High Grade Direct Ship Ore at Sirius Extension

Trading Symbols

AIM: UFO

FWB: I3A1

20 July 2023                                                                                                                                                       

Alien Metals Ltd

("Alien" or "the Company")

High Grade Direct Ship Ore confirmed at Sirius Extension, results to support targeted upgrades of Resource classification and conversion of Resources to Reserves

Alien Metals Ltd (LSE AIM:UFO), a global minerals exploration and development company, is pleased to announce through its wholly-owned subsidiary Iron Ore Company of Australia Pty Ltd ("IOCA") the first batch of assay results from its recent resource definition drilling programme (see RNS 2 May 2023) at the Company's 90% owned Hancock Iron Ore Project ("Hancock Project"), Pilbara Region, Western Australia.

Highlights

·   13 diamond core holes drilled during April 2023 for a total of 1049 metres ("m") at the Company's Sirius Extension Deposit. This infill campaign increased the total density of the drilling activities to date at the Sirus Extension Deposit allowing the Company to target Resource upgrades from Inferred to Indicated which should then support future Reserve reclassifications  

·   The initial batch of assay results for the first two (23IHD003 and 23IHD006) holes have been received, with highlights that include:

o from Drill Hole 23IHD003

§ 26.9m @ 60.03% iron ("Fe") from 13.9m including a high grade intercept of 12m @ 61.2% Fe from 28.8m, and

§ 16.1m @ 59.75% Fe from 46.9m including a high grade intercept of 9.9m @ 61.03% Fe

o from Drill Hole 23IHD006

§ 49.0m @ 59.29% Fe from 14.0m including high grade intercepts of 8m @ 60.70% Fe from 17m, 9.0m @ 61.51% Fe from 36.0m and 12.0m @ 60.58% Fe from 51.0m

·   Consistent grades of over 60% Fe with low levels of deleterious elements that meets, and in some places exceeds, the Company's current resource model

·   The high grade, direct ship ore results further reinforces the Company's confidence in the Hancock Project

·   This phase of in-fill drilling will be included in future Mineral Resource Estimates and Mining studies which the Company expects will result in increased Mining Reserves.

Troy Whittaker, Chief Executive Officer commented:

"These initial results from the recent Sirius Extension drilling campaign reinforce the potential of the Hancock Project. These results mirror or exceed that of the Company's resource model and we look forward to announcing the balance of the results that will support the next phase in the development of this Project in the coming weeks."  

Further Information

Figure 1: Location of the Company's Iron Ore Projects, Western Australia

The diamond core drilling completed in late April 2023 comprised of 13 holes for a total of 1,049m at the Company's Sirius Extension Deposit. This campaign (see figure 2) focused on infill resource definition drilling within the existing Mining Inventory pit design (see RNS 2 May 2023) to target a higher level of confidence in the Mineral Resource Estimate to be completed as part of the Company's Definitive Feasibility Study.

Figure 2: Location of the Resource definition drilling at the Sirius Deposit

Figure 3: Sirius Extension plan view

The assay results received for these first two holes reflect the overall widths and grades observed in the current Mineral Resource Estimate.

Figure 4 below shows the Iron intercept of 26.9m @ 60.03% Fe from 13.9m overlaid and reinforcing the current Mineral Resource Estimate grades in this location. The Company anticipates that correlation of this resource definition drilling supports a positive outlook for increases in its Ore Reserves due to the increased drilling density that should support Resource upgrades from inferred to indicated.

Figure 4: Drilling cross section of drill hole 23IHD003 overlaid with existing Mineral Resource Estimate

The Company is pleased to report, that there appears to be a number of upside intersections returned in the results.

1.    16.1m @ 59.75% Fe including 9.9m @ 61.03% Fe. This area is superior to that of the existing blocks and nearby blocks with respect to the Mineral Resource Estimate grades within the resource model, and

2.    7.8m @ 62.63% Fe from 74.1m. This further suggests potential for a higher grade portion in the footwall ore position of the resource model.

The Company is confident this recently completed core program will lead to a conversion of the Resource from the Inferred to Indicated classification and have a positive impact on Mining Inventory and Ore reserves in due course.

Table 1 - Summary of significant high grade iron ore drillhole interceptions, Sirius Deposit (*max 3m internal dilution, cut off >=59% Fe)

* Drilling depths are from surface

Table 2 - Hole ID's (Only holes with assays results received are reported)

Sample analysis and QA/QC

All samples generated from the drilling were dispatched to ALS Perth.

Samples were analysed for their Iron Ore Package Analysis with XRF finish, which includes Fe, Al, Ca, K, Mg, Mn, Na, P, S and Si. This is the same as the analysis and laboratory used in all of Alien's analysis work on these projects to maintain consistency and comparability between all analyses.

For QA/QC purposes, Alien used the industry standard of inserting 5% Certified Reference Material ("CRM") samples, 5% Blanks plus duplicate samples at source. The CRMs were sourced from Geostats Pty Ltd, Perth, WA, a global leader in the manufacture and sale of CRMs.

The results of the standard, duplicates and blanks are all within acceptable variance of expected analytical results.

Hancock Project JORC Reserves and Resources (see RNS 26 April 2023)

Table 3 - Hancock Project Ore Reserves

Table 4 - Hancock Mining Inventory

Table 5 - Mineral Resource

Competent Persons Statements

The information in this announcement relating to Ore Reserves is based on information compiled by Mr Jeremy Peters, a Director of Burnt Shirt Pty Ltd, a Fellow of The Australian Institute of Mining and Metallurgy (AUSIMM) and Chartered Professional Geologist and Mining Engineer of that organisation who has sufficient experience which is relevant to the style of mineralisation and type of deposit under consideration and to the activity that he is undertaking, to qualify as Competent Person as defined in the 2012 Edition of the "Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves". Mr. Peters consents to the inclusion in the document of the information in the form and context in which it appears.

