Strategic Energy Resources : Assays Confirm Nickel Sulphide Mineralisation at Kalarka

ASX ANNOUNCEMENT

20 DECEMBER 2021

ASX: SER

For personal use only

EXPLORATION UPDATE - ASSAYS CONFIRM NICKEL SULPHIDE

MINERALISATION AT KALARKA

HIGHLIGHTS

• Results significantly increase the prospectivity of the Tea Tree Ni-Cu Prospect
• Gravity interpretation identifies potential nickel "ore junction" and related chonoliths
• Leading Ni sulphide expert Dr Steve Beresford engaged to guide exploration

Strategic Energy Resources Limited (ASX: SER) is pleased to announce drilling results from the recent two-hole 1574m diamond drilling program at the Kalarka Prospect within the Canobie Project, Northwest Queensland. Both holes intersected thick intervals of nickel-elevated ultramafic rock with semi massive sulphide zones. Drill holes were collared 535m apart; best intersections included:

• CNDD001A:

• 1. 132m of disseminated Ni-Cu sulphides within ultramafic @ 0.1% Ni from 507m including 2m @ 0.68% Ni, 0.17% Cu (from 635m)
• CNDD002:
• 1. 43m of disseminated Ni-Cu sulphides within ultramafic @ 0.1% Ni from 615m and 0.6m @ 0.96% Ni, 0.11% Cu (from 661.6m)

Strategic Energy Resources Managing Director, Dr David DeTata, said, "The Company is highly encouraged by the results from these two drill holes at Kalarka. The significant intervals of ultramafics with disseminated sulphides plus the narrower nickel bearing semi massive sulphides demonstrates the potential for the greater Canobie Project to host more significant accumulations of Nickel sulphide mineralisation".

"Furthermore, the reinterpretation of gravity data in light of these results, has led us to view that the Kalarka / Tea Tree region is part of a cluster of intrusions - termed an "ore junction". Potential chonoliths (confined chambers within the host intrusion) extend both north and south, which is a controlling feature of magmatic nickel deposits worldwide such as the Nebo-Babel deposit in the West Musgraves and the Nova-Bollinger deposit in the Fraser Zone, Western Australia."

Figure 1: Semi massive sulphide intersected in CNDD001A at 662.1m (part of 0.6m interval containing 0.96% Ni)

Strategic Energy Resources Limited	www.strategicenergy.com.au
ABN 14 051 212 429	E: [e-mail]
Level 4, 100 Albert Road, South Melbourne VIC 3205	T: [phone]

ASX ANNOUNCEMENT 20 DECEMBER 2021 ASX: SER

ASSAY RESULTS AND OBSERVATIONS

only	All assay results have been returned for both drill holes, with significant intersections contained
	within Table 1 & 2.
		Hole ID			From			To (m)		Width			Ni %		Cu ppm		Pt ppb		Pd ppb		Sulphide texture and Average %
				(m)				(m)
		CNDD001A		507			639			132			976ppm			134									Disseminated (2-3% pyrrhotite)
		including		614			639			25			0.16%				466									Disseminated (3-5% pyrrhotite)
use		including		635			637			2			0.68%				1730			175		260			Semi massive (40-50% pyrrhotite)
			792		793		1			0.19%				643									Semi massive (40-50% pyrrhotite)
	CNDD002		573		574		1			0.34%				171									Semi massive (40-50% pyrrhotite)
				615		658		43			979ppm		104									Disseminated (2-3% pyrrhotite)
				661.6		662.2		0.6			0.96%				1100			160	150			Semi massive (40-50% pyrrhotite)
												Table 1: Kalarka Prospect Significant Assay Results
		Hole ID			From (m)		To (m)		Width (m)		Intersection		Ag ppm		Cu %
personal		CNDD001A				489			490						1					1			1810		0.37
											Table 2: Ag-Cu pegmatite related intersections
	Of particular significance are multiple narrow semi massive intervals with elevated nickel returning
	grades including:
		• CNDD001A: 2m @ 0.68% Ni, 0.17% Cu, 552ppm Co (from 635m), and
		• CNDD002: 0.6m @ 0.96% Ni, 0.11% Cu, 744ppm Co (from 661.6m)
	The two drill holes were designed to test a discrete 750 x 600m, 40nT aeromagnetic response
	characterised by an elevated Electromagnetic (EM) response and partially coincident anomalously
	higher density. Final drill hole specifications are detailed in Table 3.
		Hole ID				Easting		Northing				RL				Azimuth			Dip	Total Depth (m)
		CNDD001A				485385			7879490		60				90				-70	907.3
		CNDD002				484850			7879490		60				90				-70		667.6m
											Table 3: Kalarka Prospect completed drill hole specifications
	Previous drill results at the nearby Tea Tree Nickel-Copper Sulphide Prospect (Fig. 2) recorded a
	10.4m intersection at 0.25% Nickel and 0.28% Copper in drill hole TT00D11, located approximately
	2.75km southeast of Kalarka. The results from these two Kalarka holes particularly the thick
	sequence of ultramafic rocks is an advancement to the previously known prospectivity of Tea Tree.
	SER is highly encouraged by the significant intervals of ultramafic rocks coupled with an increase in
Fornickel grade over a greater length within the sulphide zone which demonstrates, at a local scale, the

potential for accumulations of nickel sulphides to occur within a sulphur saturated magmatic system. This advances the potential of the region to host significant Ni + Cu sulphide mineralisation as broad zones of thick nickel and copper-bearing disseminated sulphides can be associated with

