Middle Island Resources : 26 Sep 2023 - New Targets and Exploration Update

ASX / Media Announcement

26 September 2023

ASX: MDI

NEW TARGETS-BARKLYCOPPER-GOLD

SUPER PROJECT

EXPLORATION UPDATE

HIGHLIGHTS:

• High priority targets identified (out of a total of 55 targets);
• Range of target depths - from areas of outcrop to 100-400m cover;
• Prospect scale sampling, and geophysics underway to refine drilling plans;
• Initial phase of field work to focus on shallow targets;
• New shallow targets include areas of anomalous silver - (a pathfinder to copper- gold);
• Up to 3m at 52.3g/t Ag and 1m at 87.2g/t Ag in top of bedrock historical vacuum drill samples.

Middle Island Resources Limited (ASX: MDI or "Middle Island") is pleased to update shareholders on our Barkly Project exploration and targeting programme.

The work is targeting prospective areas for IOCG and Sediment Hosted Cu-Zn-Pb-Ag deposits at Tennant Creek and Barkly. The company's exploration holdings in the region now covers some 6,918 sq kms with the addition of new application EL33585 to secure a new target (Zermatt).

High priority exploration targets have been identified for immediate follow-up. A total of 55 targets have been identified for ongoing assessment (Figure 1).

Targeting was based on deposit conceptual model parameters evidenced by magnetic, gravity and structural model signatures. Rankings consider the character, amplitude and size of the target signatures in addition to simplicity to explore including depth to target.

Targets are predominantly 'blind' beneath post-mineralisation cover ranging from 100-400m but include several targets in areas of outcropping prospective basement or shallow cover.

Of note are new shallow targets, Eiger and Zermatt, identified within EL32291 and new application EL33585 where extensive areas of anomalous silver - up to 3m at 52.3g/t silver and 1m at 87.2g/t silver

- are recorded in top of bedrock samples from historical vacuum drilling (refer to Appendix 1 for details).

Many of the high-gradecopper-gold deposits in the Tennant Creek region contain significant silver, for example the nearby recently discovered Hermitage Project (Figure 2).

Middle Island Resources Limited Unit 1, 2 Richardson Street, West Perth WA 6005. ABN:70 142 361

The ranked targets will inform MDI's exploration strategy. Initial field testing of the targets applying soil sampling has commenced using sampling and analytical methods that may detect low level metal anomalies in unmineralised cover above 'blind' deposits. The soil sampling programmes have started on the new shallow targets in addition to further work on the Crosswinds Prospect copper occurrence which was drilled in 2022.

Commenting on the company's exploration programme, MDI Chief Executive Officer, Roland Bartsch said;

"On joining MDI in April, one objective was to reassess the many Barkly Project exploration opportunities. The advancement to prospect scale work on the assembled portfolio of priority targets, that includes shallow opportunities, is an exciting next step toward drill plans on a spread of drill targets.

The systematic approach adopted is integral to MDI's exploration strategy to add value through growth of scientific understanding and concepts, enabling resources and future drilling to be focused on the top targets, maximising the potential for exploration drilling success."

RELEASE AUTHORISED BY THE MDI BOARD:

Contacts:	[phone]	[e-mail]
Website:		www.middleisland.com.au

Forward Looking Statements

Statements contained in this release, particularly those regarding possible or assumed future performance, costs, dividends, production levels or rates, prices, resources, reserves or potential growth of Middle Island, industry growth or other trend projections are, or may be, forward looking statements. Such statements relate to future events and expectations and, as such, involve known and unknown risks and uncertainties. Actual results and developments may differ materially from those expressed or implied by these forward-looking statements depending on a variety of factors.

Competent Persons Statement

The information in this report that relates to Exploration Targets, Exploration Results, Mineral Resources or Ore Reserves is based on information compiled by Mr Roland Bartsch, BSc(Hons), MSc, MAIG. Mr Bartsch is a full- time employee of the Company and has sufficient experience which is relevant to the style of mineralisation and type of deposit under consideration and to the activity being undertaking 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'. Mr Bartsch consents to the inclusion in the report of the matters based on their information in the form and context in which it appears.

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APPENDIX 1: EXPLORATION UPDATE

Exploration Targeting

The Company's technical team aided by data processing and modelling conducted by SGS consultants has identified a total of 55 exploration targets within the Barkly tenements for ongoing assessment (Figure 1). A number of high priority targets have been identified for immediate following.

