Chase Mining : Quarterly Activities/Appendix 5B Cash Flow Report

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18 January 2022

QUARTERLY ACTIVITIES REPORT

For the 3 months ending 31 December 2021

NEW PROJECT AREAS:

As announced in the September Quarterly, the Company (or CML) was in advanced stages of reviewing exploration projects with large scale potential to add value for all shareholders. After protracted negotiations, the Company announced on 27 October 2021 that it had entered into two agreements (Auburn Resources and Prophet Resources) which would give the Company exposure to separate highly prospective tenements in Queensland.

Although there are no existing mineral resources within the tenements, they have indicated potential for gold, copper, zinc, lead, silver, nickel, cobalt and bauxite mineralisation and there are several drill ready targets. This fits well with CML's existing exposure in Queensland through its 40% holding in Red Fox Resources.

Auburn Resources option and JV agreement:

The staged earn-in and joint venture agreement with unlisted junior explorer, Australian Company Auburn Resources Limited (Auburn), allows for CML to acquire up to 90% of a district-scale granted tenement holding of approximately 1,680km2 located approximately 55km's west of Mundubbera in Southern Queensland. The tenement holding consists of 13 granted EPMs, known as the Hawkwood Project.

The Hawkwood Project has unproven geological potential for magmatic Ni-Cu-Co-PGE sulphide mineralisation associated with mafic and ultramafic intrusive complexes. There is also geological potential for porphyry Cu-Mo-Au mineralisation and epithermal gold occurrences, but there has been limited detailed exploration undertaken at the Hawkwood Project to date and there are no known mineral resources.

Under the Auburn Resources option and JV agreement terms, the initial $500,000 funding from CML would be used for the following activities:

1. Preferably conduct ground EM over anomalies generated by a previously completed aerial VTEM survey in the Mundubbera area to refine drill targets for magmatic related sulphide Ni, Cu, Co and PGE mineralisation. If this is further delayed for whatever reason the best anomalies may be drilled based on the VTEM interpretations when conditions allow.
2. Investigate supergene copper workings which appear to be part of a poorly outcropping 13km zone of copper gold and PGEs in another separate layered intrusive in the Mundubbera area by drilling.
3. Two other extensive copper molybdenum and gold zones are interpreted as potential (undrilled) porphyry copper occurrences. Pending additional ground exploration these too will be drilled.

No groundwork was possible in late 2021 due to excessive rain and local flooding. CML has in the interim undertaken extensive desktop studies and refined targets for drilling when conditions, suitable drilling equipment and personnel allow.

CHASE MINING CORPORATION LIMITED

ABN 12 118 788 846

Level 8, 46 Edward St, Brisbane QLD 4000

PO Box 15505, City East QLD 4002

0439 310 818 | 0419 702 616

https://www.chasemining.com.au

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Prophet Resources option agreement to acquire 100%

At the time, Prophet held or had rights to 7 granted EPMs covering over 623km2 and 2 EPM Applications. CML's immediate interest was twofold, namely Croydon North where the target is primarily for untested gold mineralisation potential under shallow cover associated with a major structural junction evidenced in regional magnetic data within a coincident embayment of a Gravity High. Approximately 24km north of the historic Croydon goldfield (~1Moz). Secondly, was the area southeast of the famous historic Mount Morgan gold-copper mine.

After the agreement was signed, CML on 1 November 2021 announced the results of a ground Sub- Audio Magnetics (SAM) SAM survey and that subject to availability of equipment and contractors, weather and access conditions, the drilling of generated anomalies were planned for November 2021.

Unfortunately, even though contractors were mobilised and onsite to carry out the planned work, the weather turned, and local flooding eventually caused the programme to be cancelled. There were some costs involved, but less that would have applied if everyone became stranded on site.

Prophet also managed to arrange contractors to be on site to carry out drilling on the Mt Morgan prospect late November. However as for Croydon this drilling could not be undertaken due to inclement weather and flooding, which ultimately forced the programme's cancellation.

All permits and approvals are in place for Prophet's Croydon and Mt Morgan drilling to occur as soon as possible.

EXISTING PROJECTS

AUSTRALIA

1. Red Fox Resources (40% owned by CML)

There was progress during the reporting period as outlined in CML's ASX Announcements of 12 October; 15 October; 15 November; and 16 December 2021).

