Horizon Minerals : Quarterly Activities Report 30 June 2022

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ASX: HRZ

ASX ANNOUNCEMENT

18 JULY 2022

QUARTERLY ACTIVITIES REPORT FOR THE

PERIOD ENDED 30 JUNE 2022

HIGHLIGHTS

• Restructure and demerger of the Company's 25% interest in the 1.8Bt Richmond vanadium project in northwest Queensland completed 1
• Richmond Vanadium Technology (RVT) now owns 100% of the project with shares held by Horizon (25%) and the existing shareholders of RVT (75%) 1
• New RVT Board in place and the IPO process commenced to seek a listing on the ASX with Horizon shareholders to receive and in-specie distribution and priority offering 1,2
• Exploration drilling continues with 8,879m completed at the Greater Boorara, Yarmany and Black Flag areas testing high priority multi-commodity targets
• Nickel sulphides intercepted at the Euston prospect with follow up drilling and down hole EM surveys underway and further assay results pending 3
• Highly anomalous Platinum-Palladium-Nickel-Cobalt results received within the Lakewood project area with further results expected in the September Quarter 2022 4
• Non-coreasset divestment process commenced including the sale of the Gunga West gold project tenements for cash and a toll milling allocation 5
• Placement of 44.4 million fully paid ordinary shares completed at $0.09 per share raising $4 million (before costs) 6
• Placement comes with a 1 for 1 free attaching option with an exercise price of 11c and expiry date of 30 June 2025 6
• Share Purchase Plan (SPP) announced to raise up to an additional $2 million enabling all eligible retail shareholders the opportunity to participate on the same terms as the Placement 6
• Cash at the end of quarter of A$5.58 million and listed investments totalling A$2.3 million

SEPTEMBER QUARTER ACTIVITIES 2

• Continuation of the large-scale exploration program and release of further drilling results
• Advancing the Cannon, Penny's Find and Rose Hill underground gold projects
• Progressing the IPO and ASX listing of the Richmond Vanadium Project (RVP)
• Continuing to pursue value accretive consolidation and divestment opportunities

1 As announced to the ASX on 3 May and 15 June 2022, see also Tables and confirmations on Page 39. 2 See Forward Looking and Cautionary Statements on Page 40.3 As announced to the ASX on 1 June 2022. 4 As announced to the ASX on 7 April 2022. 5 As announced to the ASX on 20 June 2022. 6 As announced to the ASX on 24 June 2022.

			horizonminerals.com.au
163 Stirling Hwy	PO Box 1104	T: [phone]	ACN 007 761 186
Nedlands WA 6009	Nedlands WA 6909	E: [e-mail]	ABN 88 007 761 186

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ASX ANNOUNCEMENT

Horizon Minerals Limited (ASX: HRZ) (Horizon or the Company) is pleased to provide the June 2022 Quarterly Activities Report. Horizon is an exploration and production company within the Kalgoorlie and Coolgardie regions of Western Australia (Figure 1).

A key focus for the Company is on exploration upside within our 1,100km2 tenement package with up to four drill rigs operating as part of the large-scalemulti-element new discovery and project generation exploration program. Horizon holds numerous multi - commodity assets including listed investments and a 25% interest in the world class 1.8Bt Richmond vanadium project in northwest Queensland (Figure 15).

Figure 1: Horizon's project locations, regional geology and surrounding infrastructure

Primary activities during the Quarter included the continuation of the CY2022-23multi-element project generation and new discovery drilling program and release of results, resource modelling and mine optimisation studies for Ore Reserve estimation, advancement of the Cannon, Penny's Find, and Rose Hill underground projects, joint venture assessment and review of further consolidation and divestment opportunities.

In addition, the Company has completed the demerger and restructure the Richmond Vanadium Project and is now progressing a dedicated ASX listing of RVT and IPO in 2022 providing Horizon shareholders with a free allocation of new shares in the IPO and a priority offering.1

1 As announced to the ASX on 15 June 2020, see also Cautionary and

Forward-Looking Statements on Page 40.

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ASX ANNOUNCEMENT

MINE DEVELOPMENT AND OPERATIONS

During the Quarter, the Company prioritised development studies on the high-grade low tonnage underground projects at Cannon, Penny's Find and Rose Hill under a contract mining and toll milling model.

The advanced Cannon gold project is located 30km east-southeast of Kalgoorlie-Boulder (Figure 1) and 15km east of Boorara on existing roads.

Regionally, Cannon is in the western part of the Bulong ultramafic complex in the Boorara

Domain. The Bulong complex consists of 5km thick sequence of komatiitic lava flows made‐ up of a thick serpentinised peridotite in the centre of the‐ complex, flanked by thin spinifex textured komatiitic flows at the top of the sequence. High Mg basalts and interflow‐ sediments are intercalated with the thin flow facies komatiites. Komatiitic basalt and high Mg basalts have a variety of textures which include pillowed, pyroxene spinifex textured‐ and variolitic textured.

