Reward Minerals : OB Potash Project - Update on 2021 Drilling Campaign

ASX RELEASE

onlyuse21 JANUARY 2022 ASX CODE: RWD DIRECTORS

Colin McCavana

Chairman

Rod Della Vedova

Non-Executive Director personalMichael Ruane

Executive Director

MANAGEMENT

Bia ca Taveira

Company Secretary

HEAD OFFICE

Reward Minerals Ltd

159 Stirling Highway

Nedlands WA 6009

PO Box 1104

N dlands WA 6909

T: 08 9386 4699

E:[e-mail]

W:www.rewardminerals.comFor

OFFICER BASIN POTASH PROJECT: UPDATE ON 2021 DRILLING CAMPAIGN

Summary

• Four additional drill holes (OB005 - OB008) and re-drill of OB004 completed during Q4 of 2021
• K-valuesin Groundwater recovered are generally lower in OB005 - OB008 than in OB001 - OB004 but drilling has provided significant enhancement of Palaeovalley System Concept
• Passive Seismic Geophysical Survey planned to further investigate the Officer Basin Palaeovalley System Concept

Reward Minerals Ltd (Reward, or the Company) provides the following update on its 2021 drilling campaign in the Officer Basin in Western Australia.

Five drill holes were completed between August and December 2021. Two of these were drilled as part of the 2020 Phase 1 program, including a re-drill of OB004 (OB004B) and OB005, which also required a re-drill (OB005B) due to technical issues encountered during drilling.

OB006 - OB008 were subsequently drilled between November and December 2021 as part of the Phase 2 drill program, following receipt of Heritage Clearance in October 2021.

All holes were executed using mud rotary drilling techniques for a total of 1,147 metres.

The purpose of the drilling was to follow up on significant, Potash-rich brine flows encountered previously in holes OB001 - OB004 drilled during 2020 (see ASX Release 27 January 2021).

Locations of drill holes and chemical analyses of brines recovered by airlifting techniques are provided in Tables 1 and 2 respectively. A Location Plan is provided in Figure 1.

Drilling		Easting	Northing	Elevation	Hole	Dip	Azimuth
Hole ID	(MGA Zone	(MGA Zone	Depth
Program		51)	51)	(masl)	(m)	(°)	(°)
Phase 1	OB004B	578125	7399201	350	216	90	360
(2020 - 2021)	OB005B	583907	7408866	363	276	90	360
Phase 2	OB006 (MW2)	580001	7407389	342	231	90	360
OB007 (MW4)	577900	7410454	337	222	90	360
(2021)
	OB008 (MW8)	571443	7416392	346	202	90	360

Table 1. Drill Hole Collar information for 2021 drilling at Officer Basin

www.rewardminerals.com

21 January 2022 ASX RELEASE

Reward Minerals Ltd

	Drilling		Hole	Sample	Ca	K	Mg	Na	SO4	Cl	Specific			Total
only	Hole ID	Depth	Depth		Dissolved
Program		(m)	(m)	(mg/l)	(mg/l)	(mg/l)	(mg/l)	(mg/l)	(mg/l)	Gravity			Ions*
Phase 1	OB004B	216	40	1525	450	600	46275	8100	74230	1.085		131180
(2020 -
OB005B	276	276	113	590	67	1937	1770	3337	1.000		7814
2021)
	OB006		32	325	430	292	3748	3870	5190	1.006		13855
	231
	219	700	570	96	2374	3690	3320	1.003		10750
	(MW2)
			225	785	500	96	2166	3810	3010	1.003		10367
Phase 2	OB007		39	455	330	464	12690	4500	20650	1.023		39089
	(2021)
	222	222	640	460	658	18030	6030	29120	1.034		54938
		(MW4)
				196	910	430	668	16570	5460	27610	1.028		51648
		OB008	202	202	900	1480	1526	58300	13470	92620	1.107		168296
		(MW8)	202	940	1500	1590	60560	14400	97940	1.114		176930
			Table 2. Geochemical Assay Results for 2021 drilling at Officer Basin

use*Total Dissolved Ions numbers quoted correspond to the sum of the ion concentrations of columns 5 - 10 in Table 2. This figure may differ somewhat from Total Dissolved Solid (TDS) figures. To convert K values to SOP multiply by 2.228.

personalResults Summary

The 2021 drilling at Officer Basin confirms the presence of substantial groundwater occurrence in the area/s drilled.

However, generally the tenor of dissolved salts in the groundwater recovered from the drill holes was disappointing, particularly in view of the much higher Total Dissolved Ion (TDI) content of brines encountered in holes OB001 - OB004 during 2020.

