GREENX METALS LIMITED

NEWS RELEASE | 29 April 2022

Quarterly Activities Report March 2022

HIGHLIGHTS

·    New copper targets identified at Arctic Rift Copper Project in Greenland (ARC or Project) from ongoing geological analysis.

o  Latest analysis identifies new "walk-up" native copper and copper sulphide targets for upcoming field program.

o  New priority, walk-up, at-surface target identified along the Knuth Fault which is a Discovery Zone "lookalike" feature.

o  Two additional exposures of native copper mineralisation identified from recently unearthed historical documentation at Neergaard Dal.

·    Company is preparing for its maiden exploration program on the ground at ARC which will commence in the June quarter.

·    Completion of Entitlements Issue to fund new and current activities announced concurrently with ARC earn-in. Following interest from investors in the UK and Europe, GreenX raised gross proceeds of A$4.5 million.

·    International arbitration claims against the Republic of Poland under both the Energy Charter Treaty and the Australia-Poland Bilateral Investment Treaty continue at pace.

·    Cash balance at 31 March 2022 of A$5.7 million to fund activities at ARC plus A$9.4 million available to continue pursuing GreenX's dispute against the Republic of Poland.

GreenX Metals Limited (ASX:GRX, LSE:GRX) (GreenX or Company) is is pleased to present its Quarterly Activities Report for the period during and subsequent to 31 March 2022.

ARC PROJECT SUMMARY

In October 2021, GreenX entered into an Earn-in Agreement (EIA) with Greenfields Exploration Limited (GEX) to acquire an interest of up to 80% in ARC.

ARC is an exploration joint venture between GreenX and GEX.  GreenX can earn 80% of ARC by spending A$10 million by October 2026. ARC is targeting large scale copper in multiple settings across a 5,774 km² Special Exploration Licence in eastern North Greenland. The area has been historically underexplored yet is prospective for copper, forming part of the newly identified Kiffaanngissuseq metallogenic province.

GreenX and GEX consider the observed geological setting and features of ARC to be indicative of an extensive mineral system capable of hosting world-class copper deposits.

The large scale of the mineral system, widespread copper anomalism, combined with dual mineralising events are analogous to the largest copper systems known worldwide. Accordingly, GreenX considers that ARC has the potential to be a globally significant metallogenic province.

Structural Geology Review

In January 2022, GreenX announced that new copper targets had been identified at ARC following ongoing geological analysis. Latest analysis identifies new "walk-up" native copper and copper sulphide targets for the upcoming field program. A new priority, walk-up, at-surface target was identified along the Knuth Fault which is a Discovery Zone "lookalike" feature. Further, two additional exposures of native copper mineralisation were identified from recently unearthed historical documentation at Neergaard Dal.

A structural review of the currently available datasets of ARC's geology was conducted by specialist consultant Dr Mark Munro¹ and confirmed that the known copper mineralisation including the native copper and Discovery Zone copper sulphides, is associated with reverse faults. Reverse faults are considered to be an important structural control on mineralisation at ARC, with the recent study both extending the known reverse faults with associated mineralisation and identifying new reverse faults.

The review reinforces evidence of a large-scale mineral system and regional fertility related to identified faults and therefore exploration targeting, and efficiency of upcoming field programs can be greatly improved through enhanced geological understanding of ARC.

ARC MAIDEN EXPLORATION PROGRAM

In the June quarter, the Company will commence its maiden exploration programme at ARC. GEX are currently preparing to travel to Greenland to initially complete:

·    Widespread geochemical sampling.

·    Sampling and analysis of the already identified walk-up targets, including the Discovery Zone

·    Passive seismic over the Minik Anomaly and 3D induced polarisation (IP) surveys.

·    High-resolution satellite mapping and the re-analysis of historical samples and magnetic data to create an ARC 3D model.

CORPORATE

Entitlements Issue & Shortfall Offer

Following significant interest from potential new investors in the UK and Europe, the Company completed the Entitlements issue to raise total gross proceeds of A$4.5m.

Financial Position

As at 31 March 2022, GreenX had A$5.7 million cash available plus A$9.4 million available to pursue its dispute against the Republic of Poland.

DISPUTE WITH POLISH GOVERNMENT

The Company's international arbitration claims (Claim) against the Republic of Poland is being prosecuted through an established and enforceable legal framework, with GreenX and Poland agreeing to apply the United Nations Commission on International Trade Law Rules (UNCITRAL) rules to the proceedings.

