Golden Rim Resources : GMR signs option agreement on Loreto Porphyry Copper Project

ASX ANNOUNCEMENT

26 April 2022

GOLDEN RIM SIGNS OPTION AGREEMENT ON LORETO PORPHYRY COPPER PROJECT, CHILE

Golden Rim Resources Ltd (ASX: GMR, Golden Rim or Company) is pleased to advise it has executed an Option and Joint Venture Agreement with Teck Resources Chile Limitada (Teck Chile), a subsidiary of Teck Resources Limited (Teck), on its 100%-owned Loreto Copper Project (Loreto). Loreto comprises mineral concessions that have been separated from the Company's Paguanta Silver-Lead-Zinc-Copper Project (Paguanta) in northern Chile.

Highlights

• • Teck Chile has been granted options to earn up to a 75% interest in Loreto by making US$0.6m in staged cash payments (~A$0.8m) to Golden Rim and spending US$17m on exploration (~A$23m).

• • Loreto lies at the northern extension of Chile's West Fissure - the world's largest concentration of major porphyry copper-molybdenum deposits.

• • Golden Rim's exploration has identified a highly prospective 2.3km x 1km alteration centre at Loreto which has the potential to host a deeper porphyry copper deposit.

• • Mineral concessions that cover the Measured, Indicated and Inferred Mineral Resource of 2.4Mt at 88g/t silver, 5.0% zinc and 1.4% lead for 6.8Moz silver, 265Mlb zinc and 74Mlb lead1 at Paguanta are not included in the agreement with Teck Chile; Golden Rim is pursuing an alternative transaction on the Paguanta mineral concessions.

Golden Rim's Managing Director, Craig Mackay, said, "Golden Rim believes that Loreto could well represent the last unexplored outcropping Oligocene-Eocene porphyry system in northern Chile. Not surprisingly, Loreto is surrounded by BHP and Codelco, two of the largest copper companies in the world.

"Golden Rim is very pleased to execute this agreement with Teck, one of Canada's leading mining companies, to explore Loreto. Teck has two major copper operations in Chile, including the Quebrada Blanca Mine, located 120km south of Loreto along the West Fissure.

"The Option and Joint Venture Agreement allows Golden Rim to leverage off Teck's significant porphyry copper exploration and development experience. With the ability to retain an interest in Loreto, Golden Rim gets to share in the upside should Teck make a significant copper discovery. The agreement also allows us to deliver value from the project while focusing on growing our gold inventory at the Kada Gold Project in Guinea."

1 ASX announcement: New Resource Estimation for Paguanta dated 30 May 2017 (Total Mineral Resource includes: Measured Mineral Resource of 0.41Mt at 5.5% zinc, 1.8% lead, 88g/t silver, 0.3g/t gold; Indicated Mineral Resource of 0.61Mt at 5.1% zinc, 1.8% lead, 120g/t silver, 0.3g/t gold; Inferred Mineral Resource of 1.3Mt at 4.8% zinc, 1.1% lead, 75g/t silver, 0.3g/t gold).

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Figure 1. Location of Golden Rim's Loreto Project and the newly redefined Paguanta Project in northern Chile on satellite imagery. An Induced Polarisation chargeability image overlies the satellite imagery in the Patricia area. The interpreted 2.3km x 1km porphyry centre at Loreto is indicated by the green outline.

Highly Prospective Porphyry Copper Setting

Loreto lies in northern Chile, in the northern extension of the West Fissure, which hosts the world's largest known concentration of major porphyry copper and molybdenum deposits (Figure 2). The project is 30km north-east of BHP's Cerro Colorado Mine (Measured and Indicated Mineral Resources: 519Mt at 0.55% copper2) and 130km north of Collahuasi (Anglo American and Glencore; Measured and Indicated Mineral Resources: 2,340Mt at 0.66% copper3) and Quebrada Blanca (Teck/Sumitomo/ENAMI; Proven and Probable Mineral Reserves: 1.43Bt at 0.51% copper, 0.021% molybdenum and 1.36 g/t silver in addition to Measured and Indicated Mineral Resources of 3.59Bt at 0.37% copper, 0.016% molybdenum and 1.11 g/t silver, and Inferred Mineral Resources of 3.11Bt at 0.35% copper, 0.017% molybdenum and 1.12 g/t silver4) (Figure 2).

The Loreto mineral concessions are 100% owned by Golden Rim and extend over an area of 16.0km2 (Figure 1). These concessions cover the Loreto porphyry copper target and prior to the agreement with Teck Chile, they formed part of the Paguanta Project. The remainder of Paguanta mineral concessions extend over 39.2km2 and comprise the Paguanta Joint Venture between Golden Rim (75% interest) and Chilean company, Costa Rica Dos (25% interest).

