Eclipse Metals : Ivittuut Project Returns More High-Grade REE Results

24 March 2022

ASX Announcement

GREENLAND MULTI-COMMODITY PROJECT RETURNS MORE HIGH-GRADE REE RESULTS

Highlights

∙ Up to 4.66% total rare earth oxide (TREO) in carbonatite samples from Grønnedal-Ika
only	prospect at Eclipse's Greenland project
- New assay results further confirm the high-grade nature of this syenite-carbonatite complex with 4 out of
	6 samples returning values greater 1.00% TREO
∙ New results are consistent with previously reported REE assays. Highly anomalous multi-element
use	assay results received from surface samples at Ivigtût and Grønnedal-Ika prospects,
including:
- 165.00 g/t silver, 0.15% copper, 3.83% lead and 0.37% zinc from Ivigtût mine dump grab sample
	I21009.
	- 0.32% lanthanum, 0.83% cerium, 0.12% praseodymium, 0.43% neodymium, 0.07% samarium,
	0.05% gadolinium and 0.06% yttrium in Grønnedal-Ika surface grab sample G21014.
	- 0.60% lanthanum, 1.7% cerium, 0.24% praseodymium, 0.82% neodymium, 0.16% samarium, 0.11%
	gadolinium and 0.0.11% yttrium in Grønnedal-Ika surface grab sample G21016.
	- 0.27% lanthanum, 0.73% cerium, 0.10% praseodymium, 0.39% neodymium, 0.07% samarium,
	0.05% gadolinium and 0.05% yttrium in Grønnedal-Ika surface grab sample G21017.
	- 0.65% niobium, 34.00g/t silver, 0.96% lead, 0.15% copper, 0.16% tin, 200 ppm lithium and 4.40%
	fluorine in Grønnedal-Ika surface grab sample of vein material G21011.
∙ Assessment of exploration results to date indicates three distinct styles of REE
	mineralisation at the Ivigtût and Grønnedal-Ika prospects, ranging from light to heavy REE.
∙ Eclipse will use historic data to generate REE drill targets at Ivigtût and create a 3D model
personal	of historic electromagnetic and radiometric data over Grønnedal-Ika.

ForEclipse Metals Ltd (ASX: EPM) (Eclipse Metals or the Company) is pleased to provide the following update for its Ivigtût (also referred to as Ivittuut) rare earth element (REE), base metal and industrial mineral prospect, and Grønnedal-Ika REE prospect in southwestern Greenland.

Highly anomalous multi-element assay results

Eclipse has received final REE laboratory assay results for nine grab samples from Ivigtût and Grønnedal- Ika, collected during a helicopter-assisted reconnaissance program in late 2021. Preliminary results (ASX Announcement dated 9th March 2022) identified three possible magmatic hydrothermal events within the Company's project area. Many over-limit values returned from the first analytical run were further analysed by more accurate methods, which results are included in the table in Annexure 1. These results are applied to identifying the accurate ratio of the complete suite of REE to better identify the balance of Heavy Rare Earth (HREE) and Light Rare Earths (LREE) (Table 1).

Samples from Grønnedal-Ika and Ivigtût returned highly anomalous total rare earth oxide (TREO), with additional by-products of niobium (Nb) in Grønnedal-Ika, and lead (Pb), copper (Cu), zinc (Zn) and silver

(Ag) concentrations in Ivigtût (Table 2), further confirming the polymetallic nature of the Company's Greenland project.

Sample G21016 from Grønnedal-Ika returned a highly anomalous 4.66% TREO with 0.13% gadolinium

oxide (Gd2O3), and by-product value of 3.3% barium oxide (BaO), whereas sample G21011 of a nearby aplitic vein is highly anomalous in niobium oxides with 0.93% Nb O and elevated rubidium oxide, 0.07%

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Rb2O and zircon oxide, 1.77% ZrO2. The ratio of elements in the suite of HREE and LREE results combined with the presence of other scarce metals in Grønnedal-Ika represents unique carbonatite REE mineralisation, requiring further assessment.

Table 1: Summary of total rare earth oxide (TREO) results in ppm showing heavy REE (HREE) and light REE (LREE). usepersonalEven though overall REE concentrations in random samples I21007, I21009 and I21012, collected from

the Ivigtût mine dumps are relatively low with respect to TREO values, the ratio in the suite of elements with HREE in comparison to LREE is very encouraging and presents an unexpected style of mineralisation with Cu, Zn, Pb, and Ag in the historic pit environment.

Eclipse's bulk sampling was targeting industrial mineral and metals, however, the identification of scarce heavy REEs has cemented the conclusion of the uniqueness and polymetallic nature of the Ivigtût pit precinct (Table 2). These results highlight the potential for much of the mineralisation within the pit to have economic value, thus enhancing potential economics for re-development of this mine. Future exploration will include evaluation of the granite and greisen wall-rocks of the pit for REE potential.

