Chase Mining : LARGE SCALE RARE EARTHS AND BASE METAL PROJECT IDENTIFIED

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ASX RELEASE

2 February 2022

LARGE SCALE RARE EARTHS AND BASE METAL PROJECT IDENTIFIED

Three Northern Territory Exploration Licences under Application

A review of recent geochemical and geophysical work by Geoscience Australia has led to the identification of a new rare earths and base metals project area on the northern Barkly Tableland.

Rare Earths

• Very large drainages with peak rare earths and niobium assay values in sediments.
• Long weathering history and lack of outcrops are favourable for near surface enrichments.
• High sediment assay values of the more valuable rare earths including Neodymium.

Base Metals

• An historic 88m intersection of copper lead zinc mineralised black shale in BHP core hole MD1.
• Very large drainage in an area of cover with peak values of copper cobalt bismuth molybdenum tellurium niobium palladium uranium vanadium tungsten.

Fig.1 Location of the Project and Geoscience Australia Sampling

CHASE MINING CORPORATION LIMITED

ABN 12 118 788 846

Level 8, 46 Edward Street, Brisbane QLD 4000

PO Box 15505 City East QLD 4002

0439 310 818 | 0419 702 616

https://www.chasemining.com.au

The North Barkly Project

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The project is comprised of three Exploration Licence applications (33128 / 29 / 30) totalling 1,950 sq km over pastoral lands on the Barkly tablelands 500km northwest of Mount Isa and 150km southwest of McArthur River.

Some of the applications will need Native Title agreements prior to being granted so timing is unknown.

The Barkly region has been subject to intensified geophysical, geochemical and geological investigation by Geoscience Australia over recent years, leading to the recognition of potential for repetitions of the large mineral deposits such as those mined at McArthur River and in the Mount Isa area.

These two largest deposits in this region are hosted by pyritic black dolomitic shale horizons, usually adjacent to large faults, and in the lowest part of the shale unit where it abuts a fault, or in the keel of a local structure.

Fig.2 Project EL Applications with fine fraction Neodymium (ppm) results on magnetics. The coincident peak in Niobium supports the rare earths prospectivity

The North Australian Geochemical Survey (NAGS) results are publicly available from Geoscience Australia. CML has examined the large volume of data and has identified this area as having the strongest indicators of a major rare earths deposit. The peak rare earths trend northwest to southeast through the project area and are strongly supported by the peak niobium scandium tellurium palladium and cobalt values in the centre.

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These elements are indicative of a carbonatite source, which may be one or more of the magnetic bodies close to the peak niobium.

BHP (CR 19930191) drilled a core hole MD1 to 415m at a site 10 km north of the peak sample, close to strongest magnetic bodies, and noted post Mesozoic brecciation in sediments from 37.4m to 44.6m, and further down, weak copper lead and zinc disseminations, stringers, and veinlets in contorted zones between 311m and 399m. No rare earths analyses were conducted.

The project area is characterised by a lack of outcrop, and strong weathering, features which are conducive to rare earths enrichments in the near surface.

A base metal potential also exists within the project. The tuffaceous black dolomitic pyritic shale intersected by BHP in MD1A, is the preferred host rock for the major base metal deposits in this region.

The base metal sulphides indicate that a mineralising process has occurred locally, and viable grades may be found in a more favourable site nearby. The Geoscience Australia geophysical data (Fig.3) demonstrates that this prospective conductive horizon underlies the entire project area, generally at about 350m depth.

Fig.3 Geoscience Australia Tempest Airborne EM Section 117002 N-S through hole MD1A.

Proposed Exploration Programme

After the ELs are granted, CML proposes to define the sources of the stream sediment metals and rare earths by conducting more detailed sampling. The current and any future Geoscience Australia data will also be examined in more detail, in particular the geophysics. The BHP MD1 drill core will be located and, if possible, be analysed for more elements, including rare earths.

Drilling will take place, after the targets are well defined.

Authorisation

This announcement has been authorised for release to the ASX by the CML Board of Directors. Dr Leon Pretorius

Chairman and CEO 2 February 2022

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For technical enquiries contact:	For corporate or finance enquiries contact:
Leon Pretorius on 0419 702 616	Charles Thomas by email to [e-mail]

COMPETENT PERSON STATEMENT

The information in this release that relates to exploration results is based on information compiled by Mr Neil Wilkins M.Sc. Exploration and Mining Geology, who is a Member of The Australian Institute of Geoscientists. Mr Wilkins is employed by Ascry Pty Ltd, which provides consultancy services to CML. Mr Wilkins has previously worked in the North Barkly Project area and has more than five years' experience which is relevant to the styles of mineralisation and types of deposit mentioned in this report and to the activity, which he is undertaking to qualify as a Competent Person as defined in the 2012 Edition of the 'Australasian Code for Reporting of Exploration Results, Minerals Resources and Ore Reserves' (the JORC Code). This public report is issued with the prior written consent of the Competent Person as to the form and context in which it appears. Mr Wilkins holds shares in Chase Mining Corporation Limited.

JORC Code, 2012 Edition - Table 1 report template

Section 1 Sampling Techniques and Data

(Criteria in this section apply to all succeeding sections.)

only	Criteria	JORC Code explanation	Commentary
Sampling	• Nature and quality of sampling (eg cut channels, random chips, or	• Stream sediment sampling by Geoscience Australia involved sieving
techniques	specific specialised industry standard measurement tools appropriate		to various fractions, each of which was analysed by a very large suite
	to the minerals under investigation, such as down hole gamma		of elements. The samples were from overbank sediment sites located
	sondes, or handheld XRF instruments, etc). These examples should		by GPS. The sieve size used here was the ultrafine fraction (75
	not be taken as limiting the broad meaning of sampling.		microns). The other fractions recorded similar results.
	• Include reference to measures taken to ensure sample representivity	• The Geochemical data can be downloaded and is known as the North
	and the appropriate calibration of any measurement tools or systems		Australian Geochemical Survey (NAGS)
use		used.
	• Aspects of the determination of mineralisation that are Material to the
	Public Report.
		• In cases where 'industry standard' work has been done this would be
		relatively simple (eg 'reverse circulation drilling was used to obtain 1
		m samples from which 3 kg was pulverised to produce a 30 g charge
		for fire assay'). In other cases more explanation may be required,
		such as where there is coarse gold that has inherent sampling
		problems. Unusual commodities or mineralisation types (eg
personalr		submarine nodules) may warrant disclosure of detailed information.
Drilling	• Drill type (eg core, reverse circulation, open-hole hammer, rotary air	•	No drilling
techniques	blast, auger, Bangka, sonic, etc) and details (eg core diameter, triple
		or standard tube, depth of diamond tails, face-sampling bit or other
		type, whether core is oriented and if so, by what method, etc).
	Drill sample	• Method of recording and assessing core and chip sample recoveries	•	No drilling
	recovery	and results assessed.
		• Measures taken to maximise sample recovery and ensure
		representative nature of the samples.
		• Whether a relationship exists between sample recovery and grade
		and whether sample bias may have occurred due to preferential
		loss/gain of fine/coarse material.
	Logging	• Whether core and chip samples have been geologically and	•	No drilling
		geotechnically logged to a level of detail to support appropriate
		Mineral Resource estimation, mining studies and metallurgical