Zeus Resources : Update on Exploration Result of Mortimer Hills Project

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05 July 2022

Encouraging Exploration Results of Mortimer Hills Project Field Work

Highlights

• Follow up reconnaissance mapping and pegmatite sampling at Zeus's 'Pegmatite Creek' Prospect (Figure 2), located 5km southeast along strike from the Malinda Lithium Deposit (held by Arrow Minerals Ltd; ASX: AMD) ("Arrow").
• Field work has located an extensive suite of pegmatites outcropping beneath alluvial cover following exposure by recent rainfall.
• Further mapping has also located several outcrops of manganiferous gossan (associated with dolomite) within the tenement.
• A total of 40 rock chip samples submitted for assay to examine the geochemical signature of the gossans, pegmatites, and their parent granites.
• Rehabilitation of drill sites and tracks at Zeus' Reid Well Base Metals Prospect was partially completed during the quarter.

Zeus Resources Ltd (ACN 139 183 190) (ASX: ZEU) ("Zeus" or "the Company") is pleased to announce that the Company completed Phase 3 of its Mortimer Hills Project (E09/2147) exploration plan in June 2022 and achieved further exploration results.

Figure 1. Regional Geology & E09/2147

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Figure 2. Gascoyne Project- Mortimer Hills E09/2147 Prospect Locations.

1. Rehabilitation of drilling disturbance

A total of 22 RC drillholes were drilled at the Reid Well Base Metals Prospect during Q4 2021. Rehabilitation of drillholes, pads and access tracks were partially completed during June 2022.

2. Thirty-Three Supersuite Lithium-Caesium-Tantalum (LCT) Pegmatite Prospectivity

Previous work by Arrow immediately to the east of Zeus' E09/2147 tenement has identified the Thirty- Three Supersuite as a fertile parent granite with the potential to generate LCT Pegmatite swarms.

Rock chip sampling by Arrow returned results up to 3.77% Li2O and observed distinct Niobium/Tantalum fractionation trends extending outwards from the parent granite intrusion. Arrow's work indicated that Lithium mineralisation (in the form of spodumene and lepidolite) within the region occurs in a 'sweet spot' lying 500 to 3,000m outboard of the parent granitoid. (See Segue Resources ASX Announcement, 09 October 2017).

The Thirty-Three Supersuite extends ESE along strike and the southern margin of Zeus' tenement. Zeus considers the tenement has substantial potential for host-related LCT Pegmatite mineralisation. Extensive tourmaline alteration of the country-rock also suggests the granitoid of the Thirty-Three Supersuite are highly fractionated and have the potential to generate LCT Pegmatites.Subcropping

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deformed pegmatites, similar in character to those encountered further west at Arrow's Malinda Lithium Prospect, were first identified on Zeus' E09/2147 tenement in Q3 2021 (See Zeus ASX Announcement, 1 October 2021) with subsequent mapping locating the Pegmatite Creek Prospect in Q4 2021 (See Zeus ASX Announcement, 17 December 2021).

Recent fieldwork during Q2 2022 has targeted the prospective zone extending outwards from the intrusive contact of the Thirty-Three Supersuite Granitoids.

Figure 3. Extensive quartz sheetwash blanket covering the metamorphosed contact between the vegetated Thirty-Three Supersuite granitoids (RHS) and metasedimentary country rock. Arrow pointing to the location of the Pegmatite Creek prospect (see Figure 6).

The prospective zone extending outwards from the margins of the prospective granites into the host metasediments is largely obscured by an extensive blanket of quartz sheetwash (Figure 3) derived from weathering of the intrusive granitoid.

At the Pegmatite Creek prospect numerous pegmatites are exposed by erosion along the flanks of the intrusive Granite with recent winter rainfalls fortuitously facilitating better exposure of outcrops.

Mapping indicates the core of the intrusive is comprised of K-feldspar-quartz-muscovite/biotite granite is surrounded by a siliceous outer carapace of quartz-albite-tourmaline granite containing extensively developed pegmatites and quartz-tourmaline veining.

A 50-200m wide (narrowing along strike to the southeast) transitional margin contains interleaved quartz veins, quartzose pegmatites, tourmaline-rich zones and migmatised biotite-cordierite schists. The contact metamorphic aureole, in which the regional chlorite-sericite-garnet schists are metamorphosed to biotite-cordierite shists, extends outwards for approximately 500m from the parent granite.

Individual pegmatites (Figure 4) and pegmatite swarms (Figure 5) are observed intruding along the dominant NW-SE regional metamorphic fabric. Evidence of zonation has been observed within larger pegmatites and some pegmatites appear to be recrystallised and sheared and boudinaged by post- intrusion deformation.

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Figure 4. Pale-coloured boudinaged pegmatite intruding dark grey biotite-cordierite schists on the the margins of the parent

granite (hillside in background).

A total of 4 rock chip samples were taken from the parent granite and 28 rock chip samples were taken from pegmatites were taken to investigate their geochemical signatures.

The Company has engaged Western Geophysics Pty Ltd in WA to collect more available geophysics data and carry out the desktop research for the prospective area now. Follow up airborne (drone) surveying is being planned next for Q3 2022 to target the the lithium 'sweet spot' lying 500 to 3,000m outboard of the parent granitoid.

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Figure 5. Pegmatite swarm (pale coloured) intruding biotite-cordierite schists/hornfels (dark coloured) developed on the margins of Thirty-Three Supersuite Granite (hillside in background) Arrows highlighting individual pegmatites.

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Suite 105, 25-29 Berry Street North Sydney NSW 2060 Australia

Tel: [phone]

ACN: 139 183 190