Both the Australia-Poland Bilateral Investment Treaty (BIT) and Energy Charter Treaty (ECT) claim Tribunals have been constituted, with both Claim's being registered with the Permanent Court of Arbitration in the Hague. The BIT and ECT claim proceedings proceed at pace, with the Company now having filed a Claim for compensation against Poland with the Tribunal in the amount of £806 million (A$1.5 billion / PLN 4.2 billion), which includes an assessment of the value of GreenX's lost profits and damages related to both the Jan Karski mine and Debiensko mines, and accrued interest related to any damages. The Claim for damages has been assessed by external quantum experts appointed by GreenX specifically for the purposes of the Claim.

In July 2020, the Company announced it had executed a Litigation Funding Agreement for US$12.3 million with Litigation Capital Management. The facility is currently being drawn down to cover legal, tribunal and external expert costs and defined operating expenses associated with the Claim.

In September 2020, GreenX announced that it had formally commenced with the Claim by serving the Notices of Arbitration against the Republic of Poland.

GreenX's dispute alleges that the Republic of Poland has breached its obligations under the applicable Treaties through its actions to block the development of the Company's Jan Karski and Debiensko mines in Poland which effectively deprives GreenX of the entire value of its investments in Poland.

In February 2019, GreenX formally notified the Polish Government that there exists an investment dispute between GreenX and the Polish Government. GreenX's notification called for prompt negotiations with the Government to amicably resolve the dispute and indicated GreenX's right to submit the dispute to international arbitration in the event of the dispute not being resolved amicably. The Company remains open to resolving the dispute with the Polish Government amicably. However, as of the date of this report, no amicable resolution of the dispute has occurred, since the Polish Government has declined to participate in discussions related to the dispute and accordingly the Company has formerly submitted its Claim as discussed above.

GreenX's investment dispute with the Republic of Poland is not unique, with international media widely reporting that the political environment and investment climate in Poland has deteriorated since the change in Government in 2015. As a result, there are a significant number of International Arbitration claims being brought against Poland in the natural resources and energy sectors with damages claims ranging from US$120 million to over US$1.3 billion and includes Bluegas NRG Holding (Gas), Lumina Copper (Copper) and InvEnergy (wind farms).

Forward Looking Statements

This release may include forward-looking statements. These forward-looking statements are based on GreenX'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 GreenX, which could cause actual results to differ materially from such statements. GreenX makes no undertaking to subsequently update or revise the forward-looking statements made in this release, to reflect the circumstances or events after the date of that release.

Competent Persons Statement

The information in this announcement that relates to Exploration Results for ARC is extracted from the ASX announcements dated 6 October 2021 and 22 January 2022. Which are available to view at www.greenxmetals.com.

GreenX confirms that (a) it is not aware of any new information or data that materially affects the information included in the original announcements; (b) all material assumptions and technical parameters underpinning the content in the relevant announcements continue to apply and have not materially changed; and (c) the form and context in which the Competent Person's findings are presented have not been materially modified from the original announcements.

This announcement has been authorised for release by the Company's Chief Executive Officer, Mr Ben Stoikovich.

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

¹ Munro, Mark (2021). "Structural Review of the Arctic Rift Copper Project, Greenland", Munro Geoscience Pty Ltd

APPENDIX 1: TENEMENT INFORMATION

As at 31 March 2022, the Company has an interest in the following tenements:

Notes:

¹        In October 2021, the Company announced that it had entered into the EIA with GEX to acquire an interest of up to 80% in ARC. As at the date of this announcement, the Company held no beneficial interest in ARC, other than through the EIA.

²        GreenX commenced international arbitration claims against the Republic of Poland under both the ECT and the BIT. GreenX alleges that the Republic of Poland has breached its obligations under the Treaties through its actions to block the development of the Company's Jan Karski and Debiensko mines in Poland.

Appendix 2: Related Party Payments

During the quarter ended 31 March 2022, the Company made payments of $212,000 to related parties and their associates. These payments relate to existing remuneration arrangements (director fees, consulting fees and superannuation of ($132,000) and the provision of a serviced office and company secretarial and administration services ($80,000).

Appendix 3: Exploration and Mining Expenditure

During the quarter ended 31 March 2022, the Company made the following payments in relation to exploration activities:

There were no mining or production activities and expenses incurred during the quarter ended 31 March 2022.

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 April 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.