Saturn Metals : Excellent Metallurgical Results

ASX Announcement 29 March 2022

EXCELLENT METALLURGICAL RESULTS - POTENTIAL FOR LOWER COST MINERAL PROCESSING OPTIONS AND SCALABILITY AT APOLLO HILL

Saturn Metals is currently undertaking comprehensive metallurgical test work to assess the potential for a bulk tonnage gold mining operation at Apollo Hill. The Company is pleased to announce excellent results which highlight the deposit's amenability to simple low-cost mineral processing methods, including heap leach, which can in turn drive lower stripping ratios and efficient mining processes.

Many of the world's large scale gold mining operations employ low cost heap leach processing and this method accounts for approximately 46% of global gold production(a). The reported global average grade of heap leach operations is 0.7g/t and on average 65% of gold is recovered(a). The latest results support Saturn's view that Apollo Hill has the potential to join this group.

HIGHLIGHTS

Excellent Recovery at Target Crush Sizes

• • An Apollo Hill composite sample derived from high quality diamond core, gave an excellent overall recovery of 81% from intermittent bottle roll tests, preceded with gravity separation, using high pressure grinding roll (HPGR) crushing to 8mm P100 (targeted commercial fresh rock crush size).

Results Verify Previous Column Leach Recovery Values

• • Results complement, confirm, and potentially improve on column leach test work published by the Company(b) where recovery was 73% at 8mm crush on an Apollo Hill typical drill core composite.

First Rate Recovery of Lower Grades Demonstrates Economic Potential

• • A strong average recovery of 77% was obtained at a ~8.6mm P100 average crush size in the intermittent bottle roll tests (IBRT's) for Apollo Hill's major material types, across the deposit's lower grade range (0.2g/t Au to 0.6g/t Au), using conventional stage crushing and High Pressure Grinding Rolls (HPGR) sample subsets.

• • Importantly, this indicates gold recovery may be viable from material which would normally be considered marginal in the absence of a low unit cost processing solution and highlights the potential for the use of lower cut off grades to improve economics through greater resource utilisation and application of bulk mining methods.

  Figure 1 highlights the potential to improve stripping ratios at lower cut off grades.

Next Steps

• • Following on from these results, the Company has commenced additional column leach test work (Plate 2) to provide more information on the scalability of the heap leaching technique.

Positive Information for inclusion in the next Resource Upgrade

• • The metallurgical test work results, the outcomes of a preliminary mineral process engineering cost study nearing completion(c), and data from Saturn's successful 2021 drilling campaign (refer recent 2021 ASX announcements and Quarterly Reports) will be utilised to derive important input information for open pit optimisation studies which form part of the upcoming resource upgrade process.

Plate 1 - Managing Director Ian Bamborough checking in on important Apollo Hill Intermittent Bottle Roll Leach Tests at Bureau Veritas's Canningvale Metallurgical Laboratory - December 2021. Crushed rock at various sizes was subjected to a weak cyanide leach solution to extract gold.

(a), (b) & (c): See References Table, page 5.

Saturn Metals Limited ABN: 43 619 488 498

9 Havelock Street, West Perth WA 6005

ASX: STN

[e-mail]

Plate 2 - Apollo Hill Heap Leach column tests underway at Bureau Veritas in Canningvale (March 2022). The tests are being performed across a range of rock types and gold grades and crushing techniques to assess leaching kinetics

(speed and efficiency) and scalability.

Figure 1 - Section view of 2021 Apollo Hill Mineral Resource Block Model at various cut off grades

Saturn Metals Limited (ASX:STN) ("Saturn", "the Company") is pleased to announce significant results from metallurgical test work on samples of mineralised material collected from diamond core drilling at the Apollo Hill deposit within its 100%-owned Apollo Hill Gold Project, 60km south-east of Leonora in the Western Australian Goldfields.

This test work is a key part of the Company's ongoing strategy to grow and progress the Apollo Hill Mineral Resource, which was last upgraded over one year ago to 944,000 ounces1. (28 January 2021). Results, as outlined in the 'Highlights' section of this report, demonstrate the clear potential to achieve lower processing costs through simpler and scalable treatment options. Lower unit operating costs can in turn lead to lower cut off grades which allow for the processing of additional mineralised material, improved strip ratios and more efficient mining processes and economies of scale.

Appendix 1 provides relevant summary data for the intermittent bottle roll leach tests completed by Bureau Veritas in Perth in a mix of Perth and site waters2.. The Company utilises the professional services of independent metallurgical consultant Mr. Gary Jobson of Macromet to assist with its test work and planning schedules.

In addition to the 'Highlights' on page 1, test work also showed: Low Reagent Use

• • Cyanide consumption was considered consistently low at an average of only 1.42kg/t. Lime addition was minimal at an average rate of only 1.68 kg/t highlighting the clean nature of the tested material types and site water and the potential for low reagent usage.

Strong Percolation and Favourable Agglomeration Results

• • Efficient percolation results on various rock types across the deposit showed a very respectable average rate of 14,447 L/m2/hr percolation (slump 5.6%), as compared to a traditionally acceptable rate of 10,000 L/m2/hr and where full-scale requirements are substantially lower again. An average cement addition rate of 1.55 kg/t was recorded for agglomeration with site water to reach the very acceptable percolation characteristics2. Good percolation results and low agglomeration cement requirements bode well for heap leaching techniques.

