Castile Resources : LARGE INCREASES IN GOLD, COPPER AND COBALT AT ROVER 1

only	8 March 2022
	ASX Announcement

LARGE INCREASES IN GOLD, COPPER AND COBALT AT ROVER 1

Castile Resources Limited (ASX:CST) ("Castile" or the "Company") is pleased to announce that the new resource estimate for Rover 1 has been completed and has resulted in large increases to the indicated resources of the key value metals - gold, copper and by-product cobalt. The infill drilling program has been extremely

successful in fulfilling its objective of defining a large set of robust indicated resources at Rover 1 that can feed use

dir ctly into our mining studies and to Processing Design Engineers for the Pre-Feasibility Study.

Highlights of the new 2022 Rover 1 Resources Estimate include:

Large Increases in Indicated Resources of key metals Gold, Copper and Cobalt1

• Gold increased by 40% to 242,600 ounces
• Copper increased by 65% to 63,400 tonnes
• Cobalt increased by 61% to 2,900 tonnes.

Rover 1 is now a substantial polymetallic orebody allowing Castile to complete designs on a mining plan nd commission designs on the downstream processing facility that optimises recoveries and provide multiple revenue streams from the gold bullion, pure copper metal and a pure cobalt metal. Castile will also be able to participate in the "clean energy" and electric vehicle sector as the Company's proposed products, copper and cobalt metal, can be supplied directly to end users in those industries. Castile recently announced outstanding d wnstream processing recovery rates for the key metals in the project which can be produced on site and sold directly to end user markets. (See ASX : CST 4 March 2022 "Outstanding Recoveries Of Gold, Copper And

Cobalt At Rover 1")

Table 1: Castile Resources 2022 Rover 1 Metal Resource Estimate

	Classification			Mineral Resource Estimate
			Gold (Oz)	Copper (T)		Cobalt (T)	Bismuth (T)	Silver (Oz)
		Indicated	242,600	63,400		2,900	4,200	302,300
personal	Inferred	20,900	14,000		900	700	48,000
		Total	263,500	77,400	3,800	4,900	350,300

ForAnother significant revenue stream will be added to the model in the coming weeks with an estimate of the

magnetite content of the orebody. This magnetite will be processed to produce a high grade product for use as a density modifying industrial mineral. Production of this magnetite will also significantly minimise the environmental footprint of the operation by reducing waste and tailings storage requirements (See ASX:CST 19 November 2021).

1 The Company refers to the exploration results for comparison in this presentation as sourced from its Prospectus dated

3 December 2019 and released on the ASX on 12 February 2020

only	8 March 2022
	ASX Announcement

Mark Hepburn, the Managing Director of Castile commented:

"We now have a larger, concentrated Indicated Resource Estimate required to complete a robust, commercial Pre-Feasibility Study (PFS) for the development pathway of our valuable polymetallic asset at Rover 1. We anticipate this prolific new indicated resource with diversified metal streams of gold, copper, cobalt and the

usemagnetite product will underwrite a substantial operation for Castile Resources. We are extremely pleased with

the big increases in gold and copper to the indicative classification, which will form the mining inventory for the Process Engineers designing the processing plant for the PFS. We are very fortunate to have cobalt as a

ignificant by-product and look forward to becoming an ethical Australian supplier of that metal"

Castile has contracted processing engineers to design a fully optimised, future compliant operation that

incorporates an environmentally sustainable extraction and processing method. Recent testing of the proposed

processing flow sheet has achieved very high total recoveries of gold 92.8%, copper 95.3% and cobalt 82.8%.

This updated 3.88Mt indicative resource estimate will guide the design of a modular processing plant capable
personal
of	processing approximately 500,000tpa that will significantly minimise environmental effects and extract
m	ximum financial value from every tonne that Castile mines. Castile will target production of a suite of precious

minerals and downstream finished products on site for the clean energy economy targeting the Australian market. This will remove the need to export concentrates offshore and increase and enhance the timing of cashflows for the financial modelling in the PFS. Copper, which has increased by 65% in the Indicated Resource Estimate, is a critical metal in the manufacture of Electric Vehicles (EV's) and the construction of the re-charging network required to service these vehicles. Cobalt, which has increased by 61% in the Indicated Resource Estimate, is required in lithium batteries to stabilise their function and boost energy density. Castile aspires to be an ethical supplier to these growing markets in the clean energy sector through the sale of pure copper metal and cobalt metal. We anticipate the pending magnetite resource estimate will generate another revenue stream and significantly reduce waste requirements assisting Castile to prioritise an environmentally responsible development pathway at Rover 1. This provides not only robust revenues but offers natural hedging through a diversity of metal revenue streams.

