BERKELEY ENERGIA LIMITED

NEWS RELEASE | 29 July 2022

Quarterly Report June 2022

Highlights:

·     Appointment of Spanish Based Director

The Company strengthened the Board's technical capacity and Spanish operating experience with the appointment of Mr Francisco Bellón as an Executive Director.

Mr Bellón is a Mining Engineer with more than 25 years of experience in the resources sector, including specialisation in mineral processing. During his career, Mr Bellón has participated in the construction, commissioning and operation of four mines in Spain, two in South America and two in West Africa, working at an executive level for Toronto, New York or Madrid Stock Exchange listed companies, such as Rio Narcea Gold Mines, Lundin Mining, ENDESA and Duro Felguera.

Mr Bellón who is based in Salamanca, joined Berkeley in 2011 as General Manager of Operations, and was subsequently promoted to Chief Operating Officer in 2017. During this period, Mr Bellón has been responsible for the Company's day-to-day operations in Spain, and has overseen the development of the Salamanca Project from the Scoping Study stage through to the completion of the Definitive Feasibility Study and Front End Engineering Design.

Mr Bellón has a Masters Degrees in Mining Engineering and Occupational Health and Safety, Investor Relations Certification from the Madrid Stock Exchange, and is Member of the Australasian Institute of Mining and Metallurgy.

·     European Nuclear Power and Global Uranium Market:

The outlook for nuclear power and the uranium market strengthened further during the quarter, with a number of important recent developments, including:

·      The European Parliament voted to reject objections to the inclusion of natural gas and nuclear power in its taxonomy plan which had been subjected to extensive debate since late 2021. A majority of ministers voted against the effort to block the inclusion of the two fuels/generating technologies. Reportedly, "the result means the European Commission's proposals to include certain nuclear and gas activities within the list of investments that meet the taxonomy requirements, is now due to come into force from the start of 2023, given that the European Council is not expected to object to it".

Further, the European Commission released its proposed "REPowerEU Plan" in response to the Russian invasion of Ukraine. The Plan looks to reduce/eliminate the European Union's dependency on fossil fuel imports from Russia.

·      At the Group of Seven ("G7") meeting held in Germany, the broad-ranging G7 Leader's Communique specifically addressed the Russian aggression in Ukraine and its effects on global energy. Regarding commercial nuclear power, the world leaders stated; "Those countries that opt to use it reaffirm the role of nuclear energy in their energy mix. Those countries recognise its potential to provide affordable low-carbon energy and contribute to the security of energy supply as a source of baseload energy and grid flexibility." 

Recognising the global role of Russian-sourced nuclear fuel, the communique clearly stated; "We will further reduce reliance on civil nuclear and related goods from Russia, including working to assist countries seeking to diversify their supplies. We task our relevant Ministers to evaluate the feasibility and efficiency of these measures urgently."

·      The International Energy Agency ("IEA") released a new report Nuclear Power and Secure Energy Transitions: From Today's Challenges to Tomorrow's Clean Energy Systems that highlights nuclear has an essential part to play in delivering a clean, affordable and secure energy future. According to the IEA's report, a low-carbon, sustainable, affordable and secure energy future needs nuclear.

·      Spain's main opposition party, Partido Popular ("PP"), outlined its economic proposals to deal with the economic and energy crises that the country is currently experiencing. The actions include the resurrection of nuclear power in Spain and "extending the useful life of the reactors" in line with what other European countries are doing. The PP believes that this technology must play a key role in the ecological transition as a support for renewable energies, since the opposite would imply greater gas consumption and therefore greater dependence on countries such as Russia.

Security of supply concerns continued to be raised in Spain given that the country's existing nuclear power and fuel fabrication facilities import approximately 39% (2020) of their required uranium from Russia.

·      President Macron cancelled the plan to close 12 reactors by 2035 and requested the state-owned nuclear operator, EDF, to study the feasibility of prolonging reactor lifespans beyond the statutory 50 years. In addition, his government supports the construction of six European Pressurised Reactors by 2050.

