Okapi Resources : Exceptional Vanadium Grades at Rattler Uranium Project

For personal use only

01 June 2022

Exceptional Vanadium Grades returned from rock chips

assays at the Rattler Uranium Project, Utah

Key Points

• Exceptional V2O5 grades at both Rattlesnake and Sunnyside Uranium Prospects, Utah
• Rock samples returned V2O5 values up to 12.5% (124,772 ppm)
• 18 of the 28 samples collected reported values of greater than 0.5% (5,000 ppm) V2O5
• Rattler Uranium Project is potentially amenable to conventional open-pit
• Okapi has already received a permit to drill across the Rattler Uranium Project area

Okapi Resources Limited (ASX: OKR) (Okapi or the Company) is pleased to announce the Company has received the Vanadium assay results from the rock chip sample program at its Rattler Uranium Project in the La Sal Mining District, Utah. A total of 28 rock samples which were collected from the Rattler Uranium Project in December 2021 were recently analysed for Vanadium; of the samples collected 18 reported values greater than 5,000 ppm V2O5 (0.5% V2O5).

The Company decided to have the pulp samples reanalysed for Vanadium after the exceptional uranium grades from the rock chip samples (announced on 10 March 2022) which included 15 of the 28 samples reporting values greater than 1,000 ppm U3O8 and also considering that Vanadium has also been an important byproduct credit in the La Sal Mining district.

The results are summarised in Table 1 and shown in Figures 1 and 2.

Rattler Uranium Project

The Rattler Uranium Project comprises 98 Bureau of Land Management (BLM) unpatented Federal mining claims (encompassing approximately 1,960 acres) located approximately 85km north of Energy Fuels Inc's White Mesa Uranium/Vanadium mill in Utah - the only operating conventional uranium mill in the USA.

The project area includes the historical Rattlesnake open pit mine, which was discovered around 1948 and operated through until about 1954. Historic production from the Rattlesnake pit reportedly totalled 285,000 tonnes of ore at 2,800ppm U3O8 and 10,000ppm V2O5 for 1.6 million pounds of U3O8 and 4.5 million pounds of V2O51.

1 - "Rattler Vanadium-Uranium Project" prepared by North American Mine Services, February 2021, 12 pages, unpublished

For personal use only

Okapi Resources Managing Director Andrew Ferrier comments:

"The Vanadium assay results continue to confirm the high-grade nature of the mineralisation at the Company's Rattler Uranium Project with numerous assays across both Rattlesnake and Sunnyside showing exceptional high-grade uranium and vanadium. The Company has already received a permit to drill at Rattler and is keen to follow up these excellent results with further drilling.

Vanadium is an important metal being on the U.S. Government's list of Critical Minerals. Vanadium is primarily used in high-strength steel production which is needed in defence and aerospace applications and has a growing importance in greener technologies such as batteries."

Rock Chip Samples

Samples came from the mineralised sedimentary horizon in the old Rattlesnake Mine open pit as well as from outcrop and dumps outside the entrances to old mine workings; they also include rock samples collected from outcrops and the mine dumps in the Sunnyside claim block around the now abandoned Sunnyside Mine.

Figures 1 and 2 shows the location of the rock chip samples taken at both the Rattlesnake and Sunnyside Prospects.

Figure 1: Location of samples at Rattlesnake Prospect

2

For personal use only

Figure 2: Location of samples at Sunnyside Prospect

Geology

Uranium and vanadium mineralisation occurs within the Cretaceous Morrison Formation in fluvial channel sediments - in the La Sal Mining District these are contained within the Salt Wash member which varies in thickness up to a maximum of approximately 90 meters and is composed of fluvial (river deposited) intercalated sandstones and mudstones. Due to the process of deposition the Uranium-Vanadium deposits vary in thickness, lateral extent and grade.

Past exploration and development in the Rattler Project's Rattlesnake open-pit describes oxidized outcrop of Salt Wash formation in the base of the pit as containing Carnotite Group minerals including Tyuyamunite and Carnotite representing Calcium- and Potassium-rich Uranyl Vanadates2 respectively. The description of the rocks sampled and the results highlighted here are consistent with that described in historic reports.

Vanadium from the Carnotite ores of the western United States, and specifically those in Colorado and Utah, was produced as a bi-product of Uranium extraction. The Carnotite ore is treated with sulphuric acid to dissolve the Uranium and Vanadium; these are then separated from the solution by liquid ion-ion exchange that removes the Uranium and leaves Vanadium in solution. The remaining solution is then oxidized with soda ash and Vanadium Polyvanadate is precipitated using ammonium sulphate2.

2 - Website: Vanitec.org/vanadium/making-vanadium

3

For personal use only

Rattler Uranium Project Location

The Rattler Uranium Project is located in San Jan County in eastern Utah, approximately 5km west of the town of La Sal and 40kms southeast of Moab, Utah. The project is located within the historic La Sal Mining District that hosts a number of mines in-care-and-maintenance as well as numerous abandoned mines.

The Rattler Uranium Project is also located approximately 85km north of Energy Fuels Inc's White Mesa Uranium/Vanadium mill in Utah - the only operating conventional uranium mill in the USA.

Figure 3 - Location of the Rattler Uranium Project in Utah, USA

4

For personal use only

Historical Production

The entire La Sal Mining District up to 1991 produced approximately 6.4 million lbs U3O8 at an average grade of 3,200ppm U3O8 and approximately 29 million lbs V2O5 at an average grade of 14,600ppm V2O5. More recently Denison Mines and Energy Fuels Resources Corporation reported production between 2006 and 2012 of approximately 1.69 million lb U3O8 at an average grade of 2,000ppm U3O8 and 8.43 million lbs V2O5 at an average grade of 10,200ppm V2O53.

3 - Technical Report on the La Sal District Project, N.I.43-101. Energy Fuels Inc. March, 2014, 75 pages

Figure 4 - La Sal Uranium District in Utah

This announcement has been authorised for release by the Board of Okapi Resources Limited.

Further information:
Andrew Ferrier	Gareth Quinn
Managing Director	Investor Relations
E: [e-mail]	E: [e-mail]
P: [phone]	P: [phone]

5