Mt Malcolm Mines NL : Calypso Exploration Update

ASX Announcement

CALYPSO PROSPECT EXPLORATION UPDATE

27 April 2022

Highlights

• • Four (4) prominent high-density gravity anomalies, also associated with strong magnetic anomalism, have been identified within the prospective greenstone sequence from a recently completed geophysics gravity survey, including a larger high density gravity anomaly at depth.

• • Reprocessing of historic aeromagnetic data has defined a possible circular intrusive igneous plug of interest at depth, co-incident with the gravity anomalies at depth.

• • Historical drilling by Torian Resources (refer ASX:TNR March Quarterly 2018 - page 18) confirms gold mineralisation spatially associated with high-density gravity target #2.

• • Anomalous results (up to 2g/t Au) were received for the recently completed reverse circulation (RC) drilling program, which targeted Calypso style mineralisation at down hole depths of up to 180m.

• • Deep diamond drill holes are due to commence this month, planned to intersect three of the four of the recently interpreted high-density gravity anomalies that do not appear to manifest at surface.

Mt Malcolm Mines NL (ASX:M2M or "the Company") is pleased to provide an exploration update following the recently completed ground-based geophysics gravity field survey and final receipt of results for the recently completed RC drilling at the Company's flagship Calypso Prospect (P37/8792). The gravity survey covered an area of 2.5km x 1.75km which resulted in defining several new high-density gravity targets for drill targeting (Figure 1).

Since listing on the ASX on 10th September 2021, the Company has been systematically exploring the Mt Malcolm Project area, initially focusing on the Calypso Prospect.

A ground-based high-resolution gravity survey over the Calypso Prospect was undertaken in October 2021. The Calypso gravity survey consisted of 2,255 observations on a 50m x 50m gravity station spacing covering an area of 2.5km x 1.75km, with some areas of interest infilled to 25m x 25m station spacing (refer ASX:M2M announcement dated 29th November 2021: "High Resolution Gravity Targets Identified at Calypso")

The magnetic and gravity data was processed and interpreted, which included merging the interpretation with available wider spaced regional gravity data obtained from Geoscience Australia's Geophysical Archive Data Delivery System (GADDS). Data was sourced from within a 10km radial zone surrounding the tenement. The regional dataset is a composite of several surveys dating from 1971 to 2000 with an average station spacing of 1,500 metres.

RC drilling commenced in December 2021, and samples submitted for analysis in early January of 2022. Of the ten RC holes drilled, only five reached their planned depth, with the other five holes terminating prematurely due to drilling difficulties. Due to prolonged assay turn-around, the last of the results have only just been received and validated. Results are consistent with nearby mineralisation intersected in previous drilling, even though half of the holes were prematurely terminated.

High Resolution Gravity Anomalies Defined at Calypso

Interpretation and results from the ground-based gravity survey completed in December 2021 have been evaluated and a program of deep diamond drilling to 500m has been planned to commence this month (April 2022).

Key findings of the High-Resolution Gravity Survey are:

• • The Simple Bouguer gravity, when using a terrain correction density of 2.67g/cm3, has only minor correlation with the terrain.

• • The Bouguer gravity has a substantial range of almost 5mGal across the survey area.

• • The Bouguer gravity data has had a first-order polynomial trend removed (1TR), as this trend is associated with deep-seated sources.

• • The 1TR gravity data has been inverted to a density distribution covering the survey area and extending to 1,000m below the surface.

• • Inverted density distribution corresponds well to the mapped surface geology and indicates the presence of a higher density body at depth with four smaller stocks extending upward towards the surface.

• • Four prospective targets have been identified, targeting local positive density anomalies associated with the smaller stocks, with maximum densities situated 105m-180m below surface (Figures 1 & 2).

1

2

3

4

FIGURE 1

Calypso Prospect - Simple gravity Bouguer anomaly. Four individual target areas (circled in white)

displaying a higher order gravity response identified.

Four litho-structural target areas have been interpreted from the gravity images (Figure 1). The four targets are associated with the smaller apophysate stocks that extend towards the surface. Additionally below the target stocks there is an extremely large, high gravity response forming the shape of a palm of a hand facing upwards with fingers extended vertically upwards towards the surface (Figures 2 & 3).