·      Belgium's Nuclear Research Centre announced that it will soon begin working with international partners to evaluate the use case for advanced reactors in Belgium. The agency said it is now operating with a Belgian federal government issued €100 million budget, and allocated €25 million per year for four years, to conduct in-depth research into new nuclear units.

·      A new survey carried out in Finland showed that support for nuclear power is at record highs across the country. The survey noted that nuclear power favourability has been measured continually since 1983, and the latest results have beat all-time highs, as more than 60% of the survey's respondents have a positive attitude towards nuclear power. 11% of Finns have a negative stance toward nuclear energy, with 62% of respondents noting that nuclear power is an important tool for combating climate change.

Finland's Green Party, part of the government coalition, also voted to adopt a fully pro-nuclear stance. The party manifesto now states that nuclear is "sustainable energy" and demands the reform of current energy legislation to streamline the approval process for small modular reactors. It also supports licence extensions for existing nuclear reactors. Finland's is the first Green Party to adopt such a position.

·      Swedish MP, Mats Nordberg, emphasized that in order to help counter the Russian aggression in Ukraine there is a need for "mutual assistance and unity" and called for the restart of nuclear reactors and planning for new reactors. Nordberg observed that "The existing reactors, where possible, should continue to work. We must also continue to plan the launch of new nuclear reactors to make the European Union more self-sufficient in the field of energy resources."

·      Germany disclosed that it is reviewing all options at its disposal to ensure the country's energy supply remains robust amid uncertainty over Russian gas supply. The Economy Ministry stated in July that Germany may extend the life of its three remaining nuclear power plants, as public support increases in the face of growing energy shortages. The three plants - Isar 2, Emsland and Neckarwestheim 2 - which made up 6% of Germany's power production in the first quarter of 2022, are scheduled to close at the end of the year.

·      The UK government released its national energy strategy policy paper outlining that nation's plans for enhanced energy security. Under the energy policy, nuclear would provide up to 25% of the country's electricity by 2050 from up to 24 GWe of nuclear generating capacity. In order to support its ambitious commercial nuclear power goals, the UK will establish the Great British Nuclear Vehicle designed to provide support to nuclear projects "through every stage of the development process.

·      China announced plans to construct a further six nuclear reactors as the country pursues its Net Zero goals, with approval given for Sanmen units 3 and 4, Haiyang 3 and 4, and Lufeng 5 and 6.

·      Japan will have as many as nine nuclear power reactors in operation this winter, stated Prime Minister Fumio Kishida. With five reactors currently online, the move will boost combined capacity from nuclear to around 10% of the country's electricity needs. "We want to have ample capacity to ensure a stable supply of electricity during peak times," Kishida said. "The national government will take the lead" on restarting these reactors, "making tenacious efforts to secure the understanding and cooperation of local governments and other stakeholders."

·      South Korea released its revised energy policy which sets the goal of maintaining nuclear power's share of total electricity generation at a minimum of 30% by 2030.

Newly-elected President, Yoon Suk-yeol announced the construction of two reactors would resume immediately. The Ministry of Trade, Industry and Energy also commented that in response to the global goals of carbon neutrality and the Russia-Ukraine conflict which threatens global energy security supply chains, "it is imperative that new energy policy goals and directions are set to better accomplish carbon neutral government projects and the expansion of nuclear power." Included in the energy policy are the goals of exporting 10 nuclear power plants by 2030 as well as the development of a Korean small modular reactor design.

The Uranium spot price closed at US$49.00 per pound at the end of June 2022, with the spot market volume increasing to 3.3 million pounds, more than 40% up from the May total volumes.

Longer-term uranium price indicators continued to rise steadily with a 23.5% increased year to date.  At the end of June, prices closed at US$50.00 per pound (Long-Term); US$54.50 per pound (3-year forward price); and US$57.25 per pound (5-year forward price).

·     Balance Sheet

The Company is in a strong financial position with A$80 million in cash reserves and no debt.

