Perpetual Resources : Beharra Test Work Confirms Exceptional White Sand Impurities

ASX RELEASE

2nd December 2021

ASX:PEC

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CORPORATE onlyDIRECTORY

Executive Chairman Julian Babarczy

Managing Director Robert Benussi

Non-ExecutiveDirector Brett Grosvenor

useNon-Executive Director & Company Secretary George Karafotias

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PROJECTS personalBeharra Silica Sands

Arrowsmith West

Sargon Hub

Eneabba Hub

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CONTACT

223 Liverpool Street Darlinghurst NSW 2010

George Karafotias

[phone]

Robert Benussi

[phone]

ForWe wish to acknowledge the Traditional Custodians of the

land (Yamatji Southern

Regional) on which we are

developing the Beharra

Project, and pay our respects to their Elders past, present and emerging.

Beharra White Sand Test Work confirms 173ppm Fe2O3 End Product with Potential for Higher Quality White Sand Domain

HIGHLIGHTS:

• Final Beharra white sand products from most recent testing confirmed to have low level of impurities;

Beharra White Sand Only	SiO2	Fe2O3 ppm Al2O3 ppm	TiO2 ppm	Mass
Beharra Special White	99.6%	173	1986	342	100%
Beharra Premium White Fine	99.6%	160	1620	290	14%
Beharra Premium White Coarse	99.6%	175	2045	350	86%

• Exceptional improvement in interim product specifications now confirmed when compared to the Beharra Pre-Feasibility Study12;

• SiO2 content remains high at 99.6%

• Fe2O3 reduction of 37% from 276ppm to 173ppm

• Distinct geological sub-domains within the white sand horizon have now been characterised;

- White sand horizon shows clear chemical and lithological/mineralogical zonation between an upper and lower sub-unit

- Upper unit appears to contain higher SiO2 content and lower impurity profile suggesting a higher-premium Beharra final product is possible

• This exciting geological discovery prompts additional test work, which is now being designed and implemented to focus on separate domains delineating the white sand upper and lower units.

• New testing will aim to deliver bulk sample test results early 2QCY22 from distinct domains within the white sand sequence.

• Offtake discussions to now focus on potential for a higher-premium Beharra product, which is expected to further aid interest and market acceptance

• Updates to be provided shortly on Beharra project study pathway

1. Figures below compare the Beharra Premium #44 from the Beharra PFS Study to the Beharra Special White from the current white sand only test results
2. All references to "Pre-Feasibility Study" or "Beharra PFS" or "PFS" in this announcement refer to the Beharra Pre-Feasibility Study that as released to ASX on 17th March 2021, titled "Maiden Ore Reserve and Outstanding Beharra PFS Result Update"

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Perpetual Resources Limited (ASX: PEC, "PEC", "Perpetual" or "the Company") is pleased to announce exceptional white sand test results as well as the delineation of multiple geological/mineralogical domains within the white sand sequence at Beharra. Perpetual now believes there is strong potential that Beharra hosts an even higher quality silica sand product from a sub-domain within the white sand horizon, with a quality that shows strong potential to surpass the exceptional results of the most recent testing.

Representative white sand bulk metallurgical test results from the recent testing program conducted by IHC Robbins in Brisbane have now been received. These results showed a material reduction in the key impurity Fe2O3 (iron oxide) of 37% and have also highlighted that distinct geological / mineralogical differences exist within the high-quality white sand sequence at Beharra. These differences demonstrate a clear chemical demarcation within the white sand domain, indicating the presence of a higher quality upper unit combined with a lower sub-unit, previously understood to be one broadly homogenous white sand horizon. The attributes of the upper unit suggest that an even higher quality final product is possible from this sub-unit, which appears to contain the same (or potentially higher) SiO2 content, but with a significant reduction in key impurities. As the upper unit is a sub-set of the metallurgical results announced today, Perpetual will be exploring the likely thesis that the upper sub-unit will be higher quality than the overall bulk metallurgical test results announced today.

