Saturn Metals : Quarterly Activities and Cash Flow Report

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ASX Announcement

27 July 2022

JUNE 2022 QUARTERLY ACTIVITIES REPORT

HIGHLIGHTS

Apollo Hill Gold Resource Upgraded to 1.47Moz

The company published a new Apollo Hill Indicated and Inferred Mineral Resource of 76 Mt @ 0.60 g/t Au for 1,469,000 oz1 reported above a cut-off grade of 0.23 g/t Au within a bulk tonnage optimised pit shell under a heap leach processing scenario2 (Figure 1).

• This represents a significant addition of 525,000 oz from the previous Mineral Resource, an increase of 56% in ounces.
• A total of 41 Mt @ 0.58 g/t Au for 760 koz is classified as Indicated Mineral Resource representing 52% of the total Mineral Resource (a 204 koz addition to the Indicated category from the previous Mineral Resource).
• Saturn has now added 964,000 oz to the Apollo Hill Mineral Resource in just over four years from listing with 128,924 m of Reverse Circulation (RC) and diamond drilling. That is over 7.5 oz added for every metre drilled.
• Saturn's updated Mineral Resource produced an increase in tonnes, ounces, confidence and quality.
• The Apollo Hill Resource is now of a scale to warrant full evaluation of mining options.

Strong Regional Exploration Drilling Results Adjacent to Apollo Hill

The Bob's Prospect - 7km east of the Apollo Hill Mineral Resource

• Follow up RC drilling at Bob's returned several exciting intersections including:
• • 10m @ 2.96g/t Au from 126m - AHRC0834
  • 3m @ 3.41g/t Au from 215m - AHRC0833
• Results extended mineralisation along strike from previously reported significant intersections, which include 5m @ 6.82g/t Au - AHRC0825 and 5m @ 3.15g/t Au - AHRC0827 (ASX 27 January 2022).

The Hercules Prospect - 17km south-east of the Apollo Hill Mineral Resource

• Aircore and RC drilling following up on earlier significant intersections increased the strike length of the Hercules mineralised zone to over 3km with important intersections including:
• • 20m @ 2.27g/t Au from 24m including 8m @ 5.17g/t Au from 24m - AHAC0925
  • 4m @ 4.57g/t Au from 54m - AHRC0836
  • 8m @ 1.06g/t Au from 28m - AHAC0865

Aquarius - 25km south-east of the Apollo Hill Mineral Resource

• New Aircore drilling results at Aquarius show coherent zones of mineralisation that warrant further drilling; significant intersections include:
• • 4m @ 1.86g/t Au from 64m within 9m @ 0.69g/t Au from 64m - AHAC0763
  • 4m @ 1.26g/t Au from 72m within 12m @ 0.63g/t Au from 68m - AHAC0746

Corporate

Strong Cash Position

• The cash position of the Company at 30 June 2022 was A$7.1M.

1. Details of the Mineral Resource which currently stands at 76.6 Mt @ 0.6 g/t Au for 1,469,000 oz Au and a breakdown by category are presented in Table 1a (page 19) of this document) along with the associated Competent Persons statement and details of the ASX announcement that this information was originally published in.
2. 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$1,800/oz to generate a range of pit shells and cut-off grades. A pit shell for a heap leach scenario representing a revenue factor of 1.2 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.

Saturn Metals Limited	9 Havelock Street, West Perth WA 6005	www.saturnmetals.com.au
ABN: 43 619 488 498	ASX: STN	[e-mail]

For personal use only

Saturn Metals Limited (ASX:STN) ("Saturn", "the Company") is pleased to release its Quarterly Activities Report for the period ended 30 June 2022.

ACTIVITIES

APOLLO HILL RESOURCE AREA

Apollo Hill Gold Mineral Resource Upgraded to 1.47Moz

The upgraded Mineral Resource (Figure 1 and 2, and Table 1) totals 76 Mt at 0.60 g/t Au for 1,469,000 oz. This is a significant increase in contained ounces from the previously published resource. It incorporates the results of a highly successful 286-hole, 31,149 m extensional and in-fill drilling campaign completed within the model area after the last Mineral Resource upgrade, which was published in late January 2021, and up until the end of August 2021, when a cut-off date for drilling related resource data was applied.

Table 1 May 2022 Apollo Hill Mineral Resource - See also Table 1a for further details

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$1,800/oz to generate a range of pit shells and cut-off grades. A pit shell for a heap leach scenario representing a revenue factor of 1.2 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 0.23 g/t Au lower cut-off grade was selected for all material types. Classification is according to JORC Code Mineral Resource categories. Totals may vary due to rounded figures.

The growth in the Apollo Hill Mineral Resource over the past 15 months has been driven by:

• The discovery of additional shallower mineralisation in the Southern Apollo Hill corridor, extensional drilling beneath the previous resource shell, and infill drilling within the previous resource shell.
• The results of metallurgical testing on high quality diamond core which have demonstrated the clear potential to achieve low processing costs through simple and scalable treatment options. These low unit operating costs have in turn led to lower cut off grades which have brought additional mineralised material into the Whittle pit shells, improved strip ratios and provided potential for more efficient mining considerations and economies of scale.
• Saturn's improving knowledge of the geological controls at the deposit and refinements in the resource modelling techniques have continued to have a positive influence.

Figure 2 highlights the Mineral Resource block model grade distribution in a SW-NE cross sectional view of the 300 m wide mineralised corridor at the southern end of the deposit. In addition, the diagram shows both the January 2021 Mineral Resource Shell and the new May 2022 Mineral Resource Shell. The mineralised zones become thicker (above the revised lower cut-off grade), and the new Whittle pit shell drives deeper and takes additional mineralisation. Wider mineralised zones ultimately lead to a more efficient mining processes. Figure 2 also illustrates the pit optimisation currently bottoming at 90RL or 280 m below surface.

Importantly, a significant portion of the Apollo Hill resource - 41 Mt @ 0.58 g/t Au for 760 koz - across the shallow levels of the deposit and pit shell (Figure 3) has been classified as Indicated Mineral Resource, representing 52% of the total Mineral Resource.

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Figure 1 - Oblique view 3D Representations of the January 2021 Apollo Hill Mineral Resource model and selected pit optimisation with topography. (a) Refer page 19

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Figure 2 - Oblique block model cross-section (South West - North East, A-A1 on Figure 1 3D diagram) +/-30 m showing gold grade and block locations. (a) Refer page 19

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Figure 3 - Indicated Mineral Resource location relative to the selected open pit optimisation shell >0.23 g/t Au. (a) Refer page 19

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