in licence application ELA45/5770 ("Tenement" or "Yule Project") in the Marble Bar region of Western Australia.

Commenting on the transaction Avira's Executive Director said, "The addition of this Project to the exploration portfolio provides us with a fantastic opportunity to develop a project that is located in a known province for this essential material for the production of Lithium-ionbatteries which in turn occupies an increasingly important position in the renewable energy space."

About the Project

The Yule River Project is situated approximately 120km by road south of Port Hedland, accessed by the Great Northern Hwy, approximately 5km from the Wodgina Lithium Deposit (ALB/MIN: 259.2 Mt

• 1.17% Li2O) and ~30km from the Pilgangoora Lithium Deposit (PLS: 223.2Mt @ 1.27% Li2O) with numerous Li-Ta-Sn deposits located within a 130km radius with other major projects including the

Avira Resources Limited

Suite 9, Level 2, 330 Churchill Avenue Subiaco WA 6008 Australia

1. 61 8 6489 1600 F: 61 8 6489 1601 www.aviraresourcesltd.com.au ABN: 38 131 715 645

For personal use only

Marble Bar (Li) Deposit and the Tabba Tabba (Ta) Deposit. This region is considered to be a Lithium hotspot with neighbouring, significant landholders in the region including ALB (Albermarle), PLS (Pilbara Minerals Ltd), FMG (Fortescue Metals Group Ltd) & ESS (Essential Metals Ltd) (Figure 1).

ELA45/5770 consists of 3-blocks covering an area of 9.5km2. The tenement hosts the same rock types as the Wodgina Lithium Deposit and is along-strike from numerous MINEDEX Li-Ta prospects and occurrences (Figure 3). 10 MINEDEX occurrences located within the tenement boundary. Only 11 historical RC drill holes (1,011m) and 199 geochemical samples completed.

High grade rock chips up to (MINEDEX: Stannum/Metalicity): 2.45% Li2O with 127 ppm Ta2O5 and 480 ppm Sn.

Figure 1. Location of the Yule River Project (ELA45/5770) in relation to mines and emerging

prospects.

The Yule Project is currently undergoing compilation and re-assessment of previous WAMEX data, complemented by a planned field reconnaissance trip to ground truth identified access and assess the pegmatite dyke orientations and general considerations of undertaking a drilling campaign in this region. Secondary assessments of the mapping completed by previous explorers will look for priority areas within the host lithologies within the tenure.

The planned field trip to the Yule River Project is to be undertaken in March 2022 and is focussed on determining appropriate access and field checking prospective structures and non-magnetic signatures observed in open-source government data.

Avira Resources Limited Suite 9, Level 2, 330 Churchill Avenue Subiaco WA 6008 Australia

1. 61 8 6489 1600 F: 61 8 6489 1601 www.aviraresourcesltd.com.au ABN: 38 131 715 645

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A closer assessment of magnetically low areas within the Honeyeater Basalt (figure2) will be made to determine the width of LCT (lithium-ceasium-tantalum) pegmatite dyke swarms and potential for coalescence at depth within the mapped pegmatites.

Extensive rock chips were collected by previous explorers and two of the identified Li anomalous zones have not been tested by drilling. These may be similar to the already drill tested Tria prospect which has an anomalous drill hole intercept of 22 m at 0.18% Li2O including 2 m at 0.46% Li2O (WAMEX A115322) within the magnetically low zone. The highest grade rock chip at the Duus prospect is also inadequately tested by drilling.

Figure 2: Local Geology and magnetics of the Yule River Tenement ELA45/5770 - note Honeyeater

Basalt with patchy magnetic signal similar to Wodgina.

