Jindalee Resources : Strong first results received for McDermitt Lithium Project

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ASX RELEASE

19 January 2022

ASX: JRL

STRONG FIRST RESULTS RECEIVED FOR McDERMITT

LITHIUM PROJECT, USA

• Assay results received for first infill holes from 2021 program confirm multiple significant intercepts of mineralisation over broad widths
• Drill program aimed to increase confidence in areas of Inferred Mineral Resource immediately adjacent to Indicated Mineral Resource1
• The upcoming 2022 drill program is fully permitted
• Environmental studies and metallurgical test work ongoing

Jindalee Resources Limited (Jindalee, the Company) is pleased to announce assay results from the first three drillholes completed late in 2021 at the Company's 100% owned McDermitt Lithium Project (US). These new results confirm mineral continuity to the north of the existing Indicated Mineral Resource1, with MDRC019 located outside of the current Inferred Mineral Resource boundary. Highlights from these drillholes include:

• MDRC018: 13.7m @ 1168 ppm Li from 3.1m

10.7m @ 2354 ppm Li from 21.4m (hole ends in mineralisation)

• MDRC019: 13.7m @ 1041 ppm Li from 9.2m 13.7m @ 1084 ppm Li from 44.2m
  24.4m @ 2173 ppm Li from 71.7m incl. 3.1m @ 3425 ppm Li 38.1m @ 1407 ppm Li from 105.2m incl. 3.1m @ 2765 ppm Li
• MDRC020: 13.7m @ 2142 ppm Li from 22.9m incl. 7.6m @ 2660 ppm Li 12.2m @ 1133 ppm Li from 45.8m

In November 2021 Jindalee announced that drill permits had been received2, approving a total of 39 drillholes planned with the intent to increase confidence in the Mineral Resource and test for potential resource extensions. Drilling commenced late November 20213 with a total of 11 drillholes completed before stopping for the Christmas break. The 12th hole, MDRC018, was only drilled to 32m depth before it was abandoned due to poor drilling conditions. The hole finished in a zone of significant lithium mineralisation of 10.7m @ 2,354ppm Li. It is anticipated that it will be redrilled with the next round of drilling.

MDRC019 intersected several broadly mineralised zones of lithium with the best result of 24.4m of 2,173pm Li that included a 3.1m wide zone grading over 3,400ppm Li (Figure 1). Importantly, MDRC019 is located just outside the current Inferred Mineral Resource boundary1 and as a result is expected to have a very positive impact on the resource estimate.

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Jindalee expect the remainder of assays from the Reverse Circulation drillholes will be received by the end of January, with diamond hole results to follow later in the quarter. All drill hole results will be used to update the Mineral Resource estimate (MRE) early in June quarter.

Figure 1. Schematic section showing recent significant intercepts from the McDermitt Project (cross section at 412000mE +/- 200m).

Planning for the next phase of drilling in 2022 is well-advanced with all drill permits in hand. The remainder of the drilling is planned to be RC and will primarily focus on investigating the untested mineral potential across the western tenure. Drilling is expected to commence in July 2022 in line with permitting conditions.

Jindalee will continue to advance the project during the first half of the year with key non-drilling activities taking place. From February 2022 baseline environmental studies will commence in line with Jindalee's application for an Exploration Plan of Operations (EPO). These studies are being coordinated with the Bureau of Land Management (BLM) and the Oregon Department of Geology and Mineral Industries (DOGAMI).

In addition, a 200kg sample from the 2020 drill program has arrived in Perth with metallurgical test work to commence at Nagrom this week.

A full summary of all drill hole data and significant intercepts received to date from the 2021 drill program is included Annexure A

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Figure 2. Plan location map of McDermitt Resource1 and drill hole collars.

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McDermitt Lithium Project - Background

On 8 April 2021 Jindalee announced an updated Mineral Resource Estimate (MRE) of 1.43 Bt @ 1,320ppm Li (0.28% Li2O) for a total of 10.1Mt of Lithium Carbonate Equivalent (LCE) at 1,000ppm Li cut-off3 had been estimated at McDermitt (Table 1)1:

	Cut-off		Indicated Resource		Inferred Resource		Indicated & Inferred Resource
	Grade		Tonnage	Li Grade		LCE	Tonnage	Li Grade		LCE	Tonnage	Li Grade	LCE
	(ppm Li)		(Mt)	(ppm)		(Mt)	(Mt)	(ppm)		(Mt)	(Mt)	(ppm)	(Mt)
500		283	1,340		2.0	2,020	1,130		12.1	2,300	1,150	14.1
	1,000		233	1,430		1.8	1,200	1,300		8.3	1,430	1,320	10.1
1,500		73	1,910		0.7	240	1,750		2.2	313	1,790	3.0
1,750		44	2,110		0.5	85	2,000		0.9	129	2,040	1.4
2,000		23	2,310		0.3	34	2,200		0.4	57	2,240	0.7

Table 1.Summary of McDermitt Mineral Resource Estimate at varying cut-off grades, with preferred reporting cut-off of 1,000ppm highlighted. Note: totals may vary due to rounding.

