Golden Mile Resources : Acquisition in Lithium Rich East Pilbara

For personal use only

ASX Announcement

ASX: G88

21 March 2022

Golden Mile Acquisition in Lithium Rich East Pilbara

Golden Mile Resources Limited (ASX: G88, "the Company" or "Golden Mile") is pleased to announce that it has entered into a binding agreement to acquire the rights to three Exploration Licences near Marble Bar, situated in the lithium rich East Pilbara region of Western Australia. The acquisition strategically expands Golden Mile's portfolio of grassroot exploration projects focussed on critical green metals that includes copper, nickel and lithium to service the predicted high growth in the electric vehicle ("EV") sector.

• Golden Mile enters into a binding agreement to acquire the rights to three exploration licences near Marble Bar, an emerging gold and lithium district situated in the East Pilbara.
• The project is located within 100km radius of the major Wodgina and Pilgangoora Lithium Mines and approximately 20km from Global Lithium Resources Ltd's (ASX:GL1) recent Archer Lithium discovery at Marble Bar.
• In addition to the major lithium projects the tenements are also located within 100km radius of the Warrawoona (1.5Moz), Beatons Creek (0.9Moz), Mt York (0.9Moz) and Bamboo Creek gold deposits as well as the Sulphur Springs Cu-Pb-Zn deposit.

The Company has entered into a binding agreement with Calatos Pty Ltd ("Calatos" or "the Vendor") to acquire the rights to tenements E 45/6127, E 45/6129 and E45/6131 (together, the "Calatos Project") for consideration being $33,000 (incl. GST) in cash and 3,000,000 ordinary shares in the Company (at a deemed issue price of $0.05 per share), and deferred consideration being ordinary shares in the Company valued at the total sum of $150,000 (at a deemed price calculated on the 20-day VWAP of the Company's ordinary shares prior to the Milestone Achievement Date) to be issued on satisfaction of the Performance Milestone prior to the Performance Expiry Date. The tenements are located at Marble Bar in the East Pilbara region of Western Australia (Fig 1).

Figure 1. Location of the Calatos tenements in the East Pilbara

Golden Mile is also pleased to announce it has completed a capital raising of $1,600,000 (before costs) at an issue price of 5.6 cents ($0.056) per share, with one free attaching option for every two shares subscribed for (option terms: $0.10 exercise price and expiry date of 23 September 2023). The capital raising received strong demand and will fund exploration at the Calatos Project in addition to continued exploration of the Company's existing projects - Yarrambee, Yuinmery and Quicksilver.

For personal use only

ASX Announcement

ASX: G88

Calatos Project

The East Pilbara region of Western Australia is renowned as a world-class lithium province also with potential for associated tantalum and REE mineralisation. The region already hosts two of the largest hard rock lithium deposits in the world at Wodgina and Pilgangoora with several other resources defined by other companies. Furthermore, the East Pilbara is increasingly becoming the focus of gold and base metal exploration following the discovery of the Hemi Gold deposit as well as other significant gold projects in the region.

Within a 100km radius of the tenements are the world-class Wodgina and Pilgangoora lithium mines, the recently discovered Archer lithium deposit, the Warrawoona (1.5Moz), Beatons Creek (0.9Moz), Mt York (0.9Moz) and Bamboo Creek gold deposits as well as the Sulphur Springs Cu-Pb-Zn deposit

The recent discovery of the Archer lithium deposit ("Archer") by Global Lithium Resources Limited (ASX:GL1) ("Global Lithium") at their Marble Bar Lithium Project ("MBLP") (located 20km to east of E 45/6127) demonstrates the Lithium potential of the Marble Bar region. The prospectivity of the area is further emphasised by Sociedad Quimica y Minera de Chile S.A ("SQM"; the world's second largest lithium producer) entering into JV to explore Kalamazoo's Marble Bar, Pear Creek and DOM's Hill projects to explore for lithium bearing pegmatites. The project is also located approximately 22km East of the Moolyella Tin/Tantalum field which is thought to be related to the formation of the lithium bearing pegmatites in the region (Fig 2).