The Cannon‐ mineralisation is structurally controlled and strikes north easterly, dipping steeply to the north west; higher‐ grade zones within the mineralised‐ envelope‐ appear‐ to have a steep northerly plunge. Gold‐ related‐ alteration‐ consists‐ of‐ biotite calcite chlorite pyrite alteration with an inner core of albite silica carbonate biotite pyrite gold replacement of the high Mg basalt and

intermediate‐intrusions. The Cannon gold deposit‐ is hosted within a sequence of ultramafic and high Mg basaltic rocks intruded by a mafic intermediate suite of lamprophyre dykes, and rarer dacitic dykes.

Open pit mining was completed in June 2017 with 576,400t mined at 2.98g/t for 55,143 ounces, almost a 100% reconciliation back to the resource. An adit at Cannon was mined in the east pit wall below the ramp to recover a parcel of ore that became inaccessible via open pit mining. Development of the adit began in May 2017 and production was completed in June 2017.

A total of 10,640 tonnes at 9.15g/t Au for 3,131 ounces were recovered; a significant improvement on the reserve figures of 13,313 tonnes at 6.92 g/t for 2,962 ounces.

The Company acquired the project in 2021 and completed a detailed review of all geological information enabling compilation of an updated Mineral resource estimate for the underground deposit immediately beneath the existing open pit.

The Mineral Resource estimate (JORC 2012) for Cannon is shown below 1:

Cannon at 1.0g/t Au lower cut-off grade

Resource category		Tonnes (t)		Grade (g/t Au)	Gold metal (oz)
Indicated		176,000		5.10	28,580
Inferred		51,000		2.30	3,750
Total		226,000		4.40	32,330

In the March Quarter, the Company released the results of the Pre-Feasibility Study (PFS) comprising underground decline development from a portal within the historic open pit under a contract mining and toll milling model.

1 As announced to the ASX on 29 March 2022, see also Tables and Confirmations on Page 38.

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ASX ANNOUNCEMENT

As announced to the ASX on 29 March 2022, the key outcomes of the study are summarised in the table below 1:

	Measure			PFS Outcome
	Lateral Development (m)	1,264
	Vertical Development (m)	131
	Development Ore (kt)	15.0
	Stoping Ore (kt)	120
	Total Mined Ore (kt)	135
	Gold grade (g/t)	4.1
	Stope Mining Recovery	95%
	Milling Recovery (%)	90%
	Recovered Gold (oz)	15,910
	Capital Costs (incl development) (A$m)	4.3
	C1 Costs (A$/oz)	1,644
	All in Sustaining Costs (A$/oz)	1,873
	Free Cashflow at A$2,600/oz Au Price (A$m)	10.1

Significant potential exists for resource growth down plunge (Figure 2) and along strike on the Cannon shear zone with further drilling planned from both surface and underground drilling locations during the mining sequence. 2

Current work is focussed on submission of all statutory approvals and contractor selection for underground mining and ore haulage to a third-party toll mill.

Figure 2: The Cannon open pit looking northeast

1 As announced to the ASX on 29 March 2022, see also Tables and Confirmations on Page 38.

2 See Forward-looking and Cautionary Statement on Page 40.

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ASX ANNOUNCEMENT

EXPLORATION AND EVALUATION

During the Quarter, the Company completed 64 RC holes for 8,879m of drilling as part of the CY2022-23multi-element new discovery and resource growth exploration program. The program included drilling within the Greater Boorara area at Golden Ridge (Au-Ni), Cannon (Au-Ni) and Monument (Au), Yarmany and the Black Flag prospect.

During the Quarter, drilling results were received from Lakewood, Blair North, and Euston with further results expected in the September Quarter 2022 as the laboratory assay backlog is processed.

Greater Boorara - Cannon project area

The Boorara Gold Project is located 15km east of Kalgoorlie-Boulder (Figure 1) adjacent to the Super Pit and 1km southwest of the Nimbus Silver-Zinc Project site where established offices are connected to mains power and existing water supplies.

The deposit is hosted in a quartz dolerite comprising a sheeted quartz vein array system with bounding shear zones and late-stage cross faults. Mineralisation occurs as northwest dipping sheeted and stockwork quartz-carbonate vein arrays within the quartz dolerite host rocks, and steeply dipping zones along sheared geological contacts trending to the north-northwest.

The Mineral Resource estimate (JORC 2012) for Boorara is shown below 1:

Boorara at 0.5 g/t Au lower cut-off grade

Resource category		Tonnes (Mt)		Grade (g/t Au)	Gold metal (koz)
Measured		1.28		1.23	51
Indicated		7.19		1.27	294
Inferred		2.56		1.26	103
Total		11.03		1.26	448

During the Quarter, the Company continued drilling both gold and nickel-cobalt targets within the project area and completed 29 RC holes for 5,054m at Golden Ridge and Cannon-Monument.

In the March Quarter, five RC holes for 990m were drilled to test new targets and validate the historical nickel results at Euston and Blair North prospects with the first nickel hole from Euston returning encouraging (preliminary) assay results as shown below and in Figures 3 and 4. Further results from the other four holes are pending 2,3:

• 4m @ >1.0% Ni, 607ppm Cu and 250ppm Co from 160m (CARC22008) 2

Figure 3: Sulphide mineralisation at Euston (CARC22008, 161m-164m)

1 See Tables and Confirmations on Page 38. 2 As announced to the ASX on 1 June 2022.3 See Forward-

looking and Cautionary Statement on Page 40.	Page 5 of 40