For further information please contact:

Robert Behets                                            Franciso Bellón           

Acting Managing Director                            Executive Director

+61 8 9322 6322                                          +34 923 193 903

[email protected]

Salamanca Project Summary

The Salamanca Project ("Salamanca" or "Project") is being developed in an historic uranium mining area in Western Spain about three hours west of Madrid.

The Project hosts a Mineral Resource of 89.3Mlb uranium, with more than two thirds in the Measured and Indicated category. In 2016, Berkeley published the results of a robust Definitive Feasibility Study ("DFS") for Salamanca confirming that the Project will be one of the world's lowest cost producers, capable of generating strong after-tax cash flows. The DFS was based solely on Measured and Indicated Resources, with the following key study outputs and economics:

·      Producing 4.4 million pounds of uranium per annum (steady state operation)

·      Initial mine life of 14 years

·      Uranium prices based on UxC annual mid-long term base price projection (US$39.06 per pound (2017) - US$67.69 per pound (2030))

·      Initial capital cost of US$95.7 million

·      Operating costs of US$15.39 per pound

·      Post-tax NPV₈ of US$531.9 million

·      Post-tax IRR of 60%

In 2021, the Company received formal notification from Ministry for Ecological Transition and the Demographic Challenge ("MITECO") that it had rejected the Authorisation for Construction for the uranium plant as a radioactive facility ("NSC II") application at Salamanca. This decision followed the unfavourable NSC II report issued by the Nuclear Safety Council ("NSC") in July 2021.

The Company continues to strongly defend its position in relation to the adverse resolution by MITECO and has submitted an administrative appeal against the decision under Spanish law.

In Berkeley's strong opinion, MITECO has rejected the Company's NSC II application without following a legally established procedure and the Company believes that MITECO has infringed regulations on administrative procedures in Spain, as well as Berkeley's right of defence, which would imply that the decision on the rejection of the Company's NSC II application is not legal.

NSC II is the only key approval required to commence full construction of the Salamanca mine.

The Salamanca mine is being developed to the highest international standards and the Company's commitment to health, safety and the environment is a priority. Berkeley holds certificates in Sustainable Mining (UNE 22470-80) and Environmental Management (ISO 14001) which were awarded by AENOR, an independent Spanish government agency.

These management systems ensure that Company procedures are compliant with current regulations, ensure that the environment is protected, the project is sustainable, and that all activities are carried out with respect for and in collaboration with the local communities.

Berkeley's efforts in the key area of Sustainable Mining have been independently recognised with it being selected as the winner of the Outstanding Contribution to Sustainable Mining - Europe category in the 2020 Capital Finance International Sustainability Awards.

The Company is in a strong financial position with A$80 million in cash reserves and no debt.

Project Update:

The Company continued with its commitment to health, safety and the environment as a priority.

During the June 2022 quarter, the Company measured and reported its performance against its planned 2021 objectives in the areas of health, safety, environment and sustainability.

The Sustainability Performance Report is a voluntary transparency initiative through which the Company openly communicates information regarding its management systems in the areas of health, safety, environmental protection and social responsibility, as well as its performance in sustainability, to all stakeholders.

The Sustainability Performance Report, which provides a detailed overview of environmental, social and governance ("ESG") activities over the 12-month period to 31 December 2021, has been distributed to key stakeholders.

A copy of the Sustainable Performance Report can be found on the Company's website at:  www.berkeleyenergia.com/sustainable-mining/.

Berkeley is committed to sustainable development, and accordingly has implemented Environmental and Sustainable Management Systems to ensure compliance with performance standards. The UNE 22470-80 standard for Sustainable Mining Management has established 55 indicators that are certified annually. Of these 55 indicators, 36 are currently applicable to Berkeley's Salamanca Project. These are divided into: economic (5), social (19) and environmental (12) categories.

Highlights from the 2021 performance include:

·      R&D investment by the Company increased by 5%.

·      74% of consumables acquired by the Company were sourced locally i.e. promoting the socioeconomic development of the province.

