Eclipse Metals : Ivittuut Historical Samples Return High-Grade REE Results

15th November 2021

ASX Announcement

HISTORICAL SAMPLES FROM THE IVITTUUT PROJECT RETURN HIGH-

GRADE RARE EARTH RESULTS

Highlights
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use	∙ Eclipse confirms high-grade polymetallic rare earth mineralisation at Ivittuut for
the first time, with new samples from historical drilling returning results of 536.30
ppm total rare earth elements, 3.54% tin and 3680 ppm tungsten
∙ Samples of historical drill core from Gronnedal-lka returned high-grade results of
up to 22,695 ppm TREO (Total Rare Earth Oxides) with significant europium values
personal	(Eu)
∙ Samples of quartz core from the Ivittuut pit area returned silica analyses ranging
from 99.12 to 99.7% SiO2
∙ Maximum uranium value of 24.3ppm out of all results is well below the Greenland
Government legislated maximum of 100ppm
∙ Eclipse is progressing petrological and mineralogical determinations as a guide
for future exploration
∙ Further field sampling program presently in progress

Eclipse Metals Ltd (ASX: EPM) (Eclipse Metals or the Company) is pleased to announce that laboratory analysis of samples from historical diamond drill core from its exploration licence MEL2007-45 in southwestern Greenland, have returned high-grade rare earth results and confirmed the project's potential

Forto contain deposits of high-grade quartz, cryolite, siderite, sphalerite and carbonate material.

Eclipse collected samples from historical drill core stored in a Greenland Government facility in Kangerlussuaq (ASX announcement 7th October 2021) for analysis by an Australian laboratory using ME- MS81, ME-ICP06, and ME-XRF26 methods to identify multi-commodity mineralisation within the project area. Very low uranium values ranging from 0.7 to 24.3ppm are well below the Greenland Government legislated maximum of 100ppm

Sample analysis from selected sections of drill core returned significant values for a range of heavy and light rare earth elements (HREE and LREE) in both the the Ivittuut mine precinct and nearby Groneddale- Ika carbonatite area. Core from the Ivittuut mine precinct which contained fluorite yielded a total REO (Rare Earth Oxides) value of 536.6 ppm. This is the first time that REE mineralisation has been confirmed within the Ivittuut mine sequence. Samples from Gronnedal-Ika carbonate returned values up to 22,695ppm total REO.

Table A. Summary of significant REO and metal drill core assay results.

16.78

72.46

77.36

11.55

1.23

21.46

5.37

43.03

8.75

4,951.32

Ivittuut

Ivittuut

Ivittuut

Ivittuut

Ivittuut

Ivittuut

Ivittuut

Ivittuut

Ivittuut

Gronnadal-Ika

15

1380

1

2290

3680

7010

3630

37

1

<1

<0.05

1.02

0.14

0.4

<0.05

<0.05

0.06

1.27

0.34

0.7

0.5

0.7

0.6

0.2

0.2

0.2

0.2

922

0.7

7.5

0.839

8.1

12.2

0.044

0.022

0.321

1.46

0.164

0.078

0.074

0.01

0.03

0.04

<0.01

<0.01

<0.01

0.01

<0.01

<0.01

2.01

536.30

Ivittuut

1

0.36

4.2

0.502

0.01

42.88

96.39

206.89

IVT 21 - 6

IVT 21 - 8

IVT 21 - 10

IVT 21 -

11(1)

IVT 21 -

11(2)

IVT 21 - 13

IVT 21 - 14

IVT 21 - 15

IVT 21 - 17

IVT 21 - 18

IVT 21 - 19

IVT 21 - 21

IVT 21 -22(2)

IVT 21 - 23

Ivittuut

Ivittuut

Ivittuut

IVT 21 - 4

Gronnadal-Ika

>21,408.59

8,347.85

11,088.74

22,694.96

IVT 21 - 1

IVT 21 - 2

IVT 21 - 3

Gronnadal-Ika

Gronnadal-Ika

Gronnadal-Ika

3

1

2

1

3

4

7

24.3

0.95

2.45

5.9

0.13

4.09

0.28

3670

9.7

64.7

11.8

0.4

143

0.8

0.391

0.262

0.476

0.799

53.1

0.338

16.6

1.77

2.44

5.67

0.43

0.01

0.01

0.02

ID

Name

ppm

ppm

ppm

%

ppm

%

SAMPLE

Prospect

W

U

Nb

F

SrO

TOTAL

REO

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personalFigure 1: MEL2007-45with location of Ivittuut Mine and Gronnedal-Ika.Inset shows location of three historic drill holes. Samples from Gronnedal-Ikaand Ivittuut have returned significant analyses for Niobium, Tungsten (W) Strontium - see Summary table below.