The Paguanta Joint Venture mineral concessions cover the Measured, Indicated and Inferred Mineral Resource of 2.4Mt at 88g/t silver, 5.0% zinc and 1.4% lead for 6.8Moz silver, 265Mlb zinc and 74Mlb lead5 at the Patricia Prospect, along with the Cumbre silver-lead-zinc prospect (possible southern extension to the Mineral Resource), and Patricia East, Rosa and Doris porphyry copper prospects (Figure 1).

• 2 BHP Annual Report 2020, p. 290.

• 3https://miningdataonline.com/property/1383/Collahuasi-Mine.aspx#Reserves

• 4Teck 2021 Annual Information Form dated February 23, 2022,p. 51-54.

• 5 ASX announcement: New Resource Estimation for Paguanta dated 30 May 2017 (Total Mineral Resource includes: Measured Mineral

Resource of 0.41Mt at 5.5% zinc, 1.8% lead, 88g/t silver, 0.3g/t gold; Indicated Mineral Resource of 0.61Mt at 5.1% zinc, 1.8% lead, 120g/t silver, 0.3g/t gold; Inferred Mineral Resource of 1.3Mt at 4.8% zinc, 1.1% lead, 75g/t silver, 0.3g/t gold).

Figure 2.

Location of the

Loreto copper

target within

the Eocene -

Oligocene

Porphyry Belt

of northern

Chile.

Figure 3. Photo of the Loreto hydrothermal alteration zone (colour anomaly) looking south. The best new anomalous molybdenum results were obtained to the northwest (out of the photo).

Loreto Porphyry Copper Target Attributes

Loreto shows encouraging evidence of a sizeable and fertile porphyry system, in an area that has been under-explored because of limited access and its distance from the silver-lead-zinc vein system at Patricia, the focus for all previous exploration and historical mining at Paguanta to date.

Loreto's porphyry attributes are summarised below:

• • 3.5km x 3.5km lithocap (colour anomaly) composed of clay - pyrite +/- sericite, surrounded by propylitic halo (chlorite - epidote - magnetite - pyrite) affecting the volcanic rocks from the Empexa Formation and granodiorite from the Alantaya Batholith. This is interpreted as the alteration footprint of a porphyry system (Figures 1 & 3).

• • Remnants of copper oxide veins at surface and encouraging molybdenum results in rock chip samples (as molybdenum is a geochemically immobile element, it is an excellent porphyry pathfinder), highlighting a 2.3km x 1km porphyry centre within the lithocap (Figure 4).

• • Igneous Breccia outcrops, with a clay - silica - pyrite and dacitic matrix surrounding dacitic to dioritic porphyry clasts showing potassic alteration (biotite - pyrite - chalcopyrite), suggesting a potassic altered core at depth (porphyry copper target).

• • Multiphase porphyry dykes, grading in composition from diorite to dacite. These dykes show silica - clay - sericite and chlorite - epidote - magnetite alteration, plus pyrite +/- chalcopyrite. Multievent intrusions are common in porphyry systems and play a key role in hydrothermal fluid exsolution and transport.

• • Porphyry dyke has been dated, confirming Late Oligocene - Early Eocene age; U-Pb zircon in dacitic biotite porphyry indicating 35.3 +/- 0.3 Ma. This is the same age as Anglo American/Glencore's Collahuasi copper deposits.

• • Hyperspectral analysis (Terra Spec) indicating muscovite and pyrophyllite in surface rock samples, suggesting a paleo-isotherm around 300°C, and potentially close to prospective classic phyllic - potassic porphyry alteration assemblages. This alteration is seen outcropping 10km to the east of Loreto at Queen Elizabeth (Anglo American).

Whilst exploration at the Loreto porphyry target has been limited, the region has been on the radar of the major companies which tightly hold the area surrounding Paguanta, including BHP, Anglo American, Glencore, Vale and Freeport. Not surprisingly, Paguanta's mineral concessions, particularly the Loreto target, have been over-staked by the majors. To mitigate this, Golden Rim has converted these mineral concessions to exploitation concessions.

Based on the field observations, Golden Rim believes that Loreto corresponds spatially to the upper portion of a porphyry system and that it corresponds in time to the most productive copper mineralising age in northern Chile (late Oligocene - early Eocene).

Moreover, Loreto shows good evidence to suggest a telescoped system (hydrothermal alteration overprinting), meaning that economic mineralisation might be in a range of hundreds of metres below surface, within the zone of phyllic and potassic porphyry alteration. Evidence for this deeper alteration