The tenements subject to the binding agreement were assessed by desktop study only and no field work has been undertaken.

The tenements are relatively unexplored with only four holes completed all within E45/6127 and no drilling on the other two tenements. The majority of the exploration was stream sediment and rock chip sampling targeting lode and conglomerate hosted gold. There appears to be no recorded exploration specifically targeting lithium or nickel on any of the tenements.

E45/6127

The Geology is dominated by the Fortescue Group of rocks with the basalts of the Kylena Formation covering around 70% of the tenure and the upper Pear Formation sandstone covers the southern central area. The Hardey Formation consisting of silt, sandstone & conglomerate and the underlying Mount Roe basalt occur to the edges of the tenure. The Euro Basalt of the Kelly Group within the Pilbara Supergroup is located at the northern tip of the tenure, consisting of metamorphosed komatiitic basalt, serpentinised peridotite, local dolerite, and gabbro sills, minor felsic volcaniclastic rocks and chert.

Horst and graben faulting running NE-SW through the centre of the tenement, has created southeast block down relative to the northwestern portion of the tenement, thus exposing older rocks in the north of the tenure.

There are minor areas of cover comprising recent alluvial & colluvial sands as well as sheetwash proximal to major streams (Coongan River with runoff running southwest to northeast).

Gold, copper, and silver were encountered in the historical Glen Herring Mine located 1200m south of the tenement. Approximately 3.3km to the west of the tenement are the Miralga Creek base & precious metal (Cu, Pb, Ag, Au, Zn) occurrences associated with felsic intrusions and brecciation.

ASX Announcement

ASX: G88

For personal use only

Figure 2. Location of Calatos tenements in relation to Global Lithium's (ASX:GL1) MBLP, nearby deposits and Mindex occurrences in the Marble Bar region.

Historical work completed (see Appendix 1 for plan):

• A single diamond hole by Western Mining Corporation ("WMC") drilled in 1976 at the Shady Well prospect located on the western boundary. The drill hole was targeting base metals and uranium and intersected conglomerate with matrix containing abundant pyrite from 259m to 285m (26m). Only one sample was taken within this interval returning 0.5m @ 0.6 ppm Au from 259.36m and only 6 samples were selected to be assayed from the entire hole which was 404m deep.

ASX Announcement

ASX: G88

For personal use only

• Three RC holes located on the eastern margin of the tenements were drilled by Whim Creek Mining in 2012 to test for gold mineralisation along strike of the Comet gold mine. A total of 748m were drilled.
• A total of 84 rock chips and 181 stream samples were recorded within the tenement. There is an anomalous 0.219 g/t gold in a rock chip located near Shady Well and there is 478 ppm nickel stream anomaly near the Euro Basalt Unit in the north of the tenement

The Company believes the tenement has the potential for:

• Structurally controlled Lode gold mineralisation
• Conglomerate hosted gold in the Hardy Formation
• Intrusion related gold and base metal (copper, lead, zinc) mineralisation
• Nickel mineralisation associated with unexplored ultramafic stratigraphy in the northern area of the project near the anomalous nickel stream sample

E45/6129

The Geology is dominated by the Bishop Creek Monzogranite, containing biotite monzogranite to granodiorite and syenogranite. Minor Archaean Bamboo Creek Member rhyolite, rhydacite and dacite dykes as well as quartz veins are present throughout the tenement.

The eastern half of the tenement is covered by relic erosional units: variably consolidated eluvial and colluvial sand, gravel, and silt overlying, and derived from granitic rock, dissected by present-day drainage. A significant proportion of the area is under recent alluvium cover, associated with Eastward and Dyke Creeks, part of Talga River catchment from further west.

The eastern part of the tenement is situated within 6km of the granitoid complex and the Apex Basalt (Pilbara Supergroup) contact which falls within 1 km to 10km wide Archaean Granite - Greenstone contact zone that is specified in some exploration models as being prospective for lithium bearing pegmatites. The tenement is also located 12km south of the Bamboo Creek Gold mine and 28km east of Global Lithium's Archer lithium deposit.

