Nelson Resources : Quarterly Activities & Cashflow Report

ASX RELEASE 24 JAN 2022 ASX:NES

QUARTERLY ACTIVITIES REPORT FOR THREE MONTHS ENDED 31 December

2021

Nelson Resources ("Nelson" or "the Company") is pleased to provide shareholders its Activities
onlyReport for the three-month period ending 31 December 2021.
Highlights:
use	∙ A new mineralisation zone discovered to the west of Socrates along with extensions to the
		south of Socrates Main.
	∙ Results reported in the quarter from RC drilling at Socrates significantly extends the width
		of the known mineralisation across the prospect to 1.5 km.
	∙ Results included 5m @ 1.72 g/t Au; incl. 3m @ 2.01 g/t Au from 23m at the Socrates West
personal		EM target and 5m @ 1.74 g/t Au from Socrates Central target extending the deposit to the
	south7.
∙	relevant experience in the Albany-Fraser region.
	Lower-level results at the Grindall prospect demonstrate the potential for a large mineralised
		system with a 600m of Gold bearing strike now identified.
	∙ Fortnum review has provided significant insights as to the potential of the project with
		historical results returning 5m @ 4.71 g/t from 35m in FRB3032, 8m @ 2.41 g/t from 52m in
		FRB1117 and 3m @ 2.43 g/t from 2m in FRB30328.
	∙ During the quarter the Company engaged Derek Shaw as Exploration Manager. Derek
		brings 20+ years of Mineral Exploration experience to Nelson including significant and
COVID-19:
		During the quarter, the Company continued to follow all State Government directives in
		respect to COVID-19 and the Company's operations. The Company experienced a number of
		time delays with several staff being out of the state when travel restrictions have been
		enforced.
Corporate and Finance:
For		During the quarter, the Company conducted some external drill contracting.

Leading up to Christmas Holidays along with the effect of border closures the Company made the decision to stand down its drilling operations with the focus in the first quarter of 2022 likely to be Air Core drilling at its Fortnum Project.

CAPITAL STRUCTURE	BOARD	LAST CAPITAL RAISE
ORDINARY SHARES	Executive Director - Adam Schofield	August 2021 - Rights Issue +
Issued 194,292,195	Non-Executive Chairman - Warren Hallam	Placement
OPTIONS	Non-Executive Director - Stephen Brockhurst	$2.3 million @ 4.7 cents per
Listed options 60,003,800	Company Secretary - Stephen Brockhurst	share
Unlisted options 13,341,997

Existing Projects Summary:

For personal use only

Figure 1 - Project Locations

NELSON RESOURCES LIMITED | Address: Level 11, London House, 216 St George's Terrace, Perth, Western Australia 6000 | Phone: [phone]

Woodline Projects Summary: onlyuse

personalFor

Figure 2 - Geology of the Woodline Project showing the locations of the Grindall, Redmill,

Morris and Socrates Projects as well as the gold surface geochemistry anomaly.

NELSON RESOURCES LIMITED | Address: Level 11, London House, 216 St George's Terrace, Perth, Western Australia 6000 | Phone: [phone]

For personal use only

Woodline Projects

Grindall-Redmill-Harvey, Socrates & Morris

The Woodline Project (Figure 2) lies 140km South East of Kalgoorlie and is halfway between the Trans Australia Rail line and the Eyre Highway. The Woodline Project consists of the Grindall, Redmill, Harvey, Socrates & Morris Projects which makes up 1226km² of prime exploration tenure. The Project lies across the boundary of the Archaean Yilgarn Craton and the Proterozoic Northern Foreland of the Albany-Fraser Orogen.

Work carried out by Nelson at Socrates has returned several significant gold intersections, suggesting a large underlying gold system. The Company believes that Grindall, Redmill, and Harvey each have the potential to host a Tropicana scale gold deposit.

The Woodline Project incorporates:

• 65km of the Cundeelee fault within its tenure and contains an identified >20km gold geochemical and bedrock anomaly which is in the same geological structural setting 2 as the 7.7 million ounce Tropicana Gold Mine 3
• 30km of significantly unexplored greenstones within the Norseman-Wiluna greenstone belt, and
• A significant and unique holding within the confluence of the Keith-Kilkenny Fault / the Claypan Shear Zone and the Cundeelee Shear Zone. These three Shears have hosted many of the largest gold projects in Western Australia.

