Aeon Metals : Walford Creek Resource Upgrade - Additional Information

ASX ANNOUNCEMENT

21 March 2022

For personal use only

WALFORD CREEK RESOURCE UPGRADE - ADDITIONAL INFORMATION

Aeon Metals Limited (ASX: AML) (Aeon or the Company) refers to the announcement released on 16 March 2022 entitled "Walford Creek Resource Upgrade". The Company wishes to provide further information for the purposes of ASX Listing Rule 5.8.1, and accordingly, has attached an updated announcement which includes this information.

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.

A Pre-Feasibility Study on the Walford Creek Project is targeted for completion in Q1 2022.

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

Aeon Metals Ltd	Level 5, 126 Phillip 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

ASX ANNOUNCEMENT

21 March 2022

For personal use only

WALFORD CREEK RESOURCE UPGRADE - UPDATED

Highlights:

• Walford Creek Mineral Resource Estimates (MRE) for Vardy and Marley updated to incorporate metallurgical and geotechnical drilling completed in 2021.
• In-filldrilling confirms robustness of previous estimates and lifts overall classification confidence.
• Approximately 97% of total Vardy/Marley MRE (over 38 Mt) now classified as higher confidence Measured & Indicated category (38% Measured, 59% Indicated).
• New MRE for Vardy/Marley are:

1. Copper mineralisation: 20.1 Mt @ 1.08% Cu, 0.15% Co, 0.75% Zn, and 0.06% Ni

• 1. Cobalt peripheral mineralisation: 19.2 Mt @ 0.25% Cu, 0.10% Co, 1.11% Zn and 0.04% Ni
• Total combined contained copper and cobalt increased by 2.5% and 2.1%, respectively (compared to April 2021 MRE).
• Planning for 2022 drill program to test along strike extensions and new target areas now well advanced.

Aeon Metals Limited (ASX: AML) (Aeon or the Company) is pleased to provide an update on the Mineral Resource (MRE) for the Walford Creek Project following the receipt and incorporation of final drilling data from the 2021 field program.

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

"Aeon is delighted to provide updated Mineral Resource estimates for the Vardy and Marley deposits following the finalisation of the 2021 drilling results. The results demonstrate the robust nature of the deposit with in-fill drilling providing an increase and upgrade to the existing resource base.

"Now having a Mineral Resource with almost 97% defined within the Measured and Indicated categories provides an outstanding foundation for the preparation of robust mine schedules and the development of the more detailed project PFS economic evaluation.

"The proposed 2022 drilling program delivers strong potential to yield further significant mineral resources updates towards year end. The almost six kilometres of strike length in the Le Mans and Amy sections, adjacent to the Fish River fault, already host a modest Inferred Mineral Resource estimate that is limited only by drilling. In addition, the impending acquisition of high resolution airborne electro-magnetic data will complement the existing high resolution magnetic and gravity data set to further refine our targeting of the previously identified new areas for drill testing. Our 2022 exploration program is designed to provide a defining step in the exceptional New Economy Minerals district emerging in North-West Queensland."

Aeon Metals Ltd	Level 5, 126 Phillip 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

Background

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. This study formed the basis for directing the 2021 field program at the Walford Creek Project, identifying the following components as critical next steps in advancing toward completion of a Pre-Feasibility Study (PFS) under the new project configuration:

• Obtaining suitable representative feed samples from the Vardy and Marley resources to allow comprehensive metallurgical test work to be completed.
• Providing further geotechnical data to support mine design.
• Completing in-fill drilling within the existing resource where appropriate to enhance confidence in mineralisation and mineral grade continuity.
• Conducting exploration of the Vardy Deeps concept as detailed in ASX release dated 9 August 2021 (New Drill Targets at Walford Creek) and commencing exploration for further mineralisation along strike between the Marley and Amy deposits as detailed in ASX release dated 11 February 2022 (Step Out Drilling Identifies Potential Vardy Repeat).

All 2021 drilling was completed within, or adjacent to, the Vardy and Marley zones, while the Amy zone was excluded (see Figure 1). 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. During the 2021 drilling program, a total of 46 new drill holes were completed in addition to a diamond tail to an historic drill hole. This represents a total of 8,951 metres of drilling that was added to the existing geological dataset used to compile these Mineral Resource estimates.

Independent geological consultants, H&S Consultants Pty Ltd (H&SC), were retained to incorporate all results from the 2021 Walford Creek drilling campaign and complete updated MRE for the Walford Creek Project. H&SC completed the previous MRE for the Walford Creek Project in April 2021.

The new Vardy and Marley copper resource estimates are reported together at a 0.5% copper cut-off grade and with the peripheral cobalt resource estimates reported at a 600 ppm (0.06%) cobalt cut-off (for copper grades <0.5%). A western limit of 210675 metres east was applied to discount the mineralisation observed in the recently announced Le Mans peripheral zone which was considered insufficiently tested for inclusion in the MRE.

Figure 1: Distribution of 2021 drilling in relation to existing mineral resources

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Vardy & Marley zones

Vardy & Marley MRE now contain 39.3 Mt extending over a strike length of 3.6 km. Of this, 97% or 38.1 Mt of the total tonnage is classified as Measured and Indicated.