The Mineral Resource was estimated using a cut-off grade of 1,000ppm Li, which is considered appropriate in the context of similar projects and based on an assessment of the likelihood of future economic extraction as required by the JORC (2012) Code. The entire Mineral Resource sits within 100m of surface and is flat lying, both positive factors for future project economics. The results of the MRE at a full range of cut-off grades demonstrate the scalability of the project.

In September 2021 Jindalee announced the results of a positive preliminary Scoping Study4 based on the Indicated and Inferred Mineral Resource. The key outcomes of the Study highlighted the potential of the Project to support a viable standalone lithium mining and processing operation and reinforced the significance of McDermitt as a potential long-life source of future supply to the rapidly growing US battery manufacturing industry. Due to regulatory constraints surrounding the reliance on Inferred Mineral Resources, detailed production and financial metrics were unable to be released to the market.

Further information on the drilling program and the McDermitt Project are contained Annexure B.

Authorised for release by the Board of Jindalee Resources Limited.

For further information please contact:

LINDSAY DUDFIELD	KAREN WELLMAN
Executive Director	Chief Executive Officer
T:	+ 61 8 9321 7550	T:	+ 61 8 9321 7550
E:	[e-mail]	E:	[e-mail]

About Jindalee

Jindalee Resources Limited (ASX: JRL) is an exploration company with direct and indirect exposure to lithium, gold, base and strategic metals, iron ore, uranium and magnesite through projects generated by the Company's technical team. Jindalee has a track record of rewarding shareholders, including priority entitlements to several successful IPO's and payment of a special dividend.

Jindalee's strategy is to acquire prospective ground, add value through low-cost exploration and, where appropriate, either introduce partners to assist in funding further progress, or fund this activity via a dedicated company in which Jindalee retains a significant interest.

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As at 30 September 2021 Jindalee held cash and marketable securities worth approximately $15.1M, which combined with the Company's tight capital structure (only 54.1M shares on issue), provides a strong base for advancing projects currently held by Jindalee and leveraging into new opportunities.

References:

Additional details including JORC 2012 reporting tables, where applicable, can be found in the following releases lodged with ASX and referred to in this announcement:

1. Jindalee Resources ASX announcement 08/04/2021: "Maiden Lithium Resource at McDermitt".
2. Jindalee Resources ASX announcement 18/11/2021: "Drilling confirms lithium at Clayton North".
3. Jindalee Resources ASX announcement 29/11/2021: "Drilling commences at McDermitt Lithium Project, USA"
4. Jindalee Resources ASX announcement 16/09/2021: "Positive preliminary Scoping Study".
5. Jindalee Resources ASX announcement 28/10/2021: "Quarterly Activities & Cashflow Report".

Competent Persons Statement

The information in this report that relates to Exploration Results, Mineral Resources or Ore Reserves is based on information compiled by Mr Lindsay Dudfield and Mrs Karen Wellman. Mr Dudfield is consultant to the Company and a Member of the Australasian Institute of Mining and Metallurgy and the Australian Institute of Geoscientists. Mrs Wellman is an employee of the Company and a Member of the Australasian Institute of Mining and Metallurgy. Both Mr Dudfield and Mrs Wellman have sufficient experience relevant to the styles of mineralisation and types of deposits under consideration, and to the activity being undertaken, to qualify as Competent Persons as defined in the 2012 Edition of the 'Australasian Code for Reporting of Exploration Results, Minerals Resources and Ore Reserves.' Mr Dudfield and Mrs Wellman consent to the inclusion in this report of the matters based on this information in the form and context in which it appears.

The information in this report that relates to the Exploration Target and the Mineral Resource Estimate for the McDermitt deposit is based on information compiled by Mr. Arnold van der Heyden, who is a Member and Chartered Professional (Geology) of the Australasian Institute of Mining and Metallurgy and a Director of H&S Consultants Pty Ltd. Mr. van der Heyden has sufficient experience relevant to the style of mineralisation and type of deposit under consideration and to the activity being undertaken to qualify as a Competent Person as defined in the 2012 Edition of the 'Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves' (JORC Code). The Company confirms that it is not aware of any further new information or data that materially affects the information included in the original market announcements by Jindalee Resources Ltd (JRL) entitled "McDermitt Lithium Resource confirmed as largest in USA" released on 8 April 2021 and in the case of estimates of Mineral Resources, that all material assumptions and technical parameters underpinning the estimates in the relevant market announcement continue to apply and have not materially changed. To the extent disclosed above, the Company confirms that the form and context in which the Competent Person's findings are presented have not been materially modified from the original market announcement.

Forward-Looking Statements

This document may contain certain forward-looking statements. Forward-looking statements include but are not limited to statements concerning Jindalee Resources Limited's (Jindalee's) current expectations, estimates and projections about the industry in which Jindalee operates, and beliefs and assumptions regarding Jindalee's future performance. When used in this document, the words such as "anticipate", "could", "plan", "estimate", "expects", "seeks", "intends", "may", "potential", "should", and similar expressions are forward-looking statements. Although Jindalee believes that its expectations reflected in these forward-looking statements are reasonable, such statements are subject to known and unknown risks, uncertainties and other factors, some of which are beyond the control of Jindalee and no assurance can be given that actual results will be consistent with these forward-looking statements.