Impact Minerals : Company Update - Amended

AMENDMENT TO ASX ANNOUNCEMENT DATED 19 APRIL 2022 "COMPANY UPDATE FIRST-EVER LITHIUM IDENTIFIED AT HOPETOUN

PROJECT, WA"

Impact Minerals Limited (ASX:IPT) (Company) would like to provide an amended version of the Company Update released on 19 April 2022.

Additional commentary has been added to the visual description of the spodumene crystals on page 3 of the announcement to provide an estimate of the abundance of the minerals present.

"It is likely that the veins on average contain up to 5% by volume of spodumene and a few percent apatite. However it is difficult to estimate abundances in such coarse-grained rocks and so the absolute amounts of these minerals is unknown."

Dr Mike Jones

Managing Director

26 Richardson Street West Perth Western Australia 6005 Tel [phone] Facsimile [phone]

COMPANY UPDATE: AMENDED

FIRST-EVER LITHIUM IDENTIFIED AT HOPETOUN PROJECT, WA

• • Spodumene and yttrium-bearing apatite identified in pegmatite veins at the Kalahari Prospect.

• • First recorded lithium in the Hopetoun area which covers an interpreted extension of the Ravensthorpe greenstone belt host to multiple mines and deposits of lithium (Mt Cattlin ASX:AKE), nickel (e.g RAV 8 ASX: NIS) and copper-gold (Kundip, ASX:MM8).

• • The veins occur within the Proterozoic Munglinup Gneiss and are thus younger and possibly of a different origin to 'classic' Archaean LCT pegmatites in the region.

• • Application for a new exploration licence lodged to cover part of the Jerdacuttup Fault and the southern extension of the Ravensthorpe greenstone belt, extending the Joint Venture ground holdings in the area to 185 square kilometres.

• • Diamond drill programme to test Top Knotch and Silverstar prospects almost complete. Anomalous copper discovered at Top Knotch with the combined geochemical-geophysical anomalies not yet explained. Soil geochemistry surveys extended to better define targets.

• • Advanced negotiations in progress for the sale of the Blackridge Gold Project in Queensland.

• • Deep-penetrating ground EM survey continues at the Broken Hill Joint venture with IGO.

• • Several parties evaluating Commonwealth Project in the Lachlan Fold Belt of NSW.

5 cm

Figure 1. Large spodumene crystal in pegmatite vein (left) and under UV light showing the distinctive pink florescence of this lithium-bearing mineral.

26 Richardson Street West Perth Western Australia 6005

Tel [phone] Facsimile [phone]

Outcrops of pegmatite veins with large spodumene and apatite crystals have been identified at the Kalahari Prospect, part of Impact Minerals Limited's Hopetoun Project near the mining centre of Ravensthorpe in Western Australia (Figures 1, 2 and 3).

Figure 2. Outcrop of pegmatite vein with large spodumene crustal (arrow) and grab sample with yttrium-bearing apatite (aquamarine crystals).

Impact Minerals' Managing Director Dr Mike Jones said "The recognition of outcrops of lithium-bearing minerals is an exciting development for Impact and its joint venture partners at Hopetoun. Most of the previous work in the area has been focussed on the precious and base metal potential of the Albany Fraser belt given it the host to the Nova-Bollinger deposit.

It is possible however that the belt also may host significant lithium and rare earth deposits and we look forward to the assay results from our initial samples. In the meantime we will extend our soil geochemistry surveys over more of the project area to define areas for follow up work. Dr Jones said.

The spodumene outcrops occur in a road base quarry in an area of generally poor outcrop about 500 metres to the east of the main Kalahari base and precious metal target (233,550 mE, 6,248,900 mN Zone51). The veins, which are steeply dipping and trend north east, occur as a swarm in a zone about 30 to 50 metres wide with individual veins up to 25 cm thick.

The veins clearly cross cut and are younger than the surrounding gneisses (Munglinup Gneiss) which are part of the Albany Fraser Mobile Belt. As such they are different in age, and likely to have a different origin to, the classic Archaean-aged LCT pegmatites that form many of the deposits discovered in the older Yilgarn and Pilbara cratons.

The spodumene crystals are up to 5 cm in dimension and exhibit classic pink fluorescence under ultra violet light (Figure 1). Some of the veins contain similar-sized crystals of aquamarine apatite, a phosphate mineral which has measurable levels of yttrium on a hand-held XRF instrument and which may be prospective for rare earth elements.

It is likely that the veins on average contain up to 5% by volume of spodumene and a few percent apatite. However it is difficult to estimate abundances in such coarse-grained rocks and so the absolute amounts of these minerals is unknown.

It should be noted that some of the exploration information in this announcement is based only on visual field observations. The Company emphasises that the presence of lithium and other metals does require confirmation by chemical analyses. Grab samples of these veins have been submitted for geochemical assay with results expected by mid-May.

Figure 3. Image of airborne magnetic data over the Ravensthorpe-Hopetoun area showing the interpreted extension of the Ravensthorpe greenstone belt south of the Jerdacuttup Fault together with the licences in the Hopetoun Joint

Venture. The new licence is E70/730.

Given the poor exposure in the area, Impact considers it likely that other vein swarms could be present in the Hopetoun-Ravensthorpe area. Accordingly, the company has applied for a new exploration licence that is underlain by the Munglinup Gneiss, as well as an extension of the Ravensthorpe greenstone belt and associated Jerdacuttup Fault, a major terrane boundary. This will also form part of the Hopetoun Joint Venture. (Figure 3).

Drill Programme Update

The diamond drill programme to test the Top Knotch and Silverstar copper-silver-gold targets is nearing completion, with two shallow holes completed at Top Knotch and one in progress at Silverstar (Figure 3).

Disseminated copper minerals have been found in mafic rocks at Top Knotch but these are considered insufficient to explain the geochemical and geophysical anomalies. Accordingly, a detailed soil geochemistry survey has been undertaken over the target are to better refine the target, which was identified from earlier reconnaissance work. Samples will be dispatched to Perth shortly for assay, with results expected in June.

ABOUT THE HOPETOUN JOINT VENTURE PROJECT

The Hopetoun project is one of four recently announced joint venture projects where Impact is earning an 80% interest (Figure 4 and ASX Release 8th December 2021).

The project contains six drill-ready targets of which two, Top Knotch and Silverstar, were fully permitted for drill testing (Figure 1). Statutory approvals are being sought for the other targets and these are likely to be drilled later in the year.

The Hopetoun area has received very little exploration because of a perception that much of the area is underlain by barren Proterozoic gneisses. In addition, there is extensive younger cover which has hindered previous explorers.

However, a review of the regional airborne magnetic data over the area suggests that much of the gneiss terrane may comprise a reworked Archaean granite-greenstone terrane as shown in Figure 3.

Indeed, the area may be an extension of the Ravensthorpe greenstone belt to the north which contains numerous mines and deposits of lithium (Mt Cattlin mine, Allkem Limited, ASX:AKE), nickel sulphide (the dormant RAV 8 mine and associated deposits), copper-gold (including the Kundip historic mining centre where recent exploration has returned exceptional copper-gold results, Medallion Metals Ltd ASX:MM8), zinc-lead-copper (Trilogy deposit ASX:MM8) as well as nickel laterite (First Quantum Minerals Limited TSX:FM) (Figure 3).

The drill ready targets identified at Hopetoun include targets for nickel-copper-gold-silver and lithium.