Uniform Characteristics by rock type and geography

• • Strong performance was noted across the deposits geography and rock types suggesting the potential for simple ore scheduling.

Normal Rock Processing Characteristics

• • Results of rock competency and crushing tests indicate amenability for crushing operations via either conventional or HPGR methods. Crushing characterisation testing also demonstrated values typical of other Archean lode gold systems in production in Western Australia. For example, the Impact Work Index (essentially a measure of crushability) returned average results for Apollo Hill's key rock types of approximately 16kWh/tonne and an Abrasion Index of 0.125.

Capital Efficiency Options

• • Recovery results for conventional staged crushing sample subsets were generally lower than for HPGR sample subsets. The HGPR method effectively produces a greater proportion of fine material for a nominal P100 size and effects have also been generally reported with respect to micro-cracking and improved cyanide solution ingress (improved porosity). HPGR crushing could provide a further avenue for improvements in gold recovery across the deposit.

Saturn Managing Director Ian Bamborough said: "These excellent results from a comprehensive Apollo Hill sample set, provide a decisive weight of evidence for the application of simple cost-effective mineral processing scenarios at lower cut off grades.

The metallurgy of Apollo Hill is a great differentiator as it gives the opportunity for the Company to consider shifting the scale of the deposit's development. It gives Apollo Hill strong mineral processing and capital optionality and arguably an economic head start.

We plan to utilise these new results and the results of our more mill-based metallurgy program as reported in October 2021, to examine the potential for economies of scale in our current resource upgrade process and subsequent studies."

This announcement has been approved for release by the Saturn Metals Limited Board of Directors.

1. Details of the Mineral Resource which currently stands at 35.9 Mt @ 0.8 g/t Au for 944,000 oz Au and a breakdown by category are presented in Table 1a (page 4 of this document) along with the

IAN BAMBOROUGH Managing Director

associated Competent Persons statement and details of the ASX announcement that this information was originally published in.

2.

Intermittent bottle roll tests were undertaken in some instances in Perth tap water (40% of tests) and in some instances in Site water (60% of tests). Agglomeration testing was undertaken using site water.

For further information please contact:

Ian Bamborough

Managing Director Saturn Metals Limited [phone]

Competent Persons Statement - Resource:

1.The information for the Mineral Resource included in this report is extracted from the report entitled (Apollo Hill Gold Resource Upgraded To 944,000oz) created on 28 January 2021 and is available to view on the Saturn Metals Limited website. Saturn Metals Limited confirms that it is not aware of any new information or data that materially affects the information included in the original market announcement and, in the case of estimates of Mineral Resources or Ore Reserves, that all material assumptions and technical parameters underpinning the estimates in the relevant market announcement continue to apply and have not materially changed. Saturn Metals Ltd confirms that the form and context in which the Competent Person's findings are presented have not been materially modified from the original market announcement.

Table 1a* January 2021 Mineral Resource Statement; 0.4 g/t Au cut-off by oxidation domain within a 1.4 revenue factor pit shell to represent reasonable prospects for eventual economic extraction.

Preliminary Whittle pit optimizations using approximated regional mining and processing costs for multiple processing scenarios have been run on the resource model using a gold price of US$1,700/oz to generate a range of pit shells and cut-off grades. A pit shell for a combined mill and heap leach scenario representing a revenue factor of 1.4 was selected as a nominal constraint within which to report the Apollo Hill Mineral Resource, thereby satisfying the JORC Code requirement for a Mineral Resource to have reasonable prospects for eventual economic extraction. Other relevant information is described in the JORC Code Table 1 as appropriate. A nominal 0.4 g/t Au lower cut-off grade was selected for all material types. There is no material depletion by mining within the model area. Estimation is by localised multiple indicator kriging for Apollo Hill zone and the Apollo Hill Hanging-wall zone; estimation of Ra and Tefnut zone used restricted ordinary kriging due to limited data. The model assumes a rotated 5 m by 12.5 m by 5 m RL Selective Mining Unit (SMU) for selective open pit mining. The final models are SMU models and incorporate internal dilution to the scale of the SMU. Technically the models do not account for mining related edge dilution and ore loss. These parameters should be considered during the mining study as being dependent on grade control, equipment and mining configurations including drilling and blasting. Classification is according to JORC Code Mineral Resource categories. Totals may vary due to rounded figures.

Competent Persons Statement - Exploration:

The information in this report that relates to exploration targets, exploration and metallurgical results is based on information compiled by Ian Bamborough, a Competent Person who is a Member of The Australian Institute of Geoscientists. Ian Bamborough is a fulltime employee and Director of the Company, in addition to being a shareholder in the Company. Ian Bamborough 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'. Ian Bamborough consents to the inclusion in the report of the matters based on his information in the form and context in which it appears.

References: & Sources

• (a) Sorting through the Heap, Source: - Canadian Mining Journal, Web Article, 1 September 2020 on Costmine Publication 2020 Gold Heap Leach Cost Estimating Guide, available atwww.costmine.com; "The average grade at 275 of these projects and operations ranged from 0.11 to 6.91 g/t gold, with an average of 0.7 g/t gold".

• (b) Saturn Metals Limited Presentations - Metallurgy Slide; ASX Announcement by previous Apollo Hill project owner, Peel Mining Limited (ASX:PEX) dated 16 June 2016.

(c)

CPC Engineering, Perth. Preliminary Mineral Process Engineering Cost Ctudy nearing completion - 23 March-2022.