·      Investment in environmental protection increased by 55% compared to previous year

Also noteworthy is the 29% reduction achieved in energy consumption, derived from fuel and electricity consumption. These energy savings minimise resource depletion and contribute to a decrease in CO₂ emissions into the atmosphere. During 2021, The Company reduced CO₂ emissions by ~28% or the equivalent of eight tonnes of CO₂ emissions to the atmosphere.

The Company continued its strong engagement with key stakeholders at a local, regional and federal level in Spain during the quarter.

Exploration:

The Company continued with its exploration program focusing on battery and critical metals in Spain.

The exploration program is targeting lithium, cobalt, tin, tungsten and rare earths, within the Company's existing tenement package in western Spain. Further analysis of the mineral and metal endowment across the entire mineral rich province and other prospective regions in Spain is also being undertaken, with a view to identifying additional targets and regional consolidation opportunities.

Whilst Berkeley remains focused on defending its position in relation to the adverse resolution by MITECO and ultimately advancing the Salamanca project towards production, the planned battery and critical metals exploration initiative also facilitates the Company's participation in these important, rapidly evolving, growth sectors which are integral to the global clean energy transition.

Investigation Permit Conchas

The Investigation Permit ("I.P.") Conchas is located ~10km south of Berkeley's Alameda deposit, in the very western part of Salamanca province, close to the Portuguese border.

The tenement covers an area of ~31km² in the western part of the Ciudad Rodrigo Basin and is largely covered by Cenozoic aged sediments. Only the north-western part of the tenement is uncovered and dominated by the Guarda Batholith (Vilar Formoso-Fuentes de Oñoro sector) intrusion. The tenement hosts a number of sites where small-scale historical tin and tungsten mining was undertaken. In addition, several mineral occurrences (tin, tungsten, titanium, lithium) have been identified during historical mapping or stream sediment sampling programs.

The Company completed initial soil sampling programs in northern and central portions of the tenement during 2021. The sampling, which was undertaken on a 200m by 200m grid, defined a tin-lithium anomaly covering approximately 1.1km by 0.7km which correlated with a mapped aplo-pegmatitic leucogranite.

During the quarter, an infill and extension soil sampling program was undertaken to follow-up the 2021 results. A total of 116 samples was collected to close the grid down to a 100m by 100m spacing over the previous defined anomaly, and extend the coverage to the east on a 200m by 200m grid. The samples were subsequently prepared and sent to ALS Seville for analysis.

The results of the infill soil sampling program have confirmed the spatial location, scale and tenor of the tin-lithium anomaly defined in 2021 but failed to extend the anomalism to the east (Figure 2).

The Company has also recently obtained a report summarising exploration work undertaken by Billiton PLC on the I.P. Conchas between 1981 and 1983. Billiton's exploration was focused on tin and tantalum and comprised regional and detailed geological mapping, geochemistry, trenching and limited drilling.

The results of Berkeley's recent soil sampling program are encouraging and the Company is currently verifying, evaluating and incorporating the additional historical information contained in the Billiton report, with a view to planning the next phase of exploration activity to assess the tin-lithium anomaly.

Corporate

Settlement of OIA Claim:

During the quarter, Berkeley announced that the OIA Claim brought against the Company in relation to the investment agreement and convertible note had been settled with the parties agreeing to discontinue legal proceedings in the Supreme Court of Western Australia.

Appointment of Spanish Based Director:

During the quarter, the Company announced the appointment of Mr Francisco Bellón as an Executive Director of the Company effective 1 July 2022.

Mr Bellón who is based in Salamanca, joined Berkeley in 2011 as General Manager of Operations, and was subsequently promoted to Chief Operating Officer in 2017. During this period, Mr Bellón has been responsible for the Company's day-to-day operations in Spain, and has overseen the development of the Salamanca Project from the Scoping Study stage through to the completion of the Definitive Feasibility Study and Front End Engineering Design. He has also been a Director of the Company's Spanish subsidiaries since 2011.

The appointment of Mr Bellón will substantially strengthen the Board's technical capacity and Spanish operating experience as the Company continues to focus on resolving the current permitting situation, and ultimately advancing the Salamanca project towards production.

