Rafaella Resources : Quarterly Activities/Appendix 5B Cash Flow Report

Rafaella Resources
Limited
onlyPr jects
ABN: 49 623 130 987
ASX: RFR
SPAIN
use
∙	Santa Comba
	W-Sn development
∙	San Finx
	W-Sn development
CANADA
∙	Belleterre-Angliers
	Ni-Cu-PGM exploration
personal

ForRegiste ed Address

Level 8

175 Eagle Street

Brisbane QLD 4000 AUSTRALIA

Postal Address

GPO Box 2517 Perth

WA 6831 AUSTRALIA

1. [phone]

1. [phone] [e-mail] www.rafaellaresources.com.au

For further information please contact: Rafaella Resources

Steven Turner

Managing Director [phone] [e-mail]

ASX ANNOUNCEMENT

29 July 2022

Rafaella Resources releases Advanced PFS on Santa Comba and doubles its Canadian portfolio

Investment Highlights

Santa Comba tungsten and tin project

• Advanced Pre-feasibility Study released for the open pit development, showing strong economics and scalability.
• Proven and Probable Ore Reserves increased by 63% to 7.48 million tonnes at a grade of 0.15% WO3 (cut-off 0.05%) for 12,374t of contained WO3.

San Finx tin and tungsten project

• Assays from 3 drill cores showed high grades of tin and wolframite,
• Copper assays suggest that the mine could generate copper concentrate by-product credits.
• Post quarter-end the Company received a proposal from the water utility to approve the water discharge permit, subject to certain conditions. Approval of the water discharge permit will be a key milestone in the project's development.

Belleterre-Angliers Project, Canada

• Alotta and Lorraine claims, adjacent to the Midrim and Laforce PGM-Ni-Cu Project acquired, providing a consolidated project in the Belleterre-Anglier Greenstone Belt, Quebec, a tier 1 mining jurisdiction.
• Highly synergistic acquisition effectively doubles the claim size and the total shallow EM prospects to 70, including an additional 7 high priority targets.
• Post quarter-end the Rafaella announced a further 137 anomalies with 20 high priority EM targets located at depths greater than 300m, in line with the Company's geological targeting of deeper VMS feeder systems.

Corporate

• Rafaella's cash position as at 30 June 2022 was $0.688m.
• In late July, a private placement to raise $2.1m at $0.023/share was successfully completed

Rafaella's Managing Director Steven Turner said: "The quarter saw considerable advancement in both Spanish tin and tungsten projects. The Advanced PFS for the open pit at Santa Comba demonstrated the economic attractiveness of the open pit as a standalone development. What is important to note is that the open pit study only included a small proportion of the total potential resource and does not include the permitted underground high-grademine. The study therefore strongly supports the development of Santa Comba as an integrated operation, offering considerable upside through organic expansion. The news in July of the proposal from Aguas de Galicia to approve the water discharge permit at the recently acquired San Finx project comes earlier than anticipated and unlocks the development of this near-termproducing underground mine. Finally, the creation of the Belleterre-AngliersProject in Quebec provides the Company with a highly prospective exploration asset with exposure to key battery metals such as PGMs (necessary for the development of green hydrogen) as well as nickel and copper, mainstays of the move to renewables and the electrification of vehicles in a tier 1 mining jurisdiction. The recently completed private placement will allow the Company to move the Spanish assets towards debt financing and advance the exploration activities in Canada."

Rafaella Resources Limited (ASX:RFR) ('Rafaella' or the 'Company') is pleased to provide its Appendix 5B cash flow statement for the quarter ended 30 June 2022, along with the following operational summary.

onlyRafaella has spent the quarter making significant progress on the Spanish projects and rebalancing the portfolio by consolidating the Belleterre-Angliers Greenstone Belt through the acquisition of the adjacent Alotta and Lorraine claims.

SPANISH PROJECTS

Santa Comba

In June the Company released the findings of an Advanced PFS1 focussed on the open pit operation only. The study showed strong economics with a pre-tax NPV of A$94.8M, an IRR of 32.6% and a payback of 2.3 years post-commissioning. The open pit project is highly complementary to the recommissioning of the high-gradeuseunderground operation. The potential for scale is considerable with a 10.6km2 granite host, 7,000m of underground workings with multiple vein systems, substantial exploration targets identified, and significant

disseminated mineralisation visible near surface.

