Sultan Resources : Exploration Update

Sultan Resources Ltd

ACN: 623652 522

CORPORATE DETAILS

ASX Code: SLZ

DIRECTORS

only			STEVEN GROVES
		MANAGING DIRECTOR
		JEREMY KING
			CHAIRMAN
			DAVID LEES
03rd February 2022	NON-EXECUTIVE DIRECTOR
EXPLORATION UPDATE	CONTACT
Suite 2, Level 1,
			1 Altona Street
			West Perth WA 6005
			www.sultanresources.com.au
	Lake Grace Nickel Project - WA	[e-mail]
use
 Aircore drilling of interpreted Ni-prospective ultramafic occurrences in the Lake
	Grace/Kulin area completed in January
	o A total of 74 holes for 2,324m completed across three target areas.
	High quality ultramafic Ni-sulphide target confirmed at Kulin Hill:
personal		o Approximately 2km strike of ultramafic lithology confirmed at first target zone
	o Geological similarities between this zone and the Gonneville Intrusion have
		been recognised
		o Historic exploration at Lake Grace has shown ultramafic rocks with evidence of
		nickel + cobalt bearing sulfides and copper sulphides in drilling
	 Strongly mafic lithologies intersected across the other areas, including:
		o Highly magnetic, pyroxene-rich zones that could form part of a mafic-
		ultramafic sequence
		o Strongly deformed Mafic gneiss/granulite - recognised as the principal gold
		mineralisation hosts elsewhere in the region
	 The targets lie within part of interpreted mobile zone that hosts the recent Julimar Ni-
		Cu-PGE discovery
	 Three-month program including ground geophysics and drill testing proposed at Kulin
		Hill
For	Big Hill Cu-Ag Target - Lachlan Fold Belt, NSW
	Diamond drilling targeting altered and mineralised structures at the Razorback

prospect, Big Hill completed in late 2021

o A total of 5 holes for 519 metres completed

o Co-funded grant of up to $81k awarded for the program

 All holes intersected a strongly altered and veined structure containing sulphide minerals that correlates with surface mapping and sampling

Corporate

• Successful capital raise of $2.2m in January 2022
• Funds to be used to progress exploration of the Lake Grace Nickel and Lachlan Fold Belt Cu-Au projects.

For personal use only

ASX ANNOUNCEMENT - 03 FEBRUARY 2022

Sultan Resources Limited (ASX: SLZ) (Sultan or Company) is pleased to provide an update to the market regarding the recent exploration work completed across the Company's priority exploration targets and proposed work plan for 2022 following the recent successful $2.2m capital raise (see ASX Announcement 25/02/2022).

The Company has been focussing on exploration for Julimar-styleNi-Cu-Co-PGE mineralisation at it's Lake Grace Nickel prospect in the wheatbelt of WA and porphyry Cu-Au-(Ag) mineralisation in the world-class Lachlan Fold Belt in NSW. During December 2021 and January 2022, the Company has undertaken aircore and diamond drilling campaigns at both areas.

Lake Grace Nickel Project

During late December 2021 and early January 2022, Sultan completed an aircore drilling program across three areas at the Company's Lake Grace Nickel Project (ASX Announcements 16/12/2021, 12/01/2022). A total of 74 holes for 2,324m were completed. Sultan's licences contain historically drilled ultramafic rocks with evidence of nickel and cobalt bearing sulfides1 and detailed airborne magnetic surveying by the company (ASX Announcement 03/07/2020) has revealed several unexplored areas with geophysical characteristics indicative of ultramafic rocktypes. The aircore program was designed to confirm the presence of ultramafic rocks interpreted from the magnetics and help determine the prospectivity of the region for hosting Ni-sulphide deposits.

2

4

3

Figure 1: Sultan's Lake Grace portfolio of tenements in relation to the tenement1 positions of Anglo American (blue outline), Impact Minerals (maroon outline) and the Gold Road Resources/Cygnus Gold JV (orange outline). All of Sultan's tenure lies within an interpreted mobile zone prospective for Ni-Cu mineralisation as postulated by Impact Minerals Ltd (see Impact Minerals announcement dated 10/06/2020)

page 2

For personal use only

ASX ANNOUNCEMENT - 03 FEBRUARY 2022

Aircore Drilling Summary

The aircore program commenced at Target area 1 ("Kulin Hill") in the northern end of the project at Kulin (E70/5095, Figure 2) where previously identified ultramafic rocks have been noted in historic drilling and mapping by Sultan (see ASX Announcement 20/11/2020). One traverse at this target was completed and confirmed the presence of ultramafic lithology in at least 3 holes (see ASX Announcement 16/12/2021). The aircore holes lie approximately 2km northwest of the historic diamond holes and confirm the strike extent of the ultramafic target.