Additional Information on the European Nuclear Power and Global Uranium Market:

The outlook for nuclear power and the uranium market strengthened further during the quarter, with a number of important recent developments, including:

·      The European Parliament voted to reject objections to the inclusion of natural gas and nuclear power in its taxonomy plan which had been subjected to extensive debate since late 2021. A majority (353) of MEPs voted against the effort to block the inclusion of the two fuels/generating technologies while 278 MEPs voted in favour of the measure. Reportedly, "the result means the European Commission's proposals to include certain nuclear and gas activities within the list of investments that meet the taxonomy requirements, is now due to come into force from the start of 2023, given that the European Council is not expected to object to it".

Further, in May 2022, the European Commission released its proposed "REPowerEU Plan" in response to the Russian invasion of Ukraine. The Plan looks to reduce/eliminate the European Union's dependency on fossil fuel imports from Russia.

·      At the conclusion of the G7 meeting held in Germany during the quarter, the broad-ranging G7 Leader's Communique specifically addressed the Russian aggression in Ukraine and its effects on global energy. The communique stated; "We reaffirm our commitment to phase out our dependency on Russian energy" and furthermore, "we will explore further measures to prevent Russia from profiting from its war of aggression." Regarding commercial nuclear power, the world leaders stated; "Those countries that opt to use it reaffirm the role of nuclear energy in their energy mix. Those countries recognise its potential to provide affordable low-carbon energy and contribute to the security of energy supply as a source of baseload energy and grid flexibility." 

Recognising the global role of Russian-sourced nuclear fuel, the communique clearly stated; "We will further reduce reliance on civil nuclear and related goods from Russia, including working to assist countries seeking to diversify their supplies. We task our relevant Ministers to evaluate the feasibility and efficiency of these measures urgently."

·      The International Energy Agency ("IEA") released a new report Nuclear Power and Secure Energy Transitions: From Today's Challenges to Tomorrow's Clean Energy Systems that looks at how nuclear energy could help address two major crises - energy and climate - facing the world today. The report highlights that nuclear has an essential part to play in delivering a clean, affordable and secure energy future. According to the IEA's report, a low-carbon, sustainable, affordable and secure energy future needs nuclear.

·      Spain's main opposition party, Partido Popular ("PP"), outlined its economic proposals to deal with the economic and energy crises that the country is currently experiencing. The actions include the resurrection of nuclear power in Spain and "extending the useful life of the reactors" in line with what other European countries are doing. The PP believes that this technology must play a key role in the ecological transition as a support for renewable energies, since the opposite would imply greater gas consumption and therefore greater dependence on countries such as Russia.

Security of supply concerns continued to be raised in Spain given that the country's existing nuclear power and fuel fabrication facilities import approximately 39% (2020) of their required uranium from Russia.

·      After winning a second term in office during national elections, President Macron cancelled the plan to close 12 reactors by 2035 and requested the state-owned nuclear operator, EDF, to study the feasibility of prolonging reactor lifespans beyond the statutory 50 years. In addition, his government supports the construction of six European Pressurized Reactors by 2050.

·      Belgium's Nuclear Research Centre (SCK CEN) announced in May that it will soon begin working with international partners to evaluate the use case for advanced reactors in Belgium. The agency said it is now operating with a Belgian federal government issued €100 million budget, and allocated €25 million per year for four years, to conduct in-depth research into new nuclear units.

·      A new survey carried out in Finland during the quarter shows that support for nuclear power is at record highs across the country. The survey noted that nuclear power favourability has been measured continually since 1983, and the latest results have beat all-time highs, as more than 60% of the survey's respondents have a positive attitude towards nuclear power. 11% of Finns have a negative stance toward nuclear energy, with 62% of respondents noting that nuclear power is an important tool for combating climate change.

