Aeon Metals : Jun 22 Quarterly Activities & Appendix 5B Cash Flow Report

ASX ANNOUNCEMENT

29 July 2022

QUARTERLY ACTIVITIES REPORT

FOR THE PERIOD ENDING 30 JUNE 2022

Aeon Metals Limited (ASX:AML) (Aeon or the Company) is pleased to present its activities report for the quarter ending 30 June 2022.

Highlights:

• Exploration drilling commenced at Walford Creek
• CEI grant funded airborne electromagnetic survey (AEM) scheduled for next quarter
• CEI grant funded gravity survey at Sugarbag prospect scheduled for next quarter

Commenting on the activities for the quarter, Aeon Managing Director, Dr Fred Hess, said:

"Primary activities for the quarter were preparation for, and commencement of, exploration drilling at Walford Creek. In addition, the CEI funded geophysical surveys were planned with the expectation that these will be undertaken in the current quarter.

"By mid-July, some 4,000 metres of drilling had been completed, mainly in the Le Mans zone. The extended turnaround times for analytical results in the current environment has delayed any meaningful reporting of drilling outcomes. The targeted PY1 and PY3 lodes were however intersected where expected.

"Drilling has now moved to the western end of Amy zone where the 900 metre gap between two of the highest grade previous intersections is set to be tested. Once the geophysical survey results are analysed, it is expected that drilling will then move to focus on the regional target areas."

2022 drill program at Walford Creek

Large-Scale 2022 Exploration Program

An aggressive drilling exploration strategy commenced in the quarter, with two multipurpose rigs operating. Rig one commenced on 21 May, and rig two shortly thereafter. Both rigs have now transitioned to double shift, maximising productivity. At the end of the quarter, approximately 3,000 metres of drilling had been undertaken with five completed drill holes and five partially completed pre- collars or active holes.

The twin objectives of the drilling program are to establish the potential for continuation of mineralisation along the 10km Amy-to-Vardy trend, and to commence exploration of satellite mineralisation within the Walford Creek Project area.

An Airborne Electromagnetic (AEM) survey, which is co-funded by the Queensland Government Collaborative Exploration Initiative (CEI) scheme, has been confirmed for late July. This will allow results to be received in time to allow integration of this data into the final drill targeting of satellite targets identified following the 2021 magnetic and gravity survey. Drilling of these targets is set to commence in September 2022 and will include any additional targets generated from the AEM survey.

AEM survey being mobilised to Walford Creek in July 2022

Initially both drill rigs have been assigned to expanding the Mineral Resources west of the Marley/Vardy deposits into the Le Mans zone, and beyond into the Amy zone. The existing Mineral Resource estimate for Vardy and Marley only includes mineralisation as far west as 210675 metres east, with the initial 5 holes completed to the end of this quarter located within 750m of this boundary.

At the completion of the 2021 infill drilling program at Vardy and Marley, three exploratory holes were drilled stepping out some 150m to the west of Marley into the Le Mans zone. These step-out holes demonstrated the previously unrecognised presence of continued mineralisation within the PY1 unit, with a 60m periphery zone intersected over 50m away from the Fish River Fault (FRF). The Walford Creek geological model, based on the extensive drilling completed to date, anticipates a continuation of the high-grade mineralisation within the PY1 adjacent to the fault along the entire 2.1km strike of this untested zone.

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Of the five holes completed to date in this campaign, drill holes WFDH532 and WFDH533 were both drilled on section 210180, targeting PY3 and PY1 mineralisation respectively (marked in red on first section below). Drill holes WFDH531 and WFDH530 were both drilled on section 210330, targeting PY3 and PY1 mineralisation respectively (marked in red on second section below). Drill hole WFDH534 was completed along strike 250m to the west of section 210180, testing for continuation of mineralisation within the PY3.

Assay results for the 2022 program are expected to commence being received in early August 2022.

In addition to the CEI grant for the AEM survey at Walford Creek, Aeon were successful in securing an additional CEI grant of $96,800 of funding to conduct a ground gravity survey at the North Sugarbag EPM within the Mount Isa West project area. The proposed program is for an extensive ground gravity survey to be undertaken over the regional gravitational highs and along major structures at Sugarbag North. It is expected that gravity will facilitate the identification of potential dense pyritic shales within the Gunpowder formation which might be prospective for base metal mineralisation. In addition, it will contribute to the development of an improved understanding of the basement sequences west of Mount Isa in the Western fold belt. Aeon are pleased to advise that this program has now been scheduled to commence in August 2022.

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Corporate

On 9 May 2022, Aeon announced it had undertaken a placement to raise approximately A$7.2 million (before costs). The issue price of the new shares was 4.0c plus a free, one-for-two unlisted loyalty option (strike price 8.0c and expiring 31 December 2023). Major shareholder, OCP Asia, provided commitments to participate in the placement, as did all Aeon directors.