The rig also completed a further 9 traverses at Target Area 2 some 20 km southeast of Kulin Hill (Figure 2). These holes ranged up to 61m in depth and intersected a variety of rocktypes ranging from felsic gneiss and granite to highly magnetic, mafic gneiss and the two deepest holes in the area (60 & 61m) ended in dark green to black, magnetic mafic rocks containing olivine, pyroxene and feldspar. Further work is required to classify the highly magnetic, mafic rocktypes and verify if they could belong to a larger mafic-ultramafic sequence. It is noted that the Gonneville Resource at Jumilar (see CHN ASX Announcement 09/11/2021) is hosted in a mafic-ultramafic intrusive complex ranging from gabbro (mafic) to pyroxenite (UM), peridotite (UM) and harzburgite (UM). Sulphide mineralisation is hosted predominantly in ultramafic units though the mafic gabbroic units are also noted to host sulphide mineralisation.

At Target Area 3 a total of 10 traverses were completed (Figure 3). This area, which is much closer to Lake Grace, revealed some intersections of mafic granulites which are the host rocks to gold mineralisation previously drilled by Sultan at Lake Grace (see ASX Announcement 03/07/2019) as well as at established gold resources at Katanning (ASX: AUC) and Tampia (ASX: RMS) in a similar geological setting. No ultramafic rocks were recognised in the holes at Target 3. The magnetic anomaly at Target Area 3 is strongly deformed and, if it represents folded mafic granulites, would present as a highly prospective, previously unrecognised gold target.

Due to laboratories across Australia experiencing an extremely high workload, assay results for the drilling are not expected until March.

Proposed Work Program

The successful confirmation of at least two kilometres of strike of a thick mafic-ultramafic sequence containing Ni-bearing sulphides1 at Kulin Hill has elevated the prospect to be Sultan's priority target in the 2022 field season. Negotiations to access the full length and breadth of the body, some of which extends beneath a salt lake, are ongoing and once granted, will allow the Company to assess the full potential of the target. A 3-month work program consisting initially of electromagnetic techniques such as Fixed Loop EM or magnetotellurics (MT) will be undertaken to detect any areas of strong conductance that might mark the location of sulphide accumulation. Any conductors identified will be ranked and the priority targets drilled with either Reverse Circulation and/or diamond methods.

Should land access negotiations prove to be protracted, Sultan will commence assessing the body from areas where access is already granted. This work will include stratigraphic drill holes followed by down- hole EM to generate an initial geological and geophysical understanding of the body.

Work at Target area two will be determined by the likelihood of the presence of a mafic-ultramafic sequence and could consist of ground EM followed by RC drilling.

Target Area 3 is potentially a prospective gold target and, if assay results are favourable, will be ranked alongside Sultan's extensive suite of Lake Grace gold targets for further work.

page 3

For personal use only

ASX ANNOUNCEMENT - 03 FEBRUARY 2022

Location of first 4 aircore holes into Kulin Hill (Target Area 1)

~2km

Approximate location of historic diamond drill holes

Target

Area 2

Figure 2: Location of the interpreted ultramafic bodies (purple) and positions of completed aircore traverses at Kulin Hill (Target Area 1) and Target Area 2 over the Total Magnetic Intensity reduced to pole image over E70/5095.

page 4

For personal use only

ASX ANNOUNCEMENT - 03 FEBRUARY 2022

Target

Area 3

Figure 3: Location of the interpreted ultramafic bodies (purple) and positions of completed aircore traverses at Target Area 3 over the Total Magnetic Intensity reduced to pole image over E70/5085.

Discussion - Comparison between Kulin Hill and the Gonneville Intrusive Complex

Kulin Hill presents as a compelling Ni-sulphide exploration target and shows a number of geological similarities to the Gonneville discovery by Chalice Mining Ltd some 200km to the northwest within the same interpreted mobile belt (Figures 1 & 4)

During November 2021, Chalice Mining Ltd released the maiden resource for the Gonneville Deposit at the Company's Julimar Nickel-Copper-PGE Project (See CHN ASX Announcement 09/11/2021). Ni- Cu-PGE sulphide mineralisation is hosted within the Gonneville Intrusion which is a 1.9km x 09.km x 0.8km section at the southern end of the larger Julimar mafic-ultramafic intrusive complex. The Gonneville intrusion is composed predominantly of serpentinised olivine peridotite / harzburgite, with lesser intervals of pyroxenite, gabbro and leucogabbro and is interpreted to have undergone upper greenschist to lower amphibolite facies metamorphism. Primary Ni-Cu-PGE sulphide mineralisation at Gonneville occurs mostly within the ultramafic domains (harzburgite, pyroxenite), and also within the minor gabbroic domains within the intrusion. Initial drilling targeted prominent EM conductors which marked the location of sulphide mineral accumulations.

page 5