While it appears that near-surface groundwater is relatively fresh and that TDI generally increases with depth, the drilling crew experienced great difficulty in isolating the upper, freshwater aquifers from deeper, brine-containing aquifers (of significantly higher salinity). Thus, it is difficult to quantify the dilution effect on deeper groundwater by shallower inflow during the process of pumping and subsequent airlift recovery.

Ground conditions including running sands underlain by dense clay formations made drilling difficult with frequent loss of mud circulation, and drilling equipment getting stuck or lost downhole on a regular basis.

Results of the Officer Basin drilling to-date provide the following indications:

1.

For2.

Drilling of the deeper holes OB001 and OB002 (cored to 419.45m and 705.6m respectively) failed to return solid evaporites containing water-soluble potash salts. Core analysis of OB002 to include formation dating to confirm whether the targeted rock sequences were in fact reached, has yet to be finalised. These dating results may provide a guide as to whether deeper drilling to penetrate the Browne Formations sediments is warranted.

The shallower drilling executed in 2021 in holes OB005 - OB008 and limited groundwater recovery trials support Reward's view that a large palaeovalley system runs from (at least) OB001/OB002 in the east across the Warnturr and Timpirr Lakes corridor to the west, a distance of >40km. The low-density tenor of groundwater in recent holes OB005, OB006 and OB007 suggests that these holes are located on the margins of the postulated palaeovalley aquifer. OB008 demonstrated a significant Potash content in groundwater drawn from the bottom of hole at 202 metres. Potassium analysis of 1.49kg/m3 and sulphate of 13.9kg/m3 are regarded as encouraging (SOP equivalent of 3.3kg/m3 of brine).

2

www.rewardminerals.com

21 January 2022 ASX RELEASE

Reward Minerals Ltd

Next Steps

As indicated in note 2. above, Reward believes that a substantial water / brine-saturated palaeovalley exists in the area where holes OB001 - OB008 have been drilled to-date.

onlyPassive seismic is a relatively low-cost,non-ground disturbing technique used extensively in Western Australia to define depth of cover, shallow stratigraphy and direction and depth of palaeovalley water and brine resources for mining and other (Potash) operations. Follow-up drilling has confirmed the effectiveness of the method in other regions.

Based on that assumption, Reward proposes to conduct a geophysical survey involving Passive Seismic Surveying, both

across and perpendicular to the postulated flow direction of the palaeovalley. Survey lines will effectively run parallel to Seismic Line N83-1 (see Figure 1).

useTh implementation of the Passive Seismic Survey will require approval from WDLAC and the Martu Traditional Owners in

ord r to gain access to the Warnturr and Timpirr Lake areas which are of Cultural Significance to the Martu and are Registered Sites under the Aboriginal Heritage Act 1972. Reward will seek to discuss access considerations prior to any further planning of geophysical survey activities.

A thorised for release by the Board of Reward Minerals Ltd

For further information please contact: personalMichael Ruane

Director

About Reward

Reward is an ASX-listedadvanced-stage sulphate of potash exploration and development company. Reward's flagship is its 100%- wned Kumpupintil Lake Potash Project, located east of Newman in north-western Western Australia. The Project hosts Australia's largest high-grade brine SOP deposit in a region with the highest evaporation rate. Key environmental approvals are in place and development can commence on completion of final feasibility studies, secondary regulatory approvals and achievement of funding.

Reward completed a detailed, conservative Pre-Feasibility Study which was updated with improved logistics in July 2018. An Indigenous Land Use Agreement is in place with the Martu people, traditional owners of the land upon which Kumpupintil Lake is situated.

Forward-Looking Statements

This document may contain certain "forward-looking statements". When used in this document, the words such as "could", "plan", "estimate", "expect", "intend", "may", "potential", "should", and similar expressions are forward-looking statements. Although Reward believes that the expectations reflected in these forward-looking statements are reasonable, such statements involve risks and

Forunce tainties, and no assurance can be given that actual results will be consistent with these forward-looking statements.

F r a more detailed discussion of such risks and uncertainties, see Reward's other ASX Releases, Presentations and Annual Rep rts. Readers should not place undue reliance on forward-looking statements. Reward does not undertake any obligation to release publicly any revisions to any forward-looking statement to reflect events or circumstances after the date of this ASX Release, or to reflect the occurrence of unanticipated events, except as may be required under applicable securities laws.

Exploration Results - Competent Persons Statement

The information in this report that relates to Exploration Results, Brine Assays and Analyses is based on information compiled by Dr Michael Ruane, a Competent Person who is a Member of The Royal Australian Chemical Institute. Dr Ruane is an Executive Director of Reward Minerals. Dr Ruane has sufficient experience that 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 2012 Edition of the 'Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves'. Dr Ruane consents to the inclusion in the report of the matters based on the information in the form and context in which it appears.