As part of the Advanced PFS, Proven and Probable Ore Reserves increased by 63% to 7.48 million tonnes at a grade of 0.15% WO3 (cut-off 0.05%) for 12,374t of contained WO3

The Company is now focussed on the completion of the open pit permit application.

personalThe potential quantity and grade of the Exploration Target is conceptual in nature, there has been insufficient exploration to determine a mineral resource and there is no certainty that further exploration

work will result in the determination of Mineral Resources or that the production target itself will be realised.2

The Company confirms that all material assumptions underpinning the production target, or the forecast financial information derived from the production target, in the initial reports continue to apply and have not materially changed.3

San Finx

In late June, the Company announced the assay results from three cores taken from a limited drill campaign conducted by the previous owner in 20154. The assays returned consistent high tin and wolframite grades as well as indicating sufficient copper mineralisation to potentially generate copper credits.

In July the Company received a proposal from the water authority, Aguas de Galicia, to approve the water discharge permit.5 Since the acquisition at the start of January 2022, Rafaella has worked closely with the rior owners to secure this important permit. Approval of the water discharge permit is a key milestone in

moving the development forward.

ForThe Company is currently reviewing the conditions for the approval before reverting to the water utility.

CANADA

Belleterre-Angliers Project

In May the Company announced that it had acquired the Alotta and Lorraine claims, located adjacent to the

1. See ASX announcement dated 20 June 2022 "Advanced Pre-Feasibility Study for Santa Comba open pit confirms strong economics and supports re-opening of integrated mine with 63% increase in Ore Reserves."
2. In accordance with ASX Listing Rule 5.16.5.
3. In accordance with ASX Listing Rule 5.19.2
4. See ASX announcement dated 29 June 2022 "Drill assays from San Finx Sn-W mine confirm significant extensions of the high-grade vein mineralisation."
5. See ASX announcement dated 19 July 2022 "Proposal Received for the Approval of San Finx Water Discharge Permit"

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Midrim and Laforce project.6 This deal consolidated 157.4 km2 of the eastern portion of the Belleterre-Angliers Greenstone Belt, located in the Abitibi-Pontiac Greenstone Sub-Province, under Rafaella's control and elevates the strategic importance of the Canadian operations and thereby rebalancing the Company's portfolio. As part

of the rebalancing, Rafaella withdrew from the Portuguese acquisition previously announced in November only2021.7

usepersonal Figure 1: Regional Geology of the Belleterre-Angliers Project in the Belleterre Angliers Greenstone Belt. Note that Kelly Lake sits outside of the Belleterre-Angliers Project.

The Company's geological model suggests the relatively small but high-grade gabbroic intrusions point to a broader intrusive complex that could host substantial massive and semi-massive sulphide accumulations. In consolidating the two sets of claims in to the single Belleterre-Angliers Project, the Company has greatly nhanced its ability to target the possible deeper feeder systems, the source of the shallower high-grade

deposits located at Midrim, Alotta and Lorraine.

Following a detailed desk-top review, the Company announced post quarter-end that it has identified 137 new EM anomalies at depth including 20 high priority EM targets worthy of follow up investigation.8

The Company is currently focussed on re-processing raw VTEM data to better its understanding of the structures Forat depths greater than 300m, ahead of commencing a targeted drilling campaign.

CORPORATE

Rafaella's cash position as at 30 June 2022 was $0.688m.

On 27 July, the Company announced that it had successfully completed a $2.1m private placement to support the ongoing activities across the two portfolios.9

1. See ASX announcement dated 24 May 2022 "Rafaella Strengthens Position In Canadian High-Grade PGM, Nickel And Copper Sulphide Exploration."
2. See ASX announcement dated 23 November 2021 "Strategic Tungsten Acquisition - Borralha and Vila Verde Projects."
3. See ASX announcement dated 20 July 2022 "Exploration Work Starts at Quebec PGM-Ni-Cu Projects with Field Mapping Highlighting
   Positive Geology and Delineation of New, Deeper EM Plates"
4. See ASX announcement dated 27 July 2022 "Rafaella Completes $2.1m Private Placement."

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Financial commentary

The Appendix 5B for the quarter ended 30 June 2022 provides an overview of the Company's financial activities.

Exploration expenditure for the quarter was $0.499m, including ongoing study work associated with the Santa
Comba project. Corporate and other expenditure for the quarter was $0.726m. The total amount paid to
only
Directors of the Company, their associates and other related parties was $0.100m and includes salary, fees
and superannuation.
Securities on issue at 30 June 2022:
			Listed		Unlisted		Total
			on ASX
	Fully paid ordinary shares	234,787,926	-	234,787,926
use	$0.20 unlisted options expiring 19 July 2022	-	2,500,000	2,500,000
$0.20 unlisted options expiring 27 August 2022	-	2,925,000	2,925,000
$0.20 unlisted options expiring 29 October 2022	-	36,238,095	36,238,095
	$0.20 unlisted options expiring 6 November 2022	-	1,000,000	1,000,000
	$0.20 unlisted options expiring 27 November 2022	-	5,000,000	5,000,000
	$0.12 unlisted options expiring 13 April 2024	-	22,158,329	22,158,329
	$0.20 unlisted milestone 2 performance rights
	expiring 27 August 2022	-	2,900,000	2,900,000
personal	$0.20 unlisted milestone 2 performance rights
expiring 5 March 2023	-	1,000,000	1,000,000
	Unlisted Tranche 1 performance rights expiring 11
	January 2023	-	26,158	26,158
	Unlisted Tranche 2 performance rights expiring 11
	January 2024	-	26,158	26,158
	Unlisted Tranche 1 performance rights expiring 11
	January 2023	-	30,161	30,161
	Unlisted Tranche 2 performance rights expiring 11
	January 2024	-	30,161	30,161
	Unlisted Tranche 3 performance rights expiring 11
	January 2025	-	30,161	30,161
	Total		234,787,926		73,864,223		308,652,149
	Additional Milestone 2 consideration shares yet to	15,000,000	-	15,000,000
	be issued2
Ends
This announcement has been authorised by the Board of Directors of the Company.