The information in this announcement that relates to the Hancock Mineral Resources is based on information compiled by Mr Howard Baker, a Competent Person who is a Fellow of the Australasian Institute of Mining and Metallurgy and is employee by Baker Geological Services Ltd. Mr Baker has sufficient experience relevant to the style of mineralisation and type of deposit under consideration and to the activity which they are undertaking to qualify as a Competent Person as defined in the 2012 edition of the Australasian Code for the Reporting of Exploration Results, Mineral Resources, and Ore Reserves (JORC Code). Mr Baker consents to the disclosure of information in this report in the form and context in which it appears.

The information in this announcement that relates to Exploration Results, is based on information compiled by Mr. Bradley Toms who is the Exploration Manager and a full time employee of Alien Metals Ltd. Mr. Toms is a Member of The Australian Institute of Geoscientists and has sufficient experience which is relevant to the style of mineralisation and type of deposit under consideration and to the activity that he is undertaking, to qualify as Competent Person as defined in the 2012 Edition of the "Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves". Mr. Toms consents to the inclusion in the document of the information in the form and context in which it appears. Mr Toms has declared that he holds Performance Rights in the Company.

For further information please visit the Company's website at www.alienmetals.uk, or contact:

Beaumont Cornish Limited (Nomad)

James Biddle / Roland Cornish   Tel: +44 (0) 207 628 3396

WH Ireland Ltd (Joint Broker)

Harry Ansell / Katy Mitchell   Tel +44 (0) 207 220 1666

BlytheRay (Financial PR)

Tim Blythe / Megan Ray / Said Izagaren   Tel: +44 (0) 20 7138 3204

Notes to Editors:

Alien Metals Ltd is a mining exploration and development Company listed on the AIM market of the London Stock Exchange (LSE: UFO). The Company's focus is on delivering a profitable, long life direct shipping iron ore operation based out of the Pilbara in Western Australia. In 2019, the Company acquired 51% of the Brockman and Hancock Ranges high-grade (Direct Shipping Ore) iron ore projects and in December 2022 moved to 90% legal and beneficial ownership. The Company also acquired 100% of the Vivash Gorge Iron Ore project in the west Pilbara in July 2022.

The Company acquired 100% of the Elizabeth Hill Silver Project, which consists of the Elizabeth Hill Historic Mining Lease and the 115km² exploration tenement around the mine.

In March 2022 the Company acquired 100% of the former joint venture interest in the Munni Munni Platinum Group Metals and Gold Project in the West Pilbara, Western Australia, one of Australia's major underexplored PGE and base metals projects. Munni Munni holds a historic deposit containing 2.2Moz 4E PGM: Palladium, Platinum, Gold, Rhodium.

In May 2023, the Company acquired 100% of Mallina Exploration Pty Ltd and with it, the Western Hancock Tenement. The new tenement adjoins the Company's existing Hancock tenement, giving the entire Hancock project direct access to the Great Northern Highway.

The Company also holds silver, copper and base metal projects in various locations around the world however is currently looking at the best way to divest these for the benefit of shareholders.

Glossary

Indicated Mineral Resource - That part of a Mineral Resource for which quantity, grade (or quality), densities, shape and physical characteristics are estimated with sufficient confidence to allow the application of Modifying Factors in sufficient detail to support mine planning and evaluation of the economic viability of the deposit.  Geological evidence is derived from adequately detailed and reliable exploration, sampling and testing gathered through appropriate techniques from locations such as outcrops, trenches, pits, workings and drill holes, and is sufficient to assume geological and grade (or quality) continuity between points of observation where data and samples are gathered.

Inferred Mineral Resource - That part of a Mineral Resource for which quantity and grade (or quality) are estimated on the basis of limited geological evidence and sampling. Geological evidence is sufficient to imply but not verify geological grade (or quality) continuity. It is based on exploration, sampling and testing information gathered through appropriate techniques from locations such as outcrops, trenches, pits, workings and drill holes.  An Inferred Mineral Resource has a lower level of confidence than that applying to an Indicated Mineral Resource and must not be converted to an Ore Reserve.  It is reasonably expected that the majority of Inferred Mineral Resources could be upgraded to Indicated Mineral Resources with continued exploration.

Mining Proposal - A document submitted to the local state authority for approval by the Department of Mines, Industry Regulation and Safety (DMIRS), that is required before any mining operations can commence.

Mineral Resource - A concentration or occurrence of solid or liquid material of economic interest in or on the Earth's crust in such form, grade (or quality), and quantity that there are reasonable prospects for eventual economic extraction. The location, quantity, grade (or quality), continuity and other geological characteristics of a Mineral Resource are known, estimated or interpreted from specific geological evidence and knowledge, including sampling. Mineral Resources are sub-divided, in order of increasing geological confidence, into Inferred, Indicated and Measured categories.

Mining Schedule -the sequencing of operations and the assignment of equipment and people, to ensure that the intended sequencing and production targets are realized

Mineral resource classification - is the classification of mineral resources based on an increasing level of geological knowledge and confidence.

Ore Reserves - the parts of a Mineral Resource that can, at present, be economically mined

DSO - Direct Shipping Ore

Fe - Iron

Al - Aluminium

Ca - Calcium

K - Potassium

Mg - Magnesium

Mn - Manganese

Na - Sodium

P - Phosphorus

S - Sulphur

Si2O3 - Silica

Mt - Million Tonnes

BIF - Banded Iron Formation