Finland's Green Party, part of the government coalition, voted to adopt a fully pro-nuclear stance at its annual conference in May. The party manifesto now states that nuclear is "sustainable energy" and demands the reform of current energy legislation to streamline the approval process for small modular reactors. It also supports licence extensions for existing nuclear reactors. Finland's is the first Green Party to adopt such a position.

·      In his comments before a conference held in the Guildhall-London in June, Swedish MP, Mats Nordberg, emphasized that in order to help counter the Russian aggression in Ukraine there is a need for "mutual assistance and unity" and called for the restart of nuclear reactors and planning for new reactors.

Nordberg observed that "The existing reactors, where possible, should continue to work. We must also continue to plan the launch of new nuclear reactors to make the European Union more self-sufficient in the field of energy resources."

·      Germany disclosed that it is reviewing all options at its disposal to ensure the country's energy supply remains robust amid uncertainty over Russian gas supply. The Economy Ministry stated in July that Germany may extend the life of its three remaining nuclear power plants, as public support increases in the face of growing energy shortages. The three plants - Isar 2, Emsland and Neckarwestheim 2 - which made up 6% of Germany's power production in the first quarter of 2022, are scheduled to close at the end of the year.

·      The UK government released its national energy strategy policy paper during the quarter outlining that nation's plans for enhanced energy security. Under the energy policy, nuclear would provide up to 25% of the country's electricity by 2050 from up to 24 GWe of nuclear generating capacity. In order to support its ambitious commercial nuclear power goals, the UK will establish the Great British Nuclear Vehicle designed to provide support to nuclear projects "through every stage of the development process.

·      China announced plans to construct a further six nuclear reactors as the country pursues its Net Zero goals. During an executive meeting of the State Council, approval was given for Sanmen units 3 and 4, Haiyang 3 and 4, and Lufeng 5 and 6.

·      Japan will have as many as nine nuclear power reactors in operation this winter, stated Prime Minister Fumio Kishida. With five reactors currently online, the move will boost combined capacity from nuclear to around 10% of the country's electricity needs. "We want to have ample capacity to ensure a stable supply of electricity during peak times," Kishida said. "The national government will take the lead" on restarting these reactors, "making tenacious efforts to secure the understanding and cooperation of local governments and other stakeholders."

·      South Korea released its revised energy policy which sets the goal of maintaining nuclear power's share of total electricity generation at a minimum of 30% by 2030

Newly-elected President, Yoon Suk-yeol announced the construction of two reactors would resume immediately. In its statement before the 30th State Council meeting, the Ministry of Trade, Industry and Energy commented that in response to the global goals of carbon neutrality and the Russia-Ukraine conflict which threatens global energy security supply chains, "it is imperative that new energy policy goals and directions are set to better accomplish carbon neutral government projects and the expansion of nuclear power."

Included in the energy policy are the goals of exporting 10 nuclear power plants by 2030 as well as the development of a Korean small modular reactor design.

Forward Looking Statements

Statements regarding plans with respect to Berkeley's mineral properties are forward-looking statements. There can be no assurance that Berkeley's plans for development of its mineral properties will proceed as currently expected. There can also be no assurance that Berkeley will be able to confirm the presence of additional mineral deposits, that any mineralisation will prove to be economic or that a mine will successfully be developed on any of Berkeley mineral properties. These forward-looking statements are based on Berkeley's expectations and beliefs concerning future events.  Forward looking statements are necessarily subject to risks, uncertainties and other factors, many of which are outside the control of Berkeley, which could cause actual results to differ materially from such statements. Berkeley makes no undertaking to subsequently update or revise the forward-looking statements made in this announcement, to reflect the circumstances or events after the date of that announcement.

Competent Persons Statement

The information in this report that relates to Exploration Results is based on, and fairly represents, information compiled by Mr Enrique Martínez, a Competent Person who is a Member of the Australasian Institute of Mining and Metallurgy. Mr Martínez is Berkeley's Geology Manager and a holder of shares and options in Berkeley. Mr Martínez has sufficient experience which is relevant to the style of mineralisation and type of deposit under consideration and to the activity which he is undertaking 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'. Mr Martínez consents to the inclusion in the report of the matters based on his information in the form and context in which it appears

The information in this report that relates to the DFS, Mineral Resources, Ore Reserve Estimates, Mining, Uranium Preparation, Infrastructure, Production Targets and Cost Estimation is extracted from the announcement entitled 'Study confirms the Salamanca project as one of the world's lowest cost uranium producers' dated 14 July 2016, which is available to view on Berkeley's website at www.berkeleyenergia.com.

