PVW Resources advised that it has identified a significant new REE exploration target at its 100%-owned Tanami Heavy Rare Earth and Gold Project in Western Australia following an important breakthrough by its exploration team. The high-priority exploration target has emerged as a result of reinterpretation of the structural geology around the unconformity-hosted REE mineralisation intersected in the Company's recently completed 2022 drilling program at the Watt's Rise prospect. An extensive mapping program conducted by a leading consultant geologist has resulted in the identification of a north-west oriented Breccia Zone which is a possible control on REE mineralisation in the area.

As a result, a new target has emerged based on the interpreted extension of this structure at depth where it intersects the unconformity at a high angle. Tanami Project review - REE The recent completion of the 2022 field campaign, comprising 10,727m of Reverse Circulation drilling, 16,206m of air-core drilling, ground gravity surveys and detailed mapping of the Castella and Watts Rises prospects has put PVW in a very informed position for its 2023 exploration program. Positive drill results combined with initial mapping outcomes have already identified new REE targets.

The full review of all levels of data is due in January 2023 and will be the pre- requisite to identifying and providing the technical support for new targets. The REE mineralisation model at the Tanami is an unconformity/structurally controlled HREE system which is constantly being refined and developed as more geological data is acquired. During the 2022 exploration program, PVW tested the unconformity for mineralisation at both Castella and Watts Rise.

At Watts Rise, REE anomalism was intersected along the unconformity at the contact between the Killi Killi Formation and Pargee Sandstone, and higher-grade mineralisation in the Pargee Sandstone approximately 50-60m stratigraphically above this unconformity. During the recent mapping program led by consultant geologist, Carl Brauhart, the brecciated structure north of the Watts Rise mineralisation was highlighted. This structure is approximately 1km long and up to 5m wide and disappears undercover to the north-west and south-east.

Field maps are currently being digitised into a GIS format for use on plans and sections. When putting the mapping and interpretation into context with the drilling results at Watts Rise, a significant new REE target emerges. Mineralisation at the unconformity and in the Pargee Sandstone.

The breccia zone mapped as dipping to the south-east, is sub-parallel to 2022 drilling and therefore the conceptual location has not been tested by current drilling. While the structure is not mineralised at surface, it could control mineralisation along the unconformity and within the Pargee Sandstone. The breccia at surface displays intense silicification and a level of brecciation not seen elsewhere within the Pargee Sandstone, which suggests the breccia could serve as a REE fluid pathway and a feeder to the system.

In addition, a geochemical discontinuity appears between holes drilled either side of the interpreted position of the breccia zone. A distinct increase in aluminium content is seen in drill holes within the interpreted footwall when compared to those in the hanging wall of the breccia zone. Mineralising fluids migrating up the structure from depth could intersect the unconformity and suitable host rock within the Pargee Sandstone or Killi Killi Formation and precipitate REE mineralisation as is evident in the 2022 drilling results (max 1.43% TREO @ 63m, 90% HREO/TREO, 22TARC101).

This could potentially leave the segment of the breccia structure near surface devoid of REE mineralisation. Importantly, the segment of breccia structure (1) below the unconformity in the Killi Killi Formation represents a part of the system that could host untested mineralisation. The size of the structure and continuity away from the mapped outcrops (down-dip and along strike) is uncertain, however based on the interpretation, the target is clearly a priority for the Company's next drilling campaign.

Ground gravity survey interpretation, due in December 2022, will be useful in further developing this target. Recognition of the difference between the well-defined mineralisation at Watts Rise and the more dispersed mineralisation at Castella highlights a number of important points: Based on current information, the unconformity/Pargee Sandstone host at Watts Rise has provided a better trap for REE mineralisation. The mineralisation intersected so far at Castella represents dispersed mineralisation along the unconformity.

The unconformity and immediately adjacent lithologies have acted as a suitable host over a large area, however a local control (chemical or rheological) that potentially controls and constrains the REE mineralisation has not been intersected While breccia zones have been intersected in drilling and mapped at Castella, they are locally not large enough to develop significant REE mineralisation. However, their presence and the fact they are mineralised suggests there is a larger controlling structure nearby. There are a number of other general observations and comments made following the initial mapping outcomes.

Drilling at Watts Rise this year was orientated to the south. This is sub-parallel to the dip of the breccia structure. The drilling was correctly oriented targeting the unconformity, however the breccia structure needs to be drilled with holes dipping towards the north-east, orientated to target the south-east dipping structure.

Schematic diagram based on observations and field measurements, and further modelling will refine this interpretation. It needs to be noted that structures of this nature could be inconsistent and irregular at depth, influenced and moved by other local and regional structures.