Field traverses following up 0.11% Cs2O rock chips at the Stannum prospect and two anomalous zones of rock chips (red circles in figure 3) in the south of the tenement application will be primary reconnaissance activities. At the Tria prospect apparently shallow dipping LCT pegmatites were encountered below weakly anomalous surface samples. Stacked pegmatites are known to occur in the Wodgina and Pilgangoora deposits and an assessment of likely dips in the outcrops will be routinely collected in the target areas. More broadly the system is anomalous for Tin (Sn), Tantalum (Ta), Niobium (Nb) and weak anomalism in Rubidium (Rb). Bedrock may contain areas of enrichment in these elements with small alluvial shows of Sn and Ta recorded by previous explorers.

Avira Resources Limited Suite 9, Level 2, 330 Churchill Avenue Subiaco WA 6008 Australia

1. 61 8 6489 1600 F: 61 8 6489 1601 www.aviraresourcesltd.com.au ABN: 38 131 715 645

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Figure 3: Geochemical rock chip anomalism (untested top quartile values in red) over 40m TMI

magnetics ELA45/5770, drillholes in white (enclosing purple diamond)

Avira Resources Limited

Suite 9, Level 2, 330 Churchill Avenue Subiaco WA 6008 Australia

T: 61 8 6489 1600 F: 61 8 6489 1601 www.aviraresourcesltd.com.au

ABN: 38 131 715 645

Terms of Option and Acquisition

For personal use only

As set out above, Avira has entered into an agreement with GTT Ventures Pty Ltd pursuant to which GTT has granted an option to Avira ("Option") to purchase exploration licence application ELA 45/5770 in the Marble Bar region of Western Australia ("Option Agreement"). The proposed key terms and conditions of the Option Agreement are set out below:

Option Period

• The Option expires on the date that is six (6) months following the date of execution of the Option Agreement.
• In the event that ELA 45/5770 has not been granted by this date, the option period shall be automatically extended by a further six (6) months.

Conditions Precedent

The Option Agreement and the obligation of the parties to complete the sale and purchase of the Tenement is subject to and conditional upon:

• exercise of the Option by the Company as the purchaser;
• the Company having received all necessary shareholder approvals required in order to give effect to Settlement, including the issue of the Consideration Shares and Performance Shares and any other approvals required under the Corporations Act or the ASX Listing Rules (including under item 7 of section 611 of the Corporations Act to the extent required);
• the execution of a final form Heritage Agreement by GTT and Kariyarra Aboriginal Corporation;
• the Company and GTT using best endeavours to execute the required documents to enforce the 1% Net Smelter Royalty over all minerals extracted from ELA 45/5770. If the parties are unable to agree on terms within 2 months of the Execution Date, the parties agree to revert to the Energy & Resources Law Association (formerly AMPLA) standard form Minerals Royalty Agreement to enforce the Net Smelter Royalty; and
• the Company undertaking a capital raising at an issue price of $0.005 ("Raising"), which GTT or its nominee has a firm allocation of the greater of $1,000,000 or 50% of the Raising, within three
  (3) days of the execution date of the Option Agreement.

Consideration

• Option (exclusivity) Fee - a non-refundable cash payment of $150,000, payable on execution of the Option Agreement ("Option Fee").
• Option Exercise Fee - on exercise of the option will incur a fee of:
• • Cash consideration of $1,000,000; or
  • Equity based consideration of $1,000,000 in the capital of Avira fully paid ordinary shares ("Shares") with the issue price of the Shares calculated at the higher of $0.005 and a 10% discount to the 20-day VWAP payable upon the date of exercise of the Option by Avira and subject to approval at the Company's next general meeting of shareholders.

About the capital raising

The Company is also pleased to announce that it has received firm commitments from sophisticated and professional investors to subscribe for 400 million Shares at $0.005 per Share to raise $2,000,000 ("Placement" or "Raising") before costs.

Funds raised via the Placement will be applied to progressing the development of the existing and new exploration projects held by the Company, business development and for general working

Avira Resources Limited

Suite 9, Level 2, 330 Churchill Avenue Subiaco WA 6008 Australia

1. 61 8 6489 1600 F: 61 8 6489 1601 www.aviraresourcesltd.com.au ABN: 38 131 715 645