3

www.rewardminerals.com

21 January 2022 ASX RELEASE

Reward Minerals Ltd

For personal use only

Figure 1. Officer Basin executed and planned drill holes as of January 2022, located just 100km east of Reward's JORC-defined

SOP Resource of Kumpupintil Lake.

Note: Officer Basin Tenements are Registered under Kesli Chemicals Pty Ltd, which holds 100% beneficial interest in its

Tenements on behalf of Reward Minerals Ltd.

4

www.rewardminerals.com

21 January 2022 ASX RELEASE

Reward Minerals Ltd

Appendix 1. JORC Criteria and Commentary

1. Sampling Techniques and Data

only

JORC Code explanation

Commentary

Criteria

Sampling

Nature and quality of sampling (e.g. cut channels,

Groundwater sampling from OB005 - OB008 involved airlifting of

techniques

random chips, or specific specialised industry standard

water at various downhole depths by setting the air inlet hose at

measurement tools appropriate to the minerals under

the selected test horizon down the cased section of hole or inside

investigation, such as down hole gamma sondes, or

the drill rod stem.

handheld XRF instruments, etc.). These examples

should not be taken as limiting the broad meaning of

The samples were airlifted at regular intervals over a period of

sampling.

several hours with monitoring of the specific gravity (SG) of the

use

Include reference to measures taken to ensure sample

water as delivered from the hole.

representivity and the appropriate calibration of any

Bulk samples were collected from the airlift discharge hose in a

measurement tools or systems used.

20-litre bucket.

Aspects of the determination of mineralisation that are

Material to the Public Report.

Sub-samples of 250ml were taken from the bulk, labelled and

In cases where 'industry standard' work has been

delivered to the Perth Office.

done this would be relatively simple (e.g. 'reverse

Samples of similar Specific Gravity were composited for analysis

circulation drilling was used to obtain 1 m samples

by an independent laboratory.

from which 3 kg was pulverised to produce a 30 g

charge for fire assay'). In other cases more

Lithological

samples

were collected

nominally

at

1-metre

personal

explanation may be required, such as where there is

downhole intervals. These have not been assayed as yet.

coarse gold that has inherent sampling problems.

Geological

logging

is

ongoing and

is

being completed by a

Unusual commodities or mineralisation types (e.g.

submarine nodules) may warrant disclosure of detailed

information.

Drilling

Drill type (e.g. core, reverse circulation, open-hole

Vertical mud rotary drilling was conducted using a Hanjin D&B

techniques

hammer, rotary air blast, auger, Bangka, sonic, etc.)

Multi 35 drilling rig employing tricone and PDC bits.

and details (e.g. core diameter, triple or standard tube,

depth of diamond tails, face-sampling bit or other type,

No coring was undertaken.

whether core is oriented and if so, by what method,

etc.).

Drill hole completion details are provided in Table 1.

Drill sample

Method of recording and assessing core and chip

Lithological samples were collected nominally at 1-metre

recovery

sample recoveries and results assessed.

downhole intervals. Samples recovered are for geological logging

and qualitative purposes only.

Measures taken to maximise sample recovery and

ensure representative nature of the samples.

All water samples were collected by airlifting. See Sampling

Whether a relationship exists between sample

Techniques for further information.

recovery and grade and whether sample bias may

have occurred due to preferential loss/gain of

fine/coarse material.

Geologic

Whether core and chip samples have been

qualified geologist.

Logging

geologically and geotechnically logged to a level of

detail to support appropriate Mineral Resource

For

All lithological samples

collected during

drilling are qualitatively

estimation, mining studies and metallurgical studies.

logged at nominal 1-metre intervals.

Whether logging is qualitative or quantitative in nature.

Core (or costean, channel, etc.) photography.

The total length and percentage of the relevant

intersections logged.

Sub-sampling

If core, whether cut or sawn and whether quarter, half

250ml sub-samples were taken from the airlifted water samples.

or all core taken.

techniques

Upon

receipt of

the

samples

at

the Company's

in-house

If non-core, whether riffled, tube sampled, rotary split,

and sample

laboratory,

samples were sorted

and

reconciled

against the

etc. and whether sampled wet or dry.

record generated on-site.

preparation

For all sample types, the nature, quality and

High Total Dissolved Solids (TDS) solutions were diluted by 50x

appropriateness of the sample preparation technique.

prior

to dispatch

to an independent

laboratory.

Results are

Quality control procedures adopted for all sub-

corrected at the laboratory to account for the advised dilution (if

sampling stages to maximise representivity of

dilution has been carried out).

samples.

Measures taken to ensure that the sampling is

See Sampling Techniques above for further information.

5

www.rewardminerals.com