More specifically, laboratory analyses of two fluorite samples (I21007 and I21009) and one cryolite-fluorite- siderite sample (I21012) collected from the historic Ivigtût mine dumps (Figure 1) returned:

For	∙ 22.20% fluorine, 8.60 g/t silver and 0.12% copper in sample I21007, and
∙ 26.00% fluorine, 165.00 g/t silver, 0.14% copper, 3.83% lead and 0.37% zinc in sample I21012.

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use only
personal
Figure 1. Image of the historic Ivigtût pit and waste dumps showing collection location for samples I21007, I21009 and
							I21012 (same location as I21005) .
			Table 2: Summary of REE, precious, base and other metal assay results.
		Ivigtût			TREO		Cu		Zn		Pb		Ag		Nb2O5		SrO
		Sample Id			ppm			ppm			ppm			ppm			ppm			ppm			ppm
		I21007			167			1160			89			84			8.6			82			2588
		I21009			2			1375			3710			3.83%			165			1			331
		I21012			33			485			1315			1195			7.8			4			1132
For		Grønnedal-			TREO			Cu			Zn			Pb			Ag			Nb2O5			SrO
	Ika
	Sample Id			%			ppm			ppm			ppm			ppm			ppm			ppm
	G21010			0.85			13			578			81			BD			31			5.13%
	G21011			0.31			1500			409			0.96%			34			0.93%			1626
	G21014			2.32			27			2480			134			<0.5			164			1910
	G21016			4.66			5			1230			98			0.9			28			4075
		G21017			2.03			26			1665			238			1.9			89			382
		G21019			1.54			10			2350			52			0.5			29			1350

Note: Some assays converted from ppm to percentages.

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Figure 2. Grønnedal-Ikasample locations

Analysis of five ferro-carbonatite grab samples:- G21010 magnetite-limonite-bearing; G21014, G21016, G2107, and G21019, collected from the Grønnedal-Ika carbonatite complex (Figure 2) returned highly anomalous LREE and HREE assay values, as detailed in Table 1 above.

A sample from a sulphide-bearing aplite (G21011) that cuts the carbonatite rocks returned significant metals values, refer Table1. onlyuse

personalFull assay results are provided in Annexure 1.

Eclipse Metals Executive Chairman Carl Popal said: "Our grab sampling program has once again verified the potential of both Ivigtût and Grønnedal-Ika to host REE mineralisation as well as precious, base and industrial metals, Forwhich is very encouraging, especially as the demand for REEs, in particular dysprosium, neodymium and

praseodymium, as well as niobium continues to grow.

"We have many historical core samples from Ivigtût that need to be assayed for these elements as there had not been any REE exploration previously at the project, and this will provide us with a better understanding of what the existing pit holds, while we plan to create a 3D model for Grønnedal-Ika using the data we have at hand.

"I am planning a site visit to Greenland, and we are in the process to submit a work program to the Greenland Mineral Licence and Safety Authority (MLSA) for onsite work programs starting in the next few months as we work to progress our exploration and uncover the project's full potential."

Discussion of REE results

Laboratory assay results from surface grab and historic drill core samples collected by the Company to date (ASX release dated 15th November 2021) as well as supplementary readings obtained with a

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handheld XRF analyser (ASX release dated 17th November 2021) indicate the presence of several distinct styles of REE mineralisation:

1. Carbonatite-hosted REE mineralisation

For personal use only

Grønnedal-Ika's Mesoproterozoic (1,299 ± 17 Ma) carbonatite-syenite complex covers a surface area of 8km × 3km and, as such, is comparable in size to other REE-bearing carbonatites such as Mountain Pass (California), Mt Weld (Australia) and Steenkampskraal (South Africa).

Multiple significant REE results obtained by Eclipse Metals to date (see ASX announcement dated 2nd March 2021 and 15th November 2021) imply that Grønnedal-Ika has the potential to contain significant REE mineralisation. The presence of light REE mineralisation at Grønnedal-Ika is consistent with other REE-bearing carbonatite intrusive complexes.

Preliminary sampling by Eclipse Metals of historic drill core from Grønnedal-Ika returned significant TREO up to 22.70% in sample IVT 21-3 (see ASX announcement dated 15th November 2021). Laboratory results and complementary XRF readings suggest that, in addition to light REE mineralisation, the Grønnedal-Ikacarbonatite-syenite complex is also - at least in part - enriched in dysprosium (Dy), praseodymium (Pr) and neodymium (Nd). The latter are often termed the 'magnet feed' rare earth elements which are critical for high-performance magnets used by the automotive sector and in wind turbines.

Figure 3. Grab sample G21016 from Grønnedal-Ika showing a yet to be positively identified pink mineral

that is highly anomalous in REE.

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