Berkeley confirms that: a) it is not aware of any new information or data that materially affects the information included in the original announcement; b) all material assumptions and technical parameters underpinning the Mineral Resources, Ore Reserve Estimate, Production Target, and related forecast financial information derived from the Production Target included in the original announcement continue to apply and have not materially changed; and c) the form and context in which the relevant Competent Persons' findings are presented in this announcement have not been materially modified from the original announcements.

To view this announcement in full, including all figures and illustrations, please refer to www.berkeleyenergia.com.

Appendix 1: Mineral Resource at Salamanca

Appendix 2: Summary of Mining Tenements

As at 30 June 2022, the Company had an interest in the following tenements:

*An application for a 1-year extension at E.P. Herradura was previously rejected however this decision has been appealed and the Company awaits the decision regarding its appeal.

Appendix 3: Related Party Payments

During the quarter ended 30 June 2022, the Company made payments of $130,000 to related parties and their associates. These payments relate to existing remuneration arrangements (director and consulting fees plus statutory superannuation).

Appendix 4: Exploration and Mining Expenditure

During the quarter ended 30 June 2022, the Company made the following payments in relation to exploration and development activities:

There were no mining or production activities and expenses incurred during the quarter ended 30 June 2022.

Appendix 5: Summary of Soil Sampling Results - I.P. Conchas

Appendix 6:  JORC Code, 2012 Edition - Table 1 Report

Section 1 Sampling Techniques and Data

(Criteria in this section apply to all succeeding sections.)

Section 2 Reporting of Exploration Results

(Criteria listed in the preceding section also apply to this section.)

Appendix 5B

Mining exploration entity or oil and gas exploration entity
quarterly cash flow report

Compliance statement

1        This statement has been prepared in accordance with accounting standards and policies which comply with Listing Rule 19.11A.

2        This statement gives a true and fair view of the matters disclosed.

Date:                29 July 2022

Authorised by:  Company Secretary

(Name of body or officer authorising release - see note 4)

Notes

1.          This quarterly cash flow report and the accompanying activity report provide a basis for informing the market about the entity's activities for the past quarter, how they have been financed and the effect this has had on its cash position. An entity that wishes to disclose additional information over and above the minimum required under the Listing Rules is encouraged to do so.

2.          If this quarterly cash flow report has been prepared in accordance with Australian Accounting Standards, the definitions in, and provisions of, AASB 6: Exploration for and Evaluation of Mineral Resources and AASB 107: Statement of Cash Flows apply to this report. If this quarterly cash flow report has been prepared in accordance with other accounting standards agreed by ASX pursuant to Listing Rule 19.11A, the corresponding equivalent standards apply to this report.

3.          Dividends received may be classified either as cash flows from operating activities or cash flows from investing activities, depending on the accounting policy of the entity.

4.          If this report has been authorised for release to the market by your board of directors, you can insert here: "By the board". If it has been authorised for release to the market by a committee of your board of directors, you can insert here: "By the [name of board committee - eg Audit and Risk Committee]". If it has been authorised for release to the market by a disclosure committee, you can insert here: "By the Disclosure Committee".

5.          If this report has been authorised for release to the market by your board of directors and you wish to hold yourself out as complying with recommendation 4.2 of the ASX Corporate Governance Council's Corporate Governance Principles and Recommendations, the board should have received a declaration from its CEO and CFO that, in their opinion, the financial records of the entity have been properly maintained, that this report complies with the appropriate accounting standards and gives a true and fair view of the cash flows of the entity, and that their opinion has been formed on the basis of a sound system of risk management and internal control which is operating effectively.