Mallee Resources Limited announced that independent consultants CSA Global Pty Ltd, an ERM Group Company, ("CSA Global") have reported a Mineral Resource estimate in accordance with the JORC Code (2012 Edition) ("JORC Code") in respect of the Avebury Project (defined below). As announced on 11 March 2022, the deed of company arrangement ("DOCA") for Allegiance Mining Pty Ltd. (Administrators Appointed) (Receivers and Managers Appointed) ("Allegiance") has been executed. The DOCA contemplates MYL (through a wholly owned subsidiary) acquiring Allegiance, which wholly owns the Avebury mining licences, exploration licences, the underground mine, processing plant, mine infrastructure and other associated assets ("Avebury Project"). Mineral Resource estimation work in respect of the Avebury Project was carried out by MMG Limited ("MMG") in 2011 and reported in accordance with the JORC Code in 2013. No drilling has been undertaken since. CSA Global has reviewed the work undertaken by MMG, undertaken a review of (and amended) the classification approach, checked the Mineral Resource depletion, completed an assessment of reasonable prospects
for eventual economic extraction ("RPEEE"), and re-reported the Mineral Resource in accordance with the JORC Code. The Mineral Resource
estimate is shown in Table 1. The Avebury nickel deposit is hosted in an ultramafic body (part of the McIvor Hill Mafic-Ultramafic Complex) located within a sedimentary sequence comprising volcaniclas c turbidites (the Crimson Creek Forma on) which appears to grade laterally into a complex volcano-sedimentary sequence of polymic c conglomerates and breccias, carbonates, calc-alkaline volcanics and volcaniclas c sediments which may represent the Lower Dundas Group of Cambrian age. The sedimentary sequence is overturned and south facing. Near the deposit, the ultramafic body strikes east-west for about km and generally dips steeply to the south. The body shows complex geometry with respect to the host sequence and thickens considerably with depth to a width more than m. The ultramafic unit extends from Trial Harbour on the west coast in a sinuous fashion towards Avebury and then discon nuously towards the north, fragmented by faul ng. Because of folding of the host sediments, the ultramafic body does not crop out where fold axes plunge below the surface; its extent can be followed by its magne c response. Much of the ultramafic body is located
­ m below surface in the vicinity of the Avebury mine. The ultramafic body at Avebury consists of serpen nised and metasoma sed perido te or dunite cumulates, both concordant and discordant to bedding of the enclosing Crimson Creek sediments. Margins of the ultramafic body are frequently brecciated with numerous protrusions extending into the overlying volcano- sedimentary sequence and xenoliths of volcano-sedimentary rocks incorporated into pervasive calc-silicate altered mafic-ultramafic rock on the contact. The calc-silicate altered margin ranges from m to m in
width. Mineralisa on is hosted primarily in a carapace in what appears to be a structural doubly plunging folded contact between the ultramafic rocks and overlying Crimson Creek Volcanic sequence. Mineralisa on at Avebury was focused along the ultramafic-host sequence contact, but lenses of mineralised rock are also present within the ultramafic body. Mineralisa on is associated with two dis nct gangue mineralogies: dark green to black serpen nised ultramafics with minor disseminated chromite and magne te (mine rock type SERP), and pale green, intensely metasoma sed skarn assemblages dominated by amphibole, clinopyroxene and magne te (mine rock type SKSP). 60% of the Mineral Resource is hosted in the SERP rock type; % of the Mineral Resource is hosted in the SKSP rock type.