For

and

IVITTUUT SAMPLES

Samples of diamond drill core from the historical Ivittuut cryolite pit returned high grades of SiO2 (silica) (Table B) plus, unexpectedly, significant values for rare earth elements. Evaluation of the quartz body below the cryolite pit is a primary aim of exploration. Refer Figure 3 for drillhole locations around the Ivittuut pit.

This area has not been systematically explored for other commodities, including the REE mineralisation onlyofthe carbonatite complex, which has been well noted in academia (Goodenough, 1997). At Ivittuut the Company's sampling program was centred on the quartz body below the pit, samples of which

returnedassay of 99.7%, 99.39% , 99.65% and 99.12% SiO2 (Table B).

Both heavy and light rare earth elements were noted in assays from Ivittuut core samples; see Summary Table above.

A sample from the Ivittuut pit environment returned a high Tin of grade of 3.54% Sn.

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		ME‐ICP06	ME‐XRF26
SAMPLE	Prospect	SiO2	SiO2
DESCRIPTION		%	%
IVT 21 ‐ 1	Gronnadal‐Ika	0.39
IVT 21 ‐ 2	Gronnadal‐Ika	0.76
IVT 21 ‐ 3	Gronnadal‐Ika	0.58
IVT 21 ‐ 4	Gronnadal‐Ika	2.17
IVT 21 ‐ 5	Ivittuut		99.70
IVT 21 ‐ 6	Ivittuut	0.29
IVT 21 ‐ 7	Ivittuut		99.39
IVT 21 ‐ 8	Ivittuut	88.3
IVT 21 ‐ 10	Ivittuut	17.7
IVT 21 ‐ 11(1)	Ivittuut	76.5
IVT 21 ‐ 11(2)	Ivittuut	72.4
IVT 21 ‐ 12	Ivittuut		99.65
IVT 21 ‐ 13	Ivittuut	76.3	74.25
IVT 21 ‐ 14	Ivittuut	10.25
IVT 21 ‐ 15	Ivittuut	97.3	97.66
IVT 21 ‐ 17	Ivittuut	98	99.12
IVT 21 ‐ 18	Ivittuut	97.1	96.85
IVT 21 ‐ 19	Ivittuut	95.6	95.98
IVT 21 ‐ 21	Ivittuut	65.1
IVT 21 ‐22(2)	Ivittuut	92.3
IVT 21 ‐ 23	Gronnadal‐Ika	0.43

Table B: Drill Core Sample ICP and XRF Analysis for SiO2

Figure 2: 99.7% SiO2 in Sample IVT-21-5 of Quartz from 42.18m

GRONNEDAL-IKA SAMPLES

Samples of core from three of the diamond cored holes drillied in the Gronnedal-Ika carbonatite complex in the 1940s returned very significant analysis for rare earth elements with up to 22,695ppm total rare earth oxides (sample IVT 21 - 3). These holes were originally drilled to explore for deposits of magnetite (iron ore) which had developed in the contact area of later intrusive dolerite dykes.

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The magnetite intersections were shown to be narrow and intermittent but recent sampling has returned
very significant analyses of light and heavy rare earthe elements (see Tables A and B)
personalFor	Figure 3: Ivittuut pit cross section showing diamond drill holes ID and intersections in and below the historic pit

Figure 3: Sample (IVT 21 - 1) magnetite from 71.73ms with 3670 ppm Niobium (5248 ppm Nb2O5)

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Figure 4: Gronnedal-Ika Sample (IVT 21 - 4) carbonatite, magnetite with 176 ppm Europium from 2.8m. (203.8 ppm Eu2O3)

Eclipse's ASX announcement dated 2 March 2021 described a magnetically anomalous zone identified by usethe Company's geophysical re-interpretation. Figure 4 below clearly shows the strong correlation between REE mineralisation and magnetic zones - this will be used as the main geophysical tool in exploration for

further REE mineralisation.

Historical sampling results also indicate very high europium values compared with other REE deposits. E ropium has been recognised throughout the carbonatite intrusion at several times greater concentration than average for rocks elsewhere in this part of Greenland and many times that normally expected in carbonatites. Europium is in extremely short supply around the world.

personalOverall, the results confirm there is excellent REE potential at the surface in Gronnedal-lka. The REE prospectivity fits well with our mission to excel in the commercialisation of metals and minerals demanded in the production of green energy and required by industry to reduce pollutants. Historical exploration records indicate the potential for rapid development and production of cryolite, fluorite, quartz, REE, carbonate, zinc and siderite.

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Figure 4: Historical Rock Chip Location highlighting strong REE mineralisation. TMI Images in the background (refer ASX release

2/3/2021). Historical assay results indicate strong correlation of magnetic zone with REE mineralisation