Aeon Metals : Step-Out Drilling Identifies Potential Vardy Repeat

ASX ANNOUNCEMENT

11 February 2022

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STEP-OUT DRILLING IDENTIFIES POTENTIAL

VARDY REPEAT AT LE MANS ZONE

Aeon Metals Limited (ASX: AML) (Aeon or the Company) is pleased to provide an update on the exploration drilling completed in the 2021 field program at its Walford Creek Copper-Cobalt Project (Walford Creek Project) in north-west Queensland. All assay results from the 2021 drilling have now been received.

Three drill holes were completed as part of the 2021 drill program to assess the potential for further mineralisation west of the existing Marley zone, which will henceforth be referred to as the Le Mans zone. This step-out drilling has demonstrated the previously unrecognised presence of continued mineralisation within the PY1 unit, with a 60 metre periphery zone intersected over 50 metres away from the Fish River Fault.

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

1.6 km strike of this untested zone. Drilling of the Le Mans zone is expected to be a high priority for the 2022 drilling season.

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

"Aeon is delighted to confirm the potential for the extension of mineralisation directly adjacent to the existing resource at Marley.

"Using the extensive drilling and geophysical knowledge gathered at Walford Creek, our geological model is able to direct our exploration targeting with great accuracy and the intercepts discussed in

1 See page 6 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

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the release confirm its utility. Armed with a proven geological model, we are very confident that further value can be added by continuing exploration in the 2022 field season along the fault.

"The Aeon operations team are now planning the 2022 exploration drilling campaign, scheduled to begin in May. The results generated at the Le Mans zone ensure that it is to be a priority focus of this campaign, with the program intent to demonstrate the full extent of Walford Creek as a prolific mineralised system."

Target Summary

The existing mineral resources at Walford Creek are currently confined to three deposit areas located on the southern side of the regional Fish River Fault. Mineralisation occurs extensively within two distinct stratigraphic units (PY1 and PY3) and is recognised in the under-explored Walford Dolomite. The higher tenor copper and cobalt mineralisation occurs directly adjacent to the fault and typically extends out a further 25 metres away from it. Base metal and lower grade copper and cobalt mineralisation form a halo (periphery zone) around the higher tenor mineralisation and typically extends out over 100 metres from the fault, see Figure 1.

The mineral resources currently consist of the well- studied Vardy and adjacent Marley resource, and the lesser studied Amy deposit.

A gap in historic drilling occurs between the western end of Marley, and the eastern end of Amy with approximately 1.6 km tested by only 2 drill holes. This area is known as the Le Mans zone, see Figure 2.

Figure 1: Walford Creek

mineralisation model

Figure 2: Distribution of the 2021 drilling in relation to the Amy, Marley and Vardy deposits, and the Le Mans

prospect area

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H&S Consultants published an Exploration Target for the PY3 horizon at Le Mans where insufficient exploration existed to define a Mineral Resource in the 2021 Updated Mineral Resource estimate for Walford Creek (see Aeon ASX release dated 19 April 2021, Walford Creek Resource Update).

The Exploration Target for the PY3 mineralised unit at Le Mans was 2 to 4 Mt @ 1.1 - 1.5% Cu, 1.1

• 2.0% Pb, 0.5 - 1.6% Zn, 30 - 60 ppm Ag and 0.11 - 0.2% Co (2 to 4 Mt @ 1.8 - 3.1% CuEq1). However, no estimate was placed on the potential for PY1 mineralisation, which was the primary target for the three drill holes being reported in this release.

The Exploration Target potential quantities and grades are conceptual in nature and there has been insufficient exploration to estimate a Mineral Resource. It is uncertain if further exploration will result in the estimation of a Mineral Resource. The Exploration Target is not being reported as part of any Mineral Resource.

Results

Drilling at the Le Mans zone has identified the presence of a 60 metre thick mineralised sequence within the upper PY1 unit. A full table of significant results, along with cross sections can be found in Table 2 and Figures 3 and 4. The geological model developed at Walford Creek highlights the potential for a continuation of mineralisation adjacent to the fault. The geological model, as depicted in Figure 1, also highlights the tangential extent of peripheral or halo mineralisation away from the fault which can extend beyond 100 metres in places. The presence of lower tenor mineralisation at greater distances from the fault is a strongly correlated indication of higher tenor mineralisation closer to the fault. An example of this is provided in the cross sections of Figures 3 and 4, where initial drilling from Le Mans is compared to sections 213550mE and 213230mE within the Vardy Deposit.