1ASX Announcement 26 August 2020: Exploration Update: Saxby Gold Project
		www.strategicenergy.com.au
Strategic Energy Resources Limited
ABN 14 051 212 429	E: [e-mail]
Level 4, 100 Albert Road, South Melbourne VIC 3205	T: [phone]

ASX ANNOUNCEMENT

20 DECEMBER 2021

ASX: SER

For personal use only

more massive accumulations, as demonstrated between Western and Eastern Deeps systems at Voisey's Bay (Labrador, Canada) and within the Nebo-Babel deposit (West Musgraves Ranges, W.A.)

Figure 2: Bouguer Gravity 1 VD image with Tea Tree Ni-Cu sulphide intercepts

Furthermore, a revised interpretation of the detailed gravity data at Canobie shows that it maps mafic units across the project area and reveals that both the Kalarka and Tea Tree prospect form part of a larger ore junction. Importantly, extending north and south from the main ore junction are elongate gravity features interpreted as ribbon-like "chonolith" intrusions which have the potential to host higher tenor nickel-copper sulphide mineralisation (Figure 3).

Strategic Energy Resources Limited	www.strategicenergy.com.au
ABN 14 051 212 429	E: [e-mail]
Level 4, 100 Albert Road, South Melbourne VIC 3205	T: [phone]

ASX ANNOUNCEMENT

20 DECEMBER 2021

ASX: SER

For personal use only

Figure 3: Left: Drill holes intersections surrounding the Kalarka Prospect over a Bouguer Gravity Image. Right: Reduction to Pole Magnetic Image. Note the elongate density highs (interpreted chonoliths) extending north and south from the ore junction.

Whilst SER acknowledges that the nickel grade and tenor is low, this may be due to sulphur over saturation driven by the interaction of magma with graphite. Historical drilling targeted conductivity anomalism subsequently revealed to be caused by graphite. There is evidence of other potential sulphur and metal source units locally in the rock record suggesting there could be other parts of the system which assimilated different, more favourable host rocks.

The Kalarka drill program received co-funding through the Queensland Government Collaboration Exploration Initiative.2

FUTURE WORK

A complete review of the project is underway. This includes re-logging all available drill core, selected additional geochemical analysis, and petrology and petrophysical data collection to map the lithochemical signatures and allow vectoring into more prospective portions of the intrusive system. An immediate outcome from the review was the reinterpretation of available gravity data across the project area in the search for similar "ore junction" gravity anomalies. Located approximately 50km to the south west of the Tea Tree Prospect an analogous gravity anomaly was identified on the southern margin of the Canobie project which has since been secured (EPM28180), (Figure. 4).

2business.qld.gov.au/industries/mining-energy-water/resources/geoscience-information/exploration-incentives/exploration-grants

Strategic Energy Resources Limited	www.strategicenergy.com.au
ABN 14 051 212 429	E: [e-mail]
Level 4, 100 Albert Road, South Melbourne VIC 3205	T: [phone]

ASX ANNOUNCEMENT

20 DECEMBER 2021

ASX: SER

For personal use only

Figure 4: Canobie Project tenure with interpreted ore junctions and new SER ELA

PROMINENT NICKEL SULPHIDE EXPERT ENGAGED TO REVIEW PROJECT

SER has engaged a globally renowned expert in magmatic mineralisation styles, Dr Steve Beresford, the former Chief Geologist of major nickel explorers and producers IGO, First Quantum and MMG. Dr Beresford brings profound understanding of magmatic nickel sulphide systems and cutting edge exploration tools and techniques which have never previously been undertaken at this project.

MAGMATIC NICKEL DEPOSITS - TEA TREE AND KALARKA IN CONTEXT

Tea Tree and Kalarka have demonstrated that the Canobie District contains numerous key geological criteria which highlight the potential for more significant nickel and copper mineralisation (using the criteria described in Begg et al 2018).

The project is located adjacent to the upper lithospheric domain margin defined by the Gidyea Suture Zone which is the edge of the Mt Isa Province (Korsch et al 2012) associated with a large

Strategic Energy Resources Limited	www.strategicenergy.com.au
ABN 14 051 212 429	E: [e-mail]
Level 4, 100 Albert Road, South Melbourne VIC 3205	T: [phone]