Following a review of the historical drilling database and results from recent drilling, in some areas the gravity anomalies appear to have been insufficiently drilled or missed altogether.

In some instances, fences of drilling pass nearby and either side of the anomalies (Figure 2).

Reprocessing of historic close spaced aeromagnetic data - multi-scale edge detection ("worming") - has defined both deep-seated and shallow litho-boundaries associated with either faulting or changes in lithology. The deep-seated litho-boundaries suggest the presence of an interesting looking circular igneous intrusive plug (Figure 3). The magnetic anomalies from the historic data are extreme and appear to be associated with banded iron formation.

The previously mentioned four gravity anomalies are also associated with strong magnetic anomalism.

Oblique view inclined downwards towards the northwest

FIGURE 2

Isometric view of three of the four gravity target areas (T1, T2 & T3) - tops identified at depths between 105m - 180m, and sitting above a deeper large and extremely high-density gravity response.

Proposed drilling program showing priority one and two drill holes (yellow).

FIGURE 3

Plan view of merged and processed magnetic data (TMI RTP 1VD) of the Calypso deposit environs, suggesting a possible presence of an interesting looking igneous intrusive plug.

RC Drilling

Hole ID	East MGA94	North MGA94	RL AHD	Azim TN	Dip	Depth (m)	1m re-splits
from	to	metres	Au g/t
21CYRC001	357325.5	6790472.9	354.1	89.3	-58.1	100	NSA
21CYRC002	357275.7	6790475.2	354.1	89.7	-59.3	110	6 incl 6	13	7	0.41
7	1	0.95
18	19	1	0.29
21CYRC003	357224.4	6790476.0	354.2	89.6	-60.8	100	26	27	1	0.32
32	33	1	2.05
51	52	1	2.03
21CYRC004	357175	6790475	355	84.5	-59.9	100	NSA
21CYRC005	357125	6790475	355	90.0	-60.0	100	NSA
21CYRC006	357500	6790150	355	84.5	-60.3	133	98	99	1	0.77
103 incl 108	109	6	0.50
109	1	1.66
21CYRC007	357400	6790150	355	88.2	-57.5	187	116 incl 123	124	8	0.25
124	1	0.56
21CYRC008	357300	6790150	355	90.0	-59.6	109	101	103	2	0.35
21CYRC009	357200	6790150	355	89.0	-58.4	181	75	76	1	0.59
97 incl 99	103	6	0.62
100	1	1.46
128	129	1	0.56
158	159	1	0.37
21CYRC010	357100	6790150	355	89.3	-59.2	160	NSA

Ten (10) Reverse Circulation (RC) drillholes were completed at the Calypso Prospect (P37/8792) for an advance of 1,280 metres. Drilling difficulties were encountered resulting in only five (5) of the holes reaching their planned depth. The other five (5) holes were terminated prematurely due to several reasons including adjacent drillhole collars blowing out and the rig being under capacity to handle the excess groundwater ingress.

Due to laboratory turn-around delays, the Company has only recently received the final results for this drilling program. Results were consistent with surrounding mineralisation and although the drilling did not produce high grade intercepts it confirmed the continuity of the mineralisation in all directions. Significant intercepts are reported in Table 1 below:

TABLE 1

Calypso Prospect - Significant drill intersections >0.2g/t Au

Notes:

• 1. Lower cutoff grade of 0.2g/t Au for reporting of significant intercept.

• 2. Maximum 2m of internal sub-grade material (<0.2g/t Au) included for reporting.

• 3. No top cut applied to high grades.

• 4. NSA = No Significant Assay.

• 5. Drillholes 21CYRC001-21CYRC003: collar coordinates & RL surveyed by Differential GPS (±0.5m).

• 6. Drillholes 21CYRC004-21CYRC010 collars surveyed by handheld GPS (±3m), RL assigned 355m (±3m).

• 7. Azimuth & Dip measured using a downhole north-seeking gyroscopic survey tool (Champ Gyro).

• 8. 21CYRC008 Initial azimuth recorded as a nominal 90°.