Mt Malcolm Mines NL provided 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 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. 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. 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.

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. Four litho-structural target areas have been interpreted from the gravity images.

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. 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. 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.

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. 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 5 of the holes reaching their planned depth. The other 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. The Company is about to commence a diamond drilling program to investigate the high- density gravity targets identified by the recent ground gravity survey. A diamond core drilling program has been planned to simultaneously test the best existing gold mineralised intervals defined to date and the high gravity anomaly located in the centre of the Calypso Prospect.

Initially, the program will target several historical drill hole intersections on section 6790000mN, by testing areas `down dip' and `in-between' significant mineralized intersections, and along the main trend. One drill hole is planned to target a shallow extension of the main gravity anomaly between Calypso North and Calypso Main that remains poorly tested. Another deep drill hole (ca 500m) is planned to intersect the heart of the gravity anomaly at depth.

This deep drill hole will intersect the complete stratigraphy that is known to host the gold mineralisation in this area. Information from this drill hole will greatly assist in determining the geological architecture of the Calypso Prospect and has potential to intersect significant mineralisation in multiple mineralised structures.