IRIS Metals : Quarterly Report for the Period Ended 30 June 2022

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ASX Release: 29 July 2022

QUARTERLY REPORT FOR THE PERIOD ENDED 30 JUNE 2022

Highlights:

• Increase of Kookynie footprint, with acquisition of additional 5 prospecting leases.
• Acquisition of South Dakota Project prospective for hard rock lithium.
• Appointment of experienced South Dakota-based in country consultant, RLL Consulting, to assist with ongoing business development activities.
• Enlargement of South Dakota Footprint.
• $2.0 million placement completed to support the acquisition and provide working capital to be directed to the acquisition and initial exploration in South Dakota.

IRIS Metals Limited ("IRIS" or the "Company") (ASX:IR1) is pleased to provide an overview of the Company's development activities for the quarter ended 30 June 2022.

The June quarter focused on the completion of the strategic acquisition of the South Dakota Project, which allowed for the resumption of trade in IRIS on ASX. The South Dakota acquisition has diversified IRIS geographically and by commodity, adding lithium exposure to IRIS' portfolio.

Acquisition of South Dakota Project

The Company attained 100% ownership of highly prospective and strategic hard rock lithium projects through the acquisition of White Rock, L.L.C. in the Tier-1 Jurisdiction of South Dakota, USA (the "South Dakota Project" or the "Project").

Within the greater South Dakota Project there are 2 sub projects - Dewy and Custer, across 525 Claims (Refer Figure 1 below).

Figure 1: Location map of Dewy and Custer projects.

Directors	IRIS Metals Limited	Contact Details
Simon Lill, Non-Executive Chairman	ASX: IR1	[e-mail]
Tal Paneth, Executive Director		www.irismetals.com
Peter Marks, Executive Director	Registered Office	ABN
Chris Connell, Executive Director	Level 6, 400 Collins Street	61 646 787 135
David Franks, Company Secretary	MELBOURNE VIC 3000

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The Dewy and Custer projects represent large areas of fertile lithium-caesium-tantalum("LCT")-pegmatites covering several historic lithium mines and numerous historical industrial mineral pegmatite mines. An abundance of mapped pegmatites are located within the project areas including historical lithium bearing mines.

The Dewy Project

Consists of 250 granted Bureau of Land Management ("BLM") Claims and covers an area of prospective LCT-pegmatites occurring in numerous discontinuous swarms represented along strike to many historic lithium mines.

Figure 2: Location map of the Dewy Project, reflecting historic pegmatite mines in blue and lithium specific pegmatite

mines in yellow.

Directors	IRIS Metals Limited	Contact Details
Simon Lill, Non-Executive Chairman	ASX: IR1	[e-mail]
Tal Paneth, Executive Director		www.irismetals.com
Peter Marks, Executive Director	Registered Office	ABN
Chris Connell, Executive Director	Level 6, 400 Collins Street	61 646 787 135
David Franks, Company Secretary	MELBOURNE VIC 3000

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The Custer Project

Consists of 275 BLM Lode Claims and covers an area of prospective LCT-pegmatites occurring in a north south corridor and containing many historic lithium mines.

Figure 3: Location map of the Custer Project, reflecting historic pegmatite mines in blue and lithium specific

pegmatite mines in yellow.

Directors	IRIS Metals Limited	Contact Details
Simon Lill, Non-Executive Chairman	ASX: IR1	[e-mail]
Tal Paneth, Executive Director		www.irismetals.com
Peter Marks, Executive Director	Registered Office	ABN
Chris Connell, Executive Director	Level 6, 400 Collins Street	61 646 787 135
David Franks, Company Secretary	MELBOURNE VIC 3000

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South Dakota - General Information

South Dakota is a Tier 1 jurisdiction with a 145-year history of continuous mining. It includes townships in the Black Hills founded on mining which have a long, proud history of supporting local mining operations, including for lithium. South Dakota has a stable government and supportive legislation, established infrastructure and experienced workforce and is continually ranked at the top or near the top of States in the USA for cost and ease of doing business.

