Reedy Lagoon Corporation Limited received the final report from the CSIRO study conducted on the Burracoppin magnetite deposit in Western Australia. The study is the product of the Company's engagement with Australia's national science agency, CSIRO, which commenced in May 2021. The study has contributed to the development of a new method for quantifying the iron content of deposits of magnetite, referred to as the "MagResource" method.

The MagResource method utilises the unique density and magnetic properties of magnetite (a mineral comprised predominantly of iron and oxygen), to establish a linear relationship with iron content that can then be used to convert a magnetic forward model or inversion into a volume of contained iron. The study has included the acquisition of substantial new data from analysis of drill core. Orientated samples were collected by boring existing drill core.

These rounds were then analysed to recover magnetic, density, geochemical, mineralogical and structural data. These data were used to constrain the modelling of the airborne magnetic data acquired in 2011 and reprocessed by CSIRO during the current study. The modelling of the airborne magnetic data has resulted in the generation of 3D shapes that represent potential magnetite mineralisation both in space and in content of magnetite.

The results of the study have been used by Reedy Lagoon to determine an Exploration Target of 240 to 300 million tonnes at 20 to 25 Wt% iron at Burracoppin. The Exploration Target stated above is a product of research which, whilst based on robust physics, is conceptual in nature. There has been insufficient exploration to define a Mineral Resource and it is uncertain if further exploration will result in the determination of a Mineral Resource.

It is noted that the Exploration Target released on 12 February 2021 is determined for a restricted area of the Burracoppin magnetite deposit within which drilling is planned and described in its release. This earlier Exploration Target is not being replaced. The 3D nature and spatial geometry interpreted for the new Exploration Target allows for the planning of drillholes to test the accuracy of the method and potentially allow for the definition of Mineral Resources in a more efficient and timely manner than would otherwise be required.

The initial planned holes are designed to test both Exploration Targets where there is an overlapping interpretation. Current practice normally requires drilling hundreds of holes into a potential resource to determine metal content which is extrapolated between holes using statistical methods. By developing methods to quantify iron resources using 99% non-invasive technology the company can minimise impacts for local communities and reduce the costs for the early stages of exploration, leading to faster resource definition and greater certainty for investors and stakeholders.

This is the potential seen in the MagResource method that collaboration with CSIRO is developing. The Burracoppin magnetite deposit is part of Reedy Lagoon's Burracoppin Iron Project which plans to produce pig iron from locally sourced iron and carbon. The results of the CSIRO work support the potential of the Burracoppin magnetite deposit to be the source of iron for the project.

Further drilling at the Burracoppin magnetite deposit will not only seek to determine a Mineral Resource, but if successful also help pioneer a new resource determination tool ­ CSIRO's MagResource method. The project was made possible by CSIRO Kick-Start, an initiative that provides funding and support for innovative Australian start-ups and small businesses to access CSIRO's research expertise and capabilities to help grow and develop their business.