For
For further information, please contact:
Rafaella Resources	Media Enquiries
Steven Turner	Giles Rafferty
Managing Director	FIRST Advisers
P: [phone]	P: [phone]
E:[e-mail]

Investor Enquiries

Victoria Geddes

FIRST Advisers

P: [phone]

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About Rafaella Resources

Rafaella Resources Limited (ASX:RFR) is an explorer and developer of world-class mineral deposits. Rafaella holds a battery metals exploration portfolio in Canada located within the prolific Belleterre-Angliers Greenstone Belt ('BAGB'), comprising the Midrim and Laforce and the Alotta and Lorraine high-grade nickel- onlycopper- PGM sulphide projects in Quebec. The Belleterre-Angliers Project has had extensive drilling with some exciting intersections and offer significant upside for the Company in a supportive mining jurisdiction

as modern economies look to transition to renewables.

Rafaella also owns the Santa Comba and San Finx tungsten and tin development projects in Spain. The recently acquired San Finx project lies 50km south from the Company's Santa Comba tungsten and tin mine in Galicia, NW Spain, and sits within the same geological belt. This strengthens the Company's strategic position in the Iberian Peninsula and its long-term goal of being a significant supplier of the critically listed metals of tungsten and tin.

To learn more please visit: www.rafaellaresources.com.au

useForward Looking Statements Disclaimer

This announcement contains forward-looking statements that involve a number of risks and uncertainties. These forward-looking statements are expressed in good faith and believed to have a reasonable basis. These statements reflect current expectations, intentions or strategies regarding the future and assumptions based on currently available information. Should one or more of the risks or uncertainties materialise, or should nderlying assumptions prove incorrect, actual results may vary from the expectations, intentions and

strategies described in this announcement. No obligation is assumed to update forward looking statements if personalthese beliefs, opinions and estimates should change or to reflect other future developments.

Competent Persons Statement

The information in this announcement that relates to the geological setting in Spain is based on, and fairly represents, information and supporting documentation compiled under the supervision of Lluis Boixet Martí, a consultant to the Company. Lluis Boixet Martí holds the title of European Geologist (EurGeol), a professional title awarded by the European Federation of Geologists (EFG). EFG is a 'Recognised Professional Organisations' (ROPO) by the ASX, an accredited organisation to which Competent Persons must belong for the purpose of preparing reports on Exploration Results, Mineral Resources and Ore Reserves under the JORC (2012) Code. Lluis Boixet Martí consents to the inclusion in this announcement of the matters based on his information in the form and context in which it appears.

The information in this announcement that relates to the geological setting in Canada is based on, and fairly represents, information and supporting documentation compiled under the supervision of John Paul Hunt Pr.Sci.Nat.Geol. M.Sc, who has sufficient experience which is relevant to the style of mineralisation and type of deposit under consideration and to the activity being undertaken to qualify as a Competent Person as defined in the JORC Code. SRK ES has not independently verified this information for quality control or quality assurance nor been to the sites. John Paul Hunt is a Member of the South African Council for Natural Scientific Professions and a Fellow of the Geological Society of South Africa and is Principal Exploration Geologist of SRK Exploration Services Limited. John Paul Hunt consents to the inclusion in this report of the

Formatters based on his information in the form and context in which it appears.

The information in this announcement that relates to the metallurgical study work is based on, and fairly represents, information and supporting documentation compiled under the supervision of John Thomas, a consultant to the Company. John Thomas has a Phd in Chemical Engineering (Manchester) and is a professional engineer registered in the province of British Columbia, Canada and a member of the Association of Professional Engineers and Geoscientists of British Columbia, a Recognised Professional Organisation for the purpose of reporting in accordance with Appendix 5a of the Australian Securities Exchange listing rules (the JORC code). John Thomas consents to the inclusion in this announcement of the matters based on his information in the form and context in which it appears.

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