At Vardy 313550mE, drillhole WFDD202 intercepted 20 metres at 0.52% CuEq, around 55 metres from the Fish River Fault in PY1. Subsequent drilling 25 metres from the fault intersected 60 metres at 1.79% CuEq.

At Vardy 312320mE, drillhole WFDD265 intercepted 22 metres at 0.44% CuEq, around 100 metres from the Fish River Fault in PY1. Subsequent drilling 25 metres from the fault intersected 84 metres at 1.54% CuEq in drillhole WFPD139. Additionally on the same section, drillhole WFDH494 intercepted 13 metres at 0.55% CuEq, around 43 metres from the Fish River Fault in PY3. Drilling within 25 metres of the fault returned 43 metres at 1.85% CuEq in hole WFDD265, and 25.4 metres at 2.40% CuEq in hole WFDH416.

According to the geological model, these initial Le Mans drill holes have intersected the periphery zone of halo mineralisation. The geological model suggests that high tenor mineralisation will occur closer to the fault. Follow up drill holes targeting the region closer to the fault is therefore considered a high priority for the 2022 field season.

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Figure 3: 2021 drilling of peripheral PY1 and PY3 zone at Le Mans with proposed 2022 drilling shown,

compared to Vardy section 213550mE

Figure 4: 2021 drilling of peripheral PY1 and PY3 zone at Le Mans
with proposed 2022 drilling shown, compared to Vardy section	4

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The thickness of mineralisation observed, coupled with its favourable proximity to the mine stope designs for the PY3 extraction at the adjacent Marley zone, suggests that this zone has strong potential to be readily mined as an extension to the Marley underground mine plan. This target is considered to be one of high priority due to its potential to add further mine life and value to the existing project development plan. A long section is provided in Figure 5 showing the relative location to the existing Mineral Resource. Using the proven Walford Creek mineralisation model, combined with the revised geometry of the Fish River Fault derived from the recent drilling, planning is now underway to systematically target and test the continuity of this mineralisation along the Le Mans zone, toward the known mineralisation to the west at Amy.

Figure 5: Long section of the Le Mans prospect relative to the Marley resouce, showing showing historic

and new drilling results from within the periphery zone at the Le Mans prospect.

Hole No.	Easting	Northing	AZI	Dip		Intersect		CuEq	From	To	Cu	Co	Pb	Zn	Ni	Ag
degrees	degrees		m		Calc %	m	m	%	%	%	%	ppm	g/t
WFDH520	210328	8030593	350	-80	Peripheral Zone - Pb	20.0	0.36	303.0	323.0	0.01	0.02	1.33	0.39	136	20
Zn ~110m from the FRF
					Peripheral Zone - Pb	27.0	0.19	366.0	393.0	0.06	0.02	0.04	0.31	106	1
					Zn ~80m from the FRF
					Peripheral Zone - ~55m	11.0	0.66	464.0	475.0	0.05	0.03	0.44	1.57	116	7
					from the FRF
WFDH522	210328	8030659	350	-80		60.0		0.49	288.0	348.0	0.02	0.03	0.16	0.86	160	14
					Incl.		8.0	1.16	309.0	317.0	0.00	0.04	0.37	2.92	228	17
					Incl.		4.0	0.99	344.0	348.0	0.07	0.07	0.07	1.73	344	15
					Incl.		4.0	0.96	325.0	329.0	0.01	0.03	0.22	2.51	204	9
WFDH523	210185	8030455	0	-60	Peripheral Zone - Pb	19.0	0.27	357.0	376.0	0.00	0.12	0.32	0.25	92	20
Zn ~158m from the FRF
					Peripheral Zone - Pb	6.0	0.42	413.0	419.0	0.00	0.04	0.05	0.75	202	0
					Zn ~135m from the FRF
					Peripheral Zone - ~65m	4.0	0.51	552.0	556.0	0.25	0.05	0.02	0.07	0	4
					from the FRF

Table 1: 2021 drilling assays results of peripheral PY1 zone at Le Mans

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 Aeon 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 2) and according to the following equation:

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