In conjunction with the placement, a one-for-three entitlement offer was launched on the same price terms. The entitlement offer raised approximately A$1.0 million (before costs).

At a General Meeting held on 19 July 2022, Aeon shareholders approved a number of resolutions ratifying participation and terms associated with the placement and entitlement offer. A revised company constitution was approved.

As noted in the March 2022 quarter activities report, the Walford Creek Pre-Feasibility Study (PFS) has been paused to allow an increased focus on exploration in the interim.

At quarter end, Aeon held A$2.1 million cash and had drawn debt of A$28.4 million.

ASX Additional Information

ASX listing rule 5.3.1: Exploration and evaluation expenditure during the quarter was A$2.5 million. Details of exploration activity during the June 2022 quarter are set out in this report and are mostly associated with costs relating to the Walford Creek Project.

ASX listing rule 5.3.2: There were no substantive mining production or development activities during the quarter.

ASX listing rule 5.3.5: Appendix 5B, Section 6.1 - description of payments: During the June 2022 quarter, Aeon paid directors fees of A$189,000.

Appendix 5B

The Company's Appendix 5B cash report has also been released today.

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]

ABOUT AEON METALS

Aeon Metals Limited (Aeon) is an Australian based mineral exploration and development company listed on the Australian Securities Exchange (ASX: AML). Aeon holds a 100% ownership interest in the Walford Creek Copper-Cobalt Project (Walford Creek Project) located in north-west Queensland, approximately 340km to the north north-west of Mount Isa.

Aeon's vision: making a difference - creating sustainable value by delivering key metals driving the low carbon future.

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TENEMENT HOLDER	TENEMENT I.D.	LOCATION	INTEREST HELD
Aeon Monto Exploration Pty Ltd	EPM 14628	Northwest of Monto, Qld	100%
Aeon Monto Exploration Pty Ltd	EPM 15921	Northwest of Monto, Qld	100%
Aeon Monto Exploration Pty Ltd	EPM 17001	Northwest of Monto, Qld	100%
Aeon Monto Exploration Pty Ltd	EPM 17002	Northwest of Monto, Qld	100%
Aeon Monto Exploration Pty Ltd	EPM 17060	West of Monto, Qld	100%
Aeon Monto Exploration Pty Ltd	EPM 27604	Monto	100%
Aussie NQ Resources Pty Ltd	EPM 18359	South of Georgetown, Qld	100%
SLW Queensland Pty Ltd	EPM 19029	West of Monto, Qld	60%
Aeon Walford Creek Limited	EPM 11898	Mount Isa North	80%
Aeon Walford Creek Limited	EPM 13412	Mount Isa South	80%
Aeon Walford Creek Limited	EPM 13413	Mount Isa South	80%
Aeon Walford Creek Limited	EPM 13682	Mount Isa South	80%
Aeon Walford Creek Limited	EPM 14220	Walford Creek	100%
Aeon Walford Creek Limited	EPM 14233	Mount Isa South	72%
Aeon Walford Creek Limited	EPM 14694	Mount Isa North	80%
Aeon Walford Creek Limited	EPM 14712	Constance Range	80%
Aeon Walford Creek Limited	EPM 14821	Mount Isa South	80%
Aeon Walford Creek Limited	EPM 14854	Walford Creek	100%
Aeon Walford Creek Limited	EPM 14935	Constance Range	80%
Aeon Walford Creek Limited	EPM 15156	Mount Isa South	80%
Aeon Walford Creek Limited	EPM 15911	Mount Isa South	100%
Aeon Walford Creek Limited	EPM 18552	Walford Creek	100%
Aeon Walford Creek Limited	EPM 18769	Mount Isa West	100%
Aeon Walford Creek Limited	EPM 26906	Walford Creek	100%
Aeon Walford Exploration Pty Ltd	EPM 26316	Walford Creek	100%
Aeon Walford Creek Limited	EPM 27311	Walford Creek	100%
Aeon Walford Creek Limited	EPM 27312	Walford Creek	100%
Aeon Walford Creek Limited	EPM 27314 (Application)	Walford Creek	100%
Aeon Walford Creek Limited	EPM 27315 (Application)	Walford Creek	100%
Aeon Isa Exploration Pty Ltd	EPM 27435	Mount Isa West	100%
Aeon Isa Exploration Pty Ltd	EPM 27436	Mount Isa West	100%
Aeon Walford Creek Limited	EPM 27512	Walford Creek	100%
Aeon Walford Exploration Pty Ltd	EPM 27535	Constance Range	100%
Aeon Isa Exploration Pty Ltd	EPM 27743	Mount Isa West	100%
Aeon Isa Exploration Pty Ltd	EPM 27744	Mount Isa West	100%
Aeon Isa Exploration Pty Ltd	EPM 27745	Mount Isa West	100%
Aeon Walford Creek Limited	EPM 28402 (Application)	Walford Creek	100%