Perpetual Resources : Completion of Priority White Sand Testing

ASX RELEASE

26th May 2022

ASX:PEC

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CORPORATE

onlyDIRECTORY Executive Chairman Julian Babarczy

Managing Director

Robert Benussi

Non-Executive Director useBrett Grosvenor

Company Secretary Nicholas Katris

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PROJECTS

Beharra Silica Sands personalArrowsmith West

Sargon Hub

Eneabba Hub

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CONTACT

223 Liverpool Street Darlinghurst NSW 2010

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.

Completion of High Priority White Sand Sub-

Domain Bulk Testing Program

HIGHLIGHTS:

• Final test work stages completed for the high priority Upper White (UW) and Lower White (LW) sub-domains, including feed preparation, magnetic separation, spirals and up current classification.
• UW and LW sub-domains are anticipated to produce the highest product specification at Beharra, with fast tracked test work now complete and finished product sent for independent laboratory assay.
• Assay turnaround expected within 2-3 weeks as well as final product samples to be shipped to interested end users.
• Further testing continues on other sub-domains with results to follow in due course.
• Testing is targeting the identification of high-gradesub-domains with low impurity profile, for a target end product that would suit the rapidly growing PV solar cell glass covering market.
  Perpetual Resources Limited (ASX: PEC, "PEC", "Perpetual" or "the Company") is pleased to provide an additional update on the previously commenced bulk sampling program underway with IHC Mining (IHCM), analysing the various white sand sub- domains at Beharra (for further background information, please see ASX Announcement dated 15th February 2022, titled "Sampling of high purity white sand zones underway at Beharra" as well as ASX Announcement dated 3rd May 2022 titled "Beharra White Sand Bulk Testing Update").
  As was previously announced, the testing of the five discrete sub- domains at Beharra1 had progressed through the initial washing and screening stages. Subsequent to that update, Perpetual made the decision to fast track the full flow sheet testing of the Upper White (UW) and Lower White (LW) sub-domains, which are considered the highest likelihood of delivering an end product that is high in silica content and low in key impurities.

1 The five discrete sub-domains at Beharra are (in order of highest to lowest in the stratigraphy): Yellow (Y), Upper White (UW), Lower White (LW), Grey Above the Water Table (GA) and Grey Below the Water Table (GB)

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Perpetual confirms that the UW and LW sub-domains have now progressed through the additional stages of wet high intensity magnetic separation (WHIMS), spirals and up-current classification. onlyResultant end product samples have been sent to an independent testing laboratory for final product

assay, with priority assay turnaround anticipated to be received within the next 2-3 weeks.

After receiving final product assays (which will be the subject of a future ASX announcement), Perpetual will then ship significant quantities of end product samples to potential off take partners for end user testing, which is an essential step in the process of progressing off take discussions. Perpetual is already in dialogue with a significant number of interested groups who are awaiting final results and samples.

useCommenting on the progress, Mr. Julian Babarczy, Executive Chairman, said, "The finalisation of full flow sheet testing for the Upper and Lower White sub-domains is a significant milestone for our Company and we now eagerly await the final product assays in coming weeks. Our off-take outreach program has gained significant momentum in recent weeks, with a number of large glass manufacturers and other low impurity sand end users and trading groups expressing a keen desire to receive our final results and samples. With PV-solar cell manufacturing expected to undergo

substantial growth in coming years in response to global decarbonization efforts, our strategy is to personalsteadfastly align our product quality and sales efforts to this strong tailwind. We look forward to

updating shareholders in coming weeks with additional information". For

Figure 1: Upper white sub-domain undergoing spiral testing.

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For personal use only

Figure 2: Lower white sub-domain undergoing spiral testing.

Figure 3: Lower white sub-domain after spiral testing.

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For personal use only

Figure 4: Lower white sub-domain after up current classification and treatment by full flow sheet.

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About Perpetual Resources Limited

onlyPerpetual Resources Limited (Perpetual) is a focused explorer of silica sands, aiming to produce high purity silica for export to the high growth Asian markets.

Perpetual's flagship asset, the Beharra Project (Beharra) is located 300km north of Perth and is 96km south of the port town of Geraldton in Western Australia. Access to the Project from Geraldton (to the north) and Perth (to the South) is via the sealed Brand Highway, thence approximately 8.5km east on the Mt Adams unsealed road providing access to the center of the tenure.

For personal use

Mt Adams Road which Intersects the Beharra Tenement (left) and Brand Highway

Intersection with Mt Adams Rd (right)

The port of Geraldton is an established bulk material handling facility and is currently utilised for the export of bulk materials, minerals, grain and concentrates. Commodities currently exported via Geraldton Port include grains, copper concentrates, zinc concentrates, nickel concentrates, mineral sands, talc, and iron ore.

Geraldton Port - Operated by Mid-West Port Authority

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