Further information on Red Fox and its activities can be found on its website:

http://www.redfoxresources.net.au

2. Torrington Minerals (NSW) Topaz and Tungsten Project

There was no reportable progress on the Torrington Project during the reporting period.

QUEBEC (CANADA)

Alotta Project and Lorraine Project Areas

As reported in the September 2021 Quarterly, no immediate additional drilling is planned. The Directors and management continue to review how best to extract value for the Company from the Project areas.

ADDITIONAL PROJECT OPPORTUNITIES

The Company has continued evaluating reviewing projects that will complement its existing suite of Australian projects.

Management has also been undertaking desktop studies on prospective areas that CML may lodge applications over itself.

The Board will update the market on any new developments as required under the Listing Rules.

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CAPITAL STRUCTURE AND CASH POSITION

The Company's summarised capital structure as at 31 December 2021 is as follows:

Issued fully paid ordinary shares:	468,132,761
Cash at Bank:	$2,439,000

Shareholders and potential investors should also review the Company's audited 2021 Annual Report (ASX Announcement 30 September 2021) to fully appreciate the Company's financial position.

Cash balances are placed on short-term deposit and are monitored on a month-to-month basis in order to ensure funds are available for activities for the coming quarter as set out above.

PAYMENTS TO RELATED PARTIES

A total of $96,000 was paid to directors and their associates for salaries, director fees and superannuation during the quarter ended 31 December 2021.

MINERAL TENEMENT INFORMATION

Refer to Annexure A for details of all mining tenements held.

AUTHORISATION

The provision of this announcement to ASX has been authorised by the Chairman of Chase Mining Corporation Limited.

For, and on behalf of, the Board of Directors of Chase Mining Corporation Limited,

Dr Leon Pretorius

Chairman and CEO

18 January 2022

For technical enquiries contact:

Leon Pretorius on 0419 702 616

For corporate or finance enquiries contact:

Charles Thomas by email to [e-mail]

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ANNEXURE A
MINERAL TENEMENT INFORMATION	31 December 2021

Australia: The Company's wholly owned subsidiary Torrington Minerals Pty Ltd (TMPL) holds two Exploration Licences EL 8258 and EL 8355. The tenements comprise 18 units covering ~51km2 located in northern New South Wales, 240km south-west of Brisbane (Queensland) in proximity to the Torrington Township approximately 65km by road south-west of the local Shire town of Tenterfield (see locality Figures below).

Torrington Topaz and Tungsten Project - Tenement Locality Map

EL 8258 comprising 4 units (~12km²) has been renewed to 16 April 2023, and EL 8355 comprising 13 units (~39km²) has been renewed to 18 March 2024 (see Table 2).

TABLE 2
Project	Tenement. No.	% Interest	Expires	Location
Torrington 1	EL 8258	100%	16/04/2023	NSW Australia
Torrington 2	EL 8355	100%	18/03/2024	NSW Australia

MINING LEASE APPLICATION - MLA547

In October 2017 TMPL lodged a Mining Lease application (MLA547) over the main silexite bodies at Torrington. The Figure above right shows the location of the 651-hectare (0.65km2) MLA within EL 8258 and EL 8355. The Background Paper / Application for SEARs for the Torrington Topaz and Tungsten Project was lodged with the NSW Department of Planning and Environment on 24 September 2019 towards finalising the MLA and EIS process. On 7 February 2020 the Company received the Environmental Assessment Requirements (EARs) for the proposed Torrington Topaz and Tungsten Project. The requirements were based on the information provided and prepared in consultation with the relevant government agencies. The agencies' advice for the project's EIS development were provided for the Company's information.

NOTE: The 2018/19 drought followed by the catastrophic 2019/20 bushfires in the greater Torrington area adversely affected or curtailed most work on site including the EIS related studies. Access roads are yet to be cleared of fallen timber and Company personnel seldomly venture into the area except to check on rehabilitation maintenance due to safety concerns as large trees and limbs continue to fall. COVID-19 restrictions continue to delay any activity by consultants and contractors to advance the project

Quebec Canada: The Company's wholly owned Canadian subsidiary Zeus Olympus Sub Corp (Zeus) holds 157 Claims in Southwest Quebec which cover an area of approximately ~84km². The Project areas are located east and north-east of the town of Ville-Marie on the eastern shore of Lake Temiskaming (see Figures below). A listing of the Project Claims is given in Table 1 below.

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