Aeon Metals : 2021 Vardy and Marley Drilling Update

ASX ANNOUNCEMENT

28 January 2022

For personal use only

Aeon Metals Limited (ASX: AML) (Aeon or the Company) is pleased to provide an update on the outcomes of 2021 field activities undertaken on its Walford Creek Copper-Cobalt Project (Walford Creek Project) in north-west Queensland. All assay results for the Pre-Feasibility Study (PFS) metallurgical and geotechnical test work program have now been received.

On 30 June 2021, Aeon announced the completion of a Scoping Study on the Walford Creek Project which highlighted the potential to develop a long life, major mining project focussed on producing a portfolio of battery metals headed by copper and cobalt (see ASX release dated 30 June 2021, Walford Creek Revised Scoping Study Results). This study formed the basis for directing the 2021 field program at the Walford Creek Project.

A metallurgical sample collection program was split between the Vardy and Marley zones, while the Amy zone was excluded (see Figure 1). Limited geotechnical and exploration drilling was also conducted. The program commenced with a single, multi-purpose drill rig operating on double shift from 3 June 2021. A second rig was added on 18 September 2021.

A total of 46 new drill holes were completed during the 2021 drilling program plus an additional diamond tail to a historic drill hole. This represents a total of 8,951 metres of drilling. Geochemical analysis for 18 drill holes additional to those previously reported have now been received. Results of these are documented within this release. Results from the remaining 3 holes, which were focussed on an initial assessment of the exploration potential for resource extension along strike at Marley are to be finalised and reported in due course.

* See page 5 of this release for relevant CuEq calculation methodology.

Aeon Metals Ltd	Level 7, 88 Pitt Street, Sydney,
ABN 91 121 964 725	NSW 2000, Australia
PO Box 8155, Gold Coast MC.	T: [phone]
Qld 9726, Australia	E: [e-mail]
	W: aeonmetals.com.au

For personal use only

Figure 1: Distribution of the 2021 drilling in relation to the Amy, Marley and Vardy deposits

Aeon Managing Director and CEO, Dr Fred Hess, commented:

"Aeon is pleased to confirm that all of the assay results for the 2021 metallurgical and geotechnical drilling have finally been received, and that the results are consistent with or better than expectations. Work on updating the mineral resource estimates has now commenced.

"The samples collected are crucial for completing the metallurgical testwork program to optimise the processing route and to quantify performance over a range of possible feed types.

"The Aeon operations team are now planning the 2022 field season, scheduled to begin in May. An overview of the objectives of this program will be provided once planning has been finalised, however we are excited to have completed the required metallurgical test work sampling drilling. The focus during 2022 will be on confirming the further copper and cobalt resource exploration potential of this outstanding project area."

Figure 2: Distribution of the 2021 drilling in relation to the Marley and Vardy deposits

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For personal use only

Drilling Summary

Assay results for both metallurgical sample collection and geotechnical data collection from the 2021 drilling campaign have now all been received. All results being reported are from new drill holes located within the limits of the existing deposit. 2021 drilling included 30 holes at the Vardy Deposit and 12 holes at the Marley Deposit. An additional 4 holes were drilled for exploration west of Marley, and 1 hole targeting potential mineralisation within the new target horizon of the Walford Dolomite, directly beneath the Vardy Deposit. For consistency, recovered copper equivalent assay results continue to use the previously reported commodity prices and metal recoveries.

The final assay results for the metallurgical sample collection and geotechnical data drilling are reported in this release. Results for a further three exploration drill holes completed to the west of Marley are yet to be finalised and are expected to be reported in late January.

The existing drill spacing at Vardy is variable. Where possible, the metallurgical drill holes were designed to tighten drill hole spacing with the objective to achieve a spacing approaching 20 metres. Assay results received are broadly consistent with historic results and continue to demonstrate the exceptional continuity and quality of the mineral resources at Vardy and Marley.

A significant intercept table is shown in Table 2, and a full suite of sections relating 2021 drilling results being reported within this release to historical data** is provided in Appendix 1.

Figure 3: Cross section 211880mE showing consistentcy in results of new drill hole WFDH514

