Resources & Energy : Drilling Intersects Shallow Nickel Sulphides, Cobalt & PGEs

ASX/Media Release

30th March 2022

Springfield Drilling Intersects Shallow Zones of Disseminated Nickel Sulphides with Revenue Elements Cobalt and PGE's

Resources & Energy Group Limited (ASX: REZ or the Company) are pleased to provide an update for the Springfield Prospect. Multi Element Assays from drilling at the Prospect have been received. Broad and shallow zones of disseminated nickel‐bearing sulphides have been reported. The results further demonstrate that the Springfield area is prospective for magmatic Ni sulphide mineralisation. Additional historic drilling results have also been extracted from WAMEX records which support this view.

Highlights Include

•  Four of the last six holes completed at Springfield have intersected nickel sulphides which collectively total 200 m of mineralisation from 826 m of drilling.

•  Peak Result of 33 m @ 0.3% Ni, 0.02% Co and 0.32% S from 50 m down the hole from SFRC15

•  Additional historic results obtained with a best result of 8m @ 0.64% Ni, 0.047% Co and 1.07% S from 52 m down the hole in MZR005.

•  The discovery of magmatic nickel sulphides hosted in highly‐altered komatiites has again highlighted potential for a Ni‐sulphide deposit within the ultramafic package.

•  The prospective area has now been extended to a strike length of 2.5 km, with over 6 km2 of fertile ground identified, with scope to expand this.

•  Planning work for a ground Moving Loop Electromagnetic (MLEM) survey over the prospective komatiitic basement is underway

Discussion

Four of the six holes reported have intersected broad intervals of finely disseminated nickel‐bearing sulphide, with elevated cobalt, palladium, and platinum, supportive of a magmatic origin. Four of the holes drilled have also intersected narrow intervals of gold mineralisation, with a peak result of 2 m @ 3.5 g/t Au from 32 m in SFRC10. The gold mineralisation does not appear to be related to the nickel occurrences and is believed to be associated with geologically‐younger orogenic gold event.

Significant intervals of mineralisation at Cut‐off Grade (COG) of 0.2% Ni and 0.5 g/t Au are presented in Table 1. Drill hole locations are shown on Figure 1. Additional assay and drilling details, together with JORC 2012 Table checklist are provided in accompanying Appendix 1 and 2.

The Springfield Prospect geology comprises a highly‐deformed and altered sequence of Archean rocks which include:

• I) Upper Mafic - High Mg basalts

• II) Sedimentary‐ Pyritic chert, slate, banded amphibolite, fuchsite, tuffaceous metasediments

• III) Lower Ultramafic - Meta‐komatiites

Parts of the Lower Ultramafic meta‐komatiites have been classified by consultant Dr Ben Grguric as meta‐birbirite, a highly‐silicified form of komatiite. A key observation from the petrographic work

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completed in the previous round of drilling and reported in January 2022 by Dr Grguric was the presence of Ni‐Fe sulphides such as pentlandite and violarite present in blebs, and in one case in net‐textures associated with pyrrhotite.

Additional sulphide textures involving pentlandite, pyrrhotite and violarite were noted by Dr. Grguric in disseminated sulphide‐bearing samples from the more recent drilling campaign, in particular from SFRC12 (samples taken over 84‐87 m).

Borehole	COG	From	To	(m)	Au (gt)	Ni (%)	Co (ppm)	Cu (ppm)	Pt+Pd (ppb)	S (%)	Comment
SFRC10	0.5gt/au	32	34	2	3.5
SFRC11	0.5gt/au	60	61	1	0.67
SFRC12	0.5gt/au	22	23	1	0.69
0.2 % Ni	17	23	6	0.32	382	53	36	<0.01	Oxide
0.2 % Ni	84	87	3	0.39	216	66	19	1.13	Sul phi de
SFRC13	0.2 % Ni	65	69	4	0.29	434	259	65	0.93	Sul phi de
SFRC14	0.2 % Ni	38	39	1	0.42	322	70	24	<0.01	Oxide
0.5gt/au	62	64	2	1.86
SFRC15	0.2 % Ni	50	83	33	0.30	226	64	20	0.41	Sul phi de
Including	69	72	3	0.52	439	93	32	0.32	Sul phi de
0.5gt/au	109	111	2	2.29