Socrates

Socrates Main

The Socrates Project (12km²) (Figure 2) is hosted within a mafic unit that is bounded to the west by andesitic and rhyolitic volcanics and sediments to the east. This mafic unit is located within the Claypan Fault. The project is the Company's original project and has had approximately 8,400 meters of RC drilling completed. The bulk of this drilling is on a mineralised zone that currently extends for approximately 350m and is open on strike and down dip. Recent geophysics has highlighted up to 2km of potential mineralised structure.

Previous drilling results include:

• 1m @ 142 g/t Au
• 192m @ 0.5 g/t Au
• 8m @ 3.53 g/t Au
• 25m @ 2.06 g/t Au

Socrates West

The West Socrates prospect is within the Socrates Tenement and has been identified from previous drilling by Nelson⁵ as well as mapping and rock chip sampling by Nelson⁶.

Previous drilling results include:

• 7m @ 5.02 g/t Au
• 1m @ 1.12 g/t Au
• 1m @ 1.04 g/t Au

Socrates East

The Socrates East prospect is within the Socrates Tenement and is a drill target that has been identified through historic gold geochemistry work done by SIPA/Newmont (Figure 2).

NELSON RESOURCES LIMITED | Address: Level 11, London House, 216 St George's Terrace, Perth, Western Australia 6000 | Phone: [phone]

Grindall-Redmill-Harvey

For personal use only

The Grindall, Redmill & Harvey prospects are associated with sub-parallel curvilinear structures that dip moderately to the east. The structures are interpreted to form in the hanging wall of the (deep seated / crustal scale) Cundeelee Fault which is the boundary between the Yilgarn Craton and the Albany-Fraser Orogen and are coincidental with a surface geochemical anomaly that has been defined from previous geochemical data and extends for a strike length of more than 20km (Figure 2). Anomalous Au, Te, Bi and Cu present in the bedrock can be used to identify structurally controlled gold mineralisation and has been identified over a strike length of 12 km on the Redmill-Harvey trend and over 5 km at Grindall.

At Grindall, the Company has successfully targeted and intersected a gold mineralised structure with a strike length of more than 500m. (Figure 6).

The Company has completed high-resolution geophysical surveys to aid the interpretation of the bedrock geology and shear zones beneath the surface geochemical anomaly at Grindall and Redmill. The geological interpretation from the geochemistry and geophysics was used to derive drill targets which will continue to tested as part of the Company's on-going drilling programs.

Previous drilling results include:

• 9m at 0.41g/t Au from 81m, incl. 0.9m at 1.13g/t Au from 82.1m and 1m at 1.14g/t Au from 87m.
• 2m at 0.25g/t Au from 127m and 1m at 0.38g/t Au from 130.6m.
• 3m at 0.30g/t Au from 91m, 2m at 0.43g/t Au from 101m and 2m at 0.70g/t Au from 108m.

Morris

The Morris nickel prospect (Figure 2) is located in the south of the Woodline Project area, where mafic and ultramafic rocks of the Yilgarn Craton are intruded by the Jimberlana Dyke and are in faulted contact with the Northern Foreland of the Albany Fraser Orogen.

The concept for a nickel target at Morris was originally described by Western Mining Services' renowned geologist Dr Jon Hronsky OAM as part of a review of the magmatic nickel sulphide potential of the Jimberlana Dyke. The review identified the intersection of the Keith-Kilkenny, Jerdacuttup and Cundeelee Faults as a possible magmatic foci1.

Tempest Project

The Tempest nickel gold project is located 250km ESE of Kalgoorlie and 90km NE from Nova- Bollinger Mine in the Albany-Fraser orogen (Figure 1). The project has an area of 105 km² and borders the IGO / Rumble Thunderstorm JV project (Figure 5). Drilling at the Thunderstorm JV includes an exceptional intercept of 25m @2.42g/t Au at the Themis Prospect and 4m @ 3.8g/t Au at the Pion Prospect5. More recent drilling includes an equally exceptional intercept of 16m @ 6.69 g/t Au from 42m (including 4m @ 22.2 g/t Au from 50m)6.

The project is located in the Fraser Complex of the Proterozoic Albany-Fraser Orogen and is east of the Archean Yilgarn Craton. The Proterozoic geology is completely obscured by Tertiary fluvio- marine sediments associated with the Eucla Basin, which cover much of the region.

NELSON RESOURCES LIMITED | Address: Level 11, London House, 216 St George's Terrace, Perth, Western Australia 6000 | Phone: [phone]