Copper Mineral Resource

The Vardy & Marley Copper MRE has increased to 20.1 Mt @ 1.08% Cu, 0.15% Co, 31 g/t Ag, 1.03% Pb, 0.75% Zn and 0.06% Ni. The corresponding previous Copper Mineral Resource estimate completed in April 2021 was 19.6 Mt @ 1.08% Cu, 0.15% Co, 31 g/t Ag, 1.03% Pb, 0.73% Zn and 0.07% Ni.

	Category			Mt			Cu %			Pb %			Zn %			Ag ppm			Co %			Ni %			Pyrite %			Density
																			t/m3
Measured	7.3		1.14		1.07		0.89		28.4		0.15		0.06		42.3		3.46
Indicated	12.1		1.04		1.01		0.66		31.5		0.15		0.07		38.6		3.40
Inferred	0.7		1.05		1.09		0.70		38.9		0.14		0.06		42.7		3.49
Total	20.1		1.08		1.03		0.75		30.6		0.15		0.06		40.1		3.43

Table 1: Vardy/Marley Copper Mineral Resource (0.5% Cu cut-off)

See Figures 3 and 4 in Appendix 2 for further detail on the Vardy & Marley Copper Mineral Resources.

Cobalt Peripheral Mineral Resource

The Vardy & Marley Cobalt Peripheral MRE was largely unchanged at 19.2 Mt @ 0.25% Cu, 0.10% Co, 21 g/t Ag, 0.95% Pb, 1.11% Zn and 0.04% Ni. The corresponding previous Cobalt Peripheral Mineral Resource Estimate completed in April 2021 was 19 Mt @ 0.24% Cu, 0.09% Co, 21 g/t Ag, 0.96% Pb, 1.07% Zn and 0.04% Ni.

	Category			Mt			Cu %			Pb %			Zn %			Ag ppm			Co %			Ni %			Pyrite			Density
																	%			t/m3
Measured	7.6		0.24		0.87		1.23		19.8		0.10		0.04		43.01		3.38
Indicated	11.1		0.26		0.97		1.03		21.9		0.09		0.04		38.23		3.31
Inferred	0.5		0.23		1.74		0.91		26.9		0.10		0.04		36.61		3.31
	Total	19.2		0.25		0.95		1.11		21.2		0.10		0.04		40.08		3.34

Table 2: Vardy/Marley Cobalt Peripheral Mineral Resource (600ppm Co Cut-off on blocks that are outside of Copper Resource)

See Figures 5 and 6 in Appendix 2 for further detail on the Vardy & Marley Cobalt Peripheral Mineral Resources.

The 2021 drilling was primarily aimed at producing metallurgical sample and geotechnical data to support the PFS. Holes were designed where possible to also provide infill data for the resource estimate. An improvement in the confidence for the MRE, highlighted by the increase in Measured and Indicated Resource, was achieved through this additional drilling data.

The results in terms of combined contained metal in the Copper Resource and Cobalt Peripheral Resource sees an increase in contained Cu, Co, Zn, Ag, Ni and Pb of 2.5%, 2.1% 4.8%, 1.9%, 1.6% and 1.9%, respectively, as shown in Table 3.

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	Cu kt	Pb kt	Zn kt	Ag Moz	Co kt	Ni kt
Combined Metal 2021	258.0	383.0	346.0	32.3	46.9	20.7
Combined Metal 2022	264.3	390.1	362.6	32.9	47.9	21.0
Increase (actual)	6.3	7.1	16.6	0.6	1.0	0.3
Percentage Increase	2.5%	1.9%	4.8%	1.9%	2.1%	1.6%

Table 3: Vardy/Marley Copper and Cobalt Peripheral Contained Metal Increase

Amy zone

No additional drilling was completed at Amy so the Mineral Resource Estimate and Exploration Target for this zone remain unchanged.

Copper Mineral Resource

The Amy Copper Mineral Resource Estimate is 5.1 Mt @ 1.25% Cu, 0.15% Co, 37 g/t Ag, 1.35% Pb, 0.63% Zn and 0.08%. All of the Amy Copper Mineral Resource Estimate is classified as Inferred.

	Category			Mt			Cu %			Pb %			Zn %			Ag ppm			Co %			Ni %			Pyrite %
Inferred	5.1		1.25		1.35		0.63		36.9		0.15		0.08		37.7

Table 4: Amy Copper Mineral Resource (0.5% Cu cut-off)

Amy Zone Exploration Target

H&S Consultants published an Exploration Target for the PY3 unit at Amy where insufficient drilling data exists to define a Mineral Resource, as part of the April 2021 updated MRE for Walford Creek.

The Exploration Target for the PY3 mineralised unit is 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.

The potential quantity and quality of the Exploration Target is conceptual in nature. Insufficient exploration has been undertaken to estimate a Mineral Resource Estimate and it is uncertain that further exploration will result in the estimation of a Mineral Resource Estimate.

No Exploration Target estimate was completed on the potential for economic PY1 mineralisation, which the 2021 drilling has identified as being highly prospective within the Le Mans prospect. In light of this recent Marley step-out drilling documented within ASX release dated 11 February 2022 (Step Out Drilling Identifies Potential Vardy Repeat), the presence of mineralisation in the PY1 unit suggests further opportunities to expand the western extent of the known Marley mineralisation.

Mineralised domains

The relationship between the different phases of mineralisation at Walford Creek is shown schematically in Figure 2. The massive pyrite hosted high-grade copper/cobalt core tends to be surrounded or encased by a substantial tonnage of massive pyrite mineralisation which hosts cobalt and lower grade chalcopyrite (Cu) mineralisation along with substantial accumulations of

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