Historical work completed (see Appendix 1 for plan):

• There has been very little historical exploration sampling carried out in this area with only 2 stream sediment samples and 1 soil sample recorded targeting gold.

The Company believes the tenement has the potential for:

• Lithium pegmatite associated with the various granite intrusions mapped within the tenement.

E45/6131

The geology comprises predominantly Archaean Fortescue Group lithologies that represents the northern portion of the Marble Bar sub-basin. The lithology is dominated by the Pear Creek Centrocline and the Kylena Basalt Formation in the western portion, with Mount Roe Basalt Formation in the northern and eastern portions of the tenement. Minor Hardey Creek Formation can be seen at the boundary between the lower Mount Roe and upper Kylena Formations. Various Archaean dolerite dyke suites are interspersed and often associated with the Hardey Formation locations or close to them within the upper Kylena Basalts.

The structural setting appears to be complex with folding and numerous faults.

ASX Announcement

ASX: G88

For personal use only

Alluvial sheet wash is present at the centre and east of the tenure adjacent to and associated with Pear Creek and Warralong Creek further east near the Cleaverville Formation.

Historical work completed (see Appendix 1 for plan):

• The only recorded historical exploration sampling are 17 stream samples and 27 rock chip samples targeting conglomerate hosted gold. The best rock chip result was 0.56 g/t gold.

The Company believes the tenement has the potential for:

• Structurally controlled lode gold mineralisation
• Conglomerate hosted gold within the Hardy Formation
• Intrusive related gold and base metal mineralisation

Key Terms of the Agreement

The Company has entered into a binding agreement with Calatos to acquire the rights to the Calatos Project (comprising tenements E 45/6127, E 45/6129 and E45/6131) on the following terms:

• The payment of cash consideration of $33,000 (incl. GST) to the Vendor;
• The issuance of 3,000,000 ordinary shares in the Company (at a deemed issue price of $0.05 per share), valued at the total sum of $150,000, to the Vendor; and
• As deferred consideration: Upon the Company achieving an independently verified JORC Compliant Resource of >50,000 oz gold Eq (cut-off grade > 2 g/t) at any of the Calatos Project tenements the Company will issue ordinary shares in the Company valued at the total sum of $150,000 (at a deemed price calculated on the 20-day VWAP of the Company's ordinary shares prior to the declaration of an independent JORC Inferred Mineral Resource) (Performance Milestone). For the purposes of the Performance Milestone, equivalent metals to gold are Copper, Lithium, Lead, Nickel , Silver and Zinc with each grade as follows: Cu: 1.5%, Li2O: 1%, Pb: 7%, Ni: 1%, Ag: 190 g/t and Zn: 4%. The Performance Milestone is required to be achieved within the earlier of 24 months from commencement of drilling on any one of the tenements comprising the Calatos Project or 30 September 2024 (Milestone Achievement Date). The ordinary shares comprised in the deferred consideration are to be issued to the Vendor within 2 months after the Milestone Achievement Date.

Completion is expected to occur within 15 business days or such other date as agreed between the parties.

Shares are to be issued under the Company's existing placement capacity under ASX Listing Rule 7.1 & 7.1A.

For the purposes of calculating the milestone shares for allocation under its placement capacity, the Company calculates that the number of ordinary shares anticipated to be issued under the Performance Milestone shall be 2,586,207 ordinary shares, based on an entitlement equal to $150,000 worth of ordinary shares in the Company and using the 20-day VWAP of 5.8 cents ($0.058).

Capital Raising

The Company has agreed to accept $1,600,000 (before costs) in applications, which were subject to strong demand, via the issue of 28,571,428 ordinary shares ("Shares") and 14,285,714 free attaching listed G88O options ("Options") for every two Shares allocated. The Options will have an exercise price of 10 cents ($0.10) and an expiry date of 23 September 2023. The Company will seek shareholder approval for the issuance of the Options at an extraordinary general meeting to be convened in the coming months.