relative to previous resouce drilling

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				AZI	Dip	Intersect		CuEq	From	To	Cu	Co	Pb	Zn	Ni	Ag
	Hole No.	Easting	Northing			m
				degrees	degrees		Calc %	m	m	%	%	%	%	ppm	g/t
	WFDH509	212130	8031550	0	-79	6.0		0.58	32.0	38.0	0.26	0.05	0.05	0.02	204	12
only
					and	29.0	1.06	58.0	88.0	0.12	0.09	0.87	1.53	329	17
WFDH510	212026	8031495	0	-82	13.0		1.45	20.0	33.0	0.82	0.12	0.25	0.08	489	17
						and	5.0	1.55	41.0	46.0	0.78	0.12	0.10	0.87	402	8
						and	62.0	2.43	134.0	196.0	1.30	0.20	1.05	0.33	969	27
	WFDH511	213156	8031814	0	-65	16.0		0.45	45.0	61.0	0.13	0.03	0.18	0.28	147	13
						and	37.0	1.83	71.0	108.0	0.45	0.11	0.53	2.49	488	27
use	WFDH512	212070	8031452	0	-77	8.0		0.52	72.0	80.0	0.00	0.06	0.40	0.61	248	11
					and	12.0	0.59	176.0	188.0	0.01	0.02	0.41	1.10	105	25
					and	11.0	0.74	199.0	210.0	0.36	0.04	0.11	0.07	166	27
	WFDH513	211951	8031433	0	-77	17.0		0.58	5.0	22.0	0.25	0.05	0.25	0.22	296	5
						and	10.0	0.63	37.0	47.0	0.2	0.1	0.02	0.15	456	4
						and	13.0	0.87	118.0	131.0	0.14	0.05	0.67	1.06	245	30
						and	22.0	1.63	140.0	162.0	1.14	0.08	0.13	0.13	329	20
personal	WFDH514	211884	8031366	0	-74	21.0		1.22	14.0	35.0	0.32	0.08	0.44	1.56	331	16
					and	69.0	1.73	109.0	178.0	0.87	0.09	1.01	1.14	388	25
					incl.	25.0	3.08	141.0	166.0	1.95	0.17	1.22	0.66	717	40
	WFDH515	212230	8031553	0	-71	2.0		1.44	68.0	70.0	0.02	0.15	1.95	1.34	585	52
						and	28.0	1.88	158.0	186.0	0.90	0.13	1.91	0.57	650	37
	WFDH516	212078	8031517	0	-70	62.0		0.66	24.0	86.0	0.28	0.06	0.07	0.18	251	12
	WFDH517	211981	8031463	0	-77	37.0		0.71	20.0	57.0	0.18	0.07	2.85	0.52	360	10
						and	39.0	1.82	124.0	163.0	0.97	0.14	1.05	0.28	599	29
	WFDH518	213156	8031793	0	-80	20.0		0.73	92.0	112.0	0.01	0.05	0.68	1.09	233	23
						and	44.0	2.76	210.0	254.0	1.62	0.19	0.49	0.59	875	29
	WFDH519 210430	8030623	0	-80				Abandoned
	WFDH521	213055	8031749	0	-75	6.0		0.63	82.0	88.0	0.00	0.05	0.21	1.11	242	12
						and	7.0	0.70	136.0	143.0	0.23	0.07	0.05	0.13	259	22
For
					and	30.0	3.18	240.0	270.0	1.79	0.20	1.96	1.13	897	39
WFDH524	213815	8032010	170	-63	3.0		2.28	51.0	54.0	2.14	0.02	0.04	0.31	72	7
						and	4.0	0.48	116.0	120.0	0.01	0.07	0.09	0.33	258	11
	WFDH525	213303	8031855	167	-65	9.0		0.45	38.0	46.0	0.07	0.02	0.05	0.79	85	9
	WFDH526 212179	8031586	0	-60				Abandoned
	WFDH527	212179	8031580	355	-60	23.0		0.62	32.1	56.0	0.08	0.05	1.75	0.84	208	10
	WFDH528	213741	8032061	347	-60			No Significant Assays - Geotech
	WFDH529	212280	8031606	155	-61			No Significant Assays - Geotech

Table 1: Significant intercepts from latest 8 drill holes from 2021 program

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For personal use only

Results are reported in recovered copper equivalent (CuEq) to account for the revised processing flow sheet as published in the Walford Creek Project Revised Scoping Study (see ASX release dated 30 June 2021). Recovered CuEq intercepts have been calculated using the recovery and metal price assumptions utilised in the Scoping Study (see Table 1) and according to the following equation:

CuEq = Copper grade * copper recovery +

Zinc grade * zinc recovery * zinc price / copper price +

Cobalt grade * cobalt recovery * cobalt price / copper price +

Silver grade * silver recovery * silver price / copper price +

Nickel grade * nickel recovery * nickel price / copper price

			Recovery assumptions
Metal	USD/lb	Comments	after processing of
			bulk composite
Copper	4.54		95%
Lead	1.00	Assumption not	0%
recovered
Zinc	1.36		92%
Cobalt	20.42		79%
Nickel	8.16		76%
Silver	27.00		82%

Table 2: Copper equivalent calculation parameters

• The individual metal values where CuEq has been shown on the cross sections for historic holes can be found reported in previous ASX releases. The same formula and parameters have been applied to calculate these grades as were used the 2021 results.

This ASX release has been authorised by the Aeon Board:

For more information, please contact:

Investors	Media
Dr. Fred Hess	Michael Vaughan
Managing Director & CEO	Fivemark Partners
[e-mail]	[phone]

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