This initial targeting exercise considered prospectivity for IOCG and Sediment Hosted Cu-Zn-Pb-Ag deposits, based on deposit conceptual model parameters evidenced by magnetic, gravity and structural model signatures (refer to Appendix 2, Table 1 for regional geological context). Rankings consider the character, amplitude, and size of the target signatures in addition to simplicity to explore including depth to target.

New opportunities outside the Company's current holdings in the Barkly - Tennant Creek region are being identified in the targeting process. New application EL33585 has been applied for to secure a new target (Zermatt) that is yet to be granted. The company's exploration holdings (granted and applications) now cover some 6,918 sq kms.

Targets are predominantly 'blind' beneath post-mineralisation cover ranging from 100-400m but include several targets in areas of outcropping prospective basement or shallow cover.

Figure 1. Barkly Project tenements and exploration target locations.

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Detailed prospect scale soil sampling has commenced across a selection of targets on EL32291, EL32290, EL32760, EL 33276 and EL33588. First to be addressed are shallow priority targets that have advanced to the Prospects stage on EL32291 and new application EL33585 (Eiger & Zermatt Prospects; refer below). Detailed ground gravity surveys are also planned to constrain potential drill targets on EL32991, EL32109, EL33589 and EL33588.

Eiger and Zermatt Prospects

Priority targets were identified in EL32291 and new application EL32585 in areas of outcrop and shallow cover. These included two discrete gravity highs evident in the NT public domain datasets and two geochemical targets (Eiger and Zermatt Prospects) in interesting structural settings.

Figure 2. Location of priority prospects and targets within EL32291 and EL33585 with respect to nearby projects where high-gradecopper-gold mineralisation occurs in association with silver. Silver anomalies at the Eiger and Zermatt Prospects are defined by widely spaced (400 x 200m) vacuum drill hole top of bedrock samples (red dots). The anomalies are situated on an EW structure along a similarly orientated magnetic and gravity ridge corresponding with IOCG prospective stratigraphy (Warramunga Formation or lower Ooradigee Group).

At the Eiger and Zermatt prospects two extensive areas of anomalous silver have been identified based on top of bedrock samples from historical vacuum drilling conducted by Normandy Gold Pty Ltd in 1997 (refer to Appendix 1 for details). Sample assays up to 3m at 52.3g/t silver and 1m at 87.2g/t silver were recorded. The drilling is widely spaced 400 x 200m with a single geochemical sample at the top of bedrock.

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Many of the high-grade polymetallic deposits in the Tennant Creek region contain significant silver; results from examples currently being assessed by other explorers (including the nearby Hermitage Project; Figure 2) that demonstrate the relationship are:

Hermitage Project (IOCG) (ASX ERM Release:17 August 2022)

Drill hole HERCDD010: 94m at 2.7% copper, 5.6g/t gold, 17.8g/t silverand 0.4% bismuth

Rover 1 Deposit (IOCG) (https://www.castile.com.au/projects/rover-project/)

Mineral Resources Estimate (JORC 2012): 6.9 Mt at 1.74 g/t gold, 2.07 g/t silver, 1.2% copper, 0.14% bismuth, 0.06% cobalt

Explorer 108 Deposit (Lead-ZincSediment Hosted) (https://www.castile.com.au/projects/rover-project/)

Mineral Resources Estimate (JORC 2012): 11.9Mt at 11.1g/t silver, 2.0% Pb, 3.2% zinc

Bluebird Project (IOCG) (ASX TMS Release: 1 September 2023)

Drill hole BBDD026: 18m @2.66% copper, 11.08g/t gold, 5.4g/t silverand1.47% bismuth

Figure 3. Location and extent of silver and copper anomalies at the Eiger and Zermatt Prospects defined from top or bedrock vacuum drill sampling.

The Eiger and Zermatt silver anomalies are situated on an E-W structure along a similarly orientated magnetic and gravity ridge along contact mapped as Warumungu Formation (the primary host of iron stone hosted polymetallic deposits in the Tennant Creek district) or alternatively interpreted as lower Ooradigee Group which are also considered prospective (interpreted to overlap the intrusion of the Tennant Supersuite and recognised IOCG mineralisation period).

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