Table 2: Castile Resources 2022 Rover 1 Resource Estimate

	2g/t Gold Equivalent Cut Off Grade			Grade
	Classification	Tonnes	Gold (g/t)	Copper (%)	Cobalt (%)	Bismuth (%)	Silver (g/t)
	Indicated	3,882,000	1.94	1.63	0.07	0.11	2.42
For	865,000	0.75	1.62	0.10	0.08	1.73
	Inferred
	T tal	4,747,000	1.73	1.63	0.08	0.10	2.30

While this resource has "ring fenced" a significant set of indicated resources for the PFS, results have shown that there is also excellent potential to add to the inventory as the orebody remains open at depth and the company will be furthering those opportunities with our 2022 drilling program

Rover 1 Mineral Resource Estimate.

The following sections outline the geological interpretation, assumptions and procedures associated with the estimation of the Rover 1 mineral resource. Castile compiled the geological and mineralisation interpretation and validated drillhole database. This data was provided to Cube Consulting who undertook geostatistical analysis and resource estimation. This mineral resource estimate (MRE) incorporates all drilling at Rover 1 since 2011.

onlyDrilling

ASX Announcement8 March 2022

The Rover 1 mineral deposit has been drilled on a nominal 40m x 40m spacing, infilled to 20m x 20m through v lumes containing significant mineralisation. Drilling post 2011 has targeted the Western Lode and the Jupiter Deeps mineralised areas as well as some infill drilling in the main Jupiter zone during 2020 and 2021. A total of 12 holes and 20 daughter holes were drilled for 16,459.74m cored and 4923 samples analysed (Error! Reference

usesource not found.).

personalForigure 1: Rover 1 drill hole locations with interpreted mineralisation domains. Green holes are pre 2012, magenta drill holes are from the 2012 to 2021 drilling programs. The drill holes include the Westgold and Adelaide Resource datasets.

Sampling

All data used in the calculation of the Rover 1 mineral resource 1 has been gathered from diamond core. Multiple sizes have been used historically; HQ, NQ and BQ. Core samples are selected to lie on geological boundaries, with intervals selected of lengths between 0.1 to 1.1m. Historic samples were selected on 1m intervals, irrespective of geology. To ensure representivity of samples, field blanks and certified reference material (CRM)

only	8 March 2022
	ASX Announcement

are inserted at a nominal ratio of 1:20 samples. Sample recovery is recorded on retrieval of the core tube, measuring recovered core against drill string advance. No apparent relationship has been observed between sample recovery and grade. No has sample bias due to preferential loss or gain of fine or coarse material been n ted. Samples are halved using an automatic core saw then individual samples collected in prenumbered calico sample bags. The un-sampled half of diamond core is retained for check sampling if required.

useIndividual sample bags are placed in lots of 5 into poly weave bags annotated with the sample number series within and closed by zip tie. All samples are then placed into a bulka bag and transported to the certified laboratory.

In the case of pre 2021 drilling, samples underwent the following laboratory preparation:

Half core undergoes total preparation, crushed using a vibrating jaw crusher to achieve a maximum sample size of 4 mm.

The sample is then weighed, and if the sample weight is greater than 3.2 kg, the sample is split into two using a

Jones-type riffle splitter.

personalThe crushed sample is then pulverised in a Labtech LM5 Ring Mill such that 90% passed 75um.

For samples weighing greater than 3.2 kg, the first portion is removed and second portion is homogenised in the s me machine. Once complete, the first portion is put back in the LM5 and both portions are homogenised. From the pulverised sample, approximately 200 g is collected via a scoop as a master sample for assaying. For every 20th sample, an approximately 25 g sample is screened to 75 microns to check that homogenising has achieved 90% passing 75 microns.

Fr m the analysis sample, 30g is taken for fire assay, while a 0.2g potion is taken for acid digestion. These samples are extracted from the packet with a spatula and weighed out.

Post 2021 sample preparation process consists of;

Crushing using a Boyd Crusher to achieve a maximum sample size of 2mm.

The crushed sample is split down to a 3kg sample via a rotating sample divider attached directly to the Boyd Crusher.