Table 1 Significant Nickel Intervals at COG of 0.2% Ni, including Co, Cu, Pt+Pd and S, and Au at COG 0.5gt/Au

Figure 1 Lithostructural Interpretation Showing Recent Borehole Locations and Peak Nickel results from Historic Drilling

Superimposed on figure 1, are Nickel results at a COG of 0.3% Ni from historical RAB, auger, and RC drilling which have been extracted from open file WAMEX records. Amongst these records MZR005 completed by Great Australian Resources in 2005 (WAMEX record A072834) is a stand‐out result at Cepline which delivered:

•  8m@ 0.64% Ni, 0.047% Co, 0.3% Pb, 1.55% Zn, 10.1gt/Ag, and 1.07% S from 52m down the hole.

The recent results together with earlier scout investigation, and historical exploration have now opened up a significant area of prospective rocks within the greater East Menzies Gold Project area for nickel, cobalt, copper, and platinum group elements. It allows for the possibility that the ultramafics and nearby lithologies may host larger accumulations of disseminated and massive Ni‐Fe sulphides. The prospect area now has a strike length of approximately 2.5 km, is open at depth, and encompasses a surface area of about 6 km2 refer Figure 1.

To assist with exploration planning over the prospect area, the Company has recently engaged NewGen Geo Pty Ltd to undertake a project‐wide review of best available airborne magnetic datasets and provide advice and guidance on existing geophysical data and additional geophysical studies. The Company is also looking at reprocessing the existing HELITEM data to remove Induced Polarisation effects, which are believed to have hindered past exploration performance. The commission of a ground Moving Loop Electromagnetic (MLEM) survey over the prospective komatiitic basement which now extends between the Cepline, and Emu prospects is also under assessment. The Company has also engaged Dr Ben Grguric from Mineralium Pty Ltd to validate logging, sample for lithogeochemistry and sulphide petrography and provide advice on further exploration strategy.

Competent Person's Statement and Consent

The information in this release that relates to Exploration Results is based on and fairly represents information compiled by Mr. Michael Johnstone Principal Consultant for Minerva Geological Services (MGS). Mr Johnstone is a member of the Australasian Institute of Mining and Metallurgy and has sufficient experience that is relevant to the reporting of Exploration Results to qualify as a Competent Person as defined in the 2012 Edition of the 'Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves'. Mr. Johnstone consents to the inclusion in this release of the matters based on their information in the form and context in which it appears.

About Resources and Energy

Resources and Energy Group Limited (ASX: REZ) is an independent, ASX‐listed mineral resources explorer, and miner with projects located in premier mining jurisdictions in Western Australia and Queensland. In Western Australia, the company's flagship is the East Menzies Gold project (EMGP), situated 130km north of Kalgoorlie. The EMGP represents a +100km2 package of contiguous mining, exploration, and prospecting licenses, which are located within a significant orogenic lode gold province figure 2 and 3. As of End July 2021, the Company has combined gold and silver resources (JORC 2012) of 192k oz/au and 862k oz/ag; refer to table 1.

Table 1 Gold and Silver Resource Summary

For resource growth, the company's focus is presently exploring the eastern and southwestern sides of the project area (Gigante Grande and Springfield Prospects). On the western side of the project area studies to investigate opportunities for renewed mining operations in M29/189 Granny Venn, M29/141 Goodenough, and M29/427 Maranoa have commenced. Most recently the company completed grade control drilling within the Granny Venn open pit and has resumed mining operations at the Granny Venn Open Pit Gold Mine.

Figure 2 East Menzies Gold Project tenement and Operations Plan

Figure 3 East Menzies Gold Project Regional Location Plan

In Queensland, the company has a 12km2 Mineral Development Licence over the Mount Mackenzie Mineral Resource and retains a further 15km2 as an Exploration Permit. These Development and Exploration Licences are in the Connors‐Auburn Arc and are prospective for high, intermediate, and low sulphidation gold and base metals mineralisation. The current resource has been estimated at 3.42Mt @ 1.18g/t gold and 9g/t silver for a total of 129,000 oz gold and 862k oz silver. A metallurgical test program is currently underway to investigate processing options for primary mineralisation below the current resource extents.

Further information:

Richard Poole Executive Director

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Approved for Release by the REZ Board