Carbine Resources : Maiden Drilling at Muchea West Silica Confirms High Grade

ASX / MEDIA ANNOUNCEMENT

7 April 2022

Maiden Drilling at Muchea West Silica Sand Project

Confirms High Grade Eastern Area

HIGHLIGHTS

Results received from drill program testing the higher grade (99.7% - 99.9% SiO2) Eastern Area

Results confirm the grades from previous drilling, and includes intercepts such as:

MW0077 - 15m @ 99.81% SiO2, 222 ppm Fe2O3 and 154 ppm Al2O3 from 1m

MW0092 - 20m @ 99.69% SiO2, 450 ppm Fe2O3 and 313 ppm Al2O3 from 1m

MW0127 - 17m @ 99.70% SiO2, 350 ppm Fe2O3 and 260 ppm Al2O3 from 1m

MW0142 - 21m @ 99.76% SiO2, 329 ppm Fe2O3 and 310 ppm Al2O3 from 1m 233 holes drilled along existing tracks for 1,892m producing 1,088 samples

Widenbar and Associates engaged to complete maiden Mineral Resource Estimate

Independent Metallurgical Operations to undertake process studies on excess sample material

Program of Work application underway for 2022 drilling program

Carbine Resources Limited (ASX: CRB) (the Company) is pleased to provide results for its maiden drilling program at its 100% owned Muchea West Silica Sands Project, Western Australia (Muchea West, the Project).

Muchea West has the potential to host a substantial, high grade, low impurity silica sand deposit. The potential final processed grade is significant as it meets all the specifications for flat and container glass markets and for foundry glass at the top end of silica sand consumption market and the upper price ranges for these products.

Peter Batten, Managing Director, stated "Carbine is delighted with the results. Carbine believes the quality of the Muchea West Silica Sand Project is exceptional and these results confirm that. This is not a matter of discovering sufficient material for a commercial operation, but more selecting the first development location and defining the product within that location.

"The overall size and quality of the Muchea sand dune system ranks highly in the silica sand market".

Carbine's first drilling program at Muchea West since acquisition of the Project in July 2021 has succeeded in meeting all expectations of:

advancing the information available at the time of acquisition; identifying the area best suited for a Mining Licence application; and

providing sufficient data to undertake an initial Mineral Resource Estimate in order to commencemining studies.

ABN 81 122 976 818

Suite 23, 513 Hay Street

Subiaco WA 6008

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www.carbineresources.com.au

MUCHEA WEST SILICA SAND PROJECT

Location

The Muchea West Project is located approximately 40km north-northeast of Perth and approximately 500m to the west of the town of Muchea. Direct access from the tenure is via the Tonkin Highway thence via farm tracks and fence lines. Both the Tonkin Highway and the Moora-Kwinana Railway provide a direct connection with the Kwinana Bulk Terminal.

The Project is underlain by the Bassendean Sand Formation, which extends over large areas of the Swan Coastal Plains of the Perth Basin from about 23 km north of Jurien, to about 15km southwest of Busselton. The Bassendean Sand Formation is considered to have a maximum thickness of about 45 m, and the unit is found as a strip parallel to the coast, having a width of about 10-20 km, and its western edge about 5-10km inland

Previous Exploration Undertaken

Figure 1: Location/ Geology Plan

The region surrounding the Project has been explored for both silica sand and mineral sands.

A total of 82 vacuum drill holes were completed by Australian United Silica Corporation Pty Ltd (Ausco). Previously the area within the tenement has been drilled for water and this drilling resulted in 28 water bores.

Current Exploration Activities

The program consisted of a total of 233 vacuum drill holes which were drilled at nominal 50m spacing on five drill lines along existing tracks (as shown in Figure 2 below) within the tenement area. This drilling was completed by Strataprobe Pty Ltd.

Each of the 233 holes intersected white sand profiles as expected in a dune system. The drill depths were designed to terminate 3m above the modelled surface of the 2019 watertable. Due to the exceptional wet seasons for 2020 and 2021 and the early drilling date (immediately following the wet season) the watertable was significantly higher than the modelled surface and only 30 of the 233 holes reached planned depth and 11 holes were short by more than 10m.

A total of 1,088 samples were transported to Intertek Genalysis Laboratories.

Figure 2: Drill Collar Plan

Results

Results from Carbine's maiden drill program have confirmed the grades from previous drilling, and includes intercepts such as:

MW0077 - 15m @ 99.81% SiO2, 222 ppm Fe2O3 and 154 ppm Al2O3 from 1m

MW0092 - 20m @ 99.69% SiO2, 450 ppm Fe2O3 and 313 ppm Al2O3 from 1m

MW0127 - 17m @ 99.70% SiO2, 350 ppm Fe2O3 and 260 ppm Al2O3 from 1m

MW0142 - 21m @ 99.76% SiO2, 329 ppm Fe2O3 and 310 ppm Al2O3 from 1m

Of the 233 holes completed, 85% of the drillholes returned profiles in excess of 99.5% SiO2 and only 3 holes returned profiles with less than 99.0% SiO2.

All 315 holes drilled on the Project to date display the exceptional high grade and quality of the Muchea sand deposits.

The overall grades returned confirm the selection of the eastern side of the tenement for first resource drilling with grades in line with expectations of a raw SiO2 grade in excess of 99.7% and moderate levels of Fe2O3 and Al2O3 as expected from the 2019 drilling results. The average Fe2O3 levels for the 2021 drilling were consistent with the 2019 drilling (0.029% v 0.025%) but the Al2O3 averages were considerably lower (0.077% v 0.028%).

Carbine has already displayed that, at these levels of Fe2O3 and Al2O3, the Muchea West silica sand can, by a simple attrition process, produce a final product that exceeds the requirements set for the high purity silica sand market (ASX Announcement 29 July 2021).

The 2019 drilling program was designed with a nominal depth of 10m for each hole with only 4 of the 82 holes exceeding this depth and then only to between 15 and 20m. The 2021 drilling was designed to test the complete white sand profile of the project with a maximum planned depth of 23m in a number of holes. Despite the higher than normal watertable the deepest holes in this program reached 22m.

The full profile at Muchea West is from surface to a level 3m above the watertable, as defined in 2019. Drilling stops the moment the watertable is intersected irrespective of planned hole depth. This a condition of the licence but also a practical limit as a vacuum system will not lift wet sand.

Carbine's procedure is to reject the surface 1m (ie from 0m to 1m) when sampling. This reflects the practice of setting aside the portion of the profile containing all the botanical material to be used for rehabilitation. Elsewhere at Muchea the critical depth of this material has been shown to be from 0m to 0.4m.

Figure 3: Cross sections (see Figure 2)