The crushed sample is then pulverised in a Labtech LM5 Ring Mill such that 90% passes 75um. 200g is split and placed in a packet for analytical work.

For every 20th sample, an approximately 25g sample is wet screened to check grind effectiveness.

From the analysis sample, 25g is taken for fire assay, while a 0.2g potion is taken for acid digestion. These samples are extracted from the packet with a spatula and weighed out.

Umpire laboratory checks were performed to validate the representivity of the 25g fire assay by analysis on 30g Forfi e assays. No bias was observed.

The sample sizes are considered appropriate to the grainsize of the material being sampled.

QAQC is ensured during sampling via the use of sample ledgers, blanks, CRM and repeats. QAQC is ensured during the assays process via the use of blanks, CRM and repeats at a NATA / ISO accredited laboratory.

Quality Assurance and Quality Control (QAQC)

The QAQC for sampling associated with drillhole programs at Rover 1 up to the end of 2015 was independently assessed by Cube Consulting for gold and copper and is summarised below. The QAQC for sampling associated with 2021 and 2022 drillhole programs at Rover 1 was reviewed by Castile Resources and is summarised after the historic QAQC.

Cube Consulting independently assessed all available QAQC sample data for the drilling completed on the Rover 1 project between March 2008 to August 2015, focusing on gold and copper QAQC data only. The dataset was received on 31/01/2017 as an Access database and the QAQC information was supplied as Excel spreadsheets between 31/01/2017 and 09/02/2017.

ASX Announcement	8 March 2022
onlyThe following summary is based on the issues found during the QAQC review:
	• The combined CRM, blanks and duplicate samples represent an insertion rate of 6% (i.e. 1,506 samples);
use	• A total of 67 blank CRM was inserted into the sampling stream:
• The pulp blanks (i.e. 48 samples) suggest a low risk of contamination during the analytical stages of the
assaying process for both gold and copper;
	• The whole rock granite samples suggest a low risk of contamination during the sample preparation stage
	for gold, but the consistent reporting of ~60 ppm Cu indicates the granite contains a minor amount of
	copper and it is not suitable for a copper blank;
	• It is recommended that certified coarse blanks are used in the future to monitor contamination during the
	sample preparation and analytical stages.
personal	• A total of 705 gold and 61 copper CRM's were inserted into the sampling stream between 2008 and
2015. The inclusion of the CRM represents an insertion rate of 3%, which is slightly lower the industry
is unclear. The BLEG duplicates will not give any meaningful conclusions with respect to the precision
	standard of 5%.
	• The analysis of the CRM's accuracy, precision and control charts is within acceptable limits and a low
	risk is associated with the accuracy and precision of the assay results;
	• Approximately 5% of the CRM's were misclassified because of sample swapping and/or data
	transcription errors.
	• Limited field duplicates, coarse reject duplicates or pulp duplicates have been submitted during for the
	Rover 1 dataset.
	• No umpire laboratory duplicate sampling is presented in the dataset;
	• No field duplicates or coarse reject samples were present in the dataset;
	• The laboratory repeats for both gold and copper relative paired difference plots and average coefficient
	of variation are within acceptable limits;
	• A total of 145 pulp duplicates were re-assayed using BLEG assaying methodology. The purpose of this
	associated with the nature of the mineralisation, sample collection, sample preparation, sample size and
	assay methodology.
The following recommendations to address identified issues are summarised below:
For	• Sample weights should be recorded prior to leaving site and on receipt at the laboratory to improve the
"sample chain of custody" and reduce potential sample handling errors;

• Incorporate coarse reject and field duplicate sampling as part of the routine QC procedures to monitor the accuracy and precision of the sample preparation, sampling error, analytical methods and natural variability (i.e. nugget effect) of the mineralisation. An insertion rate of 5% - 10% is considered industry best practice;

• Perform a retrospective field duplicate sampling campaign based on the coarse rejects stored onsite;

• Umpire laboratory duplicates are essential in determining any assay bias at the primary laboratory. It is recommended that 5% of mineralised samples are submitted to an alternative laboratory for check assay.

• Wet screening of the pulp should be conducted and grind size monitored on a routine basis.

The QAQC review demonstrates that the analytical accuracy and precision is acceptable and this indicates the sample data is appropriate for the purpose of Mineral Resource estimation.

Castile Resources reviewed available QAQC sample data for the drilling completed on the Rover 1 project between March 2021 to November 2021, focusing on gold and copper QAQC data only. QAQC reports were