The Black Hills of South Dakota are famous for historic lithium mining dating back to 1898 when lithium- bearing spodumene (contains up to 7% Li₂O), was first mined near the township of Custer.

Other economic minerals historically mined from the pegmatites of the Black Hills include: beryl, columbite- tantalite, mica, feldspar, quartz and tin.

Appointment of RLL Consulting

To expedite IRIS' South Dakota strategy, the Company has appointed experienced South Dakota-based in country consultant, RLL Consulting to assist with ongoing business activities.

In addition, RLL have access to various earth moving equipment and also mining/processing components which will be used to aid both IRIS' exploration and mining aspirations in South Dakota.

The Company believes that the local knowledge and contacts of RLL will play an integral part in the successful execution of the Company's exploration strategy in South Dakota.

Enlarging of South Dakota Footprint

IRIS Director, Chris Connell, recently returned from his second site visit to South Dakota where he had the opportunity to not only assess the claims that form the South Dakota Project, but also inspect numerous other occurrences of pegmatite swarms.

Through its in-country consultant, RLL Consulting, IRIS has a continuous presence on the ground in South Dakota. RRL brought to the Company's attention a surge in interest in the Black Hills by a number of international companies. Accordingly, the Board of Directors acted swiftly to maintain its first mover advantage, agreeing to expedite its staking activities in South Dakota based on the field work of Mr. Connell and his analysis of other geological reference materials.

IRIS is currently in the process of actively staking further claims considered strategic, complementary and accretive to IRIS' existing tenure. The Company will update shareholders of these activities shortly.

Directors	IRIS Metals Limited	Contact Details
Simon Lill, Non-Executive Chairman	ASX: IR1	[e-mail]
Tal Paneth, Executive Director		www.irismetals.com
Peter Marks, Executive Director	Registered Office	ABN
Chris Connell, Executive Director	Level 6, 400 Collins Street	61 646 787 135
David Franks, Company Secretary	MELBOURNE VIC 3000

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Kookynie and Leonora

Post-quarter completion, the Company acquired an additional 5 prospecting leases (P40/1563, P40/1559, P40/1345, P40/1502 & P40/1503) contiguous to its existing landholding at the Northern section of its Kookynie Project. This results in an increase of 399ha (3.99km2) and includes the historic Standard Mine, which produced gold at an average grade of 15.27 g/t over 1,783 tons (MINDEX Reference: S0012875). This tenure closes the 'missing gap' at IRIS' Northern-most tenure and is directly South and contiguous to Genesis Mining's tenure. The Company looks forward to incorporating this into its exploration plans moving forward.

Figure 4: Location Map of new tenure (reflected in Blue)

The Company's suspension and requirement to dedicate increased management resources to the South Dakota Project resulted in delays to planned exploration at the Kookynie and Leonora projects, intended to be undertaken earlier in Q3. Notwithstanding this, the strategies and plans for Kookynie and Leonora per the Company's prospectus remain unchanged and will be pursued in parallel with the U.S. opportunity.

Newly appointed Head of Exploration, Chris Connell, has spent time undertaking a review of both historical and new exploration data, and is currently formulating an exploration plan for IRIS' WA assets, following IRIS' initial Aircore and RC drill programs. Exploration activities are now intended to recommence in Q4, once new Program of Works (PoW's) are lodged, granted and various contractors secured.

Directors	IRIS Metals Limited	Contact Details
Simon Lill, Non-Executive Chairman	ASX: IR1	[e-mail]
Tal Paneth, Executive Director		www.irismetals.com
Peter Marks, Executive Director	Registered Office	ABN
Chris Connell, Executive Director	Level 6, 400 Collins Street	61 646 787 135
David Franks, Company Secretary	MELBOURNE VIC 3000