Mr. Julian Babarczy, Executive Chairman of Perpetual, commented on the results, "Today's announcement of multiple geological domains within our already high-quality white sand sequence at Beharra is yet another improvement to our previous understanding of the quality of the Beharra deposit. The results announced today, which are exceptional in their own right and clearly show why Beharra is the leading Midwest silica sand project, point to the proposition for an even higher quality end product, with additional test work now being planned. With a significant amount of drill sample remaining from the recent 86-hole air core program completed in June 2021 at Beharra, we have commenced the collection of multiple bulk samples that will reflect each of the white sand sub-domains with subsequent testing aiming to confirm the presence of the higher quality upper sub-domain that will form the basis of Perpetual's marketing efforts into the high growth Asian ultra-clear glass markets".

Background

After the success of the initial 300kg white sand sampling results at Beharra, announced in April 2021 (please refer to ASX announcement dated 22nd April 2021, titled "Exceptional metallurgical test results at Beharra deliver game changing impurity levels"), Perpetual undertook an additional 86- hole air core drilling program, the results of which were announced in August 2021 (please refer to ASX Announcement dated 30th August 2021 titled "Phase 3 air core infill drilling results confirms high grade white silica sand at Beharra"). This drill program targeted an area of the Beharra deposit

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situated at the southernmost extent of the Beharra Mining License (please see Figure 1 below) and was aimed at extracting white sand only drill samples for use in a bulk representative metallurgical testing program that would confirm the metallurgical characteristics of a white sand only processing scenario over an initial 10 years of mine life at Beharra.

Figure 1 - Location of Beharra drill holes from all drilling campaigns undertaken by

Perpetual, with the red dots representing the most recent 86-hole program

IHC Robbins Testing

The drill samples were sent to IHC Robbins in Brisbane where they were sorted and selected on the basis of the mineral resource modelling and reflecting the proposed mining process (i.e., topsoil removal, exclusion of samples classified as yellow, grey or high silt/clay content unless these occur as thin bands within the planned ore to be mined).

Once the sample was sorted and composites made from each drill hole, they were then combined to produce the master composite sample. This was then subjected to a pre-screen to remove any oversize (+1.0mm) components, followed by a hydrocyclones to reject fines (-75µm), Wet High

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Intensity Magnetic Separation (WHIMS) to remove magnetic fractions, two stages of spiral separation for further classification, an up-current classification stage to reject -150µm fines, followed by a final screening stage. For detail on the flow sheet for this round of testing, please see Figure 2 below.

Figure 2 - Metallurgical testing flowsheet undertaken by IHC Robbins on Beharra white

sand only drill samples

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The only notable difference between the flow sheet shown in Figure 2 on the previous page and the flow sheet that was utilised in the Beharra PFS Study, is the sequencing of the WHIMS stage prior to the spirals in the most recent testing program. This change in order was made to provide a more effective removal of the magnetic iron oxides with a lower loss of potential silica sand pre the spirals. This significantly reduced the duty for the spiral stages and provided an increase in final product yield (i.e., the yield to premium product increased from 74.4% to 77.8%).

Exceptional Metallurgical Results

The results of the IHC Robbins testing showed a substantial increase in overall product quality when compared to the Beharra PFS results. The test results showed no sacrifice to the high SiO2 content concurrent with a significant reduction in the key impurity of Fe2O3, which was 37% lower, when compared to the Beharra PFS results (please see graphical representation in Figure 3 below). To the best of Perpetual's knowledge, these results suggest that the white sand horizon at Beharra is the highest quality known silica sand horizon in the Midwest region, which can produce a very low impurity final product that will ideally service the fast growing clear and ultra-clear glass markets of the Asia Pacific region.

Figure 3 - Comparison of Beharra PFS and Beharra white sand only SiO2 grade and Fe2O3

impurity profile

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