CZR Resources : Robe Mesa Final Assay Results

CZR Resources Ltd

ABN: 91 112 866 869

Level 3, 47 Havelock St

West Perth Western Australia 6005

PO Box 16

Perth WA 6872

Phone: [phone]

Website:www.czrresources.com

The Company Announcements Office, ASX Limited

March 28, 2022

Robe Mesa Iron Ore Project, Pilbara

Project poised for significant growth, with more DSO identified outside planned pits

DSO assays from outside Resource area support strategy to grow mine life and production rates

Highlights

• • Latest assays from Robe Mesa continue to reveal extensive Direct Shipping Ore (DSO) mineralisation from surface, outside the pit designs contained in the pre-feasibility study (PFS)

• • These assays were predominantly from drilling in the southern half of the Robe Mesa deposit, where the PFS provides for a series of small, shallow pits

• • Mineralisation is now shown to be continuous between pits, highlighting the potential for larger pits to be developed

• • Expanded pits could underpin increased production rates and mine life; The Definitive Feasibility Study (DFS) is targeting a production rate of 3Mtpa compared with 2Mtpa forecast in the PFS

• • Previous drilling targeted the upper pisolite in the southern half of Robe Mesa. With the new knowledge from the 2021 drilling program, CZR will drill test the lower pisolite in areas of thick upper pisolite mineralisation

• • In light of the results, CZR is now undertaking an updated Resource estimate which will underpin new pit designs. This work is scheduled for completion in the June quarter, 2022

• • Diamond drilling and extensional RC drilling is also planned in the June quarter

• • CZR has strengthened its management team, with experienced iron ore Study Manager Fabian Goddard appointed to lead the Robe Mesa DFS

CZR Resources Limited (ASX: CZR) is pleased to announce additional assays which support its strategy to grow both production rates and mine life at its Robe Mesa iron ore project in WA's Pilbara.

The latest assays, which are the final results from the highly successful 2021 RC drilling program, continue to identify extensive DSO outside of the PFS mine plan.

These results are from the central and southern part of the Robe Mesa deposit, where mineralisation continues south into the adjoining Rio Tinto Mesa F deposit (refer to Figure 2 and Appendix A - cross sections).

Fig 1. Location of all RC drill-holes on the Robe Mesa, including 2021 infill drilling

Thick, higher grade channel iron deposits (CID) have also been identified through the southern and central parts of the deposit. These resulted from the closer spaced infill drilling and some sit outside the current resource envelope. These thicker intersections provide an opportunity to test the lower pisolite.

All DSO mineralisation sits above the water table, mitigating the risks associated with dewatering pits and mining below the water table.

Significant intercepts from the final batch of assays are listed in Table 2, with selected results annotated in Figure 2. At a 53% Fe cut-off (60% Fe calcined)1, the significant intercepts average 55.6% Fe (62.3% Fe calcined), 6.3% SiO2, 2.9% Al2O3 and 0.03% P, similar to Rio Tinto's Robe Valley Fines, FMG's Super Special Fines, and Atlas Iron's Atlas Fines (see Table 1). Mineralisation is very shallow and mostly outcropping at surface, with a low indicative strip ratio2 of 0.7.

The geological and grade interpretations have now been completed and will be incorporated in the updated JORC Resource being undertaken by Snowden Optiro. Once the updated JORC Resource is complete, new pit optimisations will be run to determine the potential mining inventory. CZR anticipates reporting the updated JORC Resource and mining inventory in the June quarter, 2022.

• 1. 60% Fe calcined cut-off grade is greater than the 55% Fe calcined cut-off grade used in the previous JORC Resource estimate

• 2. Downhole waste interval divided by downhole mineralised interval (see Table 2)

CZR Managing Director Stefan Murphy said the continued strong assay results and increased activity on the DFS further strengthened the production outlook for Robe Mesa.

"Robe Mesa's prospects go from strength to strength with every batch of assays, together with the work we are doing on the DFS," Mr Murphy said.

"As well as expanding the DSO mineralisation, we are undertaking essential work on land access, environmental studies, community relationships and logistics, including port access.

"With a dedicated Study Manager now leading the DFS, we are moving ahead rapidly with our plan to complete the DFS and bring Robe Mesa into production."

Fig 2. Location of RC drill-holes with a selection of significant intersections outside PFS pit designs annotated (refer to Table 2 for a full list of significant intersections)

DFS Activities and Update

CZR is accelerating its DFS activities, with the appointment of Mr Fabian Goddard as Study Manager. Mr Goddard has a mineral processing background and extensive experience in project development and delivery, business improvement and technical support. With pit-to-port supply chain knowledge in iron ore and bulk commodities with companies including Rio Tinto, BHP, Mineral Resources and Wood, Mr Goddard's appointment has strengthened CZR's team as DFS activities ramp up.

Site works are scheduled to commence mid-April in preparation for the diamond drilling and metallurgical test work program. Heritage surveys are scheduled for April and May to provide clearance for additional site access, water bore field development and extensional drilling. RC drilling is scheduled in June following receipt of clearance approvals. Additional flora and fauna surveys covering the mine site, non-processing infrastructure and haul routes will be completed during the June and September quarters this year.

To support CZR's logistics plan, the company has applied for additional miscellaneous licences to cover non-processing infrastructure (mine access, camp, bore field, comms, etc.) and haulage routes to the North West Coastal Highway. Both northern and southern haul routes are under consideration. The final haul route will depend on the chosen export port location and associated stakeholder engagement.

Fig 3. CZR miscellaneous licence applications for haulage routes and non-processing infrastructure

CZR is focused on increasing the production profile and mine life above the levels reported in the PFS. The DFS mine plan will target a production rate of 3Mtpa of DSO fines of similar specification to Rio Tinto's Robe Valley fines, produced at the adjoining Mesa A and Warramboo mines.

The iron ore quality from Robe Mesa is comparable to other Pilbara fines products that have a strong market presence, having been used by steel mills for decades. The combined silica and alumina levels from Robe Mesa are comparable to its Pilbara peers (see Table 1), and while the iron content is lower, this is due to higher LOI (loss on ignition), meaning Robe Mesa iron ore calcines to similar levels through the sintering process.

Table 1 - Robe Mesa Fines Peer Analysis

Product FeSiO2	Al2O3 P
% %	% %

Robe Mesa - 2020 Ore Reserve +55% Fe	56.0	5.9	2.7	0.04
Robe Mesa - 2021 Drilling +53% Fe	55.6	6.3	2.9	0.03
Rio Tinto - Robe Valley Fines	56.4	5.5	3.1	0.03
FMG - Super Special Fines	56.5	6.4	3.1	0.05
Atlas Iron - Atlas Fines	57.5	6.5	2.0	0.09

Source:https://www.spglobal.com/platts/PlattsContent/_assets/_files/en/our-methodology/methodology-specifications/iron-ore-and-metallurgical-coal-specifications-tree.html

Appendix A - Robe Mesa Cross sections